2016 Interim LEGISLATIVE Volume 29, No. 3 July 2016 * Read on-line at www.lrc.ky.gov/legislation.htm RECORD Lawmakers identify child ID theft as concern

by Jim Hannah preventing additional lines of credit from being LRC Public Information opened. In 2014, the Bureau of Justice Statistics FRANKFORT – A Kentucky father found that more than 17 million people, or about was reviewing his credit report when, out of 7 percent of the nation, was the victim of a credit curiosity, he decided to check his 10-year-old theft, Overly said. She added that a privately- son’s credit history too. To the man’s surprise, funded report from 2012 that found children are his child had a credit score. Someone has stolen 35 times more likely to have their credit stolen the kid’s personal information and wrecked his than an adult. credit. Sen. Ralph Alvarado, R-Winchester, said Incidents like that were cited by House that 25 other states already have laws similar to Majority Caucus Chair Sannie Overly, D-Paris, the one proposed in Kentucky. and Sen. Ralph Alvarado, R-Winchester, during “I think we are going to see more and more their testimony June 28 before the Interim Joint states align to protect our most vulnerable in our Committee on Banking and Insurance. The two society,” he said, “and I think Kentucky needs to legislators urged their colleagues to pass a law join that this upcoming year as well.” that would allow parents to place a “security After Rep. Ron Crimm, R-Louisville, freeze” on their childrens’ credit reports. Such a asked at what age a child gets a Social Security move isn’t allowed under current laws. number, Alvarado said the Social Security “As policy makers and parents I think House Majority Caucus Chair Rep. Sannie Overly, Administration advises new parents to request protecting our children is one of the most D-Paris, talks about child ID theft during the Interim the number before they leave the hospital. important things that we do here in Frankfort,” Joint Committee on Banking and Insurance’s June Rep. Jonathan Shell, R-Lancaster, expressed Overly said. “That certainly includes protecting 28 meeting. disappointment that similar legislation, known childrens’ online identities and their credit as Senate Bill 23 and House Bill 119, didn’t pass profiles.” “It is a real nightmare for a lot of families,” the General Assembly earlier this year. She knew of a family whose two daughters’ Overly said. She explained that a security freeze “It seems so common sense and so logical,” identities were stolen after the family’s medical is designed to prevent a credit reporting company insurance had its data hacked. from releasing someone’s credit rating, thus Continued on page 2 Kentucky hemp has growing market potential, panel told by Rebecca Hanchett superpower in hemp production and processing pleased committee co-chair Sen. C.B. Embry, LRC Public Information in Kentucky. Governor’s Office of Agricultur- R-Morgantown. al Policy (GOAP) Executive Director Warren “Very good, I think it shows hemp is mov- FRANKFORT—More than half of Ken- Beeler told the Tobacco Settlement Agreement ing,” said Embry. tucky’s industrial hemp crop this year can be Fund Oversight Committee on July 6 that the Atalo got its start with $492,000 in state traced to nineteen counties, 58 farmers and one company’s hemp contracts this year cover over funds culled from a 16-year-old settlement be- company in Winchester. half the 4,500 acres planted statewide. tween the state and cigarette manufacturers after With 23,000 pounds of imported hemp seed “And so we’re intrigued by what they’re Kentucky made state-sponsored research legal destined for 2,466 acres, Atalo Holdings is a getting done,” said Beeler, sharing news that Continued on page 2 THE KENTUCKY GENERAL ASSEMBLY 1 Tobacco Settlement Hemp, Agreement from page 1 Fund Oversight Committee in 2013, said Beeler. It was the first project to Co-Chair Rep. receive state tobacco settlement dollars for a Wilson Stone, hemp-related project, the GOAP reported last D-Scottsville, year, and it is currently processing its product comments on hemp from last year into protein powder and other le- issues during the gal hemp products. committee’s July 6 Other hemp operations are also at work across the Commonwealth. Rep. Tom McK- meeting. ee, D-Cynthiana, said a farmer in his district is growing 20 acres of hemp under black plas- tic with drip irrigation. Beeler said most hemp grown that way is used for cannabidiol or CBD, a lucrative hemp compound believed to have medicinal benefits. Kentucky passed a law in 2014 that excludes CBD oil from the definition of marijuana—which is illegal in Kentucky—for certain epileptic patients. And CBD oil is only one product in today’s hemp market. How large the hemp market is, D-Scottsville, said marketing hemp likely isn’t Beeler said, remains to be seen. years?” he later added. all that different from marketing tobacco. A con- “How big is the market? We don’t know For now, hemp production in Kentucky re- tract, price sheet and delivery is key to the pro- that,” Beeler said, telling the committee he mains state-sanctioned. Those who grow hemp cess, he explained. hopes hemp production can eventually replace here must have the government’s permission to “This thing about tobacco is you know if lost tobacco income. “We went from 33 acres (of do so, and every crop must be able to be located you’ve got a contract, you had a price sheet that industrial hemp initially)… to somewhere in the by GPS and be tested. Beeler said those require- went along with that contract. And if you grow neighborhood of 4,000 to 5,000 this year, and ments are absolutes. what that price sheet says you can sell it for that I don’t think anybody much is raising this stuff “And then, maybe from that point on, we amount of money. So I think we need to get to who doesn’t have a contract or place to get rid can get out of the way and let it be a crop,” he a place, and hopefully we will soon, where the of it.” said. hemp folks understand that same thing,” said “Who knows where we might be in 20 Committee Co-Chair Rep. Wilson Stone, Stone.

Child ID, Rep. David Osborne, from page 1 R-Prospect, at left, talks to Rep. he said. “It feels like we missed a real big Ken Upchurch, opportunity … by not passing it.” R-Monticello, before Senate Majority Caucus Chair Dan “Malano” Seum, R-Fairdale, asked if the Social the June 28 meeting Security numbering scheme was based, in part, of the Interim on the year that it was issued. Joint Committee Eric J. Ellman, of the credit bureau on Banking and trade organization Consumer Data Industry Insurance. Association, testified that the number was no longer related to the year it was issued. He said that change was “unfortunate.” He said credit bureaus use to use that additional information to detect fraud. Committee Co-chair Jeff Greer, D-Brandenburg, said that the proposed legislation is something legislators need to move when the next session starts on Jan. 3. “I think we can all agree upon that,” he said.

2 2016 Interim LEGISLATIVE RECORD Panel discusses new drug enforcement tactic by Jim Hannah LRC Public Information FRANKFORT – The newly appointed state police commissioner wants to combat drug addiction across Kentucky by replicating a drug treatment program at work in Massachusetts. Kentucky State Police Commissioner Richard W. Sanders said the innovative program – which allows addicts to surrender their drugs to police and seek treatment through detox and rehabilitation – would be beneficial after being asked about the ongoing opioid crisis by Sen. Julian M. Carroll, D-Frankfort, during the July 14 meeting of the Interim Joint Committee on Veterans, Military Affairs and Public Protection. The ANGEL Sanders, who Initiative of retired from the Drug Enforcement Massachusetts Administration and has sent 400 moved back to his native Kentucky in people into 2007, acknowledged treatment for his answer to Carroll’s question was probably drug addiction going to “shock” some since being people. Senate Minority Whip Julian Carroll, D-Frankfort, comments on Kentucky’s drug efforts during the July 14 “I have spent most meeting of the Interim Joint Committee on Veterans, Military Affairs and Public Protection. launched in the of my life working to spring of 2015. make drug cases against cartels,” Sanders said. actually be placed in detox and then placed in a supply officers with naloxone, a drug used to “I spent a lot of time treatment facility to get help.’” counter the effects of an overdose on opioids in Central and South The Massachusetts program assigns a such as heroin or morphine. America focusing on the Columbian and volunteer – or “angel” – to guide participants In the first three months of that program, Mexican cartels. In Chicago we worked on the into detox facilities. No one is turned away Sanders said Jeffersontown officers saved five Mexican cartels. But I’ve learned over the years under the principle that communities can’t arrest lives in that small community. that … we also have to recognize people who are their way out of the drug problem. Sanders said he has been asked if the addicted to drugs are sick.” “I’m trying to come up with a plan right ANGEL Initiative and naloxone use by police is Called the ANGEL Initiative, the now where I can do something similar to the enabling addicts. Massachusetts program has made national ANGEL Initiative statewide,” Sanders said. “We “I think it is our job to save lives, and that headlines and been lauded by President Barack have 16 posts throughout this state. I would love comes in many different packages,” he said. “I Obama as an alternative to incarceration. Since to educate those people working at the posts on don’t want anybody here to think I have gone being launched in the spring of 2015, Sanders how to get people help that need help. soft on enforcement. If we can help people said ANGEL has sent 400 people into treatment “The other thing is we have to change the before they ever get into the criminal justice for their addiction. He added that property crime mentality. Most people are afraid to come to the system, we are all better off.” has done down 30 percent during the same police. That is going to take a little bit of work. Rep. Myron Dossett, R-Pembroke, praised period in the town that spearheaded the effort. I also have to encourage my colleagues in law Sanders. “They have continued to focus on the enforcement that this is the right thing to do. “I want to offer my support to both you and supplier and punish those people severely, but “We need to help people and stop them from our state police officers,” Dossett said. they are also recognizing those addicted as getting into the (criminal justice) system,” he Rep. Will Coursey, D-Symsonia, people that need our help,” Sanders said. “What said. said Sanders’ appointment as state police the ANGEL Initiative does is it opens the front Sanders has already helped replicate the commissioner was “divine intervention.” door of the police department to addicts. It ANGEL program in Jeffersontown, a suburb “I don’t know that you heading this says, ‘We are here to help. Come and turn in of Louisville, where he served as chief for nine department could come at a better time,” Coursey your drugs. You won’t be prosecuted. You will years. He was also the first chief in the area to said. “We sincerely appreciate it.”

THE KENTUCKY GENERAL ASSEMBLY 3 Lawmakers review veto of state Real ID legislation by Jim Hannah Interim Joint Committee LRC Public Information on Appropriations FRANKFORT – After the governor vetoed and Revenue Co- legislation earlier this year that would have created a new Kentucky driver's license to meet Chair Sen. Christian the tougher federal standards of the Real ID McDaniel, R-Latonia, Act, a panel of lawmakers gathered this week to discuss a path forward. comments during the The state will first ask federal officials June 23 Budget Review for an extension to meet the tougher standards, Department of Vehicle Regulation Subcommittee on Commissioner John-Mark Hack said during Transportation meeting. the June 23 meeting of the Budget Review Subcommittee on Transportation. He added that McDaniel is an ex- Kentucky previously received an extension but officio member of the that it expires on Oct. 10. When Committee Co-Chair Rep. Leslie subcommittee. Combs, D-Pikev- ille, asked the likelihood of an- Kentucky other extension being granted, remains one Hack said he was "pretty confi- of 24 states dent." Rep. Dennis operating under Keene, D-Wild- an extension er, asked what would happen Kentuckians will need a passport to board an airplane starting that expires in if the extension wasn't granted. as early as January 2018 should the federal government not October. Hack said in that unlikely circum- grant the state an extension to meet tougher Real ID standards. stance Kentucki- ans would need a passport to board a plane starting as early as January 2018. "I want to take just a moment to thank Sen. Kentucky will request exceptions or work- Keene said that would create a hardship Harris for his work on that bill … because that arounds which allow for meeting the spirit and for many residents because a passport can take was difficult to get through this session," she real intent of the Real ID legislation without the weeks to receive and cost $135 with fees. That's said. "He put a lot of time and effort in getting extensive cost and inconvenience to the state's almost $100 more than a driver's license would this done." citizens," he said, adding Virginia and California have cost under the legislation vetoed by the Hack defended the governor's veto to have also asked for similar workarounds. governor. committee members. Some of the provisions of Real ID Hack Had the governor not vetoed the legislation, "The governor believes the Commonwealth objected to include forcing people with valid known as Senate Bill 245, Kentucky would needs additional time to better understand our Kentucky driver's licenses to make an additional have joined 24 other states that are certified as current position relative to the demands of a trip to their local driver's license office with Real ID compliant – including Indiana, Ohio, fully unfunded federal mandate of REAL ID," verification of their Social Security numbers. West Virginia and Tennessee. Instead, Kentucky Hack said. "There are several very costly provisions remains one of 24 states operating under an "He also believes that this 2005 federal that go beyond the intent of the federal legislation extension that expires in October, including initiative could, in fact, be substantively changed and impose an unnecessary costly burden on the Illinois and Virginia. Missouri is considered to depending on the outcome of our federal states," Hack said. be noncompliant. elections in November,” he added. Combs asked Hack to report back in October Combs said SB 245 was introduced by Hack said Kentucky currently complies on the status of the extension request. She said Sen. Ernie Harris, R-Crestwood, who built a with many of the Real ID requirements and is she wants to know if legislation needs to be bipartisan coalition to get it passed so Kentucky addressing additional requirements. introduced during next year’s regular session to wouldn't find itself in this spot. "There are a number of requirements that help bring Kentucky in compliance.

4 2016 Interim LEGISLATIVE RECORD 2016 General Assembly Senate

Julie Raque Adams (36) Ernie Harris (26) John Schickel (11) 213 S Lyndon Lane PO Box 1073 2147 Natches Trace Louisville, KY 40222 Crestwood, KY 40014 Union, KY 41091 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-744-9264 (Home) 502-241-8307 Wil Schroder (24) Ralph Alvarado (28) Jimmy Higdon (14) 25 Observatory Pointe Dr 3250 McClure Road 344 N Spalding Wilder, KY 41076 Winchester, KY 40391 Lebanon, KY 40033 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 Dan “Malano” Seum (38) Joe Bowen (8) (Home) 270-692-6945 1107 Holly Ave 2031 Fieldcrest Dr Paul Hornback (20) Fairdale, KY 40118 Owensboro, KY 42301 6102 Cropper Rd (LRC) 502-564-8100 (LRC) 502-564-8100 Shelbyville, KY 40065 (Home) 502-749-2859 (Home) 270-685-1859 (LRC) 502-564-8100 Brandon Smith (30) Tom Buford (22) Stan Humphries (1) 124 Craig Street 409 W Maple St 763 Sinking Fork Rd Hazard, KY 41702 Nicholasville, KY 40356 Cadiz, KY 42211 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-436-4526 (LRC FAX) 502-564-2466 (Home) 270-522-0195 (Home FAX) 606-436-4526 (Home) 859-885-0606 Ray S. Jones II (31) Robert Stivers II (25) (Home FAX) 859-885-0606 PO Drawer 3850 207 Main St Jared Carpenter (34) Pikeville, KY 41502 Manchester, KY 40962 PO Box 100 (LRC) 502-564-8100 (LRC) 502-564-8100 Berea, KY 40403 (Work) 606-432-5777 (Home) 606-598-8575 (LRC) 502-564-8100 (Work FAX) 606-432-5154 (Work) 606-598-2322 Danny Carroll (2) Alice Forgy Kerr (12) (Work FAX) 606-598-2357 220 Cimarron Way 3274 Gondola Dr Damon Thayer (17) Paducah, KY 42001 Lexington, KY 40513 105 Spyglass Dr (LRC) 502-564-8100 (LRC) 502-564-8100 Georgetown, KY 40324 (Home) 270-703-8025 (Home) 859-223-3274 (LRC) 502-564-8100 Julian M. Carroll (7) Christian McDaniel (23) Reginald Thomas (13) 702 Capitol Ave PO Box 15231 702 Capitol Ave Annex Room 254 Latonia, KY 41015 Annex Room 229 Frankfort, KY 40601 (LRC) 502-564-8100 Frankfort, KY 40601 (LRC) 502-564-8100 Morgan McGarvey (19) (LRC) 502-564-8100 Perry B. Clark (37) 2250 Winston Ave (LRC FAX) 502-564-0777 5716 New Cut Rd Louisville, KY 40205 Johnny Ray Turner (29) Louisville, KY 40214 (LRC) 502-564-8100 849 Crestwood Dr (LRC) 502-564-8100 (Home) 502-589-2780 Prestonsburg, KY 41653 (Home) 502-366-1247 Gerald A. Neal (33) (LRC) 502-564-8100 C.B. Embry Jr. (6) 462 S 4th St (Home) 606-889-6568 PO Box 1215 Meidinger Twr, Ste. 1250 Robin L. Webb (18) Morgantown, KY 42261 Louisville, KY 40202 404 W Main St (LRC) 502-564-8100 (LRC) 502-564-8100 Grayson, KY 41143 (Home) 270-791-1879 (Home) 502-776-1222 (LRC) 502-564-8100 (Work) 270-526-6237 (Work) 502-584-8500 (Home) 606-474-5380 Carroll Gibson (5) (Work FAX) 502-584-1119 Stephen West (27) PO Box 506 Dennis Parrett (10) 202 Vimont Ln Leitchfield, KY 42755 731 Thomas Rd Paris, KY 40361 (LRC) 502-564-8100 Elizabethtown, KY 42701 (LRC) 502-564-8100 (Home) 270-230-5866 (LRC) 502-564-8100 Whitney Westerfield (3) Chris Girdler (15) (Home) 270-765-4565 700 South Main Street 702 Capitol Ave Dorsey Ridley (4) PO Box 1107 Annex Room 209 4030 Hidden Creek Dr Hopkinsville, KY 42241 Frankfort, KY 40601 Henderson, KY 42420 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Work) 270-885-7671 David P. Givens (9) (Home) 270-826-5402 Mike Wilson (32) PO Box 12 (Work) 270-869-0505 631 Washington Ave Greensburg, KY 42743 (Work FAX) 270-869-0340 Bowling Green, KY 42103 (LRC) 502-564-8100 Albert Robinson (21) (LRC) 502-564-8100 Denise Harper Angel (35) 1249 S Main St Max Wise (16) 2521 Ransdell Ave London, KY 40741 130 High Point Crossing Louisville, KY 40204 (LRC) 502-564-8100 Campbellsville, KY 42718 (LRC) 502-564-8100 (Home) 606-878-6877 (LRC) 502-564-8100 (Home) 502-452-9130 * Members of the Kentucky General Assembly may also be contacted by calling 502-564-8100.

THE KENTUCKY GENERAL ASSEMBLY 5 2016 Kentucky General Assembly

House Rocky Adkins (99) Tim Couch (90) PO Box 710 Jim Gooch Jr. (12) PO Box 688 714 N Broadway B2 Sandy Hook, KY 41171 Hyden, KY 41749 (LRC) 502-564-8100 Providence, KY 42450 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-738-4242 (Home) 606-672-8998 (Home FAX) 606-672-8998 (Home) 270-667-7327 (Work) 606-928-0407 (Work FAX) 270-667-5111 Will Coursey (6) (Work FAX) 606-929-5913 Derrick Graham (57) Lynn Bechler (4) 285 Oak Level Elva Rd Symsonia, KY 42082 702 Capitol Ave 2359 Brown Mines Rd Annex Room 367 Marion, KY 42064 (LRC) 502-564-8100 (Home) 270-851-4433 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-988-4171 Ron Crimm (33) PO Box 43244 (Home) 502-223-1769 Linda Belcher (49) Jeff Greer (27) 4804 Hickory Hollow Lane Louisville, KY 40253 (LRC) 502-564-8100 PO Box 1007 Shepherdsville, KY 40165 Brandenburg, KY 40108 (LRC) 502-564-8100 (Home) 502-245-8905 (Work) 502-400-3838 (LRC) 502-564-8100 (Home) 502-957-2793 (Home) 270-422-5100 Johnny Bell (23) Jim DeCesare (21) PO Box 122 (Home FAX) 270-422-5100 108 N Green St David Hale (74) Glasgow, KY 42141 Rockfield, KY 42274 (LRC) 502-564-8100 1 Hales Ln (LRC) 502-564-8100 Wellington, KY 40387 (Home) 270-590-0110 (Home) 270-792-5779 (Work) 270-792-5779 (LRC) 502-564-8100 (Work) 270-651-7005 (Home) 606-768-3474 Mike Denham (70) Robert Benvenuti III (88) Chris Harris (93) 2384 Abbeywood Rd 306 Old Hill City Rd Maysville, KY 41056 719 Forest Hills Rd Lexington, KY 40515 Forest Hills, KY 41527 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-759-5167 (LRC) 502-564-8100 (Home) 859-421-1464 (Home) 606-237-0055 Bob M. DeWeese (48) Kevin D. Bratcher (29) Richard Heath (2) 10215 Landwood Dr 6206 Glen Hill Rd Louisville, KY 40222 438 Millers Chapel Rd Louisville, KY 40291 Mayfield, KY 42066 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-426-5565 (LRC) 502-564-8100 (Home) 502-231-3311 (Home) 270-705-7539 Jeffery Donohue (37) George Brown Jr. (77) (Work) 270-247-2210 424 E Fourth Street PO Box 509 Fairdale, KY 40118 (Work FAX) 270-247-2304 Lexington, KY 40508 Jeff Hoover (83) (LRC) 502-564-8100 (LRC) 502-564-8100 (Work) 502-439-6175 PO Box 985 (Home) 859-312-7513 Jamestown, KY 42629 Myron Dossett (9) Regina Bunch (82) (LRC) 502-564-8100 179 Mountain St 491 E Nashville St Pembroke, KY 42266 (Home) 270-343-2264 Williamsburg, KY 40769 (Work) 270-343-5588 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-475-9503 Dennis Horlander (40) (Home) 606-549-3439 1806 Farnsley Rd, Ste 6 Tom Burch (30) Jim DuPlessis (25) 102 Utah Ct Shively, KY 40216 4012 Lambert Ave (LRC) 502-564-8100 Louisville, KY 40218 Elizabethtown, KY 42701 (LRC) 502-564-8100 (Home) 502-447-2498 (LRC) 502-564-8100 (Work) 502-447-9000 Daniel Elliott (54) (Home) 502-454-4002 Cluster Howard (91) Denver Butler (38) 16923 Forkland Rd Gravel Switch, KY 40328 476 Kings Ridge PO Box 9041 Jackson, KY 41339 Louisville, KY 40209 (LRC) 502-564-8100 (Home) 859-332-4204 (LRC) 502-564-8100 (LRC) 502-564-8100 Kenny Imes (5) (Work) 502-817-3044 Joseph M. Fischer (68) 126 Dixie Place 4064 US 641 N John Carney (51) Murray, KY 42071 202 Southside Dr. Ft Thomas, KY 41075 (LRC) 502-564-8100 (LRC) 502-564-8100 Campbellsville, KY 42718 Joni L. Jenkins (44) (LRC) 502-564-8100 (Home) 859-781-6965 (Work) 513-794-6442 2010 O’Brien Ct (Home) 270-403-7980 Shively, KY 40216 Larry Clark (46) Kelly Flood (75) 121 Arcadia Park (LRC) 502-564-8100 5913 Whispering Hills Blvd. (Home) 502-447-4324 Louisville, KY 40219 Lexington, KY 40503 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-221-3107 James Kay (56) (Home) 502-968-3546 PO Box 1536 Hubert Collins (97) Versailles, KY 40383 72 Collins Dr (LRC) 502-564-8100 Wittensville, KY 41274 David Floyd (50) 102 Maywood Ave Dennis Keene (67) (LRC) 502-564-8100 1040 Johns Hill Rd (Home) 606-297-3152 Bardstown, KY 40004 (LRC) 502-564-8100 Wilder, KY 41076 (Home) 502-350-0986 (LRC) 502-564-8100 Leslie Combs (94) (Home) 859-441-5894 245 E Cedar Dr Jim Glenn (13) Pikeville, KY 41501 PO Box 21562 (LRC) 502-564-8100 Owensboro, KY 42304 (Home) 606-444-6672 (LRC) 502-564-8100 (Home) 270-686-8760

