2019

October

PUBLISHED BY LEGISLATIVE RESEARCH COMMISSION Volume 32, No. 7 LEGISLATURE.KY.GOV/LEGISLATION/PAGES/DEFAULT.ASPX Preliminary ’s growing hemp estimates suggest industry faces challenges General Fund by Rebecca Hanchett LRC Public Information surplus

FRANKFORT—Six years ago, the for FY 2020 Kentucky General Assembly created a framework for production of industrial hemp. by Rebecca Hanchett Now the state is a hemp production leader, LRC Public Information with around 26,000 acres planted this year alone. FRANKFORT—Preliminary estimates But the growth of hemp and hemp from a group of state economic forecasters processing in Kentucky under 2013 Senate Bill predicts that Kentucky will end this fiscal year 50 and the 2014 U.S. Farm Bill has presented with a General Fund revenue surplus of $26.7 what Kentucky Agriculture Commissioner million. Ryan Quarles calls “growing pains,” with The preliminary fiscal year 2020 forecast farmers and processors facing some Senate Majority Floor Leader , R-George- —based on projected revenue growth over uncertainty from both federal regulators and town, talks about hemp in Kentucky at the Oct. 7 meet- the state’s current official revenue estimate, financial lenders. ing of the Interim Joint Committee on Agriculture. issued in late 2017—adopted on Oct. 15 by the Although the federal government no Consensus Forecasting Group (CFG) reflects longer classifies hemp – a type of cannabis especially when it comes to any “consumable 0.8 percent projected General Fund growth by plant--as a controlled substance under federal end product” like CBD which is often the end of FY 2020. It also predicts 2.0 percent law, it still regulates the sale of cannabis consumed as an edible or in drops under the revenue growth in FY 2021 and 1.7 percent and cannabis-derived products such as the tongue. growth in FY 2022. increasingly popular CBD (or cannabidiol). Quarles said Kentucky has been in talks The CFG also adopted revenue estimates That has not changed according to the federal with the FDA about hemp’s potential as a yesterday for the state Road Fund which funds Food and Drug Administration, which stated food or other additive, but that uncertainties state transportation projects. Preliminary on its website in July that only one CBD remain. estimates suggest FY 2020 Road Fund revenues product (the epilepsy drug Epidiolex) had “We still like to remind all of our will exceed the current official estimate by $52.7 been approved by the FDA to date and that program participants … that this is still a crop million. marketing of any other CBD product for that has risks involved,” he told the Interim The CFG will meet later this year to therapeutic, health or food use is “currently Joint Committee on Agriculture on Oct. finalize the state’s FY 2020-2022 revenue illegal.” 7. “But the FDA is a very process-oriented estimates for both the General Fund and the Quarles said FDA oversight is the top Road Fund and issue official estimates in issue facing hemp growers and processors, Continued on page 3 December, giving the 2020 Kentucky General Continued on page 3 THE KENTUCKY GENERAL ASSEMBLY 1 New way to bet on the ponies pondered by Jim Hannah LRC Public Information State Sen. , FRANKFORT – A thoroughbred racing D-Louisville, think tank has asked Kentucky lawmakers to asks a consider allowing a new type of bet on horse questions about races. fixed-odds Fixed-odds wagering would allow track wagering on operators to be competitive against the expan- horse races sion of legalized sports betting in other states, during the Oct. said Patrick Cummings of the Thoroughbred 2 meeting of Idea Foundation of Lexington. He made the re- the Interim Joint marks during the Oct. 2 meeting of the Interim Committee Joint Committee on Licensing, Occupations on Licensing, Occupations and Administrative Regulations. and This new type of wager would allow bettors Administrative to compete against the house, or bet taker. Regulations. The house would set fixed odds on horses that bettors could choose to lock in with a wager. In general, sports betting on football, basketball and other sports are made under this model. Cummings, a former executive with the what other countries had legalized fixed-odds try as required from legal gambling operators. Hong Kong Jockey Club, said this would be a wagering on horse racing. Cummings said it Sen. Christian McDaniel, R-Taylor Mill, historic shift from pari-mutuel wagering now is legal in Australia, South Africa, England, asked where Churchill Downs and Keeneland offered across the horse racing industry. That’s a Ireland and likely many other European juris- stood on fixed-odds wagering on horse races. business model where bettors compete against dictions. “Churchill has not publicly commented on other bettors with the track removing a per- Cummings added that many American the matter that I’ve been able to assess,” Cum- centage of the pool, known as the takeout, be- track operators, including Keeneland, have busi- mings said. “I’ve certainly had conversations fore distributing the rest of the pool to winning ness arrangements with overseas bookmakers with Keeneland, and they certainly seem very players. The odds change as the pool fluctuates to offer fixed-odds wagering on American horse supportive of this concept – both from the mar- until the race begins. races to European bettors. He speculated that keting side and certainly the business side.” “This is clearly an opportunity to develop the market for fixed-odds betting by Europe- In response to another question from Mc- a complementary product for racing’s existing an customers on American races is about $1.4 Daniel, Cummings said Churchill and Keene- customers while introducing a modern form of billion. land were not members or financial supporters betting for new ones as well,” Cummings said In response to a question by Rep. Bud- of his organization. while explaining why pari-mutuel betting isn’t dy Wheatley, D-Covington, Cummings said “Everything is privately funded by indi- being embraced by younger generations. “This New Jersey is the only state to offer fixed-odds viduals,” Cummings said of the source of his opportunity should be embraced with Kentucky wagering on horse racing. He added that legal group’s money. leading the way.” alternatives to fixed-odd betting in racing is Rep. Jerry T. Miller, R-Louisville, asked Cummings said legislators should consider incredibly limited. whether Kentucky voters would have to approve adding a provision to allow fixed-odds wagering “Outside of the few days when Churchill a constitutional amendment to allow fixed- on horse racing to any bill that would legalize Downs offers their future wager via a limited odds wagering on horse racing. Koenig said he sports betting. Currently, Sen. Julian M. Carroll, pari-mutuel pool ... American customers cannot didn’t think a constitutional amendment would D-Frankfort, has prefiled a sports betting bill. place a bet on the Derby until Derby or Oaks be necessary but added that he hoped to have Senate Majority Floor Leader Damon day and they won’t know their potential return a nationally recognized legal expert on this Thayer, R-Georgetown, asked committee Co- until the betting is stopped and the race is al- type of betting testify before the committee in chair Rep. Adams Koenig, R-Erlanger, to con- ready underway,” Cummings said December. sider refiling a sports betting bill he introduced He said the biggest threat to track operators Carroll, a member of the committee, asked last session with the addition of the fixed-odds is offshore entities that offer fixed-odds wager- about the taxing implications of the propos- wagering for horses. ing on horse races, including the Kentucky Der- al. Cummings said he envisioned the take, or “I think this is an idea whose time has by. Cummings said one of the biggest operators amount retained by the bet taker, to be 10 per- come,” Thayer said of fixed-odds wagering on catering to American horse racing fans is based cent or 11 percent for brick and mortar sports horse racing. “I’m supportive of it. And I would in Costa Rica and licensed in Curacao. He said bets and 14 percent for online operators. Thayer like to see Kentucky lead the way on this.” these types of operators do not return any por- Sen. Reginald Thomas, D-Lexington, asked tion of their profits to the thoroughbred indus- Continued on page 3

2 2019 Interim LEGISLATIVE RECORD from page 2 from page 1 Betting, purses or horsemen. Budget, Sen. Denise Harper Angel, D-Louisville, added that would be in line with previous sports expressed her support of the proposal. Assembly the information it needs to consider wagering legislation considered in Kentucky. “I think this is a great idea,” she said. “I’m budget legislation for 2020-2022. Cummings said any of those figures would the proud senator that represents Churchill One factor influencing current national be a higher take than traditional sports bets, Downs, doubly proud because my father was an economic forecasts is the ongoing trade conflict which are around 5 percent. He said the higher owner and trainer there for 40-plus years before with China, State Budget official Dr. J. Michael take was necessary for horse racing because that moving on to Santa Anita. We have to stay Jones told the CFG on Tuesday. He said it is sport, unlike football or basketball, is funded ahead of this.” assumed in the economic forecast released by through wagering. Thayer said he was happy the proposal the global firm IHS Markit—which supplies House Majority Whip Chad McCoy, received a largely receptive response from com- economic information to the CFG—that “all R-Bardstown, asked how the proposal would mittee members. tariffs will be going into effect in the continuing help increase purses, or the prize money in "There are a lot of really good questions trade war with China,” including expanded horse races. Cummings said the legislation about taxation, and horsemen and purses,” tariffs on currently taxed goods and products, would have to be carefully crafted to protect the Thayer said. “We have to be able to tax it at a and a phase-in of goods not previously covered interests of the industry, tracks and horsemen. level that the customer will want to wager ... and by tariffs, with the next round of tariffs levied He emphasized that no percentage of wagers the operator will invest to attract people cur- on Dec. 15. taken by offshore operations benefit American rently making these wagers illegally."

Rep. Joe Graviss, D-Versailles, said he is The preliminary fiscal year aware of some cash flow and payment concerns Hemp, from Kentuckians in the hemp industry. He 2020 forecast adopted on from page 1 asked Quarles how those concerns are being addressed, and Quarles emphasized a need for Oct. 15 by the Consensus more access to financial lending. Forecasting Group (CFG) organization, as you know, and so we want to make sure that they don’t regulate this reflects 0.8 percent projected business to death, that we educate them on the Nearly 1,000 Kentucky growers nutraceutical health care/health supplement had a hand in this year’s crop – General Fund growth by the side of the crop as well as other areas which are a record since the state’s hemp end of FY 2020. currently prohibited by law.” Financial lending is another challenge program began 2014. for the hemp industry, said Quarles, who said a lot of banks are hesitant to provide loans to “The inability of our legal hemp companies Jones said that IHS Markit is also processors and growers. That has improved to go into a bank and have access to credit (is an forecasting a 35-percent chance that there will since hemp became a legal crop in 2018, but issue),” he said. “It’s disrupting business here in be a national recession beginning in the first he said lenders—especially national banking Kentucky.” quarter of FY 2021 and lasting three to four institutions—are holding back. Senate Majority Floor Leader Damon quarters. The firm is predicting a short-lived “We’re just trying to figure out what issues Thayer, R-Georgetown, asked Quarles if any recession, said Jones. they have,” he told lawmakers. “A lot of these legislative changes regarding hemp are needed “Nothing like the malaise that we saw 2008 issues will have to be resolved in Washington, at the state level. He mentioned the possibility into 2010, the Great Recession, if you will,” he D.C.” of a special legislative meeting on hemp said. A lack of crop insurance options is another before the start of the 2020 session to iron out Another factor considered by the CFG is concern for growers, said Quarles. A handful any proposals before budget talks consume a 1.1 percent increase in FY 2020 first-quarter of the state’s hemp growers elected for Whole lawmakers’ time in February and March. General Fund revenues. Governor’s Office of Farm crop insurance coverage this year, he said, “There is a lot of bipartisan support Economic Analysis official Greg Harkenrider but he said he didn’t expect many farmers to use for hemp, and we want to make sure we are said the 1.1 percent increase was the lowest that product in 2020. prepared to send a message to growers and growth in first-quarter General Fund receipts Quarles said it could take three or four potential growers that we in Kentucky want to since FY 2017. years for the hemp industry to produce the stay ahead of the curve,” said Thayer. State law requires the Office of State Budget data that insurers need to provide the type of Nearly 1,000 Kentucky growers had a Director to certify and present the General coverage now available for corn and soybean hand in this year’s crop – a record for hemp Assembly with the CFG’s official revenue crops. production since Kentucky began licensing estimates for the General Fund and Road Fund “They need production data. We simply hemp growers and handlers under the state’s for the current and next two fiscal years “on don’t have the data nationwide to say ‘this is Industrial Hemp Research Pilot Program in or before the fifteenth legislative day” in even- what an average yield is,’” he told the committee. 2014. numbered years.

THE KENTUCKY GENERAL ASSEMBLY 3 2020 Regular Session Calendar

4 2019 Interim LEGISLATIVE RECORD 2019 General Senate Assembly

Julie Raque Adams (36) (14) Dan “Malano” Seum (38) 213 S Lyndon Lane 344 N Spalding 1107 Holly Ave Louisville, KY 40222 Lebanon, KY 40033 Fairdale, KY 40118 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-692-6945 (Home) 502-749-2859 (28) (20) Brandon Smith (30) 3250 McClure Road 6102 Cropper Rd 124 Craig Street Winchester, KY 40391 Shelbyville, KY 40065 Hazard, KY 41702 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (22) Stan Humphries (1) (Home) 606-436-4526 409 W Maple St 763 Sinking Fork Rd (Home FAX) 606-436-4526 Nicholasville, KY 40356 Cadiz, KY 42211 II (25) (LRC) 502-564-8100 (LRC) 502-564-8100 207 Main St (LRC FAX) 502-564-2466 (Home) 270-522-0195 Manchester, KY 40962 (Home) 859-885-0606 (12) (LRC) 502-564-8100 (Home FAX) 859-885-0606 3274 Gondola Dr (Home) 606-598-8575 (34) Lexington, KY 40513 (Work) 606-598-2322 PO Box 100 (LRC) 502-564-8100 (Work FAX) 606-598-2357 Berea, KY 40403 (Home) 859-223-3274 Damon Thayer (17) (LRC) 502-564-8100 Christian McDaniel (23) 702 Capital Ave. Danny Carroll (2) PO Box 15231 Annex Room 242 220 Cimarron Way Latonia, KY 41015 Frankfort, KY 40601 Paducah, KY 42001 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 Morgan McGarvey (19) (Home) 270-703-8025 2250 Winston Ave Reginald Thomas (13) Julian M. Carroll (7) Louisville, KY 40205 702 Capital Ave. 702 Capital Ave (LRC) 502-564-8100 Annex Room 255 Annex Room 255 (Home) 502-589-2780 Frankfort, KY 40601 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 Stephen Meredith (5) (LRC FAX) 502-564-0777 1424 Byrtle Grove Rd (29) (8) Leitchfield, KY 42754 849 Crestwood Dr 702 Capital Ave (LRC) 502-564-8100 Prestonsburg, KY 41653 Annex Room 255 (LRC) 502-564-8100 Frankfort, KY 40601 (4) (Home) 606-889-6568 (LRC) 502-564-8100 702 Capital Avenue Robin L. Webb (18) Annex Room 255 102 S Hord St Perry B. Clark (37) Frankfort, KY 40601 Grayson, KY 41143 5716 New Cut Rd (LRC/Home) 502-564-8100 (LRC) 502-564-8100 Louisville, KY 40214 (Home) 606-474-5380 (LRC) 502-564-8100 Gerald A. Neal (33) Stephen West (27) 462 S 4th St 202 Vimont Ln C.B. Embry Jr. (6) Meidinger Twr, Ste. 1250 Paris, KY 40361 PO Box 1215 Louisville, KY 40202 (LRC) 502-564-8100 Morgantown, KY 42261 (LRC) 502-564-8100 (3) (LRC) 502-564-8100 (Home) 502-776-1222 700 South Main Street (Home) 270-526-6237 (Work) 502-584-8500 PO Box 1107 (Work FAX) 502-584-1119 Hopkinsville, KY 42241 (15) (10) (LRC) 502-564-8100 702 Capital Ave 731 Thomas Rd (Work) 270-885-7671 Annex Room 209 Elizabethtown, KY 42701 Frankfort, KY 40601 (LRC) 502-564-8100 Phillip Wheeler (31) (LRC) 502-564-8100 (Home) 270-765-4565 702 Capital Ave. David P. Givens (9) Albert Robinson (21) Annex Room 255 PO Box 12 1249 S Main St Frankfort, KY 40601 Greensburg, KY 42743 London, KY 40741 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 Denise Harper Angel (35) (11) Mike Wilson (32) 2521 Ransdell Ave PO Box 991 702 Capital Ave. Louisville, KY 40204 Union, KY 41091 Annex Room 242 (LRC) 502-564-8100 (LRC) 502-564-8100 Frankfort, KY 40601 (Home) 502-452-9130 (24) (LRC) 502-564-8100 Ernie Harris (26) 702 Capital Ave Max Wise (16) PO Box 1073 Annex Room 209 702 Capital Ave. Crestwood, KY 40014 Frankfort, KY 40601 Annex Room 229 (LRC) 502-564-8100 (LRC) 502-564-8100 Frankfort, KY 40601 (Home) 502-241-8307 (LRC) 502-564-8100 * Members of the Kentucky General Assembly may also be contacted by calling 502-564-8100.

THE KENTUCKY GENERAL ASSEMBLY 5 2019 Kentucky General Assembly House

Rocky Adkins (99) (30) (46) PO Box 688 4012 Lambert Ave 8406 Cloverport Dr Sandy Hook, KY 41171 Louisville, KY 40218 Louisville, KY 40228 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-738-4242 (Home) 502-454-4002 (Work) 606-928-0407 McKenzie Cantrell (38) Jim Glenn (13) (Work FAX) 606-929-5913 702 Capital Avenue 702 Capital Ave. (4) Annex Room 424A Annex Room 462A 2359 Brown Mines Rd Frankfort, KY 40601 Frankfort, KY 40601 Marion, KY 42064 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 John Bam Carney (51) (Home) 270-686-8760 (Home) 270-988-4171 PO Box 4064 Campbellsville, KY 42719 (LRC) 502-564-8100 (89) 2163 E Highway 30 Danny Bentley (98) (Home) 270-403-7980 East Bernstadt, KY 40729 702 Capital Avenue (LRC) 502-564-8100 Annex Room 367C (37) (LRC FAX) 502-564-5640 Frankfort KY 40601 PO Box 509 (Home) 606-305-1321 (LRC) 502-564-8100 Fairdale, KY 40118 Jr. (12) (LRC) 502-564-8100 714 N Broadway B2 John Blanton (92) (Work) 502-439-6175 Providence, KY 42450 702 Capital Avenue (9) (LRC) 502-564-8100 Annex Room 329H 491 E Nashville St (Home) 270-667-7327 Frankfort, KY 40601 Pembroke, KY 42266 (Work FAX) 270-667-5111 (LRC) 502-564-8100 (LRC) 502-564-8100 Derrick Graham (57) (Home) 270-475-9503 157 Bellemeade Dr (32) Jim DuPlessis (25) Frankfort, KY 40601 702 Capital Ave. 702 Capital Ave (LRC) 502-564-8100 Annex Room 451E Annex Room 376 (Home) 502-223-1769 Frankfort, KY 40601 Frankfort, KY 40601 Joe Graviss (56) (LRC) 502-564-8100 (LRC) 502-564-8100 702 Capital Ave. Charles Booker (43) Larry Elkins (5) Annex Room 429J 702 Capital Ave. 702 Capital Ave. Frankfort, KY 40601 Annex Room 424C Annex Room 405D (LRC) 502-564-8100 Frankfort, KY 40601 Frankfort, KY 40601 (Work) 859-433-4392 (LRC) 502-564-8100 (LRC) 502-564-8100 David Hale (74) 11 Hales Ln Adam Bowling (87) Daniel Elliott (54) Wellington, KY 40387 PO Box 2928 PO Box 2082 (LRC) 502-564-8100 Middlesboro, KY 40965 Danville, KY 40423 (Home) 606-768-3474 (LRC) 502-564-8100 (LRC) 502-564-8100 Chris Harris (93) (Home) 859-332-4204 719 Forest Hills Rd Joseph M. Fischer (68) Forest Hills, KY 41527 Terri Branham Clark (100) 126 Dixie Place (LRC) 502-564-8100 702 Capital Ave. Ft Thomas, KY 41075 (Home) 606-237-0055 Annex Room 429B (LRC) 502-564-8100 Mark Hart (78) Frankfort, KY 40601 (Home) 859-781-6965 202 W 4th St (LRC) 502-564-8100 (Work) 513-794-6442 Falmouth, KY 41040 (Home) 606-232-0357 (75) (LRC) 502-564-8100 121 Arcadia Park (Home) 859-654-4278 Kevin D. Bratcher (29) Lexington, KY 40503 (94) 10215 Landwood Dr (LRC) 502-564-8100 20 Ohio St Louisville, KY 40291 (Home) 859-221-3107 Whitesburg, KY 41858 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-231-3311 Deanna Frazier (81) (2) 702 Capital Ave. 438 Millers Chapel Rd R. Travis Brenda (71) Annex Room 405C Mayfield, KY 42066 702 Capital Ave. Frankfort, KY 40601 (LRC) 502-564-8100 Annex Room 316E (LRC) 502-564-8100 (Home) 270-705-7539 Frankfort, KY 40601 (Work) 270-247-2210 (LRC) 502-564-8100 (6) (Work FAX) 270-247-2304 702 Capital Ave. (3) Annex Room 413E Kathy Hinkle (96) 375 Stonegate Drive Frankfort, KY 40601 702 Capital Ave. Paducah, KY 42003 (LRC) 502-564-8100 Annex Room 424B (LRC) 502-564-8100 Frankfort, KY 40601 (Home) 270-331-0648 (84) (LRC) 502-564-8100 (Home FAX) 270-443-4526 277 Right Branch Spencer (83) Chavies, KY 41727 PO Box 985 George Brown Jr. (77) (LRC) 502-564-8100 Jamestown, KY 42629 424 E Fourth Street (Home) 606-233-5660 (LRC) 502-564-8100 Lexington, KY 40508 (Home) 270-343-2264 (LRC) 502-564-8100 (Work) 270-343-5588 (Home) 859-312-7513

