2017 Interim LEGISLATIVE Volume 30, No. 6 September 2017 * Read online at www.lrc.ky.gov/legislation.htm RECORD Lawmakers hear sobering State account of opioid crisis prosecutors by Jim Hannah LRC Public Information warn against FRANKFORT – At one hospi- tal, people are actually bringing in heroin and budget cuts shooting up with patients. by Rebecca Hanchett That’s one example of the “very desperate LRC Public Information situation” the opioid-abuse crisis has created, Kentucky Chamber of Commerce President FRANKFORT—Kentucky prosecutors told Dave Adkisson said while testifying before a state lawmakers during a Sept. 15 Judiciary panel of state legislators in the Capitol Annex. Committee meeting that they have little to noth- He was among more than 25 people from ing to cut from their budgets. across the country who testified on Sept. 21 Governor Matt Bevin requested that most about the best policies to attack the crisis at state agencies plan to cut around 17 percent a rare six-hour meeting of both the Interim from their current budgets in a letter recently Joint Committee on Health and Welfare and sent to state officials. The cuts are expected to Family Services, and the Medicaid Oversight save the state around $350 million, state officials and Advisory Committee. say. But prosecutors like Kenton County Com- “Today is a snapshot,” meeting co-chair Rep. Danny Bentley, R-Russell, asks a question monwealth’s Attorney Rob Sanders said the cuts Rep. , R-Florence, said of the concerning the scope of the state’s opioid would “not only eliminate (specific programs). topics on the agenda that included prevention, crisis during a joint meeting of the Interim Joint They would shut down our offices.” treatment and criminal justice issues. Committee on Health and Welfare and Family Commonwealth’s attorney and county attor- Co-chair Rep. , Services and the Medicaid Oversight and ney office budgets both fall under the Executive R-Taylor Mill, said the point of combining Advisory Committee. branch, which the Governor oversees. the two committees’ meetings was to show Director Van Ingram testified that 1,404 Ken- “We’re talking one in three employees in the complexity of the opioid-abuse crisis and tuckians died of a drug overdose last year. He our office if we implement cuts October 1,” said need for a coordinated, long-term strategy to said the introduction of the synthetic opiate Sanders. By January, he said possibly 50 percent tackle it. fentanyl into the heroin supply was largely of his employees would be have to be let go, un- “We know that everything we have heard driving the death rate. In addition, fentanyl has der the plan. Warren County Commonwealth’s about the opioid use disorder problem, her- been present in 53 percent of the drug over- Attorney Chris Cohron said the same scenario oin problem, is real to many families and our doses recorded in Kentucky so far this year. would likely play out across the state, with pros- communities,” she said, “and it cuts across He said the Kentucky General Assembly ecutors in the largest judicial circuits affected all demographics. It touches everyone. We passed a number of measures in the last five or the most. know it doesn’t matter where you live. Addic- six years to address opioid abuse, but it takes “The bigger jurisdictions are going to bear tion doesn’t care how smart you are, where time for the full impact of those laws to be seen the brunt of it. Our conservative estimate is the you went to school or how much money you “People do get better,” Ingram said. “People larger offices would have to look at laying off 60 m a ke .” do recover, although for those people on the to 70 percent of our total staff. That’s just not -do Office of Drug Control Policy Executive Continued on page 2 Continued on page 2 THE KENTUCKY GENERAL ASSEMBLY 1 have a behavioral health disorder, outside of the drug issue. Opioids, “Well over half of the people,” Liu said Adkisson said the impact of the opioid crisis from page 1 on Kentucky’s health was staggering. “Less obvious, however, is the toll that is tak- front lines, it doesn’t seem that way.” en on the state’s economic growth and develop- In what he described as a “rare bright spot,” ment,” he said. “In Kentucky the opioid crisis has there were 70 million fewer dosage units of contributed to a low workforce-participation opioids prescribed last year in Kentucky than rate. in 2011. (That percentage doesn’t include bu- “At a time when job openings and investment prenorphine, a semisynthetic opioid that is used in Kentucky are reaching record highs, we must to treat opioid addiction.) There are still about provide the healthy productive workforce need- 300 million dosage units of opioids being pre- ed to grow the economy.” scribed in Kentucky. Rep. , D-Louisville, asked “This whole problem is the overexposure of how the state could fund the mental health, opioids to our country and state,” Ingram said. treatment and prevention programs needed after “We are reducing that overexposure.” the governor recently proposed cuts of 17 per- He said the passage of House Bill 333 earlier cent for most state agencies in the current fiscal this year would further drive down the number year to make up for an expected budget shortfall. of opioids prescribed. It prevents doctors from Department for Behavioral Health, Develop- prescribing more than a three-day supply of opi- mental and Intellectual Disabilities Medical Di- oid painkillers, with some exceptions allowed. It rector Dr. Allen J. Brenzel said grant money is Rep. , D-Shively, comments on the also increased penalties for trafficking in opioids helping to pay for programs to tackle the opioid state’s opioid crisis during a joint meeting of the and authorized the state Office of the Inspector Interim Joint Committee on Health and Welfare crisis. and Family Services and the Medicaid Oversight General to investigate trends in drug usage and “The good news ... is that resources are com- and Advisory Committee. trafficking. ing,” he said. “That is something I don’t often say. Department for Medicaid Services Medical We have received funding from the legislature, said. Director Dr. Gil Liu testified on the impact of the governor’s budget and we have received a sig- Wuchner said the grant money couldn’t come opioid abuse disorder on Kentucky’s Medicaid nificant number of grants.” fast enough. program. Kentucky was recently awarded a $10.5 mil- “Opioid addiction is a ravenous beast be- At the beginning of 2014 Kentucky spent lion federal grant to help on programs for opioid cause its increasing tolerance requires individu- about $56 million in Medicaid money on behav- overdose victims, pregnant and parenting wom- als to take higher doses to stave off withdrawal ioral health and substance abuse treatment, he en, individuals re-entering society upon release and addiction spiral can happen quickly,” she said. By the end of 2016, Kentucky was spending from criminal justice settings and adolescents said. “It fractures families, lives, communities about $117 million in Medicaid money on those and young adults at risk of addiction. and futures. It fills our headlines daily. It fills treatments. “Now, what is very critical, is that we use our courtrooms, our jails, our hospital ERs, our Rep. Danny Bentley, R-Russell, asked what those dollars, and guide those dollars to the most NICUs (neonatal intensive care unit). It fills our percent of people with substance abuse disorder effective evidence-based intervention,” Brenzel court dockets, and it fills our morgues.”

Budget, from page 1 “There are human costs to this,” he said. the panel. able,” he told the committee. Henderson County Attorney Steven Gold, Rep. , R-Elkton, asked how much Cohron said staff cuts would negatively im- who is also the president of the Kentucky County of a cut the prosecutorial system could with- pact the state’s heroin “Rocket Docket”—an effi- Attorneys Association, said the state’s 120 county stand. None, Sanders said. ciency program in place in over 30 of the state’s attorney offices collect child support, serve as a “How much of a cut we can sustain when 57 judicial circuits that puts treatment ahead of financial watchdog, and advise and assist coun- we’re talking about budget reduction? Zero. Be- incarceration for certain drug offenses. Local ty governments. They are also a key player in all cause…we’re already going to be short on funds. jails statewide are on track to save around $50 criminal cases in the Commonwealth, he said, We’re already going to be laying people off,” he million by the end of fiscal year 2018 due to the “plus mental health, guardianship, child depen- said. success of the Rocket Docket program, he said. dency/neglect/abuse, truancy and runaway” cas- Rep. , R-Lexington, said Staff cuts could also restrict funding for ad- es and more. While Gold said county attorneys government’s top priority is public protection. He vocacy of elderly, children and domestic violence “embrace” their work, they need the funding to encouraged prosecutors to make that clear when victims, Cohron said, since criminal prosecution meet their obligations. Budget reductions would working with lawmakers in coming months. comes first. All non-court personnel, including work counter to that, he said. “Don’t be shy about saying ‘why is the state victim advocates, would “have to be looked at “If we are to believe that out of the crucible spending money on this when we don’t have being reduced immediately,” he said, adding that that is court comes justice, we must have good enough law enforcement officers on the street? court appearances and timely disposition of cas- people—well-funded, well-trained people—on When we don’t have enough prosecutors?” Ben- es would also be impacted by reductions. both sides to make that justice a result,” he told venuti said.

2 2017 Interim LEGISLATIVE RECORD Survey shows satisfaction Local foods gain ground on the rise at the LRC in both state, FRANKFORT -- The Legislative Research Commission (LRC) is enjoying across-the- board improvements in staff satisfaction and The area that showed university morale, according to a survey conducted by the National Conference of State Legislatures biggest change purchasing (NCSL). between 2014 and 2017 LRC employees are increasingly likely to by Rebecca Hanchett agree that the agency follows consistent hiring reflected increased LRC Public Information practices, provides useful feedback to employ- confidence that LRC’s ees, addresses problems, acknowledges employ- FRANKFORT—Food has made its way ee excellence and promotes a culture of innova- hiring practices are from farms to dinner tables in Kentucky for tion. consistent for all over 200 years, but it’s only been in the last Those are the findings of a survey NCSL few decades that state agencies and universi- conducted this year with employees of the LRC, job openings. ties have made Kentucky-sourced products a which is the research and support staff arm of priority. the Kentucky General Assembly. The survey Consider the Kentucky Internation- mirrored one that NCSL conducted with LRC rewards to acknowledge staff performance excel- al Convention Center (KICC) in Louisville, staff members in 2014, providing an opportuni- lence and whether the agency promotes a culture now under renovation, which will feature an ty to quantify the growth of employee satisfac- of employee innovation. in-house garden and messaging to teach vis- tion in recent years. The 2014 and 2017 surveys were identical itors the importance of Kentucky farms when “Our staff deserves a tremendous amount but for one exception: The 2017 survey added a it reopens in 2018, Levy Convention Centers of credit for embracing change and working question on whether employees approve of the representative Matthew Moss told the Interim together in a shared spirit of collaboration and way LRC Director David Byerman handles his Joint Committee on Agriculture on Sept. 13. public service,” said LRC Director David Byer- job. By nearly a three-to-one margin, workers Levy is the concessions and catering operator man. “By authorizing us to update these survey reported approval for the way Byerman, who for KICC, which has been closed for renova- results, the President and Speaker have given us joined LRC in October, 2015, leads the agency. tions since last year. the ability to objectively document the remark- A comparison of the 2014 and 2017 sur- Moss told the committee that increased able progress LRC has made over the last two veys show improvements in 49 of the 54 areas emphasis on catering at KICC will allow more years. LRC staff remains unified and focused in which employee satisfaction was measured. creativity, and more chances to partner with on providing highly professional support to our The three areas that showed slight dips and the local food producers. legislators and the legislative institution.” two where satisfaction levels stayed the same all “We’re going to set a target by 2020 to be The area that showed biggest change between focused on the agency’s information technology purchasing 30 percent of all our products lo- 2014 and 2017 reflected increased confidence services, where satisfaction levels were already cally,” Moss told lawmakers. that LRC’s hiring practices are consistent for all recorded as being high in 2014 and remained At the University of Kentucky, local food job openings. On a four-point scale, employee high in 2017 purchasing is a key part of the university’s con- responses on that topic were almost nine-tenths NCSL is a bipartisan organization that pro- tract with food supplier Aramark. Scott Smith of a point higher in this year’s survey. vides research, technical assistance and informa- with The Food Connection—a UK agency Similar improvements in employee satis- tion-sharing opportunities to state legislatures. focused on food sustainability—said the uni- faction were found in response to survey ques- The organization has headquarters in Denver tions on whether the LRC uses non-monetary and offices in Washington, D.C. Continued on page 81

Lawmakers explore telehealth care for veterans by Jim Hannah “I understand what we are introducing to will allow veterans to use video communication LRC Public Information you today is probably the first of its kind in the technology at the Jackson County Public Library whole country,” Rep. , R-McKee, to receive medical care from VA doctors, a prac- FRANKFORT – In the heart of the Daniel said while testifying before a Sept. 16 meeting of tice broadly known as clinical video telehealth. Boone National Forest, a rural Kentucky com- the Interim Joint Committee on Veterans, Mil- “I think it will provide incredible access and munity is creating a unique program that could itary Affairs and Public Protection. “Maybe no allow for the VA to enhance our delivery of that help solve the nationwide problem of veterans other community has this opportunity.” having a hard time getting in to see a doctor. What Rader introduced is an initiative that Continued on page 81

THE KENTUCKY GENERAL ASSEMBLY 3 General 2017 Assembly Senate

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

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

THE KENTUCKY GENERAL ASSEMBLY 5 2017 Kentucky General Assembly

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

6 2017 Interim LEGISLATIVE RECORD 2017 Kentucky LRC General Assembly Publications 2018 Price List (71) Tommy Turner (85) PO Box 138 175 Clifty Grove Church Daily Record Pickup: $165 Lancaster, KY 40444 Somerset, KY 42501 (LRC) 502-564-8100 (LRC) 502-564-8100 Daily Record Mailed: $165 (plus (65) (Home) 606-274-5175 112 W 11th St postage) Covington, KY 41011 (LRC) 502-564-8100 (52) PO Box 969 Friday Record Mailed: $38.50 (plus (Home) 859-581-6521 Monticello, KY 42633 (Home FAX) 859-261-6582 postage) (LRC) 502-564-8100 (Work) 859-261-6577 (Home) 606-340-8490 John Sims Jr (70) Individual Record Pickup: $2.75 702 Capitol Avenue Annex Room 429C Individual Record Mailed: $2.75 (plus Frankfort, KY 40601 (LRC) 502-564-8100 (3) postage) 4317 Pines Rd (Home) 606-748-1839 Paducah, KY 42001 (LRC) 502-564-8100 Kevin Sinnette (100) (Home) 270-558-5139 Bills PO Box 1358 Ashland KY 41105 (35) 1280 Royal Ave Complete Set of Bills and Resolutions (LRC) 502-564-8100 Louisville, KY 40204 (Home) 606-324-5711 (LRC) 502-564-8100 (Pick-up): $630 (Home FAX) 606-329-1430 (Work) 502-303-3732 Individual Bills Per Page: $.05 (26) Diane St. Onge (63) PO Box 6605 523 Kluemper Court Amendments Per Page: $.05 Shepherdsville, KY 40165 Fort Wright KY 41011 (LRC) 502-564-8100 (LRC) 502-564-8100 Roll Call Votes: $.15 Per Page (Home) 502-543-8209 (Home) 859-341-1231 III (86) Scott Wells (97) 545 KY 223 702 Capitol Avenue Flat Lick, KY 40935 Annex Room 413D Publications (LRC) 502-564-8100 Frankfort, KY 40601 1-10 copies: Free to general public; (Home) 606-542-5210 (LRC) 502-564-8100 (22) larger numbers of free copies available 1481 Jefferson School Road Scottsville, KY 42164 (79) (Copies PO Box 22778 to schools and state agencies (LRC) 502-564-8100 Lexington, KY 40522 (Home) 270-622-5054 over preapproved limits require approval (LRC) 502-564-8100 (Work) 859-266-7581 Walker Thomas (8) of LRC Director’s Office) 702 Capitol Avenue Addia Wuchner (66) PO Box 911 Annex Room 413F Burlington, KY 41005 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 Administrative Regulations (2017) (Work) 859-525-6698 (Home) 270-889-8091 (Home FAX) 270-885-5335 (96) Bound Volumes: $253.12 PO Box 591 Grayson, KY 41143 Administrative Register: $120.00 James Tipton (53) (LRC) 502-564-8100 8151 Little Mount Rd (Work) 606-474-7263 Volumes and Register: $373.12 Taylorsville, KY 40071 (Work FAX) 606-474-7638 (LRC) 502-564-8100 Acts of the General Assembly * Members of the Kentucky General Assembly may also be contacted by calling 502-564-8100. Regular Sessions: Priced after printing Special Sessions: Priced after printing

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THE KENTUCKY GENERAL ASSEMBLY 7 Committee Meetings

INTERIM JOINT COMMITTEE ON Representative Thomas encouraged members to Index AGRICULTURE take advantage of the comment period to urge Minutes of the 2nd Meeting the USDA to repeal the restriction. A of the 2017 Interim Senator Humphries stated that dark-fired Administrative Regulation Review Subcommittee, July 12, 2017 tobacco in western Kentucky has an economic 50, 69 Agriculture, 8, 17 Call to Order and Roll Call impact of approximately $180 million. The Appropriations and Revenue, 18, 20, 30 The 2nd meeting of the Interim Joint proposed restriction is almost impossible to Committee on Agriculture was held on achieve. B Wednesday, July 12, 2017, at 10:00 AM, at Welcome Banking and Insurance, 35 Kentucky State University. Representative Dr. Debbie Thomas, Provost, welcomed C Richard Heath, Chair, called the meeting to members to the Kentucky State University. She Capital Planning Advisory Board, 54 order, and the secretary called the roll. explained that the College of Agriculture, Food Capital Projects and Bond Oversight, 53 Present were: Science and Sustainable Systems is known for Members: Senator Paul Hornback, Co- excellent agricultural research and extension E Chair; Representative Richard Heath, Co-Chair; programs that influence students and impact Economic Development and Workforce Investment, 13, 40 Senators Jared Carpenter, C.B. Embry Jr., Stan farmers across the state. KSU is home to a world- Education, 21 Humphries, Dennis Parrett, Stephen West, and renown Aquaculture Program of Distinction, Education Assessment and Accountability Review Whitney Westerfield; Representatives Myron ranked Top 5 in the United States. Subcommittee, 57 Dossett, Derrick Graham, David Hale, Mark Representative Graham noted that Dr. Hart, James Kay, Kim King, Sannie Overly, James Tidwell, Chairman of the Division of G Government Contract Review Committee, 48, 66 Jason Petrie, Phillip Pratt, Brandon Reed, Rob Aquaculture was recruited several years ago Rothenburger, Dean Schamore, Wilson Stone, by the Republic of Ireland to develop their H Walker Thomas, James Tipton, and Tommy aquaculture program. Health and Welfare and Family Services, 25 Turner. Update on Meetings Related to Agriculture Guests: Representative Chad McCoy, Tax Reform J Judiciary, 9 Dr. Debbie Thomas, Provost, Kentucky Senator Hornback and Representative Heath State University, Tyler Madison, Kentucky discussed agriculture tax reform. Representative L Department of Agriculture, Grape and Wine Heath said he and Senator Hornback have Legislative Research Commission, 36 Program, Bruce Kunze, Kentucky Grape and conducted meetings to address tax reform with Licensing, Occupations and Administrative Regula- Wine Council Representative, Logan Leet, Chair, the agriculture commodities groups. Senator tions, 11, 38 Local Government, 33 Kentucky Grape and Wine Council, Dr. Kirk Hornback stated that everyone agreed that the Pomper, Kentucky State University, Director of top priority was HB 44, which pertains to a 4 M Land Grant Programs and Dr. James Tidwell, percent growth in revenue for property taxes. Medicaid Oversight and Advisory Committee, 60 Kentucky State University, Chair of the Division It is important for everyone to know that the of Aquaculture. investments made with HB 611 has paid more N Natural Resources and Energy, 42 LRC Staff: Tanya Monsanto, Lowell dividends in this state than anything else. HB Atchley, Kelly Ludwig, and Susan Spoonamore, 611 should not be a part of the discussion in tax P Committee Assistant. reform. Senator Hornback said that another issue 2018 Prefiled Bills, 74 The June 14, 2017 minutes were approved, of interest is the highway tax through the gas Program Review and Investigations Committee, 46 by voice vote, without objection, upon motion tax. It is important that rural roads and bridges Public Pension Oversight Board, 62 made by Representative Graham and second by be maintained for transporting products to the S Representative Thomas. markets. There is a problem with waterways, State Government, 31 Chairman Heath asked Representative which need to be maintained. Senator Hornback Thomas to update the committee on NNN levels said that he and Senator Thayer are working on T for dark-fired tobacco. Representative Thomas language with the equine industry pertaining to Tobacco Settlement Agreement Fund Oversight Committee, 66 explained that HCR 48 was passed urging the auctions where horses are sold out of state and Tourism, Small Business and Information Technol- United States Food and Drug Administration no sales tax is charged. There is interest in the ogy, 43 to withdraw its proposed standard for Georgia Agricultural Tax Exemption Program, Transportation, 28 nitrosonornictine (NNN) levels on ingredients which is a certification for farmers to be tax and constituents in smokeless tobacco products. exempt for farm supplies. This would eliminate V Veterans, Military Affairs and Public Protection, 16 The restrictions are so tight that the NNN level the need for retailers to hire auditors and extra is unachievable for growers. By regulation, the employees to do audits. He and Representative USFDA is trying to put the smokeless tobacco Heath had met with John Chilton, State Budget industry out of business. The comment period Director, explaining the issues regarding had been extended due to the responses. agriculture.

8 2017 Interim LEGISLATIVE RECORD Representative Heath said that Mr. Chilton end of each year rolls over. KGWC proposes have collaborations with over 1,850 farmers was glad to join a meeting with representatives taking some money from other grants to fund and stakeholders. Through the efforts of the from the commodity groups. He has a better the proposal for a Vineyard Expansion Grant legislature, a 100 percent state match to USDA understanding of the tax exemptions for farmers. Program. Federal Funds has helped tremendously. In response to Representative Tipton, In response to Senator Hornback, Mr. Dr. James H. Tidwell, Professor and Chair, Representative Heath stated that the issue Leet said that in past years the KGWC has been Division of Aquaculture, explained that the of agricultural property tax assessments was able to obtain grant money from Agriculture aquaculture program has just reached the point discussed but no plan of action was presented. Development Funds. Mr. Madison said that at which half of its research is from wild culture Senator Hornback said it was discussed, but in vineyards do fall under the county agriculture and the other half from aquaculture. Worldwide, talking to PVAs it was his opinion that it was not investment program. There are 118 counties aquaculture is the fastest growing animal food a huge problem. Because of zoning regulations, eligible for funds. He stated that it would be production activity and is projected to actively Lexington experienced some problems with its great if a vineyard could get money from the grow for approximately 20 years. Five years agricultural property tax assessments regarding Agricultural Development Board. It would ago, aquaculture surpassed beef production large tracts. The statute defines agricultural use also be good to have a supplemental fund for worldwide in producing protein and dollars as and agricultural potential and therefore the vineyards. an agricultural product. The United States is property can be assessed as agricultural. In response to Representative Heath, the world’s largest importer of seafood. Over 91 Representative Stone said he attended a Representative McCoy stated that at this time percent of the seafood consumed in the United rural electric meeting recently and they were there are no specific ideas as to how to spend the States is imported. Food safety is a concern in the process of rallying the troops against $400,000. The proposal includes giving KGWC in importing seafood. Roughly 2 percent is the homeowners’ sales tax on electric bills. the flexibility to set annual distributions based examined by the FDA and approximately 90 Representative Heath said he experienced the upon need. percent comes from Asia. China is the biggest same thing at his rural electric meeting. In response to Representative Tipton, Mr. producer and exporter of fish products. As of Discussion on Potential Legislation for Kunze said the cost to produce wine could be now, China cannot export fresh seafood. It is the 2018 Regular Session between $3,000 and $5,000 per acre. He said that important to be able to produce shrimp that Representative Chad McCoy said that the generally it is possible to get a partial harvest only travels 6 miles instead of 6,000 miles to presenters would be discussing a problem that by the third growing season. It is a long-term market. Aquaponics is a system that combines was more than likely a problem all over the state. investment, but the vines can produce anywhere production of fish in tanks, in a recirculating He said that the solution would be pro-economic from 15 to 40 years. Mr. Leet stated that there is type system. This system is one of the most water development and pro-vertical integration. Most a demand for grapes. efficient and nutrient efficient systems that has importantly, the Kentucky Grape and Wine Overview of Kentucky State University been developed. The program has worked with Council was not asking for any money. Programs and Tour of Aquaculture Facility the West Sixth Brewing Company by taking the Bruce Kunze, Kentucky Grape and Wine Dr. Kirk Pomper, Kentucky State University, brewers grain and making it into fish feed. Council, Logan Leet, Chair, Kentucky Grape Director of Land Grant Programs said that There being no further business, the meeting and Wine Council and Tyler Madison, Kentucky the Land Grant Program was established in was adjourned. Department of Agriculture, Grape and Wine the 1890s to resolve agricultural, educational, Program discussed a proposal for a Vineyard economic, and social problems of the people INTERIM JOINT COMMITTEE ON Expansion Grant Program. Mr. Leet explained of the Commonwealth of Kentucky, especially JUDICIARY that the Grape and Wine Council was formed in limited-resource persons and families. KSU Minutes of the 3rd Meeting 2002 for the purpose of promoting growth within partners with the University of Kentucky even of the 2017 Interim the industry. In 2007, the Council first received though the missions may be slightly different. The August 4, 2017 funding from the legislature in the amount Land Grant Program included three main areas: Call to Order and Roll Call of $400,000 yearly. Until 2014, the industry aquaculture, organic and sustainable agriculture The 3rd meeting of the Interim Joint had been steadily growing but extremely cold and human health, nutrition and food safety, Committee on Judiciary was held on Friday, temperatures in 2014-2015 and 2015-2016 family and consumer sciences. Aquaculture is August 4, 2017, at 10:00 AM, in Room 149 of resulted in widespread vine mortality. Other a program of distinction and ranks in the Top the Capitol Annex. Representative Joseph M. reasons for the decline is that most vineyards are 5 in the United States. The organic program is Fischer, Chair, called the meeting to order, and less than 5 acres, making it not profitable for the ranked among the Top 20 in the United States the secretary called the roll. grower and the winery wanting to purchase in Land Grant Programs. The sustainable projects, Present were: bulk. Mr. Leet noted that 80 percent of the wine to name a few, include vegetable and grain Members: Senator Whitney Westerfield, made in Kentucky in 2016 was produced with production, fruit and nut crops, and a large Co-Chair; Representative Joseph M. Fischer, Co- grapes from out-of-state. The Grape and Wine meat goat production program. The Human Chair; Senators Danny Carroll, Alice Forgy Kerr, Council wants to create a vineyard expansion Health, Nutrition and Food Safety, Family and John Schickel, Wil Schroder, and Dan “Malano” grant program within the existing statute by Consumer Sciences is researching obesity and Seum; Representatives Robert Benvenuti III, removing specified funding requirements for health issues, DNA technologies for assessing Tom Burch, McKenzie Cantrell, Daniel Elliott, existing programs in order to allow the KGWC food safety, youth leadership, and community Stan Lee, Chad McCoy, Jason Nemes, Jason flexibility to set annual distributions. The KGWC development. KSU has an undergraduate degree Petrie, Brandon Reed, and Ken Upchurch. would also like to offer the program to existing in Agriculture and Master of Science degrees in Guests: Representative Lynn Bechler, Ed vineyards. Mr. Leet reiterated that the KGWC Aquaculture Studies and Environmental Studies. Monahan, Rebecca DiLoreto, and Jenna McNeal. does not need more funding. KSU Extension has an award winning small LRC Staff: Katie Comstock, Alice Lyon, In response to Representative Thomas, Mr. farm program and Third Thursday Workshop Chandani Kemper, Dale Hardy, Crystal Allen, Madison stated that any money left over at the series. KSU Extension and Research personnel and Elishea Schweickart. THE KENTUCKY GENERAL ASSEMBLY 9 Criminal Defense Issues and Concerns creation of gross misdemeanors. A gross into account the appropriate role of counsel. After being recognized by committee misdemeanor would be more serious than a KACDL wants the laws to be guided by data and members for his years of service and Class A misdemeanor but not a felony. The research to ensure the best possible outcomes accomplishments at the Department of Public characteristics could include a sentence up to 24 for everyone. She thanked the General Assembly Advocacy (DPA), Ed Monahan thanked the months, presumptive probation, supervision up for its consideration and efforts to improve the committee for its support of DPA. He stated that to 36 months, expungeable, and extraditable. A justice system. the General Assembly has always welcomed DPA’s gross misdemeanor system would save money KACDL appreciates the work that has been policy suggestions and has been understanding and relieve stress on the justice system. done with the juvenile justice system in Kentucky. with the budget. Without the support of the DPA asked the General Assembly to The savings that come from juvenile justice are General Assembly, DPA would not be able to do consider making changes to the death penalty. important to note. The number of youth placed its job. According to a comprehensive 2011 program in out-of-home facilities has decreased by 43 Mr. Monahan testified about realigning audit of the administration of the death penalty percent over the last two years. Not only are these increasingly expensive incarceration costs with in Kentucky, there are several areas that need youth being kept at home and with loved ones, more treatment options. This could be done by: improvement. These areas include a high error they are also receiving treatment and support -Reducing admissions, including rate, excessive caseloads and low pay for public with evidence-based interventions. This allows revocations to prison from probation and defenders handling death penalty cases, capitol the more costly residential beds to be opened parole; and juror confusion, and lack of data for cases. to more serious offenders. This juvenile justice -Reducing length of stay including the Mr. Monahan stated that not only was this reform is expected to save taxpayers about $24 length of stay for those convicted of serious and problematic, but it is also a financial burden to million in the first five years. violent crimes. Kentucky. Ms. DeLoreto discussed expungement, Mr. Monahan stated that while there are DPA has 36 public defender offices, with which KACDL supports. Although expungement some people who need life sentences, many some offices covering up to eight counties at a is working well for many, KACDL hopes that the people are serving long incarceration sentences, time. Last year, DPA was appointed to 162,485 legislature will consider recalculating the fees and evidence shows that there is no benefit. new trial cases and provided counsel at the cost of required. DPA, on invitation from the Justice Cabinet, $276 per new trial case. DPA handled 4,538 cases Ms. DeLoreto expressed appreciation for had an initial meeting with the Justice Cabinet that were contracted out to private attorneys for Governor Matt Bevin’s “Don’t Let Them Die” and the Department of Corrections to discover conflict cases, with funding at $319 per conflict (DLTD) initiative. As part of this initiative, if the alternative sentencing worker program, case. This is an extremely high case load with Governor Bevin’s office will place painted which is being used as a national model, could no additional attorneys or additional financial rocks around Kentucky to raise awareness for assist with probation issues. There are more than relief. Mr. Monahan stated that, although DPA Kentucky’s opioid epidemic. Painted rocks 24,000 people in prison in Kentucky, which is gets its job done, it is a huge stress on the agency. matter because of their personalization, and it the state’s largest prison population ever. The DPA would like the General Assembly to provide is important to remember that people who are expense for this amount of inmates is greater help, including reducing workloads, increasing incarcerated--many for drug use--are still people. than what was budgeted. compensation to private attorneys doing conflict She urged the committee to place money into law Mr. Monahan discussed trends in Kentucky. representation, increasing salaries for DPA staff, enforcement and communities instead of placing From 1985 to 2015, the crime rate in declined and allowing DPA attorneys to have cell phones so much money into longer incarceration time by 19 percent, and the violent crime rate while visiting clients who are incarcerated. for many inmates. declined by 28 percent. From 1985 to 2014, the Responding to a question from Senator Ms. DeLoreto discussed crime offense levels. US imprisonment rate increased 133 percent, Westerfield, Mr. Monahan stated that the Kentucky cannot just look at low level offenders. and Kentucky’s imprisonment rate increased divergence between the increase in incarceration The entire range of offenses and sentence lengths 371 percent. When looking at these statistics and the decline in the crime rate is that, on one must be examined because it impacts cost. Some on a case-by-case basis, there are 45,602 fewer hand, less crime is committed when more people suggestions from KACDL include: criminal cases and 14,733 fewer DUI cases. This are incarcerated, but on the other, research is that - Addressing and reducing expensive is a decline of over 5,000 cases per year. only about 25 percent of the decline in crime is locked custodial care of elderly prisoners; Mr. Monahan shared policy suggestions attributable to increase in incarceration. - Redirecting more of correction’s dollars that DPA believed would improve the Kentucky Rebecca DeLoreto, with the Kentucky towards noncustodial rehabilitation and justice system. These suggestions include: Association of Criminal Defense Lawyers residential substance abuse; -Realigning existing correctional (KACDL), presented suggestions and requests. - Stop enlarging the pool of 85 percent resources towards scientifically-informedKACDL is the only statewide, all-inclusive parole eligibility. treatment; organization of criminal defense lawyers. Ms. DeLoreto stated that one area of penal -Lowering crimes and penalties; KACDL’s mission includes: reform that should be targeted to reduce costs -Incentivizing release of low and moderate -Protection of constitutional liberty is to end the transfer of juveniles to adult court. risk persons; interests; Evidence-based studies show that children are -Increasing re-entry support; -Fairness and justice for all persons developmentally different than adults, and the -Reforming penal code; accused of crimes in the Commonwealth; US Supreme Court has urged that punishment -Finding a way to have a financially -Comprehensive and sensible criminal for children be different than punishment unified statewide correctional system; justice reform; and for adults. She said that, if members will not -Increasing theft levels; and -Sharing the perspective of their clients end transfers to adult court, they should end -Modifying mandatory minimum for and their families. automatic transfers, which is important because persistent felony offenders. Ms. DeLoreto stated that KACDL cares that of the racial disparity with the kinds of cases Mr. Monahan advocated for the Kentucky statutes are constitutional and take affected.

10 2017 Interim LEGISLATIVE RECORD The second suggestion for penal code reform supported nationwide. Mental development that one study estimated that the state and local is the examination of the young adult offender between a 16 or 17 year old is scientifically government incur costs of about $124 million in population. Offenders aged 18 to 25 are the most different than that of an adult who is ten or K-12 education, $25 million in limited English likely to commit offenses, and that Kentucky more years older. Teenagers lack full cognitive proficiency education, $22 million in justice should be focused on providing treatment growth, harm avoidance, and full understanding costs, and $54 million in other costs. He stated for them. Giving them a chance at treatment of lifelong consequences. Teenage decision that there was a less troubling fiscal note produced and recovery, versus placing them in prison making is based on motivation by reward, while by the Legislative Research Commission in 2011 with older inmates who can influence them to adult decision making is based on motivation that stated Kentucky only spends about $30 commit more crimes, is not only beneficial to by harm avoidance; this makes the decision for million on illegal aliens. Representative Bechler the children but will also save the justice system consent extremely unbalanced between the two. stated that the numbers demonstrate that the money in the long term. Older teenagers are some of the most high-risk negatives outweigh the positives. Ms. DeLoreto discussed pretrial release and for being sexually assaulted, and often their Another potential impact could come from fine and court costs. KACDL is concerned people perpetrators are in their late twenties or older. offering in-state tuition rates to illegal aliens. are gaining pretrial release based on their wealth Ms. McNeal also spoke on rape in the third Kentucky law requires that illegal aliens shall be and that nonfinancial conditions of release needs degree. Rape in the third degree in Kentucky charged the in-state tuition rate. Representative to be considered. She asked the committee to protects people age 15 and under who are Bechler stated that this conflicts with Section 505 consider fines and court costs, which KACDL is victims of people who are 21 years or older of the federal Illegal Immigration Reform and concerned is leading to debtors prisons. and in a position of power, such as a teacher or Immigrant Responsibility Act. Representative Ms. DeLoreto discussed amendments to coach. Because of this, 16 and 17 year olds are Bechler said that it is important to note that, Kentucky’s constitution. Marsy’s Law should be not protected and must prove lack of consent while no universities are listed as sanctuary heavily considered since it is coming from out- in a court. Ms. McNeal stated that cases where schools, there have been troubling signs. of-state sources and the impact could be great. lack of consent must be proven are exceptionally Representative Bechler discussed crime Ms. DeLoreto stated that KACDL expects that difficult, but if Kentucky changes rape in the and illegal aliens. He said that studies of all Marsy’s Law will be interpreted to be against third degree, teenagers can have a fallback for immigrants have shown the incarceration rate the rights of the accused, and that this will be a protection when there is a ten year age difference among immigrant males between the ages of 18 problem because courts of law must be balanced. between the victim and perpetrator. to 39 is 1.6 percent. Drugs, physical violence, and She suggested that, instead of changing the Ms. McNeal spoke about questions gang activity is often prevalent in sanctuary cities Constitution, the General Assembly could into and concerns some people may have about and states. consideration locations where victims are not this law. While people might have a fear of This bill would not be the first of its kind. being heard. KACDL is not against victims but over criminalizing teenagers having sexual Seven other states have laws banning sanctuary believes the justice system must remain fair and intercourse with other teenagers, this law will cities; of these, two include universities in balanced. not have any effect on those situations. This law their bans. In 2017, 22 other states introduced Ms. DeLoreto discussed Kentucky’s sex would only criminalize adults having sexual legislation banning sanctuary cities. offender registry. KACDL believes that the intercourse with a teenager with a ten year or Responding to a question from registry needs to only be for offenders who need more age difference. Twenty-two states already Representative Burch, Representative Bechler to be placed on it, and that offenders who could have a similar protection. stated that he is open to making changes in the be removed should be. KACDL believes this Sanctuary Cities: 2017 RS HB 501 legislation, but if 2017 version of the bill would would make the registry more effective. Representative Lynn Bechler testified about have been carried out by the Justice Cabinet if Senator Westerfield responded that there 2017 RS House Bill 501, which he sponsored. the bill had passed. is nothing in Marsy’s Law that takes away the He said the intent of the bill is to preclude that Responding to a question from presumption of innocence for the accused, but any political subdivision, such as a county, city, Representative Burch, Representative Bechler the law creates rights for victims. or institution of higher learning, from having a stated that he supports immigration but not Representative Benvenuti responded by sanctuary policy. This bill established monetary illegal immigration. asking members to support Marsy’s Law because penalties for entities and individuals who chose There being no further business, the meeting it gives victims a voice. to have such a policy. was adjourned at 12:01 PM. Senator Schroder responded by stating he Representative Bechler stated that there are has concerns about Marsy’s Law and hopes to about 50,000 illegal aliens living in Kentucky. hear more from judges, prosecutors, and the This is about 1.1 percent of Kentucky’s total INTERIM JOINT COMMITTEE ON defense bar. population, 30 percent of Kentucky’s total LICENSING, OCCUPATIONS, AND Amending Kentucky’s Age of Consent immigrant population, and 1.7 percent of ADMINISTRATIVE REGULATIONS Jenna McNeal, Commissioner of the Kentucky’s labor force. Since 1990, the illegal Minutes of the 4th Meeting Kentucky Multidisciplinary Commission on alien population has risen more than 45,000 of the 2017 Interim Child Abuse, discussed a possible bill that would people, many of whom are now living in urban August 18, 2017 amend Kentucky’s consent laws by outlawing a metro areas. Call to Order and Roll Call 16 or 17 year old from being able to “consent” Representative Bechler stated that the illegal The 4th meeting of the Interim Joint to sexual intercourse with a person who is at alien population has had positive and negative Committee on Licensing, Occupations, and least ten years older. Ms. McNeal thanked the impacts. On the positive side, it is estimated that Administrative Regulations was held on Friday, committee for its time and told the story of how illegal aliens pay a little over $20 million in sales August 18, 2017, at 10:00 AM, in Room 129 she is a teenage rape survivor. tax, over $11 million in individual income tax, of the Capitol Annex. Representative Adam Ms. McNeal stated that her proposal to and more than $5 million in property taxes. On Koenig, Chair, called the meeting to order, and include the ten year age gap is statistically the negative side, Representative Bechler stated the secretary called the roll. THE KENTUCKY GENERAL ASSEMBLY 11 Present were: raffles and donate the proceeds to a 501 (c)(3), it years. Since 2012 there has been a concerted Members: Senator John Schickel, Co-Chair; could expand the museum’s ability to operate in effort in work force development and training Representative Adam Koenig, Co-Chair; Senators the Commonwealth. for the students to enhance their knowledge Joe Bowen, Tom Buford, Denise Harper Angel, Christy Thomas, Finance and HR Director, and to help them get better jobs locally. Classes Jimmy Higdon, Paul Hornback, Dan “Malano” said the museum is an exempt purpose revenue, have been developed such as Kentucky Bourbon Seum, and Damon Thayer; Representatives Al but gaming is not an exempt purpose revenue. Tourism and directed classes on distillation, Gentry, Dennis Keene, Chad McCoy, Jerry T. The museum balances its educational revenue brewing and on viniculture and wine making. Miller, C. Wesley Morgan, David Osborne, Ruth by educating the public through tours and other There are approximately 300 students per year Ann Palumbo, Sal Santoro, Arnold Simpson, things that the museum does. Current gaming in these classes. Kentucky’s universities have Walker Thomas, and Susan Westrom. statutes in Kentucky do not allow for a 501(c)(7). formed a coalition to ensure that all industries Guests: Wendell Strode, Executive Director, In response to a question to from are represented. Christy Thomas, Finance and HR Director, Representative Miller, Mr. Strode said a $10 Pete Weiss, Alltech Brewing and Distilling, National Corvette Museum; Representative raffle ticket is sold at admission to the museum. said Alltech has partnered with Western James Kay, Professor Seth DeBolt, Ph.D., Senator Buford offered suggestions for Kentucky University to further the education University of Kentucky, Peter Weiss, Alltech; public protection such as limiting the cost of a of craft brewers and distillers that are coming Scott Ward, Orrick, Herrington and Sutcliffe. single ticket and setting the amount of the prize into the state. The brewery is actually located on LRC Staff: Tom Hewlett, Bryce Amburgey, awarded. the campus of WKU under the Alltech license. Jasmine Williams, Melissa McQueen, and Susan In response to a question from Senator The students in the program use the brewery as Cunningham. Bowen, Mr. Strode said that the museum pays a lab class. This allows for hands on experience Minutes sales tax on items sold at the gift shop and the involving the science of brewing and distilling. The minutes of the July 14, 2017 meeting café as well as employment tax. Adding a 501(c) Students learn how to run a small business in were approved without objection. (7) will not expand any tax exemptions. the classroom. Two students have been hired Proposed changes to charitable gaming In response to a question from as brewer assistants. A product called College statutes. Representative Santoro, Ms. Thomas said there Heights Ale that is made through the WKU Wendell Strode, Executive Director of are no owners or stockholders. Mr. Strode added program. the National Corvette Museum said that over that non-profits are started with exempt status. In response to a question from Representative 200,000 visitors tour the museum annually, Once that is established there are members Koenig, Dr. DeBolt said the universities work including people from all 50 states and 60 who can join the non-profit. However, if the through the three-tier system to source alcohol foreign countries. The museum holds 25 raffles National Corvette Museum is dissolved, any net for the wine appreciation class. Representative per year to generate revenue. This has been a proceeds have to be given to other non-profit Kay added that having a license would make it major factor in the museum’s success in the past organizations. clear that the educational programs are allowed 20 years. The museum has purchased over 230 Senator Higdon said the definition of to have alcohol on the premises for use in classes acres to expand and build a motor sports park a 501(c)(7) is broad and could allow other and that they not required to discard product that will have a 3.15 mile road course. There are organizations to apply for that status. Ms. after brewing or distilling. three Corvettes and two Camaros available to Thomas said the Department of Charitable In response to a question from Senator drive on the track. The museum teaches teenage Gaming is in charge of approval of applications Seum, Representative Kay said this raises the driver safety to young drivers, and it allows law for all organizations and retains the right to deny responsibility profile of the industry. Midway enforcement agencies and first responder teams an organizations request. has a culinary arts program that includes specific to use the park for training. The museum has a Representative Westrom commented that alcohol related degrees. These programs require positive tourism impact for Kentucky. hearing from the Department of Charitable students to taste products. However, none of the The museum has recently reduced the Gaming is in order. products produced in the classes are served to number of raffles to comply with exemption Universities serving alcoholic beverages the public. guidelines for a 501(c)(3), and has been advised in culinary arts programs. Representative Westrom said that this is by the Office of Charitable Gaming that it reduce Representative James Kay said Midway more of a workforce development program. the number further. Most raffles are limited University has a culinary degree program that Proposed changes to alcohol statutes; HB raffles, at $100 to $500 per ticket and with a includes bourbon distilling, and is considering 136, HB 155, 2017 Regular Session. limited number of tickets. These are sold on the adding craft brewing and local vinting. Under Representative C. Wesley Morgan said he museum’s website and outside Kentucky. Some current statutes this program is not allowed to has been in the retail alcohol business for 36 states allow 501(c)(7) organizations to conduct serve alcohol. The university is asking for a special years. During that time he developed software this type of raffle. The museum is asking for this license that pertains to educational programs, at used by approximately 500 retail outlets across in Kentucky. The 501(c)(7) is primarily a social accredited institutions only. This would allow the the eastern part of the United States. Until or recreational organization. By allowing 501(c) program to have alcohol and serve it to students 2010 his retail business had the second highest (7) organizations to hold raffles and donating the who are of legal drinking age. Kentucky has an volume store in Kentucky. He believes that his majority of the net proceeds from these events opportunity to take an education step to create retail experience is beneficial to the state. HB back to the National Corvette Museum, the a pipeline for the workforce to fill these skilled 136 relates to a law requiring all wholesalers to museum could reduce the number of raffles it jobs. suspend sales to any retailers who are 30 days conducts, but still meets its funding needs. Professor Seth DeBolt, Ph.D., Director of the late on paying an invoice to a wholesaler. The In response to a question from Distillation, Wine and Brewing Program at the retailer can still purchase with cash. Wholesalers Representative Koenig, Mr. Strode said the University of Kentucky, said UK had supported maintain a list of all retailers and know who is 30 raffles held as a 501(c)(3) benefit the museum. development of the wine industry and grains days out paying their invoice. This law obstructs By allowing a 501(c)(7) organization to hold development through extension for the last 20

12 2017 Interim LEGISLATIVE RECORD the free flow of commerce in that one wholesaler Additionally, a retailer that has a business the players skill at putting together the best team can restrict a retailer from purchasing from other on Jefferson/Bullet County line and another in football, baseball, basketball and other sports wholesalers. business on the Jefferson/Shelby County line based on statistics of players in real games. The Adam Blau, Fort Thomas, KY, said that can transport alcohol from one end of Jefferson outcome of the real world game is not counted each distributor delivers one type of alcohol. If County to another with no problem. However, if in fantasy sports, rather the stats of the players Southern Wine and Spirits sells Makers Mark, a a retailer crosses a county line he is in violation are converted to points. The team with the most person cannot buy Makers Mark from Republic of the law. This is an over reach by the state to points, with the best individual performances by National Distributing Company Kentucky. The control crossing county lines and the movement the most players, wins. mail is slow at times, so his payment may go of alcohol. The Department of Alcohol Beverage Fifteen states have passed laws defining over 30 days. Distributors visit the store the day Control is able to allow for transportation and regulating fantasy sports, including four of before a shipment is scheduled. If he is told the of alcohol across county lines. In December Kentucky’s border states. Each state has the same day before his shipment is due that he is on the 2015, a court in Clay County ruled that this basic three elements. First, a tight definition of “no ship” list, he has to figure out how to make was unconstitutional. A court in Knox County fantasy sports. The definition does not allow for the payment by 1:00 PM in order to come off the recently agreed with the Clay County decision. expansion beyond fantasy sports and is based list and have the order shipped the following day. HB 155 2017 RS, would have created on a federal law passed over 10 years ago that The majority of his alcohol comes from Southern a requirement for a retailer with common excludes it from internet gambling. Second, Wine and Spirits, which delivers on Friday. If he ownership in multiple stores to purchase a new consumer protection is mandated. Contests are cannot pay by Thursday at 1:00 PM, he will not license giving the retailer authority to transport limited to 18 and over; and employee play and have alcohol to sell that weekend. As a small alcohol from one licensed store to another. college sports are banned. Player funds must also business, it is important to have inventory on Wholesalers have been against this; however, be held differently from operating funds. Finally, Friday. this is after the product has gone through the each law clearly states that fantasy sports are In response to a question from Senator three tiers of the three tier system. Liquor Barn legal and are not gambling. There is no systemic Bowen, Representative Morgan said the will send collector bottles to all their stores. If element of chance nor outcome determinative retail stores were at one time cash only. Ken the store in Lexington sells out of the bottles in fantasy sports. Fantasy sports are offered by Lewis, owner of Party Source in Belleview, but the store in Bowling Green has a supply, the Disney through ESPN, by CBSsportsline, NFL, KY, challenged the Department of Alcoholic company stands to lose money because it cannot MLB, DraftKings and FanDuel. Beverage Control in court to be allowed to accept transport the cases across county lines. Liquor In response to a question from shipments on credit. Barn could apply for permission from the ABC Representative Miller, Mr. Ward said each Senator Schickel commented that but that is unfair because ABC could allow some state regulates differently. Most states have a Representative Morgan’s legislation will get to ship and deny that privilege to others. Passage licensure or registration fee. Few states have an all due consideration in the Senate. He noted of HB 155 would have required the purchase of additional tax on the adjusted gross revenue of that Representative Morgan presents a unique a special license that must be displayed on the the companies that pay into the state. perspective on the retail alcohol business. vehicle transporting the alcohol and retailers Representative Simpson said regulation is a In response to a question from Senator must keep an inventory list of all product being concern since collection of taxes and registration Higdon, Representative Morgan said he transferred. The license applies to two stores fees could cause a burden to the small fantasy objected to one wholesaler having the right to together. leagues have existed for years. stop a retailer from purchasing from another Bryan Edwards, retail store owner, Murray, Representative Koenig said that the bill wholesaler. KY, said the time it takes to send a request to states there is a threshold of 100 players to be Senator Buford commented that some states ABC for permission to transport across county regulated. Therefore the small teams that have only have one or two wholesalers in an entire lines and for ABC to respond is cumbersome. been playing for years will not be included in the state dealing all the products. Also, regarding In response to a question from current legislation. Mr. Ward said that the bill is credit, fair trade is gone. The legislature needs Representative Osborne, Representative Morgan designed to define fantasy sports and is intended to be mindful of the small retailer getting cut off said the new license would have a size limit on to regulate commercial operators. from buying any products. the truck that would be making the delivery Representative Koenig said that the next Dan Meyer, General Counsel, Southern from one retail store to another. meeting will be at Buffalo Trace Distillery on Wine and Spirits Wholesalers, said the laws Regulating daily fantasy sports. September 8th and 10:00 AM. are not particular to Kentucky. Most states Scott Ward, attorney for Orrick, Herrington There being no further business to come have credit or COD laws for wholesale sales to and Stucliff, spoke representing FanDuel before the committee the meeting was adjourned retailers of spirits and wine. Federal law prohibits and DraftKings, two members of a growing at 11:26 AM. extending credit beyond 30 days. This ensures fantasy sports industry. Approximately 700,000 that the large retailers do not have an advantage Kentuckians play fantasy sports every year. INTERIM JOINT COMMITTEE ON over the small retailers. Wholesalers would like Fantasy sports has evolved from being played ECONOMIC DEVELOPMENT AND to work with retailers to address the problems with friends on pencil and paper to playing on the WORKFORCE INVESTMENT so that sufficient notice is given before putting internet with not only friends and co-workers, Minutes of the 3rd Meeting retailers on COD list. In most states the ABC but competitors from across the country. This of the 2017 Interim maintains this list. However, in Kentucky the product has out-grown laws that were originally August 17, 2017 Wholesalers Association maintains this list. written with fantasy sports in mind. Call to Order and Roll Call On a different topic, Representative Morgan Players select a team and pay an entry fee The 3rd meeting of the Interim Joint said there is a section in statute that allows a that amounts to a prize for the winner. This allows Committee on Economic Development and retailer to legally take a shipment of alcohol the “armchair quarterback” a chance to imagine Workforce Investment was held on Thursday, from a wholesaler Louisville to Whitesburg. himself a general manager. Fantasy sports tests August 17, 2017, at 10:00 AM, in Room 154 of THE KENTUCKY GENERAL ASSEMBLY 13 the Capitol Annex. Senator Alice Forgy Kerr, significant announcements and progress in the training scholarship. Any Kentuckian with a high Chair, called the meeting to order, and the area of economic development, that momentum school diploma or GED without an associate’s secretary called the roll. will be halted if Kentucky does not have a skilled degree or higher is eligible for the scholarship. Present were: workforce to fill the positions that will become The scholarship is a last dollar scholarship, Members: Senator Alice Forgy Kerr, available with new and expanding companies. which means any student that applies for the Co-Chair; Representative Jim DeCesare, Co- Statistics compiled in 2015 showed that 15 scholarship must complete a Free Application Chair; Senators Perry B. Clark, Rick Girdler, percent of jobs in Kentucky were low skill level for Federal Student Aid (FAFSA) application Denise Harper Angel, Ernie Harris, Jimmy jobs, 58 percent were middle skill level jobs, and use any Pell Grant funds if eligible before the Higdon, Stephen Meredith, Wil Schroder, and and 27 percent required a high skill level. A low Work Ready Scholarship could be used. Deputy Reginald Thomas; Representatives Lynn Bechler, skill level job is one that requires a high school Secretary Montell highlighted the Help Wanted McKenzie Cantrell, Daniel Elliott, Al Gentry, diploma or less. Only one in 100 of newly created Campaign, which is the Cabinet’s educational Dennis Horlander, Joni L. Jenkins, James Kay, jobs is a low skill level job according to Deputy outreach campaign. Adam Koenig, Russ A. Meyer, Jerry T. Miller, Secretary Montell. A middle skill level job is The last two components of the 360-Degree C. Wesley Morgan, Jason Nemes, Jason Petrie, one that requires above a high school diploma Approach of the Cabinet were briefly discussed. Phillip Pratt, Steve Riley, Rob Rothenburger, but less than a baccalaureate degree. The state The Kentucky Work Matters Task Force was Dean Schamore, Diane St. Onge, Wilson Stone, has about 10 percent less middle skill workers established to develop policies and review Russell Webber, Scott Wells, and Addia Wuchner. than middle skill jobs, which equates to about practices that make the workforce more inclusive Guests: Deputy Secretary , 150,000 unfilled positions. A high skill level job and accessible for people with disabilities, people Education and Workforce Development would be one that requires a four year degree who have been incarcerated, and citizens who Cabinet; Jessica Fletcher, Executive Director of and above. There are almost an equal amount of have successfully battled substance abuse. The Communications, Education and Workforce high skill workers and high skill jobs in the state. Medicaid Community Engagement is intended Development Cabinet; Andy Hightower, Senior Alternatively, there are far more low skill level for adults without dependents who are not Policy Advisor, Education and Workforce workers than there are low skill level jobs. pregnant or medically frail. The Medicaid waiver Development Cabinet; Mardi Montgomery, The Cabinet has started to use a 360-Degree has been applied for and is awaiting approval. Legislative Liaison, Education and Workforce Approach to continue to grow jobs and face the In order to qualify a person must work, attend Development Cabinet; Taylor Sawyer, challenge of building a skilled workforce. The school, or study at least 20 hours a week. The Government Affairs Director, Big Ass Fans first component is the Dual Credit Program that initiative will be driven through career centers, Company; Judy Taylor, Legislative Agent, Big Ass allows for students to be engaged and guided which have recently been reorganized due to Fans Company; and Amy Porter, Plant Manager, towards a particular pathway while still in high Workforce Innovation and Opportunity Act Corning Incorporated. school. In comparison to the 2015-2016 school (WIOA) regulations. There are now 20 career LRC Staff: Carla Montgomery, Andrew year, there was a 51 percent increase in students center offices, 12 being hub offices and eight Manno, and Sasche Allen. enrolled in dual credit courses in the 2016-2017 being satellite offices. Approval of Minutes school year. In the 2015-2016 school year there Deputy Secretary Montell closed by giving A motion to approve the minutes of the June were 42,384 dual credit courses taken compared an update on the Unemployment Insurance 15, 2017 meeting was made by Senator Denise to 73,338 dual credit courses taken in the state Trust Fund. In January 2012 the trust fund was Harper Angel, seconded by Representative for the 2016-2017 school year. Deputy Secretary at a -$948.7 million deficit but as of July 2017 Dennis Horlander, and approved by voice vote. stated that the Cabinet would like for dual credit the balance was $401.7 million. In previous A motion to approve the minutes of the July courses to become a high school graduation years employers were responsible for paying a 5, 2017 meeting was made by Representative requirement. surcharge to pay back interest on the loan but Russell Webber, seconded by Representative In 2016 the General Assembly approved a due to the progress in recent years, that surcharge Wilson Stone, and approved by voice vote. $98.9 million bond pool for the Work Ready Skills was removed this year. Employer tax rates have Consideration of Referred Administrative Initiative to be invested in the infrastructure of decreased and benefits have increased. He noted Regulation the state’s training facilities to provide top of the the goal was to increase the balance to at least The following administrative regulation line training to more than 47,000 Kentuckians $80 million. from the Education and Workforce Development annually in five core sectors. There were more After Representative Dean Schamore Cabinet was on the agenda for consideration: than $500 million in requests and 40 projects expressed several concerns regarding the Work 787 KAR 2:040 & E. The amendments set were approved for funding. The awards leverage Ready Scholarship funds not being allocated forth a policy for hiring staff of local workforce at least $146.2 million in matching funds, for a until September, Ms. Fletcher said that KHEAA development boards and required a written total of just under a quarter of a billion dollars has been working with FAFSA to calculate agreement for entities performing with more invested. Overall, there will be 29,372 additional what funds will be available after the last dollar than one function for a local workforce individuals trained annually with an average is utilized. Deputy Secretary Montell said that development board. The amendments also expected wage of $34,413 for an annual total of with the program being new there is a delay in updated two incorporated materials. A motion over $1 billion. the funds but it is a problem that needs to be to accept the referred administrative regulation The Work Ready Scholarship was approved resolved. Answering a follow up question, he was made by Senator Ernie Harris, seconded by in 2016 in the amount of $15.9 million. The said that eventually unemployment insurance Representative Rob Rothenburger, and approved scholarship is administered by the Kentucky assistance at the career centers will be over the by voice vote. Higher Education Assistance Authority phone. Education and Workforce Development (KHEAA) and offers tuition for up to 32 credit Responding to Senator Stephen Meredith, Cabinet Update hours for a job certification in more than 60 Mr. Hightower said a mobile based technology Deputy Secretary Brad Montell asserted careers in five high demand industry sectors. based system is being developed to make it that although the state has recently made It is unique in that it is for adults and is a skills easier for Medicaid recipients to access services.