6 2016 Interim LEGISLATIVE RECORD 2016 Kentucky General Assembly

Thomas Kerr (64) Charles Miller (28) Jody Richards (20) 5415 Old Taylor Mill Road 3608 Gateview Cir 817 Culpeper St Taylor Mill, KY 41015 Louisville, KY 40272 Bowling Green, KY 42103 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-356-1344 (Home) 502-937-7788 (Home) 270-842-6731 (Work) 859-431-2222 Jerry T. Miller (36) Steve Riggs (31) (Work FAX) 859-431-3463 PO Box 36 PO Box 24586 Kim King (55) Eastwood, KY 40018 Louisville, KY 40224 250 Bright Leaf Dr (LRC) 502-564-8100 (LRC) 502-564-8100 Harrodsburg, KY 40330 Terry Mills (24) (LRC FAX) 502-564-6543 (LRC) 502-564-8100 690 McElroy Pk Tom Riner (41) (Home) 859-734-2173 Lebanon, KY 40033 1143 E Broadway Martha Jane King (16) (LRC) 502-564-8100 Louisville, KY 40204 Lake Malone (Home) 270-692-2757 (LRC) 502-564-8100 633 Little Cliff Estates Phil Moffett (32) (Home) 502-584-3639 Lewisburg, KY 42256 812 Brookhill Rd Bart Rowland (53) (LRC) 502-564-8100 Louisville, KY 40223 PO Box 336 (Home) 270-657-2707 (LRC) 502-564-8100 Tompkinsville, KY 42167 (Home FAX) 270-657-2755 Brad Montell (58) (LRC) 502-564-8100 Adam Koenig (69) 543 Main St Steven Rudy (1) No 12 Shelbyville, KY 40065 350 Peppers Mill Drive 170 Harrington Ct (LRC) 502-564-8100 Paducah, KY 42001 Erlanger, KY 41018 ((Work) 502-633-7017 (Home) 270-744-8137 (LRC) 502-564-8100 Tim Moore (26) (LRC) 502-564-8100 (Home) 859-653-5312 417 Bates Rd Sal Santoro (60) Stan Lee (45) Elizabethtown, KY 42701 596 Walterlot Ct PO Box 2090 (LRC) 502-564-8100 Florence, KY 41042 Lexington, KY 40588 (Home) 270-769-5878 (LRC) 502-564-8100 (LRC) 502-564-8100 Rick G. Nelson (87) (Home) 859-371-8840 (Home) 859-252-2202 117 Gumwood Rd (Home FAX) 859-371-4060 (Home FAX) 859-259-2927 Middlesboro, KY 40965 Dean Schamore (10) Brian Linder (61) (LRC) 502-564-8100 120 Ball Park Rd 16 Ridgeview Cir (Home) 606-248-8828 Hardinsburg, KY 40143 Dry Ridge, KY 41035 (Home FAX) 606-248-8828 (LRC) 502-564-8100 (LRC) 502-564-8100 Lewis Nicholls (98) Jonathan Shell (36) Mary Lou Marzian (34) 1205 Main St PO Box 138 2007 Tyler Ln Greenup, KY 41144 Lancaster, KY 40444 Louisville, KY 40205 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-473-6607 John Short (92) (Home) 502-451-5032 David Osborne (59) PO Box 1133 Donna Mayfield (73) PO Box 8 Hindman, KY 41822 2059 Elkin Station Rd Prospect, KY 40059 (LRC) 502-564-8100 Winchester, KY 40391 (LRC) 502-564-8100 (Work) 606-785-9018 (LRC) 502-564-8100 (Home) 502-228-3201 Arnold Simpson (65) (Home) 859-745-5941 (Work) 502-645-2186 112 W 11th St Tom McKee (78) Sannie Overly (72) Covington, KY 41011 1053 Cook Rd 340 Main St (LRC) 502-564-8100 Cynthiana, KY 41031 Paris, KY 40361 (Home) 859-581-6521 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home FAX) 859-261-6582 (LRC FAX) 502-564-0152 (Home) 859-987-9879 (Work) 859-261-6577 (Home) 859-234-5879 Kevin Sinnette (100) David Meade (80) PO Box 1358 PO Box 121 Darryl T. Owens (43) Ashland, KY 41105 Stanford, KY 40484 1018 S 4th St, Ste 100 (LRC) 502-564-8100 (LRC) 502-564-8100 Louisville, KY 40203 (Home) 606-324-5711 Reginald Meeks (42) (LRC) 502-564-8100 (Home FAX) 606-329-1430 PO Box 757 (Home) 502-584-6341 Rita Smart (81) Louisville, KY 40201 Ruth Ann Palumbo (76) 419 W Main St (LRC) 502-564-8100 10 Deepwood Dr Richmond, KY 40475 (Work) 502-741-7464 Lexington, KY 40505 (LRC) 502-564-8100 Michael Meredith (19) (LRC) 502-564-8100 (Home) 859-623-7876 PO Box 292 (Home) 859-299-2597 Diane St. Onge (63) Brownsville, KY 42210 Marie Rader (89) PO Box 17351 (LRC) 502-564-8100 PO Box 323 Lakeside Park, KY 41017 (Work) 270-597-6049 McKee, KY 40447 (LRC) 502-564-8100 Russ A. Meyer (39) (LRC) 502-564-8100 Fitz Steele (84) 106 Lone Oak Drive (Home) 606-287-7303 176 Woodland Ave Nicholasville, KY 40356 (Work) 606-287-3300 Hazard, KY 41701 (LRC) 502-564-8100 (Work FAX) 606-287-3300 (LRC) 502-564-8100 Suzanne Miles (7) Rick Rand (47) (Home) 606-439-0556 PO Box 21592 PO Box 273 (Home FAX) 606-439-0556 Owensboro, KY 42304 Bedford, KY 40006 Jim Stewart III (86) (LRC) 502-564-8100 (LRC) 502-564-8100 545 KY 223 (Home) 502-255-3392 Flat Lick, KY 40935 (Work) 502-255-3286 (LRC) 502-564-8100 (Work FAX) 502-255-9911 (Home) 606-542-5210

THE KENTUCKY GENERAL ASSEMBLY 7 2016 Kentucky LRC Publications General Assembly Price List

Wilson Stone (22) Addia Wuchner (66) Daily Record Pickup: $165 1481 Jefferson School Rd PO Box 911 Scottsville, KY 42164 Burlington, KY 41005 Daily Record Mailed: $165 (plus postage) (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-622-5054 (Work) 859-525-6698 Friday Record Mailed: $38.50 (plus Greg Stumbo (95) Brent Yonts (15) PO Box 1473, 232 Norman Cir postage) 108 Kassidy Dr Greenville, KY 42345 Individual Record Pickup: $2.75 Prestonsburg, KY 41653 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-338-6790 Individual Record Mailed: $2.75 (plus (Home) 606-886-9953 (Work) 270-338-0816 Chuck Tackett (62) (Work FAX) 270-338-1639 postage) 134 Robinson Ln Jill York (96) Georgetown, KY 40324 PO Box 591 Bills (LRC) 502-564-8100 Grayson, KY 41143 (Home) 502-868-1438 (LRC) 502-564-8100 Complete Set of Bills and Resolutions Jeff Taylor (8) (Work) 606-474-7263 1814 Hopper Ct (Work FAX) 606-474-7638 (Pick-up): $630.00 Hopkinsville, KY 42240 (LRC) 502-564-8100 * Members of the Kentucky General Assembly may also be Individual Bills Per Page: $.05 (Home) 270-886-4543 contacted by calling 502-564-8100. Tommy Thompson (14) Amendments Per Page: $.05 PO Box 458 Roll Call Votes: $.05 Per Page Owensboro, KY 42302 (LRC) 502-564-8100 Publications (Home) 270-926-9736 (Work) 270-926-1740 1-10 copies: Free (plus postage, if (Work FAX) 270-685-3242 James Tipton (53) mailed) 8151 Little Mount Rd Taylorsville, KY 40071 Copies over 10: ($1.00 per copy, plus (LRC) 502-564-8100 Tommy Turner (85) postage if mailed) 175 Clifty Grove Church Somerset, KY 42501 Administrative Regulations (LRC) 502-564-8100 (Home) 606-274-5175 Bound Volumes: $170.00 Administrative Register: $96.00 Ken Upchurch (52) PO Box 969 Volumes and Register: $250.00 Monticello, KY 42633 (LRC) 502-564-8100 Acts of the General Assembly (Home) 606-340-8490 David Watkins (11) (on CD...$10) 1280 Taransay Drive Henderson, KY 42420 Regular Sessions: Priced after printing (LRC) 502-564-8100 (Home) 270-826-0952 Special Sessions: Priced after printing (Home FAX) 270-826-3338 Journals Gerald Watkins (3) 4317 Pines Rd House and Senate Complete Set, House Paducah, KY 42001 (LRC) 502-564-8100 Set, Senate Set: Priced after printing (Home) 270-558-5139 Jim Wayne (35) (All prices subject to 6% Kentucky sales 1280 Royal Ave Louisville, KY 40204 tax, and subject to change) (LRC) 502-564-8100 (Work) 502-451-8262 Russell Webber (49) PO Box 6605 Shepherdsville, KY 40165 (LRC) 502-564-8100 (Home) 502-543-8209 Susan Westrom (79) PO Box 22778 Lexington, KY 40522 (LRC) 502-564-8100 (Work) 859-266-7581

8 2016 Interim LEGISLATIVE RECORD Committee Meetings

barrels. Not every white oak tree has a stave log INTERIM JOINT COMMITTEE because these logs must be large, of very good ON NATURAL RESOURCES AND quality and with no knots in the wood. Only a small percentage of white oak trees at maturity ENVIRONMENT can produce a stave log. Minutes of the 1st Meeting White oak is also used for high quality of the 2016 Interim lumber and veneers, and the demand for white Index June 2, 2016 oak by other industries affects the price of stave Call to Order and Roll Call logs. From 2008 to 2015, the price of stave logs The 1st meeting of the Interim Joint increased and price increases are anticipated A Committee on Natural Resources and into the future as the availability of white oak Administrative Regulation Review Subcommittee, 23 Environment was held on Thursday, June 2, Appropriations and Revenue, 22, 23 decreases in the long term. 2016, at 1:00 PM, in Room 149 of the Capitol To sustain the future of white oak availability, Annex. Senator Jared Carpenter, Chair, called forest management plans are essential to culture C the meeting to order, and the secretary called the Capital Projects and Bond Oversight, 25 high quality trees. However, there must be roll. landowner incentives and technical assistance. E Present were: The management of seedling in research plots Education, 13 Members: Senator Jared Carpenter, Co- and assistance to forest landowners to implement Education Assessment and Accountability Review Chair; Representative Fitz Steele, Co-Chair; stewardship plans are two top priorities. Subcommittee, 27 Senators C.B. Embry Jr., Chris Girdler, Ernie Biological threats need to be addressed to see Energy, 16 Harris, Ray S. Jones II, John Schickel, Johnny tree improvement along with research into Ray Turner, Robin L. Webb, and Whitney tree genetics to make them more resistance to L Westerfield; Representatives Hubert Collins, Tim Labor and Industry, 15 disease and pests. There needs to be a stave log Couch, Jim DuPlessis, Daniel Elliott, Jim Gooch monitoring program at the mills. Right now Licensing and Occupations, 10 Jr., Chris Harris, Cluster Howard, Reginald Local Government, 19 timber reports do not include stave logs. Finally, Meeks, Rick G. Nelson, Lewis Nicholls, Marie there must be a positive environment for the Rader, John Short, Kevin Sinnette, Jim Stewart N logging industry. Natural Resources and Environment, 9 III, Chuck Tackett, and Jill York. In response to inquiry as to how the Guests: Dr. Jeff Stringer, University committee determined that this was an essential S of Kentucky, Department of Forestry, Mr. topic, Senator Carpenter explained that there State Government, 17 Robbie McKenzie, Director Domestic Mills, was considerable discussion of white oak Independent Stave Company, Mr. Justin Nichols, sustainability during the 2016 general session. T Log Procurement, Independent Stave Company, Senator Webb discussed the relationship Transportation, 21 Mr. Bob Bauer, Executive Director, Kentucky between the sustainability of white oak and the Forest Industries Association, and Mr. Jason support of outdoor sports such as hunting. Dr. V Underwood, Buffalo Trace Distillery. Veterans, Military Affairs and Public Protection, 12 Stringer added that forest management practices LRC Staff: Tanya Monsanto, Stefan are compatible with hunting and the white oak Kasacavage, and Marielle Manning. acorns are good food supply for wildlife. Describing Kentucky’s Forestlands and In response to a question by Senator Sustainability of White Oak Westerfield about how white oak are counted, Dr. Dr. Stringer, Department of Forestry, Stringer explained that the Division of Forestry University of Kentucky provided basic and the United States Forest Service (USFS) information on the supplies and sustainability of have physical plots and count 20 percent of the white oak, demographics of Kentucky’s forested trees. The periodic physical counts allow USFS lands, and issues facing the forest products to determine gains and losses in tree types. industry. Roughly 2.5 million acres of Kentucky In response to a question by Senator Schickel lands are forestlands. Kentucky has maintained about the percent of trees that are farmed and stable shares of tree crops including white oak. how long it takes to bring a tree to harvest, Dr. White oak is found in the South Central part of Stringer said that from a seedling to a stave log the United States. Kentucky is one of the leading it takes 60 to 80 years. On low quality land, it producers of white oak which is found in three may take as long as 90 years. The percentage of principal areas: Eastern Kentucky, the Western tree farmed land under forest management plan Coal Fields and South Central Kentucky. There is low. Most Kentucky woodlands are not under is also white oak on federal lands such as Daniel good management. Boone National Forest and the Land between the In response to a question about how to fix Lakes (LBL). The majority of white oak is non- the bottleneck in the availability of stave logs industrial, privately held forestland. when it takes more than 75 years to produce The bourbon industry is the major buyer the right sized tree, Dr. Stringer said that the of white oak. White oak is used to make stave problem can be minimized but not corrected. logs which are used in the production of bourbon THE KENTUCKY GENERAL ASSEMBLY 9 Forest management can speed up the growth of Implications for the Bourbon Industry: trees, which will increase availability of trees A Distiller’s Perspective Guests: Larry Disney, Director, Kentucky more quickly. Jason Underwood, representing Buffalo Real Estate Appraisers Board; C.W. Wilson, In response to a question about how to Trace Distillery, testified that national forests The Wilson Education Group, Shelly Saffron, educate landowners of the need to implement are being treated as parks. Forests are being Director of Administration, Kentucky Real good forest management practices, Dr. Stringer managed via lawsuit and logging now occurs Estate Commission; Misty Edwards, Executive said that the Division of Forestry responds to for purposes other than providing timber such Director, Kentucky Commission on Proprietary specific landowner requests. as clearing sick and damaged trees and creating Education; Mary Kathryn DeLodder, Director, White Oak and The Cooperage Industry wildlife habitats. At the national level, there are Kentucky Home Birth Coalition; Rebecca Mr. Robbie McKensie and Mr. Justin some federal initiatives to add white oak to the Dekker, PhD., APRN, Researcher, Evidence Nichols, Independent Stave Company, described management plan for short leaf pine. At the state Based Birth; Franklin S. Kling, Chairman, Marc the company and one of the leading cooperages level, forest management is limited. Budgets are Guilfoil, Executive Director, Kentucky Horse in the world with locations in Benton, Morehead, constrained and nurseries are needed to keep Racing Commission. and Lexington. The company purchases white white oak stocks strong and resilient. LRC Staff: Tom Hewlett, Jasmine Williams, oak to make stave logs for bourbon barrels. From the distiller’s perspective, the crisis Michel Sanderson, and Susan Cunningham. There is a good supply of stave logs. in obtaining white oak staves occurred three Approval of minutes for November 13, In response to a question about whether a years ago. The company projects that 15 percent 2015 meeting. barrel can be reused after bourbon has been aged growth in demand for stave logs each year. The A motion to approve the minutes of the in it, Mr. Nichols said no. The barrels are sent supply crisis is already in effect and it is driving November 13, 2015 meeting was made by overseas for Scotch whiskey. up prices for stave logs. Representative Charlie Miller and seconded by In response to a question from In response to a question about the percent Representative Burch. The motion carried by Representative Meeks about Independent Stave of Kentucky stave logs going to the bourbon voice vote. indicating there are sufficient supplies and Dr. industry, Mr. Underwood said that Buffalo Kentucky Real Estate Appraisers Stringer stating there are shortages, Dr. Stringer Traces buys logs from Independent Stave. Continuing Education clarified that the shortages will occur in the Kentucky is the second largest supplier of Larry Disney, Executive Director of the medium to long term which is in 20 to 30 years. stave logs, but the company cannot disclose the Kentucky Real Estate Appraisers Board, told In the short to immediate term, there are good percent of purchases in state. Independent also the committee that in July 1990, the General supplies of stave logs. buys from Missouri. Assembly created the Kentucky Real Estate In response to another question about In response to a question about the bourbon Appraisers Board (KREAB). This was necessary whether Tennessee is looking to Kentucky for industry being regulated by the state to only because Congress had passed the Bank Lending stave logs for their expanding bourbon industry, use barrels once and whether the bottleneck Reform Act after the savings and loan collapse Dr. Stringer said that Kentucky is a good supply would be resolved if that were changed, Mr. in the 1980s. The lack of appraiser education and well situated to be a supplier to Tennessee. Underwood said that in Scotland barrels can be was noted as a common denominator throughout In response to a question about technology used many times. In Kentucky, they are used the United States. The federal act is unique in that imparts similar characteristics to bourbon only once, but Buffalo Trace holds to honoring that it recognizes three groups to work together that white oak offers without using white oak the tradition to produce bourbon. The current for appraiser licensing enforcement; state logs, Mr. Nichols said that there are enzymatic formula is working just fine. agencies that enforce programs, a private non- formulas to impart flavors but I cannot speak to Documents distributed during the meeting profit organization that establishes national that technology and its value. are available with meeting materials in the LRC minimum appraisal standards and qualifications, Dr. Stringer said that incentive packages Library. There being no further business, the and a federal agency that monitors both the to help landowners conduct good management meeting was adjourned. state programs and the a private non-profit that is very important. Tax incentives are good approves the education courses. The course inducements, but there appears to be some INTERIM JOINT COMMITTEE ON curriculum for the programs offered must comply problems with this in Kentucky. The state must with the minimum education requirements also keep research and data to help with technical LICENSING AND OCCUPATIONS established by the Appraiser Qualification Board assistance to landowners. Minutes of the 1st Meeting of the Appraisal Foundation in Washington, In response to a question about what barrels of the 2016 Interim D.C. The KREAB continually receives high are used for after usage, Mr. Nichols said that June 10, 2016 achievement recognition for the process used to they are used for Scotch Whiskey. Call to Order and Roll Call approve appraisal education courses, providers, Bob Bauer, Executive Director Kentucky The 1st meeting of the Interim Joint and instructors. Reciprocity has been approved Forest Industries Association discussed various Committee on Licensing and Occupations was and offered to any state in the U.S. that offers aspects of the forest industry. This is a major held on Friday, June 10, 2016, at 10:00 AM, in federally approved courses. Kentucky has been industry for Kentucky with over 30,000 people Room 149 of the Capitol Annex. Representative cited as a model for offering approved courses. employed and it supports other industries that Dennis Keene, Chair, called the meeting to Most providers in Kentucky offer five courses use wood products such as flooring, palates. order, and the secretary called the roll. a year, although some only offer one course. All the related industries are significant revenue Present were: Classes are often 10 or fewer students. Most streams for Kentucky and there should be as Members: Senator John Schickel, Co- providers do not have staff or a fixed location. many staves going into the bourbon industry Chair; Representative Dennis Keene, Co-Chair; In March 2016, KREAB began receiving from Kentucky. At a national level, there is Senators Joe Bowen, Tom Buford, Jimmy notices from education providers that they were discussion of obtaining white oak from national Higdon, Paul Hornback, Christian McDaniel, going to stop offering courses in Kentucky forests like Daniel Boone; however, over the Dan “Malano” Seum, and Damon Thayer; because of added requirements for approval past several years that opportunity has closed. Representatives Tom Burch, Denver Butler, from the Kentucky Commission on Proprietary In response to a question about why the Larry Clark, Daniel Elliott, Dennis Horlander, Education. Providers complained that the cost board feet from federal lands has declined, Mr. Joni L. Jenkins, Adam Koenig, Charles Miller, of initial application and renewal were not Bauer said that ecological groups and short staff Jerry T. Miller, Brad Montell, David Osborne, only expensive, $2,000 to $5,000, but they are to aid in the process of locating trees and conduct Ruth Ann Palumbo, Sal Santoro, Arnold burdensome due to the amount of staff time to the sale has closed that resource. Simpson, Diane St. Onge, and Susan Westrom. prepare documentation that was more applicable