6 2019 Interim LEGISLATIVE RECORD 2019 Kentucky General Assembly

Cluster Howard (91) C. Ed Massey (66) (16) 476 Kings Ridge 702 Capital Ave. PO Box 397 Jackson, KY 41339 Annex Room 352B Elkton, KY 42220 (LRC) 502-564-8100 Frankfort, KY 40601 (LRC) 502-564-8100 (Home) 606-568-7660 (LRC) 502-564-8100 (Home) 270-265-3163 (Home FAX) 270-265-3164 Regina Huff (82) Bobby McCool (97) (62) 179 Mountain St 702 Capital Ave. 702 Capital Ave Williamsburg, KY 40769- Annex Room 413C Annex Room 351 (LRC) 502-564-8100 Frankfort, KY 40601 Frankfort, KY 40601 (Home) 606-549-3439 (LRC) 502-564-8100 (LRC) 502-564-8100

Thomas Huff (49) Chad McCoy (50) Melinda Gibbons Prunty (15) PO Box 1331 702 Capital Avenue PO Box 411 Shepherdsville, KY 41065 Annex Room 370 Greenville, KY 42345 (LRC) 502-564-8100 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 Joni L. Jenkins (44) (80) (47) PO Box 273 2010 O’Brien Ct PO Box 121 Bedford, KY 40006 Shively, KY 40216 Stanford, KY 40484 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-255-3392 (Home) 502-447-4324 (42) (Work) 502-255-3286 Dennis Keene (67) PO Box 757 (Work FAX) 502-255-9911 1040 Johns Hill Rd Louisville, KY 40201 Wilder, KY 41076 (LRC) 502-564-8100 (31) (LRC) 502-564-8100 (Work) 502-741-7464 702 Capital Ave. (Home) 859-441-5894 Michael Meredith (19) Annex Room 451B (55) PO Box 292 Frankfort, KY 40601 250 Bright Leaf Dr Brownsville, KY 42210 (LRC) 502-564-8100 Harrodsburg, KY 40330 (LRC) 502-564-8100 (LRC) 502-564-8100 (Work) 270-597-6049 (24) (Home) 859-734-2173 Russ A. Meyer (39) 113 N Walters Ave Matthew Koch (72) 106 Lone Oak Drive P.O. Box 8 702 Capital Ave. Nicholasville, KY 40356 Hodgenville, KY 42748 Annex Room 329E (LRC) 502-564-8100 (LRC) 502-564-8100 Frankfort, KY 40601 Suzanne Miles (7) (Work) 270-358-0868 (LRC) 502-564-8100 PO Box 21592 (23) (69) Owensboro, KY 42304 189 Blue Sky Dr 170 Herrington Ct #12 (LRC) 502-564-8100 Glasgow, KY 42141 Erlanger, KY 41018 (LRC) 502-564-8100 (LRC) 502-564-8100 Charles Miller (28) (Home) 270-646-6821 (Home) 859-653-5312 3608 Gateview Cir Rob Rothenburger (58) Louisville, KY 40272 811 Stapleton Rd (40) (LRC) 502-564-8100 Shelbyville, KY 40065 702 Capital Ave. (Home) 502-937-7788 (LRC) 502-564-8100 Annex Room 429E (Home) 502-633-5832 Frankfort, KY 40601 Jerry T. Miller (36) (LRC) 502-564-8100 PO Box 36 (21) Eastwood, KY 40018 PO Box 336 (45) (LRC) 502-564-8100 Tompkinsville, KY 42167 PO Box 2090 (LRC) 502-564-8100 Lexington, KY 40588 (20) (LRC) 502-564-8100 702 Capital Ave. (1) (Home) 859-252-2202 Annex Room 429A 350 Peppers Mill Drive (Home FAX) 859-259-2927 Frankfort, KY 40601 Paducah, KY 42001 Derek Lewis (90) (LRC) 502-564-8100 (LRC) 502-564-8100 702 Capital Ave. (Work) 270-462-3156 Annex Room 413D (64) Frankfort, KY 40601 PO Box 143 (60) (LRC) 502-564-8100 Independence, KY 41051 12094 Jockey Club Dr (Home) 606-594-0061 (LRC) 502-564-8100 Union, KY 41091 (Home FAX) 606-672-5526 (LRC) 502-564-8100 (33) (Home) 859-371-8840 (14) 702 Capital Avenue (Home FAX) 859-371-4060 PO Box 454 Annex Room 416C Dean Schamore (10) Hartford, KY 42347 Frankfort, KY 40601 120 Ball Park Rd (LRC) 502-564-8100 (LRC) 502-564-8100 Hardinsburg, KY 40143 (LRC) 502-564-8100 (61) (59) 702 Capital Ave. PO Box 8 (41) Annex Room 413G Prospect, KY 40059 702 Capital Ave Frankfort, KY 40601 (LRC) 502-564-8100 Annex Room 432C (LRC) 502-564-8100 (Work) 502-645-2186 Frankfort, KY 40601 (34) (LRC) 502-564-8100 2007 Tyler Ln (76) Louisville, KY 40205 10 Deepwood Dr (LRC) 502-564-8100 Lexington, KY 40505 (Home) 502-451-5032 (LRC) 502-564-8100 (Home) 859-299-2597

THE KENTUCKY GENERAL ASSEMBLY 7

2019 Kentucky LRC General Assembly Publications

Steve Sheldon (17) (52) 2020 Price List 702 Capital Ave PO Box 969 Annex Room 351B Monticello, KY 42633 Daily Record Pick up: $165 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-340-8490 (26) Daily Record Mailed: $165 (plus PO Box 6605 John Sims Jr (70) postage) 3177 Maysville Rd Shepherdsville, KY 40165 Flemingsburg, KY 41041 (LRC) 502-564-8100 Friday Record Mailed: $38.50 (plus (LRC) 502-564-8100 (Home) 502-543-8209 (Home) 606-748-1839 postage) (79) PO Box 22778 (48) Individual Record Pick up: $2.75 702 Capital Ave Lexington, KY 40522 Annex Room 432A (LRC) 502-564-8100 Individual Record Mailed: $2.75 (plus (Work) 859-266-7581 Frankfort, KY 40601 postage) (LRC) 502-564-8100 Buddy Wheatley (65) 702 Capital Avenue Cherlynn Stevenson (88) Annex Room 462A 702 Capital Ave Frankfort, KY 40601 Bills Annex Room 424G (LRC) 502-564-8100 Frankfort, KY 40601 (11) Complete Set of Bills and Resolutions (LRC) 502-564-8100 702 Capital Avenue III (86) Annex Room 451A (Pick up): $630 545 KY 223 Frankfort, KY 40601 Flat Lick, KY 40935 (LRC) 502-564-8100 Individual Bills Per Page: $.05 (LRC) 502-564-8100 (Work) 270-831-1087 (Home) 606-542-5210 (35) Amendments Per Page: $.05 (22) 702 Capital Avenue 1481 Jefferson School Road Annex Room 424D Roll Call Votes: $.15 Per Page Scottsville, KY 42164 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-622-5054 (Home) 502-599-7289 Publications Les Yates (73) Ashley Tackett Laferty (95) 702 Capital Avenue 1-10 copies: Free to general public; 702 Capital Ave Annex Room 351C Annex Room 432F Frankfort, KY 40601 larger numbers of free copies are Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 available to schools and state agencies (27) 702 Capital Ave (Copies over preapproved limits require Annex Room 351D * Members of the Kentucky General Assembly may also be Frankfort, KY 40601 contacted by calling 502-564-8100. agency approval) (LRC) 502-564-8100 Walker Thomas (8) 2620 Cox Mill Road Hopkinsville, KY 42240 Administrative Regulations (LRC) 502-564-8100 (Home) 270-889-8091 Administrative Register (monthly): (Home FAX) 270-885-5335 $120.00 James Tipton (53) 8151 Little Mount Rd Taylorsville, KY 40071 (LRC) 502-564-8100 Acts of the General Assembly (2018) Regular Session: $80.00 (2 Volumes) Tommy Turner (85) 175 Clifty Grove Church Special Sessions: Priced after printing Somerset, KY 42501 (LRC) 502-564-8100 (Home) 606-274-5175 Journals House and Senate Complete Set, House Set, Senate Set: Priced after printing

(All prices subject to 6% Kentucky sales tax within Kentucky, and subject to change)

8 2019 Interim LEGISLATIVE RECORD Committee Meetings

LEGISLATIVE RESEARCH Economic Development and Workforce Index Investment during its meeting on June 6, 2019. A COMMISSION Administrative Regulation Review Subcommittee, Minutes of the 563rd Meeting Committee review of the administrative 53, 86, 118 September 18, 2019 regulations by the Interim Joint Committee on Agriculture, 39 Call to Order and Roll Call Health, Welfare, and Family Services during its Alzheimer’s and Dementia Workforce Assessment Task Force, 94, 111 The 563rd meeting of the Legislative meetings on July 19, August 19, and September Appropriations and Revenue, 18, 19, 32, 39, 49, 50 Research Commission was held on Wednesday, 9, 2019. Area Development District Working Group, 101 September 18, 2019, at 1:30 PM, in Room 125 Committee review of Executive B of the Capitol Annex. Senator Robert Stivers Reorganization Order 2019-286 by the Interim Banking and Insurance, 25, 71 II, Chair, called the meeting to order, and the Joint Committee on Health, Welfare, and Family C secretary called the roll. Services during its meeting on June 3, 2019. Capital Projects and Bond Oversight, 100 Present were: Committee review of Executive E Members: Senator Robert Stivers II, Co- Reorganization Order 2019-0466 by the Interim Economic Development and Workforce Invest- Chair; Representative David Osborne, Co-Chair; ment, 27, 64 Joint Committee on Health, Welfare, and Family Education, 42, 80 Senators , David P. Givens, Services during its meeting on August 19, 2019. Education Assessment and Accountability Review Dennis Parrett, Damon Thayer, Johnny Ray Committee review of the FY 2020 Social Subcommittee, 109 Turner, and Mike Wilson; Representatives Rocky Services Block Grant Application by the Interim Electronic Recording of Official Documents by County Clerks, Task Force on: 24, 51 Adkins, John Bam Carney, Derrick Graham, Joni Joint Committee on Health, Welfare, and Family L. Jenkins, David Meade, and Suzanne Miles. G Services during its meeting on August 19, 2019. Government Contract Review Committee, 96, 114 Guests: Committee review of the FY 2020-2021 LRC Staff: Jay Hartz and Christy Glass. H Community Services Block Grant Application Health, Welfare, and Family Services, 12 Senator Stivers called the meeting to by the Interim Joint Committee on Health, order and welcomed Jay Hartz as LRC’s new J Welfare, and Family Services during its meeting Judiciary, 46, 60 director. Senator Stivers asked everyone to be on August 19, 2019. in prayer for David Jones’ family. Mr. Jones K Committee review of the FY 2020-21 Kentucky Career and Technical Education Task was the founder of Humana, and passed away Unified Block Grant Application by the Interim Force, 84, 117 on September 17. Senator Stivers then called Joint Committee on Health, Welfare, and Family L for a motion to approve the minutes of the May Legislative Research Commission, 9 Services during its meeting on September 9, Licensing, Occupations, and Administrative Reg- 15, 2019, meeting, accept as indicated items A. 2019. ulations, 16, 66 through K. under Staff and Committee Reports, Committee review of the administrative Local Government,30, 63 refer prefiled bills as indicated and approve items regulations by the Interim Joint Committee on M B. through DD. under New Business, and accept Natural Resources and Energy during its meeting Medicaid Oversight and Advisory Committee, 123 and refer as indicated items 1. through 33. under Mileage-Based Transportation Funding Task Force, on September 10, 2019. 19, 70 Communications. N A motion was made by Senator Raque NEW BUSINESS Natural Resources and Energy, 41, 51 Adams and seconded by Senator Thayer. Referral of prefiled bills to the following P There being no further discussion, a motion committees: BR 258 (An act relating to hunting 2020 Prefiled Bills, 126 having been made, a roll call vote was taken, and Program Review and Investigations Committee, coyotes.) to Agriculture; BR 32 (An act relating 106 the motion approved unanimously. The following to the taxation of tobacco products.), BR 36 (An Public Assistance Reform Task Force, 104 items were approved, accepted or referred: act relating to an increase in tax rates.), BR 107 Public Water and Wastewater System Infrastruc- STAFF AND COMMITTEE REPORTS ture Task Force, 102 (An act relating to an exemption of feminine S Information requests since May 2019. hygiene products from sales and use taxation.), State Government, 34, 75 Committee Activity Reports since May BR 117 (An act relating to the taxation of T 2019. pension income.), BR 127 (An act proposing an Tobacco Settlement Agreement Fund Oversight Report of the Administrative Regulation amendment to Section 170 of the Constitution of Committee, 83, 122 Review Subcommittee meetings on May 14, June Tourism, Small Business, and Information Tech- Kentucky relating to exemptions from taxation.), nology, 45, 74 11, July 10, and August 9, 2019. BR 215 (An act relating to the taxation of Transportation, 22 Committee review of the administrative pension income, making an appropriation V regulations by the Interim Joint Committee on Veterans, Military Affairs, and Public Protection, 79 therefor, and declaring an emergency.), BR 247 THE KENTUCKY GENERAL ASSEMBLY 9 (An act relating to property taxes for veteran against a person.), BR 233 (An act relating to From Senate President Robert Stivers and service organizations.), BR 339 (An act relating cosmetic services.) and BR 236 (An act relating House Speaker David Osborne: Memorandum to the rural hospital tax credit.), and BR 355 to sports wagering and making an appropriation approving appointments and authorization of (An act relating to tax credits for airport noise therefor.) to Licensing, Occupations, and the 2019 Area Development District Working mitigation.) to Appropriations and Revenue; Administrative Regulations; BR 45 (An act Group. BR 105 (An act relating to prescription insulin.), relating to fire districts.) and BR 206 (An act From Senate President Robert Stivers and BR 180 (An act relating to mandatory benefits relating to solid waste.) to Local Government; House Speaker David Osborne: Memorandum for health benefit plans.), and BR 275 (An act BR 118 (An act relating to solid waste), BR 204 approving appointments and authorization of relating to Medicaid payments.) to Banking (An act relating to key infrastructure asset), and the 2019 Public Water and Wastewater System and Insurance; BR 72 (An act relating to the BR 270 (An act relating to mining permits and Infrastructure Task Force. recognition and registration of professional making an appropriation therefor.) to Natural From Senate President Robert Stivers and employer organizations.), BR 113 (An act Resources and Energy; BR 160 (An act relating House Speaker David Osborne: Memorandum relating to call centers.), BR 132 (An act relating to state symbols.), BR 179 (An act relating to approving appointments and authorization of to wages.), BR 237 (An act relating to wages.), the promotion of living donor human organ and the 2019 Alzheimer’s and Dementia Workforce BR 263 (An act relating to wage theft.), and BR bone marrow donation.), BR 181 (An act relating Assessment Task Force. 343 (An act relating to criminal histories of job to time.), BR 257 (An act relating to employees From Senate President Robert Stivers and applicants.) to Economic Development and of quasi-governmental agencies.), and BR 356 House Speaker David Osborne: Memorandum Workforce Investment; BR 27 (An act relating to (An act relating to the sale or transfer of historic approving appointments and authorization of historical instruction.), BR 31 (An act relating to places.) to State Government; BR 95 (An act the 2019 Mileage Based Transportation Funding teachers and making an appropriation therefor.), relating to motor vehicle titles.), BR 166 (An act Task Force. BR 61 (An act relating to public charter schools), relating to operating a motor vehicle.), and BR From Senate President Robert Stivers, BR 82 (An act relating to tuition benefits and 285 (A resolution urging Congress to require House Speaker David Osborne, and State Budget making an appropriation therefor.), BR 120 car manufacturers to improve safety devices on Director John Chilton: Memorandum approving (An act relating to corporal punishment in automobiles for the protection of children left in the membership of the Consensus Forecasting schools.), BR 126 (An act relating to bullying.), cars) to Transportation; BR 85 (An act relating Group. BR 136 (An act relating to school bus safety and to the Honor and Remember flag) and BR 125 From Senate President Robert Stivers and making an appropriation therefor.), BR 203 (An (An act relating to the Bowling Green Veterans House Speaker David Osborne: Memorandum act relating to arts education.), BR 334 (An act Center, making an appropriation therefor, and approving membership adjustment to the 2019 relating to full-day kindergarten.), and BR 357 declaring an emergency.) to Veterans, Military Public Assistance Reform Task Force. (An act relating to education.) to Education; Affairs, and Public Protection. From Senator Phillip Wheeler and BR 7 (An act relating to voluntary non-opioid From Senate President Robert Stivers and Representative Jim Gooch, Co-chairs of the Public directives), BR 121 (An act relating to long-term House Speaker David Osborne: Memorandum Water and Wastewater System Infrastructure care administrators.), BR 182 (An act relating to approving the creation of the Task Force on Task Force: Memorandum requesting John W. assisted-living communities.), BR 278 (An act Electric Recording of Official Documents by “Doc” Holiday to be appointed as an additional relating to Medicaid managed care contracts.), County Clerks. member of the task force. BR 297 (A resolution designating September From Senator Chris McDaniel and From Senate President Robert Stivers and 2020 as Prostate Cancer Awareness Month.), and Representative Steven Rudy, Co-chairs of the House Speaker David Osborne: Memorandum BR 315 (An act relating to copayments by medical Interim Joint Committee on Appropriations approving appointments to the 2019 Task Force assistance recipients.) to Health, Welfare, and and Revenue: Memorandum requesting on Electronic Recording of Official Documents Family Services; BR 79 (An act relating to the authorization of the membership of the LRC by County Clerks. investigation of a shooting or deadly incident by a Subcommittee on 2020-2022 Budget Preparation From Senate President Robert Stivers and law enforcement officer.), BR 94 (An act relating and Submission. House Speaker David Osborne: Memorandum to criminal damage to rental property.), BR 119 From Senate President Robert Stivers and approving membership adjustment of the (An act relating to road safety.), BR 133 (An act House Speaker David Osborne: Memorandum 2019 Alzheimer’s and Dementia Workforce relating to road safety.), BR 139 (An act relating approving Amendments to the Creation of the Assessment Task Force. to assistance dogs.), BR 143 (An act relating to Interim Task Forces and LRC Staff Studies. From Senate President Robert Stivers and child abuse and declaring an emergency.), BR From Senate President Robert Stivers and House Speaker David Osborne: Memorandum 176 (An act relating to road safety.), BR 187 (An House Speaker David Osborne: Memorandum approving membership adjustment of the 2019 act relating to carrying concealed weapons.), BR approving appointments and authorization of the Task Force on Electronic Recording of Official 240 (An act relating to compliance with state 2019 Kentucky Career and Technical Education Documents by County Clerks. and federal law.), BR 341 (An act relating to Task Force. From Senate President Robert Stivers and firearms), andBR 342 (An act relating to firearms From Senate President Robert Stivers and House Speaker David Osborne: Memorandum and declaring an emergency) to Judiciary; BR House Speaker David Osborne: Memorandum appointing Ms. Denise Wells to the Alzheimer’s 205 (An act relating to veterinarians.), BR 231 approving appointments and authorization of and Dementia Workforce Assessment Task (An act relating to discriminatory practices the 2019 Public Assistance Reform Task Force Force.