14 2017 Interim LEGISLATIVE RECORD Additionally, the Department of for Community used which allows for direct access to customers plant. The company initially began using a high Based Services and the career centers are being to plan and problem solve. In 2016 it generated speed process to produce light bulbs and has analyzed to determine where the best locations $240 million through Big Ass Fans, Big Ass continued to build on its development of glass are for additional offices. Addressing another Lights, and Haiku, which is the residential over the years by producing products such as question, Mr. Hightower said that the individuals division. There are over 700 Kentucky based LCD glass, glass for consumer electronics, and involved with the Work Ready Communities employees that include over 60 engineers and glass particle filters. Initiative are meeting regularly to design what 175 production employees and field service Over the years the focus of the company will be what will be the next generation of a technicians. The starting salary of an employee has adapted due to business needs, and it now Work Ready Community. is 33 percent higher than the Kentucky state concentrates on five core areas which include Replying to Representative Addia Wuchner, average and Big Ass Fans is an eight time “Best display technologies, optical communications, Ms. Mardi Montgomery said the Cabinet had Places to Work in Kentucky” recipient. environmental technologies, life sciences, and received 16 inquiries regarding the reduction Mr. Sawyer gave an overview of the product specialty materials. In the 1980s and 1990s of career and technical education classes time line of Big Ass Fans. The introduction of the the Harrodsburg plant produced LCD glass through KCTCS and Secretary Hal Heiner had first research and development facility was made for televisions and computers but now mainly met with school administrators in an effort in 2009. In 2012 production of an electromagnetic focuses on display technologies and specialty to find a solution, along with the Council on motor began to offer silent operation for public materials such as Corning Gorilla Glass. The Post-Secondary Education. This reduction has locations such as churches, schools, and libraries. optical communications developments center effected the Dual Credit Program and the Work The Haiku division was also developed during on fiber cable and conductivity solutions. The Ready Skill Initiative. this time which are residential fans, and later in environmental technologies area deals with Representative Jerry Miller expressed 2014 the company launched Big Ass Lights to ceramic substrates. Lastly, the life sciences concerns about the functioning of KCTCS and its product line which include LED fixtures. The division has been a part of Corning’s foundation the approval of eligibility for dual credit courses Artisan line of Haiku was introduced in 2017 that that started in the early 1900s supporting and stated any issues needed to be resolved as incorporates artwork from Lexington artists. Mr. pharmaceutical and lab wear with Pyrex glass soon as possible. Sawyer closed by going over particular projects and has transitioned into other areas over the Answering an inquiry from Senator Jimmy that Big Ass Fans has worked on throughout the years. Corning operates on what it calls the 3-4- Higdon, Ms. Mardi Montgomery explained that state such as Woodall Dairy Farms in Lewisburg, 5 framework that includes its core technologies, last year the Cabinet received funding called Montgomery County High School in Mount manufacturing and engineering platforms, the New Skills Youth Initiative Grant which has Sterling, Kentucky National Guard, and Ethereal and market access platforms. The core areas of components similar to the Work Ready Skills Brewery in Lexington. technology for the company are glass, ceramics, Initiative with collaboration with area technology Answering a question from Representative and opticals. The four platforms of manufacturing centers, KCTCS sites, and the workforce. Diane St. Onge, Mr. Sawyer said Big Ass Fans is and engineering are vapor deposition, fusion Responding to Representative Joni Jenkins, not developing technology itself that will allow forming, precision forming, and extrusion. Ms. Mardi Montgomery said that AmeriCorps is the fans to run off of a battery back up in the The five areas of market access include optical a federally funded program that is not involved case of a black out or brown out, but they are communication, mobile consumer electronics, with the Dual Credit Program, but it is a being designed to be connected to that type of display, automotive, and life sciences. program that the state utilizes. Mr. Hightower technology. Ms. Porter went into further detail about said the AmeriCorps is a required partner in the Responding to Representative Jerry Miller, the production and understanding of Corning American Job Center system. Mr. Sawyer said a convention center would be a Gorilla Glass. Gorilla Glass is a chemically Big Ass Fans Company perfect application for the commercial line that strengthened cover glass that is virtually scratch Mr. Sawyer stated that Big Ass Fans started are silent in operation. Replying to a follow up and break resistant and was first produced in in 1999 as HVLS Fan Company and produced question, he said that it can be difficult finding Harrodsburg in 2007 for the iPhone. A majority high volume, low speed fans with diameters of skilled employees to fil certain positions. of the Harrodsburg production is dedicated 18, 20, and 24 feet. In 2003 the company changed Addressing Representative Wilson Stone, to Gorilla Glass. It is currently on 5 billion its name to Big Ass Fans Company. In its early Mr. Sawyer explained that although the company devices and over 40 major brands. Corning years, the company had clients predominately in will continue to service its agricultural and is continuously improving this product and the agriculture industry but now has more than industrial client, it will also continue to expand has developed Gorilla Glass 5 which is the 350,000 Big Ass Fans and 167,000 Big Ass Lights its residential line of products. Big Ass Fans has strongest cover glass for drop performance by installed worldwide. It is the only fan company most recently been working with Apple and offering damage resistance, optical clarity, and to design, engineer, manufacture, test, and install Google on its Haiku line. Ms. Taylor extended an touch sensitivity. It was recently announced all of its products and is a leader in innovation invitation to the committee to tour the facilities that Apple has awarded Corning an advanced with over 230 patents. in Lexington. manufacturing fund investment of $200 million U.S. based operations include its Corning Incorporated to support glass production methods. headquarters located in Lexington, which is Ms. Porter explained Corning Inc. is one The Corning Harrodsburg plant has been made up of locations dedicated to research and of the world’s leaders in glass science, ceramics, in operation since 1952 and has provided development, which are LEED Gold Certified, and optical physics. It was founded in 1851 in continuous production of specialty glass. The manufacturing, and administrative offices. There Corning, New York and now has approximately plant has received numerous accolades for are also field offices in Texas, Florida, Georgia, 45,000 employees worldwide. Corning’s core sales environmental stewardship and a positive work and California. International operations include for 2016 were $9.7 billion. It ranked 298 on the environment. In 2015 it participated in the subsidiary offices in Australia, Canada, Malaysia, 2017 Fortune 500 Rankings. A large portion of Energy Star Challenge where they were tasked and Singapore. Its fans are sold in more than 160 funds are invested in research and development with improving energy intensity by five percent countries. A factory direct business model is that takes place in Corning’s Harrodsburg, KY in 10 years. The Corning Harrodsburg surpassed THE KENTUCKY GENERAL ASSEMBLY 15 that amount with a 30 percent reduction in Ralph Reese, 96 year old WWII Veteran, led issues for the State Veterans Home construction two years. It also received the 2017 Energy the committee in the Pledge of Allegiance. program. FY 2018 has $90 million dollars Star Award for Partner of the Year in Sustained Distinguished Veteran budgeted. Only 10 projects on the current list will Excellence. Nine out of the last 10 years the Keary J. Miller, Sr. Master Sergeant, testified be funded. The VA will not provide extra funding plant has been ranked one of the Best Places to about his career in the Air Force and his tour to decrease the backlog in the foreseeable future Work in Kentucky. The plant’s workforce has and survival on Takur Gar. Mr. Miller was the according to Secretary Shulkin. Mr. Bowman an average of 14 years of service with over 80 first survivor to be awarded an Air Force Cross explained the project specific budget concerns percent holding at least a bachelor’s degree and for his heroism in 2002’s Operation Anaconda. and the Bowling Green project timeline and 26 percent holding at least a master’s degree. Chairman Moore presented him with a recommendations. SB 13 was enacted March, Ms. Porter closed by expressing the need for a distinguished veteran coin for his remarkable 2017, and the August 1, 2017 deadline cannot well trained workforce and the difficulties that heroism, dedication, and service. be met. August 1, 2018 is most likely the first Corning faces when hiring trained mechanical Radcliff Veterans Center and the Veterans opportunity for priority one consideration, and and electrical journeymen. She showed a short Center Program August 1, 2019 is the most realistic timeline for video about the Corning Harrodsburg plant. General Norman Arflack, Commissioner priority one consideration. Chairman Jim DeCesare voiced his of the Kentucky Department of Veterans Affairs Fort Knox Briefing excitement about the recent investments and (KDVA), gave a PowerPoint presentation on Colonel Patrick N. Kaune, Fort Knox Corning’s research and development. veterans’ cemeteries, nursing facilities, and Garrison Commander gave a PowerPoint With no further business to come before the KyVets, KDVA’s newest program. Commissioner presentation and overview of Fort Knox & the committee, the meeting was adjourned at 11:56 Arflack discussed the veterans’ cemeteries and U.S. Army Garrison-Fort Knox. Colonel Kaune a.m. stated that there are a total of 11,123 veterans discussed the Fort Knox “Gold Standard” Team. and their dependents buried in the veterans The Senior Commander is MG Christopher P. INTERIM JOINT COMMITTEE ON cemeteries across Kentucky. He described the Hughes, U.S. Army Cadet Command, and the cemetery expansion projects for the Veterans Garrison Commander is COL Patrick Kaune, US VETERANS, MILITARY AFFAIRS, Cemetery West in Hopkinsville. A $361,841.00 Army Garrison – Fort Knox. AND PUBLIC PROTECTION contract was awarded to C & C Contracting COL Kaune stated that Fort Knox has Minutes of the 3rd Meeting which was $93,406.00 below the total grant offer. an estimated workforce and other supported of the 2017 Interim August 25, 2017 The Kentucky Veterans Cemetery Central in population of 90,981 within 40 miles. The Call to Order and Roll Call Radcliff had a $3,610,000.00 contract awarded estimated transient student and support cadre The 3rd meeting of the Interim Joint to JAVE, LLC and was $812,250 below the total population is 28,325 students and 6,000 cadre in Committee on Veterans, Military Affairs, and grant offer. FY 2017. The estimated total annual economic Public Protection was held on Friday, August Commissioner Arflack testified about the impact of Fort Knox is $2.6 billion dollars. COL 25, 2017, at 2:00 PM, in the Radcliff Veterans Radcliff Veterans Center (RVC). On May 9, 2017, Kaune shared the investments that Fort Knox has Center. Representative Tim Moore, Chair, called the first veteran was admitted to the RVC; on made for soldiers and their families’ well-being. the meeting to order, and the secretary called the May 25, the facility was licensed and certified for Over $1.6 billion has been invested since 2005 to roll. Medicare and Medicaid participation, and as of improve the infrastructure and facilities. Forty- Present were: August 24 there were 22 veterans living at there. five percent of the Garrison’s annual operations Members: Representative Tim Moore, Co- Commissioner Arflack invited all members of the budget is used to provide soldier and family well- Chair; Senators, Perry B. Clark, Ernie Harris, committee to the November 9, 2017 dedication being services and programs on Fort Knox. Some Dennis Parrett, Whitney Westerfield, Will of the RVC, when it will be officially named the of the investments are Army family housing, Coursey, Jeffery Donohue, Jim DuPlessis, Chris Carl M. Brashear Radcliff Veterans Center. A schools, a tactical unit complex, gym and pool Fugate, Jeff Greer, Chris Harris, Mark Hart, Dan press release and invitations are being developed. renovations and expansions, commissary Johnson, DJ Johnson, Donna Mayfield, Brandon Commissioner Arflack discussed theenhancements, a tactical unit complex with a Reed, Rob Rothenburger, Dean Schamore, and community living center (CLC) model versus dining facility, company operations facilities, Walker Thomas. the KDVA traditional veterans nursing facility motor pool enhancements, consolidated Guests: Air Force Sr. Master Sergeant and said that there should be comparative data barracks and a warrior transition battalion with Keary J. Miller; General Norman Arflack, by the end of the calendar year. Oregon has a dedicated soldier and family assistance center, Commissioner, Kentucky Department of Veteran shared its comparative data after one year of full and 112 Americans with Disability Act compliant Affairs; Mark Bowman, Executive Director, operations, and the CLC model is still financially suites for 224 soldiers. Office of Kentucky Veterans Centers; Israel Ray, feasible. COL Kaune discussed installation energy Administrator, Radcliff Veterans Center; COL Commissioner Arflack discussed theefficiency at Fort Knox and program objectives Patrick N. Kaune, Garrison Commander, Fort Kentucky Veterans Employment, Training, and to decrease consumption, increase use of Knox; Richard Walton, DAV, VFW; and Corey Support (KyVETS), KDVA’s newest program. renewables, and have secure energy sources. Fort Elder, House Leadership. KyVETS provides resources and support to Knox invested $400 million in energy efficiency LRC Staff: Erica Warren, Jessica Zeh, assist veterans in gainful employment and in FY 96 – FY 2017. The results have reduced Jonathan Philpot, and Rhonda Schierer. training services. Kelli Carter Hogan directs energy consumption. There are over 50 energy Senator Parrett moved to adopt the July the program. She has extensive experience with star certified buildings, improving comfort and 13, 2017, meeting minutes. Representative regard to veteran employment and a thorough indoor air quality. Greer seconded that motion. The minutes were understanding of the barriers they face in finding COL Kaune discussed the ranges and adopted. employment. training areas and capacity and capabilities. Pledge of Allegiance Mark Bowman, Executive Director, Office Fort Knox has 55,846 acres of range and impact of Kentucky Veterans Centers, discussed funding areas as well as specialized capabilities including

16 2017 Interim LEGISLATIVE RECORD a bridge site, obstacle course, and aerial drop stringent international standards for the product. Clark agreed that NAFTA is still important to zones. Fort Knox is the third most utilized live Across the United States approximately 65,000 to agriculture. range with specialized capabilities in the U.S. 70,000 farmers and private applicators have been In response to Senator Humphries, Mr. Other Business trained to use the product. Clark stated that his farming operation is 45 Israel Ray, Administrator at the Radcliff Mr. Stephens said the American Soybean minutes away so he can truck his soybeans to Veterans Center announced that members were Association (ASA) has been meeting with the Mississippi River. Another goal of the KSPB welcome to tour the center after the meeting. representatives from DuPont, Monsanto, and is helping farmers in central Kentucky get their There being no further business, the meeting BASF discussing the complaints that have soybeans to the market for export. was adjourned. been filed by different states. The ASA and the Senator Humphries stated that maintaining United Soybean Board formed a task force to the ports in Kentucky is important to farmers in INTERIM JOINT COMMITTEE ON look at independent research from other states. order to be successful. AGRICULTURE Farmers need to know when and how to apply Update on Proposed NNN Levels on the Minutes of the 3rd Meeting the products under certain weather conditions Smokeless Tobacco Industry of the 2017 Interim and other factors. Herbicides play a significant Commissioner Ryan Quarles, Kentucky August 29, 2017 role in crop production so it is important to find Department of Agriculture (KDA), stated that Call to Order and Roll Call out what went wrong and what can be changed out of Kentucky’s $6 billion dollar cash receipts, The 3rd meeting of the Interim Joint to make the products on the market safer to use. western Kentucky contributes almost one-third. Committee on Agriculture was held on Tuesday, In response to Representative Rudy, Mr. KDA has been getting strong production reports August 29, 2017, at 10:00 AM, in Murray, Stephens said that he did not know the percentage out of the western part of the state regarding Kentucky. Representative Richard Heath, Chair, of soybeans resistant to dicamba nor did he know early corn. called the meeting to order, and the secretary what the crop loss would be. He was not aware of Commissioner Quarles stated that the called the roll. any products in the pipeline that could replace proposed rule for NNN levels on smokeless Present were: dicamba for fighting certain weeds. tobacco is serious. He explained that the United Members: Senator Paul Hornback, Co- In response to Senator Hornback, Mr. States Food and Drug Administration issued Chair; Representative Richard Heath, Co-Chair; Stephens said that research was being done to a regulation that proposed an unrealistic and Senators C.B. Embry Jr., Stan Humphries and see if the damage done to crops was due more to unachievable requirement to minimize the level Whitney Westerfield; Representatives Matt temperature inversions than the drifts. Although of NNN for dark-fired tobacco. If this rule is Castlen, David Hale, Mark Hart, Kim King, in other states, data is leaning towards both for not rolled back, it will create a direct negative Suzanne Miles, Phillip Pratt, Brandon Reed, being the cause of crop loss. reduction of farm cash receipts by $173 million, Steven Rudy, Walker Thomas and James Tipton. In response to Representative Pratt, Mr. primarily affecting the western part of the state. Guests: Jed Clark, President, Kentucky Stephens said in Kentucky dicamba helps control Kentucky’s federal delegation has been active Soybean Association, Davie Stephens, Chairman, palmer amaranth and in the northern states in protecting dark-fired tobacco producers. Kentucky Soybean Promotion Board, Ryan dicamba controls waterhemp. Farmers have been Commissioner Quarles said that the comment Quarles, Commissioner, Kentucky Department spraying dicamba in corn fields and pastures. period concluded in July and now it is up to the of Agriculture. Most farmers spray early on and do not spray FDA or the Health and Human Services Cabinet LRC Staff: Tanya Monsanto, Kelly Ludwig, during June and July because of the atmospheric Secretary to reconsider the proposed rule. and Susan Spoonamore, Committee Assistant. chemistry. Spraying dicamba has probably been Chairman Heath informed the members Welcome occurring in the summer months of June, July, that Congressman Comer had filed an Jed Clark welcomed members to his farming and August without being diluted. amendment pertaining to the FDA’s proposed operation consisting mainly of soybeans, corn Chairman Heath stated that the label for NNN tobacco rule on HR 3354. The amendment and dark-fired tobacco. dicamba has been approved for use through would prohibit funds from being used to finalize, Effects of Dicamba Drift on Kentucky’s 2018. It is important to find a solution for using implement, administer or enforce the FDA’s Soybean Industry dicamba without causing crop loss. Mr. Stephens proposed rule regarding the levels of NNN Davie Stephens, Chairman, Kentucky said he agreed that education for the farmers in smokeless tobacco. He said that HR 3354 is Soybean Promotion Board explained that in on the use and when and what time to spray anticipated to be up for floor consideration by 1967 the Environmental Protection Agency dicamba would be a big help. Another option the full U.S. House of Representatives during approved the use of dicamba as an herbicide being considered would be to make dicamba a the week of September 4th. If the FDA moves application. Throughout the years, the EPA restricted chemical. forward with the implementation of the rule, reduced the volatility of dicamba and in 2016 the Mr. Clark stated that the main focus of the then the amendment would provide backup. EPA once again reduced the volatility. Farmers Kentucky Soybean Promotion Board (KSPB) Representative Humphries stated that if in several states have filed complaints and/ is the exporting of Kentucky’s soybeans. The the proposed rule were to pass, then it will put or lawsuits against the manufacturers seeking board has been working with Thailand to a lot of farmers out of business, especially in the compensation for crop losses caused by dicamba. export soybeans to their country. Thailand uses western part of Kentucky. When being applied, dicamba has the tendency one million bushels of soybeans and they have Commissioner Quarles shared that there to move offsite therefore reducing crop yields specifically requested soybeans from Kentucky. had been 14 complaints made to the KDA with neighboring farmers. The problem is getting the beans to Thailand regarding dicamba compared to 900 complaints Mr. Stephens said that DuPont, Monsanto, and still maintaining a competitive advantage. in Arkansas. and BASF sell dicamba that is not in the generic Mr. Clark said that the board is also looking Discussion on Cottage Food Laws in form. The companies are governed by EPA to export soybean to Central America by rail/ Kentucky protocol subject to good label protection, the container ship. Susan Zuccarell explained that she started GOP. GOP is the gold seal of testing that imposes In response to Senator Hornback, Mr. baking and decorating cakes at an early age and THE KENTUCKY GENERAL ASSEMBLY 17 found that she loved it. She and her husband built Kentucky Transportation Cabinet (KYTC); detrimental. a new home in 2014 which included a special and, Ron Rigney, Director, Division of Program Representative Harris said that new room off the kitchen for decorating cakes and Management, KYTC. road projects are tremendously beneficial to cookies. The only thing not in the special room LRC Staff: Justin Perry, David Talley, and the citizens of the Commonwealth, and it is was an oven. Jennifer Beeler. imperative that those be maintained. Once she was made aware of Kentucky’s Robin Brewer, Executive Director, Office In response to questions from Representative Cottage Food Law restricting home bakers from of Budget and Fiscal Management, KYTC, and Mills, Mr. Rigney said toll credits generated selling products because they were not classified Ron Rigney, Director, Division of Program from the LSIORB project are being used and are as farmers and did not grow the primary Management, KYTC, testified about toll credits. expected to run out in 2020. ingredients such as sugar, flour and eggs, she In response to a question from Chair Wise, In response to a question from Chair Wise, began the process of trying to have the law Ms. Brewer said it is estimated that toll credits Ms. Brewer said the use of road funds to match amended to include home bakers. She said that would be depleted in fiscal year 2020; however, federal dollars does not impact the Maintenance home bakers would also like to be considered for it is possible that the credits may not run out of Effort Test due to being included in those the Kentucky Proud logo and to advertise their until 2021. Mr. Rigney added that it depends on expenditures. baked goods for delivery in Kentucky. available federal funding. Senator Higdon commented that the KYTC In response to Representative King, Ms. In response to questions from Senator should consider efficiencies within the cabinet Zuccarell said that the Health Department told Higdon, Ms. Brewer said toll credits are when discussing the upcoming budget. her that in order to have a home bakery, she obtained through a long-term investment of There being no further business before the would have to have a separate room, involve capital improvements in the highway system. subcommittee, the meeting was adjourned at plumbers for drawings and installation of three Funds used for those expenditures must be 10:47 AM. separate sinks (mop sink, grease trap, large sink) toll revenues, or borrowed funds that will be and employ an electrician to install the double- paid for with toll revenues. Mr. Rigney said toll INTERIM JOINT COMMITTEE ON ovens. After the plans were finalized, they had credits being used since 2015 were carried over APPROPRIATIONS AND REVENUE to be submitted to the health department for from the previous years as credits earned from Budget Review Subcommittee on General approval and then submitted to Frankfort for the Louisville-Southern Indiana Ohio River Government, Finance, Personnel, and Public approval. Farmers are allowed to sell their Bridges (LSIORB) project. Ms. Brewer said Retirement products at Farmers’ Markets. that toll credits of approximately $590 million Minutes of the 1st Meeting In response to Representative Tipton, Ms. were earned from expenditures on the LSIORB of the 2017 Interim Zuccarell stated that she talked to people at the project that will be paid for with toll revenues. July 27, 2017 University of Kentucky who told her that she There were other parts of that project that were Call to Order and Roll Call had to go through her local health department. paid for with federal funds and that portion will The first meeting of the Budget Review Because of where her house is located, she not earn toll credits. The toll credits earned for Subcommittee on General Government, cannot contact the local planning and zoning payment of the obligation on the debt service Finance, Personnel, and Public Retirement of the commission for a home based business permit. on the bonds for that project. It would be many Interim Joint Committee on Appropriations and There being no further business, the meeting years before enough toll revenues would be Revenue was held on Thursday, July 27, 2017, at was adjourned. generated in excess of those obligations in order 10:00 AM, in Room 149 of the Capitol Annex. to use them for other projects. Representative Brian Linder, Chair, called the INTERIM JOINT COMMITTEE ON In response to a question from Chair Wise, meeting to order, and the secretary called the roll. APPROPRIATIONS AND REVENUE Ms. Brewer said it could be possible to generate Budget Review Subcommittee on toll credits with the use of Public-Private Present were: Transportation Partnerships (P3s), depending on the legal Members: Senator Danny Carroll, Co- Minutes of the 1st Meeting arrangements made at the time. Chair; Representatives Brian Linder, Co- of the 2017 Interim In response to questions from Representative Chair, and Suzanne Miles, Co-Chair; Senators July 27, 2017 Fleming, Mr. Rigney said the federal program is Christian McDaniel, and Johnny Ray Turner; Call to Order and Roll Call a reimbursement program, not a grant program, Representatives Tim Couch, Will Coursey, The first meeting of the Budget Review and funds are reimbursed at 80 percent. Kentucky Myron Dossett, Jim Gooch Jr., Richard Heath, Subcommittee on Transportation of the Interim would need about $120 million in state dollars Kenny Imes, Kim King, Adam Koenig, Michael Joint Committee on Appropriations and Revenue per year to compensate if current toll credits run Meredith, Jerry T. Miller, Phil Moffett, Rick G. was held on Thursday, July 27, 2017, at 10:00 AM, out. Nelson, and Jim Wayne. in Room 131 of the Capitol Annex. Senator Max In response to a question from Chair Wise, Guests: Jennifer Linton, Executive Director, Wise, Chair, called the meeting to order, and the Ms. Brewer said Vehicle Regulation is its own Office of Facility Development and Efficiency, secretary called the roll. appropriation unit, and funds cannot be moved Finance and Administration Cabinet (FAC); Present were: from one appropriation unit to another. With a Andrew Carter, Energy Management Program Members: Senator Max Wise, Co-Chair; relatively flat maintenance budget for the past Manager, Division of Facility Efficiency, FAC; Representative Sal Santoro, Co-Chair; Senator six to eight years, it has been a struggle staying Phillip Brown, Executive Director, Kentucky Jimmy Higdon; Representatives Ken Fleming, within that budget. The maintenance budget Communications Network Authority (KCNA); Chris Fugate, Jeff Greer, Chris Harris, Kenny lies within the overall Highways budget, which Steve Murphy, Chief Financial Officer, KCNA; Imes, Robby Mills, Marie Rader, and Jim Stewart could present an opportunity to be flexible Cindy Arlinghaus Martin, Boone County III. with the use of those funds. Mr. Rigney added Property Valuation Administrator (PVA); and Guests: Robin Brewer, Executive Director, that maintenance needs are increasing, and any Mack Bushart, Executive Director, Kentucky Office of Budget and Fiscal Management, reduction in the maintenance budget would be PVA Association.

18 2017 Interim LEGISLATIVE RECORD LRC Staff: Jenny Bannister, Liz Columbia, provided a brief update of the KentuckyWired out for the different expenses that are due. and Spring Emerson. Initiative. Senator McDaniel requested that the KCNA Finance and Administration Cabinet: In response to questions from Chair Linder, come before the Interim Joint Committee on Finance Facilities Energy Management Mr. Brown said he has been the Executive Director Appropriations and Revenue at its next meeting Programs of KCNA for three and one-half months, and on September 28, 2017 and provide more Jennifer Linton, Executive Director, Office the project agreement for the KentuckyWired information on the KyWired project, including of Facility Development and Efficiency, FAC, Initiative was signed in September 2015. the original projected cost versus the actual cost; and Andrew Carter, Energy Management Negotiators for the Commonwealth were from a detailed corrective action plan; and, a detailed Program Manager, Division of Facility Efficiency, the prior administration. shutdown plan. FAC, testified about Finance Facilities Energy In response to questions from Representative In response to questions from Representative Management Programs. Moffett, Mr. Brown said there were no fines Meredith, Mr. Brown said the original intent was In response to questions from Chair Linder, charged as a result of project delays, but delays to use current infrastructure wherever possible. Mr. Carter said that steps in the federal Energy resulted in extra costs. There was a fixed-fee The KyWired network will make middle-mile Savings Performance Contracts (ESPC) process arrangement where involvement and risk was transport capacity available to smaller providers, include working with facilities staff to verify higher but initial price lower, but the agency is which gives them basic foundation access to a the service contract numbers. The numbers moving to more of a cost-plus model thereby network they can lease and improve their own affect savings by driving the importance to use paying for cost, plus extras. Estimated cost service without making the capital expenditure historical data to verify the savings estimates overruns for supervening events would be tens on their own. Every broadband network must are correct. Ms. Linton said that the projects are of millions of dollars, payable promptly when have middle-mile transport capacity, and fiber is budget-neutral for state agencies, with financing vendors identify when those costs were incurred. the best way to do that, and it will be available being paid back with savings in utilities. Real- The original concept behind the project was that for a very fair cost. Actual sales contacts by time metering is not used; rather, data is shipped the Commonwealth could ensure control over Open Fiber Kentucky have not begun in earnest out daily. the necessary input to provide services, improve because, without the wholesale agreement being In response to questions from Representative the quality of the services, and normalize the final, it would be premature to discuss pricing. Miller regarding new construction, Mr. Carter costs to remain somewhat steady over the life In response to a question from Representative said the software vendor has reviewed the of the project. To date, there is no replacement Miles, Mr. Murphy said the KyWired budgeting initial engineering designs of the Kentucky for the $11 million as part of the gap funding and up-front payment information would be International Convention Center (KICC), that has been provided so far by the General provided at a later date. Mr. Brown said there making sure it adheres to the American Society Assembly to help make the payments. The $11 are far more communities wanting the KyWired of Heating, Refrigeration, and Air Conditioning million is eRate funding, which is part of the network than not. If a community does not Engineers (ASHRAE) 36P new building Universal Service Fund which is designed to want to work with KyWired, the project can be standards of operation. All contracts on the help reimburse schools and libraries for the cost redesigned to reflect those changes. KICC project have been let. of their internet connectivity. Representative In response to questions from Representative In response to questions from Representative Moffett commented that $30 million in Wayne, Mr. Brown said federal funds have been Wayne regarding alternative energy resources, bonds were issued under fraudulent revenue appropriated and are subject to the project being Ms. Linton said solar energy had been considered projections, and the delays were foreseeable. He completed by 2020. Representative Wayne said in the past, but on ESPC projects the agency said public-private partnerships (P3s) are an that the Capital Projects and Bond Oversight wants to keep the payback within fourteen years, interesting idea, but the risk has to be shared by Committee should look into this and request an and solar energy would not cash flow within that both the taxpayers and the private sector. audit. period of time. Several solar energy projects have In response to questions from Senator Representative Gooch said that there are been installed for the Department for Military McDaniel, Mr. Brown said that $11 million in people without access to high-speed internet, Affairs across the state because that agency eRate money had been anticipated to be available, and it seems that the service providers are not provided up-front capital funds. Ms. Linton will but it is not. They are currently at approximately providing services. provide additional information at a later date on 89 percent completion on the pole attachment In response to a question from Senator the cost of installing solar panels. agreements, and there are 6,600 poles remaining Carroll, Mr. Brown said future revenue from In response to a question from Chair that require access. A conservative estimate of wholesale activity would be significant, although Linder, Ms. Linton said the payback period for the total project cost would be $350 million to the mechanism for utilizing that revenue is solar energy exceeds twenty years. $360 million, but that depends on total cost of undetermined at this time. Representative Gooch said he had recently easements and unknown supervening events. In response to a question from attended a solar energy workshop in San The original project budget was $324 million; Representative Koenig, Mr. Brown said when Antonio, Texas, and the time has come for these and, the total amount of funding for the project, service rings are turned on, revenues would renewable resources to stand on their own. which includes bonds, equity contributions start coming in. Mr. Murphy said that future Chair Linder commented that, in 1996, the and milestone payments, the Commonwealth’s flow availability payments would go to future average kilowatt hour for a home was about five amount of $30 million, availability payments, debt service, payments to the service provider and one-half cents, and in 2012, it was a little over and interest, is $413 million total. The for servicing the network, a portion of the ten cents. Costs are rising and energy efficiency Commonwealth has the option to dispute construction costs, and special purpose entity will pay itself back. anything that it deems to be inaccurate, but expenses. The agreement in northern Kentucky Kentucky Communications Network the cost of supervening events is unknown. with Cincinnati Bell is the first third-party Authority: Customer pricing has not yet been determined. agreement. It uses existing infrastructure, and KentuckyWired Initiative Update Mr. Murphy added that availability payments go more is being built. Phillip Brown, Executive Director, KCNA, to the special purpose vehicle, then are parsed Representative Couch commented that THE KENTUCKY GENERAL ASSEMBLY 19 the idea for the middle-mile transport capacity from Representative Miles, Mr. Bushart said an existing student loan and still qualify for came from Congressman Hal Rogers in order to there are a few PVAs that do not have a website. the scholarship, as long as the loan is in good provide internet access, and to assist with start- The fee schedule for commercial users is standing. Students wishing to apply for the ups of small businesses in the eastern Kentucky developed by the Department of Revenue. Ms. scholarship may call 800-928-8926 for assistance. area. The Appalachian Regional Commission Martin added that the majority of foot traffic is In response to a question from (ARC) money must be spent in eastern Kentucky, related to motor vehicles. Representative Richards, Dr. Rollins said that east of I-75 and south of I-64. There being no further business before the a representative from KHEAA would provide In response to a question from subcommittee, the meeting was adjourned at a breakdown of detailed construction worker Representative Coursey, Mr. Brown said $23.5 12:12 PM. positions across the state to the committee. Mr. million was made available through the ARC for Montell said that the average age of electricians the KyWired project. across the state is 57 years old with no pipeline to Chair Linder commented that he has offered INTERIM JOINT COMMITTEE ON fill these positions once workers reach retirement his help with the pole attachment issue through APPROPRIATIONS AND REVENUE age. his utility contacts. He thanked the KCNA for its Budget Review Subcommittee on Education In response to a question from service. Minutes of the 1st Meeting Representative Tipton, Dr. Rollins stated that Property Valuation Administrators: of the 2017 Interim residency requirements are set at the discretion Agency Budget Update July 27, 2017 of individual institutions. Generally, students are Mack Bushart and Cindy Arlinghaus Call to Order and Roll Call required to live in Kentucky at least a year before Martin provided a brief overview of the PVA and The 1st meeting of the Budget Review they are eligible for scholarship money. an update of the agency budget. Subcommittee on Education of the Interim Joint In response to a question from Representative In response to a question from Committee on Appropriations and Revenue was Riley, Mr. Montell said that he thinks ages 18-58 Representative King, Ms. Martin said KRS held on Thursday, July 27, 2017, at 10:00 AM, in are used to calculate the workforce participation 132.590 is the referenced statute relating to PVAs. Room 154 of the Capitol Annex. Representative rate but that he would provide the committee In response to questions from , Chair, called the meeting to order, with the exact ages. Representative Koenig, Ms. Martin said the and the secretary called the roll. In response to a question from two employee requirement is in addition to the Present were: Representative Brown, Mr. Montell said that PVA, so each office would have a minimum of Members: Representative Regina Bunch, there are almost limitless career opportunities three employees. The Boone County PVA office Co-Chair, James Tipton, Co-Chair; Senator in the five career paths. Dr. Rollins added that has the PVA, six full-time employees, and eight Gerald A. Neal; Representatives George Brown changing the culture in Kentucky regarding the part-time employees. The full-time equivalent Jr., David Hale, Jody Richards, and Steve Riley. importance of education is imperative. of the eight part-time employees would be Guests: Brad Montell, Deputy Secretary, In response to a question from Representative approximately three and one-half, with each Education and Workforce Development Richards, Dr. Rollins said that there is a chance working about 80 hours per month. Some of Cabinet; Jessica Fletcher, Executive Director of that students may leave rural areas to fill job the more rural counties in Kentucky have more Communications, Education and Workforce vacancies in larger cities but the hope is that employees. Mr. Bushart said he believes there are Development Cabinet; Dr. Carl Rollins, Executive they will return to their communities with more no statutory limitations on county PVA offices Director, Kentucky Higher Education Assistance education and training. Mr. Montell added that working together and sharing their resources. Authority; Charles Harman, Director, Division having a skilled workforce in Kentucky’s rural In response to questions from Representative of Budget and Financial Management, Kentucky communities will incentivize companies to move Meredith, Ms. Martin said there would not be a Department of Education; Sally Fletcher, Branch there. decrease in personnel costs if every county had Manager, School Readiness; and Anthony Mires, Kentucky Department of Education Pictometry available. Mr. Bushart said the tax roll Executive Director, AdvanceKentucky. Charles Harman, Director, Division of has increased tenfold in the last 25 years, and the LRC Staff: Chuck Truesdell, Joe Lancaster, Budget and Financial Management and Sally PVAs have fewer employees now. Representative Jonathan Eakin, and Amie Elam. Shepherd, Branch Manager, School Readiness Meredith commented that the Special Districts Work Ready testified regarding the Preschool Partnership model has some merit. He said volunteer fire Brad Montell, Deputy Secretary, Grant. Mr. Harman said that the grant was departments should be exempt under Chapter Education and Workforce Development used to incentivize public/ private partnerships 273. Cabinet, Jessica Fletcher, Executive Director of between school districts and childcare providers In response to a question from Communications, Education and Workforce to develop full-day, high-quality early childhood Representative Gooch, Mr. Bushart said House Development Cabinet, and Dr. Carl Rollins, programs for Child Care Assistance Program Bill 44 limits individual districts to funding of no Executive Director, Kentucky Higher Education eligible preschool children. Mr. Harman more than four percent over the previous year. Assistance Authority (KHEAA), testifiedprovided background information on the grant Representative Gooch introduced Jeff Kelley, about the Work Ready Kentucky Scholarship and the district implementation process. Webster County PVA. Program. The presentation included information In response to a question from Chair Chair Linder welcomed all the PVAs who regarding eligibility requirements, statewide Bunch, Mr. Harman believes the reason there is were in attendance. participation, and outreach. Mr. Montell spoke very little participation in far eastern Kentucky In response to a request from Representative about the five industry sectors: Advanced is that many districts had difficulty finding good Moffett, Ms. Martin said a list of the number of Manufacturing, Business and Technology preschool partners. properties per county would be provided at a Information, Construction Trades, Health Care, In response to a question from Representative later date. and Transportation Logistics. Richards, Ms. Shepherd said that quality learning Representative Miles welcomed Clay Wells, In response to a question from Chair is measured by Kentucky STARS, a quality rating Union County PVA. In response to a question Bunch, Dr. Rollins said that a student may have and improvement system. She added that any

20 2017 Interim LEGISLATIVE RECORD early childhood program that receives public Chairman Carney informed members that SBDMs on addressing achievement gaps. Ms. funding must participate in this system. data regarding the positive economic impact Harmon said that there are signs of improvement In response to a question from Representative of Kentucky’s 18 independent colleges and in gap scores across Kentucky from 2014- Tipton, Ms. Shepherd said that there are ways to universities would be sent to their legislative 2016, and she highlighted schools from each measure kindergarten readiness for students in addresses. region with significant improvements. She then the grant program vs. traditional students. Ms. School-Based Decision Making Councils highlighted KRS 158.649(8) which states, “…if a Shepherd said public preschool serves nearly 25 Ronda Harmon, Executive Director, local board determines that a school has not met percent of Kentucky’s preschool age students. Kentucky Association of School Councils was its target to reduce the identified gap in student AdvanceKentucky present to provide an overview of the history and achievement for a group of students, the local Executive Director, Anthony Mires gave function of school councils, also called Site-Based boards shall require the council, or the principal an overview of the AdvanceKentucky program. or School-Based Decision Making Councils if no council exists, to submit its revisions to the Mr. Mires provided research regarding student (SBDMs). She explained that the idea of a group school improvement plan describing the use success in the 119 participating schools. of parents, teachers, and principals working of professional development funds and funds There being no further business before the together to increase student success predates the allocated for continuing education to reduce committee, the meeting was adjourned at 11:33 1990 Kentucky Education Reform Act (KERA). the school’s achievement gap for review and a.m. However, KERA did formalize the process by approval by the superintendent…,” to illustrate which school councils would be formed and the active role school councils have in addressing INTERIM JOINT COMMITTEE ON required them for a majority of Kentucky public achievement goals. Evidence was provided that EDUCATION schools. As of the 2016-17 school year, there schools in districts who are exempt from school Minutes of the 3rd Meeting were a total of 7,485 school council members, of councils (those districts with only one school) are of the 2017 Interim which 2,545 were parent representatives. 501 of less likely to perform in the top half of Kentucky August 28, 2017 the parent representatives were further identified schools. While school councils are certainly not Call to Order and Roll Call as minority parent representatives. Ms. Harmon the entire solution to achievement gaps, councils The 3rd meeting of the Interim Joint stated that school councils empower parents, put decision making capabilities in the hands of Committee on Education was held on Monday, teachers, and principals and provide the venue those most closely connected with students in August 28, 2017, at 1:00 p.m., in Grace Crum for each group to have a voice and effect change. terms of curriculum, staffing, and budgeting. Rollins Fine Arts Center at the University of There is an annual training requirement of six Ms. Harmon invited Michelle Burke, SBDM the Cumberlands. Representative John Carney, hours for new council members and three hours parent member, Madison Middle School, and Liz Chair, called the meeting to order, and the for experienced council members in Kentucky Erwin, Principal, Paint Lick Elementary School, secretary called the roll. Department of Education (KDE) approved to speak regarding their experiences on school Present were: curriculum. For new members the curriculum councils. Ms. Burke said that, as a minority Members: Senator Mike Wilson, Co-Chair; includes an introduction to SBDM and an parent representative, she valued the opportunity Representative John Carney, Co-Chair; Senators overview of member roles and responsibilities to positively impact her children’s education. She Danny Carroll, Stephen Meredith, Reginald provided by the Kentucky Education Association. spoke of communicating concerns on behalf of Thomas, Johnny Ray Turner, Stephen West, and Experienced council members receive training other parents who were either unable or afraid to Max Wise; Representatives Mark Hart, Regina in roles and responsibilities, teamwork for speak up to school leadership. Being a member Huff, Reginald Meeks, Phil Moffett, Tim Moore, achievement, bylaws and policies, family and of the council is an opportunity for her to model Rick G. Nelson, Melinda Gibbons Prunty, Steve community engagement, tools for closing the leadership skills for her children and encourage Riley, Attica Scott, James Tipton, and Jill York. disability gap, novice reduction, budgets for them to take an active role in the issues that Legislative Guests: Senator John Schickel school councils, SBDM and the Every Student concerned them at school. Ms. Erwin spoke about Guests: Terry Manuel, Commissioner, Succeeds Act, and formative assessment. the valuable role school councils have in creating Department for Libraries and Archives; Elizabeth Ms. Harmon presented data which illustrates a community and a partnership between parents, Milburn, Library Services Division Director, the positive impact of school councils. Teachers teachers, and principals. As a new principal, she Department for Libraries and Archives; Steve and administrators report more favorable feels the involvement of the school council in her Carter, Assistant Superintendent of District- conditions for effective school leadership on the hiring provided an essential connection to the Wide Services, Union County Schools; and Mark 2017 TELL Kentucky Survey in schools with stakeholders of her school before she even began White, Editor, News Journal. school councils. Additionally, she presented data her employment. She was able to begin forming LRC Staff: Jo Carole Ellis, Joshua Collins, from the annual Comprehensive School Survey the connections that will be invaluable to her as and Maurya Allen. in Jefferson County where 84 percent of school- she moves from being a parent and teacher to Chairman Carney welcomed members based certified staff agreed or strongly agreed being a principal. and thanked the staff of University of the with the statement “School-Based Decision Senator John Schickel expressed concerns Cumberlands for opening their doors to the Making has helped improve my school” and 90 regarding SBDMs and areas that he feels need committee, as did Representative Regina Huff. percent of parents agreed or strongly agreed with to be examined. Over the nine years he has Welcome and University of the the statement “The Site-Based Decision Making been a state senator, he has grown aware of the Cumberlands Overview Council has helped to improve my child’s importance of education to the future of the Dr. Larry L. Cockrum, President, University school.” Finally, superintendents give principals Commonwealth. Everyone pays for schools of the Cumberlands, welcomed members and assistant principals high ratings as school through taxes because the success of schools and presented some brief facts about the leaders with zero percent receiving the lowest and education is the responsibility of everyone. university. He played a video created by students rating of “ineffective” on the 2016 Professional Contrary to some criticisms he has heard, highlighting aspects of the school from a student Growth and Effectiveness System evaluations. Senator Schickel said he does not feel that perspective. Particularly emphasized was the impact of superintendents should be the sole decision- THE KENTUCKY GENERAL ASSEMBLY 21 making entities for schools. The elected school Mr. Massey also spoke to the need for as to why it was taking so long for site-based board which represents all the taxpayers, not greater involvement by parents than is offered authority to be restored including the possibility just parents and teachers, should have the final by the SBDM structure as it currently exists. that the schools left priority status too soon say about what goes on in schools. While some Irrespective of the council, whether it is advisory (before they had reestablished site-based SBDMs work well, and he has experienced that, or not, parents must be involved in much higher authority), an inconsistency in the priority and some do not. His primary concern is that people numbers than made possible by SBDMs. He SBDM restoration policies, or possibly that the making decisions about schools, particularly reiterated the concern that school boards are held management audits indicated that the SBDMs about the allocation of funds, do not always accountable for decisions, particularly budget were hindering needed reforms. As there were live in the taxing district. Senator Schickel decisions, made by school councils without the four schools where the management auditor agreed that parental involvement is critical, but authority to influence the decisions. And finally, specifically recommended disbanding of statutorily, parents are a minority voice on school he was equally aggrieved by the OEA decision in dysfunctional SBDMs, Mr. Waters felt that the councils. Additionally, the current structure of Boone County and the lack of an appeal process. final scenario was most likely. SBDMs puts superintendents, who are hired The school board is going to be required to Mr. Waters said that while there is evidence by school boards, in an unfortunate position of pay for the training mandated for the principal of progress in achievement throughout Kentucky, being responsible for situations without having and superintendent, as a result of conflicting it has not been enough to close the achievement the tools to effect real change. The system, in his information provided by state educational gaps and ensure the next generation is prepared. words, is dysfunctional at its core and is the result entities. The board was particularly concerned He directed members’ attention to his written of an overcorrection to school board problems of with the ruling that Mr. Poe had usurped the testimony, provided in their meeting packets, for the past. authority of the board and site-based council further data and analysis. While teachers are in Senator Schickel then invited Randy when they had given him express permission to control of the councils, he questioned whether Poe, superintendent, Boone County Schools take the action in question. Rather, individuals they are adequately trained for the complex and and Ed Massey, school board member, Boone who were not members of either body made sophisticated decisions regarding the handling County Schools to share their concerns. Mr. the complaint to OEA resulting in additional of local, state, and federal dollars. The six hours Poe explained that he is incredibly supportive of legal fees for the school district. Mr. Massey of training hardly seems adequate to prepare parental involvement in schools and the valuable said good teachers and strong parental and them to make informed decisions regarding opportunity provided by school councils to community engagement are the keys to success finances, much less guide complex curriculum enhance parental empowerment. The statutes in the classroom. School board members will options with the rise in the use of digital governing school councils need revision because continue to serve as liaisons to the community learning options. Curriculum decisions are of differing interpretations of the statutes over and involve parents in their actions, whether crucial to properly preparing students for their the more than 20 years the legislation has they are members of school councils or not. futures, and in nine of the management audits been in effect. He cited the ruling in Board of Mr. Jim Waters, President and CEO, previously referenced “curriculum neglect” Education of Boone County v. Bushee where the Bluegrass Institute, testified about school was a serious issue that needed addressing. He courts said that school boards do not have any councils. He specifically pointed out the lack asked what the governance model of SBDMs authority over site-based councils. This created of research on SBDM councils and how they had really accomplished in terms of improved an issue across Kentucky where school boards function in schools. The most current research school cultures and parental involvement across stopped taking an interest in SBDMs because was conducted by a former University of the state. Frequent complaints were referenced they are unsure of their authority over SBDM Kentucky professor, Jane Clark Lindle, in 2001, from schools across the state about difficulties actions. This has driven up costs, confuses and many of the problems identified in her study finding parents to serve on SBDMs. Mr. Waters taxpayers, and calls into question textbook and have yet to be resolved. The first issue that Mr. suggested that it was time for OEA and KDE to curriculum discrepancies among schools within Waters urged the committee to address was investigate parental involvement, especially in the same district. Boards and superintendents the need for an external management audit to low-performing schools. are forced to spend limited funds on legal advice be performed on SBDMs, especially those at Chairman Carney said that questions would because they do not have clear rules on areas of priority schools. He gave an example of a high be limited as the issue of SBDMs would be responsibility. As an example, Mr. Poe informed performing school that had difficulties with its addressed in more detail later in the year. the committee that the Office of Education SBDM council in regards to a digital learning Senator Thomas stated that he had served Accountability (OEA) recently ruled that the program and authority over curriculum and as a president of his local school council and Boone County superintendent and school board contracts. This reinforced earlier statements that had experienced the many positive aspects that had usurped the authority of the school council there is confusion regarding authority between school councils had brought to the schools since when all the parties had been in agreement school boards, superintendents, and SBDMs. the implementation of KERA. In his mind, the on a course of action, at the advice of the state Mr. Waters indicated that there is little lack of funding for schools has been the biggest SBDM trainer, KDE, and school board attorney. evidence that the SBDM model is fulfilling detriment to improvement in school achievement. The OEA ruling further requires training for its statutory mandate to improve student He also stated his familiarity with historical the principal and superintendent. He feels that achievement. Mr. Waters said that 31 of the abuses of school boards and had not seen those legislative action needs to be taken to create 47 schools categorized as priority schools lost same abuses perpetrated by school councils. a balance between parental engagement and their site-based authority during the process He asked what specific recommendations board membership holding final authority in of being named a priority school and only two Senator Schickel had regarding school council the district. Specifically, OEA should not have have had site-based authority restored. Nine of legislation. In response, Senator Schickel said he authority over disagreements between school the schools are eligible for restoration of site- had proposed several bills in the past to overhaul councils and school boards because they do not based authority this fall, pending results of the the SBDM system, and that he had yet to file have any stakeholders or understanding of the most recent academic year, even though they anything for the upcoming session as he was district. left priority status in 2015. He conjectured wanting to open up discussion among all the

22 2017 Interim LEGISLATIVE RECORD individuals present today. Primarily, he wanted well-being to a qualified individual. If a teacher passing a content assessment; not paying the to ensure that superintendents and school violates any of the standards, EPSB also has the certification fee; or failure to pass a character, boards have authority commiserate with the authority to take action against the certification fitness, or background check. Approximately responsibilities they currently have, particularly of a teacher up to and including revocation of the 8,000 of those deficient applications have since in terms of taxing and curriculum selection. certificate. Ms. Graves explained that certification been addressed and certifications have been Senator Thomas said that Senate Bill 1 of begins with the accreditation of EPPs and the issued to the applicants. In the area of educator the 2017 Regular Session, which is now in effect, approval of education programs for licensure. ethics, Mr. Adams said there are 729 complaints does give superintendents the authority, within There are also candidate assessments to ensure received annually. The vast majority of complaints the first two years a school is identified as failing, pedagogy and content knowledge, for example come from superintendents, and all are reviewed to step in and take control of principal hiring. the Praxis, and internship programs such as by a Complaint Review Committee of three staff In response to a question from the Kentucky Teacher Internship Program members. The committee determines if there is Representative Scott, Ms. Burke said that she (KTIP) and the Kentucky Principal Internship credible evidence of a violation and if it is within ensures that student voices are heard at the Program (KPIP). Traditional routes are through the jurisdiction and authority of the EPSB. If council by encouraging them to attend and a university-based program, but there are also these factors are met, the case is submitted provide public comment at the meetings rather eight alternative routes to certification outlined to the board for review. Prior to review by the than doing it herself for the students. She hopes in KRS 161.048. Finally, there is a proficiency- board, the educator in question is notified and that this gives them the empowerment to speak based certification, set to come before the provided the opportunity to submit a rebuttal. up for themselves. In response to the question board again in October, which would allow an Actions of the board in cases of violation include about her decision to join the council, she had individual to have their experiences evaluated by dismissal, deferral for training, admonishment, self-nominated herself as a council candidate an accredited institution for comparison to an admonishment with training, attorney review and was elected by fellow parents who had been approved education program. If it is satisfactorily and investigation, referral to hearing, and given the same opportunity to self-nominate similar, the individual can receive certification, deferral for more information. as she had through an open request from the with additional classwork as necessary. Mr. Adams said that the mission of EPSB superintendent to the entire community of Under the Division of Educator Preparation, is to support the achievement, improved parents. Assessment, and Internship, there are 27 approved understanding, and performance of P-12 Approval of Minutes EPPs and approximately 1,852 initial, advanced, students in Kentucky. To achieve this, EPSB’s goal Representative Nelson made a motion, and other school professionals programs. Also, is to recruit and retain the most effective teachers seconded by Representative Scott, to approve EPSB relies on various content and pedagogy and leaders in Kentucky for our students, and the minutes of the July 10, 2017, meeting. The assessments to ensure that someone with the this is the biggest investment in schools as well, motion passed by voice vote. right dispositions and who relates well with with 85 percent of school budgets allocated to Kentucky’s Teacher Certification Program children or teenagers is accurately teaching personnel. There is no shortage of qualified Jimmy Adams, Executive Director, content. Ms. Graves also discussed the KTIP and teachers in Kentucky, but there is a distribution Education Professional Standards Board (EPSB), KPIP programs. She said that this past year was problem. One of the immediate aims of the and Lauren Graves, Executive Staff Advisor, the first year that all KTIP applicants were able to EPSB is helping districts lacking teachers to EPSB, discussed Kentucky’s teacher certification be funded. The program is designed to provide promote their schools to better attract new program. Mr. Adams directed members’ assistance and support to new teachers and is teachers. Also, the agency recently underwent attention to the provided handout which based on the same framework for evaluation, a reorganization moving their 32 employees included an “at-a-glance” overview of EPSB, a so there is no additional workload placed on into three divisions: Educator Preparation, copy of the presentation, and a copy of the EPSB the teacher. The average number of interns is Assessment, and Internship; Certification; and 2016-2017 Annual Report. approximately 2,475 per year with a completion Educator Ethics. This allows EPSB to work more Ms. Graves said that EPSB consisted of a 15 rate of 99.3 percent. Mr. Adams explained that efficiently within current budget constraints. member board of P12 educators, representatives the KPIP internship program is designed to Regarding budget issues, Mr. Adams said that of education preparation programs (EPPs), help new principals, includes a mentorship the EPSB had experienced an approximately a public representative, and an appointee aspect, and has recently been redesigned with 39 percent reduction in budget since 2008 and of the School Curriculum, Assessment, and the assistance of the Kentucky Association for asked that legislators work to increase the EPSB Accountability Council. She shared the vision School Administrators (KASA). It also does not general fund budget in the next biennial budget. statement of EPSB which is that “every public include any additional workload, however it has The board would like to see full funding of the school teacher and administrator in Kentucky not been funded or implemented since 2008. KTIP and KPIP internships and allow for the is an accomplished professional committed He said that he would encourage the members use of restricted funds for these programs when to helping all children become productive to consider both of these internship programs necessary. Other legislative issues they are seeking members of a global society.” She discussed the when budget decisions are made in the next assistance with are student loan forgiveness commitment to rigorous professional standards legislative session. programs, teacher salary increases, maintenance for preparation, certification, and responsible Ms. Graves said that there are 42,000 certified of the Kentucky Teachers’ Retirement System, ethical behavior of all professional educators in educators employed in Kentucky’s public schools, and regulation reviews. All of these would aid Kentucky. To this end, EPSB sets standards and and 144,000 individuals currently hold Kentucky the goals of teacher recruitment and retention. certifies educators who have met the standards certifications. Additionally, there are 35,000 In response to a question from Senator in dispositions, ethics, skills, and knowledge. certification applications processed annually. Wilson, Mr. Adams said the cost of certificate Mr. Adams said that certification involves From 2005-2016, there have been roughly 11,000 renewal is $85 every five years. There is no fee assessments, and if a candidate meets the deficient certification applications reviewed. for initial statements of eligibility or one-year minimum requirements, EPSB can assure Applications can be found deficient in a number provisional certificates. In answer to a follow- parents that they are entrusting the welfare and of ways, including not having a transcript; not up question, Mr. Adams said that the board THE KENTUCKY GENERAL ASSEMBLY 23 is currently reviewing a modification to the highlight was the overwhelming increase in just funds, carry higher GPAs in college, take higher master’s degree barrier to Rank II to be further the first year by students in the cohort schools course loads, and graduate faster than non- discussed in their October board meeting. versus the state average. This is interesting participant peers. Data also illustrates that since In answer to a question from Senator West, because it shows that the exact same students the start of the program in 2008, Kentucky has Mr. Adams said that he does not have the precise are capable of significant gains in a very short seen a significant rise in the number of unique number of certificates that have been revoked, time with this program. The three-year growth students taking AP exams in all subjects and in but he believes it will be relatively small, as some chart shows that cohorts one through six have unique students earning AP qualifying scores. educators voluntarily surrender their certificates a dramatic 154.2 percent increase in qualifying Most remarkable is that in 2016, there were as part of a negotiated settlement. In his view scores. Additionally, the increase in qualifying more students earning a qualifying score than there are two categories of disciplinary scenarios. scores for free/reduced-price lunch students is had even taken the test in 2008. The number of The first is an educator who has made a mistake 302.9 percent and in minority students is 202.4 students achieving AP Scholars recognition is and wants to learn how to correct the mistake percent. The baseline number of qualifying also higher. and get back on a path to a successful career. scores for an AdvanceKentucky high school is Mr. Mires discussed the Kentucky computer The other is the very small group which does 20, and after eight years in the program the same science expansion initiative and the desire to not need to be around children, and EPSB does school achieved 120 qualifying scores. The most expand access to the AP Computer Science everything in their power to prevent them from exciting result of the data so far is there does not Principles course, which just started and takes a being around children. appear to be a plateau in the number of qualifying broad look at what computer science is, including In response to a question from Senator AP scores for participant high schools. data structures, algorithmic and computational Meredith, Mr. Adams said that there is a In terms of postsecondary impact, students thinking, and the internet. In partnership pathway to superintendent certification that participating in AdvanceKentucky go to college with Code.org, KDE, and the College Board, would not include a candidate having the at much higher rates. For the class of 2009, 94.2 AdvanceKentucky has more than doubled the necessary principal training. However, most percent of AdvanceKentucky participants went to number of teachers available to provide the candidates begin with a teacher certificate, college versus 64.3 percent of comparison groups. course and incorporated 15 middle schools that move on to a principal certificate, and then In 2015, 76 percent were going to college versus are teaching a pathway course. They plan to get their superintendent certificate. As long as 49.7 percent of comparison groups. The same continue this trend over the next two years and the superintendent certificate is maintained, trend continues for low income students, with expand access over the entire state. the other certificates will be as well, posing no 69.3 percent of AdvanceKentucky participants Through the experience of difficulty if a superintendent wishes to later going to college versus 40 percent of comparison AdvanceKentucky, educators have also identified pursue a principal position. groups in the class of 2015. This applies to all 8th Grade Algebra 1 as a critical turning point in AdvanceKentucky students who engage with the AP material, not students’ later ability to engage with advanced Anthony Mires, Executive Director, just those with qualifying scores. Data also shows coursework in high school. To address this, a AdvanceKentucky, discussed the AP math, that a greater percentage of AdvanceKentucky program very similar to the AP program has science, and English programs aimed at students choose STEM majors compared to their been developed specifically for middle school increasing access and success for students counterparts. This is evidence that students carry math, featuring all of the same key elements. The through AdvanceKentucky and the National confidence with them to tackle subjects they may PSAT 8/9 exam has been selected as the metric for Math + Science Initiative. The student centered have otherwise believed they were incapable of gauging student success, and the goals are shared elements of the program that directly benefit and that they internalize expectations for success among all math instructors in the school. The students are student time-on-task, exam fee beyond high school. 2016-17 pilot schools were Franklin-Simpson support, student recruitment and counseling, Mr. Mires showed the results of longitudinal Middle School, Green County Middle School, supplies, and equipment. There are incentives research from 2012 to 2015, illustrating the and Glasgow Middle School, and applications for teachers including stipends and bonuses, number of students that can still be served. In are currently being accepted for a second cohort. vertical teaming, teacher mentoring and content a control group, only 30 percent of students Mr. Mires gave a snapshot of the funding for coordinators, and rigorous content-focused will attempt an AP exam, whereas in an AdvanceKentucky. The base funding in fiscal year teacher training. The real driver for the program AdvanceKentucky school, 86 percent of students 2018 is $1.7 million, allowing for 30 schools to be is the open enrollment aspect, which opens the engage in AP and attempt an exam. In that served. The request is for $2.4 million in fiscal door for students and allows them to really engage same control group, 48 percent of students year 2019 and $2.6 million in fiscal year 2020 to with the challenge of rigorous coursework, with earned a qualifying score on a math, science, or support 36 schools and 48 schools, respectively. the proper support and tools for success. English AP exam, totaling 3,555 students with Historically the program has relied on some AdvanceKentucky has served 119 high at least one qualifying score. The percentage of outside sources of funding that will be expiring, schools since beginning in 2008 and just AdvanceKentucky students earning a qualifying which is why the funding request increases at a started the next cohort of 10 schools. Mr. Mires score is roughly the same at 45 percent, however, greater rate than the number of schools served. provided a graphic illustrating the schools that it represents a much larger number of students In response to a question from are currently the focus of AdvanceKentucky’s at 9,757. The difference between those is the Representative Scott, Mr. Mires said that the real efforts, as well as those which have been through group that AdvanceKentucky serves. Taking that key is flipping the idea of an “AP student” on the program already. Those schools which have difference, 6,202 individuals, multiplying it by its head. There were unintended consequences “graduated” from the program can become an average of two qualifying scores, and further in the ways teachers approached students and active cohort schools again at any time, at cost. multiplying by an average of $800 in average established courses. AdvanceKentucky seeks The first performance report Mr. Mires tuition cost per course, the result is an estimated to remove unintended barriers to Advanced shared showed the first-year percent increase savings of $9.9 million in direct tuition. This does Placement enrollment including summer in AP math, science, and English qualifying not factor in the other college savings, as these assignments, pre-requisite classes or tests, and scores by cohort. The aspect he most wanted to students also retain larger amounts of scholarship lack of student support outside of class.