10 2016 Interim LEGISLATIVE RECORD to colleges and universities than the smaller board. However, because of a recent change in institution, or a course or courses of study or education providers. Some providers have said statute, providers are now required to provide instruction sponsored by the Kentucky Board of it would be more cost effective to apply for a catalog of courses offered and a policy for Barbering, the Kentucky Board of Hairdressers course approval in one of the seven surrounding transfer of credits. These providers do not offer and Cosmetologists, the Kentucky Board of states, then offer those courses to Kentucky credits. They provide education or continuing Nursing, the State Board of Embalmers and residents. Because of reciprocity, KREAB will education that is mandated by the KREC or Funeral Directors, or the Kentucky Council recognize and approve the education offered in the KREAB, very specific course content. The of Postsecondary Education. But only those other states. There is no college or university in market controls what a real estate appraiser is specifically mentioned are exempted from the Kentucky that offers a course of study for real paid. provisions of the law. property credential for appraising. In response to a question from Senator The commission licenses 152 schools, most The KREAB has met with the Kentucky McDaniel, Mr. Disney said he would like for of which are small business owners with one to Council on Post-Secondary Education to request KREAB and KREC to be included in the group five staff members, covering a broad spectrum exemption, however, because of existing of boards that is exempted in KRS 165A from the of fields. In 2014, changes to administrative language in KRS 165A no exemption can be criteria the Commission on Propriety Education regulations allowed schools that were already allowed for the education providers for Kentucky requires. Most of the requirements they have accredited to forgo submitting a curriculum appraisers. The KREAB’s mission is to protect been asked to meet are not relevant to the scope catalog. However, schools that are licensed both the public and regulated lenders through of their providers. by the commission must submit a course approved education. There are other existing In response to a question a question from catalog, student transcript records, and other boards that are exempt from requirements the Representative Westrom, Mr. Disney said the documentation with the application for license. Commission on Proprietary Education enforces. cost to prepare the documentation for licensure When a school makes an application, it must The KREAB would ask that, because they are was between $3,000 to $5,000. submit a surety bond at a minimum of $20,000. regulated by federal regulatory oversite, it would Shelly Saffron, Director of Administration If the school employs staff enrolling people in also be recognized as exempt from the Kentucky for the Kentucky Real Estate Commission said the state of Kentucky, the school must have an Commission on Proprietary Education licensing she was present because the commission has agent bond at $5,000. requirements. It is believed that this exemption many of the same concerns as the appraisers’ The overall mission of the commission is to would allow Kentucky to continue the same board. There are currently 13,000 active protect the student and to help small businesses quality, reliable service, competency and licensees; they are required to obtain six in the Commonwealth to be successful. professionalism that has been provided since continuing education hours annually. To obtain Representative Keene said that he sponsored 1990. a license, they must have 96 hours of education the 2012 proprietary education legislation. It In response to a question from in the field. There are 14 pre-license providers was not intended to be so far-reaching and has Representative Keene, Mr. Disney said KREAB and 20 continuing education providers. The resulted in unintended consequences. As a result, is a regulatory body and must comply with the approval process requires providers to submit the legislation will be revisited. federal criteria for appraiser education. a course application, an instructor application, In response to a question from C. W. Wilson, representing The Wilson and payment of required fees. They must submit Representative Jerry Miller, Ms. Edwards said Education Group, said his school has provided evaluations of course completions and the Real that since she has been Executive Director there real estate appraisal continuing education Estate Commission has monitoring rights to all have not been any real estate appraisal schools classes since 1991. The classes are approved by of the providers. go out of business that left students with a large KREAB and meet the requirements listed in the The real estate pre-license providers do not amount of debt. She added that, depending on Minimum Qualifications Criteria of the Appraiser operate like typical colleges and universities. the school’s profit, there is a tier that is relevant Qualification Board of the Appraisal Foundation, The pre-license providers are prohibited, by to what the application fee is. as enforced by the Appraisal Subcommittee of statute, from recruiting. Real estate license In response to a question from Senator the Federal Financial Institution Examination holders have independent contract agreements. Seum, Ms. Edwards said there was a fee increase Council. The proprietary schools are small independent in 2014 and she would get that information to Until two year ago, he received his business business. For these reasons, KREC is asking for him. license through the State Board of Proprietary an exemption. Kentucky Home Birth Coalition Education. However, in 2016, the Kentucky Misty Edwards, Executive Director of the Mary Kathryn DeLodder, volunteer leader Commission on Proprietary Education began Kentucky Commission on Proprietary Education, with the Kentucky Home Birth Coalition, said to require a range of criteria, including copies said the commission was established in 2012, home both was different today than it was 60 of student transcripts and statements of student replacing the Board of Proprietary Education. years ago. There are many reasons people choose accounts that are not applicable to the scope of The commission’s role is to protect consumers home birth. Home birthers are very informed his particular school. This places barriers that are enrolling in a school or taking a course at a about pregnancy and home birth. not relevant and are duplicative of the primary proprietary school. KRS 165A authorizes the There are two types of mid-wives. There are scope and mission of the KREAB. It will also commission to license schools located or doing nurse midwives, licensed in all 50 states, who be difficult to recruit new individuals to teach business in the state, including resident or non- have completed graduate level courses. These continuing education classes because of these resident schools that are charging a fee or tuition. advanced practice registered nurses specialize in new requirements. The commission oversees the Student Protection midwifery. There are 87 practicing in Kentucky. In response to a question from Representative Fund, which is a $500,000 fund to reimburse Only four of these attend home birth, and there Burch, Mr. Wilson said the education being students in the event a school closes. are no physicians who attend home birth. presented was the result of a federal act in 1990 The commission regulates any for-profit, The Kentucky Home Birth Coalition is because of the lack of education in the industry proprietary school. The Kentucky Real Estate asking for licensure of non-nurse midwives who at the time. The duplication of layers of approval Appraisers Board falls into the definition of have completed specific education and training is the issue. Mr. Disney added that there are privately owned for-profit school: a school that to be nationally credentialed as what is known no intervening groups regarding the KREAB is privately owned, offering or administering as a Certified Professional Midwife (CPM). The and the Kentucky Real Estate Commission that a plan, course, or program of instruction in program is accredited with competency based make decisions regarding the level of continuing business, trade, technical, industrial, or related clinical requirements from the North American education. Most providers are small providers areas for which a fee or tuition is charged. Register of Midwives. Currently home birth is for both the commission and the appraisers’ KRS 165A exempts a school or educational an underground market in Kentucky. You have THE KENTUCKY GENERAL ASSEMBLY 11 to know someone who can put you in contact from being issued. Since 1975, a permit has been Representative Jenkins, Mr. Guilfoil said there with a home birth midwife. There is no way to required, but no agency has issued the required are two women on the racing commission but verify if the person is trained in home birth. permit. no minorities. Regarding expanded gaming, that A CPM provides care from the beginning Kentucky Horse Racing Commission would be a decision that the commission on the of pregnancy through the post-partum period. Marc Guilfoil, Executive Director of the whole would have to take a position on. Appointments last about an hour and can be Kentucky Horse Racing Commission, said he Representative St. Onge stated that either at the home or in the office of the CPM. has been with the commission 28 years and has she would like to welcome Mr. Kling as The standard for home birth is two trained been accredited as a racing steward throughout commissioner. individuals. The midwife brings supplies of that period. Since becoming the executive Senator Thayer commented that he everything needed for the birthing process. After director, he has addressed the Jockey Mount did not believe it was appropriate for the the birth the midwife performs routine checks Fee and successfully increased the losing mount commission as a regulatory body to make policy of mom and the baby. The midwife will return fee. Recently, a lawsuit was brought against recommendations on expanded gaming. to evaluate the mom in 24 hours, 48 hours, one Kentucky regarding claiming races that went to There being no further business, the meeting week, two weeks and then finally at six weeks. the Supreme Court, where the state prevailed. was adjourned at 11:31 AM. The coalition has support from the However, he has advised horseman to consider Kentucky Chapter of the American College of changing rules regarding claims and losing INTERIM JOINT COMMITTEE ON Nurse Midwives. The coalition has met with horses to other states. The staff has recently The American Congress of Obstetricians and been reassigned and new people are coming VETERANS, MILITARY AFFAIRS, Gynecologists to discuss similar legislation that to enhance the ability to work toward safer AND PUBLIC PROTECTION will soon become effective in Maine. There racetracks. Minutes of the 1st Meeting are plans to meet with the Kentucky Hospital Franklin S. Kling, Chairman of the of the 2016 Interim Association to discuss their concerns. The Kentucky Horse Racing Commission, told the June 9, 2016 coalition has yet to meet with the Kentucky committee that this was his third appointment Call to Order and Roll Call Medical Association. to the commission. The Governor has appointed The 1st meeting of the Interim Joint In response to a question from Senator all the members of the new commission. There Committee on Veterans, Military Affairs, and Schickel, Ms. DeLodder said there is nothing to are also nine committees that will soon have all Public Protection was held on Thursday, June 9, require parents to have a licensed midwife in the appointments filled. 2016, at 1:00 PM, in Room 154 of the Capitol home at the time of the birth. Rebecca Dekker, In response to a question from Representative Annex. Senator Albert Robinson, Chair, called Ph.D., APRN, Researcher, added that there are Keene, Mr. Kling said in general there are two the meeting to order, and the secretary called the accidental births at home so putting restrictions priority areas, safety of the horse and jockey, and roll. on who could be there would be difficult. to add value to the industry. The second is very Present were: Senator Schickel commented that now challenging because the state is not on a level Members: Senator Albert Robinson, Co- was the time for all interested parties to have a playing field. There are 38 entities Kentucky is Chair; Representative Will Coursey, Co-Chair; discussion rather than wait until the session to competing against. However, the commission Senators Julian M. Carroll, C.B. Embry Jr., ask for changes. looks forward to working on improving what the Carroll Gibson, Ernie Harris, Gerald A. Neal, Senator Thayer commented that he state has now. Dennis Parrett, Whitney Westerfield, Mike agreed with Senator Schickel and asked that Senator Thayer said he wanted to endorse Wilson, and Max Wise; Representatives Linda the coalition not become discouraged. He and the appointments that Governor Bevin had made. Belcher, Tom Burch, Larry Clark, Leslie Combs, Senator Alvarado have discussed this topic, and Representative Palumbo thanked Marc Tim Couch, Ron Crimm, David Hale, Kenny Senator Alvarado is going to sponsor legislation Guilfoil for the outstanding job he has done and Imes, James Kay, Martha Jane King, Donna during the next session. his dedication to the horse industry in Kentucky. Mayfield, David Meade, Terry Mills, Tim In response to a question from Representative Osborne stated that he Moore, Rick G. Nelson, Tom Riner, Rita Smart, Representative Westrom, Ms. DeLodder said the believed this commission was the most qualified Jeff Taylor, and Russell Webber. PKU test is done and there is ultra sound access Kentucky has had. Guests: General (Ret.) Norman Arflack, through local hospitals. In response to a question from Commissioner, Department of Veterans Affairs; Senator Buford commented that next Representative Burch, Mr. Guilfoil said the Sherry Whitehouse, Lady Vets Connect; and session would be the fourth time that this bill commission is awaiting results of a study Phyllis Abbot, Sheppard’s Hands. would come before the session. He added that regarding the use of Lasix 24 hours before a race. LRC Staff: Erica Warren, Jonathan Philpot, midwifery is not illegal in Kentucky, but the Lasix issues are the biggest issues that need to be Lesley Nash, and Rhonda Schierer. coalition is trying to become licensed to do the settled. This medication issue is very divisive. Department of Veterans Affairs: right thing. This commission is dedicated to a resolution. He Introduction and Vision In response to Representative Burch, Ms. explained that the Breeders Incentive Fund is an General (Ret.) Norman Arflack, DeLodder said the state test, PKU, is done by a awards program that gives a bonus to Kentucky- Commissioner, gave a brief introduction and heel prick. The midwife came back the day after bred race winners. discussed the vision of the Kentucky Department the birth of her daughter, pricked her daughter’s In response to a question from of Veterans Affairs (KDVA). General Arflack heel, blotted it on a card and mailed the card to Representative Clark, Mr. Guilfoil said that even was appointed as Commissioner of KDVA a lab in Frankfort. Local audiologists provide though HB 102, regarding the excise tax for the in April. He stated that he is fortunate to hearing screenings for the home birth babies. development fund and the splits for Red Mile keep Heather French Henry on staff as the In response to a question from Senator and Keeneland, did not pass in the last session, Deputy Commissioner as she brings a wealth McDaniel, Ms. DeLodder said nurse midwives it is the opinion of the Revenue Cabinet that of knowledge to the department. He gave a provide services in hospitals. The coalition the commission can implement the intent of the brief update on how things are going with the would like a license for those who are trained legislation. veteran’s nursing homes and cemeteries since in home birth. The coalition is using the North In response to a question from Representative his appointment. The nursing homes are all American Registry of Midwives for credentialing Westrom, Mr. Guilfoil said the administration of doing well and have set the standard across the of certified midwives. Kentucky law requires a Lasix on race day is limited to four hours before nation for the right way to do business. Radcliff state permit to practice. In 1975, administrative the race. That is supported by studies. is close to coming online; the construction date regulations were changed to prohibit permits In response to a question from has been moved from June to July 11, 2016. The

12 2016 Interim LEGISLATIVE RECORD veteran’s cemeteries are much to be proud, and bridging relationships with the VA and other of Career and Technical Education, Kentucky the construction of the south east cemetery will resources, and women veterans struggle to be Department of Education; Leslie Slaughter, start soon. seen as veterans. Policy Advisor, Office of Career and Technical In response to a question from Representative Upcoming events for Lady Veterans Hands Education, Kentucky Department of Education; King, General Arflack stated that KDVA is for Hope are: and Melissa Aguilar, Executive Director, continuing to work on behavioral health issues July 10th – Speaking at VFW State Kentucky Workforce Innovation Board. among soldiers and look at ways to cut down the Convention Louisville LRC Staff: Jo Carole Ellis, Janet Stevens, number of suicides and serious tragedies that are June 17th – Speaking at American Legion Avery Young, and Maurya Allen. occurring as soldiers return home. He added that Conference Representative Rick Rand welcomed there is an emphasis on helping those with PTSD June 23rd – Rally Pont Veteran Resource members of the committee to his district and and other conditions by making them aware of Fair, Louisville spoke briefly regarding the funding for iLead all the organizations that are available to them June 25th – Meet & Greet Louisville Academy that had been approved in the biennium for help and support. July 1st – Ribbon Cutting Thurman-Abbott budget. He also informed members that a new Lady Vets Connect & Sheppard’s Hands: Home for Lady Veterans campus for Jefferson Community and Technical Addressing Homelessness among Female July 9th – Kentucky Speed Way NASCAR College was being built in the area and invited Veterans Veterans Fair members to observe its progress. Sherry Whitehouse, Founder of Lady September – TBA – KDVA Women’s Presentation: iLead Academy Vets Connect and Phyllis Abbot, Founder Veterans Conference, Hazard Leon Mooneyhan, Chief Executive Officer, of Sheppard’s Hands, gave a PowerPoint A copy of the PowerPoint and other meeting Ohio Valley Education Cooperative, welcomed presentation on Lady Veterans Hands for materials are a part of this official record in the members to the iLead Academy and introduced Hope. Ms. Whitehouse discussed the merger Legislative Research Commission Library. Alicia J. Sells, Director of Innovation, Ohio between Sheppard’s Hands and Lady Vets Other Business Valley Educational Cooperative. Ms. Sells spoke Connect. Originally operating as two non-profit Senator Embry thanked Ms. Whitehouse briefly on the cooperation among the five school organizations, they joined forces to become Lady and Ms. Abbot for their assistance and dedication districts which send students to iLead Academy; Veterans Hands for Hope. The new organization on SB 128 and invited them to the ceremonial Henry County, Carroll County, Gallatin County, streamlined the work of both entities into one signing of SB 128 and SB 217 in the Governor’s Trimble County, and Owen County. She gave to provide high quality, comprehensive services office on June 21st at 3:45 PM. an overview of the curriculum used at iLead, to transitioning women veterans. The planned There being no further business, the meeting Project Lead the Way, which is an expensive merger completion date is July 1, 2016. was adjourned. program and requires teachers to receive special Ms. Abbot stated that Jim Thurman, a instruction in order to teach it to the students at member of NABVETS, donated the first home INTERIM JOINT COMMITTEE ON iLead. It was only through sharing resources that for lady veterans to Sheppard’s Hand. The these schools could access the curriculum and dedication and ribbon cutting for the home is EDUCATION build this model of education. The students here scheduled for July 1, 2016, at 10:00 AM, 980 Minutes of the 1st Meeting are intensely motivated to go into a specific career De Porres Avenue, Lexington, Kentucky. Mayor of the 2016 Interim pathway and everything at iLead is workforce Gray and KDVA Deputy Commissioner, Heather June 13, 2016 development training. The students enter as high French Henry, will be present. The home will Call to Order and Roll Call school freshmen and when they graduate they house three homeless women veterans for a year. The 1st meeting of the Interim Joint are prepared to enter a high skilled, high paying During that year, the goal is to empower these Committee on Education was held on Monday, job or go on to career and technical school. three women and their children with health care, June 13, 2016, at 1:00 PM, at the iLead Academy Another unique aspect of iLead Academy is counseling, and job training skills. in Carrollton, Kentucky. Representative Derrick that all instruction is self-paced and instructors There is a great need to continue the Graham, Chair, called the meeting to order, and serve more as mentors than teachers. The mission of serving women veterans. To do so, the secretary called the roll. material is all provided to students online Lady Veterans Hands for Hope needs support Present were: and they participate in group projects at the and funding (grants, donations, temporary or Members: Senator Mike Wilson, Co- Academy. Students take benchmarking tests permanent properties available), visibility, Chair; Representative Derrick Graham, Co- upon completion of their online coursework to participation at events, and creating more Chair; Senators Danny Carroll, Alice Forgy certify proficiency. Additionally, they will enroll legislation pertaining to women veterans. Kerr, Reginald Thomas, and Max Wise; at the new Jefferson Community and Technical Ms. Whitehouse discussed why a Veteran Representatives Linda Belcher, George Brown School in their junior year so they will graduate Resources United Lexington (VRUL) is needed. Jr., John Carney, Jim DeCesare, Jeffery with a high school diploma and an associate’s Veterans have distrust and fear, and the solution Donohue, David Hale, James Kay, Tom Riner, degree. Many field trips also make up the is communication and connections through the Sal Santoro, Rita Smart, Jim Stewart III, Wilson curriculum and allow students to visit colleges VRUL to the 19 Lexington and surrounding area Stone, Addia Wuchner, and Jill York; and interim as well as job opportunities throughout the state. Veteran Service Organizations (VSOs). Creating guest member Representative Arnold Simpson. Ms. Sells also noted that it was the combined the VRUL helps increase visibility to the VSOs, Guests: Representative Rick Rand; Leon monetary support of each district, contributing VA, and Lexington Fayette County Government Mooneyhan, Chief Executive Officer, Ohio $75,000 each, and a $250,000 planning grant, (LFUCG). The VRUL would increase numbers Valley Educational Cooperative; Alicia J. Sells, which made it possible to furnish the building served by VSOs and the VA, leverage resources, Director of Innovation, Ohio Valley Educational and curriculum for this pilot class. identify gaps, and avoid duplications of services. Cooperative; Tim Abrams, Superintendent, Tim Abrams, Superintendent, Henry On any given night, nearly 5,000 women Henry County; Rob Stafford, Superintendent, County, spoke briefly about how the project came veterans are homeless. Owen County; Larrissa McKinney, instructor, out of the districts’ desire to provide another Ms. Whitehouse discussed why a iLead Academy; Oscar Garcia, student, iLead educational opportunity for their students who transitional home is needed. Forty percent of Academy; Ethan Searcy, student, iLead are not well served in a traditional classroom women veterans have reported sexual trauma, Academy; Grace Chilton, student, iLead environment. Rob Stafford, Superintendent, one out of ten homeless veterans are now Academy; Michaela Strethen, student, iLead Owen County, added that it was not an “elitist” women, other shelters serving homeless veterans Academy; Lori Porter, student, iLead Academy; model as students at iLead are reflective of are not equipped for children, there is a need for Laura Arnold, Associate Commissioner, Office a wide range of GPAs. They apply and are THE KENTUCKY GENERAL ASSEMBLY 13 accepted based on their ability to self-motivate these students engaged with the social networks beginning of the year they expect to have a few and work collaboratively as well as an interest in of their home districts, including bussing them students choose to return to traditional school the engineering and informatics career pathways. back for pep rallies if they desire to participate. because they desire the structure. A couple of He spoke highly of the pioneer class and their Senator Carroll asked about the nature of students may also be lost over the year because courage to go into an untried program. the partnership between iLead Academy and of poor academic performance or disciplinary Chairman Graham asked what specific the local business community. Ms. Sells stated issues. Mr. Abrams stated that they have process was used to determine which students that Carroll County has several structured narrowed the focus to students interested solely would be accepted. Ms. Sells answered that in organizations of their business community which in engineering pathways. But, in the future the first year, superintendents met in assembly brings together many of their manufacturing they would like to expand to accept students with their middle school students and informed entities, and she has ties to business communities in medical and biomedical pathways because them about the opportunity. Interested students in Louisville. These organizations have provided there are many students who would prefer that then applied through their local school districts job shadowing opportunities as well as providing pathway. with a plan to accept six students from each insight into the skill sets required for specific Chairman Graham closed by asking how district. After initial applications, however, the industry jobs. the various boards of education of the five decision was made to accept nine students from Senator Wilson commented that iLead districts reacted to the iLead Academy program. each district for a total class size of 45. This Academy presented an exciting opportunity, Mr. Stafford stated that he received a lot of represented almost every student who applied. and he hoped it would become a model for other support from his board of education in thinking Those whose math scores were very low were areas in the state. Chairman Graham agreed and differently about education. Mr. Abrams echoed the only ones turned away, as that would stated that this was an excellent example of a that and said that the students and parents have indicate a challenge in an engineering academy. community coming together and designing a way been vocal and supportive which has bolstered This year, following the application essays, the to address local needs for jobs and education. his board of education. Ms. Sells said that the school instructors, Ms. Larrissa McKinney and Representative Carney asked if there was a iLead Academy was formed through an interlocal Ms. Jenna Gray, were asked to interview the minimum number of school districts that would agreement approved by all five districts, the families as well because it is a very different be needed to construct an academy such as this. Commissioner of Education, and the Attorney and challenging learning environment, which Mr. Abrams answered that depending on the size General which established it as a legal entity. includes a great deal of work at home. of the districts, it could be possible with two Mr. Mooneyhan shared that the boards are the Chairman Graham followed up asking districts, but three would be better. Ms. Sells governing body, but that they contracted with if laptops or tablets were issued to students to added that the concentration of businesses would Ohio Valley Educational Cooperative to run the facilitate their study. Mr. Abrams answered that also be a factor. Following up, Representative facility. all students have a laptop and if a family does Carney asked about the job shadowing and Following questions, Ms. McKinney and not have internet access, as many rural families internship opportunities provided to students. several students came forward to speak about in the area do not, they are also issued a MiFi Ms. Sells indicated that they hope to adopt the their projects and what they felt was valuable card to provide access at home. TRACK program to provide apprenticeships for about iLead Academy to them personally. Representative Smart asked how student students in their last semester before graduation. Oscar Garcia, Ethan Searcy, and Grace Chilton success was measured at iLead Academy versus Representative Carney closed by commenting all spoke regarding Exhibition Nights where the testing performed in a traditional school. that this represented, for him, the future of members of the community and prospective Ms. Sells said that they use the same assessment instruction. It has to be personalized, and the students were brought in to visit the facility and that all Kentucky students use. The online students have to have a personal investment see the projects worked on by students. Michaela learning platform used in the Academy allows in their own learning to keep them engaged in Strethen spoke about the Jefferson Community for a pre-test before each course and final course school. and Technical Center and students’ participation exams, as well as the Kentucky end-of-year Senator Kerr asked about the leadership in the programs there. Lori Porter spoke about exams. They additionally take the end-of-year staff at iLead Academy and their credentials. the online instruction portal the students use to assessment from Project Lead the Way, on which Ms. Sells said there is a director, Ms. Larrissa take classes and turn in assignments as well as this cohort of students did exceptionally well. McKinney, and a lead teacher on Project Lead some of the interdisciplinary projects they do at Their performance was so exceptional that it has the Way. A second teacher will be joining iLead Academy to demonstrate their knowledge. prompted administrators from Project Lead the the staff this fall. They are all in the building She also spoke regarding their participation Way to inquire about the environment at iLead every day. Ms. Sells is the project manager at in statewide competitions such as the Student Academy and how these students performed so Ohio Valley Educational Cooperative. All the Technology Leadership Program (STLP). well in order to use it to assist other Project Lead teachers are fully certified through the state of Senator Thomas asked if the move away the Way schools. Ms. Sells attributed it to the Kentucky. Senator Kerr closed asking if there from rigid grades to self-paced curriculum students’ hands-on learning opportunities. were any barriers that the legislators could was a viable model for traditional schools. Ms. Regarding the SEEK money for each address to help the Academy. Ms. Sells said that McKinney answered that it is a challenge not just student, Representative Stone asked if it remains a lot of what has been put in place legislatively to keep students on track, but to keep them from in the student’s local district or if it is pooled over the last few years has made this possible. going too fast. Some highly motivated students as well. Ms. Sells answered it remained in the Going forward, their primary need is going to be are too caught up in completing courses quickly district. Representative Stone followed up with monetary resources. and do not go into the material deeply enough. a question regarding transportation of students Representative Wuchner commented that It takes a balance and could be a struggle for a to the Academy. Mr. Abrams replied that all five the collaboration among the districts to try teacher in a traditional classroom with students districts already had bus service for students something different was inspiring and perhaps at many different levels on many different tracks. attending the area technology center that now another option from the legislature would be Senator Wilson asked how many students additionally brings these students to iLead. ways to incentivize the business communities’ had enrolled versus how many remained at the Representative Stone concluded asking if these involvement in schools such as iLead Academy. end of the year. Ms. Sells stated that 45 had students still participated in extracurricular Representative York asked about the enrolled, and 39 finished the year. Two had been activities. Mr. Abrams answered that many maximum number of students for the Academy. dismissed for disciplinary issues, two returned of the students participate in extracurricular Ms. Sells commented that space will be tight in to their home districts because they voluntarily sports and other activities, and it has been an the fall to accommodate all the new students. wanted more structure, and two were dismissed intentional effort by the school districts to keep However, based on the previous year, at the at midterm for low academic performance.