10 2019 Interim LEGISLATIVE RECORD From Senate President Robert Stivers and to meet at 3:00 p.m. rather than 10:00 a.m. on of Multi-County Regional Jails in Kentucky. House Speaker David Osborne: Memorandum October 2. There are no apparent conflicts. From the Auditor of Public Accounts: appointing Sheila Mitchell, Harry Burchett, Kirk CC. From Jay D. Hartz: Memorandum 2018 Lung Cancer Research Fund Independent Biggerstaff, Bo Mathews, and Tim Bobrowski to recommending the adoption of an Animal Policy Accountant’s Report. Pursuant to KRS 164.476. the Local Superintendents Advisory Council. in General Assembly and LRC office spaces. From the Auditor of Public Accounts: From Senate President Robert Stivers and DD. From Senator Paul Hornback and 2018 Early Childhood Development Fund House Speaker David Osborne: Memorandum Representative Richard Heath: Memorandum Independent Accountant’s Report. Pursuant to appointing Representative Terri Branham Clark requesting reauthorization and membership of KRS 200.151. to the Interim Joint Committee on Natural the Rural Issues Subcommittee and the Equine From the Auditor of Public Accounts: Resources and Energy. Issues Subcommittee. 2018 Rural Development Fund Independent From Senate President Robert Stivers and COMMUNICATIONS Accountant’s Report. Pursuant to KRS 248.655. House Speaker David Osborne: Memorandum From the Office of the Attorney General: From the Auditor of Public Accounts: appointing Senator Steve West as Co-chair of Constitutional Challenge Report for the months 2018 Kentucky Health Care Improvement Fund the Budget Review Subcommittee on Justice and of April, May, June, and July 2019. Pursuant to Independent Accountant’s Report. Pursuant to Judiciary and removing Senator from KRS 418.075(3). KRS 194A.055. the subcommittee. From the Finance and Administration From the Cabinet for Health and Family From Senate President Robert Stivers and Cabinet: Monthly Investment Income Report for Services: 2019 Privatization of Child Welfare House Speaker David Osborne: Memorandum the months of May, June, July, and August 2019. Services Recommendations developed by the approving changes to the Interim Joint Pursuant to KRS 42.410. RS18 House Bill 1 Study Group. Pursuant to KRS Committee meeting calendar. From the Finance and Administration 620.345(5). From Jay D. Hartz: Prefiling Deadlines for Cabinet, Office of the Controller: Surtax From the Cabinet for Health and Family the 2020 Regular Session. Receipts Statements for the Law Enforcement Services: 2019 Diabetes Report. Pursuant to KRS From Jay D. Hartz: 2020 Regular Session and Professional Firefighters Foundation Fund 211.752. Calendar. Programs, which reflect activity for Accounting From the Cabinet for Health and Family From Senator Jimmy Higdon and Periods 10, 11, 12, and 13, and year-to-date Services: FY18-19 Kentucky Citizen Review Representative Ken Upchurch, Co-chairs of the activity for the period of July 1, 2018, through Panel Annual Work Report. Pursuant to KRS Mileage Based Transportation Funding Task June 30, 2019; and Accounting Periods 1 and 2 620.190. Force: Memorandum requesting to meet on and year-to-date activity for the period of July 1, From the Office of the Attorney General: September 30, rather than the regular meeting 2019, through August 31, 2019. Pursuant to KRS 2019 Report on the Status of the Administrative date of October 7. 42.190. Hearing Process in the Commonwealth of From Senator Paul Hornback and From the Cabinet for Economic Kentucky. Pursuant to KRS 15.111(2)(f). Representative Richard Heath, Co-chairs of Development: Construction activity reports for From the Cabinet for Health and Family the Interim Joint Committee on Agriculture: each loan approved as of the quarter ending June Services: 2019 Kentucky Stroke Encounter Memorandum requesting approval to meet 30, 2019. Pursuant to KRS 154.20-150. Quality Improvement Project (SEQIP) Annual on October 7, rather than the newly assigned From the Cabinet for Health and Family Report. Pursuant to KRS 211.575. date of September 30. There are no apparent Services: 2018 Pediatric Cancer Research From the Sexual Assault Response Team membership conflicts. Trust Fund Annual Report. Pursuant to KRS Advisory Committee: 2019 Second Annual From Senator John Schickel and 211.597(4). SAFE Act Report. Pursuant to KRS 403.707(5). Representative Adam Koenig, Co-chairs of From the Justice and Public Safety Cabinet, From the Cabinet for Health and Family the Interim Joint Committee on Licensing, Department of Corrections: HB 463 2018 Annual Services: FFY 2020-21 Unified Block Grant Occupations, and Administrative Regulations: Report. Pursuant to KRS 439.560. Executive Summary. Pursuant to KRS 45.351. Memorandum requesting approval to meet at From the Auditor of Public Accounts: 2018 From the Cabinet for Health and Family 10:00 a.m. rather than 3:00 p.m. on October 2. Report of the Audit of the Kentucky Department Services: 2018 HIV/AIDS Surveillance Report. There are two potential conflicts. of Fish and Wildlife Resources. From the Justice and Public Safety Cabinet: AA. From Senator Mike Wilson and From Kentucky Employers’ Mutual 2019 Education Program on AIDS Annual Representative Bobby McCool, Co-chairs of Insurance Authority: Quarterly Statement and Report. Pursuant to KRS 197.055. the Kentucky Career and Technical Education Financial Status for the periods ending March 31 From the Cabinet for Health and Family Task Force: Memorandum requesting approval and June 30, 2019. Services: Social Service Worker Caseload to meet on October 2, rather than the regularly From the Kentucky Employers’ Mutual Averages. Pursuant to KRS 199.462(4). scheduled meeting date of October 9. There are Insurance Authority: Statement of Assets, From the Office of the Attorney General: no apparent conflicts. Liabilities, and Policyholder Equity; Statement of Supplement to the 2019 Report on the Status BB. From Senator Jared Carpenter and Income; and Statement of Solvency as of March of the Administrative Hearing Process in the Representative Bart Rowland, Co-Chairs of 31 and June 30, 2019. Pursuant to KRS 342.821. Commonwealth of Kentucky. the Interim Joint Committee on Banking and From the Auditor of Public Accounts: 2019 From the Kentucky Transportation Cabinet: Insurance: Memorandum requesting approval Data Bulletin: The Establishment and Oversight FY19 Operating and Financial Statement of the

THE KENTUCKY GENERAL ASSEMBLY 11 Kentucky Public Transportation Infrastructure and Lisa Willner. home community operation; 902 KAR 045:075 Authority. Pursuant to KRS 175B.100(1). Guests: Kristi Putnam, Deputy Secretary, - establishes the responsibilities of tanning From the Legislative Ethics Commission: Cabinet for Health and Family Services; Eric facilities, the procedures for their registration 2019 Recommended Changes to the Code of the Lowery, Executive Director, Office of Finance and monitoring, and the required registration fee Legislative Ethics. and Budget, Cabinet for Health and Family structure; 902 KAR 045:090 - establishes efficient From the Cabinet for Health and Family Services; Steve Bechtel, Chief Financial Officer, administration and enforcement of home-based Services: 2019 Annual Report on Child Abuse Department for Medicaid Services, Cabinet processors and home-based microprocessors; 910 and Neglect Fatalities and Near Fatalities. for Health and Family Services; Angela KAR 002:020 - establishes referral requirements Pursuant to KRS 620.050(12)(c). Dearinger, Commissioner, Tricia Okeson, for adult guardianship; and 922 KAR 001:310 From the Auditor of Public Accounts: Deputy Commissioner, Virginia Hamilton, - establishes basic standards for child-placing Report of the Examination of Lease Law Environmental Health Inspection Program agencies; and 922 KAR 001:350 - establishes Compliance. Pursuant to KRS 43.050(2)(e). Evaluator, Pamela Hendren, Environmental criteria for public agency foster homes, adoptive From the Kentucky Housing Corporation: Health Branch Manager, Brenda Adams, Devon homes, and respite care providers caring for FY19 Methamphetamine Housing Clean-up McFadden, Division Director, Kyra Vermillion, foster or adoptive children. Assistance Program Awards. Executive Administrative Secretary, Tisha Consideration of Referred Administrative From the Kentucky Housing Corporation: Johnson, Contractor Supervisor, Department Regulations as Amended FY19 Kentucky Affordable Housing Trust Fund for Public Health, Cabinet for Health and The following administrative regulations Fiscal Year Awards. Family Services; Michele Blevins, Assistant amended after comments were placed on the From the Cabinet for Health and Family Director, Division of Behavioral Health, Justin agenda for consideration: 902 KAR 045:065 - Services: 2019 Family Preservation Services Peach, Grants Administrator, Department establishes the standards for tattooing; 902 KAR Annual Report. Pursuant to KRS 200.575(1). for Behavioral Health, Developmental and 045:070 - establishes the standards for body From the Auditor of Public Accounts: Intellectual Disabilities, Cabinet for Health and piercing and ear piercing; and 922 KAR 001:495 2018 Report of the Audit of the Kentucky Law Family Services; Jim Musser, Executive Director, - establishes minimum training requirements for Enforcement Memorial Foundation, Inc. Office of Legislative and Regulatory Affairs, foster parents, adoptive parents, and respite care There being no further business, the meeting Cabinet for Health and Family Services; Allison providers caring for foster or adoptive children was adjourned. Adams, President, Kentucky Health Department in the custody of the cabinet. Association; Glenna Goins, Governor’s Office Cabinet for Health and Family Services for Policy and Management; Phill Gunning, Department and Office Overview INTERIM JOINT COMMITTEE ON Executive Director, Shannon Baker, Director of Kristi Putnam, Deputy Secretary, Cabinet HEALTH, WELFARE, AND FAMILY Development and Communications, National for Health and Family Services (CHFS), stated SERVICES Alliance on Mental Illness (NAMI) Lexington; that CHFS is the primary state agency responsible Minutes of the 5th Meeting and Ron Coleman, Benevis. for protecting and promoting the well-being of of the 2019 Interim LRC Staff: DeeAnn Wenk, Ben Payne, Kentuckians through the delivery of health and September 9, 2019 Chris Joffrion, Dana Simmons, Becky Lancaster, human services. CHFS employs 6,700 people Call to Order and Roll Call Hillary McGoodwin, and Sean Meloney. that includes approximately 1,400 contractors. The 5th meeting of the Interim Joint Approval of the Minutes The CHFS budget is $14.4 billion which is 33 Committee on Health, Welfare, and Family A motion to approve the minutes of percent of the total state operating budget of Services was held on Monday, September 9, the August 9, 2019 meeting was made by $33.4 billion. Ms. Putnam listed all of the offices 2019, at 1:00 PM, at the Cabinet for Health and Representative Burch, seconded by Senator that are within the Office of the Secretary and the Family Services Building, Department for Public Alvarado, and approved by voice vote. other cabinet agencies. CHFS has been working Health, Hearing Rooms A, B, and C, 275 East to transform Kentucky Medicaid with the Main Street, Frankfort, Kentucky. Representative Consideration of Referred Administrative Kentucky HEALTH 1115 waiver and the 1915(c) Kimberly Poore Moser, Chair, called the meeting Regulations Home and Community-Based Services (HCBS) to order, and the secretary called the roll. The following administrative regulations waiver. The child welfare system transformation Present were: were placed on the agenda for consideration: is making strides to have Kentucky’s foster and Members: Senator Ralph Alvarado, Co- 201 KAR 008:581 - establishes requirements adoption programs be the best in the nation. Chair; Representative Kimberly Poore Moser, for charitable dental practices; 902 KAR CHFS is leading the way with a collaborative Co-Chair; Senators Julie Raque Adams, Danny 002:070 - establishes uniform procedures for and strategic approach to combat the opioid and Carroll, Julian M. Carroll, Denise Harper Angel, diagnosis, prevention, and control rabies, addiction crisis. Alice Forgy Kerr, Stephen Meredith, and Max and for operating as a rabies clinic; 902 KAR The major areas of focus for the Department Wise; Representatives Danny Bentley, Tina 015:010 - establishes standards for community for Community Based Services (DCBS) are child Bojanowski, Adam Bowling, George Brown construction and layout, sanitary standards for welfare transformation, adult protective services, Jr, Tom Burch, Daniel Elliott, Deanna Frazier, operation, the permitting and inspection fee child care, and public assistance. DCBS serves Robert Goforth, Scott Lewis, Mary Lou Marzian, schedule, and other matters necessary to insure 1.75 million Kentucky families including one Melinda Gibbons Prunty, Josie Raymond, Steve a safe and sanitary manufactured or mobile million children. Kentucky has 813,000 families Riley, , Nancy Tate, Russell Webber,

12 2019 Interim LEGISLATIVE RECORD in poverty with 233,300 households receiving for Aging and Independent Living (DAIL) serves academic achievements, graduation, and positive the Supplemental Nutrition Assistance Program older adults, adults with physical disabilities, and transitions into adult life. Serve Kentucky, the (SNAP) benefits and 14,252 households receiving individuals under state guardianship. DAIL has state service commission, works to engage Kentucky Transitional Assistance Program programs and services that are federally and Kentuckians in volunteerism and service to (K-TAP) benefits. Ms. Putnam presented a list state funded. By 2035, it is projected that older positively impact communities. of programs and grants that are administered by adults will outnumber children. According to In response to questions and comments DCBS. the United Health Rankings Senior Report 2018, from Representative Frazier, Ms. Putnam stated The Department for Medicaid Services Kentucky ranks as 49 out of 50 in overall health that it is not likely that the Office of Health Data (DMS) has approximately 1,385,788 people in and 50 out of 50 in preventable hospitalizations. and Analytics would apply specific information Kentucky that are eligible and receiving Medicaid The average caseload of state guardianship for gathered on an individual level but the benefits with 90.64 percent of total eligibles fiscal year (FY) 2018-2019 was 265 cases however information would be applied to the aggregate. enrolled in managed care. Approximately 92 best practice recommends the average should be The Office of Health Data and Analytics will percent of Kentucky’s providers are enrolled between 55 and 70 cases. review the aggregate data to see if there are with DMS. In state fiscal year (SFY) 2019, DMS’ Ms. Putnam stated that the Office of trends. CHFS can change policy and enhance budget for expenditures on administrative Inspector General (OIG) licenses and regulates how it supports the providers according to data and benefits combined was $10.64 billion. Ms. health facilities, health services, child care gathered and reviewed. The Kentucky Health Putnam listed the different divisions within providers, and child adoption or placement Information Exchange (KHIE) is working to DMS. DMS is working on the development agencies. The OIG serves as the State Survey allow CHFS access to medical encounters but and implementation of a Medicaid Enterprise Agency under contractual agreement with there are many different data bases that have to Management System (MEMS), a partner portal the Centers for Medicare and Medicaid be merged together before information can be for providers to use online, and an electronic Services (CMS) to monitor health facilities shared. visit verification system. She stated that the that participate in Medicare and/or Medicaid. In response to questions and comments Kentucky HEALTH 1115 waiver will help to The OIG investigates fraud, waste, abuse, from Representative Goforth, Ms. Putnam stated engage members and achieve long term health mismanagement, or misconduct by CHFS that electronic reporting is the preferred method goals. clients, employees, vendors, providers, and for the community engagement requirement for Ms. Putnam stated that the Department contractors. The OIG operates the Kentucky the Kentucky HEALTH 1115 waiver. However, for Behavioral Health, Developmental and All Schedule Prescription Electronic Reporting there is also a paper form available that can Intellectual Disabilities (BHDID) administers (KASPER) Program and houses the Kentucky be mailed or turned in to CHFS. Regarding state and federally funded mental health, National Background Check Program. implementation of the Kentucky HEALTH substance use disorder, developmental and The Office of Health Data and Analytics 1115 waiver, CHFS is in the appeals process. intellectual disability programs and services includes the CHFS privacy program, the The other states that have pursued a community throughout the Commonwealth. BHDID has an Kentucky telehealth program, the Division of engagement requirement have also been stopped. array of hospitals, specialty clinics, community- Health Benefit Exchange, the Division of Health Indiana has a voluntary community engagement based residential substance abuse programs, Information, and the Division of Analytics. The option so they have not encountered the same intermediate care facilities, personal care consolidation of the oversight of policy and challenges to move the waiver forward. The oral homes, long-term care facilities, and community research matters regarding healthcare and social arguments for the waiver appeal are scheduled mental health centers (CMHCs) as part of the services allow Kentucky to be more readily for October 11, 2019. After the arguments, the network for individuals with disabilities. There able to address systemic drivers impacting appeal opinion is expected to be given within a are approximately 800 clients that are served these program areas for its citizens. The Office 30 to 45 day period. CHFS made an update to daily in inpatient facilities owned and operated, for Children with Special Health Care Needs the waiver’s reporting language in response to a or contracted for operation by BHDID. She (OCSHCN) provides comprehensive care for request from CMS. explained that the goal of BHDID is to preserve Kentucky residents that are younger than 21 In response to questions and comments and enhance the behavioral health safety years of age, meet medical eligibility, and meet from Senator Wise, Ms. Putnam stated that she network. BHDID is working on programs to financial eligibility. OCSHCN has 11 offices and does not know how the $3.1 million that will expand the recovery-oriented system of care to 6 satellite locations throughout Kentucky that be granted to Kentucky from federal funds for address the opioid crisis. provide services. The Department for Income opioid efforts will be dispersed. CHFS wants Ms. Putnam defined the different divisions Support provides the Disability Determination to combine the grant money with ongoing within the Department for Public Health Services program and the Child Support efforts. CHFS would like support additional (DPH). She listed the DPH programs and Enforcement program. transformational employment. services that focus on many different areas Ms. Putnam stated that the Division of In response to questions and comments such as the Kentucky Health Access Nurturing Family Resource and Youth Services Centers’ from Senator Alvarado, Ms. Putnam stated that Development Services (HANDS) program, (FRYSC) mission is to enhance students’ having experienced the rollout of managed care emergency preparedness, immunizations, food ability to succeed in school by developing and for the foster population in Florida by a separate manufacturing inspections, and prescription sustaining partnerships that promote early cabinet, her opinion is that it makes more sense drug assistance. She stated that the Department learning and successful transitions to school, to put all of health and human services together

THE KENTUCKY GENERAL ASSEMBLY 13 under one cabinet. Separating CHFS would contractors. Private contractors are sometimes There are approximately 88,928 children covered inhibit the ability to innovate across agencies able do more with less money. CHFS agrees that under the Kentucky Children’s Health Insurance to work effectively for the child and family. the same rankings are repeated for many years Program (KCHIP). Over 46,000 of Kentucky’s She stated that the peak number of Kentucky which is not uncommon in the health and human providers are enrolled with the DMS. The total of Medicaid enrollees covered under the Medicaid services industry. Kentucky seems to have more expenditures for fee-for-service is approximately expansion was approximately 489,000. In SFY problems than other states but CHFS is looking 28 percent of the DMS budget. He stated that 10 2019, the average of total eligibles was down by into ways to do things differently to achieve percent of the Medicaid population consumes approximately 67,000. better outcomes. CHFS is looking to be more of a almost 30 percent of the budget. The total In response to questions and comments prevention model of health and human services. expenditures to managed care organizations from Representative Burch, Ms. Putnam In response to questions and comments (MCOs) was approximately $7.4 billion or 71 stated that the frontline social workers say that from Senator Harper Angel, Ms. Putnam stated percent of the expenditures. The yearly benefit caseloads are overwhelming. CHFS has brought that CHFS would prepare and send a report with expenditures decreased in SFY2019 for only the in a private child caring agency to help with the data regarding the applications for grandparent third time in the past 20 years. backlog of child protective services investigations assistance. Mr. Bechtel shared a graph that illustrated in Jefferson County. CHFS recognizes that there Cabinet for Health and Family Services a comparison of the original MCOs eligible are retention issues for frontline social workers. Budget Overview persons forecast, the actual MCOs eligible CHFS believes that implementing a culture Eric Lowery, Executive Director, Office persons, and the updated MCO forecast. The of safety would help frontline social workers of Finance and Budget, Cabinet for Health graph showed that the updated forecasts are in all departments. DCBS also relies on each and Family Services, stated that everyone in more in line with the actual experience. He community to help with child welfare and to Kentucky utilizes a service provided by CHFS stated that the number of eligible persons has support the frontline staff. The foster parent and benefits from its protection. For FY 2019, declined by approximately 69,000 since March payment is based on completion of a series of CHFS expenditures were over $13 billion. CHFS’ 2018 but has established some stabilization the background screenings, trainings, and home focus is on maximizing the federal funds with past six months. In SFY 2019, DMS had a total of inspections that many relatives and grandparents most of the grants requiring a federal match. For $241 million in expenditures and has an enacted do not want to complete. CHFS has revised the FY 2019, 86 percent of every general fund dollar budget for SFY 2020 of approximately $234 relative caregivers support program so there that CHFS received was tied to a federal match. million. DMS spent approximately 2.26 percent is access to resources such as SNAP benefits, In FY 2019, CHFS’ expenditures were paid with for administrative costs in SFY 2019. Eligibility, Medicaid services, and some cash assistance. The 71 percent federal funds, 21 percent general appropriations, and budget drive the DMS benefits are offered to the relative or grandparent funds, 8 percent restricted funds, and less than 1 budget. When one of those components receives to offset the cost of caring for a child. The foster percent of tobacco funds. In FY 2019, 92 percent pressure then another area must be offset to keep parent payment is available to relatives who of the expenditures were for grants, loans, and the budget on track. After three years of work, choose to complete the foster parent certification benefits, leaving only 8 percent for overhead DMS is current on payments to the MCOs and requirements. expenditures. Kentucky Medicaid expenditures payments are no longer being pushed to the next In response to questions and comments were 82 percent of the CHFS budget. The fiscal year. from Representative Gibbons Prunty, Ms. remaining 18 percent of the CHFS budget, which In response to questions and comments Putnam stated that there is more data from is approximately $2.4 billion in expenditures, from Senator Raque Adams, Mr. Bechtel stated Indiana regarding the implementation of the covered all other CHFS departments. that DMS has a budget neutrality piece that must 1115 HEALTH waiver about the premium Mr. Lowery stated that after DMS, DCBS be met on the 1915(c) HCBS waiver. He did not payments and the higher utilization. The is the next largest department with over $1.2 know if the 1915(c) HCBS waiver redesign will individuals who are paying a premium are more billion in expenditures. At the beginning of FY have an impact on the Medicaid expenditure likely seek preventative care. There is some data 2019 there was a general fund budget reduction totals. He stated that he is trying to get a fiscal on community engagement but it is not known of $144.9 million and an $83.3 million increase impact on the 1915(c) HCBS waiver redesign how robust the referral to resources process is in in total expenditures. There was an $82.8 because it will impact the DMS budget. Indiana. During the interim, CHFS is working million increase in retirement contributions, In response to questions and comments with community partners on how to connect $131.1 million decrease in Medicaid benefit from Senator Danny Carroll, Mr. Lowery stated systems and expand access to resources while expenditures, and $69.7 million increase in out- that if there is any dramatic shift in the overall waiting on the waiver approval. of-home care expenditures. funding at a federal level, CHFS would come to In response to questions and comments the legislature first to discuss options because from Senator Meredith, Ms. Putnam stated that Steve Bechtel, Chief Financial Officer, the changes could have policy implications. Mr. the rankings in the Senior Report in five years Department for Medicaid Services, Cabinet for Bechtel stated that there are several provider depends on many factors. CHFS hopes to be Health and Family Services, stated that number networks that are proposing a provider tax or out of the bottom five for all the categories and of Medicaid eligible persons in the presentation adjustment to increase the rates. closer to the middle rankings. She stated that is an average for the past twelve months. There In response to questions and comments more money is not always the answer. In some were approximately 1,385,788 eligible persons from Representative Frazier, Mr. Bechtel stated circumstances, funds can be redirected to private covered by Kentucky Medicaid in SFY 2019. that the $600,000 savings to DMS caused by