24 2017 Interim LEGISLATIVE RECORD In response to a question from regulation. There was no discussion. Sterling Health Solutions; Tom Emberton; Representative Tipton, Mr. Mires said that the Chairman Carney thanked the University Michelle Jarboe, MAI; Lori Gresham, apparent decrease in the number of college of the Cumberlands for hosting the committee. Department for Medicaid Services, Cabinet bound individuals seen in the data is actually He said that the next meeting will be Monday, for Health and Family Services; Janet Justice, a result of the program going deeper into the September 18, 2017, at Valley High School in Kentucky Association of Health Care Facilities; school populations to reach students who would Louisville, Kentucky at 1:00 p.m. There being no Kathy Gallin, Signature Healthcare; Mary Lynn not have even considered the path otherwise. further business, the meeting was adjourned at Spalding, Christian Care Communities; Melissa There are a number of students in the beginning 3:24 p.m. Robbins, Monica Johnson, and Maegan Lamont, of the program who were already going to be Middlesboro Nursing and Rehabilitation taking AP courses and going to college. The INTERIM JOINT COMMITTEE Facility; Wendy Shepherd, parent of ABI waiver individuals that AdvanceKentucky is attempting ON HEALTH AND WELFARE AND recipient; Tiffany Evans, Woodland Oaks Health to reach now are largely those who may have Care Facility; Sarah S. Nicholson, Kentucky FAMILY SERVICES never considered it as an option before. Minutes of the Third Meeting Hospital Association; Robert E. Robbins, Review of Executive Order 2017-433 and of the 2017 Interim Robbins Enterprises; and Debra Finneran, Executive Order 2017-434 August 16, 2017 Masonic Homes of Kentucky. Brad Montell, Deputy Secretary, Education Call to Order and Roll Call LRC Staff: DeeAnn Wenk, Ben Payne, and Workforce Development Cabinet, Jessica The third meeting of the Interim Joint Jonathan Scott, Sarah Kidder, and Gina Rigsby. Fletcher, Director of Communications, Committee on Health and Welfare and Family Minutes Education and Workforce Development Services was held on Wednesday, August 16, A motion to approve the minutes of the Cabinet, and Wayne Lewis, Executive Director 2017, at 10:00 a.m., in Room 129 of the Capitol July 17, 2017 meeting was made by Senator of Education Policy and Programs, discussed the Annex. Senator , Co-Chair, Kerr, seconded by Representative Moser, and executive orders dealing with the Work Ready called the meeting to order at 10:05 a.m., and the approved by voice vote. Skills Initiative, Work Ready Skills Advisory secretary called the roll. Consideration of Referred Administrative Committee, and the Work Ready Kentucky Present were: Regulations Scholarship. There was no discussion. Members: Senator Julie Raque Adams, Co- The following administrative regulations Review of Executive Order 2017-496 Chair; Representative Addia Wuchner, Co-Chair; were referred for consideration: 201 KAR 20:070 Robyn Kenny, Associate Commissioner, Senators Ralph Alvarado, Tom Buford, Danny – establishes the requirements for the licensure Office of Finance and Operations, Kentucky Carroll, Denise Harper Angel, Alice Forgy Kerr, of nurses by examination; 201 KAR 20:110 – Department of Education; and Kevin Brown, Stephen Meredith, Reginald Thomas, and Max establishes the requirements for licensure by Associate Commissioner and General Counsel, Wise; Representatives Danny Bentley, Robert endorsement and establishes the requirements Office of Legal, Legislative, and Communication Benvenuti III, Larry Brown, George Brown for a temporary work permit for an applicant Services, Kentucky Department of Education, Jr, Jim Gooch Jr., Joni L. Jenkins, Mary Lou to practice nursing while the application for a answered questions regarding the executive Marzian, Chad McCoy, Russ A. Meyer, Kimberly license is being processed; 201 KAR 20:225 – order dealing with the reorganization of the Poore Moser, Darryl T. Owens, Melinda Gibbons establishes procedures by the Kentucky Board Kentucky Department of Education. Prunty, Steve Riley, and Russell Webber. of Nursing for reinstatement of a license that has In response to a question from Senator Guests: Ben Chandler, President and CEO, lapsed or has been subject to disciplinary action; Wilson, Ms. Kenny said there are 350 filled Foundation for a Healthy Kentucky; Jeff Key, 201 KAR 20:480 – establishes the requirements positions in the Frankfort branch, 200 in the Vice President of Business Development, Rapid for the licensure of graduates of foreign nursing Kentucky School for the Deaf and Kentucky Recovery Centers, Mainstreet Health; Mark schools; 901 KAR 5:061 – repeals 901 KAR School for the Blind, and 600 staff in the 53 area Fritz, President, Arizona/Texas Operations, 5:060 to eliminate the discretionary language technology centers. Together, these total 1,150 Mainstreet Health; Mark Bochan, MD, PhD, allowing the Office of Vital Statistics to reissue and KDE is below cap. Responding to a follow- Chief Medical Officer, Mainstreet Health; birth certificates at no charge under specific up question, Ms. Kenny stated that the increase Darryl Wellinghoff, Executive Vice President, circumstances; and 901 KAR 5:120 – establishes in the employee cap as part of this reorganization Mainstreet Health; Betsy Johnson, President, the reporting criteria for induced termination is to create the four positions in the Division of Kentucky Association of Health Care Facilities; of pregnancy. A motion to accept the referred Charter Schools. They need to expand the cap to Terry E. Forcht, Chairman and CEO, Forcht administrative regulations was made by Senator create the new positions and stay at or below cap Group of Kentucky; Mary Haynes, Nazareth Harper Angel and Representative Gooch, in the future as current vacancies are filled. The Home; Tim Veno, President and CEO, seconded by Representative Marzian, and rest of the reorganization consists of renaming LeadingAge Kentucky; Brenda Bowman, COO, accepted by voice vote. Representatives Jenkins, and consolidating existing positions and Southside Christian Child Care; Richard Morris, Marzian, and Owens registered a no vote on 901 divisions to improve efficiency. The request to Owner of multiple child care centers; Pamela KAR 5:120. increase funding to support the new division will D, Individual with Brain Injury; Jane Stahl, State of Health in Kentucky be made later with the overall budget requests. Executive Director, NeuroRestorative Kentucky; Ben Chandler, CEO, Foundation for a Review of Administrative Regulation – Mary Hass, Advocate, Brain Injury Association Healthy Kentucky, stated that Kentucky ranks th 725 KAR 2:070. Certification of renewal of of America; Jenny Jerdan and Denise Glover, 45 nationwide in economy. Kentucky ranks th th th public librarians. ABI Case Management; Melissa Sparks, Hyden 48 in drug overdose, 40 in youth obesity, 46 rd th Terry Manuel, Commissioner, Department Health and Rehabilitation; Martha Workman in adult obesity, 43 in heart disease deaths, 49 th for Libraries and Archives and Elizabeth and Mark Bowman, Kentucky Department of in adult smoking, 36 in youth smoking, and th Milburn, Library Services Division Director, Veterans Affairs; Morgan Ransdell, Kentucky 50 in cancer deaths. In 2017, a Journal of the Department for Libraries and Archives were Board of Nursing; Sarah McIntosh and Gene American Medical Association (JAMA) study present to answer any questions regarding the Hargis, Hargis & Associates; Harold Brown, showed cancer mortality declined 20 percent THE KENTUCKY GENERAL ASSEMBLY 25 nationwide from 1980 to 2014, but rates of tax on cigarettes is 60 cents. Although the building brand new, short-stay, high acuity, and increase were observed in Kentucky, especially current rate of teen smokers in Kentucky is transitional care buildings across the country. in eastern Kentucky. Social determinants of down to 16.9 percent, it is still 6 percent higher In addition to the benefit this model brings to health include economic stability, neighborhood than the national average of 10.8 percent. A huge patients that are transitioning from the hospital and physical environment, education, food, increase in the tobacco tax is needed to provide to home, it also represents a significant and community and social context, and the health better health outcomes and prevent the tobacco positive impact through development, jobs, and care system. In 2015, the U.S. Health Care from industry from adjusting to small incremental tax better health care in the Kentucky. Mainstreet a Global Perspective, The Commonwealth Fund, increases by offering incentives to smokers to wants to bring a new model of post-acute care reported that 17.1 percent of the GDP was spent help cover the increase. to Kentucky that will allow for competition and on health care in the United States compared Senator Alvarado stated that colon cancer better outcomes. Current Kentucky providers to 11.6 percent in France and 8.8 percent in the rates have improved, but there needs to be can operate a similar model. Mainstreet makes United Kingdom. Health outcomes in the U.S. better lung cancer screening. More important a significant investment in each of the properties are not good even though more is spent per than measures that restrict calorie intake is and does a considerable amount of diligence capita on health care. Kentucky needs to focus improvement in exercise. Kentuckians need to in selecting markets that will benefit the most. more on health to reduce the cost of health care. be motived to improve their health. The American Research group was hired by The Foundation for a Healthy Kentucky’s focus In response to questions by Senator Mainstreet to conduct a survey of Kentuckians is to change policies that will improve the health Meredith, Mr. Chandler stated that it is critical on the issue of post-acute care and found that of Kentuckians. Ways to reduce obesity include to do something about poverty which causes 71 percent of the people polled are in favor of healthy vending and school nutrition options, poorer health outcomes. Kentucky cannot attract having a local facility built. Some facilities in Complete Street policies, shared use agreements, companies because of its sicker workforce. Kentucky are based on more of a reimbursement sidewalks and trails, and farmers’ markets. Ways Healthier Kentuckians create a better workforce model rather than a clinical model. to help reduce smoking would be to enact smoke- which improves the economy. Economic Mark Fritz, President, Arizona/Texas free laws and raise the tobacco tax by $1 per pack. development in rural communities has to Operations, Mainstreet Health, stated that its The Campaign for Tobacco-Free Kids reported become a priority in the state. The focus needs to model is patient-centered and physician-led. that health care for smokers cost taxpayers be on health and keeping people healthy instead Mainstreet has full-time medical directors $1.92 billion annually with $590 million of the of on just treating people who are ill. that come to facilities every day and there is total spent on Medicaid. Teenagers are affected In response to a question by Representative an average of 100 hours per week of physician the most by smoking because their brains are Jenkins, Mr. Chandler stated that a solution coverage. The facility never exceeded single still developing. There are approximately 9,000 needs to be found for the opioid problem, but digit return to hospital rates or a 14-day length deaths per year to smoking related illnesses. there are specific things that can be implemented of stay. Patients are not completely healed or Senator Raque Adams stated that everyone immediately to help with tobacco related rehabilitated when they leave the facility. Each pays for the costs of smoking-related issues. illnesses. patient has an individual personal care plan, In response to questions by Representative In response to questions by Representative and physicians set a patient’s discharge date. All Benvenuti, Mr. Chandler stated that the revenue Gooch, Mr. Chandler stated that the increased facilities are joint commission accredited. Nurse generated by a $1 tax increase on cigarettes tax on tobacco products has to be significant practitioners who can work with the staff, the should be spent on prevention efforts. There is enough to impact the smoker and generate more patient, and the physicians are provided in each a need for laws that encourage people to make revenue at the same time. Incremental taxes will facility. While Registered Nurse supervisors do better choices. The General Assembly could not help, because smokers will be able to adjust not see patients, they are on call 24 hours a day 7 allocate funds to influence heathy behaviors and to the increase faster. days a week to help the nursing staff to make sure preventions. Currently health care dollars are In response to a question by Representative patients are taken care of properly. All facilities spent on people after they are sick but should Riley, Mr. Chandler stated that the foundation keep 100 percent electronic medical records to be spent more on prevention. There are grave supports more exercise and physical activities in make sure patients have real-time care. Hospital consequences of not taking care of the health school. The tax increase should include dipping partners help build programs in the facility that care needs of Kentuckians who receive public products. would help benefit the patient and the hospital. assistance, because they could end up costing the In response to a question by Senator Buford, Mainstreet’s model would be a one-stop shop for state more money in the long run if an individual Mr. Chandler stated that smoking rates have patients. In 2013, Mainstreet applied for a Center ends up in jail or becomes acutely ill. Kentucky dropped in the ten states with the highest tax for Medicare & Medicaid Innovation’s Health has laws that require hospitals to take care of rate on cigarettes. The states that have the lowest Care Innovation Award to show an episodic per these individuals which costs the taxpayers more tax rates have higher smoking rates. A pack of diagnosis case rate, known as a DRG in hospitals. money. cigarettes costs approximately $4.47, and there All data was certified by Milliman, a nationally In response to questions by Representative are some people who will smoke regardless of recognized actuarial company. George Brown, Mr. Chandler stated that because the price. Senator Buford stated that programs In response to questions by Representative the magnitude of the challenge is overwhelming, should not be started based on the $1 tax Wuchner, Mr. Fritz stated that Mainstreet does funds should be allotted for particular programs increase, because it is not a sustainable revenue accept managed care, Medicare, and private to help solve the problems. A statewide smoke- source. Mr. Chandler clarified that it would not pay insurance but does not accept Medicaid. free ban and $1 increase in cigarette tax would increase the tax rate from 60 cents to $1, but A diagnostic tool is used to look at an average show immediate results and would not cost the would increase the tax rate to $1.60. length of stay by diagnosis with co-morbidity. taxpayer anything. Representative Brown stated Post-Acute Care Facilities In response to questions by Senator that the smoke-free ban has worked in Lexington. Jeff Key, Vice President of Business Alvarado, Mr. Fritz stated that a patient can In response to questions by Representative Development, Rapid Recovery Centers, remain at the facility if a doctor determines Marzian, Mr. Chandler stated that the current Mainstreet Health, stated that Mainstreet is the patient should stay beyond the 21-day

26 2017 Interim LEGISLATIVE RECORD rehabilitation period. An individual cannot be Medicaid reimbursement. If Mainstreet only Alvarado, Ms. Johnson stated that she would admitted to the facility if long-term care services takes Medicare patients, the nursing facilities in provide the committee with information on the are required. Each hospital system wants patients Kentucky will have more Medicaid patients. percentage of revenue between Medicare and discharged as quickly as possible to improve Mary Haynes, Nazareth Home, stated Medicaid. Mr. Veno stated that Mainstreet’s discharge rates. It is more economical for that current Kentucky providers have invested proposal would duplicate existing services. Ms. doctors to visit patients at the facility rather than resources and money into communities. Nazareth Haynes stated that Mainstreet’s model of care the hospital. Darryl Wellinghoff, Executive Vice Home already operates using the recovery is not new and there would be no difference in President, Mainstreet Health, stated Mainstreet care model. Nazareth Home was founded on outcomes. Value-based purchasing drives down will look at every state to see what is required excellence, inclusiveness, person-centeredness, cost and drives up quality. If a facility wants to and available and pursue options. Mainstreet has and clinical care and has been very successful. conduct business in Kentucky, it needs to buy the worked with CON boards in several states and The overall trend for sub-acute and post-acute excess capacity beds to provide its services. gotten approval for new facilities without buying rehabilitation is declining. In 2000 and 2014, Robert E. Robbins, M.D., stated that he beds. Mark Bochan, MD, PhD, Chief Medical the federal government enacted the IMPACT strongly supports the amendment to 900 KAR Officer, Mainstreet Health, stated that Mainstreet Act, and the government, insurance companies, 5:020. If he ever needs skilled nursing care provides an interim facility for people who are and MCOs contract with nursing facilities for after a hospital stay, he wants the stay to be the too sick to go home or not sick enough to go to services. The current mix in her facility is 50 shortest time possible in a facility that is new a another facility. Mr. Fritz stated that the facility percent Medicare and 50 percent managed care and specializes in rehabilitation versus a nursing is not cherry picking by looking for clientele who which also includes commercial insurance. The home that is predominantly long term care with need short-term rehabilitation. trend is that the length of stay and admissions some rehabilitation. The amendment would In response to questions by Representative are both down. With traditional Medicare A, the change the focus to the needs of the patient and Moser, Mr. Fritz stated that the difference co-insurance starts on the twenty-first day of away from the business needs of the nursing between the rapid recovery model and a stay. She questioned how Mainstreet would be homes. Having a new facility with state-of-the traditional rehabilitation hospital is the cost. The able to accept a Medicaid co-pay for a Medicare- art rehabilitation will make a big difference in rate of hospital readmission for Mainstreet is only bed. Orthopedic patients have the shortest the quality of life for the citizens of Kentucky. approximately five percent. length of stay. Mainstreet’s model is not a new Child Care Assistance Program (CCAP) In response to questions by Senator Danny model or payment system. If Mainstreet desires Providers Carroll, Mr. Fritz stated that since Mainstreet has to bring a new business to Kentucky, it needs to Brenda Bowman, COO, Southside Christian opened facilities in different states, no long-term purchase excess bed capacity. Child Care, stated that CCAP helps provide care facility has gone out of business. Medicaid In response to a question by Representative assistance to low-income families. Even though is for long-term care services, and Mainstreet Jenkins, Ms. Haynes stated that access to there was a small increase to CCAP to providers, focuses on short-term recovery. Mainstreet rehabilitation centers is not a problem in it was not enough to keep some centers from accepts Medicaid recipients who need short- Kentucky. Representative Jenkins stated that closing. The reimbursement rate to centers is term care. The rapid recovery model works most Kentuckians want to stay at home and have based on daily attendance not enrollment. There best in urban areas with more health systems. wraparound services if appropriate for their care. is a staffing crisis, because centers cannot recruit Approximately 65 percent to 70 percent are In response to question by Senator and maintain qualified workers. Kentucky’s rate Medicare patients, because Medicaid patients are Meredith, Ms. Johnson stated that changes to the is much lower than Indiana and Tennessee. admitted as a Medicare patient. Each patient can SHP for nursing facility beds include relicensure Richard Morris, Owner of multiple child have a different co-pay. Each market is different. as nursing home beds and could never be care centers, stated that CCAP has not kept up Betsy Johnson, President, Kentucky certified as Medicaid but only as Medicare-only with increased expenses for the past 11 years. Association of Health Care Facilities, stated that beds, and nursing home beds for the provision of The number one concern is to attract and retain she opposes the Cabinet for Health and Family post-acute rehabilitation services would not be qualified staff. A concern is who takes care of the Services’ amendment to 902 KAR 5:020 that included in the calculation of the need criteria. children if parents cannot afford day care. would amend the current Certificate of Need Based on the cabinet’s own data, there is are Senator Raque Adams requested the (CON) criteria for short-term rehabilitation 18,653 open beds that would not be included in statistics for Kentucky, Indiana, and Tennessee’s services in the State Health Plan (SHP). the need criteria. The change to the SHP assumes reimbursement rates and recommendations to Terry E. Forcht, Chairman and CEO, Forcht there is a need for these types of services. All improve the CCAP. Group of Kentucky, stated that his group obtained other facilities in Kentucky have had to go In response to questions by Representative its first CON in 1972 and still complies with the through the CON process and prove a need for Benvenuti, Ms. Bowman stated that centers CON requirements today. The group owns nine services that would be provided. Nursing home are paid on daily attendance. Representative health and rehabilitation centers in southeastern providers are investing money in facilities to Benvenuti stated the reimbursement rates should Kentucky with 1,109 beds, 1,344 employees, add rehabilitation services. Facilities would lose be based on enrollment not daily attendance. and occupancy rate of 97 percent. If the CON money if services were provided to Medicaid- Senator Danny Carroll stated that a facility program is amended for additional Medicare only patients, and many facilities would have is allowed to require parents to pay the difference rehab beds, it will have a devastating effect on all to close leaving no one to take care of the long- between its daily rate and the rate reimbursed by nursing facilities in Kentucky and will raise the term Medicaid patients. Tim Veno, President the state. Mr. Morris stated that he did not want cost to Kentucky and create additional Medicaid and CEO, LeadingAge Kentucky, stated that the to change his business model and not serve low- problems. The CON program provides duplicate only criteria for the new proposal is that there income families. Abuse rates go up when a parent services and is working as it was originally is an average length of stay of 21 days or less. and/or guardian cannot get child care assistance. intended. His group and other nursing facilities Mainstreet would be exempted from the need In response to a question by Senator Wise, have spent allot of money to upgrade facilities for calculation and the need methodology. Ms. Bowman stated the percentage of CCAP residents. Medicare reimbursement is more than In response to a question by Senator children is between 70 percent and 96 percent THE KENTUCKY GENERAL ASSEMBLY 27 depending on the facility, and Mr. Morris said stated that she received a brain injury in 2016. Kentucky Transportation Cabinet (KYTC), Jason his average is 70 percent to 75 percent in his Adult protective services was called, and an ABI Denny, Anderson County Clerk, Kevin Mooney, facilities. case manager helped her fill out an ABI waiver Bullitt County Clerk, and David Allgood, Acquired Brain Injury (ABI) Waivers: application. She just wants a chance to live a Director of Advocacy, Center for Accessible Substance Abuse, Residential Eligibility, and normal life. Everyone deserves to get needed Living. High Rate of Denials services. She slipped into depression while LRC Staff: John Snyder, Brandon White, Jane Stahl, Executive Director, waiting to get ABI waiver services. Dana Fugazzi, and Jay Jacobs. NeuroRestorative Kentucky, stated that the ABI Mary Hass, Advocate, Brain Injury Plans for changes in license plate waiver was established in 1998 to provide intense Association of America, stated that the waiver production rehabilitative services to adults with brain slots are not just a number but represent a person. John-Mark Hack, Commissioner, injuries with a goal to return to the community. The cabinet gives her inconsistent number of Department of Vehicle Regulations, Kentucky The ABI Long Term Care waiver was created in slots that are available. In 2016, additional ABI Transportation Cabinet (KYTC), gave an 2004 for long term supports to allow participants LTC slots were funded in the budget. People need overview of the Department of Vehicle to stay in the community. Services initiated close to be served. Currently, the cabinet is overriding Regulations and introduced his leadership team. to the date of injury result in a quicker return doctor recommendations. There is a need for Commissioner Hack stated that license to the community; however, progress can still more doctors with ABI clinical knowledge and plates have not been replaced in Kentucky since be made when appropriate levels of services are expertise. She does not understand why so many 2005. At each license plate renewal, a $0.50 provided at any time post injury. The current individuals are being denied ABI services. fee is assessed which goes the reflectorized process is inconsistent, arbitrary, and delays the In response to a question by Senator Raque plate fund, a restricted fund designated for the initiation of treatment. Clinical experts in brain Adams, Ms. Stahl stated there are enough ABI purpose of paying for the issuance of new license injury recommend the ABI waiver over the providers. Senator Raque Adams stated that she plates periodically, normally every five to seven Long Term Care waiver, but individuals, more would help facilitate conversations with Navigant years. Most of the manufacturers of license times than not, are placed on the Long Term to make the waivers better. plates warrant the reflectivity and the physical Care waiver waiting list. Over 260 Kentuckians In response to a question by Representative strength of the plate for five years. However, that are on the ABI Long Term Care waiver waiting Wuchner, Ms. Stahl stated the waiver application restricted fund has been routinely swept during list while there 160 ABI waiver slots available. does not explain the exemptions. Carewise budgeting processes and has hindered the Injured Kentuckians have to jump through Health determines the waiver denials. ability to re-plate. The results of not re-plating hoops at every level which delays necessary care Adjournment are very serious in that it compromises public and services and places burden and stress on There being no further business, the meeting safety, law enforcement, bridge tolling, and families and caregivers. was adjourned at 1:03 p.m. Kentucky’s public image. The production system The application process is as follows. that is used to make license plates is a relic of (1) An external case manager makes an INTERIM JOINT COMMITTEE ON the 1960’s. Special and personalized license application in the Medicaid Waiver Management TRANSPORTATION plates are excessively expensive and the standard Application (MWMA) system that includes Minutes of the 4th Meeting issue plates are outdated. There are 136 license a MAP 10 form completed by a physician that of the 2017 Interim plates being issued in the Commonwealth. This indicates the need for brain injury services. If September 5, 2017 means Road Fund dollars are being used to approved, capacity is reserved. Since May 22, Call to Order and Roll Call subsidize fund raising efforts for the 39 special 2017, applicants can appeal the decision. The 4th meeting of the Interim Joint organization plates for non-profits. Every dollar (2) A MAP 351 is completed by the external Committee on Transportation was held on spent on these plates takes away from the road case manager in MWMA to determine level of Tuesday, September 5, 2017, at 1:00 PM, in Room fund and not towards the construction and care. 149 of the Capitol Annex. Representative Marie maintenance of roads and bridges. (3) Once the applicant receives level of Rader, Chair, called the meeting to order, and the Commissioner Hack gave an overview of care, the external case manager must apply for secretary called the roll. The minutes from the the current process which starts in the county residential services. A small committee meets August 3, 2017 meeting were approved. clerk’s office as an order placed manually into once per month to review the applications. Present were: the mainframe system. The Division of Motor (4) An applicant waits for the prior Members: Senator Ernie Harris, Co-Chair; Vehicles licensing staff receives the orders authorization in the system. There needs to be Representative Marie Rader, Co-Chair; Senators and then an order is placed with the Kentucky consistency in the approval and review process Joe Bowen, Jared Carpenter, C.B. Embry Jr., Correctional Industries (KCI). KCI produces with an option for an expert in brain injury to Jimmy Higdon, Paul Hornback, Gerald A. the plates and the orders are picked up from the review appeals for level of care. The Residential Neal, Dorsey Ridley, Albert Robinson, Brandon Kentucky State Reformatory via box truck the Committee should meet bi-monthly to review Smith, Johnny Ray Turner, and Mike Wilson; KYTC rents from the Finance Cabinet The orders denials. There needs to be an appeals process for Representatives Lynn Bechler, Tim Couch, Ken are brought back to the KYTC in Frankfort and residential services. Fleming, Al Gentry, David Hale, Chris Harris, the plates are then mailed to the county clerk’s In response to a question by Senator Raque Toby Herald, Dennis Horlander, Kenny Imes, offices at a cost of around $135,000 annually. Adams, Ms. Stahl stated that exclusions for the James Kay, Suzanne Miles, Robby Mills, Rick Commissioner Hack stated the current process ABI waiver include progressive dementia or Rand, Steve Riggs, Sal Santoro, John Sims Jr, Jim is very inefficient. To sum up the process, plates other mentally impairing condition of a chronic Stewart III, Walker Thomas, and Scott Wells. are bought at retail, sold at wholesale and freight degenerative nature such as senile dementia, Guests: John-Mark Hack, Commissioner, is paid both ways. County clerks have to manage organic brain disorder, Alzheimer’s Disease, and Department of Vehicle Regulations, Kentucky an auditable transaction as well as manage, alcoholism or other addiction. Transportation Cabinet (KYTC), Heather Stout, store, and secure plate inventory which presents Pamela D, Individual with Brain Injury, Executive Director, Office of Information, them with daily challenges. Technology used to

28 2017 Interim LEGISLATIVE RECORD make the plates is out dated and uses obsolete a higher level of customer service. There will print on demand sticker system currently in equipment and workers don’t learn marketable be uniform costs on all plates that will result in place. The promotional and communication job skills. A detail review has been made of the savings. tasks for the license plates will not be as great as production and distribution model and the costs In response to a question by Senator the new driver’s licenses. The communication have been analyzed. Ridley, Commissioner Hack stated that infrared will be partnered with the county clerks and Alternative technology has been identified technology is what allows law enforcement with the Department of Revenue in the renewal that can greatly reduce inventory and storage to scan license plates and that the new plates notices that are sent out. requirements, while automating the plate will work with that technology. Comparable In response to questions by Representative ordering process. A print on demand solution technology is also used for bridge tolling and Fleming, Commissioner Hack stated that the will completely automate license plate ordering there are problems with the readability of our chart in his presentation shows KCI’s costs only and inventory management for county clerks and current license plates which have been on the and is not a true overall cost with KYTC’s costs put them and the citizens of the Commonwealth road for up to twelve years. In response to another added in. directly in contact with the license plate question, he stated that someone walking into a Update on the implementation of Driver’s vendor. There will be no capital investment county clerk’s office on the day that a plate expires license changes (HB 410) for this new model and vendors would be paid would have to take a standard issue plate until Commissioner Hack gave an overview of the on a transactional model. The benefits to the the plate that they would like could be ordered guiding principles and details of HB 410. There new plates will be improved visibility for law and come in unless they choose to risk driving are no changes in store until January 1, 2019 and enforcement, enhanced public safety, more with an expired plate. This new model is a step in that HB 410 will bring Kentucky into compliance reliable bridge tolling, elimination of physical the direction of the tag staying with the customer with federal law. The creation of a voluntary travel inventory and inventory handling costs, saving and not the vehicle. Plates will not be printed in ID will have stricter requirements and require of road fund dollars, saving of money on decals, each county clerk’s office; they will be printed more documentation but the travel ID will be and reducing inventory to manage and order. utilizing a vendor who will subcontract with KCI able to be used for federal identification which Automated inventory management software and that the new technology will teach valuable includes domestic air travel and military base would keep their inventory stocked without work skills to inmates. admission. HB 410 greatly improves security and having to place an order. The embossed features In response to a question by Senator reduces fraud by taking us from 120 issuance of our current plates don’t allow them to be Robinson, Commissioner Hack stated that he did authorities to a sole legal point of issuance with mailed, the new flat plate has a thermally applied not believe there would be a void in the budget the Kentucky Transportation Cabinet. KYTC decal on aluminum sheeting and is able to be for the prison system and could create some new will ensure that personal identity information is sent through the 1st class mail system. opportunities for KCI. stored only in state databases that are not shared The new process is state of the art and reduces In response to questions by Representative with other states or the federal government costs of specialized and personalized plates, has Bechler, Mr. Denny stated that, when someone except for the strictly limited purpose of driver an enhanced appearance, has greater visibility, moves into a new county, the person would come license fraud detection. License renewals will and gives the Commonwealth an enhanced into the clerk’s office and pay a fee of five dollars move from a four year to eight year renewal image. There will be a hybrid distribution model for a new plate. Commissioner Hack stated system. Circuit Court Clerks will photograph for County Clerks with them stocking and that the proposed system would eliminate the applicants, scan documents and transmit data issuing the two standard issue plates in their need for stickers. A new plate would be issued. to a single issuance point that meets the highest offices and the ability to order all other plates If a new plate is issued, then the plate number security standards. Customers will receive on demand and sent directly to the tax payer. would change. The savings mentioned do not temporary licenses which will be good for thirty All of this potentially expedites the development include any saving at the county clerk’s offices. days or until the new license comes in the mail and reduces the cost of the Kentucky Automated Those savings would need to be quantified and which usually takes five to ten days. Vehicle Information System (KAVIS). This measured after implementation. Commissioner Hack gave an update on solution presents the opportunity to have In response to questions by Representative the status of the new extension request being enhanced job skills for inmates at the Kentucky Fleming, Commissioner Hack stated that the cost submitted to the U.S. Department of Homeland State Reformatory providing them with more savings would equate to less than one percent of Security to allow us to continue using our marketable job skills. Any vendor selected would his departmental annual budget. Vendors would current licenses for a twelve month period. The be required to work (KCI) as a sub-contractor. bear all the transition costs and recover over twelve month extension will allow them to get Jason Denny, Anderson County Clerk, gave time through each transaction. almost all the way through the implementation an overview of an onsite visit to Indiana’s Bureau In response to questions by Representative process. A driver’s license vendor proposal has of Motor Vehicle facility and the production of Imes, Commissioner Hack stated that it been issued and the KYTC hopes to have them plates with that state’s vendor. Mr. Denny stated important that production continue through under contract by December. There has been that some of the biggest issues that the clerks face KCI and that the RFP would have a requirement ongoing and extensive communication with will be addressed in the new model. that the vendor would cover all of the capital many organizations that have a hand in or care Commissioner Hack stated that moving to expenditures and that there would be no direct about the driver’s license system. The KYTC is this new model will increase online renewals, up-front cost to the state. partnering with all 120 Circuit Court Clerks ensure all Kentucky plates will look great all the In response to questions by Representative to provide in person public presentations in time with a five year issuance cycle, position Imes, Commissioner Hack stated that the all counties by the end of 2018. A cost effective the KYTC to develop fleet plates, ensure plate issuance of a license plate would be every five comprehensive public information campaign production and fulfillment stays Kentucky based, years which would stay within the warranty will be developed to ensure all Kentucky drivers and combine with improvements that are being period for reflectivity of the plate. Renewal are aware of documents requirements and date made to the driver license system to modernize stickers would be used after the first plate is of license renewals. the essential government systems and provide issued and that it is a possibility to still use the In response to a question by Senator Ridley, THE KENTUCKY GENERAL ASSEMBLY 29 Commissioner Hack stated that an electronic deadlines results in loss of federal highway funding finding accessible spots. Commissioner Hack notification of driver’s license renewals is a goal which starts at a reduction of five percent which stated that SB 61 passed the Senate unanimously and that they looking at doing via e-mail or text would equate to about $35 million. Staff has been last session but never received a hearing in the message. reduced from seventeen employees in the CDL House. He stated that the administration is In response to a question by Representative section down to seven and it is a labor intensive committed to seeking its passage which would Thomas, Commissioner Hack stated that they process to ensure that all those documents are greatly protect the interests of genuinely disabled have been in communication with Ft. Campbell reviewed in a timely way. Technology has been Kentuckians. Kevin Mooney, Bullitt County and that the Department of Defense sets the implemented in order to elimate to some of Clerk stated on behalf of the County Clerk’s credentials for what they will allow to access the that labor intensiveness. Mrs. Stout stated that Association that they are aware of the difficulty base and that at this point they are not sure if they the MyCDL online portal is mobile friendly for of finding accessible parking spaces. He stated will adopt the voluntary travel ID. KYTC will both phones and tablets. Pictures can be taken of that it is a multi-faceted problem in that location work with them to give them all the information documents and uploaded directly to the portal. to healthcare is not as accessible in every county they need to make an informed decision. It allows staff to not have to re-enter data that the and KRS is the authority on what the county In response to questions by Representative system and makes it automated. The challenge clerk is allowed to do in attesting. Wells, Commissioner Hack stated that they are now is to get customers to use the system to In response to a question by Senator going to ask for the extension to carry over to reduce staff time. Commissioner Hack gave Higdon, Mr. Allgood stated that it should be the the implementation date of HB410 but they an overview of the metal commodities permit responsibility of the person with the disability have been told by the Federal Department implementation. Mrs. Stout stated that the to carry the placard regardless of the vehicle. of Homeland Security that the extensions implementation was quick due to the permitting He stated that in his opinion that this would cut that they grant are only going to be for twelve solution that was already in place was able to be down on the abuse by only allowing one placard months. It is anticipated that, in October 2018, modified. Commissioner Hack stated that they per individual. Mr. Moody stated that this would another extension will have to be filed until are exploring ways to maximize online vehicle be good from a financial standpoint but that full compliance with federal law is reached. It renewals. They are looking at streamlining the some exceptions should be considered. is not possible to move up the implementation process and trying to make it more cost effective. In response to questions by Senator Bowen, date because of the January 1, 2019 effective Mrs. Stout stated that growth could be spurned Commissioner Hack stated that the identification date of HB 410, which gives the KYTC time to with a reduction in the fees associated with the of disabled parking spots is the responsibility of implement the new procedures. online renewals. the property owners and the requirements are In Response to questions by Representative In response to a question by Representative under the Americans with Disabilities Act. Mr. Bechler, Commissioner Hack stated that the Wells, Mrs. Stout stated that they are looking at Allgood stated that he struggles with the striping ability to indicate organ donor status will still options to be able to draft from a bank account to and visibility of marked accessible spots on a remain on the driver’s license. He would need to reduce the fees that a customer would pay. daily basis. communicate with the Trust for Life to determine In response to a questions by Representative . if all are on the same page about allowing bone Hale, Commissioner Hack stated that federal In response to a question by Representative marrow donors to indicate on the licenses law requires exams for CDLs to be done by an Bechler, Mr. Allgood stated that federal law because there is limited real estate available on approved physician. requires one disabled spot for every twenty-five the physical license. Disabled parking placard issues regular parking spots. Technology Upgrades across the Commissioner Hack stated that the number With no further information to come before Department of disabled parking placard has exploded the committee, Co-Chair Rader adjourned the Heather Stout, Executive Director, since 2008. There are obvious fraud and abuse meeting at 2:50 P.M. Office of Information Technology, Kentucky issues which consist of multiple placards often Department of Transportation gave an update distributed to the same family and that some INTERIM JOINT COMMITTEE ON about technology improvements that are doctors may not use the same discretion in APPROPRIATIONS AND REVENUE being addressed throughout the Department authorizing disabled placards. There are also Budget Review Subcommittee on Economic of Transportation. The Kentucky Automated issues with a few county clerks issuing a large Development, Tourism, and Environmental Vehicle Information System (KAVIS) has number of placards by attesting to the disability Protection implemented the first module (disabled placards) without a medical form. The results of these Minutes of the 2nd Meeting in 2016 and bar code readers have been deployed problems are real and members of the disabled of the 2017 Interim in all counties. Point of sale and boat modules community of the Commonwealth with genuine August 24, 2017 are scheduled for implementation in 2018. Some disabilities oftentimes find themselves unable Call to Order and Roll Call modules will eventually be combined to speed to take advantage of the accessibility that is The 2nd meeting of the Budget Review up the project. Commissioner Hack stated that provided by disabled parking spaces. In 2008, the Subcommittee on Economic Development, currently KAVIS is operated on a main frame Commonwealth issued 32,000 placards and in Tourism, and Environmental Protection of the system that is obsolete and labor intensive and 2017 there will be over 300,000. David Allgood, Interim Joint Committee on Appropriations and moving to a .net system will enable a broader Director of Advocacy, Center for Accessible Revenue was held on Thursday, August 24, 2017, range of functionality, higher level of customer Living stated that he has daily struggles finding at 2:30 PM, in Room 131 of the Capitol Annex. service, and bring modernization to all vehicle an accessible parking spot for his side loading Representative Jill York, Chair, called the meeting registration tasks. Commissioner Hack shared van. He often must wait or give up and is to order, and the secretary called the roll. a thirty second video that gave an overview of precluded many times from finding an accessible Present were: the MyCDL Online Portal. He stated that they parking spot. Mr. Allgood stated there is definite Members: Senator Rick Girdler, Co-Chair; have a ten day deadline to review and process fraud occurring and that he looks forward to Representative Jill York, Co-Chair; Senators Perry CDL documents. Failure to comply with these legislation that will alleviate the problem with B. Clark, Denise Harper Angel, Stan Humphries,

30 2017 Interim LEGISLATIVE RECORD and Alice Forgy Kerr; Representatives Ruth Ann Commissioner Swisher stated that LMS stands Department of Criminal Justice Training; Palumbo, Steve Riggs, Bart Rowland, Steven for Litigation Management System. Deputy Secretary Jonathan Grate, Justice and Rudy, Diane St. Onge, Tommy Turner, and Ken In response to questions from Senator Clark, Public Safety Cabinet; J.D. Chaney and Bryanna Upchurch. Secretary Ramsey confirmed that Kentucky has Carroll, Kentucky League of Cities; Chief Wayne Guests: Katie Smith, Executive Director, the first nursing apprenticeship in the country. Turner, Kentucky Association of Chiefs of Office of Financial Services (OFS), Cabinet for The Labor Cabinet has learned that apprentices Police; Jason Rothermund, Fraternal Order of Economic Development (CED); Sarah Butler, coming from foster care aren’t used to much Police Bluegrass Lodge 4; Nicolai Jilek, Kentucky Director, Incentive Assistance Division, OFS, structure and the goal is to try and get to them Fraternal Order of Police; Sheriff Mike Jansen, CED; Robert Aldridge, Assistant Director, at younger ages to help them transition. Deputy Kentucky Sheriff’s Association; Liz Shepherd Compliance Division, OFS, CED; Derrick Secretary Nemes stated that there is work being and Maresa Fawns, Kentucky Justice Association; Ramsey, Secretary, Labor Cabinet; Mike Nemes, done to change regulations to allow apprentices Judy Taylor, Lexington-Fayette Urban-County Deputy Secretary, Labor Cabinet; Robert to use Kentucky Educational Excellence Government; and Sara Massey, Louisville Metro Swisher, Commissioner, Department of Workers’ Scholarship (KEES) money. KEES money is only Government. Claims, Labor Cabinet; and Ervin Dimeny, available for use in colleges. LRC Staff: Mark Mitchell, John Ryan, Joe Commissioner, Department of Workplace In response to a question from Pinczewski-Lee, and Cheryl Walters. Standards, Labor Cabinet. Representative St. Onge, Deputy Secretary Approval of Minutes LRC Staff: Seth Dawson, Greg Troutman, Nemes noted that apprentices often times go on A motion to approve the minutes of the and Benjamin Thompson. to pursue four year degrees. July 26, 2017, meeting was seconded and passed Overview of the Cabinet for Economic In response to a question from Chair without objection. Development York, Commissioner Dimeny stated that the Opening Remarks and Welcome Ms. Smith provided a brief update on the Department of Workplace Standards is unable to Justice and Public Safety Cabinet Deputy budget of the Cabinet for Economic Development meet the demand from companies for additional Secretary Jonathan Grate welcomed the (CED). safety training and education. committees to the Department of Criminal In response to a question from There being no further business before the Justice Training (DOCJT) and introduced Representative Palumbo, Ms. Smith stated that subcommittee, the meeting was adjourned at Commissioner Mark Filburn of DOCJT. CED ended operations in Chile around six to 4:15 PM. Commissioner Filburn that DOCJT’s eight years ago. mission is to keep law enforcement officers In response to questions from Chair York, INTERIM JOINT COMMITTEE ON alive. Service is what DOCJT is about as well Ms. Smith stated that the three cash-balance STATE GOVERNMENT as preparing officers to protect the citizens of pools, the High-Tech Investment Pool, the Minutes of the 3rd Meeting Kentucky with dignity and respect. Eastern Kentucky Economic Development Finance of the 2017 Interim Kentucky University (EKU) President Michael Authority (KEDFA) Loan and Grant Pool, and August 23, 2017 T. Benson welcomed the committees and said the Economic Development Bond Pool were Call to Order and Roll Call that EKU likes to think of its school as a school lumped together into one cash pool two budget The third meeting of the Interim Joint of first responders. EKU has more students from cycles ago. The available balance for that joint Committee on State Government was held on Kentucky than any other school in Kentucky. He pool is roughly $40 million. There is no specific Wednesday, August 23, 2017, at 10:00 AM, in thanked the members for their role in approving breakdown for what funds are available for each of Richmond, Kentucky, at the Department of the capital construction projects at EKU. the three programs. CED has attempted to make Criminal Justice Training on the campus of Travis Tennill, DOCJT, discussed his the application for small business tax incentives Eastern Kentucky University. The meeting was a personal experience with having to use his as streamlined and simple as possible. For the joint meeting with the Interim Joint Committee weapon on a call and the emotionally-charged small business tax incentive program, jobs have on Local Government. Senator Joe Bowen, Chair, consequences that ensued. He discussed the to have already been created. Each application is called the meeting to order, and the secretary Kentucky Post-Critical Incident Seminar reviewed within a few days and applications are called the roll. (KYPCIS), which is a three-day seminar modeled approved in KEDFA meetings, which take place Present were: after highly successful programs developed by the last Thursday of each month. Members: Senator Joe Bowen, Co-Chair; the FBI and South Carolina. Law enforcement In response to a question from Representatives Jerry T. Miller, Co-Chair, and professionals and their significant others are Representative St. Onge, Ms. Smith noted that Kenny Imes, Co-Chair; Senators Ralph Alvarado, able to openly tell their stories, hold small-group there is no specific percentage of cash-pool Denise Harper Angel, Morgan McGarvey, discussions, meet one-on-one with mental- money that goes to high-tech investments. Albert Robinson, Dan “Malano” Seum, and health professionals and learn to identify signs In response to a question from Chair Damon Thayer; Representatives Lynn Bechler, of stress and methods to cope. He asked for the York, Ms. Smith stated that participants in the John Carney, Will Coursey, Joseph M. Fischer, General Assembly’s support of the program. Kentucky Business Investment program self- Derrick Graham, Richard Heath, Dan Johnson, Police Department Utilization of Body report on how much money has been invested DJ Johnson, Mary Lou Marzian, Reginald Meeks, Cameras and how many jobs have been created. Phil Moffett, Tim Moore, C. Wesley Morgan, Representative Robert Benvenuti, who Overview of the Labor Cabinet and Jason Nemes, Sannie Overly, Jason Petrie, Rick sponsored 2017 HB 416, relating to the disclosure Update on Apprenticeship Program Rand, Jody Richards, Bart Rowland, Attica Scott, of body-worn camera recordings, said that there Secretary Ramsey provided a brief overview Tommy Turner, and Ken Upchurch. is no law in Kentucky that mandates the use of on the budget of the Labor Cabinet, as well as Guests: Representative Robert Benvenuti, body cameras by law enforcement, nor should an update on the status of the Commonwealth’s 88th House District; President Michael T. Benson, there be one. It should be left up to the individual apprenticeship program. Eastern Kentucky University; Commissioner local government. However, with the use, there In response to a question from Chair York, Mark Filburn, Frank Kubala, and Travis Tennill, should be a legislative construct that allows THE KENTUCKY GENERAL ASSEMBLY 31 officers to use them efficiently and effectively, or the releasing video that shows the death or members consider the case of small departments else body camera use will become less prevalent. serious injury of an officer or citizen, video shot concerning the costs associated with open Privacy rights should be protected for those in private homes or in healthcare facilities, and records requests in crafting future legislation. involved, whether it be the officer, victim, or video that reveals law enforcement surveillance First and foremost is protecting the privacy of children. Body cameras can be very helpful or other police tactics that could ultimately citizens and officers. In certain instances, police for training, evidentiary, and accountability compromise the safety of law enforcement and tactics do not need to be released. purposes. A situation should not be created the public. The use of videos on social media can Mr. Chaney added that the KLC is willing where officers are being required for hours to serve to “revictimize” victims and traumatize to work with law enforcement, stakeholders, and edit or redact footage, rather than engaging in first responders. The use of a disclaimer that the legislature on model use policies regarding law enforcement. would be posted on the video should be body worn cameras. He reiterated the language J.D. Chaney, Deputy Executive Director considered, reminding the public that body of HB 416. of the Kentucky League of Cities (KLC), said worn camera video is one angle that typically In response to a question from Senator that Kentucky is the last state to deal with a fails to provide the full context of a situation. It is Seum, Chief Turner said body cameras are law for disclosure of recordings from open very easy, yet blatantly unfair ,for the public, the available through Homeland Security from records. KLC survey other state laws. Florida news media, the courts, and outside groups to programs within DOCJT. Legislation has to be exempts disclosure of recordings from open assume that what they are seeing on the news is implemented first to regulate the usage of the records if taken in private resident of health or the whole picture. That is rarely, if ever, the case, cameras before they are placed in the field. social services office. Florida law also exempts and without that knowledge, body worn camera In response to another question from recordings from disclosure if a person has a video can be misunderstood, misrepresented, Senator Seum, Mr. Chaney said the legislation reasonable expectation of privacy. Indiana and exploited. does not address how long the body camera permits inspections without copies to limited Officer Jason Rothermund, president of recordings are held but that the Kentucky class of requestors. Louisiana exempts disclosure FOP Bluegrass Lodge 4 based out of Lexington, Department for Libraries and Archives (KDLA) without a court order if the law enforcement said that, as with any new piece of technology, dictates the retention times of those recordings. agency determines the recording “violates an practices, policies, and even laws must be Representative Meredith referred members to individual’s reasonable expectation of privacy.” formed, evaluated, and occasionally revised a retention schedule from KDLA which was Kansas exempts all recordings from police body to ensure that the use of the new technology included in their folders. He also referred to a cameras as criminal investigation records. North remains advantageous. Lexington’s police study on body camera usage conducted by the Carolina exempts from disclosure except for department, over the last year, has implemented Southern Legislative Conference (SLC). persons depicted. The law requires a court order body worn cameras with officers in uniformed Representative Rothenburger commented for members of the public to gain access. South operations. Since the implementation of the that there are other branches of public safety that Carolina exempts from disclosure under the cameras, the Lexington police department will be affected such as fire service and urban state’s Freedom of Information laws, but specifies has received over 124 open records request search and rescue. Representative Benvenuti several individuals who may obtain copies if they for footage. To attempt to keep up with the stated that issue was addressed in the bill. have a legal interest in obtaining them. demand for footage, the department has hired In response to a question from Campbell County Sheriff Mike Jansen, two extra civilian personnel. Not only are the Representative Scott, Chief Turner stated that representing the Kentucky Sheriff’s Association, requests time consuming, but the department’s the software has limitations to prevent copying said that, for small law enforcement agencies, personnel must rely on current open records or tampering with footage evidence. Concerning purchasing body worn cameras would be a laws that do not specifically account for the use cameras that are off, or pointed in the wrong financial hardship. This too would create possible of body worn cameras. The application of the direction, there is a learning curve, but officers cuts for other equipment in the larger agencies’ current laws remains vague when attempting to are subject to discipline when issues repeat budgets. Also, storage space would have to be address concerns of the release of footage, some themselves. Continual recording of an officer’s purchased for the videos, depending on how of which may be sensitive to law enforcement day has privacy issues, but present policy is to long the videos needed to be stored, which is 30 investigations, or operations. In order to support have the camera on when interacting with a days at present. In any agency there must be one law enforcement agencies around the state, it is private citizen. person, at least, to maintain, edit. and secure all imperative that the legislature pass legislation In response to a question from Representative video for its integrity. The cost of the training that directly addresses the issue of the public Flood, Commissioner Filburn stated that no one for each officer in using the body worn cameras release of body worn camera footage. In an effort pushed for the KYPCIS previously. DOCJT is would either be addressed at the DOCJT Law to support agencies around the state, as well as pushing for it now on a state level. Enforcement Academy or in-house for each legislators around the state, Bluegrass Lodge 4 Representative Moore commented that the individual agency. offers its support for HB 416. proper balance has to be found in educating the The Kentucky Sheriff’s Association’s position Bellevue Police Chief Wayne Turner, public and protecting officers and the public. He would be not to mandate through legislation that representing the Kentucky Association of Chiefs believes the Veterans, Military Affairs, and Public all agencies must have body worn cameras. This of Police, said that over the years he has dealt Protection Committee would be supportive of would seriously cause an unfunded mandate with many open records requests. Recently all 30 the KYPCIS. upon the many agencies that do not have access agencies received open records requests from a Commissioner Filburn noted that in to funds for implementation. news agency for all body camera videos for the training and other situations, certain tactics are Officer Nicolai Jilek, representing the past 5 years. They are still figuring out how to best demonstrated and could be recorded on body Kentucky Fraternal Order of Police (FOP), said comply with the request as the request itself was cameras and be subject to open records requests. that great care must be taken when releasing not specific. Libraries and Archives’ guidance Having these tactics available for viewing by body worn camera footage to the news media controls the retention of video for 30 days unless criminals or terrorists would not be desirable. and others. There must be restrictions against the video is part of a legal action. He asked that Liz Shepherd, with the Kentucky Justice

32 2017 Interim LEGISLATIVE RECORD Association, said that she had concerns about said DOCJT plans to address the possibility of of the July 26, 2017 meeting were approved. HB 416, which requires that any person extending POPS certification to the end of Opening Remarks and Welcome receiving the body camera footage could not academy time in a cleanup bill. Justice and Public Safety Cabinet Deputy disclose or duplicate the recording without first Representative Meredith announced that Secretary Jonathan Grate welcomed the providing notice to each person whose image is there would be a tour of DOCJT’s facilities at the committees to the Department of Criminal depicted. This can be problematic. For example, conclusion of the meeting. He also announced Justice Training (DOCJT) and introduced attorneys frequently obtain body camera footage that the next meeting of the committees will be Commissioner Mark Filburn of DOCJT. of an accident scene as part of investigating how September 27. Commissioner Filburn that DOCJT’s a collision occurred. It would be impossible There being no further business, the meeting mission is to keep law enforcement officers sometimes to locate all people in the footage and was adjourned at 11:45 a.m. alive. Service is what DOCJT is about as well give them notice before sharing the footage with as preparing officers to protect the citizens of an accident reconstructionist or using it in court. INTERIM JOINT COMMITTEE ON Kentucky with dignity and respect. Eastern In response to a question from LOCAL GOVERNMENT Kentucky University (EKU) President Michael Representative Nemes, Ms. Shepherd said that it Minutes of the 3rd Meeting T. Benson welcomed the committees and said may be helpful if the language of the bill allowed of the 2017 Interim that EKU likes to think of its school as a school disclosure of the video to their agents or people August 23, 2017 of first responders. EKU has more students from who are working with them in the litigation Call to Order and Roll Call Kentucky than any other school in Kentucky. He without having to locate every person depicted The third meeting of the Interim Joint thanked the members for their role in approving in the video. There is no civil litigation without Committee on Local Government was held the capital construction projects at EKU. an adequate investigation. on Wednesday, August 23, 2017, at 10:00 AM, Travis Tennill, DOCJT, discussed his Representative Riggs suggested contacting in Room 305 of the Funderburk Building at personal experience with having to use his crime victims’ organizations on how HB 416 the Department of Criminal Justice Training weapon on a call and the emotionally-charged would affect them. Representative Benvenuti on Eastern Kentucky University’s campus in consequences that ensued. He discussed the stated he has had some of those discussions Richmond, Kentucky. The Committee met Kentucky Post-Critical Incident Seminar and that balancing victims’ considerations with jointly with the Interim Joint Committee on (KYPCIS), which is a three-day seminar modeled making the video more available is important. State Government. Representative Michael after highly successful programs developed by In response to a question from Meredith, Chair, called the meeting to order, and the FBI and South Carolina. Law enforcement Representative Riggs, Commissioner Filburn the secretary called the roll. professionals and their significant others are said the DOCJT’s KYPCIS program is open to Present were: able to openly tell their stories, hold small-group all law enforcement agencies. Members: Senator Joe Bowen, Co-Chair; discussions, meet one-on-one with mental- In response to a question from Senator Representative Michael Meredith, Co-Chair; health professionals and learn to identify signs McGarvey, Representative Benvenuti said it Senators Ralph Alvarado, Denise Harper of stress and methods to cope. He asked for the would be a huge cost to mandate that body Angel, Morgan McGarvey, Albert Robinson, General Assembly’s support of the program. cameras be worn. No state mandates it. Dan “Malano” Seum, and Damon Thayer; Police Department Utilization of Body Representative Miller suggested that there Representatives Danny Bentley, George Brown Cameras be a cost recovery element in the bill for fulfilling Jr, Ken Fleming, Kelly Flood, DJ Johnson, Kim Representative Robert Benvenuti, who open records requests. Representative Benvenuti King, Adam Koenig, Jerry T. Miller, Phil Moffett, sponsored 2017 HB 416, relating to the disclosure said that was an excellent point. Steve Riggs, Rob Rothenburger, Attica Scott, of body-worn camera recordings, said that there Representative Dan Johnson thanked the Arnold Simpson, and John Sims Jr. is no law in Kentucky that mandates the use of sponsor of the bill for cost considerations in Guests: Representative Robert Benvenuti, body cameras by law enforcement, nor should the bill’s language and noted the importance of 88th House District; President Michael T. Benson, there be one. It should be left up to the individual having available the type of help that KYPCIS Eastern Kentucky University; Commissioner local government. However, with the use, there provides. Mark Filburn, Frank Kubala, and Travis Tennill, should be a legislative construct that allows In response to a question from Department of Criminal Justice Training; officers to use them efficiently and effectively, or Representative Imes, Commissioner Filburn said Deputy Secretary Jonathan Grate, Justice and else body camera use will become less prevalent. DOCJT has increased the number of satellite Public Safety Cabinet; J.D. Chaney and Bryanna Privacy rights should be protected for those facilities for in-service training in the smaller Carroll, Kentucky League of Cities; Chief Wayne involved, whether it be the officer, victim, or communities whose officers cannot make the Turner, Kentucky Association of Chiefs of children. Body cameras can be very helpful trip to Frankfort, but having a central location Police; Jason Rothermund, Fraternal Order of for training, evidentiary, and accountability for training is still important. Police Bluegrass Lodge 4; Nicolai Jilek, Kentucky purposes. A situation should not be created Representative Brown commented that there Fraternal Order of Police; Sheriff Mike Jansen, where officers are being required for hours to is an appreciation for law enforcement officials Kentucky Sheriff’s Association; Liz Shepherd edit or redact footage, rather than engaging in and their professionalism. Do not lose sight of and Maresa Fawns, Kentucky Justice Association; law enforcement. who is supposed to be served and protected as Judy Taylor, Lexington-Fayette Urban-County J.D. Chaney, Deputy Executive Director the citizens are the ones who confer the power Government; and Sara Massey, Louisville Metro of the Kentucky League of Cities (KLC), said to protect and serve to the police. Commissioner Government. that Kentucky is the last state to deal with a Filburn said that officers are trained to respect LRC Staff: Mark Mitchell, John Ryan, Joe law for disclosure of recordings from open proper use of force. They are trained to protect Pinczewski-Lee, and Cheryl Walters. records. KLC survey other state laws. Florida the Commonwealth with dignity and respect. Approval of Minutes exempts disclosure of recordings from open In response to a question from Upon the motion of Representative Johnson, records if taken in private resident of health or Representative Meredith, Commissioner Filburn seconded by Representative Riggs, the minutes social services office. Florida law also exempts THE KENTUCKY GENERAL ASSEMBLY 33 recordings from disclosure if a person has a video can be misunderstood, misrepresented, Senator Seum, Mr. Chaney said the legislation reasonable expectation of privacy. Indiana and exploited. does not address how long the body camera permits inspections without copies to limited Officer Jason Rothermund, president of recordings are held but that the Kentucky class of requestors. Louisiana exempts disclosure FOP Bluegrass Lodge 4 based out of Lexington, Department for Libraries and Archives (KDLA) without a court order if the law enforcement said that, as with any new piece of technology, dictates the retention times of those recordings. agency determines the recording “violates an practices, policies, and even laws must be Representative Meredith referred members to individual’s reasonable expectation of privacy.” formed, evaluated, and occasionally revised a retention schedule from KDLA which was Kansas exempts all recordings from police body to ensure that the use of the new technology included in their folders. He also referred to a cameras as criminal investigation records. North remains advantageous. Lexington’s police study on body camera usage conducted by the Carolina exempts from disclosure except for department, over the last year, has implemented Southern Legislative Conference (SLC). persons depicted. The law requires a court order body worn cameras with officers in uniformed Representative Rothenburger commented for members of the public to gain access. South operations. Since the implementation of the that there are other branches of public safety that Carolina exempts from disclosure under the cameras, the Lexington police department will be affected such as fire service and urban state’s Freedom of Information laws, but specifies has received over 124 open records request search and rescue. Representative Benvenuti several individuals who may obtain copies if they for footage. To attempt to keep up with the stated that issue was addressed in the bill. have a legal interest in obtaining them. demand for footage, the department has hired In response to a question from Campbell County Sheriff Mike Jansen, two extra civilian personnel. Not only are the Representative Scott, Chief Turner stated that representing the Kentucky Sheriff’s Association, requests time consuming, but the department’s the software has limitations to prevent copying said that, for small law enforcement agencies, personnel must rely on current open records or tampering with footage evidence. Concerning purchasing body worn cameras would be a laws that do not specifically account for the use cameras that are off, or pointed in the wrong financial hardship. This too would create possible of body worn cameras. The application of the direction, there is a learning curve, but officers cuts for other equipment in the larger agencies’ current laws remains vague when attempting to are subject to discipline when issues repeat budgets. Also, storage space would have to be address concerns of the release of footage, some themselves. Continual recording of an officer’s purchased for the videos, depending on how of which may be sensitive to law enforcement day has privacy issues, but present policy is to long the videos needed to be stored, which is 30 investigations, or operations. In order to support have the camera on when interacting with a days at present. In any agency there must be one law enforcement agencies around the state, it is private citizen. person, at least, to maintain, edit. and secure all imperative that the legislature pass legislation In response to a question from Representative video for its integrity. The cost of the training that directly addresses the issue of the public Flood, Commissioner Filburn stated that no one for each officer in using the body worn cameras release of body worn camera footage. In an effort pushed for the KYPCIS previously. DOCJT is would either be addressed at the DOCJT Law to support agencies around the state, as well as pushing for it now on a state level. Enforcement Academy or in-house for each legislators around the state, Bluegrass Lodge 4 Representative Moore commented that the individual agency. offers its support for HB 416. proper balance has to be found in educating the The Kentucky Sheriff’s Association’s position Bellevue Police Chief Wayne Turner, public and protecting officers and the public. He would be not to mandate through legislation that representing the Kentucky Association of Chiefs believes the Veterans, Military Affairs, and Public all agencies must have body worn cameras. This of Police, said that over the years he has dealt Protection Committee would be supportive of would seriously cause an unfunded mandate with many open records requests. Recently all 30 the KYPCIS. upon the many agencies that do not have access agencies received open records requests from a Commissioner Filburn noted that in to funds for implementation. news agency for all body camera videos for the training and other situations, certain tactics are Officer Nicolai Jilek, representing the past 5 years. They are still figuring out how to best demonstrated and could be recorded on body Kentucky Fraternal Order of Police (FOP), said comply with the request as the request itself was cameras and be subject to open records requests. that great care must be taken when releasing not specific. Libraries and Archives’ guidance Having these tactics available for viewing by body worn camera footage to the news media controls the retention of video for 30 days unless criminals or terrorists would not be desirable. and others. There must be restrictions against the video is part of a legal action. He asked that Liz Shepherd, with the Kentucky Justice the releasing video that shows the death or members consider the case of small departments Association, said that she had concerns about serious injury of an officer or citizen, video shot concerning the costs associated with open HB 416, which requires that any person in private homes or in healthcare facilities, and records requests in crafting future legislation. receiving the body camera footage could not video that reveals law enforcement surveillance First and foremost is protecting the privacy of disclose or duplicate the recording without first or other police tactics that could ultimately citizens and officers. In certain instances, police providing notice to each person whose image is compromise the safety of law enforcement and tactics do not need to be released. depicted. This can be problematic. For example, the public. The use of videos on social media can Mr. Chaney added that the KLC is willing attorneys frequently obtain body camera footage serve to “revictimize” victims and traumatize to work with law enforcement, stakeholders, and of an accident scene as part of investigating how first responders. The use of a disclaimer that the legislature on model use policies regarding a collision occurred. It would be impossible would be posted on the video should be body worn cameras. He reiterated the language sometimes to locate all people in the footage and considered, reminding the public that body of HB 416. give them notice before sharing the footage with worn camera video is one angle that typically In response to a question from Senator an accident reconstructionist or using it in court. fails to provide the full context of a situation. It is Seum, Chief Turner said body cameras are In response to a question from very easy, yet blatantly unfair ,for the public, the available through Homeland Security from Representative Nemes, Ms. Shepherd said that it news media, the courts, and outside groups to programs within DOCJT. Legislation has to be may be helpful if the language of the bill allowed assume that what they are seeing on the news is implemented first to regulate the usage of the disclosure of the video to their agents or people the whole picture. That is rarely, if ever, the case, cameras before they are placed in the field. who are working with them in the litigation and without that knowledge, body worn camera In response to another question from without having to locate every person depicted