14 2016 Interim LEGISLATIVE RECORD Chairman Graham asked about the grant are to create CTE that: 1) is employer- The 1st meeting of the Interim Joint demographics of the school. Ms. McKinney led through regional workforce areas ensuring Committee on Labor and Industry was held on answered that they were fairly evenly split cross-institutional involvement; 2) encompasses Thursday, June 16, 2016, at 10:00 AM, in Room male/female. Roughly 10 percent are on free career pathways that have seamless transitions 131 of the Capitol Annex. Representative Rick or reduced lunch and 10 percent are bilingual from secondary to postsecondary education; 3) G. Nelson, Chair, called the meeting to order, Hispanic. There are currently no students of involves shared resources and funding among and the secretary called the roll. color. Ms. Sells stated that the demographics all partners; and 4) provides valuable industry Present were: are a fairly accurate representation of the five certifications and credentials that are recognized Members: Senator Alice Forgy Kerr, Co- districts which comprise iLead Academy. by business and industry. Grant partners include Chair; Representative Rick G. Nelson, Co- Presentation: Career & Technical the Cabinet for Economic Development, Chair; Senators Perry B. Clark, Carroll Gibson, Education: New Skills for Youth Initiative Kentucky Chamber of Commerce, Council Chris Girdler, Ernie Harris, Wil Schroder, Laura Arnold, Associate Commissioner, on Postsecondary Education, Education and Reginald Thomas, Mike Wilson, and Max Wise; Office of Career and Technical Education, Workforce Development Cabinet, Kentucky Representatives Lynn Bechler, Linda Belcher, Kentucky Department of Education (KDE) Center for Education and Workforce Statistics Regina Bunch, Larry Clark, Will Coursey, came forward and gave a brief introduction (KCEWS), Kentucky Community and Technical Jeffery Donohue, Jim DuPlessis, Dennis to the New Skills for Youth Initiative. Leslie College System (KCTCS), Kentucky Department Horlander, Adam Koenig, Charles Miller, Jerry Slaughter, Policy Advisor, Office of Career and of Education, and the Kentucky Labor Cabinet. T. Miller, Terry Mills, Tom Riner, John Short, Technical Education, KDE, gave an overview Ms. Arnold emphasized that this project was not Jim Stewart III, and James Tipton. of the enrollment data for career and technical just a KDE project but involved many interested Guests: Commissioner Beth Kuhn, education in Kentucky. There are approximately partners throughout the state. Department of Workforce Investment, and 132,000 students enrolled in grades 9 through Melissa Aguilar, Executive Director, Andy Hightower, Chief of Staff, Education and 12 in career and technical education (CTE) Kentucky Workforce Innovation Board, gave an Workforce Development Cabinet. programs. Students in 165 districts are overview of the state sector data being used to LRC Staff: Carla Montgomery, Adanna impacted by CTE, and of the remaining eight, inform the decision making during the phase one Hydes, Andrew Manno, Sasche Allen, and Jay five are K-8 districts and do not participate in planning process. Kentucky’s top employment Jacobs. exploratory opportunities in middle school sectors are business and technical services, Tour of Workforce Issues levels. Ms. Slaughter then showed the national construction, health care, manufacturing, and Commissioner Beth Kuhn outlined CTE Career Clusters model that forms the basis transportation. Initial findings indicate that the two main goals that the Department of of CTE program development in Kentucky. Kentucky will see the most growth in these five Workforce Investment currently has in regards She concluded by stating that 69.3 percent of sectors with over 280,000 job openings in the to Kentucky’s workforce, which include Kentucky high school students are enrolled in next five years. These are highest in healthcare leveraging partnerships to build the state’s talent a CTE program, and 98 percent of Kentucky’s and business and technical services. Top demand pipeline and building a service delivery system preparatory CTE seniors graduated from high is in high skill/high wage, but jobs representing that represents excellence in customer service school in 2015. low skill/low wage will also be needed and the while reflecting budget realities. A strong Ms. Arnold then spoke about the current CTE programs will need to address these needs partnership between the education system and structure of CTE program distribution and what as well. According to the timeline for phase one, employers in the workforce must be maintained could be changed to facilitate more programs the board will present the study to state-wide to incentivize opportunities for those who may like the iLead Academy. There are 42 locally- organizations seeking validation at all levels have barriers to employment and those who operated career and technical centers and before moving forward. receive public benefits to join the workforce. 53 state-operated centers. Additionally, the Ms. Arnold closed by referencing the phase With the assistance of the Kentucky Center for department receives approximately $17 million two goals to develop a plan to regionalize the Education and Workforce Statistics, Kentucky in Carl D. Perkins grant funds, 85 percent of delivery of CTE based on labor data. Application has a unique supply data system that allows the which is distributed to schools and districts, for the phase two money will be in November transition between benefits coaching to career 5 percent remains for administration, and 10 with a focus on the existing locally-operated and coaching. More demand data is needed, however percent is used toward state leadership training. state-operated CTE centers, and developing a to ensure that the needs of employers is being In December, the Every Student Succeeds Act system of governance that is employer-led and met. The Kentucky Career Center in conjunction was put into effect at the federal level which requires collaboration between districts. Going with the department provides customer service allows time for the assessment and allocation forward, the Office of Career and Technical for businesses and employers as well as for of funding, as well as the accountability system Education will look to the committee for job seekers to offer services such as talent throughout the state. This could be a pathway to guidance and input on what the future of funding recruitment assistance, candidate pre-screening incentivize counties to participate in or create for CTE needs to look like to ensure all students and assessment, access to local job openings, programs such as iLead Academy. Much of the have access to high quality, high wage career and professional resume services. state funding goes to support the 53 state centers pathways. Unemployment Insurance Update and includes a SEEK line item of approximately There being no questions, Chairman During the recession the Unemployment $22 million. Ms. Arnold also showed the Graham announced that the next meeting of the Insurance Trust Fund fell into the negative relationship of Kentucky’s spending on CTE committee would be July 18, 2016, at 1:00 p.m. by almost $1 billion, but as of January 2016 compared to the spending of surrounding states. in Frankfort, Kentucky. Senator Wilson will Kentucky has a positive trust fund balance. It Earlier in 2016, the KDE applied for a New preside as chair. The meeting adjourned at 3:19 has been estimated by the end of 2016 there Skills for Youth (NSFY) Initiative grant using p.m. should be a net positive balance of $240 million. funds from J.P. Morgan Chase grants. This is a On September 30, 2016 the trust fund balance is two-phase grant, and the department has already INTERIM JOINT COMMITTEE ON likely to cause an increase in maximum benefits received funds through phase one totaling from $415 per week to approximately $450 per $100,000. This will go toward a six-month LABOR AND INDUSTRY week, a decrease in employer contributions, and planning and design phase. Then the department Minutes of the 1st Meeting a freeze in the taxable wage base for four years. will apply for phase two monies, which can be of the 2016 Interim The commissioner expressed some legislative up to $2 million yearly for three years to reshape June 16, 2016 priorities for the department during the upcoming CTE in the state. The four large visions for this Call to Order and Roll Call session such as the clarification of the surcharge THE KENTUCKY GENERAL ASSEMBLY 15 period, modernization of the employer payment Kentucky’s talent pipeline. The Dual Credit department is focused on all students, including process, revision of the employer protest period Expansion will create a seamless transition to those with disabilities. She pointed out that under for appeals that is currently out of compliance postsecondary education into the workforce WIOA there will be pre-employment transition with Federal timeliness requirements, revision of by making it possible for high school students services offered to individuals starting at age 14. the unemployment benefits for military spouses, to earn college credit or industry-recognized Representative Horlander made brief and clarification of successorship regulations. certification. Costs of tuition will be capped at remarks about a dual credit program he Worker Adjustment and Retraining 33 percent of KCTCS full tuition, which is about participated in through Bellarmine University in Notification (WARN) $154 per course. 1968. In 1988 Congress passed the WARN Act, In response to Representative DuPlessis, In response to Senator Thomas, which required employers to provide adequate Mr. Hightower stated that the federal government Commissioner Kuhn described demand data as notice, 60 days, to workers to seek other has just announced a pilot program that will anticipated needs of employers. Mr. Hightower employment before losing their jobs in the event allow high school students to utilize Pell Grant followed up by informing members that all of a plant closing or mass layoff. The department funds for dual credit courses. He also said the data collected will be published and updated encourages employers to notify the Kentucky cabinet is willing to have conversations about annually, including supply and demand data, Division of Workforce and Employment the effectiveness of KEES funds and other ways in combination with data from the Kentucky Services as quickly as possible so comprehensive to expand opportunities. Center for Education and Workforce Statistics WARN materials can be distributed and services Addressing Representative Charles Miller, and other partners. referenced to workers and employers. There is a Mr. Hightower said that there are already schools Responding to Senator Gibson, Rapid Response Team in each local workforce in the state that offer dual credit programs, but the Commissioner Kuhn explained that the development area to assist employers with idea behind the dual credit expansion is to offer unemployment insurance trust fund is customized services. The Rapid Response team the opportunity to all students across the state. maintained by a combination of state and federal can provide services such as assisting dislocated Due to fund restrictions in the budget, the first regulations and requirements. Mr. Hightower workers apply for unemployment benefits or year of implementation the dual credit program reiterated that on September 30, 2016 the trust finding financial assistance for job training. will only be offered to high school seniors. A fund balance is likely to trigger a freeze in Workforce Innovation and Opportunity school’s original allotment will be based on the the taxable wage base for the next four years. Act (WIOA) Implementation number of seniors within the school, but Mr. Commissioner Kuhn concluded by restating WIOA was passed in 2014 and has a large Hightower explained that this is not a direct that one issue the department wants to resolve focus on operating comprehensive, technology- scholarship program. The program has been during the upcoming session is the clarification enabled career centers; developing and expanding designed to reimburse schools for successful of the surcharge period and where those funds partnerships to provide seamless assistance; completion of the dual credit courses. are allocated after they are collected. regionalizing planning and administrative/ Responding to a question posed by There being no further business, the meeting management structure when appropriate; Representative Bechler, Commissioner was adjourned at 11:18 a.m. providing greater technical assistance, training, Kuhn said that the department is building and monitoring of local workforce development the requirements for modernization of SPECIAL SUBCOMMITTEE ON areas; and focusing on career coaching and the unemployment insurance system and employer services. Integrated services are employment services. Security and privacy of ENERGY emphasized through WIOA by making it data collected from employees and employers is Minutes of the 1st Meeting mandatory to maintain partnerships between the pertinent, and there is a market scan being done of the 2016 Interim Department of Workforce Investment, which for the best system to do so. June 17, 2016 includes the Office for Vocational Rehabilitation, Representative Clark suggested that the Call to Order and Roll Call the Office for Employment and Training, and employers should furnish equipment for job The 1st meeting of the Special the Office for the Blind, and the local workforce training in an effort to make a better use of Subcommittee on Energy was held on Friday, boards. WIOA also has data requirements called funds. He also mentioned that he had met with June 17, 2016, at 10:00 AM, in Room 131 of the common measures that make it mandatory for Secretary Hal Heiner, Commissioner Stephen Capitol Annex. Senator Jared Carpenter, Chair, all of these offices to report the same type of Pruitt, and Secretary Derrick Ramsey to discuss called the meeting to order, and the secretary data. Some of WIOA’s major milestones include the possibility of KEES money being available called the roll. the establishment of a new Kentucky Workforce for apprenticeship programs. Representative Present were: Innovation Board and the agreements completed Clark said that one barrier our education system Members: Senator Jared Carpenter, amongst the local workforce development has is high school counselors not advocating Co-Chair; Senators Ernie Harris, Dorsey boards. Fiscal agents have been competitively technical training or apprenticeship programs to Ridley, Brandon Smith, and Robin L. Webb; procured for all of the local workforce areas and students. Lastly, he commended Hardin County Representatives Rocky Adkins, Hubert Collins, the contracts are currently being finalized. Once schools for their Work Ethic Certificate program. Tim Couch, Will Coursey, Jim Gooch Jr., Jerry the Federal WIOA regulations are received local Commissioner Kuhn commented, saying career T. Miller, Sannie Overly, Tom Riner, John Short, and regional plans can be established and WIOA oriented guidance counselors is an area of Kevin Sinnette, Fitz Steele, and Jeff Taylor. performance measures can be put in place. interest for the department to study. Guests: Elizabeth Caywood, Internal Newly Funded Initiatives Addressing a concern of Representative Policy Analyst IV, Office of the Commissioner, Andy Hightower gave the members details Nelson’s, Commissioner Kuhn said she would Department for Community Based Services, about the Workforce Investment Fund and the be in favor of discussing altering the number Cabinet for Health and Family Services; Todd Dual Credit Expansion that were made possible of days workers are given notice before a plant Trapp, Branch Manager, Policy Development by legislation passed in the 2016 Regular closing or mass layoff required under the WARN Branch, Division of Family Support, Department Session. The Workforce Investment Fund is a Act. for Community Based Services, Cabinet for $100 million bond pool that will fund qualifying After comments and concerns from Health and Family Services, Roger McCann, projects to invest in Kentucky’s workforce. The Representative Belcher, Mr. Hightower stated Executive Director, Community Action objective of the fund is to require local education that the cabinet intends to advertise the schools Kentucky and Cathy Hinko, Metropolitan institutions to partner with employers to develop taking advantage of the dual credit program in Housing Coalition. training that is in demand amongst employers an effort to increase the number of participating LRC Staff: D. Todd Littlefield, Stefan with the intentions to continue building schools. Commissioner Kuhn affirmed that the Kasacavage, and Susan Spoonamore, Committee