14 2019 Interim LEGISLATIVE RECORD 156 people being approved for the Kentucky to match or supplement federal funds. Public that there many issues at the local level with Integrated- Health Insurance Premium Payment health transformation will allow communities emergent and hospital care but public health (KI-HIPP) program is a small amount in to evaluate community assets and define local has strayed away from its mission. The public comparison to the overall budget. He also stated health priorities. transformation will focus on simplifying, that any amount that can be saved to help the Tricia Okeson, Deputy Commissioner, focusing, and prioritizing the department. budget is good and DMS expects those savings Department for Public Health, Cabinet for The transformation will be considered an to grow. Health and Family Services, stated that the five investment into prevention. The partners in the In response to questions and comments focus areas with statutory and regulatory defined transformation can drive solutions or programs from Senator Alvarado, Mr. Bechtel stated that services are: population health, enforcement to improve health outcomes at a broader level. the Medicaid expenditures include all traditional of regulation, emergency preparedness and In response to questions and comments and expansion members. The members covered response, administrative and organizational from Representative Bentley, Ms. Okeson, stated under the Medicaid expansion have copayments infrastructure, and communicable disease that ideally if the local health department had for pharmaceuticals but the traditional members control. The HANDS program, the Women, an issue with a disease or illness spreading, they do not have a cost for pharmaceuticals. Infant and Children (WIC) nutritional program, would contact the Division of Epidemiology and In response to questions and comments the harm reduction programs, and the substance Health Planning to work together regarding the from Representative Moser, Mr. Bechtel stated use disorder (SUD) programs are not in statute definition and criteria of an outbreak. She stated that the MCOs’ contract request for proposal but are important to public health. Community that with the Hepatitis A outbreak in Northern (RFP) is in the procurement process. DMS partners can offer these programs on behalf of Kentucky, the message eventually got out to cannot disclose or comment on the details in the the local health departments. not release the name of a restaurant unless the RFP. The Public Health Advisory Board is person with Hepatitis A truly put the patrons of Public Health Transformation made up of the Kentucky Health Department the restaurant at risk. Angela Dearinger, Commissioner, Association president, the Kentucky Association In response to questions and comments Department for Public Health (DPH), Cabinet of Local Boards of Health president, the from Representative Sheldon, Ms. Adams, stated for Health and Family Services, stated that the Kentucky Public Health Association president, that the cost savings will not just be in public DPH is working to be an efficient, sustainable, a university representative rotated on a two year health but also in other areas such as Medicaid. and accountable public health system focused cycle, and the commissioner of the Department The transformation is an investment in leveling on producing better health outcomes for all for Public Health. The Public Health Council the health costs that are plaguing Kentucky. Kentuckians. The public health transformation will review evidence-based and best practices Legislative Hearing on the FFY 2020-2021 goals are to relieve the fiscal instability, to to develop public health. The Council may Unified Block Grant introduce a simplified public health model with request revision, clarification, approve, or deny Michele Blevins, Assistant Director, clearly defined priorities, to create accountability submitted plans. The five components of a local Division of Behavioral Health, Department at all levels of the system, to improve public health health priority review are data-driven needs, for Behavioral Health, Developmental and leadership capacity, to prevent duplication of evidence-based solutions, adequate funding Intellectual Disabilities, Cabinet for Health and effort, to reduce waste internally and externally, identified, performance and quality management Family Services, stated that Unified Block Grant and to support data-driven decisions that plans, and an exit strategy. Ms. Okeson stated contains the Community Mental Health Services promote the best community health outcomes. that the planning and preparation of the public Block Grant and the Substance Abuse Prevention Fiscal instability is a challenge in developing health transformation began in May of 2018. and Treatment Block Grant. The Unified Block a sustainable public health system. There are 41 The statewide implementation of the public Grant is a noncompetitive discretionary formula local health departments representing 4 districts health transformation began on July 1, 2019 grant with an annual award of $29 million. The that are at risk for fiscal default in calendar year and the legislative initiatives are scheduled to be grant will go to BHDID to be distributed with 2020. The current fiscal analysis shows a $40 proposed in January of 2020. 84 percent going to services. Community mental million deficit for the public health system in Allison Adams, President, Kentucky Health health services along with substance abuse 2020. According to America’s Health Rankings Department Association (KHDA), stated that prevention and treatment have the most acute by the United Health Foundation, Kentucky is KHDA is grateful for the opportunity to partner need at the community level. The grant rules ranked 45 out of 50 in overall health outcomes. with CHFS and the DPH in the transformation. stipulate that the goods and services be used for The current programmatic services are not KHDA has vetted and is supportive of the public community based services and not institutional reflective of the community’s public health needs. health transformation. KHDA acknowledges care. There are some maintenance of effort Bureaucratic layering needs to be removed from that change is hard and there are limited requirements. The block grant application has the system to achieve operational efficiency and resources. The actions taken in the public health been sent and will either be approved or have effectiveness. The public health laws are broad transformation will have a positive impact revisions requested. The application is open for and voluminous. The statutes and regulations for better health outcomes in Kentucky. She public comment and can be reviewed on the regarding public health do not allow for proper requested that the legislature stay active and CHFS website. operational restructuring. The hybrid structure engaged during the process of transformation. In response to questions and comments of public health makes change difficult. The In response to questions and comments from Representative Bentley, Ms. Okeson, local health departments must use local funds from Senator Julian Carroll, Ms. Adams stated stated that there is a concerted effort to not

THE KENTUCKY GENERAL ASSEMBLY 15 overlap funding from different sources. With Baldwin, Bart Baldwin Consulting. Mr. Watson said the focus remains on the Kentucky Opioid Response Effort (KORE) LRC Staff: Tom Hewlett, Bryce Amburgey, building the brands, assuring production of BHDID has been very diligent to make sure all Jasmine Williams, Melissa McQueen, and Lisa quality products, and enhancing customer viable partners are at the table. There are regular W. Mo o r e service and tourism experiences. The primary state level implementation team meetings Minutes goal is the production of high quality craft that include all departments within CHFS The minutes from August 21, 2019, meeting beer. The craft beer industry is about creating and other participants from other cabinets as were approved without objection. synergies with each other, industry partners, well. There are 14 community mental health Consideration of Administrative industry sectors, and our communities. This centers with defined regions that cover all of Regulations includes synergy with the General Assembly and Kentucky. The centers provide mental health, Mark Manley, Acting General Counsel, policy makers to move Kentucky forward. substance use prevention and treatment, as Kentucky Real Estate Authority, Tony Cotto, Mr. Watson said small independent well as developmental and intellectual disability Executive Advisor, Kentucky Public Protection American craft brewers contributed over $76.2 services. A motion to accept the block grant was Cabinet, and Tony Veit, Executive Assistant, billion to the United State economy in 2018, up made by Representative Sheldon, seconded by Kentucky Real Estate Appraisers Board, came from $55 billion just two years ago. The craft beer Representative Tate, and accepted by voice vote. to answer questions on the administrative industry supports more than 500,000 jobs. While Adjournment regulations. Responding to a question from overall beer sales by volume in 2018 had a loss of There being no further business, the meeting Senator McDaniel, Mr. Veit said the $450,000 is 0.8 percent, craft beer had a four percent increase was adjourned at 3:25 PM. already being generated by about 1,600 licensed in volume growth and production. According to appraisers annually in Kentucky. the United States Department of Labor, wages INTERIM JOINT COMMITTEE ON Chairman Schickel motioned to pass over in the beer industry remain among the highest LICENSING, OCCUPATIONS, AND administrative regulations 201 KAR 030:110 of the 350 industries surveyed. The demand for ADMINISTRATIVE REGULATIONS and 201 KAR 030:190 because there are no new local products increased ten percent as preferred Minutes of the 3rd Meeting fee increases. The administrative regulations products to consumers. Spiked seltzer, cans, of the 2019 Interim were passed over with no objections from the crowlers and local craft beer are in demand. September 11, 2019 committee members. Mr. Watson said Kentucky craft breweries Call to Order and Roll Call Tom Hewlett, Committee Staffled the nation in 2018 for growth with 69 active The 3rd meeting of the Interim Joint Administrator, Interim Joint Committee on licensed craft breweries. Currently, 30 existing Committee on Licensing, Occupations, and Licensing, Occupations, and Administrative breweries have confirmed expansion activity, and Administrative Regulations was held on Regulations, explained 201 KAR 030:330 to the 42 percent of existing Kentucky craft brewers are Wednesday, September 11, 2019, at 3:00 PM, in committee. Chairman Schickel motioned to already expanding operations. In 2018, Kentucky Room 129 of the Capitol Annex. Senator John passed over the administrative regulation and craft beer had a $657 million economic impact. Schickel, Chair, called the meeting to order, and there was no objection. So far in 2019, mid-year data shows its economic the secretary called the roll. impact has increased to $765 million. More Present were: Kentucky Guild of Brewers Kentucky craft brewers are exporting than in Members: Senator John Schickel, Co- Adam Watson, Against the Grain Brewery, 2018. Kentucky craft beer is now sold to more Chair; Representative Adam Koenig, Co-Chair; said the Kentucky Guild of Brewers is pleased than 45 states and over 25 countries, but priority Senators Julian M. Carroll, Denise Harper Angel, to report another year of continued growth, should remain on investment in Kentucky. Christian McDaniel, and Dan “Malano” Seum; and increased economic impact. He thanked Production numbers have also increased. Representatives Tom Burch, Thomas Huff, the Kentucky General Assembly for the support Mr. Watson said Kentucky craft breweries Matthew Koch, Nima Kulkarni, Chad McCoy, and legislative changes that have made the have created 133 new jobs so far in 2019, while Jerry T. Miller, Kimberly Poore Moser, Ruth Ann growth possible. The craft brewing industry employing over 1,000 Kentuckians. The breweries Palumbo, Phillip Pratt, Sal Santoro, and Buddy has reached new levels of competitiveness, with offer Kentucky tourism amenities such as tap Wheatley. changes in both the market place and customers’ rooms. Fifteen brewers also offer food, roof top Guests: Tom Veit and Angie Thomas, Real expectations and demands. It remains imperative experiences, farm, or other amenities that draw Estate Appraisers Board; H.E. Corder, Marc to continue efforts to modernize and advance visitors to Kentucky microbreweries. Manley and Tony Cotto, Kentucky Real Estate Kentucky’s alcohol laws, improve the tax Mr. Watson said Kentucky microbreweries Authority; Karen Lentz, Kentucky Association structure, and avoid pitfalls of those seeking to have already invested $6.6 million this year in of Beverage Retailers, Gay Dwyer, Kentucky keep everything as it has always been. the Commonwealth in expansions in the form of Retail Federation, Charles George, Wine & Mr. Watson said Kentucky continues to additional equipment, new tanks, canning lines, Spirits Wholesalers of Kentucky, Jeff Sandlin, rank toward the bottom among states in terms buildings, improvements, and new brewery Kentucky Malt Beverage Council, John Harris, of brewers per capita. Tremendous potential for openings. Currently, of the known existing Kentucky Beer Wholesalers Association, growth still exists. Kentucky remains an under craft brewers that are expanding operations, Adam Watson, Against the Grain Brewery, saturated state as opposed to several others. an additional $13 million will be invested in Kate Russell, Hopkinsville Brewing Company, Market demands for quality craft product Kentucky breweries and operation by the end Stephanie Stumbo, Goss Samford PLLC, Allen continue to drive the opportunity for growth. of 2020. He gave some specific, local examples, Dossey, Kentucky Winery Association, and Bart

16 2019 Interim LEGISLATIVE RECORD including Goodwood Brewing Company located reform; tariffs and trade; underage drinking wineries are not allowed to have the wine tastings in Frankfort, Kentucky. He offered to give any and responsible consumption; preservation of like the small farm wineries can. legislator that was interested a tour of any of the existing privileges; independent distribution Senator Schickel said the story of the Purple local facilities. systems; access to materials; water quality; Toad winery in Paducah is a great success story. Kate Russell, owner and operator of modernization of state’s alcohol laws; and threats Mr. Dossey said they were biggest small farm Hopkinsville Brewing Company, shared her to the ability to be competitive. winery in operation in Kentucky. personal success story with the committee. Ms. Responding to a question from Responding to a question from Russell is a single mother of two children, a Representative Miller, Mr. Watson said craft Representative McCoy, Mr. Dossey said it is a state veteran, and a brewer. She employees 12 people, brewers use a variety and vast quantity of restriction that mandates the 1:00 p.m. opening and is investing an additional $250,000 to buy the ingredients, so it is difficult to source all of them time. It will require changing state law with a building next door and increase the breweries in Kentucky. Currently, Kentucky Hops is coming local mandate option for small farm wineries to capacity. She said it offers tap room sales and along nicely, but the right strains that grow here open at 11:00 a.m. like most surrounding states. distributing to other licensed retailers. She also and can compete with the ones grown in their Senator Seum mentioned that Senator noted the brewery is not just her passion, but her natural habitat are still being perfected. Barley is Carroll has vast knowledge in the winery livelihood, and how she provides for her family. beginning to be processed in Kentucky instead business, and was an original founder of the Mr. Watson said Kentucky craft brewers of being shipped from other states. Kentucky wineries in Kentucky. expansions have continued to lead to the location, wants to use its own products and processing Responding to a question from creation, and expansion of even more new plants whenever possible. Representative Palumbo, Mr. Dossey said he support industries and indirect jobs in Kentucky, Senator Seum said he is proud and often would provide a list of the eight states allowing as well as enhancing its tourism experience. The advocates for his local craft breweries. He noted wineries to distribute their wine if they produce Kentucky craft beer festivals yield a big draw and they are great for tourism and stimulate the local and sell less than 50,000 gallons. enhance tourism. Attendance for the Annual economy. Senator Carroll thanked the chairman and Craft Bash was up 15 percent this year over last Kentucky Winery Association the committee for allowing the growth of the year, and over 1,700 visitors attended the festival, Mr. Allen Dossey, President, Kentucky wine industry in Kentucky. He is proud that the traveling from 21 different states. Winery Association (KWA), said the first item wine industry is now active in all parts of the Mr. Watson said Kentucky brewers partner on the KWA’s legislative agenda is to raise state. Mr. Dossey said there are 65 Kentucky- with the Kentucky Department of Agriculture, the Kentucky small farm winery gallon limit based wineries. Kentucky Proud and local farmers, Kentucky to 500,000 from 100,000. He noted this is Responding to a question from Tourism, Kentucky Arts and Heritage Cabinet, important to be competitive with surrounding Representative Moser, Mr. Dossey said when and Kentucky’s Economic Development Cabinet. states. Indiana’s limit is 1,000,000, and the Ohio, the original limits were incorporated in the wine The Kentucky microbreweries have made over Missouri, and Iowa limits are 500,000. industry, no one envisioned the tremendous $500,000 in local charitable donations to their The second item on the legislative agenda growth that would occur. He said wine was communities supporting over 294 community is to allow a Kentucky small farm winery to underappreciated in this part of the country and organizations and charitable groups. The open earlier on Sunday in an effort to remain there were very few wineries. He said 83 percent Kentucky brewers donate approximately 10 competitive with surrounding states. They would of wine in Kentucky is consumed and purchased million pounds of spent grain to help Kentucky like to open at 11:00 a.m. on Sundays instead by women, and the growth in the industry has farmers. of the current time of 1:00 p.m. This would superseded the limitations. Representative Kentucky craft beer has both a direct and significantly help tourism sales. This would also Moser said it is time to revisit the limits and indirect economic impact in the Commonwealth put the statute for wineries equal to the laws for revise accordingly. including: 1) investment of new dollars in restaurants that serve alcohol. Wholesale and Retail Tiers Kentucky; 2) Kentucky based infrastructure and The third legislative agenda item is to Mr. Charles George, Wine & Spirits jobs; 3) industry revenue and sales; 4) wages allow a Kentucky small farm winery the ability Wholesalers of Kentucky, said Kentucky’s wine and and benefits to Kentuckians they employ; and to self-distribute their wine if they produce spirits wholesalers, beer distributors, and alcohol 5) tax revenue (federal, state, and local). The less than 50,000 gallons. He said 15 states have retailers employ nearly 16,000 Kentuckians in ripple effect of beer benefits include: agriculture, such a program and this really helps small farm 104 counties across the Commonwealth in jobs manufacturing, construction, transportation, wineries to have a level playing field. ranging from accounting and sales to logistics affiliate industries, service industries, and many The KWA supports legislation that allows and truck delivery. The alcohol wholesale and other businesses whose livelihood depends on or the “direct to consumer” shipping of wine into retail industries generate nearly $500 million in is supported by the craft beer industry. and out of Kentucky. They are fully in favor of taxable wages and collect hundreds of millions Mr. Watson said the craft brewing industry is direct shipping to consumers. of dollars for state and local governments, which concerned with several key issues both nationally Mr. Dossey clarified that the KWA is not helps to support families, communities, and and in Kentucky. They include: transparency; asking for any additional monies. They only want schools. The industry is supported by over 8,000 brewery and producer direct to consumer sales the flexibility to do their job to the best of their businesses in the Commonwealth. He has much (shipping and limited self-distribution for small ability. He also noted there are viable reasons not respect for the distillers, but the alcohol has to be brewers); franchise reform; excise tax and tax to get a full winery license. For example, regular distributed and sold in a safe manner.