34 2017 Interim LEGISLATIVE RECORD in the video. There is no civil litigation without Committee on Banking and Insurance was held community banks. an adequate investigation. on Tuesday, August 22, 2017, at 10:00 AM, in Representative Meredith said flexibility in Representative Riggs suggested contacting Room 149 of the Capitol Annex. Senator Tom small business lending by community banks is crime victims’ organizations on how HB 416 Buford, Chair, called the meeting to order, and important for their success. would affect them. Representative Benvenuti the secretary called the roll. Responding to Senator Parrett’s question stated he has had some of those discussions Present were: Commissioner Vice said Dodd-Frank compliance and that balancing victims’ considerations with Members: Senator Tom Buford, Co-Chair; regulations have resulted in significant financial making the video more available is important. Representative Bart Rowland, Co-Chair; Senators and opportunity costs to banks. In response to a question from Julie Raque Adams, Rick Girdler, Christian In response to Representative DuPlessis’s Representative Riggs, Commissioner Filburn McDaniel, Morgan McGarvey, Dennis Parrett, question Commissioner Vice said barriers said the DOCJT’s KYPCIS program is open to Dorsey Ridley, Albert Robinson, John Schickel, including Dodd-Frank regulations, net interest all law enforcement agencies. and Dan “Malano” Seum; Representatives Will margin reductions since the 2008 recession, and In response to a question from Senator Coursey, Jim DuPlessis, Joseph M. Fischer, higher capital requirements have significantly McGarvey, Representative Benvenuti said it Jim Gooch Jr., Jeff Greer, Dennis Keene, Adam reduced the number of new community banks. would be a huge cost to mandate that body Koenig, Chad McCoy, Michael Meredith, Steve Credit unions have been more successful because cameras be worn. No state mandates it. Riggs, Scott Wells, and Addia Wuchner. they are membership based and are focus on Representative Miller suggested that there Guests: Charles Vice, Commissioner, consumer-oriented lending. be a cost recovery element in the bill for fulfilling Kentucky Department of Financial Institutions; Senator Ridley asked that KDFI provide open records requests. Representative Benvenuti Tom Stephens, Secretary, Kentucky Personnel the number of national banks and federal credit said that was an excellent point. Cabinet; Jenny Goins, Commissioner, Kentucky unions in Kentucky. Representative Dan Johnson thanked the Department of Employee Insurance; and Joel In response to Senator Ridley’s question, sponsor of the bill for cost considerations in Allumbaugh, Foundation for Government Commissioner Vice said most nondepository the bill’s language and noted the importance of Accountability. lending institutions that provide “quick” loans having available the type of help that KYPCIS LRC Staff: Sean Donaldson, Jessica Sharpe, have an “originate-to-sell” business model to sell provides. and Dawn Johnson. either to a financial institution or a company that In response to a question from Minutes packages collateralized mortgage obligations and Representative Imes, Commissioner Filburn said A motion by Senator Parrett and second mortgage-backed-securities for sale to investors. DOCJT has increased the number of satellite by Representative Wells to approve the June 27, Responding to Senator Seum’s question facilities for in-service training in the smaller 2017, minutes carried by voice vote. Commissioner Vice said in the loan market, communities whose officers cannot make the Update on State of Kentucky Financial financial institutions chose their level of risk. trip to Frankfort, but having a central location Industries Healthcare Transparency in Kentucky for training is still important. Commissioner Charles Vice discussed Secretary Tom Stephens of the Kentucky Representative Brown commented that there proposed legislation for the 2018 legislative Personnel Cabinet said the Kentucky employee is an appreciation for law enforcement officials session relating to the Kentucky Department health plan, which serves over 265,000 members, and their professionalism. Do not lose sight of of Financial Institutions (KDFI). The first, a has been largely successful. He said it is a great who is supposed to be served and protected as consumer loan act, is a modernization bill that health insurance plan that is a workforce the citizens are the ones who confer the power will allow KDFI the same regulatory tools used retaining tool. to protect and serve to the police. Commissioner for other industries. Currently, the primary Commissioner Jenny Goins of the Filburn said that officers are trained to respect regulatory tool is license revocation, a worst Department of Employee Insurance explained proper use of force. They are trained to protect case scenario. The second, mortgage services the Vitals SmartShopper program. The programs the Commonwealth with dignity and respect. legislation, will establish a de minimis for allows members to choose low cost, high value In response to a question from registration of companies that service limited healthcare options. Members receive incentive Representative Meredith, Commissioner Filburn numbers of loans in Kentucky. checks for choosing low cost healthcare options. said DOCJT plans to address the possibility of Commissioner Vice provided an update Since 2013, the program has saved the state $10 extending POPS certification to the end of on trends in the banking industry. A significant million. Employees have received $1.5 million in academy time in a cleanup bill. concentration of financial power into a few incentives. Commissioner Goins reviewed the Representative Meredith announced that financial institutions. He spoke on the condition demographics of participants and gave examples there would be a tour of DOCJT’s facilities at the of state banks and how they perform compared to of cost savings. She noted the importance of conclusion of the meeting. He also announced surrounding states and nationally. Commissioner marketing the Vitals SmartShopper program that the next meeting of the committees will be Vice reported on recent economic investments during open enrollment, at benefit fairs, and in September 27. and job creation in Kentucky and spoke on targeted campaigns. There being no further business, the meeting current trends in the state’s housing market. Responding to Chairman Buford’s questions, was adjourned at 11:45 a.m. Commissioner Vice outlined the topics of Commissioner Goins said a participant can call discussion for the upcoming 2017 Community or visit the Vitals SmartShopper website to find INTERIM JOINT COMMITTEE ON Banking in the 21st Century Research and Policy area healthcare providers. The program does not Conference. make exceptions for out-of-network providers. It BANKING AND INSURANCE Minutes of the 2nd Meeting Commissioner Vice said that KDFI has is most likely that in-network providers would be of the 2017 Interim recently implemented a red tape reduction the least expensive because they have negotiated August 22, 2017 initiative and advocated nationally for right- a lower rate with Anthem. Call to Order and Roll Call sized regulation, qualified mortgage status for In response to Senator Ridley’s questions The 2nd meeting of the Interim Joint portfolio lending, and simplified capital rules for Commissioner Goins said that even though THE KENTUCKY GENERAL ASSEMBLY 35 Anthem has negotiated service provider rates, challenges to move forward are the logistics Health and Welfare and Family Services, during members can cost save when comparing hospitals on the insurers’ side and roadblocks by larger its meetings of June 21, July 17, and August 16, to free-standing facilities, for example. Secretary entities in making healthcare more affordable. 2017. Stephens said communicating with participants Lower cost healthcare does not correlate to Committee review of the administrative and would-be participants is the single biggest substandard healthcare. regulations by the Interim Joint Committee challenge for the agency. It can be difficult to get Chairman Buford said that healthcare is on Natural Resources and Energy during its the message out to everyone. over 50 percent of the pension cost for state meetings of June 1, July 6, and August 3, 2017. Joel Allumbaugh, Senior Fellow, Foundation employees. Responding to Chairman Buford’s Committee review of the administrative for Government Accountability (FGA), a Florida- question, Commissioner Goins said she did regulations by the Interim Joint Committee based nonprofit think tank on healthcare and not have enough information to comment on on Economic Development and Workforce welfare reform initiatives, commended Kentucky whether healthcare is part of the state employee Investment during its meeting of August 17, on its state employee health plan. There is a large inviolable contract. 2017. variance in healthcare costs and, increasingly, There being no further business, the meeting Committee review of the administrative consumers are paying a significant amount of adjourned at 11:37 AM. regulations by the Interim Joint Committee on health care expenditures out-of-pocket with Education during its meeting of August 28, 2017. much higher deductibles. This is most common LEGISLATIVE RESEARCH Committee Review of Executive Order for those who have health insurance through COMMISSION 2017-269 by the Interim Joint Committee on small employers and the individual market. Minutes of the 556th Meeting Health and Welfare and Family Services during Provider consolidation is driving referral September 6, 2017 its meeting of June 21, 2017. patterns. In its study, FGA concluded that three Call to Order and Roll Call Committee Review of FFY 2018-2019 things are needed: actionable transparency at The 556th meeting of the Legislative Community Services Block Grant Application the consumer level, incentives for enrollees, and Research Commission was held on Wednesday, by the Interim Joint Committee on Health and out-of-network patient choice. Mr. Allumbaugh September 6, 2017, at 12:00 PM, in Room 125 of Welfare and Family Services during its meeting reviewed recent reforms instituted by other the Capitol Annex. Representative Jeff Hoover, of June 21, 2017. states. Chair, called the meeting to order, and the Committee Review of FFY 2018 Social Mr. Allumbaugh said it was necessary secretary called the roll. Services Block Grant Application by the Interim for Dr. Flaspohler to leave before making his Present were: Joint Committee on Health and Welfare and presentation. Members: Senator Robert Stivers II, Co- Family Services during its meeting of June 21, Responding to Representative DuPlessis’s Chair; Representative Jeff Hoover, Co-Chair; 2017. question, Dr. Allumbaugh said Vitals Senators Jimmy Higdon, Ray S. Jones II, Dennis Committee Review of FFY 2018 Low SmartShopper has been studying how to apply Parrett, Dorsey Ridley, Dan “Malano” Seum, and Income Housing Energy Assistance Program the incentive model to the Medicaid program. Dr. Damon Thayer; Representatives Rocky Adkins, Block Grant Application by the Interim Joint Allumbaugh thought this could be implemented. Kevin D. Bratcher, Dennis Keene, David Meade, Committee on Natural Resources and Energy In response to Representative McCoy’s David Osborne, and Wilson Stone. during its meeting of July 6, 2017. questions regarding transparency, Mr. LRC Staff: David Byerman and Christy Committee Review of Executive Order Allumbaugh said pharmaceutical costs have Glass. 2017-433 by the Interim Joint Committee on been a point of interest recently and should be There being a quorum, Representative Jeff Education during its meeting of August 28, 2017. addressed, given that a large portion of health Hoover called the meeting to order. Committee Review of Executive Order care spending is on pharmaceuticals. Hospitals Speaker Hoover called for a motion to 2017-434 by the Interim Joint Committee on should have the ability to provide enough approve the minutes of the June 7, 2017 meeting; Education during its meeting of August 28, 2017. information on all costs relating to a medical accept and refer as indicated items A. through Committee Review of Executive Order procedure for consumers to make informed N. under Staff and Committee Reports; refer 2017-496 by the Interim Joint Committee on choices. prefiled bills and administrative regulations as Education during its meeting of August 28, 2017. Responding to the Chairman, Mr. indicated and approve items A. through I. under NEW BUSINESS Allumbaugh said surprise billing has not been New Business, and accept and refer as indicated Referral of prefiled bills to the following studied by the FGA but it will be. Other states items 1. through 20. under Communications. committees: BR 15 (an act relating to taxation) have expressed concern as well. A motion was made by Senator Thayer and BR 102 (an act relating to the natural In response to Representative Riggs’s and seconded by Representative Bratcher. resources severance and processing tax) to questions Commissioner Goins said last year Speaker Hoover asked for discussion. Seeing Appropriations and Revenue; BR 37 (an $246,000 in incentives was paid to members. none, a roll call vote was taken, and the motion act relating to area development districts and Representative Riggs asked for the key incentive passed unanimously. The following items were declaring an emergency) and BR 97 (an act ratio. The commissioner said that members also approved, accepted, or referred. relating to criminal histories of job applicants) experience out-of-pocket cost savings as well STAFF AND COMMITTEE REPORTS to Economic Development and Workforce as the incentive program. Representative Riggs Information requests since June 1, 2017. Investment; BR 91 (an act relating to suicide suggested a set incentives ratio for maximum Committee Activity Reports since June 1, prevention training) to Education; BR 14 (an act benefit. 2017. relating to the reporting of child abuse, neglect, In response to Representative Wuchner, Report of the Administrative Regulation or dependency) and BR 173 (an act relating Commissioner Goins said increased participation Review Subcommittee meetings of June 13, July to public assistance) to Health and Welfare rates are a direct result of increased marketing. 11, and August 14, 2017. and Family Services; BR 64 (an act relating to Responding to Representative Wuchner’s Committee review of the administrative vacating convictions for reckless homicide), BR questions, Mr. Allumbaugh said two major regulations by the Interim Joint Committee on 165 (an act relating to firearms),BR 172 (an act

36 2017 Interim LEGISLATIVE RECORD relating to carrying concealed weapons), and (Appointment notification of local administrator) Metropolitan Caucus. BR 175 (an act relating to public protests) to to Licensing, Occupations, and Administrative From Senate President Robert Stivers and Judiciary; BR 114 (an act relating to the Public Regulations; 301 KAR 1:152 & E (Asian Carp House Speaker Jeff Hoover: Memorandum Service Commission), BR 115 (a joint resolution and Scaled Rough Fish Harvest Program), 301 appointing Representative John Blanton to the directing the Public Service Commission to KAR 1:195 (Repeal of 301 KAR 1:192), 301 KAR Budget Review Subcommittee on Justice and reexamine certain rate cases), and BR 182 (an 2:049 (Small game and furbearer hunting and Judiciary. act relating to electric utility billing) to Natural trapping on public areas.), 301 KAR 6:005 (Boat From Senate President Robert Stivers, Resources and Energy; BR 25 (an act relating to registration fees), 401 KAR 8:010 (Definitions for House Speaker Jeff Hoover, Senate Minority death in the line of duty benefits and declaring an 401 KAR Chapter 8), 401 KAR 8:011 (Repeal of Floor Leader Ray S. Jones, II, and Senate Minority emergency), BR 40 (an act proposing to amend 401 KAR 8:070, 401 KAR 8:101, 401 KAR 8:550, Caucus Chair Dorsey Ridley: Memorandum Section 29 of the Constitution of Kentucky and 401 KAR 8:600); 401 KAR 8:020 (Public approving the election by the Senate Minority relating to administrative regulations), and BR and semipublic water systems; submetering; Caucus of Senator Dennis Parrett as Senate 41 (an act proposing to amend Section 95 of the general provisions), 401 KAR 8:040 (Laboratory Minority Whip. Constitution of Kentucky relating to the election certification), 401 KAR 8:075 (Consumer COMMUNICATIONS of state officers) to State Government; BR 2 (an confidence reports and public notification),401 From the Office of the Attorney General: act relating to public safety) to Tourism, Small KAR 8:100 (Design, construction, and approval Constitutional Challenge Report for the months Business, and Information Technology; BR 1 of facilities and approval timetable for 401 KAR of May, June, and July 2017. (an act relating to the overtaking of bicycles on a Chapter 8), 401 KAR 8:250 (Inorganic and From the Finance and Administration roadway) and BR 54 (an act relating to railroads) organic chemical sampling, analytical techniques, Cabinet: Monthly Investment Income Report for to Transportation. maximum contaminant levels, radionuclides, the months of May, June, and July 2017. Referral of administrative regulations to and secondary standards), 401 KAR 49:011 From the Finance and Administration the following committees for secondary review (General provisions relating to area solid waste Cabinet, Office of the Controller: Surtax pursuant to KRS 13A.290(6): 907 KAR 1:041E management plans), 401 KAR 49:080 (Solid waste Receipts Statements for the Law Enforcement (Repeal of 907 KAR 1:018 and 907 KAR 1:019), grant funds and solid waste collector and recycler and Professional Firefighters Foundation Fund 907 KAR 3:066 & E (Nonemergency medical registration), and 401 KAR 49:091 (Repeal of Programs, which reflect activity for Accounting transportation waiver services and payments), 401 KAR 49:040, 401 KAR 49:090, and 401 KAR Periods 11 and 12 and year-to-date activity for 907 KAR 3:206E (Repeal of 907 KAR 3:205), 49:210) to Natural Resources and Energy; 31 the period of July 1, 2016, through June 30, 907 KAR 23:001 & E (Definitions for 907 KAR KAR 4:010 (Voter identification cards),31 KAR 2017, and Accounting Period 1 and year-to-date Chapter 23), 907 KAR 23:010 & E (Outpatient 4:040 (Procedures for absentee voting in county activity for the period of July 1, 2017, through pharmacy program), and 907 KAR 23:020 & clerk’s office), and 31 KAR 6:020 (Provisional July 31, 2017. E (Reimbursement for outpatient drugs) to voting) to State Government. From the Cabinet for Health and Family Appropriations and Revenue; 11 KAR 15:090 From Senator Tom Buford and Services: Kentucky Stroke Encounter Quality (Kentucky Educational Excellence Scholarship Representative Bart Rowland, Co-Chairs of Improvement Project (SEQIP) 2017 Annual (KEES) program), 16 KAR 2:020 (Occupation- the Interim Joint Committee on Banking and Report. based career and technical education Insurance: Memorandum requesting approval From the Kentucky Legislative Ethics certification); 16 KAR 5:020 (Standards for to meet on November 9 in Louisville, rather Commission: Recommended Changes to the admission to educator preparation), 16 KAR than the regularly scheduled meeting date of Code of Legislative Ethics/2017. 8:040 ( Ranking of occupation-based career and November 28. There are two (2) known conflicts. From the Kentucky Personnel Cabinet: 2016 technical education teachers), and 704 KAR From Senator Chris McDaniel and Annual Turnover Report of 15% and greater. 7:051 (Repeal of 704 KAR 7:050) to Education; Representative Steven Rudy, Co-Chairs of the From the Kentucky Commission on 201 KAR 2:076 (Compounding); 201 KAR Interim Joint Committee on Appropriations and the Deaf and Hard of Hearing: FYS 16-17 35:080 (Voluntary inactive and retired status), Revenue: Memorandum requesting approval to Telecommunications Access Program (TAP) 900 KAR 6:090 (Certificate of need filing, meet on November 20, rather than the regularly Annual Report. hearing, and show cause hearing), 900 KAR 6:125 scheduled meeting date of November 30. There From the Office of the Attorney General: (Certificate of need annual surveys);900 KAR are no apparent conflicts. 2017 Report on the Status of the Administrative 7:030 (Data reporting by health care providers), From Senator Mike Wilson and Hearing Process in the Commonwealth of 900 KAR 7:040 (Release of public data sets for Representative Bam Carney, Co-Chairs of Kentucky. health care discharge data), 902 KAR 55:015 the Interim Joint Committee on Education: From the Cabinet for Health and Family (Schedules of controlled substances), 902 KAR Memorandum requesting approval to meet Services, Department for Community Based 55:040 (Excluded nonnarcotic substances), 902 outside the Interim on December 11. There are Services: FY 17 Citizen Review Panels Annual KAR 55:041 (Repeal of 902 KAR 55:020, 902 no apparent conflicts. Work Report. KAR 55:025, 902 KAR 55:030, and 902 KAR From Senator Julie Raque Adams and From the Cabinet for Health and Family 55:035), and 902 KAR 55:095 (Prescription for Representative Addia K. Wuchner, Co-Chairs Services: Social Service Worker Caseload Schedule II controlled substance-authorization of of the Interim Joint Committee on Health and Averages Reporting. oral prescription for immediate administration, Welfare and Family Services: Memorandum From the Cabinet for Health and Family facsimile transmission, or partial filing) to Health requesting approval to meet on October 11, Services: Statewide Strategic Planning and Welfare and Family Services; 505 KAR rather than the regularly scheduled meeting date Committee for Children in Placement Status 1:130 (Department of Juvenile Justice Policies of October 18. There are no apparent conflicts. Update. and Procedures: juvenile services community) From Senate President Robert Stivers and From the Kentucky Personnel Cabinet: to Judiciary; 804 KAR 4:230 (Extended hours House Speaker Jeff Hoover: Memorandum Quarterly Report as of June 30, 2017. supplemental licenses), and 804 KAR 10:010 approving the organization of the Louisville From the Kentucky Judicial Form THE KENTUCKY GENERAL ASSEMBLY 37 Retirement System: Operating Statements of the Guests: Representative Kim King; Mark will be offered of Bourbon Pompeii after the Judicial Retirement Fund and the Legislators Brown, President, CEO, Buffalo Trace Distillery; meeting. Mr. Brown said prohibition is not a Retirement Fund for FY 17; list of investments Kevin Corman, Jessamine County Sherriff, solution to alcohol problems. The three-tier held by the Fund as of June 30, 2017; and Portfolio President, Kentucky Sherriff’s Association (KSA); system effectively minimizes the effect of alcohol Valuations of the Fund as of June 30, 2017. Ernie Keltie, Mercer County Sheriff’s Office; in society. It is the foundation for an orderly, From the Auditor of Public Accounts: Barrett Block, Vice President, The Castle; Jessica regulated market place. Buffalo Trace has no Report of the Examination of Lease Law Estes, DNP, APRN, President, Beth Partin, DNP, interest in direct shipment, either in-state or out- Compliance, FYS 16-17, and Independent APRN, FAANP, Legislative Chair, Catherine of-state. Accountant’s Report. Waits, and Sheila Schuster, PhD, Kentucky Pawn Brokers From the Cabinet for Economic Coalition of Nurse Practitioners and Nurse Kevin Corman, Jessamine County Sheriff Development: Construction activity reports for Midwives (KCNPNM); Cannon Armstrong, and President of the Kentucky Sheriff’s each loan approved as of the quarter ending June Commissioner, Department of Charitable Association, said not all pawn shops operate 30, 2017. Gaming; Catherin Waits, Kentucky Coalition of the same way. New legislation would bring From the Kentucky Employers’ Mutual Nurse Practitioners & Nurse Midwives; Sandra consistency by requiring all pawn shops to Insurance Authority: Statement of Assets, Thomas, KLOAR; Kelli Neafus, Pawnbrokers; maintain a data base of those who pawn items, Liabilities, and Policyholder Equity; Statement Nancy C. Swikert, MD, Past President, and and who sells items. The drug epidemic is of Income; and Statement of Solvency as of June Don Swikert, MD, President, Kentucky Medical increasing stolen items being pawned or sold. 30, 2017. Association (KMA); Ron Waldridge, Kentucky With a suspect’s name and description of an item, From the Kentucky Employers’ Mutual Association of Private Providers (KAPP); Trina it is possible to quickly locate an item that has Insurance Authority: Quarterly Statement and Summers, Kentucky Department of Alcoholic been stolen. Changing the hold period for items Financial Status for the period ending June 30, Beverage Control (ABC); Brian Houillion, MD, that are purchased versus pawned from 10 to 12 2017. Kentucky Public Protection Cabinet (PPC); days gives law enforcement time to investigate a From the Justice and Public Safety Cabinet: Oliver Barber Jr., Barber, Banaszynski and Hiatt, stolen item. If an item is sold on the same day it FY 17 Annual Report of the Education Program PSC; Morgan Ransdell, Attorney, Pam Hagan, has been purchased by the pawn shop, the item on AIDS. APRN and Nursing Practice Consultant, Paula is gone before law enforcement can investigate. From the Department of Military Affairs, Schenk, Executive Director, and Ann Tino, RN, Sheriff Corman said most pawn shops are Adjutant General Stephen R. Hogan: Military BSN, Kentucky Board of Nursing (KBN); Judy operating using a transaction recording service Assistance Trust Fund State FY 17 Annual Taylor, Keeneland; Carl Breeding, Kentucky that is accessible to law enforcement agencies. Report. League of Cities (KLC); Wendell Strode, Corvette People who are selling stolen items know which From the Justice and Public Safety Cabinet: Museum; Melinda Hill, Chief of Staff, Kentucky shops use the database and sell to others, making Application for funding under the 2017 Edward Finance and Administration Cabinet (FAC); and it harder to recover stolen property. Byrne Memorial Justice Assistance Grant (JAG) Don McLachlan, Dixie Pawn Shop. Barrett Block, The Castle, said he agrees with State Program. LRC Staff: Tom Hewlett, Bryce Amburgey, Sheriff Corman. Passage of the bill is important There being no further business, the meeting Jasmine Williams, Melissa McQueen, and Becky to the pawn broking industry in Kentucky. It will was adjourned. Lancaster. enhance the pawn broker’s reputation and level Minutes the playing field of pawn brokers who care about INTERIM JOINT COMMITTEE ON The minutes from the August 18, 2017 helping law enforcement catch criminals. Pawn LICENSING, OCCUPATIONS, AND meeting were approved without objection. brokers provide a service to members of the Senator Seum was recognized and stated community, lending to people who are not able ADMINISTRATIVE REGULATIONS Minutes of the 4th Meeting that Senator Higdon had been elected to replace to get money in more conventional ways. They of the 2017 Interim Senator Givens as President Pro Tempore who are lenders of last resort and take care of people September 8, 2017 has stepped down from that position. in financial need. Call to Order and Roll Call Senator Higdon was recognized and asked Ernie Kelty, Sheriff of Mercer County, said The fourth meeting of the Interim Joint committee members to keep the family of he agrees with Sheriff Corman and appreciates Committee on Licensing, Occupations, and Senator Paul Hornback in their prayers for the the cooperation law enforcement has received Administrative Regulations was held on Friday, loss of Senator Hornback’s father-in-law. from The Castle for years. All involved would September 8, 2017, at 10:00 AM, at Buffalo like to level the playing field. Trace Distillery Distribution Center, Frankfort, Welcome to Buffalo Trace Distillery Jerry Wagner, retired sheriff, Executive Kentucky. Senator John Schickel, Chair, called Mark Brown, President and CEO of Buffalo Director Kentucky Sheriff’s Boys and Girls the meeting to order, and the secretary called the Trace, welcomed the committee and said that Ranch, said he appreciates the cooperation roll. this distillery opened in 1773. The distillery is getting this legislation ready for the 2018 General Present were: making a $1.2 billion investment in the buildings Assembly. Members: Senator John Schickel, Co- on campus. The meeting for this committee will In response to a question from Chair; Senators Joe Bowen, Tom Buford, Denise be converted to a state-of-the-art bottling facility. Representative Miller, Representative King said Harper Angel, Jimmy Higdon, Paul Hornback, Approximately $25 million will be invested every recording serial numbers from items pawned or Dan “Malano” Seum, and Damon Thayer; four months for the next 10 years to build new sold has been discussed. Mr. Block added that Representatives Al Gentry, Dennis Keene, Chad warehouses. All cookers will be replaced to secondhand merchandise is defined as an item McCoy, Jerry T. Miller, C. Wesley Morgan, allow the distillery to work at capacity. During that is sold by a member of the public. Some Kimberly Poore Moser, David Osborne, Ruth the excavation of an old warehouse, workers pawn brokers sell new jewelry or new guns Ann Palumbo, Phillip Pratt, Sal Santoro, Walker discovered the original 1873 O. F. C. distillery; bought from a wholesaler. Thomas, and Susan Westrom. this has been named Bourbon Pompeii. A tour Kellie Neafus, on behalf of the Kentucky

38 2017 Interim LEGISLATIVE RECORD State Pawn Brokers Association, said she has with all interested parties in May to discuss issues These patients will be forced to seek care in an concern for some bill specifics. Pawn shops fall concerning APRNs. The opioid issue is serious. emergency room, which is more costly than under seven federal laws, like banks, because Over-prescribing is a big problem. Yet, there is seeing an APRN in an outpatient setting. they loan money. In order to pawn in Kentucky, a crucial need for nurse practitioners and nurse Beth Partin, Family Nurse Practitioner, a person must provide a valid driver’s license. A midwives in underserved areas on Kentucky. All Legislative Chair for the Kentucky Coalition of Social Security number is not necessary to track parties agree that nurse practitioners provide a Nurse Practitioners and Nurse Midwives, said it stolen merchandise. The association believes valuable service. is difficult for some nurse practitioners to find this is a privacy issue. Also, the hold period, Jessica Estes, Family Psychiatric Mental a physician who will sign the CAPA-CS. Some in Jefferson County, has changed over the Health Nurse Practitioner, President of the insurance companies are requiring the physician years. The number of days held is not relevant. Kentucky Coalition of Nurse Practitioners signing also be participating with that insurance Documentation from law enforcement that there and Nurse Midwives (KCNPNM), said all company. This is a problem for the nurse is an investigation regarding a particular item APRNs have a masters degrees and some practitioner who is opening a practice. In order to would be helpful. The shop could then hold that hold doctoral degrees. Nurse practitioners are prescribe suboxone that assists people addicted item but no other items not under investigation. typically individuals working in primary care to medication, the physician signing the CAPA Ms. Neafus stated it is important for the settings. APRNs practice in all 120 counties. In also has to be approved in the waiver program. pawn brokers to be part of the process for 2014 legislation allowed APRNs to prescribe There are only a few of these physicians, and contracting with a company that will maintain non-scheduled drugs without a Collaborative they are refusing to sign a CAPA. This creates a an online data base for pawned or sold items. Agreement Prescriptive Authority (CAPA) barrier to treating patients with opioid addiction. Don McLachlan, owner of Dixie Pawn signed by a physician in the same specialty. This Ron Waldridge, MD., Family Physician, Shop in Elizabethtown, said there is a concern has allowed APRNs to further their practice in President of Kentucky Medical Association regarding the holding period. Pawn shops keep rural areas. (KMA), said great strides have been made in records of who purchases items; 12 days could Under Kentucky law, APRNs are not medicine. Pain management should be considered interfere with some sales. required to be supervised. The CAPA is for in a holistic manner using not only prescriptions In response to a question from Senator prescriptive authority only. KCNPNM has 50 but massage therapy and counseling. Regarding Seum, Ms. Neafus said the hold time is different years of data that demonstrate safe and effective the legislation proposed, however, the request across that state. The association agrees that is prescribers providing quality care. APRNs focus to remove the collaborative agreement seems should be the same statewide. on health promotion, health education looking at reckless. While it is not a supervision, it is a In response to a question from Representative disease prevention, and make educated decisions collaboration. KMA is interested in seeing Morgan, Ms. Neafus said there is no requirement regarding patient care. data from the KBN to measure how the APRN to photograph customers making a pawn or a The Collaborative Agreement Prescriptive prescribing authority is working. KMA is sale. Pictures must be taken of items pawned Authority for Controlled Substances CAPA- committed to working with all colleagues to or purchased. With regard to looking for stolen CS will allow APRNs to prescribe controlled look at proactive ways to change the climate in property, a photo of the person making the pawn substances. This is not new authority. Currently Kentucky. KMA feels that this legislation does or sale is not useful. APRNs have their own DEA number identifying not address the current addiction crisis. If it is Senator Hornback commented that he did the prescriptions they write. There is also a found that there are patients who are in need and not agree with taking Social Security numbers statutory restriction regarding the amount of cannot get prescriptions, KMA wants to be part during a pawn transaction but agrees that a controlled substances APRNs can prescribe. The of the solution. holding period and taking photos should be coalition is asking to change the way the CAPA Nancy Swikert, MD., Family Physician, said mandatory. is administered. KMA has seven thousand members who are Senator Buford said that, when Kentucky APRNs are aware that there is a problem in concerned about the opioid issue and against changes the driver’s license to Real ID, Social the Commonwealth and want to take appropriate the increase to access by allowing APRNs to Security numbers will be encoded in the license. steps to solve the pain pill addiction issue. This prescribe. It is the general feeling that there are Representative King responded that the fall the coalition is going to offer three, five hour too many prescribers now and that increasing driver’s license or Social Security number is in sessions related to HB 1 requirements. In the prescription authority will mean additional place in the bill to cover when a person either spring there will be 10 sessions, offered at their drugs on the street. KMA wants to work with does not have a license or the license has been annual conference, related to addiction and all parties to find a solution; however, increasing revoked. Also, Leads on Line is a proprietary or pain management. The coalition publishes access to prescriptions is not an answer. company. To date, no specific company has been an APRN prescribing guide, used by both In response to a question from named for a contract. The holding period for pharmacists and other health care providers. Representative Moser, Dr. Estes said APRNs guns and trailers is not negotiable. Those items The CAPA is a challenge for APRNs because practice in 87 professional shortage counties. are two of the most stolen properties. Regarding there is a lack of primary care providers as well There is no full-time physician in Hancock photos, not every item must be documented with as mental health care providers in the state. The County. One physician works one day a week, a photo. However, if law enforcement requests a CAPA does not change what they can prescribe, and she is the only prescribing mental health photo, the shop must comply. just how they are able to prescribe it. As a mental provider in the county. Sheriff Corman said recent experience health prescriber, Ms. Estes’ patients are mostly In response to a question from proves that using only the driver’s license makes in managed care and half of those patients are on Representative Miller, Dr. Swikert said from it easier for law enforcement to track stolen Medicaid. In 2016, a managed care organization the physician’s side, even down-grading the property. refused to credential her because the physician requirement for schedule III and IV drugs, there Enhanced prescriptive authority for who signed her CAPA only accepted cash from is still the potential for abuse. Dr. Partin replied APRNs his patients. In western Kentucky, it is impossible APRNs are already limited to a three day supply Senator Paul Hornback said he had met to send 4,200 patients to another provider. of schedule II drugs and are not asking to change THE KENTUCKY GENERAL ASSEMBLY 39 that language. Committee on Economic Development and be a change in the perception that the One Stop Senator Schickel commented that he Workforce Investment was held on Tuesday, offices are just unemployment offices when they disagrees with the sentiment that doctors have September 12, 2017, at 1:00 PM CDT, at the should be career centers with multiple offices caused the addiction crisis. He feels that rather Warren County Area Technology Center in available at the one stop office. In addition, the than an addiction crisis there is a crime wave Bowling Green, Kentucky. Representative Jim state must follow federal requirements and foster because people will used the excuse that a doctor DeCesare called the meeting to order, and the partnerships by giving the counties the tools to over-prescribed, making them addicted to drugs. secretary called the roll. do what is required. Charitable Gaming Present were: Mayor Wilkerson welcomed the committee Cannon Armstrong, Commissioner of Members: Representative Jim DeCesare, to Bowling Green. He stated that the best the Department of Charitable Gaming, said Co-Chair; Senators Perry B. Clark, Rick social program is a good paying job. His charitable gaming in Kentucky is a $370 million Girdler, Ernie Harris, Jimmy Higdon, Stephen goal is to help provide an atmosphere for job industry. Speaking as a regulatory agency, there Meredith, Wil Schroder, and Reginald Thomas; creation in the private sector. There has been are a lot of good things done through charities. Representatives Lynn Bechler, McKenzie tremendous growth in Bowling Green and the However, there are also a lot of bad actors using Cantrell, Daniel Elliott, Al Gentry, Joni L. Jenkins, goal is to continue to manage the growth. Mayor the money for other purposes. Kentucky does James Kay, Kim King, Jerry T. Miller, C. Wesley Wilkerson recognized Eric Keeling and the great not extend charitable gaming privileges to 501(c) Morgan, Jason Nemes, Jason Petrie, Phillip Pratt, work being done at the Area Technology Center (7) organizations. Typically these organizations Steve Riley, Rob Rothenburger, Wilson Stone, (ATC) in placing students into jobs. are social or recreational clubs such as a country Russell Webber, and Addia Wuchner. Mr. Clayton indicated that a trained club, fraternity, sorority, dinner clubs, hunting- Guests: Mike Buchanon, Warren County workforce means educating our kids and that fishing clubs, home owner associations etc. None Judge Executive; Bruce Wilkerson, Mayor of K-12 education is a foundational piece. He noted of these organizations currently game. They Bowling Green; Rob Clayton, Warren County there is no greater advocate than Eric Keeling. cannot hold raffles, special limited including Superintendent, Eric Keeling, Principal of the Mr. Clayton noted a goal to expand the ATC but poker tournaments, electric pull tabs, or bingos. Warren County Area Technology Center; Scott recognized the monetary challenge in doing so. The agency is not against extending gaming Lindsay, Rafferty’s, Dr. Phillip Neal, President Dr. Keeling thanked the committee for status to 501(c)(7) organizations; however, of Southcentral Kentucky Community and coming to ATC. He noted that ATC strongly there are issues. A 501(c)(3) that does too much Technical College; Deputy Secretary Brad believes in the power of synergy and a return on gaming risks losing exempt status. Regardless of Montell, Education and Workforce Development investment. Regarding synergy, he noted that status, every charity that submits an application Cabinet; John Bradley, Senior Vice President partnerships with local industry, Warren County must meet criteria set in statute. The applicant for Economic Development, Tennessee Valley Public Schools, Bowling Green Independent must provide its charitable purpose that must Authority; Dave Tatman, Executive Director, Schools, the Bowling Green Chamber of relate to relief of poverty, advancement of Kentucky Automotive Industry Association; Commerce, and others make the success of education, protection of health, relief of disease, Meredith Rozanski, Chief Operating Officer, the ATC possible. He showed a video which relief of distress, protection of environment, Bowling Green Chamber of Commerce; and Ron highlighted a race car built entirely by the conservation of wildlife, advancement of civic, Bunch, President and Chief Executive Officer, students. governmental or municipal purposes. A 501(c) Bowling Green Chamber of Commerce. Dr. Keeling discussed return on investment (7) exemption would allow a non-charitable LRC Staff: Carla Montgomery and Andrew and noted how excited the students have been recreational organization to engage in charitable Manno. in building a race car. ATC initially was flagged gaming. Approval of Minutes for a lack of placement. However, 100 percent Senator Higdon commented that A motion to approve the minutes of of students are now being placed into jobs. He Commissioner Armstrong is very accessible and the August 17, 2017 meeting was made by noted some students now earn over $20 per hour. is doing a good job at the agency. Representative Rob Rothenburger, seconded by Enrollment is up 55 percent. Welding students In response to a question from Representative Jason Nemes, and approved by have achieved 100 percent AWS accreditation Representative Gentry, Mr. Armstrong said voice vote. this year, and the ATC has won several awards. there is a fee when applying for a gaming license. Greetings and Introductions Dr. Neal thanked the committee for An exempt organization that does not collect Judge Executive Buchanon welcomed the supporting educators. The mission of his school is $25,000 in gaming revenue is charged no fee. committee to Warren County. He noted that to provide the workforce of today and tomorrow. There is a gaming fee based on gross receipts. workforce development has been a priority He discussed the collaboration between the This is collected when charities submit their of the Warren County and Bowling Green Bowling Green Chamber of Commerce, the local monthly financial statements. The agency is a governments for many years. There has been school systems, Western Kentucky University, restricted fund agency. continuing problems with attracting a qualified and local industry to increase programs such as There being no further business, the meeting workforce and noted that 5,789 positions are dual credit and student transfer arrangements. was adjourned at 11:30 AM. currently open in Warren County. Mr. Buchanon He is proud of the faculty and staff of the college indicated there has been a lot of interest from for building a workplace ethics program to teach INTERIM JOINT COMMITTEE ON companies since the passage of the right to work “soft skills” to students as part of the classroom ECONOMIC DEVELOPMENT AND referendum. He recognized Representative program. Jason Nemes for his help in the passage of right Co-Chair Jim DeCesare recognized WORKFORCE INVESTMENT Minutes of the 4th Meeting to work. former state Representatives Kenny Imes and of the 2017 Interim Mr. Buchanon indicated that workforce current Representatives Jody Richards and September 12, 2017 development in Kentucky has been unorganized Michael Meredith and Senator Stan Humphries Call to Order and Roll Call in a unilateral way by agencies that do not who were in attendance at the meeting. The 4th meeting of the Interim Joint answer to the public. He believes there should Unemployment Insurance Update

40 2017 Interim LEGISLATIVE RECORD Secretary Brad Montell provided is used as recruiting incentives. Investment retirement age. The one issue that can halt the committee with an update on recent credits, grants and loan funds are made available continued economic development is lack of a unemployment insurance (UI) changes. to help local communities finalize deals with qualified workforce. Two generations think of Secretary Hal Heiner recently announced that industries. Investment credits of $26 million manufacturing as dirty, dark and dangerous. job centers will no longer be split between have been utilized in Kentucky companies in However, Mr. Tatman stated that manufacturing handling UI claims and job assistance. UI claims the TVA footprint, $465,000 in grants have been is not dirty, dark and dangerous but provides will now be filed either by phone or online. provided, and over $2 million in loans have been a great job with competitive wages and health Claimants will not have to come to the office to made. TVA provides about 10 percent to 20 care. A four year degree may not be the answer file a claim. This will free the staff at the One Stop percent of any final deal. for all students. He also thanked the committee offices to spend a majority of time assisting with Mr. Bradley explained how technical for its work and asked it to continue to focus on reemployment services such as career coaching, assistance helps rural communities market issues such as energy, infrastructure, taxes and training, assisting with resumes, and helping possible sites through drawings and 3D workforce investment to assist manufacturing in connect workers to open jobs. Claimants can renderings. He also noted the teamwork between Kentucky. come to the One Stop office and use the phone TVA and its many community partners such as Co-Chair Jim DeCesare noted that nearby or computer to file a claim if necessary. local power companies, the Commonwealth Constellium provides the perfect example of Economic Development Update of Kentucky, local economic development how manufacturing is no longer dirty, dark and Mr. Bradley showed a short video detailing organizations, and others which make TVA dangerous. the involvement of the Tennessee Valley unique from a public utility model. The 54 Responding to a question from Authority (TVA) in local communities. He individuals on staff at TVA have an economic Representative Wilson Stone, Mr. Tatman explained that TVA is not just a utility but is development background with local and state indicated that, following the problem with an economic development agency. The sale of programs which allows the TVA to operate a workforce, that the tax structure must be altered electricity allows the TVA to put money into comprehensive economic development program. to become more business friendly. He also noted economic development within its footprint, Co-Chair Jim DeCesare recognized that that infrastructure is a current advantage for the which covers seven states, with a main emphasis the TVA has been ranked in the top ten by area but needs to be maintained. in Kentucky, Tennessee, Mississippi, Alabama Site Selection Magazine as a high producing Mr. Bradley agreed with a point made by and Georgia. development organization. He also noted Senator Perry Clark that the aging population The mission of the TVA over its 84 years that the computer renderings allow a site to be will be a growing workforce issue, particularly has been energy, environment, and economic marketed without the need of a spec building on in the automobile industry. Senator Clark noted development. The three parts of economic site. the aging workforce will require Kentucky to development are to attract new companies and In response to Representative Jason Petrie’s work toward attracting young people to our state. investments, engage industries to retain what question on how Kentucky compared to other SCK Launch investment has previously been made, and states, Mr. Bradley noted that Kentucky is Ms. Rozanski noted the great synergy in serve the community through development and competitive. Right to work will have a big impact Warren County toward workforce investment preparedness. on attracting the larger projects since Kentucky and economic development. She noted economic Mr. Bradley highlighted the creation of will not be eliminated up front. development is a team sport and that Warren 5,500 jobs in the Kentucky TVA region in fiscal Responding to a question from County has been first in Kentucky in economic year 2017. In addition, there has been $1.1 Representative Lynn Bechler, Mr. Bradley investment. She noted that the change in the One billion in capital investment during that time. explained how the TVA measures jobs created Stop centers to job reemployment centers will be This is the hands-on, grassroots part of economic and jobs retained. Job creation is a new company critical. Only one-half of the 1,300 individuals development. While the TVA is good at or an expansion of an existing company. receiving UI benefits are eligible for the many attracting and engaging industry, the economic Job retention means a job kept following a open positions as the other half are awaiting a development piece is the best part of TVA. competitive situation in which the company was call-back following a furlough. Mr. Bradley described the efforts being looking to move outside of the TVA footprint. Ms. Rozanski noted the efforts being made in attracting industries to the TVA Co-Chair Jim DeCesare thanked Mr. made to create a talent pipeline to fill these region. Product development has been a recent Bradley for TVA’s work on data center legislation. open positions. She discussed SCK Launch, focus, helping communities with investment Aluminum Industry Update which stands for South Central Kentucky preparation, obtaining funding, and having sites Mr. Tatman noted that aluminum is an Learning About Unique and New Careers in a marketable position. Many Legacy Sites, important part of the automotive industry Here. The Chamber looked at the labor market those TVA sites being repurposed, have been in Kentucky. He thanked Sen. Harris for his data and discovered the top sectors in the used to increase economic development. He leadership on the metal commodities bill. He local economy. She mentioned hospitality, noted seven recent projects in which the TVA stated that the evidence of the importance of recreation, public sector such as teachers and assisted with the improvement 1,106 acres of aluminum is seen throughout the Transpark in police, manufacturing, and healthcare as areas of land, 138,000 square feet of new industrial space, Bowling Green. Many manufactures have chosen emphasis. Posters were created for each sector and invested $4.66 million. Mr. Bradley noted it to locate in this area but efforts must continue detailing the knowledge and skills necessary, the was the sixth year of the product development to maintain the growth. He noted geography, salaries of various positions, the career pathway program. inexpensive electricity, and good transportation to obtain those positions, the education or Regarding encouragement, Mr. Bradley systems as being critical to the aluminum and certification required, and how to get certified. highlighted the many incentive programs utilized automobile industries. These posters are provided to schools and career by the TVA to retain existing businesses. Eight- The most critical issue facing the industry centers in the Bowling Green area. five percent of the participants in these programs is workforce. Qualified workers must be A realistic conversation with students must are existing businesses while the remainder found. Many skilled autoworkers are nearing be made regarding what career they would like to THE KENTUCKY GENERAL ASSEMBLY 41 pursue, what knowledge and skills are necessary the next meeting of the committee will be on A Citizen’s Guide to Kentucky to obtain the position, what investment in October 19, 2017 at Asbury University. Infrastructure education must be made to obtain the position Ashli Watts provided a report on the water and the return on that investment. This was the With no further business to come before the infrastructure in Kentucky. She explained how impetus behind SCK Launch. committee, the meeting was adjourned at 2:34 infrastructure plays a critical role in the daily Ms. Rozanski indicated the goal was to best p.m. CDT. affairs of businesses and economic development prepare kids for the future. The guiding principles in the Commonwealth. Kentucky is located are to support student-driven leadership that INTERIM JOINT COMMITTEE within 600 miles of 65 percent of the nation’s builds self-awareness, empowerment and a ON NATURAL RESOURCES AND population. In 2016, a Gallup poll found that career-wise graduate, to provide students with 75 percent of Americans favor spending more ENERGY meaningful opportunities to explore, experience Minutes of the 4th Meeting money to improve infrastructure. and connect to build their career skills and of the 2017 Interim knowledge, and to support the attainment of September 7, 2017 In 2005, a Kentucky legislative report found nationally-portable industry credentials and Call to Order and Roll Call that there are fewer drinking water systems in post-secondary courses to LAUNCH students’ The 4th meeting of the Interim Joint Kentucky than in most states, and the number future career paths. Committee on Natural Resources and Energy of systems continues to decrease. The Kentucky This efforts begins in middle school with was held on Thursday, September 7, 2017, at Infrastructure Authority (KIA) provides low- the SCK Launch Experience, a hands-on trade 11:00 AM, at Kentucky American Water (KAW) cost loans to assist communities in developing show which introduces students to the many in Lexington. Senator Jared Carpenter, Chair, water systems. career opportunities available. Students can called the meeting to order, and the secretary The Kentucky Division of Water’s 2016 choose a career pathway in high school and can called the roll. annual report indicated that drinking water learn through job shadowing, internships, tours Present were: quality is good in Kentucky. The report shows of businesses, and other exposures to careers. Members: Senator Jared Carpenter, Co- a low number of health based violations related Students also learn how to act and dress at Chair; Representative Jim Gooch Jr., Co- to contaminants, and most violations are work, how to prepare a resume and cover letter, Chair; Senators C.B. Embry Jr., Ernie Harris, administrative in nature. The national average and other necessary skills. Educators are also Ray S. Jones II, John Schickel, Brandon Smith, for health violations based on population served provided with resources to help them better Johnny Ray Turner, and Whitney Westerfield; was 6.8 percent in 2014 and 8.1 percent in prepare students in career planning. Representatives John Blanton, Larry Brown, 2015. In Kentucky, health violations based on SCK Launch also fosters student-led Matt Castlen, Tim Couch, Jeffery Donohue, population served was 15.3 percent in 2014 and leadership and provided funds to help schools Kelly Flood, Chris Fugate, Suzanne Miles, Jim 10.6 percent in 2015. Ms. Watts explained that implement the program. Student ambassadors Stewart III, and Jill York. there is movement in the right direction with a 5 at each school help lead community projects and Guests: Jimmy Keeton, Director, percent drop in violations. campaigns to encourage and promote others Government Affairs, KAW; Brad Kinckiner, The KIA’s Water Management Plan surveyed within the school community. Manager, Health and Safety Programs, KAW; water districts for planned projects and identified SCK Launch started in 2016 with 1,800 Nick Rowe, President, KAW and Senior 2,089 drinking water projects at a total cost of participants in Warren County. In 2017, Vice President, American Water Southeast $1,909,356,450. The American Society of Civil 3,200 participants are confirmed throughout Division; Ashli Watts, Vice President, Public Engineers (ASCE) estimated Kentucky has $6.2 the ten county workforce area. Twenty-two Affairs, Kentucky Chamber of Commerce (the billion in drinking water infrastructure needs. educators have participated in externships in Chamber); David Shehee, Superintendent, Water The average age of water plants and water tanks healthcare, professional service, manufacturing, Quality and Environmental Compliance, KAW; is 37 years and 26 years, respectively. and hospitality. Ms. Rozanski also noted that and Brent O’Neill, Director, Engineering, KAW. The Division of Water has identified 277 120 students are enrolled in the Medical Arts LRC Staff: D. Todd Littlefield, Stefan Kentucky communities not under federal Academy. Kasacavage, Janine Coy-Geeslin, and Rachel consent decrees, but have varying degrees of Co-Chair Jim DeCesare noted how the Hartley. aging infrastructure that can cause overflows at Bowling Green community has taken the The July 6, 2017, and August 3, 2017, wastewater management treatment plants. The initiative to grow its own workforce. minutes were approved by unanimous voice vote. KIA’s Wastewater Management Plan identified Representative Wilson Stone commented Welcome to Kentucky American Water 1,484 needed wastewater projects in Kentucky that the Bowling Green area is the center of a Jimmy Keeton welcomed staff and legislators with a total cost of more than $2 billion. ASCE great deal of exciting economic development and to KAW. Brad Kinckiner advised all guests of estimated that Kentucky has $6.24 billion in he thanked everyone involved. health and safety procedures. wastewater infrastructure needs over the next 20 Responding to a question from Senator Nick Rowe reported to the Committee years. Ernie Harris, Ms. Rozanski noted that the that KAW manages more than 370 individual Ms. Watts said the Chamber considers the information on the career pathways posters has water systems in the country with 48,000 miles Public-Private Partnerships (P3) legislation been shared with state agencies. Mr. Bunch added of distribution and collection mains. KAW was passed in 2016 to be part of the solution to address that a report is created every month showing established in 1882 as Lexington Hydraulic and Kentucky’s infrastructure needs. The Chamber each open job in the area along with five-year Manufacturing Company. The company was supports state and local governments embracing and ten-year projections to assist educators. Ms. acquired by Community Water Service Company the P3 legislation and aggressively soliciting Rozanski noted the great partnerships with local in 1927. The company name was changed to private partners to assist in the financing, colleges and universities and the local school Kentucky American Water in 1973. There are construction and operation of infrastructure systems. approximately 130 employees that serve half a projects. Co-Chair Jim DeCesare announced that million people. Water Quality and Environmental