16 2016 Interim LEGISLATIVE RECORD Assistant. Agency. From November 2015 through April carrying forward ten percent. Presentation and Public Hearing on 2016, the weatherization program served 894 In response to Representative Overly, Ms. the Low Income Home Energy Assistance homes. Caywood said that the cabinet would be happy Program (LIHEAP) Block Grant Application Roger McCann, Executive Director, to provide staff with quarterly updates. – FY 17 Community Action Kentucky, Frankfort. Mr. In response to Representative Taylor, Ms. Elizabeth Caywood, Internal Policy Analyst McCann said that CAK represents twenty- Caywood said that the cabinet is reaching out to IV, Office of the Commissioner, Department for three community action agencies across the other states on how to improve the waiting time Community Based Services (DCBS), Cabinet state. Each agency is operated by a board of for funding. There are some bulk fuel vendors for Health and Family Service, Todd Trapp, local elected officials and representatives from who do go out and they can provide a limited Policy Development Branch, Division of the low-income in that area. The intent of the quality assurance measure for the cabinet. Family Support, Department for Community programs is to provide stability to the vulnerable The Proposed Findings of Fact were Based Services, Cabinet for Health and Family families and to help reduce the effects of poverty. adopted, by unanimous voice vote, upon motion Services and Roger McCann, Executive Director, In order to get out of poverty a person needs to by Representative Collins and second by Senator Community Action Kentucky. have a job, so CAK assists in getting them job Ridley. (A copy of the Findings of Fact can be Ms. Caywood gave an overview of the training so they can become self-sufficient. Mr. found in the committee’s meeting folder in the Low Income Home Energy Assistance Program McCann noted that 81,941 households across LRC Library. (LIHEAP) Block Grant Application. She the state received a subsidy benefit for a total of There being no further business, the meeting explained that LIHEAP offers assistance for $11,339 million. He said the crisis component was adjourned. low-income individuals and family a safety net was extended through the end of April because for their heating and cooling costs and energy of surplus funds. The number of households INTERIM JOINT COMMITTEE ON conservation measures. Most of the low-income receiving crisis benefits was 79,216 which totaled households pay the highest proportion of their $23,617 million in benefits. The weatherization STATE GOVERNMENT income for home energy. Community Action program is handled by the Kentucky Housing Minutes of the 1st Meeting Agencies are the designated agencies to distribute Corporation who provides allocations to the of the 2016 Interim the federal funds for LIHEAP. The program is different Community Action agencies. June 22, 2016 100 percent federally funded with no state match Chairman Carpenter agreed that people who Call to Order and Roll Call requirement. It is anticipated for FY 2017, the have to spend a disproportionate share of their The first meeting of the Interim Joint award will be approximately $30 million of income on utilities will forego other necessities Committee on State Government was held on which ninety percent is used for direct benefits such as medications and food. Wednesday, June 22, 2016, at 1:00 PM, in Room to Kentucky citizens. The DCBS contracts with Cathy Hinko, Metropolitan Housing 154 of the Capitol Annex. Representative Brent Community Action of Kentucky, Inc. (CAK) Coalition, which is a research policy analysis Yonts, Chair, called the meeting to order, and the to provide administrative training, monitoring and advocacy organization focused on fair and secretary called the roll. and technical support through subcontracts affordable housing. Ms. Hinko stated that she Present were: with the twenty-three agencies of Kentucky’s spoke to the committee last year with concerns Members: Representative Brent Yonts, Co- Community Action Network. She said that about LIHEAP and the way it was being unfairly Chair; Senators Christian McDaniel, Morgan $25,000 is retained by DCBS for preventative administered for areas like Louisville whose McGarvey, Dorsey Ridley, Albert Robinson, and assistance to provide families with an energy utilities are metered. This year Louisville Damon Thayer; Representatives Kevin Bratcher, payment if the payment will prevent the removal returned $500,000 unspent crisis money. John Carney, Leslie Combs, Joseph Fischer, Jim of a child from the home or assist in returning Last year Louisville returned approximately Gooch, Derrick Graham, Kenny Imes, James a child to their home. Approximately $30,000 $300,000. There are concerns that the returned Kay, Martha Jane King, Lewis Nicholls, Sannie is available to design and initiate leveraging money may violate Title VI of the Civil Rights Overly, Tom Riner, Steven Rudy, Sal Santoro, activities to help increase the resources Act of 1964. In part, she stated that public Rita Smart, Diane St. Onge, Tommy Turner, and available to eligible households to reduce their funds may not be spent in any fashion which Ken Upchurch. residential energy costs for consumption. The encourages, entrenches, subsidizes or results in Guests: Donnie Holland and Bill Novak, Cabinet for Health and Family Services (CHFS) racial (color or national origin) discrimination. Department of Parks; Phillip Brown and Laura plans to transfer exactly fifteen percent of the Ms. Hinko said that the poverty rate in Louisville Brooks, Tourism, Arts and Heritage Cabinet. LIHEAP allocation to the Kentucky Housing for African Americans is thirty percent and the LRC Staff: Judy Fritz, Alisha Miller, Karen Corporation (KHC) for the weatherization poverty rate for white families is eleven percent. Powell, Kevin Devlin, Jennifer Hans, Roberta program. Community Action agencies retain a Ms. Hinko asked that the Special Subcommittee Kiser, and Peggy Sciantarelli. small percentage of their individual allocations on Energy recommend a quarterly report from Kentucky State Parks “Refreshing the to provide budget counseling, assist with energy the cabinet on their progress to achieve parity Finest” Campaign vendors and develop utility plans to promote and their progress on redesigning the program Guest speakers from the Tourism, Arts the self-sufficiency of the household served. so that it is fair. As a final note, she was told that and Heritage Cabinet were Donnie Holland, Ms. Caywood said that ten percent of the award there would not be a cooling program this year. Commissioner, Department of Parks; Phillip that is left is used for combined administrative In regards to the cooling component, Ms. Brown, Chief of Staff and Legislative Liaison, activities and that includes the DCBS and federal Caywood said that there are no funds for this Office of the Secretary; Laura Brooks, Office contract monitoring, CAK, and KHC. year. of the Secretary; and Bill Novak, Director of Todd Trapp explained that LIHEAP serves In response to Rep. Miller’s question about Facilities Management, Department of Parks. households whose incomes are at or below returning unused crisis funds, Mr. McCann said Commissioner Holland thanked the General 130 percent of the federal poverty level. For a the program is operated on reimbursement. Any Assembly for its support and for the additional household of one, the monthly income cannot funds that are unrequested remain in the pot. The $18 million in funding appropriated for exceed $1,287 or for a household of four, the unspent money will be used toward next year’s Kentucky state parks. He said the funding will income cannot exceed $2,633 per month. There funding of the subsidy component. Mr. Trapp be used to improve safety and aesthetics at the are two types of payment assistance benefits, the stated that there is a limit on what can be carried parks, including structural repairs, painting, and subsidy component and the crisis component. forward from one federal fiscal year to another much needed interior and exterior upgrades. The Benefits are available in all of Kentucky’s fiscal year. The money needs to be spent in the work for the Refreshing the Finest campaign will 120 counties through their Community Action given fiscal year because the cabinet is limited to be carried out during 2016 and 2017. Bids must THE KENTUCKY GENERAL ASSEMBLY 17 be sought for most of the park projects. About a Estimated total investment for Carter Caves, to produce a TV commercial promoting golf at year ago an in-depth study of the parks indicated Greenbo Lake, Natural Bridge, and General the parks, but the commercial was eventually that deferred maintenance costs for the parks Butler is $2,820,000. Approximately $1.3 viewed only on social media. He acknowledged was approximately $240 million. In the majority million has been set aside for campground that funds are limited but encouraged the agency of years since 2008, the parks have received only upgrades. to “think outside the box” when meeting the maintenance funding to “keep the doors open” Commissioner Holland said they are challenges facing the parks. He stated, too, that and no funding for deferred maintenance. The trying to restore a favorable image of Kentucky success of the parks does not depend entirely $18 million will be a great help in refurbishing state parks. Events are being held statewide to on state government. It is also important that the parks. Public awareness of the campaign announce the Refreshing the Finest campaign. local communities do their part in promoting the has already resulted in increased visitation The kickoff event was held at Cumberland Falls parks. to the parks, especially at Lake Barkley and on June 2. Other events are planned at Lake Responding to Representative Overly, Cumberland Falls. The national parks are also Barkley on June 28, Carter Caves on July 26, Commissioner Holland said that specific parks in need of funds. Deferred maintenance costs for and Lake Cumberland on August 9. All events have not been targeted for P3s. The Cabinet is the National Park Service has grown to $11.5 are scheduled for 11:30 a.m., local time. He waiting until the administrative regulations are billion and is in the lower billions for the United encouraged members of the committee to attend in place before having discussions with potential States Forest Service. the events and spread the message. partners, but some large companies have shown A lot of business has been lost because of Mr. Brown said that administrative interest. He envisions that RFPs (Request for deteriorating conditions at the parks. The lodges regulations pertaining to the recently enacted Proposal) will be for individual properties at Greenbo Lake and Jenny Wiley are out of public-private partnership (P3) legislation have rather than the entire parks system. The state of service due to fires caused by roof leaks and faulty not been finalized. It is not yet clear what a typical Tennessee issued a $55 million RFP for its park wiring. The lodge at Greenbo also has structural public-private partnership for the parks system system as a whole and received no bids. problems. At Jenny Wiley a new cafeteria has will entail. The P3 legislation extends beyond Representative Overly asked whether there been opened in the conference building while the parks system to other sectors of the Kentucky has been discussion about closing or selling the lodge is closed. The conference center at economy. From the Cabinet’s perspective, P3s any of the parks. Commissioner Holland said Cumberland Falls was condemned and will have should provide greater flexibility to finance park no parks have been targeted for closure at this to be torn down. Replacement will cost $6 million improvements and should facilitate attracting time. Before considering action that severe, the and cannot be done now; in the meantime, other private capital and expertise. The Cabinet will Cabinet would want to evaluate the potential of rooms are being used for meetings, and a private explore the applicability and relevance of public- P3s and try to increase visitation at the parks. building in Corbin is available for large groups. private partnerships and will only enter into a P3 While the parks have never made a profit, Commissioner Holland’s slide presentation if it would improve the parks and be good for the so far as he knows, they do have a positive described individual projects that are underway, Commonwealth and the taxpayers. economic impact on local communities and the scheduled, or in the design stage. Nine projects Representative Combs commended the Commonwealth. Data estimates the economic are expected to be completed in summer 2016 Cabinet for its plans to take advantage of P3s impact to be approximately $889 million per (cost $1.5 million), 34 projects in fall 2016 for the parks system. She said their efforts will year, with $92 million of that going into the state (cost $4.7 million); 54 projects in summer serve as an example to other public entities that treasury. 2017 (cost $10.8 million) and nine projects are considering the P3 approach. Commissioner When Representative Nicholls asked about in fall 2017 (cost $1.0 million). Project costs Holland again thanked the General Assembly for the timeline for repairs and renovation at Greenbo are estimates. A few examples of completed helping to restore the parks system and begin the Lake, Mr. Novak said design is complete for the projects are concrete walk and wall repair P3 process. He also expressed appreciation to Greenbo projects. They are to be bid soon, and at Rough River, replacement of the golf cart the many “friends” volunteer groups throughout he estimates that construction will be finished by fleet at Lake Barkley, and exterior painting of the state. the end of 2016. cottages at Pennyrile Forest and Kenlake. Safety Representative Yonts inquired about Wi-Fi Representative St. Onge said she believes issues are being given priority. Concrete repair capability in the lodges. Commissioner Holland the parks system may be able to make good is underway at Lake Cumberland, and tennis said that boosters have been installed in several use of P3s. She asked Commissioner Holland center exterior painting is underway at Kenlake. parks and that Wi-Fi is being enabled in locations to provide the committee with a one-page map Other projects that are scheduled, in design, or that are able to receive a wireless signal. Some showing all the parks, and he agreed to do so. soon to be bid include repair and reopening of parks—Pennyrile, for example—cannot access Representative Imes commended the swimming pool at Cumberland Falls, truss wireless because they are not within signal Commissioner Holland for doing an outstanding repair at Greenbo, conference center window range. job. He pointed out that Land Between the Lakes replacement at Buckhorn, lodge exterior painting Responding to Representative Smart, (LBL), one of the most visited tourist attractions at Dale Hollow, tennis center siding replacement Commissioner Holland said that work in the in the state, is located near three Kentucky at Lake Barkley, and safety railing repairs at parks is currently being performed by state state parks. He asked whether the Department Cumberland Falls. Buffet line upgrades at employees. For work that is competitively of Parks plans to work with the National Park Natural Bridge are in the procurement stage. bid, the Department intends to use Kentucky Service and the U. S. Forest Service to promote Commissioner Holland said that about $5 contractors whenever possible. reciprocal advertising of Kentucky’s state and million of the $18 million will be used to address In response to Representative Carney, national parks. Commissioner Holland said safety issues, with special attention to electrical Commissioner Holland said that insurance that is a good idea. Already there have been problems. Plans are to spend the $18 million by will pay for the fire damage at Greenbo and meetings with Tina Tilley, Area Supervisor for the fall of 2017, with the bulk of the funds going Jenny Wiley but will not cover the truss repair the LBL National Recreation Area, and a few toward makeovers at the resort parks. Estimated at Greenbo. He said that some upgrades are weeks ago Department of Parks staffer LaDonna total investment at Buckhorn Lake, Cumberland scheduled for Green River Lake and that he Miller and LBL’s marketing manager agreed to Falls, Jenny Wiley, and Pine Mountain is $2.2 would look into the issue of parking lot repairs help each other on web advertising for LBL and million. Estimated total investment at Barren that are needed at the park marina the surrounding state parks. In a meeting with River, Dale Hollow, Lake Cumberland, and Representative Carney said that good ideas four national park managers who are involved Rough River is $4,885,000. Total investment at have been proposed in the past but were not in Kentucky, agreement was reached to trade Kentucky Dam Village, Lake Barkley, Kenlake, followed through. For example, about six years brochures advertising two Civil War historic and Pennyrile Forest is estimated at $3,760,000. ago he worked with three professional golfers sites—Fort Donelson National Battlefield in

18 2016 Interim LEGISLATIVE RECORD Dover, Tennessee, and Perryville Battlefield information. Jared Downs, General Counsel, Duane Curry, State Historic Site in Perryville, Kentucky. Representative Yonts thanked the Director of Codes Enforcement represented the Representative Imes said that public service Commissioner and his staff for their efforts on department. announcements (PSAs) might provide another behalf of the parks and for today’s presentation. In response to a question from Senator opportunity to publicize the Refreshing the He announced that the Committee will not meet Seum, Mr. Curry said the Board of Housing is Finest campaign. He suggested that committee in July. With business concluded, the meeting represented by industry individuals and those chairs, where practicable, schedule some was adjourned at 2:00 p.m. individuals notify their constituents about legislative meetings at state parks. He said he potential changes to the codes. and his wife have committed much of their INTERIM JOINT COMMITTEE ON In response to a question from Senator vacation time this summer to overnight stays at McDaniel, Mr. Curry said the changes will apply state parks. He believes that by visiting the parks LOCAL GOVERNMENT to residential occupancies. The board intended legislators can learn more about the state and be Minutes of the 1st Meeting for all residences to conform to the 2009 Energy in a better position to help constituents. of the 2016 Interim Conservation Code. The board felt that the 2009 Representative Yonts asked whether any June 22, 2016 code was more cost effective while meeting projects are planned for recreational parks— Call to Order and Roll Call minimum energy requirements. The 2009 code specifically, Lake Malone, which is in his district. The first meeting of the Interim Joint allowed for 7 “air changes” per hour versus He said the boat dock there has been closed for Committee on Local Government was held on the three allowed in the 2012 code for certain almost a decade, and the swimming area has no Wednesday, June 22, 2016, at 10:00 AM, in residential occupancies. lifeguards. Commissioner Holland said they had Room 171 of the Capitol Annex. Representative Ms. Laura Owen, legislative agent, Mr. obtained estimates of approximately $200,000 Steve Riggs, Chair, called the meeting to order, Finley Messick, Executive Director, and Ms. to either replace or repair the boat dock, but and the secretary called the roll. Jill Lewis Smith of the Kentucky Ready Mixed funding for the boat dock is not included in Present were: Concrete Association (KRMCA) voiced their the $18 million. However, the Department is Members: Representative Steve Riggs, opposition to the changes proposed to 815 KAR looking at possible roof repair and campground Co-Chair; Senators Ralph Alvarado, Christian 7:120 and 815 KAR 7:125. Mr. Messick said the improvements at Lake Malone. McDaniel, Morgan McGarvey, Albert change would revert the Energy Conservation Representative Yonts requested that the Robinson, Dan “Malano” Seum, and Damon Code from 2012 code standards to 2009 code Department of Parks give future consideration to Thayer; Representatives George Brown Jr., standards. KRMCA felt the changes would a miniature golf course at Lake Malone. He said Mike Denham, Jim DuPlessis, Richard Heath, move Kentucky backwards in energy efficiency. funding for the golf course was included in the Cluster Howard, Adam Koenig, Brian Linder, The changes affect apartments and dormitories state budget two years ago but was vetoed. The Tom McKee, Michael Meredith, Jonathan Shell, and other residential applications in addition to estimated cost was $250,000. At that time, the Arnold Simpson, Chuck Tackett, James Tipton, single-family residences. The changes are for Department of Parks indicated it could be paid and Susan Westrom. monetary reasons and are not in the best interest for from a bond issue, but the course was never Guests: Representative Russell Webber; of the health and welfare of the final consumer been built. Bennie Brown, Shepherdsville City Council; which are renters or owners. The association has Representative Yonts asked whether there Tim Wade, Shepherdsville City Police Officer; been invited by the department for input into are any plans for needed upgrades to the Capitol Tim House, Jared Downs, and Duane Curry, future discussions relating to the building codes. Annex cafeteria. Commissioner Holland said Department of Housing, Buildings and Ms. Smith said that no notice was provided that the Department does not pay rent at the Construction; Dwight Lovan, Department of to the American Institute of Architects in other state-run cafeterias in Frankfort but has Workers’ Claims; J. D. Chaney and Bert May, Kentucky regarding the changes. She was not to pay the Finance and Administration Cabinet Kentucky League of Cities; Shellie Hampton, aware of any other place in the nation where $90,000 annually for rent and utilities for the Kentucky Association of Counties; Kamp anyone is trying to mesh the 2009 residential Annex cafeteria. They will look at “freshening Purdy, Fogle, Keller, Purdy Law; Bob Weiss, code with the 2012 commercial code. Nineteen up” the cafeteria and are also looking at possible Homebuilders Association of Kentucky; Bill states use the 2012 commercial code, and six price increases and better ways to buy food and Kauflolz and Jason Finch, Fischer Homes; Finley states use the 2015 commercial code. Drury manage inventory to prevent food spoilage. Messick, Jill Smith, and Laura Owens, Kentucky Inns is an example of cost-effective buildings Representative Combs said that a key Ready Mixed Concrete Association; Prentice demonstrating energy efficiency. concern during development of the P3 legislation Harvey, State Farm Insurance; Ron Wolf, In response to a question from Representative was that it might be the last available financial Associated General Contractors of Kentucky; Riggs, Ms. Owen said that the benefits to owners tool to fund needs and services of the state parks Judy Piazza, Finance and Administration and occupants from a more stringent code would and enable all 49 parks to remain open. She said Cabinet; and Mike Sunseri, Office of Homeland be savings in energy costs. members of the General Assembly believe the Security. Ms. Smith said that building costs were parks are much needed. Even though the parks LRC Staff: Mark Mitchell, John Ryan, Joe cited as a reason for going back to the earlier may not make a profit their economic impact Pinczewski-Lee, and Cheryl Walters. code. In her experience it did not cost any more is significant to the state and the communities Consideration of Referred Administrative to design a building to the later code. Owners where they are located. Regulations and occupants will always be responsible for Senator Thayer said that five or six years The committee considered referred paying the energy bills. ago, then Governor Beshear by executive order administrative regulations promulgated by In response to a question from Representative moved some money from a state park fund the Department of Housing, Buildings and DuPlessis, Ms. Smith said that it is no more for the purpose of building the new outdoor Construction: 815 KAR 7:120 (Kentucky difficult to meet the air exchange standard in a stadium at the Kentucky Horse Park for the Building Code); 815 KAR 7:125 (Kentucky stick-built house versus a concrete panel house World Equestrian Games. He requested that Residential Code); 815 KAR 8:095 (HVAC: if you use correctly-installed insulation, wraps, Commissioner Holland report back to the vehicle identification); 815 KAR 20:084 or liquid-applied wrap. An insulated concrete Interim Joint Committee on State Government (Plumbing: storage and installation of cross- form home in Louisville was built for $126 a regarding when that occurred, how much linked polyethylene piping); 815 KAR 20:191 square foot, the same as for homes nearby that money was moved, and how it affected the (Plumbing: minimum fixture requirements); and had difficulty meeting the air-tightness test. deferred maintenance plan for the state parks. 815 KAR 20:195 (Plumbing: medical gas piping Representative DuPlessis commented that Commissioner Holland agreed to provide the installations). Tim House, Deputy Director, Mr. he, as a consumer, would like to have the option THE KENTUCKY GENERAL ASSEMBLY 19 to build to a higher energy code standard, rather Representative Riggs explained that Magellan Behavioral Health v. Helms than be required to. workers’ compensation is important to the focused on the return to employment question. Ms. Smith commented that she would committee and to local governments as they are In Central Kentucky v. Wise, “return to prefer one category of codes, rather than picking employers. employment” was interpreted to mean a return and choosing from different code versions. Commissioner Lovan background to the type of work which is customary for an In response to a question from information relating to the entitlement of injured employee or that which the employee Representative Tipton, Mr. Messick said that temporary total disability (TTD) from a legal had been performing prior to injury. Prior to the proposed change applies to multifamily standpoint. There are three kinds of disability those time frames, if an individual was released residences—not single family residences. Ms. as it relates to income benefits: temporary and returned to work, the individual’s TTD status Smith added that if wraps and windows were total disability, permanent total disability, and may have been terminated if that person had not installed correctly, the residences would meet permanent partial disability. KRS 342.0011(11) reached maximum medical improvement. 2012 energy code standards. (a) defines temporary total disability as “the In three subsequent cases: Mull v. Zappos. Representative Linder said that the type condition of an employee who has not reached com., Inc., Nesco Resources v. Arnold, and of air conditioner or heater used has a cost on maximum medical improvement from an injury Delena Tipton v. Trane Commercial Systems, energy consumption in addition to air-tightness. and has not reached a level of improvement that which occurred around 2014, the Court of Representative Linder requested a copy of would permit a return to employment.” Appeals seemingly substantially altered the two standards to be sent to him. “Maximum medical improvement” is the standard for determining an employee’s Representative Meredith commented that generally defined as the date after which further entitlement to total temporary disability benefits. a commercial building built last year under the recovery from or lasting improvement to an The Nesco case in particular seemed to imply 2012 code was twice as expensive as a residence injury or disease can no longer be anticipated, that a person could return to work at a different he is building under the 2009 code. The market based upon reasonable medical probability. capacity and still receive TTD benefits. could contribute in part to the difference. People While improvement is not ruled out, the In Livingood v. Transfreight, the Supreme may not have “up-front” money. individual has reached a plateau in substantial Court declined to hold that a claimant is entitled Mr. Messick said that, while costs of a more improvement. to total temporary disability benefits simply expensive building may be passed on to a renter, Determination of income benefits for because he or she is unable to perform the work that the renter may save energy costs. disability is found in KRS 342.730(1)(a) which performed at the time of the injury. Senator Robinson noted the committee’s reads: “(1) Except as provided in KRS 342.732, The case with the greatest impact was limited jurisdiction over the administrative income benefits for disability shall be paid to the decision in the Supreme Court appeal to regulation. He said that a legislative change may the employee as follows: (a) For temporary or Delena Tipton v. Trane Commercial Systems. be required to effect change. permanent total disability, 66 2/3 percent of The reversal clarified that “customary work” Mr. Bob Weiss, Executive Vice-President the employee’s average weekly wage when the does not mean that one had to do the same job of the Home Builders Association of Kentucky, person sustained the injury.” that one performed before in order to no longer and Mr. Bill Kauflolz, an architect with Fischer W.L. Harper Construction Co., Inc., v. qualify for TTD payments. It clarified that TTD Homes, addressed the committee. Baker was the first case that defined “maximum decisions will be made on a case by case basis Mr. Weiss said that the regulation has gone medical improvement”, and it said: “temporary and includes evaluations of the actual work done through the administrative process. In addition, total disability is payable until the medical when it is different than the employee’s original the code is meant to be a minimum code. Under evidence establishes the recovery process, position. the regulations, one and two family residences including any treatment reasonably rendered in In response to a question from Representative are presently under the 2009 code. The purpose an effort to improve the claimant’s condition, is Riggs, Mr. Purdy said the statistics show that if of the regulation is to bring all residential over, or the underlying condition has stabilized an employee returns to work prior to reaching construction under the same code. such that the claimant is capable of returning to maximum medical improvement, there is a Mr. Kauflolz said that the biggest concern his job, or some other employment, of which better chance of seeing that person succeed in is associated with cost. Condominiums are the is capable, which is available in the local labor the workforce later on. The goal, ultimately, has most affordable product his company produces. market. Moreover, the question presented is on to be to return people to the workforce as early as The differences between the codes are more of fact no matter how temporary total disability possible, medical restrictions notwithstanding. than a blower door test. Meeting the 2012 is defined.” Whatever restrictions there are should be code requirements can impact the engineering This case was decided in 1993. Persons accommodated, but if the employer is willing decisions used to construct the building adding become eligible for TTD when they are off work to and can accommodate, double dipping on the to the total construction cost. for more than seven days. employer’s dime is not productive for anyone. In response to a question from Representative The schedule of maximum and minimum Mr. Chaney said that KLC worked with Koenig, Mr. Kauflolz said that there was a $900 amounts paid for injuries is found in KRS KACo, Kentucky Chamber of Commerce, and difference per home for his company. Switching 342.730(1)(a). For example, the maximum Kentucky Employers Mutual Insurance on 2016 codes may always include new costs. amount paid for temporary and permanent SB 151 that Senator Steve West sponsored, Senator McDaniel commented that disability for January 1-December 31, 2016 was which passed the Senate but did not get a increasing standards will increase costs. $798.63 and the minimum amount paid was hearing in the House because of disagreements Representative Riggs stated that a written $159.72. with labor and trial attorneys on exactly how report of the review will be submitted to LRC. Decided in 2000, Central Kentucky Steel v. the situation should be remedied. But both Workers’ Compensation as it relates to Wise was the first case to modify the W.L. Harper private industry and governmental employers Local Governments as Employers Case. An individual was released to go back to had a big problem with the Court of Appeals Commissioner Dwight Lovan, Department work but at a less strenuous level than before. opinion that Commissioner Lovan highlighted. of Workers’ Claims, Mr. J.D. Chaney, Deputy The court expanded the definition saying that the Employers were having potential situations Executive Director, Kentucky League of Cities person needed to be able to do their customary where the employees were receiving both their (KLC), Ms. Shellie Hampton, Director of work. This decision was based on the question wages for the light duty or modified duty work, Governmental Affairs, Kentucky Association of whether or not being released to some kind and at the same time, receiving TTD benefits. of Counties (KACo), and Mr. Kamp Purdy, of work terminated TTD benefits. It did not deal This did not serve the purpose of the worker’s Attorney with Fogle, Keller, and Purdy Law, with the situation of a person going back to work compensation statutes for wage replacement if PLLC, were invited to address the committee. in a different category of job. employees were getting both their wages for