THE KENTUCKY GENERAL ASSEMBLY 17 dry Kentucky counties are now trending on Commissioner Payne provided an update Mr. John Harris, Kentucky Beer Wholesalers becoming wet, and there are only 15 counties on the implementation of RS 2019 SB 1, relating Association, discussed his family owned River left out of 120 that are completely dry. This is to school safety. City Distributing Company. He said they have transformative and encouraged the committee In response to questions from Chair West, 200 employees, and offer $90,000 a year truck members to remain open to change in order Commissioner Payne stated that DOCJT was driving jobs, and a union environment. He said to modernize the system to help economic responsible for training School Resource Officers he is proud that he has a significant number development. This could include selling wine in (SROs). Commissioner Payne stated that there of employees who have over twenty years in grocery stores, which is done in all Kentucky’s would be 15 School Compliance Officers, his business and will eventually retire from his surrounding states, plus 40 more. Kentucky’s including two supervisors and the State School company. wine consumption is half of the national average Security Marshal. Commissioner Payne noted Ms. Karen Thomas Lentz, Kentucky and she feels wine sales would increase if it was that the recurring personnel costs for School Association of Beverage Retailers, said there are available with food in the grocery stores. Compliance Officers would be $1.8 million over 4,000 off-premise retailers, which include Responding to a question from dollars. package stores, grocery stores, pharmacies, Representative Miller, Mr. George said the In response to questions from Senator convenience stores, and general stores. There ABC Board’s decision on serving alcohol in dry Westerfield, Commissioner Payne noted that the is approximately 3,713 employees, and a $99.4 counties is still pending. Based on House Bill 256, number of School Compliance Officers needed million total payroll. She noted there is over $2 sponsored by Representative Michael Meredith, was determined by breaking down how many billion in products sold annually. it would allow the host of a wedding barn party schools are in the commonwealth and then Ms. Lentz said there are over 800 retail to have alcohol as long as there are no sales. He separating them into regions. Commissioner package stores licensed to sell liquor by the said a final ruling from the ABC Board has not Payne stated that with DOCJT’s plan, each package in Kentucky. She said approximately 85 come to fruition to his knowledge. officer would have roughly 90 schools to inspect percent employ fewer than ten employees, and With no further business before the on a yearly basis. Commissioner Payne noted are considered true family businesses. She said committee, the meeting adjourned at 4:00 p.m. that implementation would begin in January small retail package liquor will require a $400- of 2020. Commissioner Payne noted that 500,000 initial investment, and this is just for INTERIM JOINT COMMITTEE ON officers would go through a 40 hour training inventory, supplies, and start-up employees, not APPROPRIATIONS AND REVENUE to become a School Compliance Officer and the building. It would take $4 million or more Budget Review Subcommittee on Justice that they would be existing officers hired to a to open a large party store. She noted that taxes and Judiciary new position. Commissioner Payne stated that are paid on all the inventory and they contribute Minutes of the 3rd Meeting the Kentucky Youth Advocates helped DOCJT of the 2019 Interim significantly to the economic well-being of the September 10, 2019 develop training for SROs and that SROs would community. Call to Order and Roll Call undergo 120 hours of specialized training over Mr. George said prohibition proved to The 3rd meeting of the Budget Review three years, 40 hours of training per year. be a huge failure. He said alcohol is a sensitive Subcommittee on Justice and Judiciary of the In response to questions from Senator West, product, but the 3-tier system provides checks Interim Joint Committee on Appropriations and Commissioner Payne said he would prefer to have and balances. Three big benefits of the three tiers Revenue was held on Tuesday, September 10, an SRO in every school in the commonwealth. are consumer safety, tax collection, and product 2019, at 8:00 AM, in Room 129 of the Capitol Commissioner Payne noted that compliance selection. Annex. Senator Stephen West, Chair, called the officers would be there to work with schools to Mr. Sandlin, Kentucky Malt Beverage meeting to order, and the secretary called the help them be compliant, rather than discipline Council, said his company employs 62 full-time roll. them for noncompliance. Commissioner Payne workers and offers a variety of jobs. He said Present were: noted that RS 2019 SB 1 addresses where copies employees with a Commercial Driver’s License Members: Senator Stephen West, Co- of each compliance report would go, but that the (CDL) are the most difficult to retain. He said Chair; Representative Jason Nemes, Co-Chair; law did not mandate transparency. the council utilizes 31 suppliers, with 8 being Senators Denise Harper Angel, John Schickel, Approval of Minutes Kentucky craft suppliers, 3 Kentucky distilleries, and Whitney Westerfield; Representatives Angie Senator Schickel made the motion to and are a part of Purple Toad. He said they take Hatton, Nima Kulkarni, and Jason Petrie. approve the minutes of the August 20, 2019 the product into the retail stores and assist in Guests: Alex Payne, Commissioner, meeting, seconded by Senator Westerfield, and pricing and displaying. Department of Criminal Justice Training the minutes were approved without objection. (DOCJT), Justice and Public Safety Cabinet There being no further business before the Gay Dwyer, Kentucky Retail Federation, (JPSC); John McGuire, Deputy Commissioner, subcommittee, the meeting was adjourned at said the Kentucky General Assembly passed DOCJT, JPSC; and Kevin Rader, Assistant 8:31 AM. legislation in 2000 to allow restaurants, who met Director, Administrative Division, DOCJT, certain criteria, to sell alcohol on Sundays. This JPSC. was a game changer as it showed Kentuckians LRC Staff: Zachary Ireland, Savannah that selling alcohol on Sundays was not the end Wiley, and Benjamin Thompson of the world in their community. Historically Department of Criminal Justice Training

18 2019 Interim LEGISLATIVE RECORD INTERIM JOINT COMMITTEE ON plans is approximately thirty days, but with the Dana Fugazzi, and Christina Williams APPROPRIATIONS AND REVENUE new SmartGov software program in place that Maureen Bock, OReGO Program Manager, Budget Review Subcommittee on Economic amount of time should begin to decrease. Office of Innovation Manager, Oregon Development, In response to a question from Department of Transportation, stated Oregon’s Tourism, and Environmental Protection Representative Yates, Mr. Milby said there is not first gasoline tax was implemented in 1919, Minutes of the 3rd Meeting of the 2019 Interim currently a separate designation for residential- the first weight-mile tax for heavy vehicles was September 10, 2019 only inspectors. implemented in 1947, and the first operational Call to Order and Roll Call In response to a question from Chair Road User Charge (RUC) program was The third meeting of the Budget Review Bechler, Mr. Curry said when the HBC steps in implemented in 2015. Oregon’s Road User Fee Subcommittee on Economic Development, to help, it depends on the stage of the project as Task Force was created in 2001 due to a legislative Tourism, and Environmental Protection of the to whether or not permit fees can be collected. mandate that required a development of a design Interim Joint Committee on Appropriations and Mr. Milby agreed to provide a chart outlining the for revenue collection for Oregon’s roads and Revenue was held on Tuesday, September 10, differences in jurisdiction for HBC inspectors highways that will replace the current system 2019, at 8:30 AM, in Room 129 of the Capitol versus city or county inspectors. He added that for revenue collection. By 2012, two Oregon Annex. Representative Lynn Bechler, Chair, Kentucky’s plumbing code is simple and easy to RUC pilots had been established. In 2013, the called the meeting to order, and the secretary follow. first RUC bill passed in Oregon. In 2015 Oregon called the roll. In response to a question from Representative launched a fully operational OReGO Program. Present were: Branham Clark, Mr. Milby said the Fire Marshal’s In 2017 Oregon allowed electric vehicles (EV) Members: Representative Lynn Bechler, Office is the only division within the HBC that the option of using a RUC or paying fees. Also Co-Chair; Senator Max Wise; Representatives receives general fund dollars, and they need to in 2017, Utah implements a RUC for alternative Terri Branham Clark, Savannah Maddox, and add ten inspectors as well as three staff members. fuel vehicles. In 2019 Oregon demonstrated Les Yates. Adjournment a local area RUC. Also in 2019, RUC West Guests: Steve Milby, Commissioner, There being no further business before the implemented a California-Oregon pilot. Going Department of Housing, Buildings, and subcommittee, the meeting was adjourned at forward, MS. Bock predicted a possible federal Construction (HBC), Public Protection Cabinet 9:27 AM. call for a nationwide RUC pilot, telematics to be (PPC); Duane Curry, Deputy Commissioner, implemented with a RUC, and eventually state HBC, PPC; and, David Startsman, General MILEAGE BASED mandates to implement a RUC. Counsel, HBC, PPC. TRANSPORTATION FUNDING Ms. Bock explained the RUC concept. In LRC Staff: Sara Rome, Kevin Newton, and TASK FORCE Oregon they collect fuels tax as a prepayment of Amie Elam. Minutes of the 2nd Meeting RUC. The miles are counted and multiplied by Public Protection Cabinet of the 2019 Interim the RUC rate. Then the net tax is collected or the September 9, 2019 Department of Housing, Buildings, and overage paid is refunded. Call to Order and Roll Call Construction Ms. Bock stated the fuel tax rate is $0.34 The 2nd meeting of the Mileage Based Steve Milby, Duane Curry, and David and the RUC rate is 5% of the fuel tax rate (1.7 Transportation Funding Task Force was held Startsman provided a brief overview of the HBC cents per mile) and it is based on the average on Monday, September 9, 2019, at 1:30 PM, in and the budgetary requirements of that agency. efficiency of the fleet at the time of adoption. Room 171 of the Capitol Annex. Senator Jimmy In response to a question from Chair The registration surcharge is waived for efficient Higdon, Chair, called the meeting to order, and Bechler, Mr. Curry said Kentucky Industrialized vehicles if they are enrolled in OReGO. the secretary called the roll. The minutes from Building Systems (KIBS) are producers of Ms. Bock stated the need for a road usage the August 19, 2019 meeting were approved. panelized modular construction systems that are charge was due to unsustainable fuel tax revenues Present were: built at their plant and delivered to the building due to more efficient vehicles and increasing Members: Senator Jimmy Higdon, Co- site already constructed. construction costs. Also because of pavement Chair; Representative Ken Upchurch, Co-Chair; In response to questions from Representative degradation being the same for all vehicles, Senators Gerald A. Neal and Albert Robinson; Branham Clark, Mr. Startsman said cities are regardless of fuel type, a need for a road usage Representatives Terri Branham Clark and Sal required by statute to have a building inspector, charge was expressed. A flat fee registration cost Santoro; Jim Oliver, Jason Siwula, and Bryan as outlined in KRS 198B.060(1). The HBC steps pays for access and a road use charge pays for Sunderland (via teleconference.) in to help when a city has lost an inspector and actual usage of the road. Ms. Bock also added Guests: Maureen Bock, OReGO Program until they are able to hire a replacement, for which that a fuel tax is unsustainable and a road usage Manager, Office of Innovation Manager, no time limit is stipulated. He said the HBC only charge is fair. She added that a RUC offers Oregon Department of Transportation (via checks licenses due to safety issues. Mr. Milby additional benefits. teleconference), Dr. Cameron Kergaye, Research added that there are nine inspectors that hold In evaluating the evolving transportation Director, Utah Department of Transportation multiple licenses, and cross-training within the model, Ms. Bock utilized a chart that showcased (via teleconference) Master Inspector Branch is being done in order what Minnesota is using to tell its story and to increase efficiency within the department. He vision of the future. Currently in individual LRC Staff: John Snyder, Brandon White, said the current turnaround time for approval of ownership, the perception is “my car, my privacy,

THE KENTUCKY GENERAL ASSEMBLY 19 and no mileage tracking”. The relationship with the solution, inspiring people to think and tremendously. transportation is that my vehicle serves me, and learn more about the issue. Communication Dr. Cameron Kergaye, Research Director, the user pays gas tax. In the emerging possibility tools will be utilized such as videos, print Utah Department of Transportation presented of shared mobility, the perception is “using my materials, presentations and the website https:// a history on gas tax. Oregon was the first to smartphone I’m tracking a car I will use as I keeporegonconnected.org/ beginning next year. implement a gas tax closely followed by Utah in need it”. The relationship with transportation To further drive home the point of the 1923. He added the national gas tax purchasing in a shared mobility mentality is that “a fleet of need for the OReGO program, Ms. Brock stated power has had a decline due to cars becoming vehicles serve my community” and the user pays after 2020, 70 bridges in Oregon will become more fuel efficient. a used based fee per mile. structurally deficient each year and without an Mr. Kergaye stated that more drivers are While discussing the public opinion issues, increase in federal funding, state road funds will driving more miles creating more demand on a Ms. Bock stated some citizens feel the adoption of decrease by 30% in 2020 as well. She added that roadway system. He provided a chart that showed a RUC is unfair, and it discourages the adoption Oregon has 74,000 miles of highways, streets, in Utah that approximately 32 billion miles are of electric vehicles due to the disproportionate and roads and over 8,000 bridges to preserve and being traveled in 2018 with a projected 51 billion road mileage usage. She stated that good roads maintain. The cost to rebuild one mile of one lane miles to be traveled in 2040. More drivers are are good for all vehicles, and there are other ways can cost up to $1.5 million. Early preservation driving more miles creating more demand on to encourage the purchase of electronic vehicles techniques for the same lane mile only costs the roadway system. such as rebate programs. She stated higher $200,000. Many key transportation facilities Mr. Kergaye stated a road usage charge registration fees are electronic vehicles results are 50 to 80 years old; therefore, increased (RUC) is a usage fee that is charged in proportion in disparate treatment between those who drive maintenance and preservation investments are to miles driven, similar to usage charges with a lot of miles and those who only drive a few. necessary to keep these older facilities safe and utilities such as water, natural gas, or electricity. She added that a RUC is only as unfair as fuel operational. The RUC is being considered in Utah as a taxes are, if you are paying either fuel tax or road In conclusion, Ms. Brock stated replacement of existing gas tax, not a new tax. usage charge, but not both, then it is actually less Oregon continues to work on outreach and Mr. Kergaye stated RUC systems work regressive than increasing the fuel tax. She also interoperability of the program as well as by having an in-vehicle mileage counter that stated that one public opinion is that it penalizes sharing the mobility marketplace vision. That transmits miles driven to a private-sector account rural drivers. She stated that studies have shown vision includes providing the latest technology manager. Then mileage fees are deducted from a that rural drivers might actually benefit from solutions, administering accounts, providing pre-paid wallet managed by an account manager. a RUC because they tend to drive less efficient interoperability and delivering an integrated A vehicle owner then adds funds to the wallet vehicles so with a gas tax they are already paying user experience. when it gets low. The account manager sends more per mile to use the roads than urban In response to a question asked by Chairman road usage charge collections to the state of Utah. drivers. Higdon, Ms. Brock stated the OReGO program The state of Utah contracts with (and oversees) Ms. Brock stated the RUC differs from other is a voluntary program which has a participation the account manager. funding methods because all users pay the base rate of approximately 1,600 people. The program Mr. Kergaye stated when considering a rate similar to fuel taxes. A RUC is not variable has been received very well. RUC to generate transportation revenue, it is by the time of day unlike congestion pricing. She In response to a question asked by Chairman important to consider that a registration fee does also stated that a RUC is applicable to the entire Higdon, Ms. Brock stated Oregon uses two third not scale with a vehicle miles traveled fee and system unlike tolling. Ms. Brock stated some party vendors to track mileage usage and for does no align with a user pays principle. A gas future challenges include business disruptions, billing purposes. tax provides some link to usage but increasingly rapidly changing technologies, and impacts on In response to a question asked by Chairman less so. A road usage change scales with vehicles revenue. Higdon, tracking and charging is not utilized miles traveled and aligns with a user pays Ms. Brock stated Oregon has joined the if a car has not gone out of the state of Oregon principle scenario. national discussion on RUC by being a part of unless the driver does not have a GPS device. If Some RUC challenges include limited the Mileage Based User Fee Alliance (MBUFA) a GPS device is not utilized, all miles driven are understanding of transportation funding by which developed a framework for a national presumed to be driven in Oregon. citizens, enforcement, technology issues and pilot program. She added a significant amount of In response to a question asked by Chairman advancements, accuracy of data collected, out- time has been spent discussing the I-95 corridor Higdon, Ms. Brock stated currently 40% of the of-state driving issues, privacy protection, and Coalition concerning an intersection of RUC and revenue collected from the program goes to the administrative costs. Mr. Kergaye stated that tolling and interoperability. Also she discussed third party vendors. When more vehicles are there are 14 states as that are members of RUC that Oregon is a member of RUC West which added to the program, the percentage should West, 17 states that are members of the I-95 focuses on interoperability between states and decrease. Coalition, seven states that have completed RUC testing clearinghouse requirements. Ms. Brock In response to a question asked by Chairman pilot programs, and only two states that have stated Oregon also likes to stay current with the Higdon concerning advice for Kentucky, Ms. ongoing RUC programs. He also explained that states that are receiving FAST Act grants. Brock stated consulting the public has been a interoperability and integration between states Ms. Brock stated Oregon is engaging the major help in deciding to move forward with a will be a key policy consideration going forward. public by explaining the funding problem and RUC program. Having a RUC task force helped Mr. Kergaye stated rural and low-income

20 2019 Interim LEGISLATIVE RECORD households benefit from RUC. He added that basic structure and direction to UDOT for Mr. Kergaye summarized the range of RUC 94% of Utah households are urban and 6% are how to implement the alternative fuel vehicle elements being incorporated into Utah’s initial rural. While 47.7 is the average daily miles an RUC program. Senate Bill 72 includes privacy RUC system beginning in January 2020. Privacy urban household drives, 52.6 is the average daily and security protections, UDOT and DMV will be protected in several ways. The first is miles a rural household drives. The average fuel information sharing. It allows owners and that joining the RUC program is completely efficiency per urban household is 22.8 miles lessees of EVs and PEHVs to opt into a RUC or optional. Anyone uncomfortable with even a per gallon, while in a rural household it is 21.1 pay an annual fee. Senate Bill 72 includes a RUC minimal level of data collection can simply pay miles per gallon. He also presented a calculation rate setting process where the Transportation the flat fee. The default length of time that the which estimates that while the average urban Commission authority is to set rates with advice Commercial Account Manager (CAM) will only driver would pay $1 more a year with a RUC, the from UDOT. Also included is rulemaking store location data is 30 days following the end average rural driver would pay $19 less. authority for UDOT that allows for contracting of each month to prevent date from being kept Charts were provided of data showing the CAM and administering the program, for a prolonged length of time. Raw location share of the market of electronic vehicles by implementing enforcement mechanisms such data will never be shared with the state except state and a change of the new sales market share as registration holds, as well as other enrollment in narrowly defined cases related to dispute from 2017 to 2018. A chart was also provided components. resolution or system audits. The data may at a that showcased the size and growth of Utah’s Mr. Kergaye stated at the November 2018 future time be anonymized, aggregated, and vehicle fleet. The chart showed that 89.5% of meeting of the RUC Advisory Committee, there shared with the state and potentially other total registered vehicles in Utah are gasoline was a set of discrete recommendations that was entities, but Utah is still developing standards for powered vehicles. Diesel powered vehicles presented based on the work of the Committee data protection. It’s vital that robust protocols be account for 8.5%, gas hybrid vehicles account for and its technical groups during the previous six put into place in order to protect data privacy. 1.5%, electric vehicles account for 0.2%, plug- months. The recommendations were included in The user agreement participants fill out when in hybrid electric vehicles account for 0.1% and the development of the new system. they enroll in the program will clearly describe other alternative fuel vehicles account for 0.2% A CAM will operate Utah’s RUC system. privacy components. of all registered vehicles in Utah. He added that Participants will set up a prepaid wallet tied Utah’s initial RUC system is only open electronic vehicles, plug-in hybrid vehicles, and to electronic payment information and fees to electric, plug-in hybrid, and gas hybrid gas hybrids are growing rapidly. The electronic will then be deducted from the wallet as miles vehicles and the enrollment process will occur vehicle growth averaged 47% per year from 2015- are driven. Monthly statements will be sent to online. Participants will be required to enter 2018, and 54% from 2018 to 2019. Hybrids are participants so that they can see how many miles their VIN number so that the CAM can verify growing less rapidly, but are still far outpacing they are driving, fees that have been deducted, through the DMV interface that the vehicle growth of gasoline and diesel cars. and where their annual cumulative fees stand is eligible for the program. Participants will Mr. Kergaye stated owners of different types in comparison to the annual cap. Participants also be required to submit an odometer photo of vehicles currently pay a wide range of state can access their account either through the through the smartphone app in order to provide and federal gas tax each year. Electric vehicles smartphone app or a web portal. a starting odometer value and benchmark initial do not pay any gas tax. A semi-truck driving the Utah will be the first state to integrate its mileage. The DMV interface will also be used average number of miles pays $1,409 annually RUC system with a state DMV. We will have a as an enforcement mechanism of last resort. in gas taxes. The average Utah sedan owner pays real-time link between our CAM and the DMV. If a participant is violating program terms or approximately $300 per year in state and federal This link will be beneficial for enrollment, not paying RUC fees, the CAM will be able to fuel taxes. enforcement, and customer user convenience. request a registration hold be placed on the In 2018 Senate Bill 136 was enacted in Beginning in January 2020, owners of subject vehicle. Utah and set basic direction for the Utah alternative fuel vehicles in Utah will have a Mr. Kergaye stated 26 states have adopted Department of Transportation (UDO) to study choice about how to pay for their contribution annual flat fees for alternative fuel vehicles and and provide recommendations for an alternative to road funding. They may either pay a flat fee 15 states have considered annual flat fees. Some fuel vehicle RUC system. The RUC study independent of how much they drive, or enroll fees, such as Utah’s, are graduated such that the recommendations included setting up a RUC in the RUC program and pay by the mile. The fees ramp up over a few years to an ultimate Advisory Committee, provide a RUC alternative flat fees are specific to vehicle type. They are value. The ranges and averages quoted in the to paying flat fees for electronic vehicles, plug- lower for the vehicles that already purchase the chart provided use the ultimate values for states in hybrid electric vehicles, and gas hybrid most gasoline (and are therefore already paying that have graduated fees. He also added that vehicles. Also recommended was to consider fuel tax) and higher for EVs that don’t require some states have higher fees for commercial privacy, methods for reporting road usage, and gasoline at all. The per-mile RUC fees are capped and heavy alternative fuel vehicles than they options for administering the system. The study annually at the flat fee amount applicable to do for passenger-sized alternative fuel vehicles. recommended implementing the initial system each vehicle type. The annual flat fee for electric The ranges and averages quoted on the chart by January 1, 2020, and to submit annual reports vehicles will be $120, plug-in hybrid electric provided only use the passenger-sized fee values. of findings, and allow room for future pilot vehicles will be $52, and gas hybrid vehicles will The Utah Department of Transportation projects. be $20. The usage-based fee will be 1.5 cents per issued an RFP in February 2019 to hire a CAM Senate Bill 72 was passed in 2019 and gave mile. to operate Utah’s alternative fuel vehicle RUC