42 2017 Interim LEGISLATIVE RECORD Compliance In response to Senator Smith, Mr. O’Neill Representatives Turner and Blanton David Shehee said quality of water sources said that Lexington’s primary water source is the welcomed various guests to the meeting, is important to KAW and its customers because, Kentucky River, and some water is taken from including a class from Knott Co. Central High if fewer contaminants are put into the sources, several reservoirs in Lexington. Each station School, Knott County Tourism Director Chris then there are fewer contaminants to remove pumps on average 45 million gallons per day Amburgey, Hindman Mayor Tracy Neice, Knott through water treatment. There are 2.1 million from the Kentucky River, with as much as 70 County Judge Executive Zachary Weinberg, and people who die annually in the United States million gallons per day pumped in the summer. number of citizens from the area. from water related illnesses. Ninety-five percent In response to Senator Carpenter, Mr. Rails to Trails in Kentucky of Kentuckians have access to public water O’Neill said a major concern in the water Representative Chris Fugate, Jerry systems. KAW is regulated by the United States industry is small water systems are starting Stacy (Emergency Management Director Environmental Protection Agency, Kentucky to age, and they do not have funds to improve for Perry County), Debby Spencer (WMTH Division of Water, Kentucky Public Service infrastructure. KIA has funds available to help Corporation) and Mike Miller (Kentucky River Commission, and by local ordinances. smaller communities. However, another concern Area Development District) spoke on behalf Mr. Shehee said older water treatment is whether these funding sources can keep pace of the “Rails to Trails” project taking place in plants were designed to reduce turbidity. The with infrastructure needs. Mr. O’Neill reiterated Eastern Kentucky. The “Rails to Trails” project infrastructure needs to be updated to keep up with that the P3 legislation can be another funding was created by House Bill 156, which passed new regulations on disinfection by-products, tool to potentially help these communities. during the 2017 legislative session, in order to organisms, and emerging contaminants. The next meeting of the Interim Joint invest state dollars in eastern Kentucky with the In response to Senator Westerfield, Mr. Committee on Natural Resources and Energy creation of the Kentucky Mountain Regional Shehee said KAW is constantly working will be on October 5, 2017. Documents Recreation Authority (KMRRA). Debby Spencer with American Water Association Research distributed during the meeting are available in pointed out that while 16 counties were needed Foundation to discover what research exists the LRC Library. to pass resolutions agreeing to take part in on emerging contaminants and what problems There being no further business, the meeting KMRRA to make the project viable, 18 counties might develop in the future. It is important to was adjourned. have already passed resolutions to participate in keep contaminants out of the water. However, the project; three more counties are anticipated if contaminants reach the water it must be to join shortly. treated. Also, upgrades to infrastructure may INTERIM JOINT COMMITTEE ON Ms. Spencer discussed the make of up be needed. Once the contaminants are filtered KMRRA Board of Directors and how it would out of the water, the accumulated contaminants TOURISM, SMALL BUSINESS, AND function. The KMRRA Board will be made of are mostly landfilled. KAW reuses all of its solid INFORMATION TECHNOLOGY annually rotating members due to the number contaminants on site. Minutes of the 3rd Meeting of interested parties. Ms. Spencer also discussed of the 2017 Interim Infrastructure Challenges August 18, 2017 the practical implications of the creation of the KMRRA, such as: Brent O’Neill reported that most water Call to Order and Roll Call -taking on the liability of trail usage from the infrastructure in the United States is at the end of The 3rd meeting of the Interim Joint landowners its useful life. The pipes installed were intended Committee on Tourism, Small Business, and -writing and administration of grants to last 65-95 years. Some pipes are more than Information Technology was held on Friday, -maintenance and policing of trails a century old. There are 1.2 million miles of August 18, 2017, at 1:00 PM, Knox County -marketing and advertising of trails distribution pipes within the United States. Sportsplex. Representative Tommy Turner, -oversees sales of 1-day, multi-day and annual Kentucky has 62,200 miles of main distribution Chair, called the meeting to order, and the passes to trails pipes. secretary called the roll. Ms. Spencer made the specific point that In 1980, 10 percent of all pipes were in poor Present were: KMRRA wants willing landowners to participate shape. In 2010, this percentage increased to 45 Members: Representatives Diane St. Onge, and that the authority “shall not acquire property percent of all pipes. The reason for the increase Co-Chair, and Tommy Turner, Co-Chair; through the exercise of power of eminent of pipes in poor shape is due to the type of Senators Perry Clark, Rick Girdler, Ernie domain.” material of pipes. The increased age and type of Harris, and Reginald Thomas; Representatives Ms. Spencer has reviewed similar authorities material creates a greater risk of failure. There are John Blanton, Larry Brown, John Carney, Matt in Virginia and West Virginia. West Virginia’s currently 650 breaks per day in the United States Castlen, Jeffery Donohue, Chris Fugate, David Authority has 7 public OHV trails totaling nearly with $2.6 billion in lost water. Hale, Chris Harris, Angie Hatton, Richard Heath, 600 miles and sold over $1.7 million in permits In 2017, the Infrastructure Report Card Dan Johnson, Kim King, Michael Meredith, in 2016. Over 96 percent if the permit sales were by the American Society for Civil Engineers Melinda Gibbons Prunty, Bart Rowland, and Jill to riders from outside the region. Since 2013, issued a grade of “D” for the drinking water York. Virginia has opened five public OHV trails infrastructure across the United States. Over Guests: Debbie Spencer, Jerry Stacy, totaling just over 300 miles with over $18 million $650 billion is needed in investments in water Commissioner Greg Johnson, Kentucky in private investment, creating nearly 300 new infrastructure over the next 20 years. Department of Fish and Wildlife, Deputy jobs. Last year, WV and VA received ARC In 2013, the Infrastructure Report Card Commissioner Karen Waldrop, Department (Appalachian Regional Commission) funding by the American Society for Civil Engineers of Fish and Wildlife, Secretary Don Parkinson, for their trails. In order to be fully funded, the issued a grade of “C+” for the drinking water Kentucky Tourism, Arts, and Heritage Cabinet; KMRRA will need to push for both ARC and infrastructure across. Mr. O’Neill said that the Jeff Harper, Kentucky Farm Bureau. AML (Abandoned Mine Land) grants. Grants, P3 legislation can assist local communities LRC Staff: Chip Smith, and Emma Mills however, cannot be submitted until the KMRRA access funding to overcome water infrastructure Welcome challenges in Kentucky. board meets. A KMRRA board meeting is called THE KENTUCKY GENERAL ASSEMBLY 43 by the local governments involved. Transportation regarding the trails because it animals. Kentucky has also become a “donor Once grants money has been secured, needs the KMRRA board to meet to have the state”, meaning elk originating in Kentucky Ms. Spencer would like to push for a detailed authority to involve other state entities. have either migrated or have been intentionally business plan that includes an inventory of all Responding to a question from moved into Virginia, Wisconsin, Missouri, existing and potential trails in all participating Representative Hale, Ms. Spencer confirmed Arkansas, Tennessee and West Virginia. The counties to determine “low hanging fruit” and that other counties contiguous to the initial 18 permit lottery system, otherwise known as The priority projects for greatest initial gain for counties participating in the project can pass Elk Draw averages about 700 hunting permits making KMRRA self-sustaining. Kentucky has a resolution from their county governments per year. In addition, to the draw, the department nearly 300 miles in public trails that could be confirming their wishes to participate and bring provides for 10 “Youth Permits”, 10 “Commission integrated into KMRRA. Ms. Spencer would the resolution before KMRRA, which would then Permits”, and 44 “Land Owner” permits. like a comprehensive plan that includes willing vote on whether to let the counties participate. Commission Permits are provided to 501C3 landowners from the start, instead of counties Co-Chair Dianne St. Onge’s iterated Non-Profits specializing in outdoor education planning out trails without prior consent of supporting of potential horse trails as part of the and youth outdoor education. Such permits have landowners which could be a waste of money. trial project. Ms. Spencer noted there is a 100 been raffled off as fundraisers for anywhere from If grant money is secured and a comprehensive mile looped trail system already in place through $8,000 to $100,000 to benefit the non-profits plan is put forward, KMRRA could be self- 4 separate counties. organizations. sustaining in 2-4 years based on projected In response to a question from Land owner permits are awarded in two earnings from trail permits sold in Virginia and Representative Carney inquiring if any revenue ways. If a land owner of 5,000 acres or more West Virginia. Projected expenses of starting the would be available for use by the school systems. enroll in the department’s Hunter Access trails, again based on expenses incurred by the Ms. Spencer thought that the permit funds would Program, making their land publicly available state of Virginia, Ms. Spencer says that required be dedicated to the trail system, but the project for elk hunting, the land owner will be rewarded equipment would cost about $740,000. If the could provide additional sales tax revenue that one “either sex” elk tag. For small land owners applications for federal grants are approved, could benefit the local school districts. Mr. there is a voucher program, where if hunters are KMRRA will not be asking for any state money Miller confirmed there will be an economic allowed on the land to hunt and harvest a bull (2 to fund the project. impact study that would address that question in points) and a cow (1 point), once the landowner Jerry Stacy wanted to reiterate Ms. Spencer’s the future once the KMRRA board meets. reaches 20 points the landowner will also receive emphasis on acquiring funding for the trail In an additional question from a tag. In addition, there is a trapping program for project. Mr. Stacy has received a lot of positive Representative Carney regarding how revenue small landowners as well. This program allows feedback from landowners about trails running will be distributed, Mr. Miller thought that Fish and Wildlife to trap elk on land provided by through land in Perry County. He feels like this in whichever county a tax is generated would the owner. Again, two points for a bull elk, one project is an opportunity for Eastern Kentucky to remain in the county and probably not point for a cow. The objective is to evaluate and see some economic growth. Ms. Spencer points distributed throughout all of the counties. possibly relocate elk to parts of Eastern Kentucky out there will be a variety of trail permit options, Kentucky Hunting, the Elk Draw, and that could support elk herds but have none. including ATV trails, hiking trails, and possibly Asian Carp Migration In response to some questions from the equestrian trails, as well as rock climbing, zip Speaking on the topics were Kentucky community, Commissioner Johnson discussed lines, and arch viewing trails. They feel that this Fish and Wildlife Commissioner Greg Johnson, a “preference point” system, which is the permit variety of tourist activities will get “heads in Deputy Commissioner Karen Waldrop, and system preferred in the western United States. beds” in lodges and area hotels. Commissioner of the 7th District Paul Horn; Due to the relative small size of Kentucky’s herd, In response to a question from Chairman Kentucky Tourism, Arts and Heritage Secretary the preference point system would not distribute Turner regarding the current funding on the Don Parkinson and Chief of Staff Frank Jemley. the permits as fairly as the current lottery work being done on KMRRA, Ms. Spencer Commissioner Johnson also introduced several system. The Commissioner also discussed a new confirmed that all work being done on the division directors in attendance. aspect of draw instituted this year, which is if a project is voluntary. Commissioner Johnson began with statistics hunter wins a lottery permit in the Elk Draw, Following a question from Chairman regarding hunting and fishing related tourism. the individual will now have a 3 year wait period Turner regarding who will be policing the trails, He noted there are more than 700,000 hunting before entering the draw again. Mr. Stacy noted that Virginia’s trail authority and fishing license holders in the state. Recently, Fish and Wildlife is also looking into options is contracted with the state’s Fish and Wildlife the Outdoor Industry Association announced to make the lottery draw more transparent. The Department. Ms. Spencer also noted that West that the economic impact of outdoor recreation Commonwealth Office of Technology performs Virginia has full time employees patrolling the in Kentucky totaled $8.8 billion dollars in 2016. and certifies the Elk Draw, but the Department trails. An option could be to use county deputies The outdoor recreation industry also supports of Fish and Wildlife is looking into going with already employed to patrol the trails; KMRRA 120,000 jobs and generates $756 million in state an outside organization to perform certify the would fund that portion of their job duties. revenue. As a reminder, Kentucky Fish and draw at a public venue somewhere in eastern In response to a question from Wildlife, as a department, receives no general Kentucky. Representative Chris Harris regarding why fund revenue; all operations are supported by Finally, Commissioner Johnson reviewed the counties had not called a meeting yet, Ms. hunting and fishing license sales, federal match the research projects involving Kentucky’s elk Spencer confirmed the 16 county threshold had money and boating registration dollars. herd, which is the most researched elk herd only passed the previous Friday, so there just had Elk in the United States. One current project is to not been enough time to call a board meeting. From 1998 – 2002, the first elk herd was evaluate the department’s current population In response to a question from Senator reintroduced to Kentucky, numbering 1,540 elk. model, which estimates the number of animals Clark, Ms. Spencer confirmed the organization The current elk herd is officially the largest herd in the population. had not be in contact with the Department of east of the Rocky Mountains at nearly 10,000 In response to a point from Representative

44 2017 Interim LEGISLATIVE RECORD Blanton regarding some of his eastern Kentucky deer collisions. Due to the increase in deer comment that western Kentucky is indeed seeing constituents feeling as if the lottery is unfair to related accidents, the department is considering the same deer related problems as some of the the residents supporting the elk herd, Deputy liberalizing the numbers of permitted deer kills Zone 1 counties. Commissioner Waldrop pointed to the late season on a county by county basis. To that end deer Bears elk draw for local hunters that is designed to deal working group has been established to evaluate Historically, logging in the U.S. and with nuisance elk and/or to manage the number events impacting the deer population. For Kentucky negatively affected bear habitat and bear of cows in specific areas. For participants of The example, the working group has been following numbers. There was a period from 1970 to 1990 Elk Draw that are not picked in the initial draw, an outbreak of epizootic hemorrhagic disease that West Virginia and Virginia were removing residents of specific counties can be redrawn to affecting the deer herd in Kentucky. The disease is nuisance bears, possibly into Kentucky. There are take part in the late season hunting. caused by a fly that lives around water. Basically, sections of Kentucky that have a relatively high Responding to a question from Senator an infected deer dies from internal bleeding. This population of bears, or core bear range. These Harris about why the department limits the working group is made from a wide variety of areas in Kentucky have established practices number of permits to 700 with a herd of 10,000 interested parties, including legislators, hunters, people follow in order not to attract bears such animals, Commissioner Johnson pointed to the citizens, Farm Bureau, and urban constituents as special containers for food and trash and population dynamics of elk are different than to provide feedback on herd management. The not leaving pet food readily available. Bears do other animals such as deer. An elk cow will only working group has discussed items such as deer appear in other parts of Kentucky though not have one calf at a time where as a doe typically permit modifications, expansion of hunting as frequently. Most bear sitings outside the core has two, sometimes three, offspring at a time. methods, and liberalization of zone intakes. bear range are two year old males that have been Also, eastern Kentucky still has a vast amount of In response to a question from kicked out of their family group. land that could sustain elk. The Department of Representative Rowland regarding deer infected For the 2017 bear hunting season, the Fish and Wildlife limits the number of permits with epizootic hemorrhagic disease, Deputy department has established 3 zones. Zone 1 is the in order to boost the elk numbers throughout Commissioner Waldrop confirmed that officers core bear area. The quota is 50 bears per season. the region. or biologists will euthanize infected deer and Kentucky’s bear population is increasing, thus In response to questions from Representative collect blood samples to send off for testing. the harvest quota has increased. Other activity Johnson about the ideal population number Responding to Representative Blanton’s involved catching and collaring female bears in of elk in the region, Deputy Commissioner concerns about epizootic hemorrhagic disease order to count how many cubs are being born Waldrop discussed how the department must possibly contaminating a cattle water supplies on during the winter. try to balance the health of the herd with not farms, Ms. Waldrop did not believe the disease having so many elk that they become a nuisance would contaminate the water, but it would be In response to a question from Representative to the human population. The department is best to remove a carcass from a water source as Carney regarding the 50 bear quota, Deputy more concerned with moving parts of the herd quickly as possible. Commissioner Waldrop noted that this is the into unpopulated areas of eastern Kentucky than In response to a comment from first year at the number 50; the quota for 2016 it is with achieving a specific number of elk. Representative Michael Meredith regarding the was 35, but the department anticipates the quota Ms. Waldrop does not think the herd will grow differences between zones 2 and 3 specifically will be met. exponentially as it has done since introduction, between Edmonson and Butler counties, Deputy Responding to a question from but are looking at a 6 percent growth rate. Commissioner Waldrop says that typically the Representative York about bear safety, Deer distinction between the zones is the number Commissioner Johnson did say that bears, if left In 1927, Kentucky has a deer population of days (16 days in Zone 2, 10 days in Zone 3). alone, will avoid human contact if you happen to of around 1,000. From 1945 – 1999, the state She reiterated that the department is seriously see one. Again, he noted that if bears have been actively tried to restore the numbers of the deer considering liberalizing hunting restrictions sighted in your area, keep trash indoors or in a herds. There are deer hunting opportunities in throughout the state, which may address garage until it is time for collection, bring in any all 120 counties. Commissioner Johnson noted concerns in those particular counties. bird feeders or dog food that could tempt them. that Kentucky has one of the best quality deer Responding to a question from Ms. Waldrop emphasized that individuals should herds in the United States and has also been Representative Larry Brown about concerns never feed bears in the area because they become recognized as one of the top 5 locations for deer with consumption of deer possibly infected used to humans quickly. Once they start being hunting in the country. The deer herd has an with epizootic hemorrhagic disease or what fed, they will not want to go away from readily economic impact of $553 million in the state and to do if an individual were to find an infected available food and will become a nuisance. the industry provides 13,000 jobs. deer, Ms. Waldrop confirmed the disease is not Responding to a two questions from Senator The current deer herd in the state runs from transmissible to humans or family pets, however Clark, Commissioner Johnson confirmed 800,000 to 1,000,000 animals. This number will one would not want to consume a deer with a Kentucky has never had a bear attack. The fluctuate with based on the amount of natural secondary bacterial infection. If confronted Commissioner reiterated that bears were not food on the ground; the more the animals travel with a sick deer, it is legal for an individual to stocked in Kentucky; the bears moved in from to find food, the more vulnerable they are to euthanize the deer but the Department of Fish large populations in neighboring states. hunting. Throughout the state, regardless of and Wildlife does need to be contacted either by Asian Carp zone, hunters are permitted only 1 antlered calling or filling out a form on the website. Per Secretary Don Parkinson, one of the two buck per season. The numbers for permitted Responding to a question from greatest challenges facing the Tourism cabinet in does fluctuate between the zoned areas, which is Representative Johnson about the efficacy of deer 2017 is Asian Carp, an invasive species of fish based on herd population by county. whistlers on a vehicle, Commissioner Johnson threatening the food chain of native species such Commissioner Johnson warns that with and Deputy Commissioner Waldrop confirmed as bass and crappie. Asian Carp can grow to 70 improved numbers in the deer population there is no evidence the whistlers affect deer. – 80 lbs. The Department of Fish and Wildlife is comes the increased likelihood of disease and Representative Gibbons-Prunty added a focusing on Kentucky and Barkley lakes due to THE KENTUCKY GENERAL ASSEMBLY 45 the level of infestation. The department’s primary acknowledged his concerns and agreed to follow LRC Staff: Greg Hager, Committee Staff plan to deal with the species is by aggressive up with Mr. Gent and Representative Blanton Administrator; Chris Hall, Van Knowles, Jean harvesting. about the issue. Ann Myatt, Brandi Norton, William Spears, In response to a question from Deer Insurance Claims Shane Stevens, Joel Thomas; Dexter Horne, Representative Carney, Ron Brooks, Fisheries Jeff Harper, a representative from Kentucky Graduate Fellow; and Jay Jacobs, Committee Director, confirmed Asian Carp are living in Farm Bureau, spoke to the committee about deer Assistant. every tributary associated with the Mississippi related motor vehicle accidents and the economic Introduction of Guests and Ohio Rivers as far north as Louisville. Lakes impact for the insurance industry and the state. Senator Carroll introduced Josh Gray Barkley and Kentucky are the only reservoirs In 2016, Kentucky Farm Bureau had 7,553 deer from Paducah, who is a sophomore at Liberty known to have Asian Carp. The department’s plan related claims, amounting to more than $28 University. is to impact the population by mass harvesting. million in claims. Mr. Harper says Farm Bureau Senator West introduced constituents Eric Three processing centers exist in Kentucky and has hard numbers for vehicular insurance claims, and Michelle Crawford. are looking to expand. In 2016, two million but crop loss due to deer is harder to calculate. Minutes for July 13, 2017 pounds of Asian Carp were harvested across He did note there is currently a study taking Upon motion by Representative the state. Commissioner Johnson noted Fish place with the University of Kentucky regarding Rothenburger and second by Representative and Wildlife would like for the harvest to be crop loss, which may shed some light on the Simpson, the minutes for July 13, 2017 were around five million pounds from the lakes alone economic impact across the state. approved by voice vote. to keep the fish under control. The department Mr. Harper went on to show his appreciation Presentation by Officials of the Cabinet is looking at a public/private partnership to the committee and the Department of Fish and for Economic Development solution by recruiting a new fish harvesting and Wildlife for its cooperation and his appreciation Ms. Smith said that the cabinet’s mission distribution company to help process the goal for the ideas coming out of the Deer Working is to create and maintain jobs and increase of more than five million pounds per year. An Group. investment. The cabinet works with clients, additional incentive to fishing Asian Carp is the Minutes consultants, local governments, the federal state is offering five cents per pound in addition Having achieved quorum, the minutes of government, other state agencies, and utilities. to the 15 cents per pound the processing center the July 5, 2017 meeting were approved without She described the membership of the Partnership is paying for carp. The Department of Fish and objection, upon motion by Representative Board, the governing body for the cabinet. Wildlife hopes these incentives will help kick- Blanton and Seconded by Co-Chair St. Onge. She summarized the organizational start a commercial fishing industry in western Announcements structure of the cabinet. The Department for Kentucky focusing on Asian Carp. Per Co-Chair Turner, the Interim Joint Business Development includes the Office of In response to a question from Committee Meeting on Tourism, Small Business Research and Public Affairs and the Bluegrass Representative York regarding commercial and Information Technology will be held on State Skills Corporation. The Kentucky Economic fishing, Commissioner Johnson confirmed the September 21, 2017 at 1:00 p.m. Development Finance Authority (KEDFA) is current boat launch sites are sufficient for the Adjournment attached to the Office of Financial Services. types of fishing boats being used in Kentucky. He There being no further business, the meeting There is also an Office of Legal Services. acknowledged the possibility of larger ramps for was adjourned at 3:22 p.m. The cabinet can lower the cost of doing larger boats if needed in the future. business through four main mechanisms: tax Responding to a question from PROGRAM REVIEW AND incentives, cash programs, other programs, and Representative Gibbons-Prunty, Ron Brooks INVESTIGATIONS COMMITTEE workforce programs. Tax incentive programs reviewed the origination of the Asian Carp Minutes are performance-based. Staff review applications problem starting with catfish farms in Arkansas 2017 Interim and present them to KEDFA for approval. Staff in the 1970s. Asian Carp were seen as a biological August 11, 2017 monitor companies for compliance annually. solution to mitigate algae blooms in catfish Call to Order and Roll Call Kentucky Business Investment Program ponds. Unfortunately, no one could foresee the The Program Review and Investigations (KBI) is the most popular tax incentive program. problems the carp would cause if they got out Committee met on Friday, August 11, 2017, at To qualify, the company must create at least 10 of the fisheries. He noted there was no going 12:00 noon, in Room 131 of the Capitol Annex. new full-time jobs with a minimum investment back to the source of the problem, however, a Representative Lynn Bechler, Chair, called the of $100,000. An incentive may be reduced if large group of fishing programs throughout the meeting to order and led the audience in the agreed-upon targets are not met. Since July 2009, Mississippi River Basin receive federal funding Pledge of Allegiance. The secretary called the there have been 446 approvals with a projected for preventing Asian Carp from expanding roll. value of investment of more than $6 billion and further up the Ohio River. Present were: nearly 40,000 new jobs to be created. In response to a question from Members: Senator Danny Carroll, Co- To qualify for incentives through the Representative Blanton on behalf of a constituent Chair; Representative Lynn Bechler, Co-Chair; Kentucky Enterprise Initiative Act, there is a regarding the hiring practices of the Department Senators Wil Schroder, Reginald Thomas, and $500,000 minimum investment in eligible costs. of Fish and Wildlife, Commissioner Johnson and Stephen West; Representatives Brian Linder, There are statutory limits on total funding per Colonel Coffey explained the hiring process for Donna Mayfield, Rob Rothenburger, Arnold fiscal year. Since the program’s inception, there the department and said they would look into Simpson, and Walker Thomas. have been 577 approvals with a projected value the issue. Guests: Katie Smith, Executive Director, of investment of more than $13 billion. Guest Speaker Office of Financial Services; Sarah Butler, The Kentucky Reinvestment Act focuses Mr. Roy Gent came before the committee as Director, Financial Incentives Division; Bobby on retaining jobs in Kentucky. To qualify, a firm a concerned citizen regarding police officer and Aldridge, Assistant Director, Compliance must have a $2.5 million minimum investment traffic safety on rural roads. Chairman Turner Division; Cabinet for Economic Development. in qualified costs and must retain at least 85

46 2017 Interim LEGISLATIVE RECORD percent of existing full-time employment. Since The cabinet is working on statistics for the across the state are huge assets in recruiting. A July 2009, there have been 38 approvals with a program. Information on the status of each shortage of qualified workers is a big obstacle. projected value of investment of $1.1 billion and company meeting its targets is on the cabinet’s In response to a question from Senator 9,800 jobs retained. website. The programs that are working best Schroder, Ms. Smith said the Commonwealth The Kentucky Small Business Tax Credit is are KBI, the Kentucky Enterprise Initiative Seed Capital Fund focuses on making equity for firms with fewer than 15 employees that are Act, the Kentucky Reinvestment Act, the Small investments in Kentucky to get companies to creating full-time jobs by investing in qualifying Business Tax Credit, the Angel Investment Tax settle here. There are several Japanese companies equipment or technology. Tax credits range from Credit, and the Small Business Credit Initiative. in Kentucky. Kentucky’s offices in Japan and $3,500 to $25,000 per year. Since 2011, the credit The cabinet is working to create a report with Germany have been effective as a mechanism has resulted in more than 1,200 new jobs and information on companies once they have for working with companies that are looking to $13.1 million in investment. Total funding is up located in Kentucky. Results vary by year. When relocate and expand. to $3 million per fiscal year. incentives are not met, there is a claw back for In response to questions from Representative The Angel Investment Tax Credit is those in the cash program, disbursements are Bechler, Ms. Smith said the cabinet is working available to individuals who invest in qualified reduced for performance-based incentives, and on analyzing how much is given in tax incentives small businesses with fewer than 100 employees. tax incentives are reduced. compared to taxes received. Hopefully, this Investors provide startup capital and receive In response to questions from Senator information will be available this year. If a a tax credit of up to 50 percent of investments. Carroll, Ms. Smith said companies must meet 90 company locates or expands in Kentucky, it Maximum total funding is $3 million per percent of the job and wage requirements. Statute receives incentives under KBI. A company year. Since 2015, 383 investors and 138 small requires that a company be suspended from a looking to grow may receive incentives under businesses have qualified. Investments of $23 program if it falls below the program minimum. the Kentucky Reinvestment Act. A company million resulted in $9 million in tax credits. The cabinet does not have any data to explain cannot receive incentives from both programs There are other ongoing tax incentive whether incentives provided to businesses is simultaneously, but companies frequently receive programs and three older programs that are still a cause of corporate income tax revenue being incentives from both programs consecutively. being monitored. down. A company looking to locate in Kentucky Full communication with the cabinet is the best The second mechanism for lowering provides details on its requirements. Companies way for local areas to involve themselves in the business costs is cash programs, which include can visit the cabinet’s website to learn of process of attracting companies to locate to KEDFA loan and grant programs and the available sites and options. Local governments Kentucky. There is a vacancy on the Kentucky Kentucky Small Business Credit Initiative. The provide information on local incentives and Economic Development Partnership Board that initiative is for support of loan requests that are communicate with the cabinet frequently. The has not yet been filled. just outside acceptable underwriting standards. Small Business Program has been very successful In response to questions from Senator Since inception, the initiative has provided $17.1 with projects outside the golden triangle. The Carroll, Ms. Smith said regional marketing allows million in support for 180 loans. cabinet will provide a list of the sites of large- more marketing resources, such as financial Other programs to lower business costs scale company locations or expansions over the and multiple influences, working together to include industrial revenue bonds and providing past 5 to 10 years. attract companies. Compared to other states, seed capital. The Bluegrass State Skills Corporation In response to questions from Senator Kentucky is growing and doing a good job. The provides tax credits or cash reimbursement of up West, Ms. Smith said local area districts are good cabinet needs to work on attracting technology to 50 percent of eligible training costs for eligible about providing updated information on sites. and service companies. Companies want cash employees. Total program funding is limited to Some companies contact local areas directly incentives more than tax incentives, so the $2.5 million per year. The cabinet also assists rather than the cabinet. Local area officials can General Assembly should consider this. The with the Education and Workforce Development contact Samantha Kendrick, the Assistant to cabinet invested in the new aluminum facility Cabinet’s Kentucky Work Ready Skills Initiative. the Commissioner of Business Development, locating in Eastern Kentucky. Other states also Through the program, more than $200 million is to discuss their resources and potential invest in companies. being invested in workforce development. opportunities. In response to questions from Representative The number of employees at the Cabinet for In response to questions from Simpson, Ms. Smith said the cabinet is not always Economic Development has decreased from 115 Representative Rothenburger, Ms. Smith said the notified of job losses, so it is difficult to makes in 2006 to 67 in 2017. The fiscal year 2017 budget cabinet negotiates target wages higher than the comparisons to job gains. In Northern Kentucky, for the cabinet is $22.6 million. The cabinet is federal minimum wage requirement within KBI, Delta has decreased its presence despite likely to request additional funds for personnel, either 125 percent or 150 percent depending on government investments in infrastructure. The marketing, and foreign offices. The cabinet’s goals location. If a city or county does not have an cabinet is hopeful that the infrastructure assets are to be able to announce more than 17,000 new occupational or payroll tax, a donation of cash or will lure additional investments. jobs in 2017, move Kentucky into the top quartile land may meet the local participation provision In response to a question from in business-friendly state rankings, establish a for KBI. The cabinet will work with counties to Representative Bechler, Ms. Smith said it is more integrated workforce delivery service, and find a way to meet the provision if the normal difficult to educate people about tax incentives, build out the state’s entrepreneurial community. options will not work. Enhanced counties in especially the distinction between new and As of August 1, there has been nearly $7 billion the program do not require local support. The existing tax revenue. in announced investment this year and more cabinet will review the process of notifying local Representative Bechler said the Kentucky than 11,000 announced jobs. governments once a company is ready to activate. Reinvestment Act is very important. Knowing In response to questions from Representative In response to a question from how many businesses have stayed once the Simpson, Ms. Smith said KBI came about Representative Linder about key factors in incentives have expired would help people to because of problems with other programs. Each whether companies locate in Kentucky or not, know how well programs work. company is measured annually for compliance. Ms. Smith said utility rates and available sites The meeting was adjourned at 1:27 PM. THE KENTUCKY GENERAL ASSEMBLY 47 of those items selected for further review by NORTHERN KENTUCKY UNIVERSITY GOVERNMENT CONTRACT members of the committee. Representative Ruffalo Noel Levitz, LLC, 2018-100; REVIEW COMMITTEE Horlander seconded the motion, which passed Isaacson Miller, Inc., 2018-101. without objection. Committee Minutes STATE POLICE, DEPARTMENT OF August 14, 2017 A motion was made by Senator Wise to Powerphone, Inc., 1800000178. Call to Order and Roll Call consider as reviewed the Film Tax Incentive The Government Contract Review List, with exception of those items selected for TRANSPORTATION CABINET Committee met on Monday, August 14, 2017, at further review by members of the committee. J. Michael Jones and Associates, LLC, 10:00 AM, in Room 131 of the Capitol Annex. Representative Horlander seconded the motion, 1700002478; Kentucky Field Service Realty, Representative Stan Lee, Chair, called the which passed without objection. 1700002479; Keaton Real Estate Services, meeting to order, and the secretary called the LLC, 1700002483; Turner Restoration, roll. A motion was made by Senator Wise to LLC, 1700002836; Integrated Engineering, Present were: consider as reviewed the Film Tax Incentive 1700002938; DLZ Kentucky, Inc., 1800000123; Members: Representative Stan Lee, Co- Amendment List, with exception of those items DLZ Kentucky, Inc., 1800000180. Chair Senator Max Wise, Co-Chair; Senators selected for further review by members of the Julie Raque Adams, Julian M. Carroll, and Paul committee. Representative Horlander seconded UNIVERSITY OF KENTUCKY Hornback; Representatives Chris Fugate, Dennis the motion, which passed without objection. Champlin Architecture, A181070; JRA Horlander, and Diane St. Onge. Architects, A181080. Guests: Amy Shoemaker, Craig Dilger, and UNIVERSITY OF LOUISVILLE Paula Hensel. THE FOLLOWING PERSONAL Smith Group JJR, 18-018; Simpson LRC Staff: Kim Eisner, Jarrod Schmidt, and SERVICE CONTRACTS WERE REVIEWED Scarborough, LLC, 18-021. Kim Smith. WITHOUT OBJECTION: VETERANS AFFAIRS, DEPARTMENT OF DEFERRED ITEM: EARLY CHILDHOOD ADVISORY Symphony Diagnostics Services No.1, LLC, COUNCIL 1600001331-1. Compass Evaluation and Research, WESTERN KENTUCKY UNIVERSITY WESTERN KENTUCKY UNIVERSITY 1700002809. Woodall GIS & IT Consulting; 171805. A Contemporary Services Corporation, motion was made by Senator Wise to defer the EDUCATION, DEPARTMENT OF 171810; Encompass Digital Media, Inc., 171811. contract to the September 2017 meeting of the The Flippen Group, 1700002437. committee. Representative Lee seconded the WORKFORCE INVESTMENT, OFFICE motion, which passed. EDUCATIONAL TELEVISION, OF KENTUCKY Deloitte Consulting, LLP, 1700001991. A motion was made by Senator Wise to Christine Hutchins, 1700002941. approve Minutes of the July 2017, meeting of the committee. Representative Fugate seconded the FINANCE AND ADMINISTRATION THE FOLLOWING PERSONAL SERVICE motion, which passed without objection. CABINET - DIVISION OF ENGINEERING AMENDMENTS WERE REVIEWED Staggs and Fisher Consulting Engineers, A motion was made by Senator Wise WITHOUT OBJECTION: Inc., 1700002721. to consider as reviewed the Personal Service Contract List, with exception of those items HIGHER EDUCATION ASSISTANCE ADMINISTRATIVE OFFICE OF THE selected for further review by members of the AUTHORITY, KENTUCKY COURTS committee. Representative Horlander seconded Cranfill, Sumner & Hartzog LLP, Adams, Stepner, Woltermann and Dusing, the motion, which passed without objection. 1800000065. 1600003912. A motion was made by Senator Wise KENTUCKY COMMUNITY & DEPARTMENT FOR COMMUNITY to consider as reviewed the Personal Service TECHNICAL COLLEGE SYSTEM BASED SERVICES Contract Amendment List, with exception Economic Modeling Specialists Edward L. Palmer, 1700001422. of those items selected for further review by International, LLC, 712. EASTERN KENTUCKY UNIVERSITY members of the committee. Representative Carol Lee, 18-017. Horlander seconded the motion, which passed KENTUCKY LOTTERY CORPORATION without objection. Valenti Hanley, PLLC, 18-16-024-2. EDUCATION, DEPARTMENT OF Maria Isabel Pereira, 1700001581. A motion was made by Senator Wise LEGISLATIVE RESEARCH COMMISSION to consider as reviewed the Memoranda of Ronald K. Hambleton, 17/18-06. FINANCE AND ADMINISTRATION Agreement List, with exception of those items MILITARY AFFAIRS, DEPARTMENT OF CABINET - DIVISION OF ENGINEERING selected for further review by members of the Judy W. Warren, 1800000131. Schnabel Dam Engineering, Inc., committee. Representative Horlander seconded 1200002448; Patrick D. Murphy Company, Inc., the motion, which passed without objection. MOREHEAD STATE UNIVERSITY 1300002659; Paladin, Inc., 1400001412; Bowser- Sign Language Network of KY, Inc., 18-025. Morner, Inc., 1500001064; EOP Architects, PSC, A motion was made by Senator Wise 1500001370; Myers Jolly Architects, 1500001832; to consider as reviewed the Memoranda of MURRAY STATE UNIVERSITY Stantec Consulting Services, Inc., 1500002881; Agreement Amendment List, with exception SAJ, Inc., 014-18.

48 2017 Interim LEGISLATIVE RECORD Greg Best Consulting, Inc., 1600003924; Ross County Board of Education, 1700002504; Schools, 1800000042; Bell County Board of Tarrant Architects, Inc., 1700002129. Floyd County Board of Education, 1700002531; Education, 1800000043; Bellevue Independent KCTCS, 1700002564; Council on Postsecondary School, 1800000044; Boone County Board of JUSTICE CABINET Education, 1700002579; Education Professional Education, 1800000045; Boone County Board of Mark Bernstein, DDS, 1700000273; Axis Standards Board, 1700002655; Allen County Education, 1800000046; Calloway County Board Forensic Toxicology, Inc., 1700000746. Board of Education, 1700002843; Ballard County of Education, 1800000047; Campbell County MURRAY STATE UNIVERSITY Board of Education, 1700002845; Bath County Board of Education, 1800000048; Casey County Rick Walter/Boehl, Stopher & Graves, LLP, Board of Education, 1700002846; Bowling Green Board of Education, 1800000050; Caverna 010-16. Independent Board of Education, 1700002847; Independent Board of Education, 1800000051; Boyd County Board of Education, 1700002849; Christian County Board of Education, NORTHERN KENTUCKY UNIVERSITY Covington Independent Board of Education, 1800000052; Clinton County Board of Education, The Sanchez Law Firm, PC, 2017-107. 1700002853; Fleming County Board of 1800000053; Corbin Independent Board of Education, 1700002856; Grayson County Board Education, 1800000054; Daviess County Board TRANSPORTATION CABINET of Education, 1700002859; Henderson County of Education, 1800000057; Daviess County GRW Engineers, Inc., 0700004081; Board of Education, 1700002860; Jessamine Board of Education, 1800000058; Dayton HDR Engineering, Inc., 1200002612; Palmer County Board of Education, 1700002861; Independent Schools, 1800000059; Erlanger Engineering Company, 1400000708; QK4, Kenton County Board of Education, 1700002863; Elsmere Board of Education, 1800000061; 1400003194; QK4, 1400003299; Palmer Lawrence County Board of Education, Erlanger Elsmere Board of Education, Engineering Company, 1400003301; CDM 1700002864; Livingston County Board of 1800000062; Frankfort Independent Board Smith, Inc., 1500000059; Integrated Engineering, Education, 1700002866; Magoffin County Board of Education, 1800000063; Glasgow Board of 1500000077; CDP Engineers, Inc., 1500001103; of Education, 1700002867; Marshall County Education, 1800000064; Green County Board of Stantec Consulting Services, Inc., 1500001400; Board of Education, 1700002868; Muhlenberg Education, 1800000070; Greenup County Board Strand Associates, Inc., 1500001637; HDR County Board of Education, 1700002870; of Education, 1800000071; Hardin County Board Engineering, Inc., 1500002157; HDR Scott County Board of Education, 1700002873; of Education, 1800000072; Hardin County Board Engineering, Inc., 1600000446; HDR Simpson County Board of Education, of Education, 1800000074; Hardin County Board Engineering, Inc., 1600000468. 1700002874; Trigg County Board of Education, of Education, 1800000076; Hardin County Board UNIVERSITY OF KENTUCKY 1700002875; Union County Board of Education, of Education, 1800000077; Hart County Board HGA Architects & Engineers, LLC, 1700002876; KCTCS, 1700002879; Hancock of Education, 1800000079; Hart County Board A151140; Ross Tarrant Architects, Inc., A161110; County Board of Education, 1700002883; of Education, 1800000080; Hart County Board Grace Consulting, Inc., K17-228. Anderson County Board of Education, of Education, 1800000081; Hazard Independent 1700002884; Western Kentucky University, Board of Education, 1800000082; Henderson WESTERN KENTUCKY UNIVERSITY 1700002886; Kentucky Valley Education, County Board of Education, 1800000083; Multi, 161807; The National Center for 1700002895; Bardstown Independent Board of Henderson County Board of Education, Drug Free Sport, Inc., 161825; Kerrick Bachert Education, 1800000014; Barren County Board 1800000084; Hopkins County Board of Law Firm, 161827. of Education, 1800000015; Beechwood Board Education, 1800000085; Kenton County Board of Education, 1800000016; Bullitt County Board of Education, 1800000086; Livingston County of Education, 1800000017; Carlisle County Board of Education, 1800000087; Madison THE FOLLOWING MEMORANDA Board of Education, 1800000020; Crittenden County Board of Education, 1800000088; OF AGREEMENTS WERE REVIEWED County Board of Education, 1800000021; Madison County Board of Education, WITHOUT OBJECTION: Crittenden County Board of Education, 1800000090; Marion County Board of Education, 1800000022; Cumberland County Board of 1800000091; Middlesboro Independent Board of DEPARTMENT FOR ENVIRONMENTAL Education, 1800000023; Franklin County Board Education, 1800000092; Monroe County Board PROTECTION of Education, 1800000024; Fulton County Board of Education, 1800000093; Montgomery County Banklick Watershed Council, 1700002743. of Education, 1800000025; Knox County Board Board of Education, 1800000094; Owensboro of Education, 1800000026; Lee County Board of Independent Board of Education, 1800000095; DEPARTMENT FOR FAMILY RESOURCE Education, 1800000027; Ludlow Independent Russell Independent Board of Education, CENTERS & VOLUNTEER SERVICES Board of Education, 1800000028; McCracken 1800000100; Shelby County Board of Education, Project Unite, 1800000075. County Board of Education, 1800000029; 1800000101; Todd County Board of Education, Murray Independent Board of Education, 1800000102; Warren County Board of Education, DEPARTMENT FOR PUBLIC HEALTH 1800000030; Pendleton County Board of 1800000103; Washington County Board of University of Louisville, 1700002276. Education, 1800000032; Pineville Independent Education, 1800000104; Webster County Board DEPARTMENT OF WORKPLACE Board of Education, 1800000033; Rowan County of Education, 1800000105; Whitley County STANDARDS Board of Education, 1800000034; Russell County Board of Education, 1800000106; University of Department for Public Health OSHA Board of Education, 1800000035; Russellville Wisconsin Madison, 1800000117; Scott County Laboratory Services, 1800000010. Independent School District, 1800000036; Board of Education, 1800000121; Newport Southgate Independent Board of Education, Independent Board of Education, 1800000238. EDUCATION, DEPARTMENT OF 1800000037; Spencer County Board of Education, Jefferson County Board of Education, 1800000038; Union County Board of Education, LIBRARIES & ARCHIVES, DEPARTMENT 1700002394; Save the Children, 1700002399; 1800000039; Union County Board of Education, FOR KET Foundation, 1700002402; Magoffin County 1800000040; Wayne County Board of Education, Council on Postsecondary Education, Board of Education, 1700002416; Garrard 1800000041; Williamstown Independent 1700002887. THE KENTUCKY GENERAL ASSEMBLY 49 OFFICE OF THE GOVERNOR, 1800000134; Thriller, LLC, 1800000135; NBC ADMINISTRATIVE REGULATION DEPARTMENT FOR LOCAL GOVERNMENT Universal, LLC d/b/a Oxygen Media Productions, REVIEW SUBCOMMITTEE Webster County Fiscal Court, 1700002802; LLC, 1800000139; Post Time Audiovisual Minutes of the August Meeting Webster County Fiscal Court, 1700002803; Services, Inc., 1800000143; Prana Movie, August 14, 2017 Henderson County Fiscal Court, 1800000129; LLC, 1800000160; Perception Kentucky, LLC, Call to Order and Roll Call City of New Castle, 1800000158; Ohio County 1800000162; Post Time Audiovisual Services, The August meeting of the Administrative Fiscal Court, 1800000177. Inc., 1800000274; Post Time Audiovisual Regulation Review Subcommittee was held on Services, Inc., 1800000275; Post Time Monday, August 14, 2017, at 1:00 PM, in Room PHYSICAL THERAPY, BOARD OF Audiovisual Services, Inc., 1800000277; Post 149 of the Capitol Annex. Representative Ken Occupations and Professions, 1800000220. Time Audiovisual Services, Inc., 1800000278. Upchurch, Chair, called the meeting to order, and the secretary called the roll. STATE POLICE, DEPARTMENT OF THE FOLLOWING FILM TAX Kentucky Medical Service, 1800000171. Present were: INCENTIVE AMENDMENTS WERE Members: Senator Ernie Harris, Co-Chair; TRANSPORTATION CABINET REVIEWED WITHOUT OBJECTION: Representative Ken Upchurch, Co-Chair; Kentucky State University, 1700002267. TOURISM DEVELOPMENT CABINET Senators Julie Raque Adams, Perry B. Clark, and Alice Forgy Kerr; Representatives Mary Lou WORKFORCE INVESTMENT, OFFICE Post Time Audiovisual Services, Inc., 1700002274. Marzian, Jason Petrie, and Tommy Turner. OF Guests: Becky Gilpatrick, Melissa Justice, Jefferson County Educational Cooperative, THE FOLLOWING PERSONAL Kentucky Higher Education Assistance 1700001252. SERVICE AMENDMENTS WERE SELECTED Authority; Jimmy Adams, Lauren Graves, THE FOLLOWING MEMORANDA FOR FURTHER REVIEW: Lisa Lang, Education Professional Standards Board; Megan Walton, State Board of Elections; OF AGREEMENT AMENDMENTS WERE UNIVERSITY OF LOUISVILLE REVIEWED WITHOUT OBJECTION: Steve Hart, Board of Pharmacy; John Marcus Isaacson Miller, Inc. 17-029; Amy Jones, Board of Alcohol and Drug Counselors; ADMINISTRATIVE OFFICE OF THE Shoemaker, Craig Dilger, and Paula Hensel Amber Arnett, Steve Beam, Ron Brooks, Karen COURTS discussed the contract with the committee. A Waldrop, Department of Fish and Wildlife Boulware Mission, Inc., 1700002925. motion was made by Representative St. Onge to Resources; Aaron Keatley, Pete Goodman, defer the contract to the September 2017 meeting Jon Maybriar, Department for Environmental AGRICULTURE, DEPARTMENT OF of the committee. Senator Wise seconded the Protection; William Codell, Miranda Denney, Multi, 1700001857; Multi, 1700001857; motion, which passed with Senator Carroll and Department of Juvenile Justice; Todd Allen Multi, 1700001857. Representative Horlander voting no. Cassie Blausey; Department of Education; Steve DEPARTMENT FOR BEHAVIORAL UNIVERSITY OF LOUISVILLE Humphress, Lee Walters, Department of Alcohol HEALTH, DEVELOPMENTAL AND Multi, 17-023 A-F; Amy Shoemaker, Craig Beverage Control; Rebecca Baylous, Molly Nicol INTELLECTUAL DISABILITIES Dilger, and Paula Hensel discussed the contract Lewis, Office of Health Policy; John Inman, Jill NASDDDS, 1700000149. with the committee. A motion was made by Lee, Robert Silverthorne Jr., Office of Inspector Representative Lee to disapprove the contract. General; Lee Guice, Samantha McKinley, EDUCATION, DEPARTMENT OF Senator Hornback seconded the motion, which Department for Medicaid Services; Greg Dutton, Pulaski County Board of Education, passed with Senator Carroll, Senator Raque Betty Whitaker, Kentucky Manufactured 1700001042; Owen County Board of Education, Adams, and Representative Horlander voting no. Housing. 1700001755; Murray State University, LRC Staff: Sarah Amburgey, Stacy 1700002218. EXEMPTION REQUESTS: Auterson, Emily Caudill, Emily Harkenrider, Karen Howard, and Carrie Klaber. HIGHER EDUCATION ASSISTANCE ENERGY AND ENVIRONMENT The Administrative Regulation Review AUTHORITY, KENTUCKY CABINET Subcommittee met on Monday, August 14, 2017, Kentucky Higher Education Student Loan The Energy and Environment Cabinet and submits this report: Corporation, 1600003945. requested an exemption from the two-year Administrative Regulations Reviewed by budget biennial contracting restrictions for the Subcommittee: INFRASTRUCTURE AUTHORITY all Cleaner Commonwealth Fund (CCF) sub- Perry County Fiscal Court, 1500001026. HIGHER EDUCATION ASSISTANCE grants and loans funded through Federal EPA AUTHORITY: Kentucky Educational Excellence OFFICE OF THE GOVERNOR, 104(k) Revolving Loan Fund Grant, Cooperative Scholarship Program DEPARTMENT FOR LOCAL GOVERNMENT Agreement Number 95498412-0; 100% Federal 11 KAR 15:090. Kentucky Educational Bell County Fiscal Court, 1700001034. Funds. A motion was made by Senator Carroll Excellence Scholarship (KEES) program. Becky to grant the request to September 30, 2020. Gilpatrick, director of student aid, and Melissa THE FOLLOWING FILM TAX Representative Horlander seconded the motion, Justice, senior associate counsel, represented the INCENTIVES WERE REVIEWED WITHOUT which passed without objection. authority. OBJECTION: There being no further business, the meeting In response to a question by Co-Chair TOURISM DEVELOPMENT CABINET adjourned at 11:11 A.M. Harris, staff stated that the staff suggested- Kedric Jones, 1700002944; Donnybrook PSE, amendment clarified graduation standards for Inc., 1800000001; Duckworks, Inc., 1800000003; supplemental awards. Perception Movie, LLC, 1800000004; LPD Films, A motion was made and seconded to LLC, 1800000007; Wyckoff Film Company, LLC, approve the following amendments: (1) to amend

50 2017 Interim LEGISLATIVE RECORD the RELATES TO paragraph to add a citation; A motion was made and seconded with the goal of increasing fishing pressure on (2) to amend Section 5 to delete an out-of-date, to approve the following amendments: to the species to combat the encroachment. Asian superfluous time frame reference; (3) to amend amend the NECESSITY, FUNCTION, AND carp was a popular food in Europe and Asia. It Section 7 to clarify graduation standards for a CONFORMITY paragraph and Sections 1 and has the nutritional value of salmon, with less supplemental award; and (4) to amend Sections 2 to comply with the drafting and formatting contaminants than any other Kentucky fish. 1, 2, 4, 6, and 10 to comply with the drafting and requirements of KRS Chapter 13A. Without In response to a question by Co-Chair formatting requirements of KRS Chapter 13A. objection, and with agreement of the agency, the Upchurch, Mr. Brooks stated that the Asian Without objection, and with agreement of the amendments were approved. carp invasion had exploded over the last five agency, the amendments were approved. 31 KAR 4:040. Procedures for absentee (5) to ten (10) years. Because the carp jumped EDUCATION AND WORKFORCE voting in county clerk’s office. and caused impediments to the recreational use DEVELOPMENT CABINET: Education Help America Vote Act 2002 of Kentucky waterways, the species was having Professional Standards Board: Teaching 31 KAR 6:020. Provisional voting. a negative impact on tourism. The impact was Certificates GENERAL GOVERNMENT CABINET: expected to increase exponentially over the next 16 KAR 2:020. Occupation-based career Board of Pharmacy five (5) years, with possibly devastating impacts and technical education certification. Jimmy 201 KAR 2:076. Compounding. Steve Hart, to tourism in certain regions of Kentucky. The Adams, executive director; Lauren Graves, executive director, represented the board. jumping of the Asian carp damaged boats and executive staff advisor; and Lisa Lang, general A motion was made and seconded to sometimes caused injuries. counsel, represented the board. approve the following amendments: (1) to 301 KAR 1:195. Repeal of 301 KAR 1:192. A motion was made and seconded to amend the STATUTORY AUTHORITY Game approve the following amendments: (1) to paragraph to correct a citation; and (2) to 301 KAR 2:049. Small game and furbearer amend the RELATES TO and STATUTORY amend the NECESSITY, FUNCTION, AND hunting and trapping on public areas. AUTHORITY paragraphs to correct citations; CONFORMITY paragraph and Sections 2, 4, A motion was made and seconded and (2) to amend the NECESSITY, FUNCTION, and 5 to comply with the drafting requirements to approve the following amendment: to AND CONFORMITY paragraph and Sections of KRS Chapter 13A. Without objection, and amend the NECESSITY, FUNCTION, AND 1, 2, 4, and 5 to comply with the drafting and with agreement of the agency, the amendments CONFORMITY paragraph to comply with the formatting requirements of KRS Chapter 13A. were approved. drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the GENERAL GOVERNMENT CABINET: Without objection, and with agreement of the agency, the amendments were approved. Board of Alcohol and Drug Counselors agency, the amendment was approved. Educator Preparation 201 KAR 35:080. Voluntary inactive and Water Patrol 16 KAR 5:020. Standards for admission to retired status. John Marcus Jones, assistant 301 KAR 6:005. Boat registration fees. educator preparation. attorney general, represented the board. ENERGY AND ENVIRONMENT A motion was made and seconded to A motion was made and seconded CABINET: Department for Environmental approve the following amendments: to amend to approve the following amendments: to Protection: Division of Water: Public Water Sections 1 and 2 to comply with the drafting amend the RELATES TO and NECESSITY, Supply requirements of KRS Chapter 13A. Without FUNCTION, AND CONFORMITY paragraphs 401 KAR 8:010. Definitions for 401 KAR objection, and with agreement of the agency, the and Sections 4 and 5 to comply with the drafting Chapter 8. Peter Goodmann, executive director; amendments were approved. and formatting requirements of KRS Chapter Aaron Keatley, commissioner; and Jon Maybriar, Advanced Certification and Rank 13A. Without objection, and with agreement of executive director, represented the department. 16 KAR 8:040. Ranking of occupation- the agency, the amendments were approved. In response to questions by Co-Chair based career and technical education teachers. TOURISM, ARTS AND HERITAGE Harris, Mr. Goodmann stated that the division In response to questions by Co-Chair CABINET: Department of Fish and Wildlife had virtually eliminated backlogged permit Harris, Mr. Adams stated that, with efforts Resources: Fish processing over the last two and a half (2 ½) to attract more teachers but ensure quality, 301 KAR 1:152 & E. Asian Carp and years. The extended deadline for certain facilities’ content competency was paired with pedagogy. Scaled Rough Fish Harvest Program. Amber permit processing was due to the complexity of New teachers engaged in a two (2) year New Arnett, counsel; Ron Brooks, fisheries director; engineering plans for water treatment facilities. Teacher Induction Program sponsored by the and Karen Waldrop, deputy commissioner, The standing stakeholder workgroup, which met Kentucky Department of Education. The on- represented the department. every other month, was apprised of this proposal the-job induction program included teaching In response to questions by Co-Chair and came to a consensus that the extended pursuant to a provisional certificate along with Harris, Mr. Brooks stated that there were not deadline was appropriate. pedagogy coursework and opportunities to enough commercial fishermen to combat 401 KAR 8:011. Repeal of 401 KAR 8:070, address concerns with colleagues. Prospective the Asian carp encroachment; therefore, this 401 KAR 8:101, 401 KAR 8:550, and 401 KAR teachers were required to meet a rigorous list of administrative regulation was being amended to 8:600. criteria prior to the provisional certificate. Ms. ease commercial fishing license fees. Kentucky 401 KAR 8:020. Public and semipublic Lang stated that the New Teacher Institute tried, had three (3) businesses currently operating water systems; submetering; general provisions. but was unable in some cases, to begin teaching to harvest and process Asian carp, but more A motion was made and seconded to approve training prior to commencement of the school were needed. Approximately two (2) million the following amendment: to amend Section year. pounds of Asian carp was harvested annually, 2 to comply with the drafting requirements of STATE BOARD OF ELECTIONS: Forms but Kentucky’s goal was five (5) million pounds KRS Chapter 13A. Without objection, and with and Procedures annually. The department was developing plans agreement of the agency, the amendments were 31 KAR 4:010. Voter identification cards. for a public – private partnership to more approved. Megan Walton, counsel, represented the board. efficiently process Asian carp to ensure freshness, THE KENTUCKY GENERAL ASSEMBLY 51 401 KAR 8:040. Laboratory certification. of local administrator. A motion was made and seconded 401 KAR 8:075. Consumer confidence A motion was made and seconded to approve the following amendments: to reports and public notification. to approve the following amendments: to amend the RELATES TO and NECESSITY, 401 KAR 8:100. Design, construction, and amend the NECESSITY, FUNCTION, AND FUNCTION, AND CONFORMITY paragraphs approval of facilities and approval timetable for CONFORMITY paragraph to comply with the to correct citations. Without objection, and with 401 KAR Chapter 8. drafting requirements of KRS Chapter 13A. agreement of the agency, the amendments were A motion was made and seconded to Without objection, and with agreement of the approved. approve the following amendments: (1) to amend agency, the amendments were approved. 902 KAR 55:041. Repeal of 902 KAR 55:020, the TITLE to make a technical correction; and CABINET FOR HEALTH AND FAMILY 902 KAR 55:025, 902 KAR 55:030, and 902 KAR (2) to amend Sections 1 and 2 to comply with SERVICES: Office of Health Policy: Certificate 55:035. the drafting requirements of KRS Chapter 13A. of Need 902 KAR 55:095. Prescription for Schedule Without objection, and with agreement of the 900 KAR 6:090. Certificate of need filing, II controlled substance - authorization of oral agency, the amendments were approved. hearing, and show cause hearing. Rebecca prescription for immediate administration, 401 KAR 8:250. Inorganic and organic Baylous, assistant general counsel of the Health facsimile transmission, or partial filing. chemical sampling, analytical techniques, Services Administrative Hearing Branch, and A motion was made and seconded to approve maximum contaminant levels, radionuclides, Molly Lewis, deputy general counsel and acting the following amendments: (1) to amend the and secondary standards. director of the Certificate of Need Program, RELATES TO and STATUTORY AUTHORITY Division of Waste Management: Solid Waste represented the office. paragraphs to correct statutory citations; and (2) Planning A motion was made and seconded to to amend the NECESSITY, FUNCTION, AND 401 KAR 49:011. General provisions relating approve the following amendments: (1) to amend CONFORMITY paragraph and Sections 1 and to area solid waste management plans. Section 1 to: (a) revise one (1) definition and re- 4 to comply with the drafting requirements of A motion was made and seconded to alphabetize; and (b) delete three (3) superfluous KRS Chapter 13A. Without objection, and with approve the following amendment: to amend definitions; and (2) to amend Section 3 to comply agreement of the agency, the amendments were Section 3 for clarity. Without objection, and with with the drafting requirements of KRS Chapter approved. agreement of the agency, the amendment was 13A. Without objection, and with agreement of Department for Medicaid Services: approved. the agency, the amendments were approved. Medicaid Services 401 KAR 49:080. Solid waste grant funds and 900 KAR 6:125. Certificate of need annual 907 KAR 1:041E. Repeal of 907 KAR 1:018 solid waste collector and recycler registration. surveys. (Amended After Comments) and 907 KAR 1:019. Lee Guice, director of policy 401 KAR 49:091. Repeal of 401 KAR 49:040, Data Reporting and Public Use Data Sets and operations, and Dr. Samantha McKinley, 401 KAR 49:090, and 401 KAR 49:210. 900 KAR 7:030. Data reporting by health pharmacy director, represented the department. JUSTICE AND PUBLIC SAFETY care providers. Payments and Services CABINET: Department of Juvenile Justice: Child A motion was made and seconded to approve 907 KAR 3:066 & E. Nonemergency medical Welfare the following amendments: to amend Section transportation waiver services and payments. 505 KAR 1:130. Department of Juvenile 4 to comply with the drafting requirements of 907 KAR 3:206E. Repeal of 907 KAR 3:205. Justice Policies and Procedures: juvenile KRS Chapter 13A. Without objection, and with Outpatient Pharmacy Program services community. William Codell, attorney, agreement of the agency, the amendments were 907 KAR 23:001 & E. Definitions for 907 and Miranda Denney, deputy commissioner, approved. KAR Chapter 23. represented the department. 900 KAR 7:040. Release of public data sets 907 KAR 23:010 & E. Outpatient pharmacy EDUCATION AND WORKFORCE for health care discharge data. program. DEVELOPMENT CABINET: Board of A motion was made and seconded to A motion was made and seconded to Education: Department of Education: Office of approve the following amendments: to amend the approve the following amendments: (1) to Learning Support Services STATUTORY AUTHORITY and NECESSITY, amend the RELATES TO and STATUTORY 704 KAR 7:051. Repeal of 704 KAR 7:050. FUNCTION, AND CONFORMITY paragraphs AUTHORITY paragraphs to correct statutory Todd Allen, deputy general counsel, and to correct statutory citations. Without objection, citations; and (2) to amend Sections 4 and 11 Cassie Blausey, policy advisor, represented the and with agreement of the agency, the to comply with the formatting requirements of department. amendments were approved. KRS Chapter 13A. Without objection, and with PUBLIC PROTECTION CABINET: Department for Public Health: Office of agreement of the agency, the amendments were Department of Alcoholic Beverage Control: Inspector General: Controlled Substances approved. Licensing 902 KAR 55:015. Schedules of controlled 907 KAR 23:020 & E. Reimbursement for 804 KAR 4:230. Extended hours substances. John Inman, deputy inspector outpatient drugs. supplemental licenses. Steve Humphress, general general, and Jill Lee, pharmacist consultant, The following administrative regulations counsel, and Lee Walters, counsel, represented represented the department. were deferred or removed from the August 14, the department. A motion was made and seconded to 2017, Subcommittee agenda: A motion was made and seconded to approve approve the following amendments: to amend the DEPARTMENT OF MILITARY AFFAIRS: the following amendments: to amend Section RELATES TO and NECESSITY, FUNCTION, Division of Administrative Services: Military 1 to comply with the drafting requirements of AND CONFORMITY paragraphs and Section 1 Assistance Trust Funds KRS Chapter 13A. Without objection, and with to correct citations. Without objection, and with 106 KAR 2:040. Survivor benefits for death agreement of the agency, the amendments were agreement of the agency, the amendments were of a National Guard or Reserve Component approved. approved. member. Local Administrators 902 KAR 55:040. Excluded nonnarcotic GENERAL GOVERNMENT CABINET: 804 KAR 10:010. Appointment notification substances. Board of Embalmers and Funeral Directors