20 2016 Interim LEGISLATIVE RECORD light duty and total temporary disability benefits INTERIM JOINT COMMITTEE ON time four-wheel drive, independent suspension, at the same time. SB 151, if enacted, would have steep approach and departure angles, 60 percent clarified that if an employee returns to modified TRANSPORTATION slope-climbing, 40 percent side slope and 60- duty, the wages earned would be offset against Minutes of the 2nd Meeting inch water-fording capabilities combine with the total temporary disability benefits. KLC and of the 2016 Interim the high ground clearance makes the HMMWV the other groups will continue the effort to get July 5, 2016 an exceptional off-road vehicle. The vehicles that legislation enacted in the next session of Call to Order and Roll Call are demilitarized prior to the Department of the General Assembly. HCR 185, the worker’s The 2nd meeting of the Interim Joint Defense sale, but DoD sells to the general public compensation task force, will hopefully look at Committee on Transportation was held on by identifying the vehicle as being for off-road this as part of its efforts. Regarding the court Tuesday, July 5, 2016, at 1:00 PM, in Room use only. Commissioner Hack stated that KRS decisions and legislation, there should be a 171 of the Capitol Annex. Senator Ernie Harris, 189.860 states that off-road vehicle means a consistent standard where employers can predict Chair, called the meeting to order, and the motor vehicle capable of cross-country travel, situations where they might fall into a double secretary called the roll. The minutes from the without the benefit of a road or trail. It does not indemnity. June 7, 2016 meeting were approved. include a farm vehicle, a vehicle used for military Ms. Hampton reiterated Mr. Chaney’s Present were: or law enforcement purposes, a vehicle used in remarks on behalf of KACo. Members: Senator Ernie Harris, Co-Chair; construction, mining, or other industrial-related Mr. Purdy noted that there could be a Representative Hubert Collins, Co-Chair; purposes, aircraft, or any other vehicle registered situation where an employee could be drawing Senators Joe Bowen, Jared Carpenter, C.B. under state law. No person shall operate an off- TTD benefits and a salary when on light duty Embry Jr., Jimmy Higdon, Gerald A. Neal, Albert road vehicle on any private or public property and actually make more money than before. This Robinson, Brandon Smith, Johnny Ray Turner, without the consent of the landowner, tenant, is not a palatable situation for an employer. and Whitney Westerfield; Representatives Tim or governmental agency responsible for the Mr. Chaney noted that TTD benefits are Couch, Donna Mayfield, Tom McKee, Russ A. property. Those registered to law enforcement not considered creditable compensation toward Meyer, Charles Miller, Jerry T. Miller, Terry agencies in Kentucky used an official license retirement. Mills, Rick G. Nelson, Marie Rader, Steve Riggs, plate. In response to a question from Representative Sal Santoro, John Short, Arnold Simpson, Diane Commissioner Hack stated that key Meredith, Mr. Chaney replied that the creditable St. Onge, Fitz Steele, Jim Stewart III, Tommy considerations were that military configurations compensation issue could affect a spiking Turner, and Addia Wuchner. Senator Dorsey do not meet federal motor vehicle safety situation as well in consideration of the new Ridley and Representative David Watkins standards. Also, in cases of federal donations spiking laws that have passed recently. attended the meeting via telephone conference. to eligible agencies, such agencies must sign Representative Meredith commented that Guests: John-Mark Hack, Commissioner, a “hold harmless” agreement that includes an employee in one of his counties was told there Department of Vehicle Regulation, KYTC, the following statement: “extra operator was no light duty for her, so she resigned. She Godwin Onodu, Assistant Director, Division competence and caution should be exercised did not receive any disability benefits and was of Motor Vehicle Licensing, KYTC, Heather in the operation and use of this vehicle outside told the reason was because she resigned. Mr. Stout, Executive Director, Office of Information the design specifications because the vehicle Purdy said she should have received disability Technology, KYTC, Jay Grundy, Lebanon City does not comply with federal motor vehicle benefits. Resigning from a job does not impact Council, Stevie Stewart, cousin of Representative safety standards and is designed for use whether or not an employee receives disability Jim Stewart, and Louie Emmons. under conditions unique to the Department of benefits. LRC Staff: John Snyder, Brandon White, Defense. In accepting the transfer/donation, the Representative Riggs commented that when Dana Fugazzi, and Christina Williams. undersigned acknowledges that there may be he hears an employer say there is no light duty Registration of Surplus Military hazards associated with the use of the vehicle.” work, the employer needs more education, not HMMWVs in Secondary Public Market Recipient agencies must provide appropriate the employee. John-Mark Hack, Commissioner, operator training. In response to a question from Senator Department of Vehicle Regulation, KYTC, He added that other considerations were Seum, Commissioner Lovan replied that the Godwin Onodu, Assistant Director, Division that Kentucky certified inspectors do not TTD benefits are not taxed and do not need to of Motor Vehicle Licensing, KYTC, discussed inspect mechanics of a vehicle, instead focusing be claimed. the issue of surplus military high mobility attention on VIN verification and odometer In response to another question from multi-purpose wheeled vehicles (HMMWVs) readings per KRS 186A.115(4). De-militarized Senator Seum, Commissioner Lovan said that that are currently hitting the secondary public HMMWV’s are not being certified by the original the restarting of TTD benefits versus simply market. Commissioner Hack stated that in 2012 manufacturer as road worthy. Surrounding states continuing to pay a person’s salary varies from the federal government approved HMMWVs that do not register HMMWVs for road use company to company when an employee takes to be donated, transferred or sold to local law include Ohio, Indiana, Virginia, Missouri, and time off due to a an injury. enforcement and fire department agencies for West Virginia. The cabinet is awaiting response In response to a question from use in emergencies. KRS 186.060 permits from Illinois. Tennessee allows registration and Representative Riggs, Mr. Chaney said that registration of such vehicles for governmental titling on condition of issuing a Tennessee VIN KLC is still interested in pursuing legislation, units or emergency and ambulance nonprofits plate. especially since the Trane decision does not organized by units of government. In December In response to a question Senator Higdon solidly define “customary work.” 2014, the Department of Defense began asked, Mr. Onodu stated the cabinet is awaiting Representative Riggs announced that auctioning used HMMWVs to the general public more information about Tennessee and its policies the committee will not meet in July. The next for off-road use only. on this issue. HMMWVs must be demilitarized meeting will be held in August. Commissioner Hack stated there have been and must go through safety inspections as well as There being no further business, the meeting three citizen inquiries from Bourbon County, the VIN must be relinquished, but he is awaiting was adjourned at 12:00 p.m. Marion County and Monroe County as to private further information on the subject. citizens owning the HMMWVs and registering In response to a question asked by Chairman them for highway use. The manufacturer Harris, Commissioner Hack stated the vehicles states that the 16-inch ground clearance of the will be looked into and made sure that they are HMMWV is an engineering feat, considering compliant with federal regulations before they the vehicle stands only 72-inches high. Full- are deemed road worthy. THE KENTUCKY GENERAL ASSEMBLY 21 In response to a question asked by Co- allowed to be licensed for on road use. for managing product development) is run Chair Collins, Commissioner Hack stated he Update on KAVIS Vehicle Information effectively and the solution architecture is has observed the disclaimer statements that are Program sound. The production infrastructure hosting the required, as well as the hold harmless agreements Heather Stout, Executive Director, Office application is adequately sized. The code metrics that must be signed by the receiving agencies of Information Technology, KYTC updated analysis has found that most code elements have of the vehicles and added that he does not feel the Committee on the progress of KAVIS. She good maintainability with exception of two with qualified to give an opinion on the allowance of stated the KAVIS:2 approach has two objectives: moderate maintainability. these vehicles becoming road worthy although it to enhance the use of AVIS minimally through The issues and risks that have arisen in does give him some pause. He added that some interfaces to gain benefits for citizens and the challenge to replace AVIS include the people may want the HMMWVs to be deemed stakeholders; and to replace AVIS gradually time requirement needed of the clerks to road worthy due to their powerful, versatile through implementation of modules. implement the new process, the buy-in needed nature and their capabilities as an overall Director Stout stated the print on demand of stakeholders, the challenge of adhering to vehicle. Co-Chair Collins voiced his concern decal and scanning was fully implemented in the guiding principles, the acceptance of the for the safety of other vehicles if the HMMWVs May, 2015. The cabinet received the AAMVA agile methodology, the decentralized execution, were allowed on the roadway. Regional Award: Improvement through sharing resources, scheduling issues and In response to a question asked by efficiencies Award for Kentucky’s print on assessment service issues. Representative Wuchner concerning a standard demand decal project. There has been a process Ms. Stout stated the positive momentum in list of modifications needed for HMMWVs improvement in title approvals from the original going forward to replace AVIS involves a highly to become road worthy, Commissioner Hack 41 days it took to now only taking one day. The motivated team which has a sense of pride and stated KRS gives a specific list of vehicle new web renewal site deployed fall 2015, and an will to prove their capabilities to complete the characteristics that have to be met for a vehicle enhanced web renewal will be deployed in the task. The resources, both existing and new, to be deemed road worthy. One criteria that spring 2016. have formed into a cohesive team and feedback the department goes by is the manufacturer’s Director Stout stated the future objectives of on work completed thus far has been positive. original intent of the vehicle, even if the vehicle the project include automating web renewal for The project has encouraging and supportive is modified to be able to be used on the road. Clerks, fleet renewal improvements, temporary stakeholders that accepted the modular approach Mr. Onodu stated if modifications are made, tag system improvements and a centralized easily. A working committee that includes the vehicle specifications are sent back to the issuance of license plates. The benefits of a various stakeholders meets weekly to validate original manufacturer. Its determination whether modular approach include the ability to roll out requirements of the process and program. the vehicle has been made road worthy will be smaller pieces over time, incrementally remove Ms. Stout stated there was an initial $11,295, taken into consideration. functionality from AVIS, a minimized risk, the 013 budget for the project. KAVIS; 2 began In response to a question asked by enhancement of data cleansing and conversion, in January of 2015 and $2,679,106 was spent Representative Jerry Miller, Commissioner enabling the cabinet to focus for training efforts from January 2015 to May, 2016. She added Hack stated he is unsure if insurance companies and the ability to organize by vehicle type and that $4,292,188 was returned from the previous will insure these vehicles. Representative Miller volume. vendor, 3M, which brings the remaining balance also voiced his concerns of the possibilities of Director Stout stated module one, disabled for the project to be $12,952,820, which is more dangers that having HMMWVs on the road placards, is complete. The cabinet is working funds than KAVIS: 2 began with. would pose. on pieces of software after each sprint and is Chairman Harris praised the cabinet for Senator Bowen cautioned the committee focused on value-added functionality. Because their ability to rectify the project with a new that special mechanics and skill sets are needed of the modular approach, there will be multiple approach after 3M’s failed methodology. The to work on HMMWVs. releases and which increases functionality, committee echoed those sentiments. Chairman In response to a question asked by decreases complexity and increases the Harris announced the next meeting of the Interim Representative Mills concerning the role the credibility of the agile process. The next module, Joint Committee on Transportation to be August federal government would play in Kentucky boat titling, will encompass new areas such as 2, 2016. changing the statutes or regulations to allow ad valorem taxes, fees, and liens, which will be With no further business, the chairman the HMMWVs to become road worthy, transferrable to other modules such as motor adjourned the meeting at 2:04 P.M. Commissioner Hack stated at this time it is vehicles and commercial vehicles. unclear the role the federal government will play. Director Stout stated the cabinet is INTERIM JOINT COMMITTEE ON Mr. Louie Emmons, concerned citizen maximizing the success replacing AVIS by spoke in favor of allowing HMMWVs to become having project management reviews throughout APPROPRIATIONS AND REVENUE road worthy stating his personal wishes to own the process including KiZAN process guidance. Budget Review Subcommittee on one himself. He referenced documentation from KiZAN was hired by the cabinet to assist in Transportation other states, such as Utah, that have registered overseeing and implementing the process. Minutes of the 1st Meeting these vehicles for highway use. KiZAN has indicated the project team is self- of the 2016 Interim Representative McKee inquired about the correcting, and its guidance is no longer needed. June 23, 2016 cost difference between a commercially available The cabinet is seeing independent verification Call to Order and Roll Call Hummer and a Military Surplus HMMWV. and validation through the Commonwealth The first meeting of the Budget Review Mr. Emmons replied that the cost difference Office of Technology, which has provided very Subcommittee on Transportation of the Interim is approximately $100,000. As to speed, Mr. positive feedback and stated the KAVIS: 2 team Joint Committee on Appropriations and Emmons stated they go approximately 60 MPH. could serve as a good model/example for other Revenue was held on Thursday, June 23, 2016, Chairman Harris stated if the requirements Commonwealth teams and organizations of the at 10:30 AM, in Room 131 of the Capitol Annex. can be met to deem these vehicles road worthy, agile discipline at work. Representative Leslie Combs, Chair, called the he takes no issue with allowing them to be put The cabinet has further maximized meeting to order, and the secretary called the on the road. success on replacing AVIS by having Microsoft roll. Mr. Jay Grundy spoke in favor of allowing technical assessments done in which technical Present were: the HMMWVs to become road worthy. He recommendations are being implemented. The Members: Representative Leslie Combs, stated if a vehicle conforms to all of the federal “scrum” process (an iterative and incremental Co-Chair; Senators Ernie Harris, Christian guidelines, then he is unsure how it cannot be agile software development framework McDaniel, Dennis Parrett, and Robin L. Webb;

22 2016 Interim LEGISLATIVE RECORD Representatives Hubert Collins, Jeff Greer, cash management approach was prioritized from Short, and Susan Westrom. Dennis Keene, Sal Santoro, John Short, and Jim an engineering prospective. Criteria included Guests: Donnie Holland, Commissioner, Stewart III. size of project, stage of development, safety, Department of Parks, Tourism, Arts, and Guests: Greg Thomas, Secretary, congestion, and community impact. Projects Heritage Cabinet (TAHC); Rob Richards, Transportation Cabinet; Asa James Swan, Chief from all over the state were included. Chair Director, Financial Operations, Department of of Staff, Office of the Secretary, Transportation Combs stated that local economies are affected Parks, TAHC; and Phillip Brown, Chief of Staff Cabinet; John-Mark Hack, Commissioner, by these projects. and Legislative Liaison, TAHC. Department of Vehicle Regulation, Transportation In response to questions from Senator LRC Staff: Joe Lancaster, Stephanie Rich, Cabinet; Bob Drakeford, Internal Policy Analyst McDaniel, Secretary Thomas said the Road Greg Troutman, and Benjamin Thompson. III, Office of Budget and Fiscal Management, Fund cash model forecasts project expenses over Tourism, Arts, and Heritage Cabinet- Transportation Cabinet; Paul Looney, Deputy a three-year time frame to model the daily cash Department of Parks State Highway Engineer, Transportation Cabinet; balance. He said there is no additional cost for Commissioner Donnie Holland presented Ron Rigney, Director, Division of Program delaying the projects. The $100 million floor is a an update on the budget for the Department of Management, Transportation Cabinet; and, Jon recommendation rather than a statute. Parks. Wilcoxson, Director, Division of Maintenance, In response to a question from Chair In response to a question from Chair Transportation Cabinet. Combs, Secretary Thomas said the cabinet is Donohue, Commissioner Holland noted that LRC Staff: Justin Perry, Jeff Schnobrich, using the same cash model, but it is now being there is currently a splash park in the E.P. Sawyer and Spring Emerson. evaluated on a daily basis to monitor the low day State Park in Louisville. Update on REAL ID of the month. In response to a question from Representative Commissioner Hack provided an update on In response to questions from Representative Westrom, Commissioner Holland stated that the the REAL ID program. Stewart, Secretary Thomas said maintenance Department of Parks would consider possible In response to questions from Chair Combs, activities such as mowing and striping have partnerships with Workforce Investment Boards Commissioner Hack said he is confident that an been cut back to trim expenses in order to meet statewide to help provide job training while extension of the deadline would be considered. a critical cash flow objective. He said the State reducing departmental costs. The Department of Homeland Security uses Highway Engineer is looking at all aspects of In response to a question from Representative three criteria in considering an extension: 1) projects from start to finish, from preliminary Palumbo, Mr. Richards confirmed that the progress made by a jurisdiction in implementing design, to design, construction, utilities, right-of Department of Parks pays a small fee of ten the minimum standards of the Act; 2) a way, etc. all across the state. to fifteen percent to travel websites, such as justification for non-compliance and plans for In response to questions from Chair Travelocity and Expedia, for any rooms rented implementing those requirements; and, 3) the Combs, Secretary Thomas said the cabinet through their sites. existence of external factors that would delay spends approximately $10 million per day, and In response to questions from Chair implementation, such as resources, contract $100 million is the implied safety mark. The Donohue, Commissioner Holland confirmed cycles, and/or operations issues. Extensions are maintenance and resurfacing fund will be spread that Kentucky has the most state resort parks (17 granted on an annual basis. He said the current across the state, where it is most needed. The parks) in the country. Commissioner Holland drivers’ license system contract expires in Pause 50 plan is in response to an 18 percent stated that the average number of resort parks January 2017. There are a number of companies decrease in funding, and is a better way to per state is 4. Commissioner Holland stated that that provide new technologies that would allow manage. When more money comes in, it will the Department of Parks has $1.3 million set the manufacture and distribution of secure be spent on the paused projects according to the aside for campground improvements. drivers’ license cards. It has not been decided prioritization model. In response to a question from whether or not to request an extension of the There being no further business before the Representative Mills, Commissioner Holland current contract or to re-bid the contract. subcommittee, the meeting was adjourned at noted that the Department of Parks sponsors In response to questions from 11:40 AM. frequent radio advertisements in certain regions Representative Keene, Commissioner Hack said and employs a social media team that advertises travel restrictions would not be imposed until INTERIM JOINT COMMITTEE ON through social media networks. January 2018, with a final deadline of 2020. The In response to questions from Sen. cost of an eight-year drivers’ license would be APPROPRIATIONS AND REVENUE Girdler, Commissioner Holland noted that $48, according to the provisions of Senate Bill Budget Review Subcommittee on Economic while increased bond resources have been 245 of the 2016 Regular Session. Development and Tourism, Natural discussed for increasing the Department of In response to a question from Resources and Environmental Protection Parks’ maintenance pool, no further legislative Representative Collins, Commissioner Hack Minutes of the 1st Meeting action occurred. Commissioner Holland noted said the medical review board attached to the of the 2016 Interim that he had not been involved in any tax reform Commissioner’s office has a mechanism in place June 23, 2016 conversations. to deal with medical issues that would affect the Call to Order and Roll Call There being no further business, the meeting safety of the driving public. The 1st meeting of the Budget Review was adjourned at 11: 05 AM. Chair Combs stated that the REAL ID Subcommittee on Economic Development and program would be discussed again in the October Tourism, Natural Resources and Environmental ADMINISTRATIVE REGULATION meeting. Protection of the Interim Joint Committee Road Fund Cash Management Plan on Appropriations and Revenue was held on REVIEW SUBCOMMITTEE Discussion: Update on Salary Study Required Thursday, June 23, 2016, at 10:00 AM, in Room Minutes of the June Meeting by HB 304 129 of the Capitol Annex. Representative Jeffery June 14, 2016 Transportation Cabinet Secretary Thomas Donohue, Chair, called the meeting to order, and Call to Order and Roll Call provided an update on the Road Fund Cash the secretary called the roll. The June meeting of the Administrative Management Plan and the Salary Study Required Present were: Regulation Review Subcommittee was held on by HB 304. Members: Senator Chris Girdler, Co-Chair; Tuesday, June 14, 2016, at 1:00 PM, in Room In response to questions from Senator Webb, Representative Jeffery Donohue, Co-Chair; 149 of the Capitol Annex. Senator Ernie Harris, Secretary Thomas said the list of state-funded Senator Perry B. Clark; Representatives Terry Chair, called the meeting to order, and the projects that were halted as part of the Cabinet’s Mills, Ruth Ann Palumbo, Dean Schamore, John secretary called the roll. THE KENTUCKY GENERAL ASSEMBLY 23 Present were: hearings; appeals and other proceedings. amend the NECESSITY, FUNCTION, AND Members: Senator Ernie Harris, Co-Chair; A motion was made and seconded to CONFORMITY paragraph to clearly state Representative Mary Lou Marzian, Co-Chair; approve the following amendments: to amend the necessity for and function served by this Senators Julie Raque Adams, Perry B. Clark, the RELATES TO paragraph to add citations. administrative regulation, as required by KRS and Alice Forgy Kerr; Representatives Linda Without objection, and with agreement of the 13A.220; (2) to amend Section 5 to add items Belcher, Will Coursey, and Tommy Turner. agency, the amendments were approved. to the list of what a nurse shall include under Guests: Leanne Diakov, Board of Medical Office of Occupations and Professions: informed consent; (3) to add Section 6 to Licensure; Melanie Abner, John Marcus Board of Licensure for Ophthalmic establish that a continuing education provider Jones, Granville Smith, Board of Ophthalmic Dispensers: Board may utilize telehealth pursuant to 201 KAR Dispensers; David Cox, Board of Engineers & 201 KAR 13:040. Licensing; application; 20:220 in continuing education courses; and Surveyors; Nathan Goldman, Paula Schenk, examination; experience; renewal; and inactive (4) to amend Sections 4 and 5 to comply with Board of Nursing; John Brunjes, Karen Waldrop, status. Melanie Abner, secretary; Marcus Jones, the drafting and formatting requirements of David Wicker, Department of Fish and Wildlife assistant attorney general; and Granville Smith, KRS Chapter 13A. Without objection, and with Resources; Sean Alteri, Division of Air Quality; chair, represented the board. Curt Duff, executive agreement of the agency, the amendments were Amy Barker, Oran McFarlan, Deanna Smith, director, Opticians Association of Kentucky, approved. Department of Corrections; Ann DAngelo, appeared in support of this administrative TOURISM, ARTS AND HERITAGE Transportation Cabinet; Jessica Sharpe, Charles regulation. CABINET: Department of Fish and Wildlife Vice, Department of Financial Institutions, and In response to a question by Co-Chair Harris, Resources: Game Curt Duff. Mr. Smith stated that a licensed ophthalmic 301 KAR 2:095. Importation of cervid LRC Staff: Sarah Amburgey, Ange Bertholf, dispenser may work for an optometrist or an carcasses and parts. John Brunjes, migratory Emily Caudill, Betsy Cupp, Emily Harkenrider, ophthalmologist or may have an independent bird coordinator; Karen Waldrop, deputy Karen Howard, Carrie Klaber, and Donna Little. dispensary. commissioner; and David Wicker, general The Administrative Regulation Review Mr. Duff stated that Opticians Association counsel, represented the department. Subcommittee met on Tuesday, June 14, 2016, of Kentucky represented approximately 570 of In response to questions by Co-Chair and submits this report: the 650 licensed ophthalmic dispensers. The fees Harris, Ms. Waldrop stated that the department Administrative Regulations Reviewed by for licensure continued to be the lowest in the performed extensive testing of deer and elk the Subcommittee: nation, and the association supported the modest for chronic wasting disease, and Kentucky had GENERAL GOVERNMENT CABINET: fee increases. not identified any instances of chronic wasting Board of Medical Licensure: Board In response to a question by Co-Chair disease to date. Chronic wasting disease had 201 KAR 9:016. Restrictions on use of Harris, Mr. Duff stated that the fee increases been detected in many surrounding states, amphetamine and amphetamine-like anorectic should cover the board’s costs for the foreseeable including in far eastern regions of Virginia controlled substances. Leanne Diakov, general future. and West Virginia. The department relied on counsel, represented the board. A motion was made and seconded to data from other states regarding expansion of In response to a question by Co-Chair approve the following amendments: to amend chronic wasting disease and used biological data Harris, Ms. Diakov stated that because she Sections 1 and 7 to comply with the drafting and modeling to determine high-risk areas for was not a medical specialist, she was unable requirements of KRS Chapter 13A. Without targeted surveillance and testing. to answer questions regarding amphetamine objection, and with agreement of the agency, the Co-Chair Harris encouraged the department and amphetamine-like anorectic controlled amendments were approved. to keep up the good work regarding the substances. 201 KAR 13:050. Apprentices. department’s impressive efforts to build 201 KAR 9:025. Interpretation and A motion was made and seconded Kentucky’s elk populations. application of KRS 311.571(10). to approve the following amendments: to In response to questions by Senator Kerr, A motion was made and seconded to amend the NECESSITY, FUNCTION, AND Ms. Waldrop stated that, while the Zika virus approve the following amendments: (1) to amend CONFORMITY paragraph and Sections 1, 2, was a public health concern, it was not a the STATUTORY AUTHORITY paragraph to and 3 to comply with the drafting requirements wildlife issue. The department contributed to add a citation; (2) to amend the NECESSITY, of KRS Chapter 13A. Without objection, and the Kentucky State Zika Conference, which FUNCTION, AND CONFORMITY paragraph with agreement of the agency, the amendments took place in May, and was making efforts to to clearly state the necessity for and function were approved. educate hunters in the field about the risks and served by this administrative regulation, as State Board of Licensure for Professional precautions. The department was unaware of required by KRS 13A.220; and (3) to amend Engineers and Land Surveyors: Board statewide procedures to address Zika. Sections 1 and 2 to comply with the drafting and 201 KAR 18:020. Application forms. David 301 KAR 2:122. Seasons, methods, and formatting requirements of KRS Chapter 13A. Cox, executive director, represented the board. limits for small game. Without objection, and with agreement of the Board of Nursing: Board In response to questions by Co-Chair Harris, agency, the amendments were approved. 201 KAR 20:520. Telehealth. Nathan Ms. Waldrop stated that slingshot requirements 201 KAR 9:081. Disciplinary proceedings. Goldman, general counsel, and Paula Schenk, only authorized manufactured hunting In response to a question by Co-Chair executive director, represented the board. ammunition because using other ammunition, Harris, Ms. Diakov stated that the board had not In response to a question by Co-Chair Harris, such as rocks, may reduce the efficacy of the encountered an instance of multiple failures by a Mr. Goldman stated that the board opted to leave projectile. Manufactured ammunition was single licensee or applicant to report a criminal the determination up to the provider regarding if developed to maintain a constant velocity and conviction or action taken by another licensing the initial meeting in a telehealth situation should to effectively penetrate game, making a more board. be in person. There were many different types of lethal and ethical kill. Mr. Brunjes stated that A motion was made and seconded to approve licensed nurses involved, and many functioned manufactured ammunition was developed to the following amendments: to amend Section 9 in call centers, which made face-to-face meetings maintain a consistent velocity. Ms. Waldrop to: (1) reference statutory exceptions; and (2) impractical. Additionally, a case from Texas stated that manufactured ammunition was in clarify board procedures. Without objection, and challenged such a requirement as a possible pellet form of standardized weights and came with agreement of the agency, the amendments monopoly (anti-trust) violation. in different weights for different slingshot styles were approved. A motion was made and seconded to and hunting situations. 201 KAR 9:240. Emergency orders and approve the following amendments: (1) to A motion was made and seconded to