THE KENTUCKY GENERAL ASSEMBLY 21 program. Four proposals were received. A committee of different interested groups, Matt Henderson, Commissioner, Department chart was provided that shows the cost ranges stakeholders, and legislators has been helpful. of Vehicle Regulation, KYTC; Brian Beaven, associated with the four proposals for the He also stated there is a wealth of information Director, Division of Motor Carriers, KYTC different cost categories required in the bid, as and resources to be taken advantage of given that LRC Staff: John Snyder, Brandon White, well as the total price proposals. The sum of the other states have piloted programs as well. Dana Fugazzi, and Christina Williams upper and lower bound does not equal the total In response to a question asked by Chairman Road Fund Update cost of any one individual bidder due to line item Higdon, Ms. Bock stated there are two interstates Robin Brewer, Executive Director, Office variations. The financial model was provided that pass through Oregon. Mr. Kergaye stated of Budget and Fiscal Management, Kentucky that predicts that by 2025 the system will reach there are four that pass through Utah. Transportation Cabinet (KYTC), gave a a point where RUC revenue matches expenses In response to a question asked by Co-Chair presentation on the fiscal year 2019 closeout of for operating the RUC system. Expenses capture Upchurch, Ms. Bock stated Oregon did not the road fund. Ms. Brewer stated that the official both the external vendor cost as well as the apply for the FAST Act federal grant program revenue estimate for motor fuels tax in FY 2019 internal costs associated with employee labor to implement the RUC program, because FAST was $759.2 million. The actual revenue was and consultant staff support. Vendor bids all Act was implemented after Oregon’s program $773.2 million, an increase of $14.0 million. She provided rate reductions per vehicle each year as had already gone live. Mr. Kergaye stated that added that the official revenue estimate of the the enrollment grows. Utah did apply for one of the FAST Act grants motor vehicle usage tax was $494 million. The In conclusion, Mr. Kergaye explained why and received the grant. He added they applied actual revenue received from the motor vehicle a person might choose to enroll in the RUC for $2.5 million where half of that money is state usage tax was $514.5 million, an increase of program instead of paying the annual flat fee. match funding. $20.5 million. Other revenues had an increase Enrolling in RUC system saves money if enrollees With no further questions to come before of $24.9 million. Total official revenue estimates don’t drive many miles per year, they may save the Committee, Chairman Higdon adjourned combined amounted to $1,506.6 million. The money relative to the annual fee. Enrollees may the meeting at 2:30 P.M. actual revenues received were $1,566.1 million, pay as they go instead of paying the annual fee. leaving a total increase of $59.5 million. And lastly, enrollees may be curious about the INTERIM JOINT COMMITTEE ON Ms. Brewer provided a chart that showcased RUC program and want to try it out. TRANSPORTATION the difference of FY 2019 actual revenues and FY In response to a question asked by Minutes of the 2nd Meeting 2018 actual revenues. In FY 2019, $773.2 million Chairman Higdon, Mr. Kergaye stated the RUC of the 2019 Interim was collected in motor fuels tax, and $764.9 program in Utah will launch in January 2020 September 9, 2019 million was collected in FY 2018, therefore an and will admit vehicles according to the month Call to Order and Roll Call increase of $8.3 million was realized in FY 2019. that their vehicle registration is due. He added The 2nd meeting of the Interim Joint In FY 2019, $514.5 million was collected in motor there are approximately 60,000 vehicles that can Committee on Transportation was held on vehicle usage tax compared to $493.1 million be part of the program, and approximately 6,000 Monday, September 9, 2019, at 3:00 PM, in that was collected in FY 2018, resulting in a of the 60,000 are electric vehicles. He does not Room 149 of the Capitol Annex. Senator Ernie $21.4 million increase. In other revenues, $278.3 anticipate very many hybrid vehicles to join the Harris, Chair, called the meeting to order, and million was collected in FY 2019, and $252.9 program. Mr. Kergaye estimated 500 to 1,000 the secretary called the roll. The minutes from million was collected in FY 2018, resulting in an vehicles will be a part of the program within the the Committee’s July 19, 2019 meeting were increase of $25.4 million. Total surplus between first year and should increase in the future. approved. FY 2019 and FY 2018 was $55.1 million, a 3.6% In response to a question asked by Chairman Present were: increase. Higdon concerning the program’s billing cycle, Members: Senator Ernie Harris, Co- Ms. Brewer stated the motor fuels tax is Mr. Kergaye stated the participants will be billed Chair; Representative Ken Upchurch, Co- estimated to be $761.2 million in FY 2020, monthly. Chair; Senators Ralph Alvarado, Perry B. motor vehicle usage tax is expected to be $492.6 In response to a question asked by Chairman Clark, C.B. Embry Jr., Jimmy Higdon, Paul million, and the motor vehicle license fee is Higdon, Mr. Kergaye stated all miles will be Hornback, Stephen Meredith, Gerald A. Neal, approximately $116.3 million. Also estimated considered initially, including out-of-state miles. Albert Robinson, Brandon Smith, Johnny Ray in FY 2020, the weight distance tax will be He added that charging out of state drivers who Turner, and Mike Wilson; Representatives Terri approximately $83.2 million, other road fund come into Utah and having their home state Branham Clark, Randy Bridges, Chris Fugate, revenues will be approximately $36.4 million, the charge them, would prove to be a very difficult Al Gentry, Robert Goforth, David Hale, Kathy motor vehicle operators fee will be approximately task, and can only foresee that happening if there Hinkle, Regina Huff, Thomas Huff, Derek Lewis, $16.8 million, and total investment would be was a nationwide RUC program. Savannah Maddox, Russ A. Meyer, Charles approximately $3.3 million, resulting in a total In response to a question asked by Chairman Miller, Sal Santoro, Maria Sorolis, Cherlynn road fund estimate of $1,509.8 million for FY Higdon, Mr. Kergaye stated the advice he would Stevenson, Jim Stewart III, Ashley Tackett 2020. give to Kentucky as members are looking into Laferty, Walker Thomas, and Tommy Turner. Ms. Brewer provided a chart that showed a mileage-based transportation fee, is to work Guests: Robin Brewer, Executive Director, that even though the motor fuels tax rate with the public in informing them totally on all Office of Budget and Fiscal Management, has remained at 26 cents per gallon since FY aspects of the program. Setting up an advisory Kentucky Transportation Cabinet (KYTC); 2016, the motor fuels tax revenue has steadily

22 2019 Interim LEGISLATIVE RECORD increased from $750 million in FY 2016 to $773.2 one unexecuted copy of the current contractual mandatory criminal background check, and that million in FY 2019. Ms. Brewer then shared a agreement between the business and the drivers is also only required one time. graph showing historical motor vehicle usage must be enclosed. This copy must include any Representative Santoro suggested putting tax revenues from FY 2000 to FY 2019. After a policies, procedures, and terms of service with into regulation that a TNC driver must turn on precipitous drop in revenue during the recession which they intend a driver to comply. Lastly, a the dome light in the vehicle so that a rider is years of 2009 and 2010, revenues have spiked in current driving history record for all drivers able to see his or her face. recent years, hovering around $500 million per must be provided and updated annually. An unrelated matter was discussed as year since 2016. Ms. Brewer cautioned that the Commissioner Henderson stated that Representative Goforth approached the issue revenue may not stay at the $500 million level in quarterly and annual audits are conducted on of “Red Titles” which are titles that are issued the future. One last chart that was provided was TNCs to ensure compliance with Kentucky that allows operation of vehicles in the state a total road fund revenues by fiscal year chart statutes and regulations. The Division of Motor of Kentucky, which other states have deemed which showed that in FY 2019 the total road Carriers randomly selects vehicles and driver “junked” or not rebuildable. He stated there is still fund revenues were $1,566.1 million; however, it records to inspect. If the TNC is not found to be a timing issue on receiving those titles. He also was expected to drop to $1,509.8 million in FY in full compliance; penalties shall be assessed, per stated he has been made aware of people bringing 2020. KRS 281.990. He added in 2019, five fines were those titles from out of state and them being Chairman Ernie Harris reiterated that every issued totaling $1,000. The violations were for “washed” in Kentucky. Representative Goforth penny that is collected in motor fuels tax is the not providing proof of completing an approved asked what can be done to insure those vehicles equivalent of approximately $30 million received driver safety training course. that are being restored and have a “Red Title” which is split 50% with cities and counties and Information that is required from TNCs stay in Kentucky. Commissioner Henderson the other 50% goes to the construction account. through the monitoring and auditing process stated there are two states that allow for vehicles Chairman Harris also reminded the includes proof that a driver has completed an to be rebuilt and titles be issued for vehicles that Committee of the loss of toll credits beginning in annual driver safety training course, a current may be deemed not rebuildable in other states, 2020. Ms. Brewer stated toll credits are estimated five year driving history record, the current Kentucky and Alaska. He stated there is an influx to be gone by the end of either the state of federal address of the driver, a copy of a valid state- of rebuilt vehicles coming into Kentucky from fiscal year. She stated toll credits are what is used issued driver’s license, proof of current personal other states that are being processed through to match funds for federal programs and they vehicle insurance coverage, proof of vehicle Kentucky. Brian Engle, Department of Vehicle will no longer be available. She added having toll registration, written or electronic affirmation Regulation, stated the time it is taking currently credits gives flexibility for the use of state funds that a TNC driver is fit and able, verification of a to be able to receive an not rebuildable title is just in other areas, but that going forward means nationwide criminal background check, records short of two months. He added on rebuildable those dollars and that flexibility will no longer indicating if a driver has refused to accept a titles, the turnaround time to receive a title is be available. prearranged ride and the reason for doing so, within five days if it is emailed, or processed on Regulations of Transportation Network records of complaints against a driver, and a copy the same day if one is dropped off or mailed. For Companies (TNC) of the current vehicle inspection. clarification, Commissioner Henderson stated Matt Henderson, Commissioner, Mr. Henderson provided a list of current it is not and should not be allowed for people Department of Vehicle Regulation, KYTC, TNC providers in Kentucky. Caliber is a company to use Kentucky to obtain “red titles” and then and Brian Beaven, Director, Division of Motor with 3 vehicles. MOOVMO LLC is a TNC that continue use of the vehicle in other states. Carriers, KYTC gave a brief presentation on has one vehicle. LYFT has 4,094 vehicles, and Godwin Onodu, Assistant Director, Division the regulatory compliance and monitoring of Uber has 5,628 vehicles in Kentucky. of Motor Vehicle Licensing stated there are TNC companies authorized by the Kentucky In response to a question asked by examiners that extensively review the documents Transportation Cabinet. TNC pays an initial Senator concerning vehicle fees, to find out if the owner of the vehicle is using a application and yearly renewal fee of $250 Commissioner Henderson stated Kentucky Kentucky driver’s license, unfortunately it is not per company. They must also pay a vehicle fee based their fees on models from other states. He a 100% fool proof method to catching people (initially and yearly) of $30 per vehicle up to a will email the exact data that was used to base who are washing these titles. This is partially maximum of a $22,500 bulk fee. The TNC must those fees. due to people using UPS addresses or other be registered with the Kentucky Secretary of State In response to a question asked by addresses in Kentucky. He stated the applications and demonstrate proof of financial responsibility Representative Santoro concerning the that use P.O. Box addresses are suspended and and insurance. Vehicles must also have annual mandatory criminal background check for TNC investigated. Mr. Onodu stated KYTC is trying to inspections by an automotive service technician drivers, Commissioner Henderson stated that bring in more people to review the documents so certified by the National Institute for Automotive is only mandated to occur one time per driver. that fraudulent activity is ceased. Commissioner Service Excellence (ASE). Each TNC is required Representative Santoro cautioned that could Henderson stated Kentucky does not a have a to perform a national criminal background check become an issue. Commissioner Henderson fraud investigation unit embedded in the DMV for each individual operating a TNC vehicle. stated that could be changed in regulation. or Department of Vehicle Regulation. He added Records are to be retained for a minimum of In response to a question asked by Chairman they are currently in the process of setting an three years and are to be made available for audit Harris, Commissioner Henderson stated that investigative unit. purposes. Also for application and renewals, taxi cab drivers are required to have the same In response to a question asked by Senator

THE KENTUCKY GENERAL ASSEMBLY 23 Gerald Neal, Commissioner Henderson stated Chairman Fischer began the meeting 20 states have enacted the Uniform Real Property there is a local economic incentive to continue by clarifying that the goal of the Task Force Electronic Recording Act and have regulated to allow red titles to be issued within the state of Committee is to implement the eRecording law, the use of electronic technology for recordings. Kentucky. SB 114, which passed in Session 2019. One task Local recorders have to establish the process for The committee considered administrative is to consider eClosing, and eNotarization in recording and indexing paper and electronic regulations 603 KAR 5:5150 and 601 KAR 9:130. other states. submissions. St. Louis, Missouri and Iowa have Upon discussion, 603 KAR 5:5150 had no issues Business Interactions in States with established an Electronic Recording System. raised. Don Blevins, Fayette County Clerk spoke RULONA States have taken different approaches as in opposition of 601 KAR 9:130. Mr. Blevins raised Gino Yoscovits, Director of State to acceptable technology for eNotarizations, concerns with new language in the regulation, Government Affairs for Quicken Loans in the eRecordings, and eClosings. Because technology which prohibited issuance of a Kentucky title to Southeast, reviewed the three types of eClosings: and business models change constantly, statutes someone who was not a Kentucky resident. He Hybrid In-Person; In-Person eNotarization and regulations containing specific technology cited examples of retirees who live in more than (IPEN); and Remote Online Notarization standards will soon become obsolete. Ms. Fry one state and individuals in other states who (RON). suggests focusing on the function rather than the purchase vehicles for use of family members On a national level, there are currently 22 technology. in Kentucky. After some discussion, KYTC states with RON legislation approved. Twelve Distributed Ledger Technology offers requested to defer consideration of the regulation states are awaiting regulations and ten states prospects for ensuring reliable copies of until the Committee’s next meeting so that the have officially gone into effect. electronic transactions. The multiple computers Cabinet staff could confer with interested parties The industry has been more focused on on which the records are stored need to be and draft an amendment that would address RON, mainly because IPEN is not vastly different controlled by multiple parties, making the their concerns. from traditional notarization. In creating the forgery of documents more difficult. With no further business to come before standards for IPEN there are questions to be Ms. Summe stated that all counties are the Committee, Chairman Harris adjourned the considered and answered, such as requirements required by law to “paper out” electronic meeting at 3:54 P.M. to become an e-notary. submissions into books. Mortgage Industry Standards Maintenance Mr. Blevins stated that the official storage TASK FORCE ON ELECTRONIC Organization (MISMO) has been setting the of permanent records is in paper or microfilm. RECORDING OF OFFICIAL standards for RON. The organization is made up Electronic storage is not considered a permanent DOCUMENTS BY COUNTY of groups in the mortgage industry: document record. CLERKS providers, lenders, e-Notary providers, and RON Mr. McGarvey addressed drafting Minutes of the 1st Meeting providers. The standards should be finalized in with medium neutrality and durability, and of the 2019 Interim the upcoming weeks. Tennessee and Texas are emphasized that Distributed Ledger Technology August 21, 2019 two states Mr. Yoscovits refers to for industry is more of a security technique and not a back-up Call to Order and Roll Call standards. system. The 1st meeting of the Task Force on Mr. Yoscovits detailed standards and Ms. Fry clarified the difference between the Electronic Recording of Official Documents by security measures in areas of eClosings including record and the evidence of something having County Clerks was held on Wednesday, August government IDs, audio/visual quality, storage of occurred. The evidence is important to the 21, 2019, at 11:00 AM, in Room 171 of the Capitol records, and security. lenders, title insurers, and lawyers. Annex. Representative Joseph M. Fischer, Chair, Property Records Industry Association Future Task Force Meeting Topics called the meeting to order, and the secretary (PRIA) developed industry standards for Chairman Fischer would like to consult with called the roll. eRecording, to ensure acceptance and Tennessee and Texas to determine regulations Present were: implementation of eRecording. that may have to be implemented, and asked that Members: Senator Julie Raque Adams, In response to questions and comments members contact Dale Hardy with topics they Co-Chair; Representative Joseph M. Fischer, from John McGarvey, Mr. Yoscovits clarified that feel would benefit the committee. Co-Chair; Senators Morgan McGarvey and any technology device, such as Androids, tablets, Mr. Blevins announced that, since the Stephen West; Representatives Angie Hatton and iPads, and laptops can be used. Mr. Yoscovits is passing of SB 114, the clerks have been working Brandon Reed; Don Blevins, Michael Chodos, not aware of any states using distributed ledger on updates to fees, and updating the recording Debbie Donnelly, Russell Ford, Branden in the protection of documents and has not yet manual. Some issues they have run across and Gross, Mark Ladd, John McGarvey, Stephanie considered it. would like to discuss in future meetings are: Schumacher, Debra Stamper, Gabrielle Summe, In response to Chairman Fischer, Mr. Certificates of Delinquency, the attaching/ Pam Thompson, Barry Tuemler, and Tim Yoscovits confirmed that MISMO andunattaching of a manufactured home to real Vaughan. eRecording standards are incorporated in the estate, how does a paper document get recorded, Guests: Gino Yoscovits, Quicken Loans; regulations for Texas and Tennessee. and how to determine if a copy from another and Patricia Fry, Uniform Law Commission. RULONA in Other States county is truly certified. LRC Staff: Dale Hardy, Katie Comstock, Patricia Fry, with the Uniform Law Mr. Blevins asked Mike Nickles, Office and Yvonne Beghtol. Commission, presented via remote audio. Over of Business at the Secretary of State’s Office, to