52 2017 Interim LEGISLATIVE RECORD 201 KAR 15:030. Fees. Guests: Ms. Janice Tomes, Deputy State Senator Carroll, and approved by unanimous roll 201 KAR 15:050. Apprenticeship and Budget Director; Mr. Scott Aubrey, Director, call vote. supervision requirements. Division of Real Properties, Finance and Ms. Tomes reported two Finance and 201 KAR 15:110. Funeral establishment Administration Cabinet; Ms. Ashley Adams, Administration Cabinet pool projects in excess criteria. Financial Analyst, Kentucky Infrastructure of $600,000. The first was the L&N Structural Board of Licensure for Occupational Authority; Mr. Steve Starkweather, Financial Repair project for $1,404,077, consisting of roof Therapy Analyst, Office of Financial Management; and and structural repairs to the L&N Building in 201 KAR 28:200. Continuing competence. Mr. Jeremy Ratliff, Deputy Director, Legal Louisville. The second was the Capitol Campus 201 KAR 28:235. Telehealth occupational Services, Kentucky Housing Corporation. Parking Garage Phase III project for $1,333,000, therapy services. LRC Staff: Katherine Halloran, Committee involving repairs. No action was required. PUBLIC PROTECTION CABINET: Office Staff Administrator; Julia Wang, Legislative Lease Reports from the Finance and of Occupations and Professions: Board of Analyst; and Jenny Wells Lathrem, Committee Administration Cabinet Registration for Professional Geologists Assistant. Mr. Aubrey reported one lease modification 201 KAR 31:010. Fees. Approval of Minutes (July 18, 2017) for the Department of Workers Claims in TRANSPORTATION CABINET: A motion was made by Representative Jefferson County. The total renovation costs were Department of Vehicle Regulation: Division of Moffett to approve the minutes of the July 18, $121,174.50. The department agreed to pay for Driver Licensing: Administration 2017 meeting. The motion was seconded by approximately 30 percent of those renovations, 601 KAR 2:030 & E. Ignition interlock. Representative Rudy and approved by voice vote. amounting to $35,859.50 over the remaining EDUCATION AND WORKFORCE Correspondence and Information Items lease term expiring June 30, 2024. No action was DEVELOPMENT CABINET: Department of Ms. Halloran stated that there were neither required. Workplace Development: Office of Employment correspondence nor information items for Mr. Aubrey next reported a lease renewal and Training: Unemployment Insurance review. with an annual cost exceeding $100,000 for the 787 KAR 1:070. Reasonable time for Project Reports from the Universities Department of Insurance in Franklin County. protesting claim. Ms. Halloran referenced three equipment The lease renewal involved a rate increase to PUBLIC PROTECTION CABINET: purchases in excess of $200,000 by postsecondary $9.45 per square foot excluding utilities and Department of Insurance: Health Insurance institutions. The University of Louisville reported janitorial services. As part of the lease agreement Contracts the purchase of a spectrometer for the James the Department will pay $25 per space for 806 KAR 17:575. Pharmacy benefit Graham Brown Cancer Center from endowment parking space per month for 21 parking spaces managers. funds and the University of Kentucky reported out of the 149 included in the lease. The total CABINET FOR HEALTH AND FAMILY the purchase of a surgical microscope and a annual cost is $374,708 through June 30, 2021. SERVICES: Department for Public Health: cardiac imaging system for the A.B. Chandler Radon Hospital from restricted funds. No action was In response to questions from Senator 902 KAR 95:040. Radon Contractor required. Carroll, Mr. Aubrey said when the lease was Certification Program. expanded several years ago, 21 additional parking Department for Community Based Services: Project Reports from Finance and spaces in the parking garage were incorporated Supplemental Nutrition Assistance Program Administration Cabinet into the agreement and the costs were passed on 921 KAR 3:025. Technical requirements. Ms. Tomes reported two unbudgeted to the department. 921 KAR 3:042. Supplemental Nutrition federally funded projects. The first was the A motion was made by Senator Carroll Assistance Program employment and training Kentucky Transportation Cabinet’s request to approve the new lease, seconded by program. of $1,528,700 for the Rowan County Weigh Representative Moffett, and approved by The Subcommittee adjourned at 1:35 p.m. Station project, entailing the demolition and unanimous roll call vote. until September 11, 2017, at 1 p.m. replacement of the existing Rowan County Reports from the Office of Financial Weigh Station. The second was the Education Management and Workforce Development Cabinet, Kentucky Ms. Adams reported four Kentucky CAPITAL PROJECTS AND BOND Educational Television’s (KET) request of Infrastructure Authority loan requests: The City OVERSIGHT COMMITTEE $20,750,000 for the Federal Communications of Prestonsburg is assuming two Fund A (Clean Minutes Commission (FCC) Repacking project. The Water State Revolving Fund - CWSRF) loans as August 15, 2017 project includes the purchase, installation, and a result of its acquisition of Southern Water and Call to Order and Roll Call maintenance of television transmitters and will Sewer District’s sewer assets, as well as some of The Capital Projects and Bond Oversight be funded by reimbursement from the FCC’s district’s water assets. The total of the two loan Committee met on Tuesday, August 15, 2017, Television Broadcast Relocation Fund. The FCC assumptions is $691,113. The acquisition was at 1:00 PM, in Room 169 of the Capitol Annex. has required all KET channels to be reassigned approved by the Public Service Commission Senator Stan Humphries, Chair, called the necessitating the purchase and installation of the on May 2, 2017. The City of Catlettsburg has meeting to order, and the secretary called the new equipment in all sixteen KET transmittal requested a $470,000 increase to a previously roll. locations. approved Fund A loan in the amount of Present were: A motion was made by Representative Rudy $2,485,000, bringing the total to $2,955,000. This Members: Senator Stan Humphries, Co- to roll the two new projects into one vote. The will be a 20 year loan with a .75 percent interest Chair; Representative Phil Moffett, Co-Chair; motion was seconded by Senator Carroll and rate. The City of Williamsburg has requested Senators Julian M. Carroll and Rick Girdler; approved by voice vote. a Fund A loan in the amount of $2,456,489 to Representatives Larry Brown, Will Coursey, and A motion was made by Representative Rudy complete the requirements of a 2010 agreed Steven Rudy. to approve the two new projects, seconded by order against the city. In addition, the loan will THE KENTUCKY GENERAL ASSEMBLY 53 also refinance a 2002 bond issue which had a In response to a question from Senator Independent, Bracken County, Bullitt County, 4.50 percent interest rate. This Fund A loan will Humphries, Mr. Ratliff said that if the properties and Pineville Independent. The transactions be a 20 year loan with a .25 percent interest rate. were to be sold again, then the PILOT would represented an estimated $14.225 million of Senator Carroll made a motion to roll not apply. If the properties were to be sold to a renovations and improvements to schools. No the KIA loans into one vote. The motion was non 501(c)(3), then the property would come tax increase was necessary to fund these projects. seconded by Representative Rudy, and approved back on the tax rolls. If the properties were to A motion was made by Representative by voice vote. be sold to another 501(c)(3) organization, then Moffett to approve the school bond issues, A motion was made by Senator Carroll the properties may remain off the tax rolls. Mr. seconded by Representative Brown, and to approve the KIA loans, seconded by Ratliff stated that it is his understanding that all approved by unanimous roll call vote. Representative Moffett, and approved by local officials are aware of this possibility. New Local School Bond Issues with 100 unanimous roll call vote. Representative Rudy expressed his Percent Locally-Funded Debt Service Mr. Starkweather presented one new appreciation for KHC’s work and its inclusion Ms. Halloran said there was one local school bond issue for approval: Kentucky Housing of legislators and local officials. He stated that bond issue reported with 100 percent local debt Corporation (KHC) Tax-Exempt Conduit everyone he has spoken with has found a new service support in the amount of $400,000. The Multifamily Housing Revenue Bonds, Allied comfort level with the financing and that proceeds, plus $200,000 in cash, will match Paducah Portfolio Project, Series 2017, to be he believes good things will result from the the $1.5 million allocated from the Education issued in an amount not to exceed $35,000,000. transaction. and Workforce Development Cabinet’s Work These bonds will be used to finance the Senator Carroll commended those Ready Skills initiative for the renovation of the acquisition, rehabilitation, and equipping of 735 instrumental in creating the PILOT and Area Technology Center in Green County. The units in Paducah and Murray. The borrower is a commented on the importance of PILOTs to bond issue involved neither School Facilities 501(c)(3) and has negotiated a payment in lieu of local governments. He mentioned the potential Construction Commission participation nor a taxes (PILOT) with localities as the properties to for revenues to the City of Frankfort after the tax increase. All disclosure information was filed be acquired will be exempt from property taxes redevelopment of the Capital Plaza area. He also and no action was required. due to the borrower’s 501(c)(3) status. Public noted that between about 87 and 95 percent of Updated Debt Issuance Calendar notices and hearings have taken place and the properties within the Frankfort Independent Also included in the members’ folders legislators within the affected districts have been School District are owned by the Commonwealth was the debt issuance calendar. No action was notified. and that no PILOT is made to assist the school required. Senator Humphries said he wished to thank district. With there being no further business, the KHC for negotiating the PILOT as properties Additionally, Senator Carroll stated that, as meeting was adjourned at 1:31 p.m. will be taken from the tax rolls and localities still Governor, he arranged for the Commonwealth to need to pay their bills. In response to Senator make an annual PILOT to the City of Frankfort CAPITAL PLANNING ADVISORY Humphries’s request to explain the difference for fire and police protection on state owned BOARD between the Allied Paducah Portfolio Project property. Over time that amount has increased Minutes of the 3rd Meeting transaction as compared to other KHC conduit to $90,000. of the 2017 Calendar transactions presented to the committee, Mr. In response to questions from Representative August 15, 2017 Ratliff said that other KHC tax-exempt conduit Moffett and Senator Humphries, Mr. Ratliff Call to Order and Roll Call bond issues are applied towards the bond cap stated that the borrower will pay 100 percent The 3rd meeting of the Capital Planning allocated by the Commonwealth each year. This of the current property tax liability with a two Advisory Board was held on Tuesday, August 15, particular transaction falls under a different percent annual increase thereafter. 2017, at 9:30 AM, in Room 129 of the Capitol section of the Internal Revenue Code in which A motion was made by Senator Carroll Annex. Representative Daniel Elliott, Chair, bonds proceeds are to be used by a 501(c)(3) to approve the new bond issue, seconded called the meeting to order, and the secretary organization to finance a project pursuant to its by Representative Moffett, and approved by called the roll. tax-exempt purpose. unanimous roll call vote. Present were: Whether KHC issues the bonds, enabling Senator Humphries reiterated his thanks to Members: Senator Stan Humphries, Co- the 501(c)(3) to utilize the better terms the staff of KHC for their work with local officials Chair; Representative Daniel Elliott, Co-Chair; associated with tax-exempt financing, or the to ensure an outlet for the loss of property from Senator Whitney Westerfield, Representative DJ 501(c)(3) utilizes conventional financing; the the tax rolls. Johnson; Scott Brinkman, Charles Byers, Laurie 501(c)(3) would be acquiring real property in Mr. Starkweather reported one previously Dudgeon, Stephen Knipper, Mark Overstreet, the Commonwealth, resulting in that property approved bond issue: Kentucky Housing Kaelin Reed, and Katie Shepherd. coming off the tax rolls. Acting as the borrower’s Corporation (KHC) Tax-Exempt Multifamily Guests: Dr. Aaron Thompson, Executive Vice conduit issuer is consistent with KHC’s mission, Housing Revenue Notes, Downing Place President, Shaun McKiernan, Senior Associate, as a percentage of the units are restricted for Apartments Project, Series 2017, which sold Budget and Finance, Council on Postsecondary affordability, and allowed negotiation of the by private placement on July 20, 2017. The Education; Brad Holajter, Executive Director, PILOT to preserve property tax revenue. issue financed the purchase, rehabilitation, and Office of Management and Administrative Senator Humphries said that he would equipping of a 193 unit complex in Lexington. Services, and Lieutenant Colonel Chad White, like it noted that at the last meeting, Mr. Lewis The net proceeds on the sale were $12.802 Kentucky State Police, Justice and Public Safety Diaz, Bond Counsel, Dinsmore and Shohl, made million with a net interest rate of 4.56 percent Cabinet; Brad Montell, Deputy Secretary, Greg references to the distinction between a 501(c)(3) over 35 years. No action was required. Rush, Executive Director, Office of Budget and and a for-profit entity utilizing KHC as a conduit Mr. Starkweather reported four new School Administration, Education and Workforce and thanked KHC for its work with local officials Facilities Construction Commission (SFCC) Development Cabinet; Anthony Dunbar, in both Murray and Paducah. school district bond issues for Barbourville Director of Facilities Management, Cabinet for

54 2017 Interim LEGISLATIVE RECORD Health and Family Services; Charles Snavely, to protect the state’s investment in existing to request a pool of funds totaling $600-$700 Cabinet Secretary and Bruce Scott, Deputy infrastructure and facilities, and $1.7 billion for million general funds, with $40-$60 million Secretary, Energy and Environment Cabinet; new and expanded space to support increases allocated for information technology and Robin Fields Kinney, Associate Commissioner, in enrollment and research activity. The study equipment projects. This request is part of the Office of Finance and Operations, Walter Hulett, recommended a sustained investment (multi- three-biennia (six-year) $1.8 billion capital Facilities Manager, Department of Education; biennia) to address asset preservation and new budget plan that would use a pooled approach Commissioner Ryan Quarles, Keith Rogers, construction needs simultaneously (blended for allocating capital funding among institutions. Chief of Staff, Lee McIntosh, Staff Assistant, approach), and to address asset preservation In response to a question from Senator Kathy Harp Willis, Director of Information needs projected to grow from $5.1 billion in Humphries, Mr. McKiernan stated that the VFA Technology, Department of Agriculture; and 2011 to $6.3 billion by 2016. Over the past ten Study determined a total of about $7.3 billion is Katie Smith, Executive Director, Office of biennia there has been $1.6 billion in new or needed for asset preservation for postsecondary Financial Services, Economic Development expanded state-funded education and general institution facilities. CPE plans to address 20 Cabinet. facilities, $495 million in state-funded asset percent of the identified need, which is $1.4 LRC Staff: Shawn Bowen, Julia Wang, and preservation, and a ratio of new construction to billion ($700 million from the campuses and Jennifer Luttrell. asset preservation that equals 3.3 to 1. $700 million from the state.) During the past five Approval of Minutes For the 2018-20 budget period, CPE will biennia, the state has funded about 3.6 percent of A motion to approve the minutes of the July make a request that, when combined with the estimated total $7.3 billion asset preservation 18, 2017 meeting was made by Representative institutional matching funds, addresses 20 need. Johnson, seconded by Mr. Knipper, and approved percent of asset preservation needs ($1.4 billion) Responding to questions from Mr. Knipper, by voice vote. as identified in the VFA study. CPE will continue Dr. Thompson and Mr. McKiernan replied that Information Items to advocate for a pooled approach, and will all campuses have significant asset preservation Ms. Bowen stated that two items originally request a pool of funding for each campus to be needs with the smaller campuses needing more. scheduled for presentation at the August meeting, matched and used to address asset preservation. As for the IT projects, several campuses did not the state debt report and the Beaver Dam Service Each institution’s pool will be supported by a list request funds because their IT projects have not Area report, will be held over until the September of projects in priority order. been funded in the past. meeting. She then reported that two agencies have CPE will not make a request for general In response to a question from amended their agency capital plans. The Finance fund-supported bonds for new and expanded Representative Elliott, Dr. Thompson stated that and Administration Cabinet has amended its space in 2018-20, however, CPE will include a CPE would appreciate the board’s endorsement capital plan to include one new general fund request for general fund-supported bonds for an of CPE’s approach to funding postsecondary capital information technology project for the information technology and equipment pool. institution capital needs. Commonwealth Office of Technology. The CPE’s focus represents a much more Consideration of Agency Plans project is the Statewide Microwave Network aggressive approach to funding asset preservation The Capital Planning Advisory Board Kentucky Emergency Warning System Shelter than in previous biennia. CPE’s rationale for this received testimony regarding nine state agency Upgrade (KEWS), Cabinet Priority #7, Agency proposal is a growing inventory of facilities, capital plans: Council on Postsecondary Priority #2, $4,954,000 GF. The University of infrastructure, and systems in need of asset Education, Kentucky Court of Justice, Justice and Louisville amended the project description for preservation, increasing construction costs (up Public Safety Cabinet, Education and Workforce its top general fund request – STEM Instruction 17 percent between 2007 and 2013, based on Development Cabinet, Cabinet for Health and Building project. During testimony at the VFA estimates), minimal state investment in Family Services, Energy and Environment board’s July meeting, the university testified that asset preservation since 2007 ($262 million in Cabinet, Department of Education, Department this renovation project would include several appropriations versus $7.3 billion need), and of Agriculture, and Economic Development additional buildings, however, the buildings renovating aging facilities and systems to reduce Cabinet. The testimony included discussion of were not identified in the project description operating costs through greater efficiencies. capital construction, information technology, the university submitted in its capital plan. The CPE’s report on campus priorities included equipment needs, and grant/loan program needs project description has been amended to include a listing of each university’s top five asset for the period 2018-2024. the additional buildings in the project. preservation projects and a listing of KCTCS’ Council on Postsecondary Education Presentation – Council on Postsecondary top ten asset preservation projects. Four of nine Dr. Aaron Thompson, Executive Vice Education Capital Project Review institutions listed an asset preservation project President, and Shaun McKiernan, Senior As part of the capital planning process, the as their #1 priority, two as their #2 priority, and Associate, Budget and Finance, CPE, gave a Council on Postsecondary Education (CPE) three institutions did not request general fund brief overview of the CPE capital plan. For is responsible for the review and evaluation of support for new construction. 2018-20, CPE’s capital request will include only capital construction and information technology CPE staff was asked to evaluate general information technology capital projects: Military (IT) projects submitted by the postsecondary fund-supported information technology projects Student Initiative project, Commonwealth institutions. Dr. Aaron Thompson, Executive submitted by the institutions. Seventeen projects College (HB265) Technology System project, and Vice President, and Shaun McKiernan, Senior were submitted with a total cost of $67.5 million; Enhance Kentucky Regional Optical Network Associate, Budget and Finance, discussed the seven projects were identified as high value, Infrastructure Enhancement project with a total review process and the corresponding results. with a total cost of $27 million. These projects request of $7 million. In its report to the board, CPE provided address network infrastructure upgrades and In response to a question from Mr. Knipper, background information on the VFA Study instructional and administrative system needs Mr. McKiernan and Dr. Thompson stated that conducted in 2007. The VFA Study identified and support increased network speeds and CPE will contact the Department of Veterans’ $6.8 billion in cumulative capital investment systems for e-learning. Affairs in regard to assistance with the Military needs by 2011; $5.1 billion for asset preservation For the 2018-20 budget period, CPE plans Student Initiative project. This project will help THE KENTUCKY GENERAL ASSEMBLY 55 service members, veterans, and their families earn caseload, seats needed, and minimum space totaling $254,331,800. a degree at a Kentucky institution by translating required for judges and staff. Energy and Environment Cabinet previous military instruction and training into In response to questions from Mr. Reed Secretary Charles Snavely and Deputy college credit. The project scope is $2,000,000 and Representative Elliott, Ms. Dudgeon said Secretary Bruce Scott, gave a brief overview of general funds. The project requires a centralized to address safety concerns in the court facilities, the cabinet’s capital plan. For the six-year period, catalog of programs and modules to facilitate there will be a single point of entry to each the capital plan included 17 proposed projects course and degree program comparisons, facility. totaling $64,731,000. integration with systems at institutions to allow Justice and Public Safety Cabinet In response to questions from Senator evaluation and seamless transfer of credits, and a Brad Holajter, Executive Director, Office of Humphries about the Wildland Fire Equipment user-friendly homepage and help desk support. Management and Administrative Services, gave Replacement Schedule project ($5,320,000 In response to a question from a brief overview of the cabinet’s capital plan. For general funds), Mr. Snavely stated that D5 or Representative Johnson, Dr. Thompson stated the six-year period, the capital plan included 51 D6 dozers will be purchased, the project would that CPE has started on the Military Student proposed projects totaling $671,544,000. be competitively bid, and old dozers would be Initiative project by hiring a retired major Representative Elliott asked Mr. Holajter disposed of. He added that the dozers must be from the military to identify how to make the to further discuss the potential use of a public- small enough to transport on a rollback trailer. connections. CPE hopes the project will be well private partnership for the Construct 300-man [This project will establish a 15-year replacement underway within the next year and a half. The Dorm at Blackburn Correctional Complex schedule of ten dozer and transport units in the Commonwealth College (HB265) Technology project ($28,000,000 general funds). Mr. Holajter first year of the biennium and nine in the second System project ($4,000,000 general funds) is said the potential plans for a private-public year.] underway also at the University of Louisville and partnership model at the Blackburn Correctional Department of Education Western Kentucky University. Facility was a more efficient use of public dollars. Robin Fields Kinney, Associate Kentucky Court of Justice By funding the upfront budget costs and leasing Commissioner, Office of Finance and Operations, Laurie Dudgeon, Administrative Office of the building back to the state, the cost of the and Walter Hulett, Facilities Manager, gave a the Courts Director, gave a brief overview of project will be extended out over more years. brief overview of the department’s capital plan. the Kentucky Court of Justice capital plan. For In response to a question from Senator For the six-year period, the capital plan included the 2018-20 biennium, the capital request will Humphries regarding the Kentucky State Police 12 proposed projects totaling $21,880,000. include $3 million general funds to support Emergency Radio System Replacement project In response to a question from local bonds totaling $37,325,000, and for the ($141,500,000 general funds), Lieutenant Representative Elliott, Mr. Hulett stated a water 2020-2022 biennium, $791,100 general funds Colonel White replied that the entire amount of main leak in Brady Hall was causing the mold to support $9,650,000 local bonds. The Court funding requested for this project will be needed issue. of Justice capital plan includes two new court during the biennium in which it is requested. Department of Agriculture facilities for Bath and Butler counties, and The funding request cannot be broken down Commissioner Ryan Quarles, Keith renovation of five court facilities in the counties and spread out over several years. He explained Rogers, Chief of Staff, Lee McIntosh, Staff of Clinton, Crittenden, Jefferson, Jessamine, and that all digital equipment, including parts for the Assistant, and Kathy Harp Willis, Director of Owsley. [For the court facility projects, amounts towers, posts, and vehicles, has to be replaced Information Technology, gave a brief overview are appropriated from the general fund for use simultaneously in order for the equipment to of the department’s capital plan. For the six-year allowance payments that support the debt service work. He added that Tennessee just completed period, the capital plan included one proposed for local bonds issued to construct the project.] a similar project for about the same amount of information technology project totaling In response to a question from Senator money. $3,349,400. Humphries as to what county offices will be In response to a question from Representative Economic Development Cabinet located in the Bath County Judicial Center, Ms. Johnson, Lieutenant Colonel White stated that Katie Smith, Executive Director, Office Dudgeon responded that the Court of Justice is the Daviess County 911 upgrade is a separate of Financial Services, gave a brief overview located in the Bath County Courthouse Annex, system, but that it will tie into the new requested of the cabinet’s capital plan. For the six-year and the County Judge Executive may have plans digital system once completed. period, the capital plan included three proposed to renovate the old space and lease it to executive In response to a question from Mr. Knipper, projects totaling $90,000,000. Funds are being branch offices to ease the burden on the county. Lieutenant Colonel White replied that he was not requested to finance three grant/loan programs She stated that several county bonded projects aware of a study done on aircraft maintenance administered by the cabinet: the High-Tech are projected are scheduled for completion, costs. Construction/Investment Pool, the Economic which should help address space needs across Education and Workforce Development Development Bond Program, and the Kentucky the state. Cabinet Economic Development Finance Authority. In response to a question from Mr. Knipper, Brad Montell, Deputy Secretary, and Greg In response to a question from Ms. Dudgeon said the decision to renovate a court Rush, Executive Director, Office of Budget and Representative Elliott, Ms. Smith replied that the facility or build a new one is based on a feasibility Administration, gave a brief overview of the state has invested $7 billion towards economic study by the county’s project development cabinet’s capital plan. For the six-year period, development in Kentucky this year. She added board. The board consists of the County Judge the capital plan included 13 proposed projects that this was a record amount of investment, the Executive, Chief Circuit Judge, Chief District totaling $63,308,000. previous record was $5.1 billion. Court Judge and Circuit Clerk, Kentucky Bar Cabinet for Health and Family Services Adjournment Association member, and a Citizen-At-Large Anthony Dunbar, Director of Facilities The next meeting is scheduled for Tuesday, member. Factors taken into account when Management, gave a brief overview of the September 19, 2017, in Room 129 Annex starting deciding whether to renovate or build a new cabinet’s capital plan. For the six-year period, at 10:00 AM. There being no further business, court facility include the county’s population, the capital plan included 28 proposed projects the meeting was adjourned at 11:55 AM.

56 2017 Interim LEGISLATIVE RECORD attendance-related legislation and attendance of survey respondents suggested Senate Bill 200, EDUCATION ASSESSMENT AND issues. The survey requested detailed steps that the juvenile justice bill, increased the number of ACCOUNTABILITY REVIEW districts are using to address attendance issues. student absences. The survey was sent to all superintendents and Mr. Rupard said that being absent during SUBCOMMITTEE Minutes the response rate was 100 percent; however, the first month of school is a large predictor of August 15, 2017 not all items on the survey were addressed 100 a student becoming chronically absent. Because Call to Order and Roll Call percent. The U.S. Department of Education’s attendance rates can sometimes obscure the The 3rd meeting of the Education Assessment Office of Civil Rights (OCR) data was used to chronic absenteeism rate of individual students and Accountability Review Subcommittee was compare Kentucky’s chronic absenteeism rates within schools, it could possibly lead to schools held on Tuesday, August 15, 2017, at 1:00 PM, in to those of other states and the nation. with similar attendance rates experiencing Room 129 of the Capitol Annex. Senator Mike Mr. Rupard detailed major conclusions from substantially different chronic absenteeism rates. Wilson, Chair, called the meeting to order, and the report, including an analysis on attendance, the secretary called the roll. results from chronic absenteeism modeling, and Mr. Rupard said truant students are those Present were: a summary of the electronic survey conducted absent or tardy from school without a valid Members: Senators Mike Wilson, Alice by OEA. The survey included specific questions excuse for three or more days. A habitually truant Forgy Kerr, and Max Wise; Representatives to measure the districts’ perceptions of SB 97 student is one who has been truant two or more Daniel Elliott, Derrick Graham, and Steve Riley. from 2013 and SB 200 from 2014. times. Kentucky is one of 22 states providing Guests: Wayne Young, KASA; Christina In previous literature, chronically absent the definition of truant, with Illinois being the Water, KDE; and Alex Spurrier, KDE. was defined as students absent more than 10 only surrounding state offering a state definition. LRC Staff: Joshua Collins, Yvette Perry, and percent of scheduled school days. The number of Local Boards of Education are allowed to set the Chris White. days used for the purpose of this study was 17.4 definitions for excused and unexcused absences David Wickersham, Deputy Director of days. The days were calculated using 10 percent which can impact the number of truant or the Office of Education Accountability (OEA), of the weighted number of calendar days based habitually truant students. introduced OEA’s two new investigators, Terri on enrollment per district, or 174 days. The According to those definitions, over 60 Collins and Katherine (Katy) Moran. study contains 12 major conclusions and was percent of Kentucky students were truant in 2016, Senator Wilson recognized Karen Timmell’s broken down into attendance, rates of chronic while 40 percent were habitually truant students long-standing service to the Commonwealth of absenteeism, outcomes, survey results, and other under the terms of KRS 159.150. These values Kentucky and extended congratulations on her findings. have remained consistent for each of the past upcoming retirement in September from the Regarding attendance-related conclusions, five years, which led OEA to Recommendation Office of Education Accountability. OEA identified a majority of students as truant 2.1. The prevalence of truancy in Kentucky may . Approval of June 20, 2017 Minutes each year. Compared to seven surrounding reduce the impact of labelling students as truant On a motion by Representative Elliott and states, Kentucky has the second highest rate of or habitually truant. OEA’s analysis suggests the a second from Senator Wise, the minutes of the chronic absenteeism overall, with the highest General Assembly should explore how schools June 20, 2017, were accepted by voice vote. rates concentrated in Eastern Kentucky and and local boards of education implement KRS Presentation: School Attendance in Jefferson County. 159.150, including reviewing and revising the Kentucky Mr. Rupard said findings show that Free or statute to redefine truancy in a manner that Senator Wilson invited the OEA to begin Reduced-Priced Lunch (FRPL) students have a provides schools and districts assistance for their presentation of School Attendance in higher rate of chronic absenteeism compared to students suffering negative consequences of poor Kentucky, which explain attendance trends at the students not eligible for FRPL. When comparing attendance. state and district levels and includes comparisons the rates between races/ethnicities, black students The chronic absenteeism rate for Kentucky to other states. have the highest rates, although it appears this and the surrounding states was broken down into Members of the OEA staff introduced figure is higher due to a higher number of black the elementary, middle, and high school levels themselves as Bart Liguori, Research Division students qualifying for FRPL. as well as overall national ranking. Mr. Rupard Director, Logan Rupard, Research Analyst, and referred to a chart showing the percentage of Chris Riley, Research Analyst. For elementary students, chronic chronically absent students, the state ranking, absenteeism is highest for those in kindergarten and the overall national percentage and ranking. Mr. Rupard said the study analyzed full st attendance in Kentucky at the state, district, and 1 grade. OEA found that chronically absent The information was compiled from OCR data school, and student levels and compares the and mobile students are negatively impacted and and established chronic absenteeism at 15 days state to the nation. It used Kentucky data to students transferring within a single district are to allow for comparison between states. For examine several issues associated with school particularly impacted. Once a student misses the ranking, one is given to the highest rate of attendance in national research. A particular 10 days, academic performance begins to be chronic absenteeism and 51 is the lowest. negatively impacted. At the elementary level, Kentucky had the focus on data findings was relevant as the state th prepares to implement new federal requirements In response to OEA’s survey, the majority 24 highest rate in the nation and third highest of the Every Student Succeeds Act (ESSA), which of survey respondents indicated that Senate Bill among surrounding states. This is the only level 97, the law raising compulsory attendance age to Kentucky is below the national average. At requires measuring chronic absenteeism. The th study used a variety of data sources, including 18, had increased the number of truant students. the middle school level, Kentucky had the 19 the student information system (SIS), known as Almost two-thirds of the respondents implied highest rate nationally, and second compared the number of students entering home school to surrounding states. At the high school level, Infinite Campus, which included almost all of th Kentucky attendance-related data. increased. Data also indicated the number of Kentucky had the 10 highest rate in the nation, OEA administered an electronic survey students entering home school increased over 4 percentage points higher than the national to measure districts’ feedback regarding the previous five years. Approximately 55 percent average and the highest among surrounding THE KENTUCKY GENERAL ASSEMBLY 57 states. days for the purpose of this study) and measures relative to their peers who were not chronically Mr. Rupard referred to a map with the how many students are missing regularly. absent in all outcomes outlined in the report top ten percent of schools by level. The map Another chart detailed the attendance rate regardless of race or ethnicity. In relation to displays a large concentration of schools in and chronic absenteeism rate for the previous achievement gaps, the outcome showed that Jefferson County and eastern Kentucky. The five years. The attendance rate held steadily among the 11th grade population of students top ten percent of schools include students around 94.5 percent. The chronic absenteeism that were FRPL and homeless, those that were with higher FRPL rates, a higher percentages rate fluctuated between 13 percent in 2013 and chronically absent struggled more on the ACT of black and Hispanic students, students with 15 percent in 2016, without much impact on the relative to students who were not chronically an individualized education program (IEP) and attendance rate. absent. As with race and ethnicity, OEA found homeless students, and corresponds to schools The attendance rate for the state, as well as this relationship holds true for each group and with the highest rates of chronic absenteeism. two elementary schools, were provided. Both outcome analyzed within the report. Referring to another chart, Mr. Rupard schools had an attendance rate higher than the OEA focused on the relationship between explained chronic absenteeism rates by program state, or 95-96 percent; however, when comparing chronic absenteeism and promotion rates. The eligibility. He said FRPL and Non-Limited the same schools’ chronic-absenteeism rates, the promotion rates in grades K-11 for chronically English Proficiency (NLEP) student chronic results were quite different with Elementary 1 absent students ranged from 86 to 88 percent absenteeism rates have nearly double compared having a rate under five percent and elementary while non-chronically absent students were at to Non-FRPL and Limited English Proficiency 2 having a rate of 18 percent. While these schools 94 percent. During the 2015 school year, the (LEP) students. Homeless and IEP students are located in different parts of the state, they promotion rate gap was especially pronounced are higher than students not included in these have a similar percentage of FRPL students. in grades 9 through 11, with the promotion groups, with over one in four homeless students Mr. Chris Riley said prior research attempted rate gap between chronically absent and non- and nearly one in five students with an IEP being to show the relationship between chronic chronically absent students extending to more chronically absent. absenteeism and various educational outcomes. than 14 percent. The chronic absenteeism rates by race This report explored how chronic absenteeism Mr. Riley said the negative relationship and ethnicity for the previous five school years is associated with test scores, including the between chronic absenteeism and educational were displayed in another chart. Black students American College Testing (ACT) and Kentucky outcome is apparent. OEA used statistical were recorded with the highest rate at nearly 17 Performance Rating for Educational Progress modeling to test the relationship of various percent in 2016. However, as a later analysis will (K-PREP) assessments. OEA also examined the absence levels on test scores and grade point show, poverty seems to be a large contributor to relationship between chronic absenteeism and average (GPA). The report provided figures of chronic absenteeism. GPAs, promotion rates, and student discipline. the projected effect of five different absence Chronic absenteeism rates associated with Statistical modeling was used to determine levels on ACT composite scores and unweighted discipline were also a factor. Almost half of the relationship of the listed explanatory GPAs. The modeling indicates 10 to 15 absences students having an out-of-school suspension variables with the probability of student being of any kind is the projected point at which ACT and 25 percent of students receiving an in-school chronic absenteeism. The output of the model composite scores and unweighted GPAs begin removal were chronically absent. Twelve percent assigned a percentage point effect for each of the to trend downward. This finding led to OEA’s of students receiving neither an in-school or out- explanatory variables within the model relative Recommendation 3.1, which suggests that the of-school removal were chronically absent. While to the mean of the control group. In the example KDE should consider lowering the threshold for days missed due to an out-of-school suspension explained, white female students had zero chronic absenteeism to ten absences rather than were included toward chronic absenteeism days, absences during the first month of instruction, ten percent of days enrolled. time missed for in-school removal were not did not receive FRPL or IEP services, and were A primary focus of the report is the negative included. not homeless. According to the analysis, an relationship between chronic absenteeism and In 2016, the chronic absenteeism rate absence of any kind during the first month of educational outcomes; however, OEA also for kindergarten students was 15 percent and instruction increases the probability of chronic examined the relationship between outcomes decreased through third grade. In grades 4 absenteeism by nearly 11 percentage points and student mobility. Students are considered through 12, almost a third of students were relative to the control group mean. The model mobile if they made at least one transfer during chronically absent. While grades 2-5 have the was designed to be additive, therefore more than the school year. ACT composite scores for lowest rates, kindergarten and 1st grades have one explanatory variable may be applied. As an students in grade 11 who did not transfer during rates above 10 percent, which led to OEA’s next example, an FRPL student with one absence the school year scored 2 points higher than recommendation. during the first month would have a 19.4 percent students who transferred outside their district Recommendation 2.2 suggests Kentucky probability of being chronically absent before and more than three points higher than students school districts, with support from the Kentucky the end of the school year. The model suggests who transferred within the same district. Department of Education (KDE), should that absences early on in the school year can be Students that transferred within the same school monitor student attendance in kindergarten and predictive factors of chronic absenteeism. district during the school year struggled the 1st grade, as those students are more likely to This analysis led to OEA’s Recommendation most in terms of ACT composite scores during be chronically absent than other students at the 2.3, which proposes Kentucky school districts, the observation period. elementary level. with the support and guidance of the KDE, In the spring and summer of 2016, OEA Mr. Rupard said the attendance rate is the identify students at risk of becoming chronically administered an electronic survey to all proportion of students in attendance during absent early in the school year. districts which included multiple choice and the school year and measures the percentage of The ACT composite score gap for 11th grade open response items as a means of measuring student in the building. The chronic absenteeism students were 2 points higher for students not feedback. Open response items were reviewed rate is the percentage of students missing (17.4 chronically absent in comparison to the students by OEA staff and responses were coded into who were. Chronically absent students struggled different constructs with similar responses and

58 2017 Interim LEGISLATIVE RECORD detailed some of the findings. and homeschool transfers increased. Actual data factors be provided which contribute to students Mr. Riley said Senate Bill 97, raising the indicated a 54.5 percent decrease in dropouts and from the demographic areas shown, in addition compulsory attendance age to 18, was voluntary a 37.2 percent increase in homeschool transfers. to FRPL. Mr. Ligouri said that another factor is until 55 percent, or 96 districts, adopted the policy. Representative Riley, as a former high students who are absent within the first month By January of 2015, the boards of education of all school administrator, said many absences are due have a larger impact on chronic absenteeism. 173 school districts had approved raising the age to lack of parental control and commonly found Mr. Riley said other factors are homelessness of compulsory attendance. in single-parent homes. While the attendance and students having an IEP, as well as gender and Relating to questions regarding Senate Bill decrease began when the compulsory age race. 97, Mr. Riley highlighted two responses in which changed to 18, the number of students entering Representative Graham suggested schools 51.6 percent of respondents indicated an increase homeschool is often done to keep the parents out have trained personnel to help build relationships in the number of truant students; however, he of trouble with the schools and courts. In many between students, faculty, and administration said the number of truant students has remained cases, the parents did not complete high school. to better understand, relate to, and work relatively constant during the previous five years. Chronic absenteeism is a huge problem and more with children who come from economically Mr. Riley said students entering home schooling predominant in certain areas of the state. He said disadvantaged families. Mr. Riley said the survey increased 65.4 percent. Comparing home school we must figure out ways to get students in school specifically asked how districts are addressing the to dropout trends in grades K-8, home school and improve the academic environment. issue. The presentation showed the most common transfers increased 27 percent. In high school, In response to a question from Senator Kerr, results of responses from the districts, which the increase was 37 percent but the number of Mr. Rupard said the percentage of district survey included over half of the respondents indicating dropouts decreased by 55 percent. respondents who indicated Senate Bill 97 had home visits or family outreach. OEA lacked The impacts of Senate Bill 200, the substantial an impact on the number of students enrolling time to evaluate programs in specific schools overhaul of Kentucky’s juvenile justice system, in homeschooling is 65.4 percent. The actual or districts but could gather information in a amended or created new obligations for a variety increase of high school students enrolling in follow-up study and provide successful methods agencies and individuals. More than half of the home school from 2012 to 2016 was 37.2 percent. being utilized in other areas and incorporate respondents, or 53.9 percent, indicated SB 200 In response to a question by Senator Kerr, those ideas into districts experiencing less increased the number of absences and forty- Mr. Wickersham said the criteria for opening a success. Representative Graham added that it is one percent reported that disciplinary events home school requires the parent notify the board important to address homeschool students not increased as well. for exemption from compulsory attendance and being properly educated. When OEA asked what attendance issues withdraw the student. Since home schools are Senator Wilson said committee staff will districts face, respondents specified 36.6 considered private schools under Kentucky law, send a reminder to members asking for items percent observed courts legislation, and lack of legislative, KDE and executive branch oversight which need to be included in the 2017 OEA consequences; 32.5 percent indicated truancy is limited. Senator Wilson added a parent must study. He added there are approximately 600,000 and chronic absenteeism; family and home issues file a letter with the school district and the district students in public education, but said OEA staff were highlighted by 17.9 percent; older students has the ability for additional oversight through will provide the actual number of homeschool by 14.6 percent; health related issues by 10.6 inspection of required homeschool records. students in the state. percent; doctor appointments by 8.1 percent; Mr. Wickersham confirmed that homeschools In response to a question from Senator Kerr, and home schools by 4.9 percent. One district are required by law to be open to inspection by Mr. Wickersham said a student cannot initiate associate superintendent noted students who are the Director of Pupil Personnel (DPP), which is homeschooling since a parent or guardian non-compliant with respect to school attendance written in the statute. is legally responsible for school the student’s face no real consequences. In response to questions from Representative attendance until age 18. Because school or formal Mr. Riley said OEA received common Graham, Mr. Wickersham suggested the OEA education is mandatory, it is unlikely a local responses from districts regarding how they could study laws in the other 49 states regarding school or district would discourage students were addressing their attendance issues and homeschool laws. Representative Graham said from attending public schools. He said the goal is gave the percentage of responses for each. These he believes Kentucky is the only state with no to attract and keep children in school to provide included home visits and family outreach at degree of strong homeschool oversight to ensure them opportunities of academic proficiency 50.4 percent; student incentives at 19.2 percent; students are receiving a proper education. Of the and access to available social activities. Mr. truancy diversion programs at 12.8 percent; many that operate in Kentucky, the DPPs have Wickersham said the frustration with Senate additional academic offerings at 7.2 percent; made an effort to visit the homes without success. Bill 200 may be due how school districts can health services referrals at 5.6 percent; and social He suggested the legislature introduce some kind use the court system to encourage attendance. worker involvement at 1.6 percent. of limited measures that could be administered One item Senate Bill 200 did not touch upon is In response to questions from Senator with the KDE or the 173 individual districts and that Kentucky’s educational neglect statutes are Wilson, Mr. Rupard said three or more days the measures should be closer to the local district focused clearly on the parent’s role in forcing of unexcused absences in the school year are level since kids entering homeschool affect their the student to come to school and there are considered truant and 17.4 days are considered budgets. While many homeschool programs have opportunities throughout KRS 159 enabling habitually truancy, for this study. While most great providers, he admits there are problems schools to collect fines assessed against parents previous research used 10 percent, OEA took an with others. Representative Riley requested for their children being chronically absent. average of the school calendar days per district OEA provide the exact number of students in Mr. Wickersham said the institutional interest based on enrollment, or 10 percent of 174. Kentucky who are enrolled in homeschool. Mr. is in encouraging attendance as opposed to There are no regulations or statutes in place and Riley said the FRPL is not the only indicator of discouraging it. ESSA has no set definition. KDE plans to use 10 rates of chronic absenteeism and that first-month In response to Senator Kerr’s question, Mr. percent to compute chronic absenteeism. Survey absences are a larger contributor than poverty. Wickersham said the DPPs have clearly outlined respondents indicated the dropout rate was lower Representative Graham requested analytical statutory obligations to become familiar with THE KENTUCKY GENERAL ASSEMBLY 59 the child’s home situation and a reciprocal Mr. Rupard said that once publication Approval of the Minutes from the July 17, obligation to educate families about the standards have been created, OEA hopes the 2017 Meeting benefits of education, whether it be parents and visualizations will be added to OEA’s website and A motion to approve the minutes of the July grandparents. He said the General Assembly has viewed on computer, tablet, or phone and allow 17, 2017 meeting was made by Senator Meredith, made some provisions for education regarding interactive use. seconded by Senator Carroll, and approved by truancy and subsequent consequences. Upon a motion by Senator Kerr and a voice vote. (Interruption in question/answer session second Senator Wise, the report was accepted Status of Kentucky’s 1915(c) Medicaid for election of House Co-Chair while quorum is and passed by voice vote. Waiver Programs Senator Wilson said the next meeting will Stephen P. Miller, Commissioner, present) th Election of House Co-Chair be Tuesday, September 26 , at 1:00 p.m. and Department for Medicaid Services, Cabinet On a motion by Representative Graham and the committee anticipates adopting the 2018 for Health and Family Services, testified that a second by Representative Riley, Representative OEA Research Agenda at the October 17, 2017, Kentucky has 1.4 million people on Medicaid, of Elliott was nominated as the House Co-Chair. meeting. He reminded members to forward any which 90 percent are covered by five Managed On a motion by Representative Graham and a suggested topics to the EAARS committee staff Care Organizations (MCOs). The other 10 second by Representative Riley, nominations for research topics. percent are covered by Medicaid waivers and ceased and Representative Elliott was elected There being no further business, the meeting long-term care and represent $3 billion a year. House Co-Chair by voice vote. was adjourned at 2:15. The Department of Medicaid’s goal is to have Continuation of Questions on the 1915(c) HCBS waivers better organized and Presentation: School Attendance in Kentucky MEDICAID OVERSIGHT AND more cohesive. Commissioner Miller stated that Senator Wise expressed concern about ADVISORY COMMITTEE moving the 1915(c) waivers to the MCOs is only parental oversight, giving examples of when one Minutes one option that may be recommended during child has an appointment and the other children August 16, 2017 the redesign process. He stated the department miss school and come to the appointment as Call to Order and Roll Call will diligently review all options recommended. well. Agreeing with Representative Graham, he The Medicaid Oversight and Advisory Lori Gresham, Clinical Program Manager said it is important to pinpoint specific reasons Committee meeting was held on Wednesday, Senior, Department for Medicaid Services, relating to chronic absenteeism, whether it be August 16, 2017, at 2:00 PM, in Room 131 of the Cabinet for Health and Family Services, stated transportation or weather related. Capitol Annex. Senator Ralph Alvarado, Chair, from its inception in 1965, Medicaid has provided Representative Riley requested that the called the meeting to order, and the secretary comprehensive long-term care, however, care previously requested research on the exact called the roll. was only provided in an institutional setting. number of home schooled children be presented Present were: In 1981, the 1915(c) HCBS waiver program by grade to determine if it is more prevalent in Members: Senator Ralph Alvarado, was authorized by the Centers for Medicare high school than in elementary or middle school. Co-Chair; Representative Kimberly Poore and Medicaid Services (CMS) as an alternative Senator Wilson said less than three percent of Moser, Co-Chair; Senators Danny Carroll, to institutional care. CMS requires a state to children of overall students are homeschooled Morgan McGarvey, and Stephen Meredith; ensure the same level of care in the community in Kentucky and asked Representative Riley to Representatives Jim Gooch Jr., Joni L. Jenkins, as provided in an institutional setting. States add this item to the list of study topics to the and Melinda Gibbons Prunty. receive matching federal funds for services in committee. Guest Legislator: Representative Ken the home or the community. States must provide Mr. Rupard said new data visualization was Fleming. ongoing quality assurance to demonstrate that utilized throughout the presentation. For today Guests: Stephen P. Miller, Commissioner, the services are being rendered per the approved only, the links below are available to everyone Jill R. Hunter, Deputy Commissioner, Lori waiver and regulation to continue receiving and in the future hopes these will be displayed Gresham, Clinical Program Manager Senior, and the federal match and to retain what has been on the OEA webpage. He invited everyone to Donna Little, Department for Medicaid Services provided. access the website via phone or laptop for the (DMS), Cabinet for Health and Family Services Ms. Gresham stated that two waivers, the presentation. (CHFS); Jim Pettersson, Managing Director, Acquired Brain Injury (ABI) waiver and the ABI OEA introduced an interactive tool available Anne Jacobs, Managing Director, Holly Brown, Long-Term Care (LTC) waiver, target individuals to committee members and staff by logging on to Project Manager, and Jason Gerling, Home and who have acute and long-term care acquired bit.ly/oea-attendance and bit.ly/oea-attendance- Community Based Services (HCBS) Team Lead, brain injuries. The Home and Community Based map. Navigant Healthcare; Frank Huffman, Board (HCB) waiver is for individuals who are elderly One link shows an attendance map with Member, Protection and Advocacy for Persons or disabled and meet nursing facility level of care. chronic absenteeism rate for each district. with Developmental Disabilities (PADD); The Michelle P. Waiver (MPW) and the Supports The darker the blue color indicates the higher Arthur Campbell Jr., Activist; Johnny Callebs, for Community Living (SCL) waiver target incidents of chronic absenteeism. Filters for the Kentucky Association of Private Providers; individuals with intellectual or developmental school year and educational co-op and levels Mary Hass, Advocacy Director, Brain Injury disabilities. The Model II Waiver (MIIW) is for are shown as well. The levels are divided into Association of Kentucky; Diane Schirmer, M.Ed., individuals who are ventilator-dependent and elementary, middle, and high school grades. Corporate Director of Brain Injury Services, meet nursing facility level of care. DMS serves The other link shows the state chronic New Vista Behavioral Healthcare; Loretta approximately 23,272 individuals and 8,180 are absenteeism rate and the attendance rate and McGinty, Hosparus Health; Kitty Davidson, Tri- on a waitlist for a waiver slot. is available for years 2012-2016. Filters for this Generations; and Diana Merzweiler, Executive The ABI waiver provides intensive services display allow choosing one or multiple districts Director, Down Syndrome of Louisville, Inc. and support to adults with acquired brain to view side-by-side. LRC Staff: Jonathan Scott and Becky injuries working to re-enter community life. Lancaster. Services are provided exclusively in community

60 2017 Interim LEGISLATIVE RECORD settings. The LTC waiver program provides an design features of payment, provider types, and other states and found it is common to look at alternative to institutional care for individuals service definition. This impacts the ability of the interagency collaboration. Navigant is looking to that have reached a plateau in their rehabilitation agency to manage the program and the agency’s align these agencies so that CHFS is performing at level and require maintenance services to avoid ability to change the design as it works to improve maximum potential. Mr. Pettersson stated there institutionalization and to live safely in the the program. Navigant has worked with states to different ways to define and analyze quality. The community. The HCB waiver program provides ensure conflict free case management. Navigant cabinet has an opportunity to economize when services and supports to elderly people, children, is working to refine rate methodology and coordinating referrals and service provisions. and adults with disabilities to help them to reimbursement approaches. Driving statewide In response to questions from Senator remain in or return to their homes. The MPW service delivery network adequacy is another Meredith, Mr. Gerling stated Navigant will program requires a protected environment focus area for Navigant. CHFS has announced structure the stakeholder engagements by while learning living skills, having educational meetings across the Commonwealth to enhance creating smaller focus groups to obtain the experiences, and developing awareness of their stakeholder engagement. targeted feedback. Navigant will intentionally environment. The MIIW requires ventilator Ms. Jacobs stated the Navigant team is seek information and input from consumers support for at least 12 hours per day. The SCL working to access all six 1915(c) waiver programs. to get to the core of how services are directed. waiver participant must meet the requirements The project has two work streams; operational Navigant will examine if people that are receiving for residence in an intermediate care facility for redesign and waiver redesign. The waiver services are satisfied and their needs are being people with intellectual disabilities. redesign will include using the Kepner-Tregoe met by the waiver programs. decision making approach used in other states. In response to questions from Senator Potential Changes to Kentucky’s 1915(c) Navigant has met with leadership from DMS, Carroll, Ms. Jacobs stated Navigant will be Medicaid Waiver Programs DAIL, and Department for Behavioral Health, reviewing the differentiation between waivers in Jill R. Hunter, Deputy Commissioner, Developmental and Intellectual Disabilities terms of requirements and regulations governing Department for Medicaid Services, Cabinet for (DBHDID) and conducted interviews with CHFS those waivers. Navigant will examine where Health and Family Services, stated the goal of the staff, approximately 30 individual staff members. there may be opportunities to streamline and waiver system is to serve the most fragile citizens Navigant will compile a report of outcomes from simplify the waivers, keeping in mind that each of the Commonwealth. DMS followed model staff interviews, select operational workflows for of the waivers serves a very unique and distinct procurement established in KRS Chapter 45A. enhancement across DMS, DBHDID and DAIL, population. Mr. Pettersson stated that not only A request for proposal (RFP) was written last and review waiver redesign options to achieve is it inefficient to have competing priorities but March and had several respondents. A team of CHFS goals. Remaining steps will include it affects the providers which means additional individuals, with experience dealing with waivers assessing and recommending enhancements to costs. Navigant must find a balance between and work for Kentucky Medicaid, evaluated the several operational workflows across the cabinet, trying to consolidate waivers to make them RFP responses. Navigant Healthcare was the culminating in the establishment of standard effective not just from an economic perspective chosen vendor. Navigant began working with guidelines. but also from a quality perspective. Navigant DMS in April. Navigant suggested not only In response to questions from Senator will need to decide if it can achieve that balance looking at the waivers but also to look at the McGarvey, Ms. Jacobs stated Navigant is through waiver redesign or by improving internal people who work with the waivers. Navigant discussing how to run agencies and workflows operation effectiveness of the waiver programs. suggested that DMS work with other branches to allow Medicaid waiver processes to be more He stated he has seen the combining of waivers of CHFS, such as the Department for Aging and efficient and effective for participants and into a mega-waiver be successful within the Independent Living (DAIL) and the Department providers. Jason Gerling, HCBS Team Lead, intellectual disabilities population and the aged for Community Based Services (DCBS). DMS Navigant Healthcare, stated the focus is on how population separately. wants to talk with other stakeholders also, such the three agencies, DMS, DBHDID and DAIL, Mr. Gerling stated there are inherent as recipients, providers, and providers’ staff. have combined to operate the waivers. The initial challenges to a mega waiver because the needs of DMS is scheduling ten meetings across the assessment has found a gap in areas of opportunity the population that is eligible for skilled nursing Commonwealth in September and October. The for the agencies to work together. He stated care versus people who require an intermediate meetings will be in a smaller, focus group format. many of the processes in the operation of the care facility (ICF) and have more intellectual Information will also be gathered by emails and HCBS waivers circulate through three different developmental disabilities and some medical phone calls received. departments and three different sets of staff. The frailties. He testified that it can be very difficult to Kentucky Medicaid Contract with process can create challenges that pertain to who set parameters that accurately pinpoint what the Navigant Healthcare is the lead, who is making decisions, and who different populations need and the protections Anne Jacobs, Managing Director, Navigant is getting the tasks completed. Jim Pettersson, needed in the waivers for those populations. He Healthcare, stated Navigant works with Managing Director, Navigant Healthcare, stated stated Navigant is also reviewing an option for 1915(c) HCBS subject matter experts, as well the requirements that govern the waivers refer new waivers that are more specific to a different as additional subject matter experts available to program efficiency not necessarily provider populations. He stated all options are being as required, and an operational assessment efficiency. Navigant believes the providers are reviewed and examined. Mr. Gerling stated team. Navigant’s Government Health Solutions doing everything they can to economize and Navigant, along with CHFS, will be reviewing team has supported 49 states in a variety of that the providers have to work with rates they what work flows and work areas the cabinet Medicaid program areas. She stated one of the are given. wants to target, based on what is most distressing common 1915(c) program focus areas for states Mr. Gerling stated early solutions include both internally and externally for providers and is streamlining waiver eligibility timeframes communication protocols, operating procedures participants while targeting individuals most in need or at- that clearly define roles and responsibilities, and In response to questions from risk. Kentucky is unique because Navigant sees reviewing how calls are managed when they Representative Jenkins, Ms. Jacobs stated that the legislative requirements in the program come into the system. Navigant has worked in Navigant has assisted other states in establishing THE KENTUCKY GENERAL ASSEMBLY 61 and communicating its recommendations. Mary Hass, advocate, Brain Injury Mike Nadol, PFM Group Consulting LLC; and Navigant’s evaluation process is transparent with Association of America, testified that the Brain Adam Reese, PRM Consulting Group. goals established, released, and stated publicly. Injury Association of America wants to be a part LRC Staff: Brad Gross, Jennifer Black Hans, Deputy Commissioner Hunter stated the cabinet of the waiver redesign process. She stated many Bo Cracraft, and Angela Rhodes. is partnered with Navigant to do what is best for families are scared and want to be sure they are Approval of Minutes recipients and stakeholders. CHFS is accountable represented in the waiver program discussions. Senator Parrett moved that the minutes to the Legislature, providers, and participants. of the June 26, 2017, meeting be approved. In response to questions from Senator Diane Schirmer, M.Ed., Corporate Director Representative Kay seconded the motion, and Alvarado, Deputy Commissioner Hunter of Brain Injury Services, New Vista Behavioral the minutes were approved without objection. stated Navigant will submit suggestions and Healthcare, testified that a brain injury is a Senator Bowen stated HB 238 was passed in new ideas to the cabinet as it has done in other chronic condition recognized by the World the 2016 Regular Session and requires the Public states. Commissioner Miller stated there are Health Organization (WHO) and other medical Pension Oversight Board (PPOB) to employ the approximately 5,000 individuals on the waiting organizations. She stated typically people services of an actuary. LRC has issued a Request list for the MPW. He testified that up until a few with brain injuries are treated with intense for Proposals (RFP), and three members from months ago, none of the 5,000 on the waiting list rehabilitation at the beginning of the injury only, the PPOB will serve as an evaluation committee. had been evaluated. He stated many people are however, these individuals change with age. The members nominated were Senator Bowen, on the waiting list only to find out years later that Patients should have opportunities for intense Senator Schroder, and Representative Linder. they do not meet the level of care to be qualified rehabilitation at different periods of their life. Representative Miller moved for the approval for the waiver. Commissioner Miller stated there Diana Merzweiler, Executive Director, of the evaluation committee members. was legislation previously passed for additional Down Syndrome of Louisville, Inc. (DSL), Representative Fleming seconded the motion, slots to be added to the waiver programs. He stated DSL became a provider for Medicaid and the committee members were approved stated it was not clear as to whether or not those services approximately five years ago. She stated without objection. slots had been funded. While discussing the her organization sees people with and without Senator Bowen said that Kentucky is faced funding of those slots, the cabinet started to waiver services. DSL raises additional funds to with arguably the greatest challenge in its history look at the overall waiver environment through supplement programs for all members. DSL is - its pension liabilities. The pension systems a redesign. concerned when it is mentioned that waivers must be saved and obligations met. As with any In response to questions from Senator were not initially designed for children. She great challenge, all options to rectify the matter Carroll, Commissioner Miller stated there are stated any waiver or program should be given on must be explored, and the PPOB must pursue additional slots available in the MPW. CHFS is a needs based requirements and not according to the matter to get to the root cause of the problem back filling available slots as quickly as possible. age. DSL serves its members for their entire life. and identify a pathway to solvency. PFM is The process has been slowed down because She stated efficiencies are needed at the point of providing an unbiased third party view, and the individuals on the wait list were not evaluated entry to the waiver programs. DSL has adequate Kentucky legislature will be making decisions to at the beginning of the process and many do meeting space and resources available to hold craft a responsible and reasonable plan and will not meet the level of care required. The cabinet forums for the waiver redesign effort. give those that might be affected ample time to is working with the community mental health Adjournment make important decisions. centers to start pre-screening applicants. There being no further business, the meeting Introduction and Overview by Office of Commissioner Miller stated the process of pre- was adjourned at 3:32 PM. State Budget screening should allow CHFS to process the John Chilton discussed the $138.5 waiting list and fill available slots in a timely PUBLIC PENSION OVERSIGHT million revenue shortfall. In June of FY 2017, manner. He stated the cabinet will evaluate more BOARD in order to resolve the shortfall, money was individuals than slots are available because it is Minutes of the 7th Meeting transferred from various funds throughout state finding that only a small percentage of applicants of the 2017 Interim government. The Consensus Forecasting Group’s will meet the actual level of care requirement. August 28, 2017 most recent meeting stated they expect another Frank Huffman, Board Member, Protection Call to Order and Roll Call revenue shortfall of $200 million for FY 2018 and Advocacy for Persons with Developmental The 7th meeting of the Public Pension and expressed uncertainty regarding subsequent Disabilities (PADD), stated he wanted the Oversight Board was held on Monday, August fiscal years. Mr. Chilton stated that, in PFM’s committee to understand the importance of 28, 2017, at 1:00 PM, in Room 149 of the Capitol second report, the actuarial assumptions were Navigant reviewing the waivers. He invited the Annex. Senator Joe Bowen, Chair, called the optimistic and in response, the Kentucky cabinet, Navigant, and the committee members meeting to order, and the secretary called the Retirement Systems’ (KRS) Board lowered the to a PADD board meeting, which is comprised roll. expectations for the investment return and of individuals with disabilities who are on the Present were: payroll growth and computed a new ARC for waivers. Members: Senator Joe Bowen, Co-Chair; FY 2019. Using the more realistic assumptions, Arthur Campbell Jr., activist, stated that Representative Brian Linder, Co-Chair; Senators PFM computed that the general fund will he wanted to remind the cabinet and Navigant Jimmy Higdon, Christian McDaniel, Gerald be adversely affected by $700 million in FY to include people with disabilities through the A. Neal, Dennis Parrett, and Wil Schroder; 2019 alone. In context, the total state budget is process of rewriting the Kentucky Medicaid Representatives Ken Fleming, James Kay, Jerry roughly $10.5 billion. The Budget Reserve Trust waiver programs. He hopes the cabinet will T. Miller, Arnold Simpson, and Russell Webber; Fund (Rainy Day Fund) is expected to be fully give disabled people a chance to express their J. Michael Brown, John Chilton, Timothy Fyffe, depleted by the end of FY 2018 due to necessary concerns and give suggestions on what the Mike Harmon, James M. “Mac” Jefferson, and government expenses. The common target for disability community needs because they can Sharon Mattingly. the Budget Reserve Trust Fund is 5 percent of provide first-hand input. Guests: John Chilton, State Budget Director; annual revenues, which would be $550 million