24 2016 Interim LEGISLATIVE RECORD approve the following amendments: (1) to and a footnote to Appendix A to comply with The following administrative regulations amend Section 1 to make a technical correction; the drafting requirements of KRS Chapter 13A. were deferred to the July 14, 2016, meeting of and (2) to amend Section 4 to correct a cross- Without objection, and with agreement of the the Subcommittee: reference citation. Without objection, and with agency, the amendments were approved. GENERAL GOVERNMENT CABINET: agreement of the agency, the amendments were JUSTICE AND PUBLIC SAFETY Board of Medical Licensure: Board approved. CABINET: Department of Corrections: Office 201 KAR 9:250. Registration and oversight 301 KAR 2:226. Youth waterfowl, moorhen, of the Secretary of pain management facilities. and gallinule hunting seasons. 501 KAR 6:020. Correction policies and Board of Licensed Diabetes Educators: A motion was made and seconded to procedures. Amy Barker, assistant general Board approve the following amendments: to amend counsel, represented the department. 201 KAR 45:110. Supervision and work Sections 1, 2, and 3 to comply with the drafting In response to questions by Representative experience. requirements of KRS Chapter 13A. Without Belcher, Ms. Barker stated that the Prison Rape PUBLIC PROTECTION CABINET: objection, and with agreement of the agency, the Elimination Act protected vulnerable classes Department of Alcoholic Beverage Control: amendments were approved. of inmates. The Prison Rape Elimination Licensing ENERGY AND ENVIRONMENT Act regulated how vulnerable classes of 804 KAR 4:400. ABC basic application and CABINET: Department for Environmental inmates are housed and provided training and renewal form incorporated by reference. Protection: Division for Air Quality: Ambient reporting requirements, including the option The Subcommittee adjourned at 1:40 p.m. Air Quality for anonymous reporting. Ms. Barker stated until July 14, 2016, at 1 p.m. 401 KAR 53:010. Ambient air quality that the department would follow up with more standards. Sean Alteri, director, represented the information regarding specific training details. division. A motion was made and seconded to approve CAPITAL PROJECTS AND BOND In response to questions by Co-Chair the following amendments: to amend Section 1 Harris, Mr. Alteri stated that this administrative and the material incorporated by reference to: OVERSIGHT COMMITTEE regulation was amended commensurate with (1) comply with the drafting and formatting Minutes updates to the federal ambient air quality requirements of KRS Chapter 13A; (2) correct June 21, 2016 standards, some of which had become more citations; and (3) update the edition dates of the Call to Order and Roll Call restrictive as a result of better data and health revised policies. Without objection, and with The Capital Projects and Bond Oversight information. The previous one (1) in eight (8) agreement of the agency, the amendments were Committee met on Tuesday, June 21, 2016, at hour average ozone concentration standard approved. 1:00 PM, in Room 169 of the Capitol Annex. (seventy-five (75) ppb) was replaced in 2015 TRANSPORTATION CABINET: Office of Representative Chris Harris, Chair, called the with an ozone standard of seventy (70) ppb. All the Secretary: Administration meeting to order, and the secretary called the Kentucky counties met that previous standard; 600 KAR 1:031. Repeal of 600 KAR 1:030 roll. however, the new seventy (70) ppb standard and 600 KAR 1:045. Ann D’Angelo, assistant Present were: may be more difficult to meet, especially in general counsel, represented the cabinet. Members: Representative Chris Harris, Co- Louisville and Northern Kentucky. The division Toll Facilities Chair; Senators Julian M. Carroll, Chris Girdler, received many legislative inquiries regarding 600 KAR 2:011. Repeal of 600 KAR 2:010, Stan Humphries, and Christian McDaniel; and replacing reformulated gasoline in these areas 2:020, 2:030, and 2:040. Representative Steven Rudy. with, for example, Reid vapor pressure gasoline Department of Vehicle Regulation: Motor Guests: Mr. Scott Aubrey, Director of Real requirements consistent with Jeffersonville, Carriers Properties, Finance and Administration Cabinet; Indiana and Cincinnati, Ohio. The division was 601 KAR 1:032. Repeal of 601 KAR 1:030, Ms. Janice Tomes, Deputy State Budget Director; considering these options in the context of U.S. 601 KAR 1:031, 601 KAR 1:045, 601 KAR Ms. Elizabeth Baker, Planning Director, EPA requirements. Requirements pertaining to 1:050, 601 KAR 1:065, and 601 KAR 1:070. University of Kentucky; Ms. Brandi Norton, dust monitoring should not affect agricultural Motor Vehicle Tax Financial Analyst, Kentucky Infrastructure activities, such as tilling or cutting hay, because 601 KAR 9:056. Repeal of 601 KAR 9:055. Authority; Mr. Ryan Barrow, Executive Director, particulate matter standards involved particles Division of Vehicle Enforcement: Office of Financial Management; and Mr. Steve two and five tenths (2.5) microns or less, which Commissioned Employees Collins, Bluegrass Station Division Director, could be trapped in the lungs. Particulate matter 601 KAR 15:030. Repeal of 601 KAR Department of Military Affairs. from typical agricultural activities was much 15:010 and 601 KAR 15:020. LRC Staff: Josh Nacey, Committee Staff larger and would not register with the monitoring PUBLIC PROTECTION CABINET: Administrator; Julia Wang, Analyst; and Jenny equipment. U.S. EPA required ultra-low sulfur Department of Financial Institutions: Division Wells, Committee Assistant. diesel fuel, which was making a difference of Nondepository Institutions: Check Cashing Election of Senate Co-Chair regarding sulfur dioxide monitoring in Kentucky. 808 KAR 9:050. Required forms, Representative Harris, Chair, said that Fuel producers and distributers and engine procedures, and fees for applicants and licensees. Senator Girdler recently stepped down as manufacturers were subject to the emissions Jessica Sharpe, general counsel, and Charles committee co-chair. Pursuant to KRS 45.790, standards from the operation of engines. This Vice, commissioner, represented the division. a Co-Chair position is to be addressed by administrative regulation established ambient A motion was made and seconded to election. Senator McDaniel nominated Senator air quality standards, but the administrative approve the following amendments: (1) to amend Humphries for the position of Senate Co-Chair. regulation that establishes implementation the STATUTORY AUTHORITY paragraph to The motion was seconded by Senator Girdler. may include additional requirements that may add citations; (2) to amend the NECESSITY, Senator Carroll moved that nominations cease significantly impact the regulated community. FUNCTION, AND CONFORMITY paragraph and that Senator Humphries be elected by That administrative regulation was not yet to clearly state the necessity for and function acclamation. The motion was seconded by before this Subcommittee for consideration. served by this administrative regulation, as Senator Girdler and approved by voice vote. A motion was made and seconded to approve required by KRS 13A.220; and (3) to amend Approval of Minutes the following amendments: to amend Section 2 Sections 2 through 5 and 8 to comply with the Senator Carroll moved to approve the drafting requirements of KRS Chapter 13A. minutes of the May 24, 2016 meeting. The Without objection, and with agreement of the motion was seconded by Representative Rudy agency, the amendments were approved. and approved by voice vote. THE KENTUCKY GENERAL ASSEMBLY 25 Correspondence Items Restricted Funds. The project was authorized Ridgelea Investments, Inc., Package Treatment Mr. Nacey, Committee Staff Administrator, with a budget of $2 million dollars from Agency Plant Abandonment project. The loan will have reported on a letter between the committee and Restricted Funds by the 2016 General Assembly a 1 year term, an interest rate of 1.75 percent Mary Vosevich, Vice President for Facilities in HB 303. This request is for an increase of and an annual estimated debt service payment Management, University of Kentucky, regarding $300,000 in restricted funds for the project of $15,227. the committee’s disapproval of the funding which involves renovation of 18,000 square feet The fourth item was for a Fund B loan for revision proposal for the Construct Housing at Bluegrass Station. the City of Lewisport in Hancock County. The 1-Alpha Gamma Rho Fraternity project at its In response to a question from Senator request was for $115,000 for the Lewisport May 24, 2016 meeting. McDaniel, Steve Collins, Bluegrass Station Water Tank Rehab project. The loan will have Information Items Division Director, Department of Military a 20 year term, an interest rate of 2.75 percent Mr. Nacey said there was one information Affairs (DMA), said that the bid for the project and an annual estimated debt service payment item for the committee members’ review. This was for $1.9 million dollars. A contingency and of $7,744. item is a lease advertisement for the Department architectural work pushed it over $2 million. The fifth item was for a Fund B loan for the of Parks in Franklin County, exceeding Senator McDaniel stated that his recollection City of Elkhorn City in Pike County. The request $200,000. This lease advertisement is due to the was that the project was initially authorized for was for $402,061 for the Wastewater Treatment need to relocate current tenants of the Capital the use of restricted funds. Ms. Tomes and Mr. Plant project. The loan will have a 15 year term, Plaza Tower. Collins said this is correct. Mr. Collins also said an interest rate of .75 percent and an annual Project Reports from the Universities these funds are provided to the Commonwealth estimated debt service payment of $29,194. Ms. Elizabeth Baker, Planning Director, through a lease with the federal government. In Senator McDaniel noted the importance University of Kentucky (UK), reported on a lease response to a question from Senator McDaniel, of distinguishing between the two factors renewal for UK, College of Social Work, Small Mr. Collins confirmed that the distribution of mentioned during the discussion of the first Business Administration, College of Agriculture, these funds is controlled by DOD. Mr. Collins loan for Elkhorn City: the consent decree located in the Kentucky Utility Building. The further said that DMA is allowed to retain an versus the overall status of the plant. He also lease renewal will reduce the square footage overage that it costs to run the facility, so it is mentioned that, in addition to borrowing just to from 32,684 square feet to 16,342 square feet. using those retained funds for this project. This maintain the facilities, they are now borrowing The cost per square foot is $7.48 and the annual is a headquarters for Special Operations Forces to upgrade those facilities to comply with the cost is $122,238. Representative Rudy made a Support Activity (SOFSA) which has occupied consent decree. Senator McDaniel stated that motion to approve the lease renewal, seconded the building for 18 years and has done most of he would like for KIA to be more proactive in by Senator McDaniel. The motion passed by roll the renovations to it. SOFSA has asked DMA terms of identifying cash flow problems facing call vote of 6 yeas, 0 nays. to do the renovations which justifies the lease local governments. Representative Harris said Lease Reports from Finance and increase for this project. Senator McDaniel made that Senator McDaniel’s point is well taken. He Administration Cabinet a motion to approve the appropriation increase, said that Elkhorn City is in his district and it is a Mr. Scott Aubrey, Director, Division of seconded by Representative Rudy. The motion very poor town with little economic activity and Real Properties, Finance and Administration passed by roll call vote of 6 yeas, 0 nays. a wastewater treatment plant that is in terrible Cabinet, presented one item which was for a Report from the Office of Financial shape. It has been under a consent decree for lease modification for the Cabinet for Health and Management some time and the city has been able to get Family Services, Department for Community Ms. Brandi Norton, Financial Analyst, some federal funding to pay the lion’s share of Based Services in Boone County. The lease Kentucky Infrastructure Authority (KIA), the new sewage treatment plant. Representative modification will relieve over-crowding, provide reported on six items. Senator Carroll made Harris also noted that the city has annexed offices for new employees, and accommodate the a motion to consolidate all the projects in one some additional areas that will help them gain realignment for regional staff members. All the vote, seconded by Senator Humphries. The additional tax revenue. original terms of the lease will remain in place motion was approved by voice vote. The final item was for a Fund B loan for the and an additional four automatic renewals have The first items was for a Fund A loan for the City of Lancaster in Garrard County. The request been added to the lease modification. This lease City of Elkhorn City in Pike County. The request was for $406,868 for the Wastewater Treatment modification will increase the square footage was for $560,000 for the Wastewater Treatment Plant Sand Filter Replacement project. The loan from 21,454 square feet to 27,236 square feet. Plant project. The loan will have a 30 year term, will have a 20 year term, an interest rate of .75 The costs per square foot is $13.45 and the an interest rate of .75 percent and an annual percent and an annual estimated debt service annual cost is $366,342. Representative Rudy estimated debt service payment of $12,179. payment of $22,759. made a motion to approve the lease modification, In response to a question from Senator Representative Rudy made a motion to seconded by Senator Carroll. The motion passed McDaniel, Ms. Norton said she did not know approve these six items, seconded by Senator by a roll call vote of 6 yeas, 0 nays. specifically the extent to which the consent Carroll. The motion was approved by roll call Project Reports from the Finance and decrees, as compared to the plant’s failure, vote of 6 yeas and 0 nays. Administration Cabinet contributed to the rate increases. She stated that Office of Financial Management Ms. Janice Tomes, Deputy State Budget the city is facing a lot of challenges right now Mr. Ryan Barrow, Executive Director, Director, reported on two pool projects from including a dwindling population and existing Office of Financial Management (OFM), the Finance and Administration Cabinet. The debt which will be addressed later in this reported on two items. The first item was first project was for the Department of Parks in meeting. the Kentucky Infrastructure Authority (KIA) Henderson County in the amount of $1,317,236. The second item was for a Fund A loan for Wastewater and Drinking Water Revolving The land acquisition is funded from the Kentucky the City of Hawesville in Hancock County. The Fund Revenue Bonds, Funds A and F with a Heritage Land Conservation Pool, and involves request was for $3,000,000 for the Hawesville par amount of $49,070,000, a net present value the purchase of 649 acres adjacent to John James Sewer Plant Rebuild project. The loan will have savings of $3.6 million over the life of the bonds, Audubon State Park. No action was required. a 20 year term, an interest rate of 1.75 percent which represents 7.1 percent. Proceeds from this The second project was for an appropriation and an annual estimated debt service payment bond issue will partially advance refunded KIA’s increase for Military Affairs for the renovation of $184,427. 2010A bonds and 2012A bonds. No action was of Bay A at Bluegrass Station in Fayette County. The third item was for a Fund A loan for required. The requested appropriation of $2,300,000 the Farmdale Sanitation District in Franklin The second item was the Northern Kentucky is funded from Bluegrass Station Agency County. The request was for $300,000 for the University General Receipts Refunding Bonds,