24 2019 Interim LEGISLATIVE RECORD speak to the committee. Mr. Nickles stated that Association. for passing its own hemp laws. In April 2019, Kentucky’s in-house software used to track who LRC Staff: Jessica Sharpe, Breanna Miller, Senate Majority Leader McConnell sent letters is a notary is largely paper based, which needs to and Dawn Johnson to federal financial services regulatory agencies evolve into an electronic process. Approval of Minutes requesting that the agencies provide guidance Chairman Fischer asked that the clerks and A motion by Senator Raque Adams and to financial institutions under their jurisdiction the Secretary of State’s Office to present issues second by Senator Parrett to approve the minutes to ease concerns they may have with providing that they would like the committee to consider, of the August 21, 2019, meeting carried by voice services to hemp industries. Commissioner Vice including the proposed regulations in draft form, vote. said while there are many opportunities for hemp along with any changes in the law. Access to Financial Products and Banking farmers, it is frustrating that many banks are still Mr. McGarvey suggested the clerks review Services for Lawful Hemp Farmers and hesitant to offer financial services to them. The the integration of regulations regarding eFiling Producers KDFI issued guidance in 2016 based on the Bank with paper filing for financing statements. Commissioner Charles Vice, Kentucky Secrecy Act. From the KDFI’s perspective, there Future Meeting Dates Department of Financial Institutions said the are no expectations that hemp customers will be Chairman Fischer set the date of the next hemp industry is a tremendous opportunity for treated as high risk simply because they are in meeting to Tuesday, September 10th, at 11:00 am. the state, though, the financial regulatory aspects the hemp business. After the 2018 Farm Bill was Mr. Gross suggested that the committee can be frustrating. While hemp is a legal product, signed, KDFI released further guidance in 2019 consider modifying legislation for documents several financial institutions have been hesitant acknowledging that hemp was removed from coming from out-of-state. Ms. Summe would to offer financial services to the industry. The the controlled substance list. Some hesitancy like a more standard form to be used across the growth in product sales is notable, increasing remains because federal regulators, including the state. She would also like the financial cost of from $16.7 million in 2017 to $57.75 million Federal Deposit Insurance Corporation (FDIC), retention, microfilm, and production of books to in 2018. Capital improvements of $23.4 million Office of the Comptroller of the Currency be assessed. have been made and in 2018, the industry (OCC), the Federal Reserve, and the Financial Adjournment employed 459 people. In 2017, 3,200 acres were Crimes Enforcement Network (FinCEN), have There being no further business, the meeting approved for hemp production. That number not issued formal guidance relative to a financial was adjourned at 12:04 PM. increased to 50,000 in 2019. Commissioner institution offering services to companies Vice described his tours of two hemp facilities— involved in the hemp industry. The National Hempwood, a manufacturer of hemp “wood” Credit Union Association (NCUA) released a flooring, and GenCanna, a facility that will be letter on August 19, 2019, providing limited INTERIM JOINT COMMITTEE ON able to process 100,000 acres of hemp annually guidance, but the letter stated that additional BANKING AND INSURANCE once construction is complete. Hemp can be guidance will be issued once the USDA issues Minutes of the 2nd Meeting grown for fiber or wood production, oils, and guidelines. of the 2019 Interim seed, offering tremendous economic potential Ballard Cassady, President and CEO of September 11, 2019 for Kentucky. During the tour, a farmer stated he the Kentucky Bankers Association (KBA) said Call to Order and Roll Call can produce approximately $6,000 net income hemp, once a popular crop in Kentucky, fell out The 2nd meeting of the Interim Joint per acre. of favor in the 1970s when it was rated as an Committee on Banking and Insurance was held The 2014 Farm Bill passed by the U.S. abusive substance. Hemp is now produced in on Wednesday, September 11, 2019, at 10:00 Congress established the hemp production 101 out of 120 counties in Kentucky. He noted AM, in Room 149 of the Capitol Annex. Senator pilot program. It required producers to sign that Agriculture Commissioner Ryan Quarles Jared Carpenter, Chair, called the meeting to a memorandum of understanding with state had the foresight in the state’s pilot program order, and the secretary called the roll. agricultural departments as well as requiring to allow farmers to oversee the program. Present were: extensive oversight relative to the growth Other states are overseen by universities only. Members: Senator Jared Carpenter, Co- and production of hemp, including Global Currently, hemp is still produced under the 2014 Chair; Representative Bart Rowland, Co-Chair; Positioning System (GPS) coordinates and program permits; however, new permits based Senators Julie Raque Adams, Rick Girdler, notification of harvesting and transporting. on the 2019 Agriculture Act will be issued soon. Christian McDaniel, Morgan McGarvey, Dennis The 2018 Farm Bill removed hemp from the He has heard complaints that hemp products Parrett, Albert Robinson, Brandon Smith, controlled substance list, but requires the United are being stopped and seized in other states and Reginald Thomas; Representatives Terri States Department of Agriculture (USDA) to because officials mistake it for marijuana. Some Branham Clark, Joseph M. Fischer, Deanna develop guidelines. Kentucky banks do not provide services to the Frazier, Jim Gooch Jr., Kathy Hinkle, Stan Lee, Commissioner Vice said Kentucky is at the hemp industry; although, most community Derek Lewis, Michael Meredith, Wilson Stone, forefront of the hemp industry. Once complete, banks are working with hemp businesses. The Ken Upchurch, and Rob Wiederstein. the GenCanna facility will be the largest hemp KBA provides guidelines to assist banks with Guests: Charles Vice, Commissioner, production facility in the world. The USDA the process. Mr. Cassady said certain credit card Kentucky Department of Financial Institutions; is looking to the Kentucky Department of companies refuse to accept any hemp-related Ballard Cassady, President and Chief Executive Agriculture to help them develop guidelines. transaction due to varying state laws regarding Officer, and Debra Stamper, General Counsel Once complete, each state will be responsible marijuana and hemp. He also noted that there and Executive Vice President, Kentucky Bankers THE KENTUCKY GENERAL ASSEMBLY 25 is proposed federal legislation, titled the SAFE industry with no new banks since 2009. In 2013, relative to earnings. It is interest income less Banking Act, that legalizes, regulates, and taxes state bank mergers were generally by Kentucky- interest expense divided by earning assets. The marijuana. As the hemp industry grows, the KBA acquired banks, but recent mergers have mostly ratio is used to measure the profitability of is standing ready to help Kentucky farmers. Ms. involved out-of-state acquisitions. He said this community banks. Debra Stamper, General Counsel and Executive was concerning because decision-making and Public Deposit Banking in Kentucky Vice President, said that constituents can call the capital many times will be outside of Kentucky, Debra Stamper explained that KBA regarding hemp financing. losing community focus. He stated that bank collateralization of public deposits has become Senator Parrett said hemp farmers in his consolidations occur for many reasons, but one a complicated compliance issue for Kentucky district have had to deal with people taking of the most impactful is increasing bank prices. banks. The KBA receives many calls for direction plants from fields to smoke. The number of credit unions has decreased as on how to comply with the public deposit laws as Chairman Carpenter said he has noticed well from 24 in 2016 to 22 in 2019. The majority they are applied to the various administrations that hemp fields are replacing tobacco fields and tend to be smaller credit unions. Total assets in state and local government. Collateralization that no other crop can net close to $6,000 an have increased from $3.8 billion to $4.4 billion of public deposits is a protection measure in acre. Some financial institutions are concerned and total loans increased from $2.6 billion to case of bank failure, a legitimate concern when that once hemp is produced, finding a market $3 billion. It has been a long time since a new the statutes were drafted. Since then, banks are for the product could be problematic. Until the credit union was formed. Kentucky credit unions stronger and regulations have become more recent guidelines took effect, local banks were have a net worth ratio of 12.32, ranking third strict and complicated, and thus, there is a hesitant to provide services to farmers. Mr. in contiguous states. Commissioner Vice also question as to whether the current statutes are Ballard added that the 2018 Farm Act classified reviewed Kentucky credit union growth ratios. still needed. There are various statutes in various hemp as a commodity crop so farmers can now Strong growth numbers in 2015 reflect several chapters that refer back to one another. The get crop insurance. federal credit unions converting to state charter. statutes are so complicated and knotted that Commissioner Vice noted that GenCanna Commissioner Vice gave an update on even the most experienced banking attorneys is partnering with Murray State University’s the Non-Depository Division, which oversees have a difficult time untangling them. Banks engineering and marketing departments. mortgage companies, consumer loan companies, have to jump through a bunch of hoops to accept Kentucky Department of Financial money transmitters, check cashers, and payday and maintain public deposits. Statutory issues Institutions Update lenders. As of June 30, 2019, there were 1,628 include the use of unfamiliar terms, undefined Commissioner Vice provided an overview mortgage companies and brokers, 6,885 or vague terminology, and differing standards. of state financial institutions. From year-end mortgage loan originators, 365 consumer loan The definition of a public depository has become 2016 to March 31, 2019, the number of state- companies, 125 money transmitters, and 438 more complicated in the most recent session chartered banks decreased from 133 to 120; the check cashers and payday lenders. The number because Kentucky now allows local entities to number of smaller banks, banks with less than of payday lenders has steadily declined due to invest a portion of their funds in securities. If you $100 million in assets, decreased from 26 to 23; the 2009 moratorium on new licenses. In 2019, put your deposit in a public depository bank, the total assets for all state-chartered banks increased the moratorium was extended indefinitely. deposit is insured up to the amount of the FDIC from $50.7 billion to $52.7 billion; and total loans As of June 30, 2019, the Securities Division insurance and that current law requires that any for all state-chartered banks increased from $35 reports 1,416 broker-dealer registrations, 129,946 deposit over the FDIC insurance amount be billion to $37.5 billion. Commissioner Vice registered broker-dealer agents, 1,335 state 100 percent collateralized. While there is list of reviewed Kentucky’s state-chartered banking investment advisors (IA), and 5,791 investment collateralization that is accepted in the statutes, conditions as compared to contiguous states advisor representatives. the options are nuanced and not available to and nationally. As of March 31, 2019, Kentucky Commissioner Vice said the Conference all banks. This collateralization requirement was highest in net interest margin at 3.94, fourth of State Bank Supervisors and the Federal prevents banks from using their capital for loans for return on average assets at 1.28, third in Reserve Board hold a case study competition and other community investments. When you return on equity at 11.22, and first in capital for universities to introduce college students to look at particular types of deposits, like sheriff’s ratio at 11.31. Commissioner Vice said that the banking industry. The winning university deposits which are temporary and can be very he considered a one percent return on average presents a paper and video at the conference. large during tax season, banks are required to tie assets to be a strong indicator for the banking Typically, there are 55 to 60 entries in the up that collateral for what might be a very short industry after the recession. Kentucky’s rate is competition. Murray State University was a period of time. Another problem is that the now 1.28, an outstanding achievement that is finalist in 2016. Eastern Kentucky University statutes addressing when these collateralizations partially due to 2017 federal legislation reducing (EKU) entered the competition for the first must be reconciled are very confusing. State the corporate tax rate from 35 to 21 percent. Tax time in 2018 and won, and came in second auditors are telling banks they have to reconcile relief provided by the 2019 Kentucky legislature place in 2019. EKU team members from both the collateral daily, which can cause problems. will also benefit Kentucky. When banks competitions are now employed with the KDFI. The KBA is looking for a solution to these experience higher returns, they reinvest in their Responding to Senator Thomas’ question problems and would ask that the legislature employees and the community. Commissioner regarding what NIM means, Commissioner start thinking with them about a solution. Vice also discussed bank merger activity in Vice explained that NIM is one of the biggest She suggested the possibility of using a sliding Kentucky, which showed consolidation in the measures of community bank performance scale of collateralization for banks, which is an

26 2019 Interim LEGISLATIVE RECORD approach used in other states. requires more oversight and scrutiny. Mr. INTERIM JOINT COMMITTEE ON Senator McDaniel cautioned that many Cassady said he understands what the Senator ECONOMIC DEVELOPMENT AND institutions that failed during the 2008 financial is talking about. The KBA’s interest in starting WORKFORCE INVESTMENT crisis were as stable as it came until they got to think about safe alternatives. Mr. Cassady Minutes of the 4th Meeting wiped out. He expressed concern about changing suggested that bank ratings, given as a result of of the 2019 Interim collateralization requirements, but stated that he regulatory examinations, could be used as a way September 12, 2019 would be open to making clarifications. Senator to manage collateralization requirements for Call to Order and Roll Call McDaniel stated that he recognizes that the public deposits. There is an array of other avenues The 4th meeting of the Interim Joint federal bailout of banks from that crisis is related other than matching cash for cash because this Committee on Economic Development and but not the same and that everyone should hurts the bank’s ability to serve the community. Workforce Investment was held on Thursday, closely review this discussion. Ms. Stamper Senator Thomas said he was inclined to September 12, 2019, at 1:00 PM, in Room 154 said she agreed it is related but stated that the agree with Senator McDaniel in needing to of the Capitol Annex. Representative Russell recent law allowing local governments to invest proceed with great caution. He discussed the Webber, Chair, called the meeting to order, and in securities flies in the face of the 100 percent collapse of Wachovia Bank, which he said the secretary called the roll. collateralization requirement for bank deposits was very prominent. Senator Thomas said it is Present were: because securities are much riskier than bank incumbent that legislators keep in mind that Members: Senator Danny Carroll, Co- deposits. She said she appreciated the Senator’s people rely on banks to keep their family assets. Chair; Representative Russell Webber, Co-Chair; concern. No bank is immune in an economic downturn. Senators Perry B. Clark, Ernie Harris, Reginald Representative Meredith said that enacting Mr. Cassady said there has never been a depositor Thomas, and Max Wise; Representatives Lynn the Local Government Investment Bill was in Kentucky that lost their deposits, that he does Bechler, John Blanton, Adam Bowling, R. Travis a three year process. The law allows local not think anyone in Wachovia lost money, and Brenda, McKenzie Cantrell, Daniel Elliott, Chris governments to invest 20 percent of their assets that depositors are probably the safest people Freeland, Al Gentry, Kathy Hinkle, Thomas Huff, in high-quality uncollateralized investments within that kind of structure. Nima Kulkarni, Jason Petrie, Ashley Tackett which is necessary to participate in the market’s Referring to Commissioner Vice’s Laferty, and Buddy Wheatley. risk-reward relationship, but do not have the comments, Representative Meredith said that Guests: Representative Jason Nemes; same surety as funds in a bank. He said Kentucky Kentucky banks are strongly capitalized and that Representative McKenzie Cantrell; Josh Sweeny, has not experienced a true bank failure since the capital is what matters because it offsets bank Representative of Communications Workers of 1980s, and there is a large difference between failure risk. He stated that at times, 100 percent America; Jason Devaldivielso, Representative local depository institutions and investment collateralization does cost a bank more than what of Communications Workers of America; banks, like Solomon Brothers. Locally-controlled the bank can make off the deposit. Another thing Adam Watson, Government Affairs Chair, banks are investing through home, vehicle, and is that if local banks have to send depositors to Kentucky Guild of Brewers; Kate Russell, Owner, small business loans in Kentucky citizens. He another bank because the deposit is too much of Hopkinsville Brewing Company; Kate Shanks, stated that these collateralization requirements a burden, then that depositor is potentially going Vice President of Policy Development, Kentucky do create a liquidity problem for banks, because to a bigger bank headquartered in a bigger place. Chamber of Commerce; Paige Mankovich, much of the collateral put up for temporary Representative Meredith said that in most rural Chief of Staff, Aetna Better Health of Kentucky; public deposits are longer term securities. communities, one of the largest tax payers is the and Jennifer Hancock, President and CEO, Now that up to 20 percent of local government local bank. Every time a city or county invests in Volunteers of America Mid-States. deposits can go into the market, Representative a community bank, he said the bank is paying LRC Staff: Andrew Manno, Chip Smith, Meredith said that it is against the will of the them back taxes on the money. He said there are Candice Messer, and Sasche Allen. General Assembly’s previous actions to require a lot of factors to keep in mind as the legislature Approval of Minutes 100 percent collateralization for public deposits. works through the issues to see if some relief can A motion to approve the minutes of the Ms. Stamper stated that also, some banks might be given to banks. August 22, 2019 meeting was made by not want to take larger deposits if it pushes that Senator Carpenter said there is a lot involved Representative John Blanton, seconded by bank into the next level of regulation where they in the banking industry and regulations have Representative Chris Freeland, and approved by would have more compliance burdens. Senator become very complicated. The number of small voice vote. Carpenter said he experienced these issues banks is decreasing because it is harder for them Call Center Relocations working at a community bank. to survive in the marketplace. He said that small The primary sponsor of legislation prefiled Senator McDaniel said he understands the banks are the backbone of communities and that for the 2020 Regular Session, Representative Jason banking side’s perspective, but taking deposits they understand local people. Nemes, along with Representative McKenzie is a voluntary business decision. While he There being no further business, the meeting Cantrell, Josh Sweeny, and Jason DeValdivielso, understands what the legislature did for the cities adjourned at 11:18 AM. spoke about why the legislation will help to and counties and their ability to invest, there protect state taxpayers and jobs. The bill would is a difference between that law and the public create a new section of KRS Chapter 337 to deposit laws. He is not necessarily opposed to require an employer that intends to relocate a changes in the statutes, but that the discussion Kentucky call center or some of its units in certain

THE KENTUCKY GENERAL ASSEMBLY 27 situations from Kentucky to a foreign country to lower wages. Representative McKenzie Cantrell economic incentive programs. Representative notify the Secretary of the Labor Cabinet at least explained that this bill is a good business model Petrie suggested that certain stipulations may 120 days prior to such relocation. It would also to follow in general across the state and could be be needed to be incorporated in contracts require the Labor Cabinet Secretary to compile applied across other industries, but call centers before changes such as these reach legislative a list of employers that have relocated a call were addressed first because companies moving action. Replying to an additional question, center to a foreign country in six months after overseas is the most prevalent in that industry. Representative Nemes said it would be possible the enactment of the bill and every six months Replying to a question from Representative for a company to decrease its number of following. KRS 337.990 would be amended to Bechler, Representative McKenzie Cantrell said employees below 50 prior to a relocation and create a civil penalty of not more than $1,000 for that whether a company could be defined as still be eligible for benefits. Answering another each violation. Only those call centers with more a call center would depend on the company’s question, Representative Nemes said the fine than 50 full time employees would be required corporate structure. would be $1,000 per day for up to 120 days, and to comply Addressing a question from Representative Representative Petrie said he was unsure if that Responding to a question from Co-Chair Chris Freeland, Representative Jason Nemes said amount was appropriate. Danny Carroll, Representative Jason Nemes the legislation would not apply to a company Responding to Representative Daniel Elliott, said if a call center has over 50 employees and that was downsizing unless it had more than 50 Representative Jason Nemes said that when the takes over 30 percent of the company’s positions full time employees and was moving more than bill went into effect, state contracted companies to a foreign country, then the call center would 30 percent of its total number of employees to a that may have call centers out of state would have lose future economic incentives but not existing foreign country. two years from that date to move those jobs into benefits. He further explained that if a call Responding to Representative Adam Kentucky. center company has multiple locations, then all Bowling, Representative Jason Nemes referred to Answering a question from Representative locations would be used to calculate the total Section 5 of the bill that states “The head of each Nima Kulkarni, Representative McKenzie number of employees. state agency shall ensure that all state-business- Cantrell said although it is not specifically stated, Answering a question from Representative related call center and customer service work is she would think the first initially notification Buddy Wheatley, Representative McKenzie performed by state contractors or other agents would be in written form, but hopefully there Cantrell reiterated that a call center would only or subcontractors entirely within Kentucky. State would eventually be a face to face meeting for lose future economic incentives and not current contractors who perform such work outside the Labor Cabinet to discuss why the company benefits it may be receiving. Kentucky shall have two (2) years following the would want to remove jobs from the state. Replying to Senator Ernie Harris, effective date of this Act to comply with this Craft Beer Industry Update Representative McKenzie Cantrell stated that subsection”. Independent craft brewers contributed there has been a similar bill filed in Congress Answering a question from Senator over $76.2 billion to the U.S. economy in 2018 that would bar the company from doing work Reginald Thomas, Representative Jason Nemes and currently support more than 500,000 jobs. with the federal government but that stipulation explained the difference between Sections 4 Craft beer sales account for 24 percent of the is not included in the proposed legislation. and 5 of the bill. Section 4 refers to private nation’s $114.2 billion beer market, and the Representative Jason Nemes referred Senator sector employers that would be ineligible for U.S. Department of Labor ranks the craft beer Harris to Section 4(a) of the bill that says a five years if the company’s name was put on the industry’s wages among the highest of the 350 company “shall not be eligible for any direct or Secretary’s list. Section 5 refers to state agencies industries surveyed. Although, Kentucky craft indirect state grants, state-guaranteed loans, or being required to use state contractors or other breweries led the nation in 2018 for growth, state tax benefit for five (5) years after the date subcontractors within Kentucky and having a the state still ranks forty-first in number of the list is published.” two year grace period to comply. breweries. The Commonwealth has 69 active Addressing Representative R. Travis Brenda, Replying to a follow up question from licensed craft breweries, 11 known new brewery Representative McKenzie Cantrell restated that Representative Lynn Bechler, Representative locations currently in the planning stages, and similar bills have been filed in other states and Jason Nemes confirmed that if a large company 30 existing breweries with confirmed expansion that Kentucky, much like surrounding states, with 10,000 employees had a call center with 50 activity. Kate Russell, the owner of Hopkinsville needs to hold companies accountable when it employees which then moved that call center Brewing Company which opened in 2016, spoke comes to incentive funds. overseas, then the company would be ineligible about her experience as a brewer. She said that Responding to Representative John Blanton, for state incentives for five years. her goal is for her brewery to be a downtown Representative Jason Nemes said that no existing Addressing Representative Jason Petrie, anchor to attract people to the area and hopes benefits that were approved before being placed Representative McKenzie Cantrell said that to increase sales and hire more employees with on the Secretary of the Labor Cabinet’s list would statistics are being gathered regarding call center a recent purchase of a neighboring property be effected. The five years of ineligibility would jobs and Representative Jason Nemes stated be with plans to expand. In 2018, state craft beer start after the company is placed on the list. was unaware of this type of legislation being had a $657 million economic impact, and Answering Co-Chair Danny Carroll, Jason applied to any other industries. Representative there has been an economic impact of $765 Devaldivielso said there is trend of call center McKenzie Cantrell mentioned legislation that million thus far in 2019. Craft beer from the jobs and companies moving to a foreign country. has been filed during previous sessions that Commonwealth’s breweries is now being sold to One of the main reasons is to be able to pay addressed accountability and transparency of more than 45 states and over 25 countries. The

28 2019 Interim LEGISLATIVE RECORD industry has created 133 new jobs in the state in Mr. Watson said that sales with his brewery, with individuals who have previously had 2019 and currently employs over 1,000 people. Against the Grain, have to happen through the substance abuse issue. Ms. Hancock highlighted Microbreweries have increased their workforce distributor, but there are also in-house sales staff one program called Freedom House that is a two in 2019 of more than 15 percent and are offering that facilitate and promote the brand. generation solution that treats both mothers and tourism amenities such as tap rooms, food, and The Opioid Response Program for babies. roof top experiences. Business Paige Mankovich, the Chief of Staff of Aetna Tax data shows that Kentucky is the sixth The opioid epidemic has a major impact Better Health of Kentucky, spoke briefly about most highly taxed in the nation in terms of beer. on the business community and mainly through what the Chambers’ partners are trying to do In-state microbreweries are required to pay workforce participation. The commonwealth to play a role in finding solutions to the opioid federal, state, and local taxes, as well as excise, ranks forty-seventh in the nation in workforce epidemic. The Opioid Task Force has been wholesale, and sales taxes on all products. After participation. The Chamber has put together analyzing the state’s workforce participation upfront investments for facility and brewing a response program to become a resource to rate and working with employers that want to equipment, taxes are a significant portion of the business to deal with the issues and facilitate a become second chance employers for those ongoing operating expenses. Microbreweries are link between employers and employees who who are recovering from opioid addiction. The concerned with several key issues both nationally are recovering from drug addiction that are Opioid Response Program recently hired two and statewide, including transparency; brewery reentering the workforce. The Opioid Response employment specialists, one Human Resource and producer direct to consumer sales; franchise Program includes public and private partners. Specialist and another individual who is in reform; excise tax and tax reform; tariffs and Chamber members have also formed the Opioid recovery. Additionally, the Program has aligned trade; responsible consumption; preservation Task Force. with the Talent Pipeline Management Network of existing privileges; independent distribution Jennifer Hancock, the President and CEO and hosting employer technical assistance clinics systems; access to materials; water quality; and of Volunteers of America Mid-States, gave across the state. Ultimately the Opioid Response the modernization of the state’s alcohol laws. her perspective and discussed some opioid Program is to meet with employers to assess Legislation that would address the needs of related statistics. There were 1,565 deaths in the their needs and connect them with treatment the craft beer industry would include fixes to Commonwealth in 2017 due to drug overdose providers in an effort to help those who are statutory inequities; process simplification; compared to 782 deaths related to traffic recovery reenter the workforce. barrier reduction; promotion of healthy accidents and 263 murders. Kentucky has the Replying to a question from Senator competition; alignment with modern processes fourth highest rate of overdoses in the nation. Reginald Thomas, Ms. Shanks agreed that and tax policies; and codification of direct to Workers’ compensation programs account for 18 education investment will aid in improving consumer e-commerce. Mr. Watson highlighted percent of opioid prescriptions and 68 percent workforce participation rates and noted the an issue that brewers have been facing with the of injured workers’ receive opioids. Workers Chambers’ Business Education Round Table Department of Revenue regarding sales and use who abuse opioids miss an estimated 29 days of Report that brought together those from the tax on manufacturing equipment. work per year which contributes to the decline in education and business community. Answering Replying to Senator Reginald Thomas, workforce participation rates. People who abuse another question, the Chamber is not opposed to Mr. Watson said that ecommerce is a growing pain medication have the lowest workforce raising wages in the Commonwealth, but there priority for the craft beer industry. The Kentucky participation rate compared to people who are issues that may arise with mandated increases Guild of Brewers is a part of a work group that misuse other types of drugs, and half of all men above the federal minimum wage. includes the beer, wine, and spirits industries and age 24 to 54 who are not in the labor force take Answering a question from Representative produces, distributors, retailers, and third party medication on a daily basis. Opioid prescriptions Chris Freeland, Ms. Shanks said she is not aware transporters. The ecommerce market is growing could account for approximately 20 percent of of any tax incentives offered to employers that across the U.S. and other states have capitalized the decline in the male workforce participation, may be second chance employers or employers on direct to consumer sales. Ms. Russell said that compared to 25 percent of females. An important that participate in programs like the Opioid her smaller brewery does not face as many issues statistic for employers to note is that 75 percent of Response Program. The incentive to participate with ecommerce sales but understands the great adults ages 18 to 64 with substance use disorders should be a willingness to help with the opioid opportunity it could crate for larger breweries. are active in the workforce. epidemic and to increase workforce participation. Answering a question from Senator Max Volunteers of America provides care There may be some policy implications that may Wise, Mr. Watson said that the ecommerce and support for those working to overcome have to be considered in the future. legislation would have to address shipping to substance use disorder. Its programs are tailored Responding to Representative Nima and from the Commonwealth. Other states for individuals who are pregnant and parenting, Kulkarni, Ms. Hancock said that the increase are finding ways to work together and form veterans, men exiting the criminal justice in opioid related deaths can be correlated with reciprocal agreements. system, and for populations who have been out the availability of prescription medications. She Responding to Co-Chair Danny Carroll, of the workforce due to addiction. Volunteers of has observed that individuals who are addicted Mr. Watson explained the state is long way from America provides treatment for substance abuse to other drugs and receive natural consequences becoming saturated with breweries and there as well as assisting with living arrangements and can more easily stop the drug use versus an is room for opportunities and growth within employment opportunities. The organization opioid addict because opioids are so physically the industry. Answering another question, works with employers that are willing to work addictive.