62 2017 Interim LEGISLATIVE RECORD in reserve excess monies as of the end of the year. percent, cost of living adjustments (COLA) of 9 rebuild on this foundation toward regaining Mr. Chilton discussed options on how to percent, a plan performance market of 8 percent, fully sustainable fiscal health. The actuarial, raise $1 billion, such as, cut spending, increase and plan experience of 6 percent. funding, benefit, and investment approaches taxes, adjust benefits, and not pay the ARC. In Mr. Chilton said that while TRS and CERS across the Commonwealth’s different plans are the last budget cycle (2016), the expenditures non-hazardous plans are in better shape than complex, interconnected, and impact many, in state government were reduced by 9 percent. other Kentucky plans, the funding levels for diverse stakeholders in varying ways. In their Some important government services were both plans are below 60 percent – specifically, recommendations, PFM sought to balance these not subjected to that 9 percent decrease, for 59 percent for CERS non-hazardous and 54.6 concerns through a consistent approach that example, K-12 education (SEEK), Medicaid, percent for TRS. Using the Corporate Bond also resolves the current crisis on a sustainable public protection, debt service, etc. To protect Index rate, TRS’ unfunded liability goes from $15 basis. In so doing, PFM has also sought to reflect these same programs from cuts in FY 2019 billion to $34 billion, and the unfunded liability the policy principles and direction set forth would require that all other programs be cut by for the CERS non-hazardous plan goes from $5 by Governor Bevin and the Commonwealth’s 34.4 percent. Protecting those same programs, billion to $9 billion. Using the same Corporate leadership. but additionally subjecting education (SEEK) to Bond Index rate, the aggregate underfunding Mr. Nadol discussed key policy principles cuts, requires cuts of 16.86 percent. SEEK would for all eight plans goes from $33 billion to $64 and goals. He stated that the severely distressed be reduced by $510 million. All of this data billion. condition of the KERS non-hazardous plan, and presumes the ARC is fully funded in FY 2019. Representative Kay said that a pension bond the systemically high level of unfunded liabilities Pensions and Medicaid have been a growing could be another option to raise the $1 billion. across all of Kentucky’s plans in the aggregate, percentage of the general fund budget. In 2008, A pension bond was done in 2011, and the PFM require strong action to reduce the risks of: Medicaid and pensions made up just less than Group, in its second report, indicated that it was continued increases in funding that crowd 20 percent of the total budget, the projection for a successful way to raise money and fund the out other vital public spending and/or reach 2018 is that Medicaid and pensions will make up debt. Representative Kay said that his biggest levels that cannot be sustained in the budget just over 30 percent of the total budget. concern was with revenues not matching up with while keeping the state’s taxes at a competitive Mr. Chilton stated that subject to discussion what is being budgeted. He asked Mr. Chilton level to support the Commonwealth’s growth; is the actual size of the pension liability. how the state could assure there is not a $200 resorting to the payment of benefits on a pay- In 2016, actuaries computed an aggregate million revenue shortfall. Mr. Chilton stated that as-you-go cash basis, which would be fiscally unfunded liability of $33 billion. That figure was the $200 million shortfall in revenues goes to unsustainable; and plan insolvency, jeopardizing computed using an assumed investment return the general fund and is not from the money that the retirement security of tens of thousands of averaging 6.75 to 7.5 percent. Using rates that goes into the pension plans. In the budget for the former state and local government workers. To are recommended by PFM, rates of either 5.1 or Commonwealth, there is going to be $200 million the extent possible, accrued benefits for service 6 percent, the unfunded liability is $42 billion. less then what was planned during the budget earned by employees and retirees should be Using a corporate bond index rate, which non- process. A separate component that relates to protected within a framework consistent with governmental plans are required to use, the funding for the pension plans is how much the state’s inviolable contract provisions and indication is that the funding is actually $64 money comes out of the budget and is available federal Employee Retirement Income Security billion. Finally, if the U.S. Treasury rate at 2.72 to put into the pension plans. Representative Kay Act (ERISA) standards for private plans. While percent is used, the unfunded liability is $84 said he was aware that the shortfall was with the legal challenges to any changes the General billion. Mr. Chilton said that the $64 billion general fund and wants to avoid, during the 2018 Assembly may make are almost inevitable, based sum is the calculation that is closest to what Regular Session in January, writing the budget upon advice of counsel who have studied KRS non-governmental plans are required to use. in such a way that results in a big shortfall. Mr. 61.692 and similar statutes nationwide, it appears Therefore, $64 million is the amount his office Chilton stated the Governor addressed that in that the legislature has many options that would has used. 2016 in the budget he presented to the legislature pass judicial scrutiny in light of the extremely Mr. Chilton discussed how the underfunding by not budgeting to 100 percent of what the serious pension situation facing all Kentuckians. occurred for Kentucky Employees Retirement Consensus Forecasting Group adopted. The Long‐term solvency of the retirement system as System (KERS) non-hazardous and Kentucky budgeting practice in the past had been to budget a whole must be ensured so that current retirees Teachers’ Retirement System (TRS). The most every dollar that was adopted by the Consensus and future retirees can rely on secure retirement often cited reason is inadequate investment Forecasting Group. benefits. Risk levels systemically and for each returns and lack of adequate funding. The Senator Bowen stated that pension individual plan should be reduced as much funding method, the percentage of payroll, obligation bonds are a solution if the market as possible to avoid recurrence of the severe has been used and embedded in statute, and performs, but there is no guarantee. deterioration in the retirement systems’ health. involves an actuarial back loading of payments Public Pension Performance Audit (Final Future liabilities should be valued conservatively, that would reduce the unfunded liability. An Report & Recommendations) and the future risk to the Commonwealth employer rate is established each year as a Mike Nadol, PFM Group Consulting LLC associated with changes in economic conditions, percentage of payroll and is paid to the pension (PFM), discussed that through past legislative investment returns, demographics, and actuarial fund. The percentage growth in aggregate payroll reforms, recent board actions, and significant methods and assumptions should be minimized. has not been increasing at the target estimate of additional funding in FY 2017-2018, Kentucky The Commonwealth’s benefit structures should 4 percent and actuarial back loading combined has already taken many positive steps to reduce future exposure to risk and the potential with the faulty assumption has resulted in 25 address its retiree benefits. Without these prior for unfunded liabilities to reemerge, in order percent of the underfunded amount. Mr. Chilton actions, the current situation would be far to safeguard plan sustainability for KRS, TRS, also discussed other areas of underfunding, worse. Even with a stronger foundation placed and Judicial Form Retirement System (JFRS) including actuarial assumption changes of 22 quickly and decisively into place, a long-term participants, employers and the taxpayers. percent, a market performance assumption of 15 commitment to reform will also be needed to The Commonwealth’s overall approach as THE KENTUCKY GENERAL ASSEMBLY 63 an employer should provide career state and if the outside counsel referenced was Stites and recommendation options for current plan local employees and teachers a sufficient and Harbison. Mr. Nadol said yes. Mr. Brown asked participants. For KERS non-hazardous, CERS sustainable benefit for a dignified retirement why there was no reference in the report to any non-hazardous and JFRS, the recommendations through a combination of benefits from KRS, definition of the inviolable contract. Mr. Nadol were as follows: (1) freeze accrued benefits under TRS, and JFRS, social security, and personal said the written report does not detail any of the applicable existing pension tiers; (2) offer savings, while also accommodating and those issues. Mr. Brown asked if the legal analysis an optional buyout for the actuarial value of providing flexible and competitive options for of the recommendations in light of the inviolable accrued service with the equivalent cash value to workers who may spend only a portion of their contract was or could be made available to the be rolled over to the plan participant’s new DC career in public service. PPOB. Mr. Nadol said he could not speak for the account; (3) eliminate the application of unused Adam Reese of PRM Consulting Group Commonwealth’s counsel, but he would expect sick and compensatory leave to increase pension (PRM) discussed the actuarial assumption that they would be in a position to address benefits; (4) eliminate the portion of any pension recommendations. First, the study recommends questions of a legal nature. Senator Bowen said benefit payments to retirees resulting from modifying statutory provision KRS 61.565 to that the Governor has stated time and time COLAs granted between the years of 1996-2012; convert the level percent of payroll amortization again that this mission is to save the floundering and (5) establish a normal retirement age of method for KRS to a level dollar method. pension systems and at the same time keep the 65. For KERS hazardous, CERS hazardous, and This consistent approach to reducing the promises made. The mission has not varied from SPRS, members would retain the primary benefit Commonwealth’s long-term pension debt will that pledge. associated with their current tier, modifying substantially increase the likelihood of steady and Mr. Nadol discussed the benefitonly the requirements for normal retirement meaningful progress toward regaining a healthy recommendation options for future hires. For age to 55 for Tier 1 and age 60 for Tiers 2 and 3. funded status. The second recommendation was KERS non-hazardous, CERS non-hazardous, He also noted that employees can retire earlier to modify KRS 161.550 and KRS 21.525 to apply and JFRS plans, the recommendation is to with an actuarially reduced benefit. For TRS, the a level dollar amortization method to TRS and provide future hires with a 401(k) style defined recommendations were as follows: (1) maintain JFRS. Third, the Kentucky state-administered contribution (DC) retirement benefit with a mix a continued plan design with DB characteristics retirement systems should adopt and maintain of employer and employee contributions. The for incumbent teachers; (2) establish a normal prudent and realistic investment return components of this DC plan should include the retirement age of 65; (3) eliminate enhanced assumptions, such as, KERS non-hazardous and following: (1) mandatory employee contribution benefit features provided outside of any inviolable SPRS at 5.0 to 5.25 percent, KERS hazardous of 3 percent of salary; (2) a guaranteed base contract requirements; and (4) suspend all future and CERS at 6.0 to 6.25 percent, TRS at 6.0 to employer contribution of 2 percent of salary; COLAs until the system reaches a minimum 90 6.25 percent, and JFRS at 6.0 to 6.25 percent. The (3) an employer match to be set at 50 percent percent funded level using realistic actuarial magnitude of the impact of the recommended of additional employee contributions up to assumptions, then, after reaching the 90 percent actuarial assumptions on the estimated FY 2019 6 percent of salary (i.e. up to an additional 3 funded level, COLA payments could resume but aggregate actuarially determined employer percent from the employer); and (4) a maximum only to the first $1,500 of the monthly benefit. contribution for all systems, employers and employer contribution of 5 percent and total Mr. Nadol discussed the retiree medical funds total $1.836 billion. maximum employee/employer contribution of and insurance funds and stated the review of the Mr. Reese discussed altering the funding 14 percent. Employer contributions would vest retiree medical benefit program, led by PRM, policies’ of the systems relating to the method 100 percent after 5 years and 50 percent after 4 found opportunities for reducing the cost of of discharging any legacy unfunded liability for years. providing coverage by as much as 25 percent. each system. In this set of recommendations, Mr. For new hires in the KERS hazardous, CERS Many Commonwealth retirees were found to Reese said that KRS and TRS, respectively, should hazardous, and SPRS plans, the recommendation receive significantly richer, more costly coverage maintain the current 30-year amortization is to retain the current cash balance structure for than their active and pre-Medicare retiree periods beginning June 30, 2013 and 2014. Also, hazardous plan participants, modifying only the counterparts. it was recommended that JFRS apply a 30-year requirements for normal retirement eligibility to Mr. Reese stated that the analysis found amortization period for its existing unfunded age 60, and eliminating the option for retirement that the benefit coverage for retirees, after liability, with 20-year closed periods for future at any age based on years of service. reaching Medicare age, is materially more unfunded amounts. A reset period of 30 years For new hires in TRS, the recommendation generous than the health care coverage provided under a new level dollar amortization might be is a shift to a combination of social security to current employees. Further, career retirees considered to modestly smooth the fiscal impact participation and a DC retirement benefit. pay no premium, where current employees of the significant shift in assumptions approved The components of this DC plan should pay premiums every month. In addition to the in May and July. As to the other retirement include the following: (1) mandatory employee benefit benchmarking to other states: (1) pursue plans, PFM recommended in this Report similar contributions of 3 percent; (2) a guaranteed base harmonization of the level of retiree healthcare amortization schedules, as well as the resulting employer contribution of 2 percent of salary; benefits for KRS, TRS, Legislative Retirement escalation in required contributions in the near (3) an additional employer match to be set at 50 Plan (LRP), and Judicial Retirement Plan (JRP) term. percent of additional employee contributions up non-Medicare and Medicare retirees so that the J. Michael Brown asked Mr. Nadol to 6 percent of salary (i.e. up to an additional 3 basic plan and benefit provided to the retirees about his statement that the frame work of percent from the employer); and (4) a maximum is consistent with the LivingWell PPO coverage the recommendations should necessarily be employer contribution of 5 percent and total provided to active Commonwealth employees; consistent with the inviolable contract provisions maximum employee/employer contribution of (2) pooling JFRS with KRS so that JFRS will be of Kentucky pension law. Further, he addressed 14 percent. The employer contributions would able to leverage the additional scale of the other Mr. Nadol’s reference in his comments that vest 100 percent after 5 years and 50 percent after plans to obtain more competitive premium rates; there was an analysis provided by government 4 years. (3) limit retiree healthcare eligibility to employees counsel and outside counsel. Mr. Brown asked Mr. Nadol discussed the benefitretiring directly from Commonwealth service.

64 2017 Interim LEGISLATIVE RECORD Based on these estimated levels of premium target life cycle funds. Also, PFM’s report does should consider imposing caps/collars on ADEC reduction, the KRS actuarial liability would not include any recommendations on employee percent increases. decline by about $1.4 billion and the annual legacy fee contributions for Tier 1 or Tier 2 Mr. Nadol discussed governance and employer contribution funding cost would be employees. investment practices and stated that aggregating about $147 million lower. This corresponds to In response to a question from Representative all TRS and KRS assets (investment centralization an estimated $37 million in annual savings in Kay, Mr. Nadol stated that the report does only) would potentially generate more than the Commonwealth’s General Fund budget for include estimated costs based on a certain set of $5 million of annual savings in investment KRS plan OPEB, and an additional $40 million assumptions and scenarios. PFM worked with management fees based on current KRS rates in annual General Fund savings attributable the plan actuary’s to develop the majority of the without factoring in additional negotiating to the TRS recommended changes. Using the analysis leading into cost estimates. All of the leverage. PFM’s analysis of KRS investment current amortization method and schedule, the estimated impacts of the different approaches manager fee schedules indicates increased estimated savings would be roughly $114 million exist in a dynamic relationship with the actuarial annual fees for both KERS/SPRS and CERS, if in employer contribution, and $22 million in assumptions and approach that is used. split, due to lower asset bases. These additional annual General Fund savings. costs would be $1.1 million for KERS/SPRS and Mr. Nadol discussed the impacts to local In response to a question from $0.7 million for CERS. boards of education, explaining that while local Representative Kay, Mr. Reese stated that the Mr. Nadol summarized that PFM sees that school boards do not currently contribute any of current government contributions for FY 2018- more dollars are required to stabilize these plans. the employer contribution for teacher pensions, 19 are set. To the extent that there is employee He stated the plans are grossly underfunded there is a local employer share for retiree behavior that is different from the past, that and correcting that through improved actuarial medical. The recommended changes to TRS will be reflected in the next valuation. The assumptions is going to take substantial may produce an estimated $55 million of retiree valuation assumptions already include a very increased resources. The initial impact on the medical savings. In addition, non-teaching staff high percentage of employees retiring when first Commonwealth’s General Fund of applying of local school boards comprise 39 percent of eligible. the more conservative assumptions to all state- the salary base in CERS non-hazardous, and In response to a question from funded plans is an estimated increase to the would potentially save an additional estimated Representative Fleming, Mr. Reese stated there FY 2019 budget of over $1 billion beyond the $18 million collectively in retiree medical is a risk if the 2008 downturn in the market were significant added investments in the FY 2017- expenditures from recommended changes. to happen again. Plans that were funded and had 18 budget. The combination of implementing all These savings would offset the estimated initial a 38 percent investment loss wiped out 25 years the recommended benefit options is estimated costs to school boards of enrolling TRS new hires of good funding. to offset the impact of the assumptions system- in social security that would give an estimated In response to a question from wide and reduce the recommended employer initial $11 million statewide in the first full year Representative Fleming, Mr. Chilton stated that contribution by approximately 13 percent below and would increase roughly $10 million per year the Consensus Forecasting Group has done an the prior published/current assumptions if in the future. evaluation of what they expect to happen in the all preliminary options are included and fully Mr. Nadol discussed voluntary buyouts and future to the economy and recognizes that there realized. stated that a voluntary buyout of accrued service has been a severe downturn, maybe every 7 to Mr. Nadol states that it is the hope of would allow employees who would prefer to 8 years, and the plans are already 10 to 11 years PFM that all future Kentucky state and local manage their own assets in a DC plan to convert into a cycle looking at the bottom of the last government employees would have access to their benefit from the fixed DB plan to a lump recession. a balanced set of retirement benefits providing sum account balance in the DC plan, on a tax- In response to a question from Sharon positive income replacement levels, including exempt basis. This opt-out would be voluntary on Mattingly, Mr. Chilton stated the Commonwealth social security participation (not now available an employee-by-employee basis, except for Tier 3 has a 401(k) in which employees can now to teachers and many local government of KERS non-hazardous, CERS non-hazardous, participate. Mr. Chilton stated that he is not sure public safety employees), additional defined and Tier 4 of the Kentucky Judicial Retirement if they will use the same platform or a new one contribution (401(k)-style) plans with Plan and Kentucky Legislative Retirement Plan established. significant minimum employer contributions (JRP/LRP). This conversion would remove the Mr. Nadol discussed the funding and additional employer matches, and quality liability from the retirement system, value the recommendations. Funding for all plans retiree healthcare coverage consistent with employee’s accrued service as of the date of the should be based on the actuarially determined that provided to active employees. All current conversion without applying future pay increases contribution (ADC). For all the state funded Kentucky state and local government employees to the frozen portion of the benefit, improve the plans, the following rules should apply: (1) would have the value of their accrued benefits funded ratio, and reduce risk to the plan. budget the total amount based on the ADC; (2) maintained and receive benefits for future In response to a question from continue to allocate normal cost as percent of service as good as or better than those available Representative Miller, Mr. Nadol stated that payroll; and (3) charge the unfunded liability as for future hires. All retired Kentucky former PFM had not considered forcing inactives to a dollar amount based on the unfunded liability employees would receive at least the same benefit take a buyout. amortization associated with that employer’s level guaranteed upon retirement, and would see In a response to a question from Auditor liability for accrued service. With TRS, the social significant improvements to the funding of their Harmon, Mr. Chilton stated that their security costs for new hires could be picked up benefits by strengthening the solvency of these understanding is that new hires would be able to by local school boards. The funding would be vital commitments. In addition, all Kentucky go into the social security system unrestricted. manageable statewide with $11 million in costs stakeholders would begin to see steady and In a response to questions from Auditor in first year, increasing gradually by $10 million meaningful restoration of fiscal stability to the Harmon, Mr. Reese stated that under a 401(k) each year, with potential retiree healthcare Commonwealth’s retirement systems, along with style plan, employees would be afforded a set of savings to offset. With CERS, the legislature greatly reduced risk of renewed pension crises THE KENTUCKY GENERAL ASSEMBLY 65 in the years ahead. In turn, this progress would Report The state level efforts should be accelerated to ultimately lead to more resources available for Bill McCloskey described the Agricultural develop capacity for implementing SEL best critical investments and services, fair employee Development Board’s approved projects practices through professional learning and raises going forward, and improved financial and future projects under the program. Mr. training opportunities for early childhood and health and credit strength. McCloskey highlighted programs including school district professionals including teachers In response to a question from Auditor County Agricultural Investment Program, and administrators. Harmon, Mr. Reese stated that under the buyout, Deceased Farm Animal Removal Program, and Christa Bell overviewed programs some employees could roll their money over to a Youth Ag Incentives Program. administered by the cabinet of Health and 401(k) and continue to work. The County Agricultural Investment Family Services including the Scholarship In response to a question from Program Council, Inc. requested an additional Program which allows childcare staff to obtain Representative Kay, Mr. Nadol stated that PFM $18,000 in Russell County funds. a scholarship to increase their qualifications and does not recommend CERS separating from Governor’s Office of Early Childhood credentials. KRS. The analysis and benchmarking indicates a Linda Hampton stated early childhood Paula Goff summarized the HANDS consolidated approach can be more efficient and investments in brain development, language Program. Parents can enroll prior to birth of an more cost effective. acquisition, kindergarten readiness, third grade infant or up to 90 days after birth. The program Senator Bowen stated that the presentation reading, high school graduation, and college provides support through pregnancy and after was a third-party analysis and, while the readiness last for a lifetime. These are focus areas birth. Moving Beyond Depression is a new information is useful, it will be up to the General emphasized by the Early Childhood Advisory program under HANDS that will allow new Assembly to ultimately craft an effective and fair Council (ECAC). mothers to have in home therapy. plan going forward. Early Childhood received $24,516,000 from In response to a question from Representative With no further business, the meeting the Tobacco Settlement. Schamore, Ms. Goff stated HANDS is offered was adjourned. The next scheduled meeting is Funded projects include: through local health departments. There is no Monday, September 25, 2017. STARS for KIDS NOW income eligibility, but criteria must be met to Child Care Subsidy determine if family is overburdened. TOBACCO SETTLEMENT HANDS Home Visiting In response to a question from Senator Child Care Health Consultants Meredith, Ms. Hampton stated there are five AGREEMENT FUND OVERSIGHT Early Childhood Scholarship learning domains including cognitive, language, COMMITTEE Program physical, literacy, and mathematics. The Minutes of the 7th Meeting Community Early Childhood Department of Education controls the screening of the 2017 Interim September 6, 2017 Councils process and is thoroughly reviewing the process Call to Order and Roll Call Effective February 3, 2017, the name of the since data has been collected. Dr. Lottman stated The 7th meeting of the Tobacco Settlement Early Childhood Development Authority has the model developed in Northern Kentucky will Agreement Fund Oversight Committee was held been changed to the ECAC. not be used statewide. Each model should be on Wednesday, September 6, 2017, at 10:00 AM, In 2015, ECAC created the School Readiness uniquely created to satisfy the needs of a specific in Room 129 of the Capitol Annex. Senator C.B. Summit to engage superintendents and the Early district. Embry Jr., Chair, called the meeting to order, and Care and Education community by providing The next meeting of the Tobacco Agreement the secretary called the roll. an opportunity for collaboration and action Oversight Committee will be October 4, 2017. Present were: planning. There were 46 districts represented Documents distributed during the meeting are Members: Senator C.B. Embry Jr., Co- with 300 participating team members. available in the LRC Library. Chair; Representative Myron Dossett, Co-Chair; The Early Childhood Institute (ECI) was There being no further business, the meeting Senators Stephen Meredith, Dennis Parrett, and held June 28-30, 2017, with 1,500 in attendance. was adjourned. Whitney Westerfield; Representatives Kim King, There were 150 professional development Phillip Pratt, Rick Rand, Brandon Reed, and sessions with 14,471 child care training hours. GOVERNMENT CONTRACT Dean Schamore. ECI provides an opportunity for teachers, REVIEW COMMITTEE Guests: Warren Beeler, Executive Director, administrators, leaders, and advocates to Committee Minutes Governor’s Office of Agricultural Policy, collaborate and gain skills to lead. September 11, 2017 Bill McCloskey, Deputy Executive Director, Community Early Childhood Councils Call to Order and Roll Call Governor’s Office of Agricultural Policy, Linda (CECC) mobilize local community members The Government Contract Review Hampton, Acting Executive Director, Kentucky to build collaborative partnerships to help Committee met on Monday, September 11, 2017, Governor’s Office of Early Childhood, Christa Kentucky improve Kindergarten readiness. A at 10:00 AM, in Room 131 of the Capitol Annex. Bell, Director, Division of Childcare, Department total of $1,269,113.64 was awarded to 74 councils Senator Max Wise, Chair, called the meeting to of Community Based Services, Dr. Tom Lottman, during the 2016-2017 grant cycle. order, and the secretary called the roll. Director, Innovation Lab, Children, Inc., and The ECAC Data Subcommittee leads Present were: Paula Goff, Branch Manager, Early Childhood efforts to communicate about early childhood Members: Senator Max Wise, Co-Chair; Development, Department for Public Health. education data to the public, parents, educators, Representative Stan Lee, Co-Chair; Senator Paul LRC Staff: Tanya Monsanto and Kelly policymakers, and communities. Hornback; Representatives Chris Fugate, and Ludwig, and Rachel Hartley, Committee Dr. Tom Lottman stated social-emotional Dennis Horlander. Assistant. learning (SEL) contributes to academic success. Guests: Lee Smith, John Horne, Jeff The July 5, 2017 and August 4, 2017 minutes SEL should be viewed as the acquisition of Harmon, Patrick McGee, Scott Brinkman, were approved by unanimous voice vote. knowledge and skill sets necessary to succeed in Phillip Brown, Michelle Landers, Barry Swanson, Governor’s Office of Agricultural Policy school, work, relationships, and in communities. Tom Barker, Lee Smith, Jimmy Adams, Lauren

66 2017 Interim LEGISLATIVE RECORD Graves, Norman Arflack, Michelle Buffin, Mark THE FOLLOWING PERSONAL QK4, Inc., 1800000487; Palmer Engineering Bowman, Zeb Weese, Darron Sammons, and SERVICE CONTRACTS WERE REVIEWED County, 1800000488; Integrated Engineering, Amy Barnes. WITHOUT OBJECTION: 1800000489; HDR Engineering, Inc., LRC Staff: Kim Eisner, Jarrod Schmidt, and 1800000490. Kim Smith. DEPARTMENT FOR BEHAVIORAL DEFERRED ITEM: HEALTH, DEVELOPMENTAL AND UNIVERSITY OF KENTUCKY INTELLECTUAL DISABILITIES Fourth Quadrant d/b/a Up and Up Services, UNIVERSITY OF LOUISVILLE Crisis Prevention Institute, 1800000367. K18-129; Herter Design Group, K18-131. Isaacson Miller, Inc., 17-029. Lee Smith discussed the contract with the committee. A DEPARTMENT OF REVENUE UNIVERSITY OF LOUISVILLE motion was made by Senator Hornback to Dassault Systems Americas Corporation, BarkleyREI, LLC, 18-023; HBSA consider the contract as reviewed. Representative 1800000175. “Supporting Organization for PIRE”, 18-035. Lee seconded the motion, which passed. KENTUCKY HOUSING CORPORATION WESTERN KENTUCKY UNIVERSITY A motion was made by Representative Lee to The Scorer’s Table, 171813. approve Minutes of the August 2017, meeting of Novogradac & Company, LLP, 2017-9. the committee. Representative Fugate seconded KENTUCKY RIVER AUTHORITY the motion, which passed without objection. Lloyd Thomas Russell, 1800000323. THE FOLLOWING PERSONAL SERVICE A motion was made by Representative Lee AMENDMENTS WERE REVIEWED to consider as reviewed the Personal Service KENTUCKY STATE UNIVERSITY WITHOUT OBJECTION: Contract List, with exception of those items Johnson Bearse, LLP, 18-01. selected for further review by members of the BOARD OF PROFESSIONAL committee. Representative Fugate seconded the MOREHEAD STATE UNIVERSITY COUNSELORS motion, which passed without objection. Metis Associates, Inc., 18-031. Marisa Neal, 1600003192. A motion was made by Representative Lee MURRAY STATE UNIVERSITY to consider as reviewed the Personal Service Ruffalo Noel Levitz, LLC, 012-18. DEPARTMENT FOR ENVIRONMENTAL Contract Amendment List, with exception PROTECTION of those items selected for further review by NORTHERN KENTUCKY UNIVERSITY Stantec Consulting Services, Inc., members of the committee. Representative Schoepf/Associates, 2017-627; Keaton Real 1000001351; URS Corporation, 1000001352. Fugate seconded the motion, which passed Estate Services, LLC, 2017-628; SHP Leading without objection. Design, 2018-102. EASTERN KENTUCKY UNIVERSITY A motion was made by Representative Alexander Haas, Inc., 18-018; Sturgill, Lee to consider as reviewed the Memoranda of STATE POLICE, DEPARTMENT OF Turner, Barker & Moloney, PLLC, 18-060; Agreement List, with exception of those items Brian D. Sumner, 1800000317. Murphy Graves & Trimble, 18-090. selected for further review by members of the TRANSPORTATION CABINET EDUCATION, DEPARTMENT OF committee. Representative Fugate seconded the Osborne & Heaberlin, PSC, 1800000118; Maria Isabel Pereira, 1700001581; motion, which passed without objection. DLZ Kentucky, Inc., 1800000184; DLZ Ameresco, 1700001856. A motion was made by Representative Kentucky, Inc., 1800000190; DLZ Kentucky, Lee to consider as reviewed the Memoranda of Inc., 1800000267; Bacon Farmer Workman EDUCATIONAL TELEVISION, Agreement Amendment List, with exception Engineering & Testing, Inc., 1800000283; DLZ KENTUCKY of those items selected for further review by Kentucky, Inc., 1800000300; Stantec Consulting Carla Gover Barnett, 1700002111. members of the committee. Representative Services, Inc., 1800000302; Aecom Technical FINANCE AND ADMINISTRATION Fugate seconded the motion, which passed Services, Inc., 1800000306; WSP USA, Inc., CABINET - DIVISION OF ENGINEERING without objection. 1800000309; DLZ Kentucky, Inc., 1800000312; Omni Architects, 0700003255; EOP A motion was made by Representative Lee QK4, Inc., 1800000321; HDR Engineering, Inc., Architects, PSC, 1400000675; Sherman Carter to consider as reviewed the Film Tax Incentive 1800000332; Burgess and Niple, Inc., 1800000343; Barnhart, 1400001413; EOP Architects, PSC, List, with exception of those items selected for QK4, Inc., 1800000362; Palmer Engineering, 1500000584; Ross Tarrant Architects, Inc., further review by members of the committee. 1800000364; GRW Aerial Surveys, Inc., 1500001017; CMTA, Inc., 1500002374; Paladin, Representative Fugate seconded the motion, 1800000366; DLZ Kentucky, Inc., 1800000372; Inc., 1600000070; Paladin, Inc., 1600001124; which passed without objection. DLZ Kentucky, Inc., 1800000376; DLZ Paladin, Inc., 1600001124; Paladin, Inc., A motion was made by Representative Lee Kentucky, Inc., 1800000385; DLZ Kentucky, Inc., 1600001243; Greg Best Consulting, Inc., to consider as reviewed the Film Tax Incentive 1800000391; DLZ Kentucky, Inc., 1800000398; 1600003924; Neel-Schaffer, Inc., 1700001479. Amendment List, with exception of those items Strand Associates, Inc., 1800000402; DLZ selected for further review by members of the Kentucky, Inc., 1800000404; Palmer Engineering KENTUCKY COMMUNITY & committee. Representative Fugate seconded the Company, 1800000406; H.W. Lochner, Inc., TECHNICAL COLLEGE SYSTEM motion, which passed without objection. 1800000408; Strand Associates, Inc., 1800000409; Economic Modeling Specialists A motion was made by Representative Lee QK4, Inc., 1800000418; HDR Engineering, International, LLC, 712. to consider as reviewed the Correction List. Inc., 1800000419; Integrated Engineering, Inc., Representative Fugate seconded the motion, 1800000420; HMB Professional Engineers, Inc., MURRAY STATE UNIVERSITY which passed without objection. 1800000421; J.M. Crawford & Associates, Inc., Multi, 001-18; Multi, 003-18; Multi, 006-18; 1800000447; DLZ Kentucky, Inc., 1800000460; Multi, 008-18. Aecom Technical Services, Inc., 1800000481; THE KENTUCKY GENERAL ASSEMBLY 67 TRANSPORTATION CABINET Aid, 1700002347; University of Louisville Against Domestic Violence, Inc., 1800000193; Lochner H. W. Consulting, Inc., 1000002376; Research Foundation, 1700002348; Western Kentucky Association of Child Advocacy HDR Engineering, Inc., 1200001709; Stantec Kentucky University Research Foundation, Centers, 1800000194. Consulting Services, Inc., 1300000367; GRW Inc., 1700002379; Bullitt County Board of Engineers, Inc., 1400000506; Vaughn & Education, 1700002565; Marion County Board OFFICE OF THE GOVERNOR, Melton Consulting Engineers Kentucky, Inc., of Education, 1700002787; Jefferson County DEPARTMENT FOR LOCAL GOVERNMENT 1400000764; Vaughn & Melton Consulting Board of Education, 1700002808; Western Floyd County Fiscal Court, 1700002909; Engineers (Kentucky), Inc., 1400001085; URS Kentucky University Research Foundation, Harlan County Fiscal Court, 1700002918; Corporation, 1500000075; ICA Engineering, Inc. Inc., 1700002825; Collaborative Center for City of Clarkson, 1800000161; City of Crofton, f/k/a Florence & Hutcheson, Inc., 1500000091; Literacy Development, 1700002835; Jefferson 1800000166; Knott County Fiscal Court, Stantec Consulting Services, Inc., 1500000096; County Board of Education, 1700002841; 1800000186; Daviess County Fiscal Court, Integrated Engineering, PLLC, 1500001416; Carter County Board of Education, 1700002851; 1800000222; Harlan County Fiscal Court, Stantec Consulting Services, Inc., 1500002598; Edmonson County Board of Education, 1800000228; Harlan County Fiscal Court, Occupational Health Center of Southwest, 1700002854; Franklin County Board of 1800000229; City of Earlington, 1800000254; 1600002773; Michael Baker International, Education, 1700002857; Grant County Board of Barren River Area Development District, Inc., 1600003185; QK4, Inc., 1700001237; ICA Education, 1700002858; Johnson County Board 1800000284; Big Sandy Area Development Engineering, C-99005084-5. of Education, 1700002862; Lewis County Board District, 1800000285; Buffalo Trace Area of Education, 1700002865; McCreary County Development District, 1800000287; Cumberland UNIVERSITY OF KENTUCKY Board of Education, 1700002869; Newport Valley Area Development District, 1800000288; SSI (US), Inc., K17-230. Independent Board of Education, 1700002871; Fivco Area Development District, 1800000289; Powell County Board of Education, 1700002872; Gateway Area Development District, UNIVERSITY OF LOUISVILLE 1800000290; Green River Area Development Multi, 17-018 A-D. Eastern Kentucky University, 1700002880; Martin County Board of Education, 1700002905; District, 1800000291; Lake Cumberland Area VETERANS AFFAIRS, DEPARTMENT OF Eastern Kentucky University, 1700002911; Development District, 1800000294; Purchase Sturgill, Turner, Barker & Moloney, PLLC, Research Foundation of Suny, 1700002923; Area Development District, 1800000298; 1700002210. University of Louisville Research Foundation, Madison County Fiscal Court, 1800000301; 1800000008; Lee County Board of Education, Shelby County Fiscal Court, 1800000491. WESTERN KENTUCKY UNIVERSITY 1800000055; Western Kentucky University Multi, 161807; Bowling Green Warren TOURISM DEVELOPMENT CABINET Research Foundation, Inc., 1800000073; Jefferson Multi, 1700002780. County Community Hospital d/b/a Medical County Board of Education, 1800000108; Ohio Center Psychiatry, 161822; Adelphi Technology, Valley Educational Cooperative, 1800000126; WESTERN KENTUCKY UNIVERSITY Inc., 161826. Burgin Board of Education, 1800000196; Hart County Board of Education, 2018-005. Corbin Independent Board of Education, 1800000197; Newport Independent Board of THE FOLLOWING MEMORANDA Education, 1800000235; Ashland Independent THE FOLLOWING MEMORANDA OF AGREEMENTS WERE REVIEWED School District, 1800000243; Campbell OF AGREEMENT AMENDMENTS WERE WITHOUT OBJECTION: County Board of Education, 1800000246; REVIEWED WITHOUT OBJECTION: Eminence Independent Board of Education, CORRECTIONS, DEPARTMENT OF 1800000249; Erlanger Elsmere Board of AGRICULTURE, DEPARTMENT OF Louisville Metro Corrections, 1700001463; Education, 1800000250; Fayette County Board Multi, 1700001659; Multi, 1700001659. Centerstone of Kentucky, Inc., 1700002793. of Education, 1800000251; Greenup County Schools, 1800000252; Henderson County Board DEPARTMENT FOR BEHAVIORAL DEPARTMENT FOR ENVIRONMENTAL of Education, 1800000257; Jefferson County HEALTH, DEVELOPMENTAL AND PROTECTION Board of Education, 1800000258; Jessamine INTELLECTUAL DISABILITIES Headwaters, Inc., 1700002794. County Board of Education, 1800000259; Bluegrass Regional Mental Health Mental DEPARTMENT FOR FAMILY RESOURCE Knott County Board of Education, 1800000260; Retardation, 1600001661; Hazelden Betty Ford CENTERS & VOLUNTEER SERVICES Newport Independent Board of Education, Foundation, 1600001732. 1800000263; Paducah Independent Board of Jefferson County Board of Education, DEPARTMENT FOR PUBLIC HEALTH Education, 1800000264; Pike County Board of 1700002816; Multi, 1800000078; Multi, Kentucky Pharmacy Education and Education, 1800000265; Whitley County Board 1800000308; Green River Area Development Research Foundation, Inc., 1600002278. District, 1800000327. of Education, 1800000266; Collaborative for Teaching, 1800000299; Anderson County Board EDUCATION, DEPARTMENT OF DEPARTMENT FOR MEDICAID of Education, 1800000411. University of Louisville Research SERVICES Foundation, 1700000254; Jefferson County Board EDUCATION, OFFICE OF THE Trustees of the University of Pennsylvania, of Education, 1700000315; Jefferson County SECRETARY 1800000237. Board of Education, 1700001633; Kentucky Valley Multi, 1800000280. EDUCATION, DEPARTMENT OF Education, 1700001674; Boone County Board of Eastern Kentucky University, 1700002330; JUSTICE CABINET Education, 1700001736; Madison County Board Murray State University, 1700002344; University Kentucky Association of Sexual Assault of Education, 1700001742; Franklin County of Kentucky MERR Student Financial Program, 1800000192; Kentucky Coalition Board of Education, 1700001760; Boyd County Board of Education, 1700002521.

68 2017 Interim LEGISLATIVE RECORD JUSTICE CABINET FINANCE AND ADMINISTRATION seconded the motion, which passed. University of Kentucky, 1600003475; CABINET University of Tennessee Anthropology Frost Brown Todd, LLC, 1700002419. OFFICE OF THE GOVERNOR, Department, 1600003487; University of Patrick McGee, Scott Brinkman, and Phillip DEPARTMENT FOR LOCAL GOVERNMENT Louisville, 1600003489. Brown discussed the contract with the committee. Knott County Fiscal Court, 1800000187. A motion was made by Representative Lee Amy Barnes and Darron Sammons discussed OFFICE OF THE GOVERNOR, to consider the contract as reviewed. Senator the contract with the committee. A motion was DEPARTMENT FOR LOCAL GOVERNMENT Hornback seconded the motion, which passed. made by Senator Wise to consider the contract Lee County Fiscal Court, 1700000801. as reviewed. Senator Hornback seconded the Embry Merritt Shaffar Womack,motion, which passed. POST SECONDARY EDUCATION, PLLC, 1800000268; Wallace Boggs, PLLC, COUNCIL ON 1800000270. Patrick McGee, Scott Brinkman, Collaborative for Teaching, 1700000585. and Phillip Brown discussed the contracts THE FOLLOWING MEMORANDA OF with the committee. A motion was made by AGREEMENTS FOR $50K AND UNDER Representative Fugate to consider the contracts WERE SELECTED FOR FURTHER REVIEW: THE FOLLOWING FILM TAX as reviewed. Senator Hornback seconded the INCENTIVES WERE REVIEWED WITHOUT motion, which passed, with Representative OFFICE OF THE GOVERNOR, OBJECTION: Horlander voting no. DEPARTMENT FOR LOCAL GOVERNMENT Harlan County Fiscal Court, 1800000227. KENTUCKY EMPLOYERS MUTUAL TOURISM DEVELOPMENT CABINET Amy Barnes and Darron Sammons discussed INSURANCE Schuetzle Company Productions, LLC, the contract with the committee. A motion was Kenning Consulting, Inc., 18-KEN-001. 1800000272; DD Tiger 1 LLC, 1800000281; made by Senator Wise to consider the contract Michelle Landers discussed the contract with Come On, Backslider, LLC, 1800000316; TPC as reviewed. Representative Fugate seconded the the committee. A motion was made by Senator Partners, LLC, 1800000325; Play the Flute motion, which passed. Movie, LLC, 1800000326; River Runs Red, LLC, Hornback to consider the contract as reviewed. 1800000328; Motown Touring, LLC, 1800000401; Representative Horlander seconded the motion, EXEMPTION REQUESTS: Hammerheart Productions, LLC, 1800000429; which passed. Romero Pictures, LLC, 1800000434; The Cornett The Kentucky Department of Agriculture UNIVERSITY OF KENTUCKY Group, Inc., 1800000436; Sunshine Films La requested an exemption from the two year Smith Moore Leatherwood, LLP, K18-130. Grange, LLC, 1800000437; AOSD Film, LLC, contracting restrictions for eight grant recipients Barry Swanson and Tom Barker discussed the 1800000446; TPC Partners, LLC, 1800000456. for the purpose of researching and promoting contract with the committee. A motion was made specialty crop farming techniques in Kentucky; by Senator Hornback to consider the contract 100% Federal Funds. A motion was made as reviewed. Representative Lee seconded the by Representative Lee to grant the request to THE FOLLOWING FILM TAX motion, which passed, with Representative September 30, 2020. Senator Wise seconded the INCENTIVE AMENDMENTS WERE Horlander voting no. motion, which passed. REVIEWED WITHOUT OBJECTION: UNIVERSITY OF LOUISVILLE There being no further business, the meeting TOURISM DEVELOPMENT CABINET R. William Funk & Associates, 18-034. Lee adjourned at 11:25 A.M. Clovehitch Film, LLC, 1700000409. Smith discussed the contract with the committee. A motion was made by Senator Hornback to THE FOLLOWING PERSONAL consider the contract as reviewed. Representative ADMINISTRATIVE REGULATION SERVICE CONTRACTS WERE SELECTED Lee seconded the motion, which passed. REVIEW SUBCOMMITTEE FOR FURTHER REVIEW: Minutes of the September Meeting VETERANS AFFAIRS, DEPARTMENT OF September 11, 2017 DEPARTMENT FOR ENVIRONMENTAL Trilogy Healthcare Holdings, Inc., PROTECTION Call to Order and Roll Call 1700000535-1. Norman Arflack, Michelle Buffin, The September meeting of the Administrative Dinsmore & Shohl, LLP, 1800000444. John and Mark Bowman discussed the contract with Horne and Jeff Harmon discussed the contract Regulation Review Subcommittee was held on the committee. A motion was made by Senator Monday, September 11, 2017, at 1:00 PM, in with the committee. A motion was made by Wise to consider the contract as reviewed. Representative Lee to consider the contract as Room 149 of the Capitol Annex. Senator Ernie Representative Fugate seconded the motion, Harris, Chair, called the meeting to order, and reviewed. Representative Horlander seconded which passed. the motion, which passed. the secretary called the roll. THE FOLLOWING MEMORANDA Present were: EDUCATION PROFESSIONAL OF AGREEMENTS WERE SELECTED FOR Members: Senator Ernie Harris, Co-Chair; STANDARDS BOARD FURTHER REVIEW: Representative Ken Upchurch, Co-Chair; Capital Link Consultants, 1800000271. Senators Perry B. Clark, and Alice Forgy Kerr; Jimmy Adams and Lauren Graves discussed KY STATE NATURE PRESERVES Representatives Mary Lou Marzian, Jason Petrie, the contract with the committee. A motion COMMISSION and Tommy Turner. was made by Senator Hornback to disapprove Finance Real Property, 1700002519. Zeb Guests: Sarah Beth Gregory, Charles the contract. Representative Fugate seconded Weese discussed the contract with the committee. Hunt, Auditor of Public Accounts; Shan Dutta, the motion, which failed, with Representative A motion was made by Senator Wise to consider Board of Professional Geologists; Amber Horlander voting no. the contract as reviewed. Representative Lee Arnett, Ron Brooks, Department of Fish and

THE KENTUCKY GENERAL ASSEMBLY 69 Wildlife Resources; Amy Barker, Department of Harris, Ms. Barker stated that a change was 804 KAR 4:410. Product registration and Corrections; Brooken Smith, Michael Swansburg, made to the statewide policy to prohibit inmates forms. Labor Cabinet; Stephen Humphress, Heather from sending money outside of a facility and to A motion was made and seconded to approve Mercadante, Department of Alcoholic Beverage prohibit inmates from opening savings accounts. the following amendment: to amend Section Control; Patrick O’Connor II, Department The individual facility policies were being 3 to comply with the drafting requirements of of Insurance; Laura Begin, Erica Brakefield, amended to comply with that statewide policy. KRS Chapter 13A. Without objection, and with Brent Irvin, Ken Spach, Robert Silverthorn Jr., The policy was the result of a specific security agreement of the agency, the amendment was Jennifer Wolsing, Office of Inspector General; problem that had occurred. The department was approved. Elizabeth Caywood, Leitha Harris, Department still considering that statewide policy and may Transportation of Alcoholic Beverages of Community Based Services; Shannon Stiglitz, further refine it in the future. Inmates were still 804 KAR 8:050. Signs on vehicles used. Retail Federation; Kyle Hoylman, Steven Rice, able to pay certain amounts to outside entities, In response to a question by Senator Clark, Radon Program Advisory Committee. but were prohibited from directly sending money Mr. Humphress stated that the department LRC Staff: Sarah Amburgey, Stacy Auterson, outside of a facility. historically had the authority to check premises. Emily Caudill, Betsy Cupp, Ange Darnell, Emily A motion was made and seconded to KRS 241.090 authorized the department to Harkenrider, Karen Howard, and Carrie Klaber. approve the following amendments: to amend perform warrantless inspections; however, The Administrative Regulation Review Section 1 and the material incorporated by the department rarely performed warrantless Subcommittee met on Monday, September 11, reference to comply with the drafting and inspections. KRS 243.200 provided for the 2017, and submits this report: formatting requirements of KRS Chapter 13A. consent of transporters prior to inspection. The Administrative Regulations Reviewed by Without objection, and with agreement of the U.S. Supreme Court had recognized that the the Subcommittee: agency, the amendments were approved. alcoholic beverage industry is highly regulated; AUDITOR OF PUBLIC ACCOUNTS 501 KAR 6:270 & E. Probation and parole therefore, there was a reduced expectation of 45 KAR 1:030. Audits of sheriffs’ tax policies and procedures. privacy. settlements. Chris Hunt, general counsel, and A motion was made and seconded to In response to a question by Co-Chair Harris, Sarah Beth Gregory, chief of staff, represented approve the following amendments: to amend Mr. Humphress stated that the department had the Auditor of Public Accounts. Section 1 and the material incorporated by encountered situations of bootleggers, especially 45 KAR 1:040. Audits of county fee officials. reference to comply with the drafting and from dry counties who, without a licensed 45 KAR 1:050. Audits of fiscal courts. formatting requirements of KRS Chapter 13A. vehicle, purchased large quantities of alcoholic A motion was made and seconded to Without objection, and with agreement of the beverages for transport back to the dry counties approve the following amendments: (1) to agency, the amendments were approved. with the intent to sell. Department investigators amend the RELATES TO paragraph to add a 501 KAR 6:999. Corrections secured in that situation would usually follow the vehicle citation; and (2) to amend Section 4 to comply policies and procedures. to determine if a violation was occurring and with the drafting requirements of KRS Chapter This administrative regulation was reviewed had existing authority pursuant to probable 13A. Without objection, and with agreement of and amended, without objection and with cause and reasonable suspicion standards. the agency, the amendments were approved. agreement of the agency, by the Subcommittee Department of Insurance: Kinds of PUBLIC PROTECTION CABINET: Office in closed session pursuant to KRS 61.810(1)(k), Insurance; Limits of Risk; Reinsurance of Occupations and Professions: Board of 61.815(2), and 197.025(6). 806 KAR 5:031. Repeal of 806 KAR 5:030 Registration for Professional Geologists LABOR CABINET: Department of and 806 KAR 5:040. Patrick O’Connor II, deputy 201 KAR 31:010. Fees. Shan Dutta, counsel, Workplace Standards: Division of Occupational commissioner, represented the department. represented the board. Health and Safety Compliance: Division of Investments A motion was made and seconded Occupational Safety and Health Education and 806 KAR 7:011. Repeal of 806 KAR 7:010. to approve the following amendments: to Training A motion was made and seconded amend the NECESSITY, FUNCTION, AND 803 KAR 2:425 & E. Toxic and hazardous to approve the following amendments: to CONFORMITY paragraph and sections 2 and substances. Brooken Smith, chief of staff, and amend the NECESSITY, FUNCTION, AND 3 to comply with the drafting requirements of Michael Swansburg, general counsel, represented CONFORMITY paragraph to comply with the KRS Chapter 13A. Without objection, and with the division. drafting requirements of KRS Chapter 13A. agreement of the agency, the amendments were PUBLIC PROTECTION CABINET: Without objection, and with agreement of the approved. Department of Alcoholic Beverage Control: agency, the amendments were approved. TOURISM, ARTS AND HERITAGE Licensing Agents, Consultants, Solicitors and CABINET: Department of Fish and Wildlife 804 KAR 4:390. License renewals. Stephen Adjusters Resources: Fish Humphress, general counsel, and Heather 806 KAR 9:051. Repeal of 806 KAR 9:050 301 KAR 1:201. Taking of fish by traditional Mercadante, executive adviser, represented the and 806 KAR 9:300. fishing methods. Amber Arnett, counsel, and department. A motion was made and seconded Ron Brooks, fisheries director, represented the 804 KAR 4:400. Applications incorporated to approve the following amendment: to department. by reference. amend the NECESSITY, FUNCTION, AND JUSTICE AND PUBLIC SAFETY A motion was made and seconded to CONFORMITY paragraph to comply with the CABINET: Department of Corrections: Office of approve the following amendments: to amend drafting requirements of KRS Chapter 13A. the Secretary Section 1 and the material incorporated by Without objection, and with agreement of the 501 KAR 6:230. Little Sandy Correctional reference to comply with the drafting and agency, the amendment was approved. Complex. Amy Barker, assistant general counsel, formatting requirements of KRS Chapter 13A. Health Insurance Contracts represented the department. Without objection, and with agreement of the 806 KAR 17:575. Pharmacy benefit In response to questions by Co-Chair agency, the amendments were approved. managers. Shannon Stiglitz, vice president