26 2016 Interim LEGISLATIVE RECORD Series 2016 A. This bond issue refunded LRC Staff: Jo Carole Ellis, Joshua Collins, with knowledge of a violation of KERA also outstanding General Receipts 2007 Series A and Chris White. has an obligation to make a referral to OEA for bonds with a par amount of $25,765,000, true Representative Kay stated that a quorum investigation. OEA is the state clearinghouse for interest cost of 2.20 percent, and a net present was not present at the meeting and that the any complaint. An investigation is conducted value savings of $2.5 million dollars which December 1, 2015 minutes of the EAARS and OEA then refers back to those agencies for represents about 9.4 percent in savings. No meeting could not be approved until the next action upon the conclusion of the investigation. action was required. EAARS meeting, to be held August 16th, 2016. Mr. Wickersham said that KRS 160.345 New School Bond Issues with School Representative Kay recognized the provides anyone who has been, or believes they Facilities Construction Commission (SFCC) respective chairmen of the Senate and House have been, adversely affected by a school-based Debt Service Participation Education Committees, Senator Mike Wilson decision making (SBDM) matter the opportunity Mr. Barrow, reported on 14 items, 3 will and Representative Derrick Graham. to file a written complaint. OEA is obligated finance school renovations and the remaining Representative Kay introduced David to investigate all complaints and is required to 11 will refinance previous bond issues. These Wickersham, Deputy Director of the Office of either resolve that issue or to forward that matter bond issues do not involve tax increases. Education Accountability (OEA), and Karen on to the Kentucky Board of Education (KBE) Representative Rudy made a motion to Timmell-Hatzell, OEA Division Director of for action. approve the school bonds, seconded by Senator Investigations. Mr. Wickersham introduced In 2013, OEA opened a 80 new Humphries. The motion was approved by roll members of his staff: Rosemary Oaken, Tammy investigations and closed 77. In 2014, OEA call vote of 6 yeas and 0 nays. Daniel, Angie Jones, Sabrina Olds, Brenda opened 66 investigations and closed 63. OEA Local School Bonds – New School Bonds Landy, Albert Alexander, Yvette Perry, Deborah received 612 written complaints in 2015 that Issues with 100 Percent Locally-Funded Debt Nelson, Bryan Jones, Roya Ghazi, Alicia Sneed, required formal action. This does not include Service Participation Bryan Moore, and Logan Rupard. phone calls, emails, or hotline messages. From Mr. Nacey reported that three local school Mr. Wickersham discussed the findings the written complaints, OEA opened 49 cases, bond issues have been reported to the committee. of the 2015 OEA Annual Report in detail. The which is approximately 8 percent of the total These bond issues are 100 percent locally funded committee was informed by Mr. Wickersham complaints that were received. Three hundred and do not involve tax increases. The purposes that under KRS 7.410, OEA is required to ninety-three of the 612 written complaints were for these bonds include refunding of previous present an annual report of the status and results anonymous complaints. In 2015, there were 49 issues, the financing of energy conservation of the annual research. OEA is also required to new cases opened and 59 closed. In 48 of the measures, the financing of improvements to provide a summary of the complete investigative closed cases, OEA identified 80 violations of an existing school building, as well as the activity and a written report of the findings. law. Mr. Wickersham said that it is important construction of a new school building. No action Mr. Wickersham explained that OEA’s to remember that an initial complaint may raise was required. outreach program has regular meetings and other issues during the investigation that lead to Mr. Nacey said that the updated debt frequent contact with its educational partners. additional issues which are substantiated. In 11 issuance calendar was included in the members’ The outreach program is designed to ensure of these closed cases, there were no findings of folders. all inquiries receive consistent answers as any violations whatsoever. With there being no further business, the provided through OEA and its educational Mr. Wickersham stated that another concern meeting was adjourned at 1:27 p.m. partners. OEA conducts monthly meetings with frequently expressed to the investigators Kentucky Department of Education (KDE) and is the possibility of retaliation or negative EDUCATION ASSESSMENT AND maintains frequent contact with the Kentucky repercussions to an individual who has filed School Board Association (KSBA), Kentucky the report should their identity become known ACCOUNTABILITY REVIEW Association of School Superintendents (KASS), or confirmed. Although OEA’s intention is to SUBCOMMITTEE Kentucky Association of School Administrators shield the identity of the complainant, it is not Minutes (KASA) and the Educational Professional possible to guarantee confidentiality. Under no June 21, 2016 Standards Board (EPSB). The purposes of these circumstance does OEA staff release or verify Call to Order and Roll Call meetings are to give an opportunity to identify the source of the complaint, because anonymous The meeting of the Education Assessment common concerns and ensure those concerns are information and protection against disclosure and Accountability Review Subcommittee interpreted according to the laws and regulations of a complainant’s history are worthwhile and (EAARS) was held on Tuesday, June 21, 2016, required to be followed in local districts and necessary practices. OEA makes every effort at 10:00 AM, in Room 129 of the Capitol Annex. provide an avenue for open feedback from to shield the identity of the complainants. Mr. Representative James Kay, Co-Chair, called the a customer service standpoint that allows an Wickersham stated that the effort to shield meeting to order, and the secretary called the opinion to be given on both the performance of identities encourages others to continue to come roll. the OEA employees and in an effort to ensure forward and raise complaints consistent with Present were: that all educational partners are on the same statutory obligations. Members: Senator Mike Wilson, Co- radar. Mr. Wickersham offered that one of his Chair; Representative James Kay, Co-Chair; Mr. Wickersham gave an overview of OEA’s greatest satisfactions is that OEA can investigate Representative Linda Belcher investigative duties. Under KRS 7:410, the OEA and demonstrate to the district that the law has Legislative Guest: Representative Derrick has the duty to investigate allegations involving been followed. Mr. Wickersham stressed it is Graham the wrongdoing of any person or agency in important to remember that a complaint does Guests: David Wickersham, Deputy Director, violation of the Kentucky Education Reform Act not automatically mean that there has been a Office of Education Accountability; Karen (KERA). OEA is obligated by statute to make violation of the law. Timmell-Hatzell, Education Accountability referrals to any agency that has the authority to Mr. Wickersham explained that upon receipt Division Director of Investigations, Office take enforcement action, upon determining a of a complaint, OEA will review past files to of Education Accountability; Clyde Caudill, violation has occurred. After gathering relevant determine if previously received complaints KASA; Wayne Young, KASA, Erin Klarer, information but prior to conclusions, OEA will about similar issues have occurred under that KHEAA. provide information to the districts regarding same district leadership. If a similar issues has the allegations. The districts then have an been addressed, it may suggest that there is a opportunity to provide a written response. repetitive behavior in a particular area. Before Mr. Wickersham said that any state agency taking action to begin an investigation, OEA THE KENTUCKY GENERAL ASSEMBLY 27 must consider the specificity of the information of performance of their day-to-day work. Mr. elections, although there are fairly clear guidance received, the seriousness of the allegation, issues Wickersham said that it is an extremely rare case regarding parent elections. Complaints received of proof, possible outcomes, and availability of in which OEA finds that someone has willfully typically allege interference with one of those witnesses. violated the law, which warrants further action processes and the resolution involves guidance. Mr. Wickersham testified that OEA declines by law enforcement, the Auditor of Public OEA must determine whether guidance is and refers over 90 percent of the matters that Accounts, or the KBE. Most referrals that are appropriate or if there is a need for a reminder come before them, including written complaints. made for action of that type are only in the cases about what is in the statute. These complaints are not ignored; however, they of egregious conduct at the district level that is Mr. Wickersham added that OEA also get are steered to more appropriate resources that typically either repeated over a short period of complaints that SBDM councils have violated have both statutory and regulatory authority to time or has been a consistent problem in that open meetings or open records laws – such as act or investigate and reach a determination district over a period of months or years. insufficient notice of meetings or meetings being Mr. Wickersham said that testing violation Mr. Wickersham made a distinction held at an inconvenient times for parents or or special education matters are referred to between preliminary and final reports of agency attendees. These complaints can also implicate KDE. OEA notifies the Kentucky Human Rights issues. OEA’s statutory obligation is to provide closed session meetings, which are permitted as Commission or federal authorities regarding an opportunity for districts to respond before long as the appropriate procedures are followed. discrimination since they are empowered to taking final action. Mr. Wickersham said that Another frequent complaint deals with SBDM act upon those matters. OEA refers criminal occasionally, there is some speculation raised councils that have failed to keep minutes or keep activity to the appropriate police or investigative that there has been some violation of due minutes that are inaccurate. agencies, fiscal matters to the Auditor of Public process in the performance in OEA’s role. Mr. Mr. Wickersham conveyed that some Accounts, and open meetings and open records Wickersham explained that due process is based complaints regard SBDM budgets - allegations matters that OEA is unable to resolve on their on notice of what the wrongdoing is believed that SBDM councils are not approving budgets own to the Office of the Attorney General. to be and an opportunity to respond. Mr. or they are not properly recording that approval Mr. Wickersham explained that OEA will Wickersham offered that the right to due process through the minutes of the actions of the body. frequently refer a matter back to a district for isn’t greatly impacted by OEA’s actions, because Occasionally, there are complaints that there is resolution, often for a disgruntled parent or a there is neither a deprivation of life, liberty, or an inappropriate policy or an absence of a policy disgruntled employee. There are procedures in property interest. Still the protections that the that the SBDM is required to make. SBDM place inside a district that perhaps the district has General Assembly has written into KRS 7.420 councils must make policies on curriculum, not yet had an opportunity to address itself. Often, provide the notice and opportunity to respond spending, the use of school space, discipline, a person that contacted OEA lacks awareness that due process would require. extra-curricular activities, alignment with the about what those processes and procedures are, Mr. Wickersham said that a preliminary standards, and the consultative role regarding so the district will have an opportunity to address report is sent to the district with an opportunity hiring. The complaints typically state that there that locally. to provide some response. A two-week window are no policies or that there is no fidelity to Mr. Wickersham stated that OEA avoids is given for the district’s response, unless the policies that are in place. Mr. Wickersham matters that are either already in litigation or additional time is requested. Districts pay close said that the principal is to consult with SBDM most likely headed for litigation. The agency attention and give consideration to each one of councils on vacancies, and occasionally OEA also declines to get involved if other formal the responses, thus OEA allows additional time will get a complaint that this type of consultation proceedings are pending. to gather information. does not occur. Mr. Wickersham said that cases are divided Mr. Wickersham emphasized that it is Mr. Wickersham said that there are concerns into investigative cases or SBDM cases. critically important that OEA continues to press regarding local Boards of Education – mostly Preferably, OEA provides a 3-day notice to on the notion that OEA’s work is rehabilitative. regarding allegations of hiring interference. KRS districts prior to making a scheduled visit for an OEA is very much interested in recognizing 161.80 provides clear instructions that Board of investigation. OEA informs the district of the the hard work performed locally every day and Education members may not influence or attempt witnesses the agency would like to interview under extremely difficult circumstances. OEA’s to influence the hiring of any school employee while also not giving too much information role is essentially to get districts back on track. with exceptions for superintendents, board regarding the specifics of the complaint. This Mr. Wickersham said that there is a significant treasurers, and board attorneys. It is possible for practice reflects OEA’s good faith effort to keep difference between getting a district back on OEA to make referrals on an allegation of that the district informed. OEA conducts interviews track and applying a penalty, which would result type, if substantiated, to the OAG for action. in the districts; but do not interview children or in taking someone out of the classroom or the Other complaints regard eligibility of a member students. After fact finding is completed, there district, or keeping someone from being able to to serve on a local Board of Education either might possibly be an extensive follow-up period continue in their profession. OEA recognizes the through the holding of an incompatible office or – this is due to the significant time it takes to dedication of school staff and administrators and residency. KRS 161:80 indicates that a member complete these cases. attempts to build upon helping them improve on must live and vote in the district they serve. Mr. Wickersham said the vast majority their performance at the local level. Occasionally OEA receives allegations that a of resolutions result in a recommendation for Mr. Wickersham testified that many written member maintains more than one home, using additional training. On the other hand, if any complaints focus on SBDM councils, which have one address for the purpose of attempting to violation of a regulation, statute, or local board been in place for over 20 years. Most schools serve as a board member for a particular district, policy is confirmed, the assumption is that these have SBDM councils in place. At most schools, when the member actually resides in another are much more likely to be mistakes rather the SBDM council consists of the principal, three district. OEA also receives complaints regarding than an act of willfulness conduct or a crime. teachers and two parents of children who attend both direct and indirect financial conflicts, which Simple errors in judgement are often committed the school. Frequently, complaints regard the are prohibited by KRS 161:80. If substantiated, without any ill will, thought, or intent to violate election of parent/teacher representatives. Parent OEA will make a referral to the OAG’s office. the law, statute, or policy. For that reason, representatives are elected either by the Parent- Mr. Wickersham state that less common OEA’s recommendations and resolutions made Teacher Organization (PTO) or by the largest are complaints concerning surplus property. with districts are very much structured to be group that has been selected for the purpose of This is a very difficult issue in a local district rehabilitative and not punitive. OEA partners conducting that election. Teachers are elected by for a couple of reasons. In rural communities, with EPSB, KSBA, and KDE to provide training the majority of the teachers. The statute provides there are school buildings that were once used to allow the district to get back on track in terms limited guidance on who conducts the teacher but are now abandoned. Although many times

28 2016 Interim LEGISLATIVE RECORD the community has strong feelings about the Texas, Virginia and West Virginia. Excluded activity is like. There is no direct state funding structures, the schools no longer serve an from the compendium were neighboring or to support that requirement. KDE has used grant educational purpose which are beneficial to the contiguous states of Illinois, Indiana, Missouri funding to attempt to provide guidance and district’s current needs. The obligation of the and Ohio. assistance to districts. board in that situation is to declare the structure Regarding demographics based on 2013 Mr. Wickersham stated that one of the as surplus property, and then dispose of it. Due figures, Kentucky wasth 12 highest nationally difficulties encountered in the study was that to the expense of maintenance and insurance, in student poverty. Median family income in the data for physical activity is not reported in OEA encourages the district to take action Kentucky was among the lowest. Kentucky had a consistent way that allows the aggregation through surplus property. Even though it may a lower percentage of minorities in the student of statewide figures, so a great deal of this be difficult from a political perspective, it is population than the national average. information is district by district. The research believed those monies can better be spent on the In terms of student services, Kentucky had staff was able to determine that nearly all K-5 modern incarnation of the schools in the district. a significantly lower figure of about 3 percent of schools provide recess. Two two-thirds of the Mr. Wickersham state that some complaints students learning the English language compared schools provided 20 minutes or more every allege that boards are failing to properly to a national figure of approximately 9 percent. day. It is also the case that most school’s used exercise financial oversight, do not review and Kentucky has approximately 50 percent of classroom-based physical activity in addition to approve expenditures, and do not have adequate the school population on some form of lunch the allotted recess time. Educators tend to agree documentation regarding travel expenditures. subsidy. Kentucky also has about 14.2 percent that Kentucky has the right amount of physical Mr. Wickersham highlighted outside of students with disabilities, which is higher than activity, given the curricular demands that are activity funds as slight concern – often involving the nation average of 12.9 percent. placed upon the schools. One of the tensions that Booster Clubs. The KDE partners with OEA on The student-teacher ratio is approximately educators identified was the recognition that a the implementation and training of accounting 16:1, which is very close to the national average. healthier child is probably more likely to learn procedures known as “the Redbook”. KDE Kentucky has more total staff than the average, well and function effectively in a classroom, but provides assistance to insure that the training principally appearing to be made up of aides for due to the limited number of hours in the day, and guidance provided is responsive to issues student with disabilities and more administrative minutes that are spent exclusively on physical that are commonly seen in districts. staff. The administrative staff is made up of activity compete against the academic demands Mr. Wickersham listed other miscellaneous more assistant principals than is common, that are placed on those students, schools and complaints that arise less frequently: but also Kentucky has more Family Resource districts. incompatible/dual offices held by board and Services Directors. Mr. Wickersham said OEA made eight recommendations members, nepotism, boundary disputes that other states do not necessarily have these regarding physical activity to KDE and the involving the resident of students, certification positions. Therefore, caution must be used when General Assembly. In response to the report, of teachers, or teachers working in a district may discussing whether Kentucky has too many KDE has executed significant activity to address not be properly certified. administrators or “top-heavy” positions. some of these concerns. KDE continues to Mr. Wickersham gave an overview of the As of 2012, Kentucky was 34th in per pupil have a good partnership with OEA in carefully OEA research division functions governed by revenue, and 33rd in per pupil spending. In 2013, reviewing the recommendations and making the research agenda approved by EAARS. OEA the average teacher salary was 26th in the nation. legitimate and active responses. has three pending studies that will be presented On the National Assessment of Educational The Primer on Independent later in the year. Progress, Kentucky ranked 17th in grade 4 Schools and Districts Report Projects completed and presented over this reading, 15th in grade 8 reading, 28th in grade 4 This report reviews statutes that are relevant last year are: math, and 36th in grade 8 math. to independent school districts and includes The District Data Profiles for 2014 In terms of advanced placement exams, the history of independent school districts and Mr. Wickersham explained that contains Kentucky ranks 20th in nation in participation legislative changes over time. longitudinal data on each one of the districts and 25th in passing scores. Regarding 2013 Kentucky has a total of 53 independent that includes demographics, finance, staffing, graduation rates, Kentucky is ahead of the schools and districts that are defined by and school performance. The report covered the national average of 81 percent. Kentucky ranks boundaries that are set inside counties. These years 2011-2014. The information relayed is 10th nationally with 86 percent of students boundaries are essentially locked at this point extremely useful for legislators, general public, graduating. as a consequence to a law introduced in 1934. local school board members, and parents. Recess and Physical Education Generally speaking independent schools and While KDE’s School Report Card is a fantastic Report districts have fewer students in fewer schools. document and an appropriate alternative for OEA analyzed both the amounts and types They are permitted under KRS 160 to annex school districts that have neither the time or the of physical activity for the years 2014 in grades territory and also to merge with county districts. inclination to take a “deep dive” into that sort K-5, and described the views of educators in Independent schools have a greater percentage of information, this report gives more of an terms of physical activity. OEA also looked at of non-resident students than county schools. overview that captures a great deal of information federal and state requirements and analyzed the There are a total of approximately 27,000 non- in a very concise format. This report is provided effect that the different laws and regulations residents students in Kentucky in 2014. About every year and is available to everyone. have on this study. 5 percent of the revenue in independent school The Bi-Annual Compendium Kentucky is 7th in childhood obesity districts is from non-resident students. Support Mr. Wickersham indicated that this report for children between the ages of 10 and 17. Education Excellence in Kentucky (SEEK) compares Kentucky’s public education system to Kentucky does not have specific requirements monies follow these non-resident students to the indicators both national and selected peer states in place for a set amount or type of physical schools they are attending in these situations. data. Mr. Wickersham advised that because the education or recess. There are some general Kentucky has five independent school report uses the rankings is difficult to determine recommendations and governing law regarding districts that do not have a high school, nor how far apart Kentucky is from some of the physical activity. There is a requirement that is there a statutory guidance on what high other states. wellness policies be developed locally, and school those children must or may attend. Peer states for this comparison were that reports be provided which assess what the Independent school districts spend a bit more Alabama, Arkansas, Delaware, Florida, Georgia, physical activity environment is in a school and money – approximately $600 per student – than Louisiana, Maryland, Mississippi, North district. There must also be an adoption of tools county schools spend. They typically have less Carolina, Oklahoma, South Carolina, Tennessee, that measure on an annual basis what physical taxable property, largely based on geographical THE KENTUCKY GENERAL ASSEMBLY 29 boundaries, but the property is taxed at a fully trained and informed if they are to be held investigation can be acquired by making an open higher rate. In terms of student demographics accountable. records request. Although OEA is not subject to and student performance, there are very few Referring to a scenario discussed regarding open records statutes and the information is not distinctions between independent and county a principal being involved with elections of automatically released, the information can and districts. There is no real variation in special parents and teacher in the SBDM council, will be provided if requested. education, limited English proficiency, and Representative Graham expressed concern. Ms. In response to a question by Representative, migrate student counts between county and Timmell reported that although some allegations Mr. Wickersham confirmed Kentucky has independents school districts. have been substantiated, the violation has the 12th highest student poverty rate among Independent school districts are generally occurred in schools that do not have all states. Representative Kay relayed the disproportionately both the highest and the lowest an active PTO/PTA. Since the school may not importance of emphasizing to the committee performing schools. Based on 2014 figures, be aware of the steps to be taken, the school the information regarding our ranking, and achievement is a bit lower in the elementary and will proceed with managing the elections. In added that student poverty brings inherent middle school levels than in the county school response to Representative Graham’s question challenges which students without poverty districts, but achievement is somewhat higher regarding how elections should be conducted do not experience. Representative Kay also at the high-school level. However, that figure is if there is no active PTO/PTA, Ms. Timmell reminded the committee of the successes in the likely to be skewed by the fact that there are a advised the burden falls upon the principal to rankings, which provide testament to school few exceptionally high performing independent create a group of parents and direct the focus districts, administrators, and teachers who help school districts at the high school level. to that group to elect the representatives for students in poverty. Representative Kay thanked Responding to a question by Senator the council. Representative Graham expressed all Kentucky teachers for what they do on a daily Wilson, Mr. Wickersham stated he is unaware of concern that the principal may be able to basis. any state agency that has not adhered to KERA manipulate the outcome of the process by Representative Kay expressed appreciation regulations by attempting to exercise more choosing parents that would benefit his agenda. to Senator Wilson, Representative Graham, and authority than actually possessed to investigate a Ms. Timmell explained that the parents are not OEA for the resources and assets provided to the reported violation, rather than referring them to elected representatives; therefore, the principal educational community. OEA. Mr. Wickersham indicated the aggressive has followed the statute by appointing parents Representative Kay suggested that one of “outreach approach” with educational agencies to supervise the election. That group would then the goals of the subcommittee should be to raise ensures all agencies are cognizant of both disseminate the information to the other parents. the level of awareness in the General Assembly OEA’s investigative and research functions. Representative Belcher questioned whether regarding information, studies, and data that There appears to be no hesitation from a district training is monitored after a violation occurs, OEA distributes. Studies performed by OEA or state level in referring those cases to OEA. or if the investigation ceases without further in the past and studies that are currently being Mr. Wickersham attributes the success of the follow-up. Mr. Wickersham advised that proof done provide useful tools for legislators and outreach program to the professionalism of of training by a specific date is required as part educational partners. Representative Kay added the people in the agencies with whom they of the resolution, which is monitored internally. he would like to raise awareness and make the work closely and the willingness to keep the There is continued contact with the district if public and legislators aware that the information discussion open. The agencies do not want to the deadline is nearing or missed. The district provided in these reports is readily accessible have their work diminished by someone who is can request additional time if needed as this and can be used for the good of education in stepping outside of their scope. demonstrates a willingness to address the issue. Kentucky. In response to a question by Senator Wilson, There is, however, a set period of time in which There being no further business, Senator Mr. Wickersham said he will provide further corrective action must be taken, whether it is Wilson moved to adjourn, and the meeting was evaluation regarding the number of students training, revision of policy, or institution of adjourned at 11:10 a.m. allowed to attend independent schools, since the minutes. If a district refuses to administer the county district boundaries can change but the city training to an acceptable level, the matter will be boundaries are locked in by law. Senator Wilson referred to the KDE. asked if any district has solved this through In response to Representative Belcher’s merger or other means. Mr. Wickersham said inquiry as to whether OEA has the authority to there have been three mergers that have occurred investigate home schools that are not effective, over the last several years, but not specifically Mr. Wickersham replied that OEA has no control on the facts of which Senator Wilson spoke. over home schools since these are not public Representative Graham discussed school schools. deficits caused by the eroding tax base caused Representative Belcher then questioned by the construction of new buildings. These OEA’s role in tribunals, and whether they buildings displace residents who provided conduct an investigation if the teacher has done taxes to the school districts. Mr. Wickersham something inappropriate. Ms. Timmell stated agreed the topic should be studied to address the that OEA has no role in a local tribunal or in a impact of lost revenue affecting these schools. tribunal conducted by the state board or by KDE. Since many districts have limited ability to She added that it depends on when the complaint merge, Mr. Wickersham offered to conduct is received and on what level the complaint stands a study to determine what can be done to aid at the time. OEA has conducted investigations the districts who are losing tax dollars yearly, which ultimately went to a tribunal, but if there is thereby impacting their district’s budgets. a tribunal pending, OEA would not get involved. Mr. Wickersham will provide members of the In response to Representative Belcher’s question General Assembly with data for members who as to whether it is referred to a tribunal once have similar situations in their districts. OEA has conducted an investigation, Director Representative Graham said that board Timmell reported that the final report is sent members may not always follow open meeting to the person being investigating unless a and open records law. Representative Graham referral to another agency is made. However, suggested that all board members should be there is a policy in place whereby a copy of the

30 2016 Interim LEGISLATIVE RECORD LRC Publications Research Reports 420 Office of Education Accountability Recess And Physical Education (K-5) 419 Program Review and Investigations Quasi-Governmental Entities In The Kentucky Retirement Sys- tems 418 Program Review and Investigations State Procurement: Requests For Proposals, Competitive Exemp- tions, And Leaseback Agreements 417 Program Review and Investigations Kentucky State Fair Board 414 Program Review and Investigations Comparison Of Salaries Paid To State Executive Branch Supervi- sory And Nonsupervisory Employees And To School Administrators And Teachers 413 Office of Education Accountability Compendium Of State Education Rankings 2015 412 Office of Education Accountability Kentucky District Data Profiles School Year 2014 411 Program Review and Investigations Local Defined-Benefit Pension Plans In Kentucky 410 Office of Education Accountability A Look Inside Kentucky’s College And Career Readiness Data 409 Office of Education Accountability Education Revenue, Expenditures, And Staffing Over 10 Years 408 Office of Education Accountability Kentucky District Data Profiles School Year 2013 407 Office of Education Accountability Atlas Of K-12 Education Data School Year 2013 406 Program Review and Investigations The Kentucky Thoroughbred Breeding Industry And State Pro- grams That Assist The Equine Industry 405 Program Review and Investigations How School Construction Could Affect Employment In Kentucky 404 Program Review and Investigations Medicaid Management And Program Integrity: Update On Recommendations From Three Program Review Reports 403 Program Review and Investigations Transparency And Accountability Of Quasi-Governmental Entities (2011) 402 Office of Education Accountability Test Familiarity And Performance: Comparing Scores On Kentucky Core Content Tests And Unfamiliar Tests 401 Program Review and Investigations The Impact Of Industrial Revenue Bonds On Property Taxes And School Funding 400 Office of Education Accountability Compendium Of State Education Rankings 2013 399 Office of Education Accountability Kentucky School District Superintendent Employment And Con- tracts

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