70 2017 Interim LEGISLATIVE RECORD of governmental affairs, represented theServices. In response to a question by Representative Kentucky Retail Federation in support of this A motion was made and seconded to Petrie, Ms. Caywood stated that the requirements administrative regulation. approve the following amendments: (1) to amend for able-bodied adults in the program had not In response to questions by Representative the RELATES TO paragraph to add citations; (2) changed. The purpose of this administrative Petrie, Mr. O’Connor stated that this administrative to amend the NECESSITY, FUNCTION, AND regulation was to open the employment and regulation was initiated because of significant CONFORMITY paragraph and Section 5 to training program to other households that could complaints from stakeholders, primarily comply with the drafting requirements of KRS benefit but were not necessarily required to pharmacists. KRS 304.17A-162 authorized Chapter 13A; and (3) to amend Section 5 for participate. the department to regulate pharmacy benefit consistency to require the weekly updates to the 921 KAR 3:042. Supplemental Nutrition managers and the reimbursement process. This maximum allowable cost price list to be provided Assistance Program employment and training administrative regulation clarified and expanded within two (2) business days of receipt of the program. substantive provisions for appeals in the case request from the contracted pharmacy. Without Other Business: Co-Chair Harris led a of cost disputes. This administrative regulation objection, and with agreement of the agency, the moment of silence in honor of the victims of the also increased transparency by requiring benefit amendments were approved. September 11, 2001 terrorist attacks on the U.S., managers to include greater detail in individual Domestic Stock and Mutual Insurers including citizens lost that day and those who notifications. The department utilized existing 806 KAR 24:022. Repeal of 806 KAR 24:020. had sacrificed since that time in the fight against personnel to investigate complaints; therefore, CABINET FOR HEALTH AND FAMILY terrorism around the world. Thoughts were also this administrative regulation was not expected SERVICES: Office of Inspector General: Division offered for victims of the recent hurricanes, to burden the department’s budget. Some of Healthcare: Health Services and Facilities especially in Texas, Florida, Georgia, and other pharmacy benefit managers had expressed 902 KAR 20:360 & E. Abortion facilities. regions. concerns that developing their own online Robert Silverthorn, Jr., inspector general, and Sarah Beth Gregory, former member of the systems would be burdensome; however, the Jennifer Wolsing, general counsel, represented Subcommittee and current chief of staff for the department anticipated that this administrative the division. Auditor of Public Accounts, was recognized and regulation would streamline the process for all In response to questions by Senator Clark, welcomed. stakeholders and reduce complaints in general. Mr. Silverthorn stated that testimony in the Co-Chair Harris stated that agencies’ Ms. Stiglitz stated that the Kentucky Retail litigation related to this administrative regulation efforts to comply with the Red Tape Reduction Federation, which representation included retail ended September 8, 2017. After a briefing Initiative were appreciated and, in so doing, it pharmacies and the Kentucky Pharmacists period, the matter would be considered by the was important to remain in compliance with Association, fully supported this administrative court. It was unnecessary to defer consideration KRS 13A.221, which required subject matter to regulation. This administrative regulationof this administrative regulation until the court be divided into topics. A separate administrative was necessary to complete the intent of Senate determination because that decision may be regulation was required to be promulgated for Bill 117 from the 2016 Regular Session of the many months away. Senator Clark stated that, if each topic. If several topics were consolidated into General Assembly. Pharmacy benefit managers we as a Commonwealth believed that abortion one (1) administrative regulation, the resulting did not need to be concerned about burdensome should be safe, legal, and rare, this administrative administrative regulation could be cumbersome requirements because complaints would not regulation seemed contrary to that ideal. It had to amend and difficult for stakeholders to use. be filed if reimbursements were conducted been determined that abortion was protected by The following administrative regulations appropriately. Senate Bill 117 from the 2016 the U.S. Constitution. While Senator Clark stated were deferred or removed from the September Regular Session of the General Assembly that he was not pro-abortion, he recommended 11, 2017, Subcommittee agenda: authorized the department to assist financially deferral of this administrative regulation until COUNCIL ON POSTSECONDARY with the infrastructure necessary to comply with the court determination was issued. EDUCATION: Public Educational Institutions the mandates. In response to questions by Representative 13 KAR 2:120. Comprehensive funding In response to questions by Representative Marzian, Mr. Silverthorn stated that, in addition model for the allocation of state general fund Petrie, Ms. Stiglitz stated that this administrative to abortion facilities, there were certain appropriations to public universities. regulation should be sufficient to give the ambulatory care centers that, through the State 13 KAR 2:130. Comprehensive funding department the authority and the necessary Health Plan and Certificate of Need process, were model for the allocation of general fund standards to enforce Senate Bill 117 from the required to have a patient transfer agreement. In appropriations to the Kentucky Community and 2016 Regular Session of the General Assembly; order to be licensed, a facility was first required Technical College System institutions. however, whether or not this administrative to obtain a Certificate of Need, which was the Adult Education and Literacy regulation was sufficient to meet the overall component that required the patient transfer 13 KAR 3:050. GED® eligibility requirements. needs of pharmacists was not yet determinable. agreement; therefore, the ambulatory care centers FINANCE AND ADMINISTRATION In response to a question by Co-Chair were indirectly required to establish patient CABINET: Teachers’ Retirement System: Board Harris, Ms. Stiglitz stated that a good groundwork transfer agreements for licensure. Representative of Trustees had been established for a working relationship Marzian requested to be recorded as voting in 102 KAR 1:070. Application for retirement. between the department and the Kentucky opposition to this administrative regulation. DEPARTMENT OF MILITARY AFFAIRS: Retail Federation. Mr. O’Connor stated that the Department for Community Based Services: Division of Administrative Services: Military department had a good working relationship Division of Family Support: Supplemental Assistance Trust Funds with the pharmacist community and with Nutrition Assistance Program 106 KAR 2:040. Survivor benefits for death pharmacy benefit managers. The department 921 KAR 3:025. Technical requirements. of a National Guard or Reserve Component had worked with both groups to develop this Elizabeth Caywood, executive advisor, and member. administrative regulation and also had a good Leitha Harris, section supervisor, represented GENERAL GOVERNMENT CABINET: working relationship with Kentucky Medicaid the program. Board of Pharmacy THE KENTUCKY GENERAL ASSEMBLY 71 201 KAR 2:380. Board authorized protocols. KAR 34:330, 401 KAR 34:340, 401 KAR 34:350, Standards for the Management of Used Oil Board of Medical Licensure 401 KAR 34:360, and 401 KAR 34:370. 401 KAR 44:002. Repeal of 401 KAR 44:005, 201 KAR 9:260. Professional standards Interim Status Standards for Owners and 401 KAR 44:010, 401 KAR 44:020, 401 KAR for prescribing and dispensing controlled Operators of Hazardous Waste Treatment, 44:030, 401 KAR 44:040, 401 KAR 44:050, 401 substances. Storage and Disposal Facilities KAR 44:060, 401 KAR 44:070, and 401 KAR Board of Embalmers and Funeral Directors 401 KAR 35:002. Repeal of 401 KAR 35:005, 44:080. 201 KAR 15:030. Fees. 401 KAR 35:010, 401 KAR 35:020, 401 KAR Special Waste 201 KAR 15:050. Apprenticeship and 35:030, 401 KAR 35:040, 401 KAR 35:050, 401 401 KAR 45:060. Special waste permit-by- supervision requirements. KAR 35:060, 401 KAR 35:070, 401 KAR 35:080, rule. 201 KAR 15:110. Funeral establishment 401 KAR 35:090, 401 KAR 35:100, 401 KAR Standards for Solid Waste Facilities criteria. 35:110, 401 KAR 35:120, 401 KAR 35:130, 401 401 KAR 48:005. Definitions related to 401 Board of Nursing KAR 35:180, 401 KAR 35:190, 401 KAR 35:200, KAR Chapter 48. 201 KAR 20:057. Scope and standards of 401 KAR 35:210, 401 KAR 35:220, 401 KAR 401 KAR 48:090. Operating requirements practice of advanced practice registered nurses. 35:230, 401 KAR 35:240, 401 KAR 35:245, 401 for contained landfills. Board of Licensure for Occupational KAR 35:250, 401 KAR 35:260, 401 KAR 35:270, Certificates of Environmental Safety and Therapy 401 KAR 35:275, 401 KAR 35:280, 401 KAR Public Necessity 201 KAR 28:200. Continuing competence. 35:281, 401 KAR 35:285, 401 KAR 35:290, 401 410 KAR 1:002. Repeal of 410 KAR 1:010 201 KAR 28:235. Telehealth occupational KAR 35:310, 401 KAR 35:320, 401 KAR 35:330, and 410 KAR 1:020. therapy services. 401 KAR 35:340, and 401 KAR 35:350. JUSTICE AND PUBLIC SAFETY Board of Licensed Professional Counselors Standards for the Management of Specific CABINET: Department of Corrections: Office of 201 KAR 36:065. Licensed professional Hazardous Wastes and Specific Types of the Secretary clinical counselor supervisor. Hazardous Waste 501 KAR 6:110. Roederer Correctional 201 KAR 36:070. Application, education, 401 KAR 36:002. Repeal of 401 KAR 36:005, Complex. and examination requirements. 401 KAR 36:020, 401 KAR 36:025, 401 KAR TRANSPORTATION CABINET: ENERGY AND ENVIRONMENT 36:030, 401 KAR 36:060, 401 KAR 36:070, 401 Department of Vehicle Regulation: Division of CABINET: Department for Environmental KAR 36:080, and 401 KAR 36:090. Driver Licensing: Administration Protection: Division of Waste Management: Land Disposal Restrictions 601 KAR 2:030 & E. Ignition interlock. Identification and Listing of Hazardous Waste 401 KAR 37:002. Repeal of 401 KAR 37:005, EDUCATION AND WORKFORCE 401 KAR 31:002. Repeal of 401 KAR 31:005, 401 KAR 37:010, 401 KAR 37:020, 401 KAR DEVELOPMENT CABINET: Department of 401 KAR 31:010, 401 KAR 31:020, 401 KAR 37:030, 401 KAR 37:040, 401 KAR 37:050, 401 Workplace Development: Office of Employment 31:030, 401 KAR 31:035, 401 KAR 31:040, 401 KAR 37:060, and 401 KAR 37:110. and Training: Unemployment Insurance KAR 31:050, 401 KAR 31:070, 401 KAR 31:100, Hazardous Waste Permitting Process 787 KAR 1:070. Reasonable time for 401 KAR 31:110, 401 KAR 31:160, and 401 KAR 401 KAR 38:002. Repeal of 401 KAR 38:005, protesting claim. 31:170. 401 KAR 38:010, 401 KAR 38:020, 401 KAR ENERGY AND ENVIRONMENT Standards Applicable to Generators of 38:025, 401 KAR 38:030, 401 KAR 38:040, 401 CABINET: Department for Natural Resources: Hazardous Waste KAR 38:050, 401 KAR 38:060, 401 KAR 38:070, Division of Oil and Gas: Division 401 KAR 32:002. Repeal of 401 KAR 32:005, 401 KAR 38:080, 401 KAR 38:090, 401 KAR 805 KAR 1:060. Plugging wells. 401 KAR 32:010, 401 KAR 32:020, 401 KAR 38:150, 401 KAR 38:160, 401 KAR 38:170, 401 805 KAR 1:071. Repeal of 805 KAR 1:070. 32:030, 401 KAR 32:040, 401 KAR 32:050, 401 KAR 38:180, 401 KAR 38:190, 401 KAR 38:200, Coal Bed Methane KAR 32:060, 401 KAR 32:065, and 401 KAR 401 KAR 38:210, 401 KAR 38:230, 401 KAR 805 KAR 9:041. Repeal of 805 KAR 9:040. 32:100. 38:240, 401 KAR 38:250, 401 KAR 38:260, 401 PUBLIC PROTECTION CABINET: Standards Applicable to Transporters of KAR 38:270, 401 KAR 38:290, 401 KAR 38:300, Department of Insurance: Authorization of Hazardous Waste 401 KAR 38:310, 401 KAR 38:320, 401 KAR Insurers and General Requirements 401 KAR 33:002. Repeal of 401 KAR 33:005, 38:330, and 401 KAR 38:500. 806 KAR 3:011. Repeal of 806 KAR 3:010, 401 KAR 33:010, 401 KAR 33:020, and 401 KAR Hazardous Waste Fees 806 KAR 3:020, and 806 KAR 3:220. 33:030. 401 KAR 39:005. Definitions for 401 KAR 806 KAR 3:210. Privacy of consumer Standards for Owners and Operators Chapter 39. financial and health information. of Hazardous Waste Storage, Treatment and 401 KAR 39:011. Repeal of 401 KAR 39:100 CABINET FOR HEALTH AND FAMILY Disposal Facilities and 401 KAR 39:110. SERVICES: Office of Health Policy: State Health 401 KAR 34:002. Repeal of 401 KAR 34:005, 401 KAR 39:060. General requirements. Plan 401 KAR 34:010, 401 KAR 34:020, 401 KAR 401 KAR 39:080. Hazardous waste handlers. 900 KAR 5:020. State Health Plan for 34:030, 401 KAR 34:040, 401 KAR 34:050, 401 401 KAR 39:090. Hazardous waste permit facilities and services. KAR 34:060, 401 KAR 34:070, 401 KAR 34:080, program. Office of the Secretary: Medical Review 401 KAR 34:090, 401 KAR 34:100, 401 KAR 401 KAR 39:120. Permit review, Panel Branch 34:110, 401 KAR 34:120, 401 KAR 34:130, 401 determination timetables, and fees. 900 KAR 11:010 & E. Medical review panels. KAR 34:180, 401 KAR 34:190, 401 KAR 34:200, Standards for Special Collection System Division of Audits and Investigations: 401 KAR 34:210, 401 KAR 34:220, 401 KAR Wastes Controlled Substances 34:230, 401 KAR 34:240, 401 KAR 34:245, 401 401 KAR 43:002. Repeal of 401 KAR 43:005, 902 KAR 55:110. Monitoring system for KAR 34:250, 401 KAR 34:275, 401 KAR 34:280, 401 KAR 43:010, 401 KAR 43:020, 401 KAR prescription controlled substances. 401 KAR 34:281, 401 KAR 34:285, 401 KAR 43:030, 401 KAR 43:040, 401 KAR 43:050, 401 Department for Public Health: Division of 34:287, 401 KAR 34:290, 401 KAR 34:320, 401 KAR 43:060, and 401 KAR 43:070. Public Health Protection and Safety: Radon

72 2017 Interim LEGISLATIVE RECORD 902 KAR 95:040. Radon Contractor outcome was achievable. Most states bordering consideration of this administrative regulation. Certification Program. Laura Begin, regulation Kentucky established more stringent radon Without objection, and with agreement of coordinator; Erica Brakefield, environmental requirements than those currently proposed. the agency, this administrative regulation was health supervisor; Brent Irvin, counsel; and All public comments were not addressed in deferred to the October 10 meeting of the Ken Spach, environmental health manager, the division’s Statement of Consideration. Subcommittee. represented the division. Kyle Hoylman, chair, Mr. Hoylman requested deferral of this A motion was made and seconded to and Steven Rice, vice chair, represented the administrative regulation to allow the advisory approve the following amendments: to amend Radon Program Advisory Committee and committee to consult with the division. Sections 1, 2, 4 through 7, and 9 to comply with appeared in opposition to this administrative In response to questions by Co- the drafting requirements of KRS Chapter 13A. regulation. Chair Harris, Mr. Hoylman stated that this Without objection, and with agreement of the Mr. Rice stated that, as vice chair of the administrative regulation was deficient because agency, the amendments were approved. Radon Program Advisory Committee, he the proposed credentialing agencies did not Radiology believed that this advisory committee had have even minimum specific radon contractor 902 KAR 100:180. Technologically enhanced been ignored, neglected, and misled during the credentialing, training, or standards programs. naturally occurring radioactive material related administrative regulation process pertaining Additionally, this administrative regulation to oil and gas development. to this administrative regulation. The division did not establish adequate consensus-based Department for Medicaid Services: Division had opted to act independently of the advisory standards. of Policy and Operations committee’s ruling regarding this administrative Ms. Begin stated that the division was 907 KAR 1:045. Reimbursement provisions regulation. KRS 211.9105 required the Radon in litigation regarding this administrative and requirements regarding community mental Program Advisory Committee to review and regulation, and amending this administrative health center services. comment on relevant administrative regulations regulation was an attempt to resolve the litigation 907 KAR 1:047. Community mental health promulgated by the division; however, the so that the program could resume enforcement. center primary care services. division had not contacted Mr. Rice. Emails The division reduced requirements that were Medicaid Services seemed to have been sent by the division to an more stringent that the authorizing statutes to 907 KAR 1:102. Advanced practice incorrect email address. Mr. Rice owned a radon the extent that public health and safety were still registered nurse services. measurement company and represented one maintained. The advisory committee had not met 907 KAR 1:104. Reimbursement for (1) component of the industry on the advisory in a while and experienced difficulty maintaining advanced practice registered nurse services. committee. The division had opted not to a quorum when it did meet; however, individual 907 KAR 1:479. Durable medical equipment enforce the prior version of this administrative advisory committee members were sent copies covered benefits and reimbursement. regulation, which had been developed in of this proposed administrative regulation. Payment and Services coordination with the industry representatives Regarding the credentialing agencies, the 907 KAR 3:005. Coverage of physicians’ on the advisory committee. Mr. Rice requested National Radon Safety Board was included in services. deferral of this administrative regulation to the amended after comments version of this 907 KAR 3:010. Reimbursement for allow the advisory committee to consult with the administrative regulation. physicians’ services. division. In response to the statements by Ms. Begin, Division of Protection and Permanency: Mr. Hoylman stated that, as chair of the Mr. Rice stated that KRS 194A.050(1) requires Child Welfare Radon Program Advisory Committee, he the secretary of the cabinet to promulgate 922 KAR 1:140 & E. Foster care and wanted to raise awareness of the role radon administrative regulations necessary to protect adoption permanency services. played in lung cancer in Kentucky. Kentucky the health of the individual citizens of the 922 KAR 1:320. Service appeals. leads the nation regarding lung cancer, with 695 Commonwealth. This administrative regulation 922 KAR 1:330. Child protective services. new cases diagnosed each year and with 495 does not protect the health of the citizens Division of Protection and Permanency: deaths annually. The annual financial burden because it fails to establish reasonable standards Child Welfare to Kentucky pertaining to radon-induced lung for the radon industry. Radon testing will be 922 KAR 1:421. Repeal of 922 KAR 1:420. cancer was estimated to be approximately less accurate, and radon mitigation will be less 922 KAR 1:430. Child protective services $153,000,000. Mr. Hoylman was himself a cancer effective at reducing lung cancer. in-home case planning and service delivery. survivor and had lost his father, a nonsmoker, to In response to a question by Co-Chair 922 KAR 1:470. Central registry. lung cancer in 2009. The home Mr. Hoylman’s Harris, Mr. Rice stated that his statement that 922 KAR 1:480. Appeal of child abuse and father lived in for over thirty (30) years contained this administrative regulation would cause radon neglect investigative findings. indoor radon concentrations seven (7) times testing to be less accurate and radon mitigation 922 KAR 1:490 & E. Background checks for greater than U.S. EPA’s action level. The division to be less effective was his opinion and based in foster and adoptive parents, caretaker relatives, ceased enforcing the requirements of this fact pertaining to the history of this issue. Mr. kinship caregivers, fictive kin, and reporting administrative regulation as a result of litigation Spach stated that this administrative regulation requirements. and an injunction agreed to by the division and was originally developed for both public health 922 KAR 1:550 & E. Operator’s license for the litigants. The currently proposed version protection and industry regulation. Because of children in the custody of the cabinet. of this administrative regulation was the result litigation, this administrative regulation was The Subcommittee adjourned at 2:07 p.m. of agreements made pursuant to the litigation amended to reduce the burden on industry until October 10, 2017, at 1 p.m. without approval of the advisory committee. by streamlining and reducing requirements, Although the advisory committee had unfilled without sacrificing public health protection. appointments and difficulty maintaining a In response to a question by Co-Chair Harris, quorum, the advisory committee was confident Senator Kerr, and Representative Marzian, Ms. that a better, consensus-based regulatory Begin stated that the division agreed to defer THE KENTUCKY GENERAL ASSEMBLY 73 2018 Prefiled Bills

BR1 - Representative Jerry Miller BR15 - Representative Jim Wayne, amend KRS 139.105, 139.200, 139.220, (8/16/2017) Representative Tom Burch, Representative 139.270, 139.340 and 139.740 to impose sales Jeffery Donohue, Representative Joni tax on selected services; create a new section of AN ACT relating to the overtaking of Jenkins, Representative Mary Lou Marzian, KRS Chapter 141 to provide for a refundable bicycles on a roadway. Representative Reginald Meeks, Representative Kentucky earned income tax credit; amend Amend KRS 189.300 to Attica Scott KRS 243.0305 and 243.990 to recognize provide that the operator of any vehicle moving (7/13/2017) changes in the distilled spirits case tax; amend upon a highway is to keep to the right unless KRS 138.130, 138.140, and 138.143 to change signage or markings indicate otherwise; amend AN ACT relating to taxation. the tax on cigarette rolling papers, to raise the KRS 189.340 to require vehicles overtaking Amend KRS 140.130 to tobacco taxes, to impose a floor stock tax, and bicycles to pass at a distance of at least three decouple from changes to the federal estate tax to tax e-cigarettes; amend KRS 65.125, 65.674, feet; provide that if there not a minimum since 2003; amend KRS 141.010 to provide 67.862, 67.938, 67A.843, 68.245, 68.248, distance of three feet available, the passing for a reduction and phase-out of the pension 82.095, 97.590, 132.0225, 132.023, 132.024, vehicle is to use reasonable caution; specify exclusion, disallow the domestic production 132.027, 132.029, 157.440, 160.470, 160.473, when a motor vehicle may pass a bicycle to the activities deduction, establish a cap for itemized 67C.147, 78.530, 342.340, and 134.810 to left of the center of a roadway. deductions, and define “taxpayer”; amend KRS remove provisions that allow for recall of (Prefiled by the sponsor(s).) 141.020 to provide for changes to income tax certain tax rates and make conforming and rates; amend KRS 141.066 to make a technical technical changes; create a new section of KRS BR2 - Representative Diane St. Onge correction; amend KRS 141.0205 to recognize Chapter 141 to provide for a refundable noise (6/5/2017) and order changes in income tax credits; amend mitigation credit; repeal KRS 132.017, 132.018, KRS 141.0401 to lower the exclusion threshold; 132.025, 132.720, 143A.035, and 243.710, AN ACT relating to public safety. amend KRS 141.120 to change apportionment relating to recall petitions and to various tax Amend KRS 446.010 to methods to use a “throwback” rule and market- rates; provide that estate tax provisions apply define “unmanned aircraft system”; create a based sourcing for receipts; amend KRS for deaths occurring on or after August 1, 2018, new section of KRS Chapter 500 to prescribe 141.200 to require “combined” reporting for sales tax provisions are effective for periods permitted and prohibited uses of drones; corporations; amend KRS 134.810, 136.310, beginning on or after October 1, 2018, motor provide exceptions; prohibit use of evidence 136.530, 141.040, 141.121, 141.206, and fuels compensation provisions are effective obtained by a drone in violation of stated 141.420 to conform; amend KRS 141.205 to August 1, 2018, and property tax provisions are prohibitions; authorize that section to be cited recognize “tax haven” foreign countries and for assessments on and after January 1, 2019. as the “Citizens’ Freedom from Unwarranted tax all income apportioned or allocated to (Prefiled by the sponsor(s).) Surveillance Act”; create a new section of those countries; amend KRS 141.383, 148.544, KRS Chapter 501 to clarify criminal liability and 148.546 to make the film industry tax BR25 - Representative Jeffery Donohue for offenses committed using a drone; create a credit nonrefundable and nontransferable; (8/14/2017) new section of KRS Chapter 525 to create the create a new section of KRS 6.905 to 6.935 offense of obstructing an emergency responder. to require review and sunset of all economic AN ACT relating to death in the line of (Prefiled by the sponsor(s).) development tax credits; amend KRS 131.190 duty benefits and declaring an emergency. to allow LRC employees to review selected Amend KRS 16.601 and BR14 - Representative Tom Burch tax documents; amend KRS 138.270 to reduce 61.621 to increase minimum death benefits (6/22/2017) motor fuels dealer compensation to one payable to the surviving spouse of a member of percent; amend KRS 132.020 to make the real the state-administered retirement systems from AN ACT relating to the reporting of property tax rate 12.2 cents per $100, remove 25% to 50% of the deceased member’s final child abuse, neglect, or dependency. the rate adjustment provision, and remove rate of pay if the member died as a result of an Amend KRS 620.030 to establish that the recall provisions; amend KRS 132.260 to act occurring in the line of duty; amend KRS if a person knows or has reasonable cause to clarify requirements for reporting of rental 61.542 to provide that the surviving spouse believe that a child is dependent, neglected, or space for mobile or manufactured homes, shall supersede all previously designated abused, causes an oral or written report of the private aircraft, and certain boats or vessels; beneficiaries in the case of line-of-duty death dependency, neglect, or abuse to be made, is amend KRS 132.730, 132.751, 132.810, and benefits payable from the systems administered employed by a local law enforcement agency, 132.815 to clarify property tax treatment of by the Kentucky Retirement Systems unless the the Department of Kentucky State Police, the manufactured homes; amend KRS 140.300 to member files a valid beneficiary designation cabinet or its designated representative, the clarify the treatment of agricultural valuation form after marriage to his or her spouse; Commonwealth’s attorney, or a county attorney, on inherited property; amend KRS 279.200, provide that eligible surviving spouses of then that person shall make the oral or written 279.530, 279.220, and 139.530 to repeal rural members who died in the line of duty prior to report to his or her employer and to one of the electric and telephone co-op taxes; amend KRS the effective date of the Act shall receive the other entities authorized to receive the report. 132.097 and 132.099 to amend the exemption increased line of duty death benefits; provide (Prefiled by the sponsor(s).) for personal property shipped out of state; that a surviving spouse of a hazardous duty

74 2017 Interim LEGISLATIVE RECORD member who died as a result of an act occurring BR40 - Representative Kenny Imes Amend KRS 118A.110 to in the line of duty on or after January 1, 2017, (6/27/2017) define “retention election” for appellate judges; who was ineligible for the minimum monthly create a new section of KRS Chapter 118A death benefits because he or she was not named AN ACT proposing to amend Section to create an election process for retaining beneficiary shall be eligible for the benefits 29 of the Constitution of Kentucky relating to appointed appellate judges, following the provided by this Act; EMERGENCY. administrative regulations. ratification of a constitutional amendment to (Prefiled by the sponsor(s).) Propose to amend Section 29 of provide for appointments of appellate judges; the Constitution of Kentucky to permit the amend KRS 118A.020, 118A.030, 118A.060, BR28 - Representative Jason Nemes General Assembly or an agency or committee 118A.100, and 118A.140 to conform; (9/20/2017) it creates to review, approve, or disapprove repeal, reenact, and amend KRS 21A.020 any administrative regulation of the executive to set staggered terms for appellate judges; AN ACT proposing to amend Sections branch during or between regular sessions of EFFECTIVE contingently on January 1, 2020. 117, 118, 119, and 122 of the Constitution of the General Assembly; submit to the voters (Prefiled by the sponsor(s).) Kentucky relating to the election of appellate for approval or disapproval; supply ballot judges. language. BR91 - Representative Regina Huff Propose to amend Sections (Prefiled by the sponsor(s).) (7/25/2017) 117, 118, 119, and 122 of the Constitution of Kentucky to fill terms of justices of the BR41 - Representative Kenny Imes AN ACT relating to suicide prevention Supreme Court and judges of the Court of (6/6/2017) training. Appeals by appointment by the Governor from Amend KRS 156.095 to require a list of three nominees provided by the judicial AN ACT proposing to amend Section two hours of in-person suicide prevention nominating commission; provide for appointed 95 of the Constitution of Kentucky relating to professional development training every justices and judges who seek additional terms the election of state officers. other school year for middle and high school to stand for elections in their districts; limit Propose to amend Section 95 principals, guidance counselors, and teachers; individuals to two full terms of office; schedule of the Constitution of Kentucky to hold the require a newly hired staff member to receive transitional provisions; submit to the voters for election of the Governor, Lieutenant Governor, a packet of information on suicide prevention approval or disapproval. Treasurer, Auditor of Public Accounts, Attorney when the person is hired in a year training is (Prefiled by the sponsor(s).) General, Secretary of State, and Commissioner not provided; amend KRS 158.070 to delete of Agriculture, Labor and Statistics in even- requirement for two hours of self-study review BR37 - Representative Scott Wells numbered years, every four years, beginning in for suicide prevention training. (8/25/2017) 2024; provide transitional calendar; submit to (Prefiled by the sponsor(s).) the voters for ratification or rejection; provide AN ACT relating to area development ballot language. BR97 - Representative George Brown Jr districts and declaring an emergency. (Prefiled by the sponsor(s).) (7/12/2017) Amend KRS 147A.117 to require that the Auditor of Public Accounts’ BR54 - Representative Jeffery Donohue AN ACT relating to criminal histories bill shall not exceed a quote given to an area (6/8/2017) of job applicants. development district by a certified public Create a new section of accountant for the same audit; EMERGENCY; AN ACT relating to railroads. KRS Chapter 344 to prohibit employers EFFECTIVE July 1, 2018. Create a new section of KRS from considering or requiring disclosure of (Prefiled by the sponsor(s).) Chapter 277 to require two-person crews on prior criminal history as part of the initial job trains or light engines used in connection application; title the Act “Ban the Box - The BR38 - Senator John Schickel with the movement of freight; establish civil Criminal Record Employment Discrimination (5/15/2017) penalties for failure to have a two-person crew. Act.” (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) AN ACT relating to Kentucky school bus drivers. BR64 - Senator Johnny Ray Turner BR102 - Representative Suzanne Miles, Create a new section of KRS (6/1/2017) Representative Jason Nemes Chapter 2 to designate and observe May 1 of (6/29/2017) every year as “School Bus Driver Day.” AN ACT relating to vacating (Prefiled by the sponsor(s).) convictions for reckless homicide. AN ACT relating to the natural Amend KRS 431.073 to allow resources severance and processing tax. BR39 - Representative Sal Santoro convictions for reckless homicide to be vacated Amend KRS 143A.010 to (5/16/2017) and expunged if the offender has first been amend the definition of “processing” to include granted a partial pardon by the Governor. the act of loading or unloading limestone that AN ACT relating to Kentucky school (Prefiled by the sponsor(s).) has not otherwise been severed or treated in bus drivers. the Commonwealth; amend KRS 143A.035 Create a new section of KRS BR67 - Representative Jason Nemes to allow a credit for substantially identical Chapter 2 to designate and observe May 1 of (9/20/2017) severance or processing taxes paid to another every year as “School Bus Driver Day.” state or political subdivision thereof; provide (Prefiled by the sponsor(s).) AN ACT relating to appellate judges. that no taxpayer may claim a total amount THE KENTUCKY GENERAL ASSEMBLY 75 of credit that exceeds his or her tax liability; AN ACT relating to the expansion of amend KRS 243.500 to exempt limited or full allow the Department of Revenue to report tax gaming and making an appropriation therefor. casino gaming; amend KRS 525.090 to exempt credit information to the Legislative Research Create a noncodified section persons engaged in casino gaming; amend Commission; amend other sections to conform; to state the findings of the General Assembly; KRS 528.010 to exempt gambling activity and EFFECTIVE August 1, 2018. amend KRS 154A.010 to define, “authorizing devices licensed under KRS Chapter 154A; (Prefiled by the sponsor(s).) location,” “casino,” “county,” “county amend KRS 528.020 to conform; amend KRS legislative body,” “department,” “full casino 528.070 to exempt activity licensed under BR113 - Senator Brandon Smith gaming,” “gaming licensee,” “gross gaming KRS Chapter 154A; amend KRS 528.080 (9/8/2017) revenue,” “handle,” “licensee,” “limited to exempt those with the appropriate license casino gaming,” and “principal”; amend KRS required under KRS Chapter 154A; amend AN ACT relating to sign language 154A.030 to expand the Lottery Corporation KRS 528.100 to exempt limited or full casino interpretation in the House and Senate board membership and duties; amend KRS gaming licensed under KRS Chapter 154A; chambers. 154A.040 to include casino licensees; amend EFFECTIVE DATE DELAYED. Amend KRS 7.100 to require 154A.063 to remove prohibition against casino (Prefiled by the sponsor(s).) the Legislative Research Commission to gaming; create new sections of KRS Chapter provide sign language interpretation in each 154A to require a local option election in any BR155 - Senator Julian Carroll chamber of the General Assembly whenever the precinct wanting to host a casino; describe (9/20/2017) General Assembly is in session. the duties of the county clerk and sheriff in (Prefiled by the sponsor(s).) a casino gaming local option election; state AN ACT relating to sports wagering requirements for local option elections held on and making an appropriation therefor. BR114 - Representative Chris Harris, a day other than a regular election day; require Create a new section of KRS Representative Rocky Adkins, Representative the corporation to advertise an invitation to bid Chapter 230 to require the Kentucky Horse Angie Hatton, Representative , for casinos; require the corporation to evaluate Racing Commission to institute a sports Representative Kevin Sinnette all proposals for full casinos; establish initial wagering system; amend KRS 230.210 (6/30/2017) licensing fees for full casinos at $50 million to define “exempt sports contest,” “sports with an initial licensing period of 10 years and wagering,” and “sports wagering facility”; AN ACT relating to the Public Service annual renewal thereafter at $6 million per amend KRS 230.215 to declare it the policy Commission. year; permit limited casino gaming at horse of the Commonwealth to encourage the Create a new section of KRS racing tracks licensed under KRS Chapter 230; conduct of wagering on sporting events, Chapter 278 to require the Public Service establish requirements for limited casinos; when allowed by federal law, and to vest Commission to reconsider previously issued establish requirements for any track holding a forceful control over sports wagering in the orders that involve multistate transactions if limited casino license; establish requirements racing commission; include consideration of the orders involve a multistate transaction for principals of any corporation granted members of professional and collegiate sports that requires approval from another state a casino license; create license application organizations in the Governor’s appointments public utility commission and the out-of-state requirements for casino, manufacturer, or to the commission; amend KRS 230.240 to public utility commission fails to approve the supplier’s licenses; prohibit anyone not licensed allow the director of the racing commission transaction or utility plan; require the Public from selling, leasing, or otherwise furnishing to take personnel action relating to sports Service Commission to review its previous gaming supplies; prohibit anyone under the wagering; amend KRS 230.260 to include order and determine whether the order is still age of 21 from participating in casino gaming; promotion of fair sports wagering among the in the public interest of Kentucky ratepayers; require the Lottery Corporation to determine purposes of the racing commission; create a provide that the provisions of this Act shall occupations related to casino gaming that new section of KRS Chapter 230 to establish apply retroactively to all Public Service require licensure and establish criteria for licensing requirements and establish a licensing Commission orders issued on or after July 1, occupational licensing; permit the corporation fee of $250,000; create a new section of KRS 2013. to initiate disciplinary action against applicants Chapter 230 to require the racing commission (Prefiled by the sponsor(s).) and license holders; establish an appeal process; to promulgate administrative regulations establish a gaming tax of 31% and limit that prescribing the manner in which sports BR115 - Representative Chris Harris, money to the benefit of the state retirement wagering shall be conducted; provide minimum Representative Rocky Adkins, Representative systems for the first 10 years; establish an criteria; prohibit participants from wagering on Angie Hatton, Representative Rick Nelson, admission tax of $3 per person per day; a sporting event; create a new section of KRS Representative Kevin Sinnette establish the casino gaming revenue distribution Chapter 230 to establish a 20 percent tax on (6/30/2017) trust fund; establish the regional tourism and the total amount wagered at sports wagering infrastructure development fund and provide facilities; create a new section of KRS Chapter Direct the Public Service criteria for projects seeking money from the 230 to establish the sports wagering distribution Commission to reexamine the electric rates fund; waive 15 U.S.C. sec. 1172, 1173 and trust fund and appropriate moneys from that charged to certain ratepayers to determine if 1174 for devices authorized by this Act; require fund; amend KRS 230.320 to include sports they remain fair, just, and reasonable. the corporation to promulgate administrative wagering among the activities that are regulated (Prefiled by the sponsor(s).) regulations to define and limit games and by the racing commission; amend KRS devices permitted for gaming in casinos; 230.360 to include sports wagering among the BR149 - Representative Dennis Keene provide guidelines for exclusion or ejection activities that are not subject to local control; (9/18/2017) of certain persons; define “cheat” and provide amend KRS 230.990 to establish penalties for penalties for those who cheat at casino games; tampering with the outcome of a sporting event

76 2017 Interim LEGISLATIVE RECORD and participant wagering on a sporting event; a substance abuse screening program for adult Security Act to repeal the Government Pension EFFECTIVE UPON CONTINGENCY: Act recipients of public assistance, food stamps, Offset provision. takes effect only if the federal Professional and and state medical assistance. (Prefiled by the sponsor(s).) Amateur Sports Protection Act is repealed by (Prefiled by the sponsor(s).) Congress or is rendered void by the United BRs by Sponsor States Suprem Court. BR175 - Representative C. Wesley Morgan * - denotes primary sponsorship of (Prefiled by the sponsor(s).) (8/24/2017) BRs

BR165 - Representative Jim Wayne AN ACT relating to public protests. Senate (8/8/2017) Create a new section of KRS Carroll, Julian M. Chapter 525 to create a Class a misdemeanor, BR155* AN ACT relating to firearms. disruption of a public protest; create a new Schickel, John Create a new section of KRS Chapter section of KRS Chapter 522 to prohibit any BR38* 527 to prohibit the unlawful storage of a public servant from preventing a peace officer Smith, Brandon firearm. from performing official duties at a protest. BR113* (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) Turner, Johnny Ray BR64* BR170 - Representative Attica Scott, BR182 - Representative Rick Nelson House Representative Kelly Flood (8/17/2017) Adkins, Rocky (8/31/2017) BR114, 115 AN ACT relating to electric utility Brown Jr, George AN ACT relating to student criminal billing. BR97* history background checks. Create a new section of KRS Burch, Tom Create a new section of KRS Chapter 278 to place a cap on the amount that BR14*, 15 Chapter 164 to prohibit public postsecondary an electric utility can bill for a basic service Donohue, Jeffery institutions from inquiring about a prospective charge. BR15, 25*, 54* student’s criminal history prior to admission, (Prefiled by the sponsor(s).) Flood, Kelly except for certain types of offenses; allow an BR170 institution to inquire about a student’s criminal BR195 - Representative Regina Huff Harris, Chris history after admission, for the purposes of (9/15/2017) BR114*, 115* providing support services and informing Hatton, Angie decisions regarding a student’s participation AN ACT relating to a day of prayer for BR114, 115 in campus activities, organizations, and students. Huff, Regina residency; allow an institution to inquire about Create a new section of KRS BR91*, 195* a student’s criminal history prior to admission Chapter 2 designating the last Wednesday in Imes, Kenny into a professional degree program, but September of each year as A Day of Prayer for BR40*, 41*, 199* prohibit denial of admission based solely on Kentucky’s Students. Jenkins, Joni L. criminal history; require institutions to provide (Prefiled by the sponsor(s).) BR15 counseling regarding occupational licensing Keene, Dennis requirements to a professional degree student BR197 - Representative Dennis Keene, BR149*, 197* who has a criminal history. Representative Rick Rand Marzian, Mary Lou (Prefiled by the sponsor(s).) (9/18/2017) BR15 Meeks, Reginald BR172 - Representative C. Wesley Morgan AN ACT proposing an amendment to BR15 (8/22/2017) Section 226 of the Constitution of Kentucky Miles, Suzanne relating to casino gaming. BR102* AN ACT relating to carrying concealed Propose to amend Section 226 Miller, Jerry T. weapons. of the Constitution of Kentucky to authorize BR1* Create a new section of the General Assembly to define and permit Morgan, C. Wesley Chapter 237 to allow concealed deadly casino gaming; prior to July 1, 2029, require BR172*, 173*, 175* weapons to be carried without a license in same that proceeds be used to pay for oversight of Nelson, Rick G. locations as concealed carry license holders casino gaming, and mandate that 100 percent BR114, 115, 182* may carry them; amend KRS 237.115 and of proceeds in excess of oversight costs go to Nemes, Jason 527.020 to conform. retirement systems; after July 1, 2029, allow the BR28*, 67*, 102 (Prefiled by the sponsor(s).) General Assembly to allocate proceeds. Rand, Rick (Prefiled by the sponsor(s).) BR197 BR173 - Representative C. Wesley Morgan Santoro, Sal (8/18/2017) BR199 - Representative Kenny Imes BR39* (9/18/2017) Scott, Attica AN ACT relating to public assistance. Urge the United States BR15, 170* Amend KRS 205.200 to create Congress to amend Title II of the Social THE KENTUCKY GENERAL ASSEMBLY 77 Sinnette, Kevin Judges and Court Commissioners Drone surveillance or use of armed drones by BR114, 115 L certain entities, prohibition - BR2 St. Onge, Diane Labor and Industry BR2* Legislative Research Commission Agriculture Wayne, Jim Licensing Commissioner of, time of election, change to BR15*, 165* Lieutenant Governor even-numbered years - BR41 Wells, Scott Lottery Inherited property, agricultural valuation of BR37* M - BR15 Index Headings Medicaid Military Affairs and Civil Defense Amusements and Recreation A Minerals and Mining Casino Accountants Motor Vehicles gaming, constitutional amendment for - Aeronautics and Aviation O BR197 Agriculture Occupations and Professions gaming, licensing for - BR149 Amusements and Recreation P Sports wagering, authorization for - BR155 Appropriations Peace Officers and Law Enforcement Area Development Districts Personnel and Employment Appropriations Athletics Police, City and County Sports wagering tax - BR155 Attorney General Police, State Auditor of Public Accounts Poverty Area Development Districts B Prosecutors Cost of audits - BR37 Boats and Boating Public Assistance C Public Medical Assistance Athletics Children and Minors Public Officers and Employees Sports wagering, authorization for - BR155 Circuit Clerks Public Safety Civil Procedure Public Utilities Attorney General Civil Rights R Time of election, change to even-numbered Commendations and Recognitions Racing years - BR41 Constitution, Ky. Railroads County Clerks Retirement and Pensions Auditor of Public Accounts Court of Appeals Retroactive Legislation Audits for area development districts, costs Court, Supreme S - BR37 Courts, Circuit Safety Time of election, change to even-numbered Crimes and Punishments Secretary of State years - BR41 Criminal Procedure Short Titles and Popular Names D State Agencies Boats and Boating Deaths Substance Abuse Federally documented vessels, reporting Disabilities and the Disabled T requirements for property tax - BR15 Drugs and Medicines Taxation E Taxation, Income--Corporate Children and Minors Economic Development Taxation, Income--Individual Child dependency, neglect, or abuse, Education, Elementary and Secondary Taxation, Inheritance and Estate requirement to report - BR14 Education, Higher Taxation, Property School Effective Dates, Delayed Taxation, Sales and Use Bus Driver Day, designatiing May 1 as - Effective Dates, Emergency Taxation, Severance BR38 Elections and Voting Teachers Bus Driver Day, designating May 1 as - BR39 Emergency Medical Services Transportation Unlawful storage of a firearm, prohibition of Energy Treasurer - BR165 F U Federal Laws and Regulations Universities and Colleges Circuit Clerks Fees W Ballots, retention elections, appellate judges Firearms and Weapons Wills and Estates - BR67 G Felony expungement, reckless homicide - Gambling BR Index BR64 General Assembly Governor Accountants Civil Procedure H Audits for area development districts - BR37 Felony expungement, reckless homicide - Health and Medical Services BR64 Highways, Streets, and Bridges Aeronautics and Aviation Horses and Horse Racing Aircraft, property tax, reporting requirements Civil Rights J - BR15 Employment discrimination, requirement

78 2017 Interim LEGISLATIVE RECORD of criminal history on job applications, checks on - BR170 Ballots, retention elections, appellate judges prohibition - BR97 servants, prohibit orders to stand down to - BR67 Public assistance, substance abuse screening peace officers - BR175 Casino gaming, local option elections for - - BR173 Unlawful storage of a firearm, prohibition of BR149 Restoration, felony expungement, reckless - BR165 Constitutional homicide - BR64 Warrantless drone surveillance, prohibition amendment, election of statewide - BR2 constitutional officers - BR41 Commendations and Recognitions amendment, General Assembly, approval or School Criminal Procedure disapproval of administrative regulations Bus Driver Day, designatiing May 1 as - Felony expungement, reckless homicide - - BR40 BR38 BR64 Bus Driver Day, designating May 1 as - BR39 Unlawful storage of a firearm, prohibition of Emergency Medical Services - BR165 Obstructing an emergency responder - BR2 Constitution, Ky. Warrantless drone surveillance, prohibition Administrative regulations, General Assembly, - BR2 Energy final approval or disapproval of - BR40 Public Service Commission, reconsideration of Amendment, appellate judges, appointed by Deaths orders, multistate transactions - BR114 Governor - BR28 Estate tax, calculation of - BR15 Amendments, contingent on ratification, effect Federal Laws and Regulations of bill - BR67 Disabilities and the Disabled Government Pension Offset, Social Security Casino gaming, amendment permitting - Sign language interpretation, House and Senate Act - BR199 BR197 chambers, Legislative Research Commission Drone surveillance or use of armed drones by to provide - BR113 Fees certain entities, prohibition - BR2 Casino gaming, licensing fees for - BR149 Election of statewide constitutional officers, Drugs and Medicines Sports wagering, licensing fees for - BR155 change to even-numbered years - BR41 Public assistance, substance abuse screening - BR173 Firearms and Weapons County Clerks Deadly weapons, concealed carry without Election of statewide constitutional officers, Economic Development license - BR172 change to even-numbered years - BR41 Tax credits, sunset of - BR15 Drone surveillance or use of armed drones by certain entities, prohibition - BR2 Court of Appeals Education, Elementary and Secondary Unlawful storage of a firearm, prohibition of Judges, Day of prayer for students, designation of - - BR165 appointed by Governor - BR28 BR195 retention elections following appointment to School Gambling office - BR67 Bus Driver Day, designatiing May 1 as - Casino term limits - BR28 BR38 gaming, constitutional amendment for - Bus Driver Day, designating May 1 as - BR39 BR197 Court, Supreme Suicide prevention training, requirement for gaming, licensing for - BR149 Justices, - BR91 Sports wagering, authorization for - BR155 appointed by Governor - BR28 retention elections following appointment to Education, Higher General Assembly office - BR67 Student criminal background checks, Administrative regulations, final approval or term limits - BR28 restrictions on - BR170 disapproval of, constitutional amendment - BR40 Courts, Circuit Effective Dates, Delayed Chambers, sign language interpretation in, Felony expungement, reckless homicide - Constitutional amendment, passage of - BR149 Legislative Research Commission to provide BR64 Natural resources severance tax, August 1, 2018 - BR113 - BR102 Crimes and Punishments Retention elections, appellate judges - BR67 Governor Child dependency, neglect, or abuse, Sports wagering, contingent upon repeal or Appellate judges, appointment of - BR28 requirement to report - BR14 voiding of federal Sports Protection Act - Day of prayer for students, proclamation of Deadly weapons, concealed carry without BR155 - BR195 license - BR172 Election, change time to even-numbered years Felony expungement, reckless homicide - Effective Dates, Emergency - BR41 BR64 Audits for area development districts, costs, Felony expungement, reckless homicide, partial Masking to evade discovery, prohibit during a July 1, 2018 - BR37 pardons - BR64 protest - BR175 Obstructing an emergency responder - BR2 Elections and Voting Health and Medical Services Public Appellate judges, after appointed term, Public assistance, substance abuse screening postsecondary students, criminal background retention elections - BR28 - BR173 THE KENTUCKY GENERAL ASSEMBLY 79 Bus Driver Day, designating May 1 as - BR39 of - BR155 Highways, Streets, and Bridges Bicycles overtaken on roadway, distance to Peace Officers and Law Enforcement Railroads maintain - BR1 Child dependency, neglect, or abuse, Civil penalties, violation of two-person train requirement to report - BR14 crew requirement - BR54 Horses and Horse Racing Warrantless drone surveillance or use of armed Train crews, two-person requirement - BR54 Limited casino gaming, tracks authorized for drones by certain entities, prohibition - BR2 - BR149 Retirement and Pensions Sports wagering, racing commission oversight Personnel and Employment Casino of - BR155 Employment discrimination, requirement gaming, allocation in support of - BR197 of criminal history on job applications, gaming, revenue generated by - BR149 Judges and Court Commissioners prohibition - BR97 Government Pension Offset, Social Security Appellate Act - BR199 judges, appointed by Governor - BR28 Police, City and County Line-of-duty judges, term limits - BR28 Warrantless drone surveillance or use of armed death benefits, adjustment of - BR25 Retention elections following appointment, drones by certain entities, prohibition - BR2 death benefits, surviving spouse as default appellate judges - BR67 beneficiary - BR25 Police, State Sports wagering, revenue generated by - Labor and Industry Warrantless drone surveillance or use of armed BR155 Employment discrimination, requirement drones by certain entities, prohibition - BR2 of criminal history on job applications, Retroactive Legislation prohibition - BR97 Poverty Felony expungement, reckless homicide - Public assistance, substance abuse screening BR64 Legislative Research Commission - BR173 Public Service Commission, reconsideration of House and Senate chambers, sign language orders, retroactive to July 1, 2013 - BR114 interpretation in, provision for - BR113 Prosecutors Felony expungement, reckless homicide - Safety Licensing BR64 Bicycles overtaken on roadway, distance to Casino gaming, licensing for - BR149 maintain - BR1 Deadly weapons, concealed carry without Public Assistance license - BR172 Public assistance, substance abuse screening Secretary of State Sports wagering, licensing for - BR155 - BR173 Appellate judges, retention elections, certification of - BR67 Lieutenant Governor Public Medical Assistance Election, change time to even-numbered years Election, change time to even-numbered years Public assistance, substance abuse screening - BR41 - BR41 - BR173 Short Titles and Popular Names Lottery Public Officers and Employees Ban the Box-The Criminal Record Employment Casino gaming, oversight of - BR149 Election of statewide constitutional officers, Discrimination Act - BR97 change time to even-numbered years - BR41 Citizens’ Freedom from Unwarranted Medicaid Public servants, prohibit orders to stand down Surveillance Act - BR2 Public assistance, substance abuse screening to peace officers - BR175 - BR173 Retirement, adjustment of line-of-duty death State Agencies benefits - BR25 Cabinet for Health and Family Services, child Military Affairs and Civil Defense dependency, neglect, or abuse, requirement to Drone surveillance by certain entities, military Public Safety report - BR14 training exemption - BR2 Unlawful storage of a firearm, prohibition of Kentucky Retirement Systems, adjustment of - BR165 line-of-duty death benefits - BR25 Minerals and Mining Warrantless drone surveillance or use of armed Public Natural resources severance tax, definition of drones by certain entities, prohibition - BR2 Service Commission, reconsideration of “processing” - BR102 orders, multistate transactions - BR114 Public Utilities Service Commission, reexamination of - Motor Vehicles Electric BR115 Bicycles overtaken on roadway, distance to rates, reexamination of rate proceedings - maintain - BR1 BR115 Substance Abuse utilities, limit basic service charge - BR182 Public assistance, substance abuse screening Occupations and Professions Public Service Commission, multistate - BR173 Casino occupations, licensing for - BR149 transactions - BR114 School Taxation Bus Driver Day, designatiing May 1 as - Racing Casinos, BR38 Sports wagering, racing commission oversight admissions tax on - BR149

80 2017 Interim LEGISLATIVE RECORD gaming tax on - BR149 for violation - BR54 Comprehensive tax reform - BR15 Film industry credit, nonrefundable tax credit Treasurer - BR15 Election, change time to even-numbered years Motor fuels tax, minimum rate, changing of - BR41 Local food, - BR15 Natural resources severance tax, definition of Universities and Colleges from page 3 “processing” - BR102 Student criminal background checks, Sports wagering, excise tax on - BR155 restrictions on - BR170 versity’s initial contract with Aramark in 2014 Tobacco taxes, rates, increase of - BR15 had “stringent requirements” that Aramark Wills and Estates commit $2 million to purchasing either Ken- Taxation, Income--Corporate Estate tax, seperation from the federal tax - tucky Proud or local food. The contract was Domestic production activities deduction, BR15 revised to require a $1.65 million commitment disallowing - BR15 beginning this year to purchases with a specific Tax haven, taxation of any transfer of income to impact on Kentucky food and farm businesses. - BR15 If the requirements of the contract aren’t Unitary method, use for determining taxable met, Smith said cash penalties can be imposed. income - BR15 Telehealth, That said, there are some obstacles to pur- chasing locally, Smith said, including what he Taxation, Income--Individual from page 3 called “seasonality” – or the fact that not all Earned income credit, creating - BR15 Kentucky-grown food is harvested year round. Itemized deductions, establishing maximum health care to our veterans who need it, espe- But the committee’s co-chair Sen. Paul Horn- amount of - BR15 cially in the rural areas of Kentucky,” said Dr. back, R-Shelbyville, said there are some work- Rates imposed, changes to - BR15 Tuyen T. Tran of the Lexington VA Medical arounds, depending on the crop. Center. “It’s FaceTime taken a notch higher.” “There are some foods that do have a good Taxation, Inheritance and Estate The closest VA medical center for the esti- shelf life,” said Hornback. One of those foods, he Estate tax, seperation from the federal tax - mated 650 veterans in Jackson County is about said, is apples. Washington State, which is a ma- BR15 70 miles away, Rader said. There is no hospital jor apple grower, has the infrastructure to store of any kind or even a long-term care facility in apples for long periods of time, said Hornback. Taxation, Property the county of about 13,000. “If farmers or Piazza (Produce) had the Real Tran described technology that allows proper infrastructure, you could have apples all property, fixed tax rate, establishing - BR15 doctors to remotely listen to their patients’ during the school year,” he said, adding that it property tax rate, recall provision, removal of hearts and lungs. A high-definition camera could be a great opportunity for Eastern Ken- - BR15 can be used to examine ailments such as skin tucky farmers if trees were planted. lesions. He said the technology is so good that “There’s no need to import all the apples Taxation, Sales and Use doctors are able to treat the president with it that we eat. They could be grown here in the Services, imposition of tax on selected - BR15 instead of having to travel with him at all times. state of Kentucky,” he said. “There is not very much that I can’t do re- At Kentucky’s state parks, purchasing and Taxation, Severance motely that I have to do in person,” said Tran, serving Kentucky Proud foods has been a pri- Natural who is the medical center’s associate chief of ority since at least 2005, Kentucky State Parks resources severance tax, credit for taxes paid staff specializing in virtual care. Food Service Director Tom Brown said. Dining to another state - BR102 He said patients would still have to come rooms at state resort parks and state office build- resources severance tax, definition of to an outpatient satellite clinic like the one ing cafeterias run by the Kentucky Department “processing” - BR102 set to open on Oct. 1 at the library in Jackson of Parks have bought over $600,000 annually for County. Kentucky Proud foods in recent years, he said, Teachers “But it is still a heck of a lot better than with Kenny’s Farmhouse Cheese in Austin, KY, Day of prayer for students, designation of - driving all the way to Lexington or Louisville Purnell’s Sausage in Simpsonville, and Weisen- BR195 for their care,” Tran said. “The library seems to berger Mills in Midway among those purchases. Government Pension Offset, Social Security be a nice place. They can offer us a room in the Brown said Kentucky-sourced products Act - BR199 back so we can have some privacy. Patients and have historically been more costly than more Suicide prevention training, requirement for veterans don’t have any anxiety about walking generic food products, but the cost gap has nar- - BR91 into a library.” rowed. That has made it easier to incorporate Sen. Jimmy Higdon, R-Lebanon, said he more Kentucky food into their menus, he said. Transportation likes the idea of the service being offered in li- One of the more innovative Ken- Bicycles overtaken on roadway, distance to braries. tucky-sourced menu items that has been served maintain - BR1 “The libraries are working very hard to in state cafeterias is the hemp dawg, a beef brat School remain relevant with the way things are chang- infused with hemp that was also a hit at the Bus Driver Day, designatiing May 1 as - ing,” Higdon said. Kentucky State Fair. The Department of Parks BR38 Rep. Rob Rothenburger, R-Shelbyville, partnered with farmer and marketer David Bus Driver Day, designating May 1 as - BR39 suggested offering clinical video telehealth for Neville of Shelbyville to offer hemp dawgs in the Train crews, two-person requirement, penalties veterans at local health departments. cafeterias early this year, said Brown.

THE KENTUCKY GENERAL ASSEMBLY 81 Scott Oldham 17 Bourbon 26 27

Shelby 23 36 28 33 19 Woodford 11 13 Campbell 7 22 35 20 Boone Kenton

37 12 Clark 24 14 17 38 34 10 Spencer Jessamine 7

Bullitt Gallatin Hardin Madison Grant Pendleton

Jefferson Co. Detail Fayette Co. Detail Northern KY Detail

23 Boone KentonCampbell 11

Gallatin 24 17 Pendleton Bracken Districts Carroll Grant Trimble Mason Greenup Lewis Senate Plan (SH001A02) became law (KRS 5.101 - 5.138) August 23, 2013, with enactment of House Bill 1. Owen Robertson 27 20 18 Henry Harrison Oldham 7 Fleming Boyd 26 Nicholas Carter Scott Franklin Shelby Bourbon Rowan Jefferson Bath Elliott Woodford Lawrence Spencer Fayette Montgomery Anderson 31 Bullitt Clark Meade Menifee 38 28 Morgan Hancock Jessamine Johnson Powell Martin Mercer Henderson Breckinridge Nelson Washington Wolfe Daviess 22 Madison Magoffin Hardin Estill Union Garrard 8 Boyle 34 4 10 14 Lee Floyd McLean Larue Marion Breathitt Pike Webster 21 Ohio Grayson Lincoln 30 5 Jackson Owsley Knott Crittenden 6 Ta yl or Rockcastle Perry Hopkins Casey 29 Livingston Hart Green 25 Muhlenberg Butler Edmonson 15 Clay Caldwell Laurel Leslie Letcher Ballard Pulaski McCracken Adair 2 Lyon Warren Russell Barren Metcalfe Marshall Christian 32 Knox Carlisle 16 Harlan To dd Logan 9 Trigg Wayne Graves 3 Cumberland Allen Whitley Simpson Clinton McCreary Bell Hickman 1 Monroe Calloway Fulton

Produced by the Legislative Research Commission Geographic Information Systems Office, Room 26 Capitol Annex, Frankfort, KY, 40601, 502-564-8100, [email protected]

82 2017 Interim LEGISLATIVE RECORD Scott 59 Oldham

Bourbon 48 72 66 63 65 Shelby 62 43 33 67 41 32 77 34 58 76 69 42 56 40 35 36 64 31 Woodford Campbell 30 75 Boone Kenton 44 45 79 68 46 Clark 29 60 28 37 88 73 38 55 61 49 53 39 Jessamine 47 Spencer 78 26 71 Bullitt Gallatin 70 Pendleton Hardin Madison Grant

Jefferson Co. Detail Fayette Co. Detail Northern KY Detail

Boone KentonCampbell

Gallatin 61 Pendleton Bracken Kentucky House Districts Carroll Grant 98 Trimble 78 Mason Greenup Lewis House Plan (HH001M01) became law (KRS 5.201 - 5.300) August 23, 2013, with enactment of House Bill 1. 47 Owen Robertson 70 Henry Harrison 99 59 Boyd Oldham 62 Fleming Nicholas Carter 100 Scott 72 Franklin 96 Shelby Bourbon Rowan Jefferson 57 Bath Elliott 58 Lawrence Woodford Spencer Fayette Montgomery Anderson 56 Clark Meade Bullitt 53 74 Menifee 97 13 Morgan Hancock 27 26 49 Jessamine Johnson 11 55 Powell Martin Henderson Breckinridge Nelson Mercer 39 73 Washington Wolfe 7 Hardin 81 Magoffin 10 50 Estill Union Daviess 18 Madison 95 25 Boyle Garrard 93 Lee Floyd Marion Webster McLean 14 Larue 71 Breathitt Pike 89 Ohio Grayson Lincoln 91 92 Crittenden 12 Jackson Owsley 54 80 Knott 4 Ta yl or Rockcastle Hopkins 24 Casey Perry Hart Livingston Green 90 Muhlenberg Butler Edmonson 94 Clay 3 Caldwell 51 Laurel 84 15 17 19 Leslie Letcher Ballard Adair Pulaski McCracken 9 21 85 1 Lyon Warren Metcalfe Russell Marshall 16 Barren 86 Christian 83 Knox Carlisle Harlan 6 Logan 23 52 Trigg To dd 8 Wayne 87 Graves Cumberland 82 Simpson Allen McCreary Bell Hickman 2 5 22 Monroe Clinton Whitley Calloway Fulton 20

Produced by the Legislative Research Commission Geographic Information Systems Office, Room 26 Capitol Annex, Frankfort, KY, 40601, 502-564-8100, [email protected]

THE KENTUCKY GENERAL ASSEMBLY 83 2017 Interim LEGISLATIVE David A. Byerman, Robert Stivers Jeff Hoover Director SENATE PRESIDENT HOUSE SPEAKER RECORD Legislative Research Jimmy Higdon David Osborne Commission PRESIDENT PRO TEM DESIGNATE SPEAKER PRO TEM Published monthly by Damon Thayer Jonathan Shell the Legislative Research Robert Jenkins MAJORITY FLOOR LEADER MAJORITY FLOOR LEADER Commission, the Interim Deputy Director for Committee and Staff Ray S. Jones II Rocky Adkins RECORD is designed to in- MINORITY FLOOR LEADER MINORITY FLOOR LEADER form the citizens of Kentucky Coordination Dan “Malano” Seum David Meade of the between-sessions work Rob Weber MAJORITY CAUCUS CHAIrMAN MAJORITY CAUCUS CHAIRMAN of the General Assembly. Public Information Dorsey Ridley Dennis Keene Officer Paper subscriptions are MINORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN free upon request. Contact the Joe Cox Mike Wilson Kevin D. Bratcher LRC Public Information Office, Publications and Printing MAJORITY WHIP MAJORITY WHIP Capitol Annex, Frankfort KY, Officer Dennis Parrett Wilson Stone 40601 at 502-564-8100, ext. Rebecca Mullins MINORITY WHIP MINORITY WHIP 307 to subscribe. Hanchett The Kentucky Legislative Research Commission is a 16-member committee of the majority and minority leadership of The Interim RECORD can Editor, Typography and Design the Kentucky Senate and House of Representatives. Under Chapter 7 of the Kentucky Revised Statutes, the LRC constitutes also be read online at www. the administrative office for the General Assembly. Its director serves as chief administrative officer of the Legislature when lrc.ky.gov/legislation.htm. If Public Information Staff: it isn’t in session. you have a paper subscription Stephanie Newberg The Commission and its staff, by law and by practice, perform numerous fact-finding and service functions for members and would like to end your Jeff Fossett of the Legislature, employing professional, clerical and other employees required when the General Assembly is in session Steve Gatewood subscription and read the and during the interim period between sessions. These employees, in turn, assist committees and individual legislators Bruce Phillips Interim RECORD online only, in preparing legislation. Other services include conducting studies and investigations, organizing and staffing committee Bud Kraft please contact the LRC Public meetings and public hearings, maintaining official legislative records and other reference materials, providing information Keith Krey Information Office at 502-564- about the Legislature to the public, compiling and publishing administrative regulations, administering a legislative intern Jim Hannah 8100, ext. 307. Stories and program, conducting orientation programs for new legislators, and publishing a daily index and summary of legislative Susan Kennedy photographs may be reprinted actions during sessions. without permission, although The LRC is also responsible for statute revision, publishing and distributing the Acts and Journals following sessions, credit is appreciated. and for maintaining furnishings, equipment and supplies for the Legislature. It also functions as Kentucky’s Commission on Interstate Cooperation in carrying out the program of the Council of State Governments as it relates to Kentucky. Printed with state funds

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