THE KENTUCKY GENERAL ASSEMBLY 29 After Representative Lynn BechlerRobby Mills, Albert Robinson, Damon Thayer, pretrial incarceration should be whether or not questioned some of the statistical information and Johnny Ray Turner; Representatives the accused is dangerous or a flight risk. It should regarding the types of drugs that are causing Danny Bentley, Jeffery Donohue, Larry Elkins, not be based on whether or not the individual the increase in drug overdoses, Ms. Hancock Deanna Frazier, Joe Graviss, Cluster Howard, can pay the bail. explained that in a lot of cases prescription drug Regina Huff, Kim King, Jerry T. Miller, Rob Overcrowding in jails is an issue. Although use leads to illicit drug use and the context in Rothenburger, and John Sims Jr. programs within the jails do help, the lack of which the statistics were being discussed was Guests: Secretary John Tilley, Kirstie space makes it difficult to implement. Recidivism mainly focused on the workforce and those Willard, Deputy Commissioner Hilarye Dailey, rates in Kentucky’s state prisons are lower than individuals available to work. and Cyndi Heddleston, Justice and Public Safety that of jails because of programming. Kentucky’s Addressing a question from Representative Cabinet; Christian County Jailer Brad Boyd, and reentry program is nationally recognized. Jason Petrie pertaining to the Chambers’ Opioid Oldham County Jailer Mike Simpson, Kentucky Performance-based jail funding would be in Kentucky Abuse Report, Ms. Shanks stated Jailer’s Association; Campbell County Judge/ helpful, but it is unfeasible at the present time. that the main focus when reclassifying drug Executive Steve Pendery; Shellie Hampton, Per diems have not been increased in 11 years. possession as a misdemeanor is to emphasize Kentucky Association of Counties; Prentice The cabinet would advocate for an increase, resources being prioritized towards treatment. Harvey, Government Strategies, LLC; and but would also advocate for the incentivation Representative Ashley Tackett Laferty spoke Ron Wolf, Associated General Contractors of of better practices to go along with an increase about the opioid epidemic in her district and Kentucky. in the per diem to a particular jail. The issue of recently speaking at a function that addressed LRC Staff: Mark Mitchell, John Ryan, Joe modernizing the monetary degree associated opioid abuse and how employers can bring people Pinczewski-Lee, and Cheryl Walters. with felony level convictions, which is presently back to the workforce. Ms. Shanks said she would Approval of Minutes 500 dollars should also be examined. Thirty- connect Representative Tackett Laferty with the Upon the motion of Representative Sims, eight states have increased their felony threshold Chambers’ employment specialists to help link seconded by Senator Mills, the minutes from the levels: Texas is at 2,500 dollars and Georgia and employers with individuals trying to reenter the August 22, 2019 meeting were approved. South Carolina have set theirs at 2,000 dollars. workforce in her district. Discussion of State and Local Fiscal The cabinet is willing to work with counties to Representative John Blanton made Impact of Housing State Prisoners in Jails develop a cost sharing model to avoid shifting the comments concerning individuals who accept Secretary John Tilley stated that the true costs entirely to jails were the felony conviction plea deals for drug possession when the original crisis of the state is over-incarceration. The state monetary levels changed upward. charge was drug trafficking which may create and counties are trying to work together on this Kentucky needs to address its rising female some misleading statistics. He also cautioned issue. State law passed in the 1990’s requires the incarceration rates. It is second in the country about reclassifying drug possession as a state to place Class D inmates in county jails. in per capita female incarceration. Kentucky has misdemeanor. This represents about 12,000 inmates and is just more women in prison than in the entire state Co-Chair Russell Webber announced that under half the overall state inmate population. of New York. The female incarceration growth the next meeting of the Interim Joint Committee Kentucky is tenth in the nation in prison rate is five times that of the male incarceration on Economic Development and Workforce population. growth rate. Over 80 percent of the state female Investment would be October 3, 2019 at 1:00 In 1970, the state incarcerated around 3,000 incarcerees are serving their time in county jails p.m. in the Capitol Annex. people at a cost of five million dollars. Today with little or no programming services. There being no further business, the meeting the state incarcerates 24,000 persons and will In response to a question from adjourned at 2:46 p.m. spend 650 million dollars in correction costs. Representative Meredith, Secretary Tilley replied Kentucky is lucky as a state that something has that the rankings in the country for the male and not occurred relative to the prisons and jails female incarceration growth rate is per capita. INTERIM JOINT COMMITTEE ON which has not drawn national headlines. Senator McDaniel commented that the LOCAL GOVERNMENT Jails have limited resources. Only 21 jails of number one issue in Kentucky is a fully funded Minutes of the 4th Meeting the 76 have substance abuse programs. The state pension system. Most of the general public is not of the 2019 Interim pays an extra nine dollars for housing inmates in concerned with the overcrowding of prisoners. September 12, 2019 those jails. Around 50 jails have one-off classes, It is important, but not the main concern of the Call to Order and Roll Call such as a weekly parenting class. This is less than committee. There is a lack of uniformity and The fourth meeting of the Interim Joint what is provided to state inmates in prisons. quality in jails. There needs to be a coherent and Committee on Local Government was held on Jails were not built for long stays but for affordable plan. Thursday, September 12, 2019, at 8:00 AM, in pretrial stays. In 2016, there were 37,000 pretrial Representative Meredith commented that Room 171 of the Capitol Annex. Representative inmates that were housed for 109 days at a the over-crowding of prisoners is an issue for Michael Meredith, Chair, called the meeting to cost of 100 million dollars. Kentucky’s pretrial three committees: Appropriations and Revenue, order, and the secretary called the roll. incarceration rate is too high, despite Kentucky Judiciary, and Local Government Committees. Present were: having the gold standard in pretrial services. Secretary Tilley agreed with Senator Members: Representative Michael The issue of pretrial stays can be solved with McDaniel regarding the pension issue. He also Meredith, Co-Chair; Senators Denise Harper common sense bail reform. The question for agreed that jails are not uniform, and the only Angel, Christian McDaniel, Morgan McGarvey,

30 2019 Interim LEGISLATIVE RECORD options the cabinet has when conditions warrant, inmates. the other jail population is problematic for is to remove state prisoners, which they have In response to another question from some jails space-wise. For years, the KJA has done, or shut jails down completely which then Representative Meredith, Ms. Willard said all 76 fully supported uniform training for all deputy requires finding places for that jail’s prisoners. jails are over populated. jailers. The KJA plans to work with members In response to a question from Representative Meredith said that the of the legislature to ensure such training, but Representative Frazier, Secretary Tilley said that counties are subsidizing the state in regards to funding is an issue. If any jail officers or staff it is mandated to place state inmates in county housing prisoners. are engaging in inappropriate behaviors, the jails and that taking on state prisoners with the Senator McDaniel requested Secretary KJA does not condone that behavior. In fact, idea that the per diem may help them with other Tilley to estimate what it would cost to remove the KJA’s leadership went as far as to request the costs may not work out. Ms. Kirstie Willard, the state prisoners from county jails and house resignation of a particular jailer before news of Director of Local Facilities with the Justice and them in state facilities on an initial and ongoing inappropriate behavior was reported. Public Safety Cabinet said that unfortunately, basis. Oldham County Jailer and Vice President the overwhelming majority of Madison County’s Discussion of Issues relating to the of the KJA Mike Simpson told the Committee inmates are county inmates. The cabinet has no Incarceration of Prisoners in Jails that even though 40 county jails have closed, it authority to require another county to take them Christian County Jailer and President of the does not mean that counties are out of the jail inmates from another county. Kentucky Jails Association (KJA) Brad Boyd, told business. Oldham County’s contractual per In response to a question from Senator the Committee that Kentucky has 76 full service diem with other counties to house their inmates Thayer, Secretary Tilley replied that the drug jails, four regional jails, four life safety jails, and exceeds the state’s per diem rate. Televisions epidemic issue, especially opioids, is the main 40 jails that have been closed. Kentucky’s jails might be able to assist with allowing inmates to reason for the marked increase in female house county inmates, state inmates, and federal participate in drug rehabilitation programs. incarceration. inmates and ICE detainees. Senator Thayer commented that beyond In response to another question from In regard to county jail populations, jailers inmates receiving a bed, meals, and not being Senator Thayer, Secretary Tilley stated that do not arrest, set bail or bond, prosecute, mistreated, the public is ambivalent at best Kentucky’s trafficking laws are as tough as sentence, or classify the inmates located in regarding inmates. Jailer Simpson agreed, but those in any other state that comes to mind, but the facilities. Jailers are charged with housing the public needs to be educated so they will care studies do not support the thought that tougher and caring for inmates’ health. Many jails offer since they are directly affected. trafficking laws eliminate drug abuse. programming to inmates with little additional Jailer Boyd stated that he did not agree with In response to a question from Representative funding from the state. The jail population is “cite and release” for a person caught with heroin Miller, Secretary Tilley replied that there has often in very poor health, suffering from drug or cocaine, and that it was not the answer for been overwhelming support for common sense addiction, mental illness, dental decay, need for drug addiction—at least not without treatment. bail reform. People just need to look at the 2016 dialysis, heart conditions, and other conditions. In response to a question from figures which included 37,000 low-to-moderate The state’s classification system dictates which Representative Meredith, Jailer Boyd replied risk offenders who served an average number of inmates can be housed in what facilities. that Christian County outsources with Trigg 109 days in jail, to see what the impact would be Regarding county jail budgets, funding County. In response to another question from if common sense bail reform was instituted. That comes from state appropriations which includes Representative Meredith, Jailer Boyd said the amounts to 120 million dollars and represents a the jail bed allotment, daily per diem, Local lowest cost per day to house other county’s significant amount of bed days, also. Corrections Assistance Fund, county general inmates with them is $25 per day, with the In response to a question from Representative fund dollars; and restricted funds which would highest being $35 per day. Trigg County does Rothenburger, Secretary Tilley said that the issue be, for example, the commissary. While county not pay what it actually costs Christian County of inmates losing their Medicaid benefits while jails have continuously been asked to do more to house them. awaiting trial stems from the federal government with less, county jails want to continue working Senator McGarvey commented that people and is a huge issue for the cabinet. Representative with the state to keep Kentucky safe and institute do not know the difference between jails and Rothenburger asked Secretary Tilley to get back smart programs to reduce recidivism. prisons. While awaiting trial, it is estimated that with him on the specifics of the Medicaid issue. Solutions include raising the county jail per in Kentucky 20 percent of prisoners are in jail, Representative Rothenburger commented diem and comprehensive penal code reform. because they cannot afford bail to be released that “citing and releasing” is not working out County inmate populations, including pre- before their trial. Jailer Simpson agreed and said because people are failing to appear and follow trial and sentence misdemeanants should be that methods to instill hope are needed. court orders, causing the issuance of a warrant. considered in any reforms moving forward. Bail In response to a question from Representative Secretary Tilley said in Utah, misdemeanors were reform is something the association has been Rothenburger, Jailer Simpson said county jails reduced to violations, as well as in Kentucky. In supportive of in the past. Raising the threshold are not mandated to have medication programs Kentucky’s case, the failure to appear rate did not for felonies is something the association would for prisoners with drug addictions. Jailer Boyd change. be happy to discuss, but it is not known if that said that Kenton County operates a program and In response to a question from is the solution. Expansion of substance abuse that Christian County ensures that prisoners on Representative Meredith, Secretary Tilley said programs within jails is desirable, but the a medication program receive their medication. all 76 full service jails in Kentucky house state policy of segregation of those inmates from Senator McDaniel commented that jail is

THE KENTUCKY GENERAL ASSEMBLY 31 the place that saves people’s lives. Inmates receive per diem it receives for the chairman. Kentucky Facilities Inventory and medical and dental care, and are eating better Representative Frazier noted county Classification System (KFICS) Project than before they went in. limitations in raising general fund dollars to Robin Fields Kinney, Associate Senator Thayer stated that it was time to offset jail costs. Commissioner, Office of Finance and Operations; have a serious discussion about bail reform. The next meeting of the Committee will be and Donna Duncan, Director, Division of Discussion of Costs Associated with the held October 3, 2019. There being no further District Support Services, Office of Finance and Incarceration of Prisoners in Jails business, the meeting was adjourned at 10:10 Operations, discussed the Kentucky Facilities Campbell County Judge/Executive Steve a.m. Inventory and Classification System (KFICS) Pendery agreed that the public does not care project. about inmates and should be more engaged. One Robin Kinney testified that the statutory way to get the public’s attention is to educate INTERIM JOINT COMMITTEE ON authority to do an inventory of school buildings them on how much of their tax money is used APPROPRIATIONS AND REVENUE on their condition and quality is found in KRS to pay for the incarceration of inmates. Jails are Minutes of the 4th Meeting 157.420. KFICS is the new iteration of the the biggest business for Campbell County— of the 2019 Interim ‘Parsons’ report that was done in 2011. The half of the county’s employees work for the jail. September 10, 2019 Parsons report focused on the worst, to the best, Counties spend the most money on jails. Call to Order and Roll Call school buildings in Kentucky. Funding was not From an economic standpoint, the The 4th meeting of the Interim Joint continued for the report. In 2016, the General taxpayers save nothing if the state cuts a cost Committee on Appropriations and Revenue was Assembly appropriated additional funds to only to pass it on to counties. If this practice held on Tuesday, September 10, 2019, at 1:00 implement KFICS. Part of the goal is to build a results in inefficiency, then the taxpayers actually PM, in Room 149 of the Capitol Annex. Senator sustainable assessment process of the physical pay more. Christian McDaniel, Chair, called the meeting to condition of school buildings using industry The per diem is $31.34 per state inmate, order, and the secretary called the roll. standard methodology. per day, but it actually costs Campbell County Present were: The Kentucky Department of Education $50 per inmate, per day. That per diem paid to Members: Senator Christian McDaniel, Co- (KDE) is required to submit a KFICS report to counties is roughly half what it costs the state to Chair; Representative Steven Rudy, Co-Chair; the Legislative Research Commission (LRC) by house a prisoner per day. Senators Matt Castlen, Rick Girdler, David P. October of every odd-numbered year. Just under two dollars per day is allowed for Givens, Alice Forgy Kerr, Morgan McGarvey, Donna Duncan testified that 169 school medical costs for each state prisoner. Campbell Stephen Meredith, Gerald A. Neal, Dennis Parrett, districts participated in the condition assessment County has applied to get money from the state’s Dan “Malano” Seum, Robin L. Webb, Stephen of one school building per district during phase catastrophic medical fund to be reimbursed for West, and Phillip Wheeler; Representatives Lynn one of KFICS. Six school districts did not medical expenditures but cannot collect from it. Bechler, Danny Bentley, Joseph M. Fischer, Kelly participate, five of which were independent The entire state’s catastrophic medical fund could Flood, David Hale, Mark Hart, Angie Hatton, districts. The improvements made to KFICS since be absorbed by Campbell County’s costs alone. Jason Nemes, Ruth Ann Palumbo, Phillip Pratt, phase one in 2017 were reviewed by Ms. Duncan. Counties should be able to take a sick Melinda Gibbons Prunty, Brandon Reed, Steve There are now four components that are a part of prisoner across the state line, which is a mile Riley, Sal Santoro, Wilson Stone, James Tipton, the conditions report. KDE has communicated away in the case of Campbell County, for medical and Susan Westrom. to school districts regarding KFICS. treatment, rather than paying for costs to take Guests: Robin Fields Kinney, Associate Ms. Duncan said that the facilities them to Louisville or elsewhere. Counties should Commissioner, Office of Finance andconstruction process is set out by statute, and also be allowed to receive prisoners from other Operations; Donna Duncan, Director, Division implemented through regulation. The regulation states to reduce costs. of District Support Services, Office of Finance establishes the process that districts use. KDE In response to a question from and Operations; Steve Bechtel, Chief Financial has made enhancements to the processes to Representative Meredith, Judge Pendery stated Officer, Kentucky Department for Medicaid improve efficiency and transparency. In 2017, that Campbell County’s jail costs are higher than Services; Lee Guice, Director, Policy and KDE converted over to an automated workflow the current pension contribution. In response to Operations, Kentucky Department for Medicaid system known as the Facilities Planning and another question from Representative Meredith, Services; Amy Barnes, Executive Director, Office Construction (FACPAC) system. Beginning in Judge Pendery agreed that pension and jail costs of Federal and State Grants, Department for 2018, KDE formalized a tier process for projects. are county’s most expensive services. Local Government (DLG); and Laura Redmon, Tier one projects are major renovations or new In response to other questions from Budget Analyst, Office of Federal and State schools. Tier four projects are usually small Representative Meredith, Jailer Simpson said that Grants, DLG athletic projects. The majority of projects are tier while per diems from the federal government LRC Staff: Jennifer Hays, Cynthia Brown, three and four. vary, his jail receives 57 dollars a day to house Morgan King, and Chase O’Dell The construction process includes KDE, prisoners and that medical and transportation Approval of Minutes school districts, boards of education, design costs are covered by the federal government. Ms. A motion was made, and seconded, to professionals, construction vendors, and more. Willard said that there is one private prison still approve the minutes of the August 20, 2019 Ms. Duncan reviewed the pre-construction and in operation, and she would get the figure for the meeting. The minutes were approved by voice construction processes. vote.

32 2019 Interim LEGISLATIVE RECORD Ms. Duncan testified that one of the biggest The program enrolled low income adults and from March of 2018 to January of 2019. It has challenges faced by the District Facilities Branch children on a mandatory basis. KenPAC covered since stabilized. In response to another question, is staffing. The staff consists of one branch acute primary and specialty care coordinated Mr. Bechtel testified that if there were a recession, manager, four staff architects, and one analyst. by providers. In 1997, the Kentucky Health enrollment would be expected to increase. In There are 1,492 active projects being managed. In Partnership, a comprehensive risk-based response to further questioning, Mr. Bechtel said Fiscal Year (FY) 2018-2019, 115 school districts managed care program was implemented. In that the Medicaid eligible population is lower initiated 331 projects, with an estimated cost 2011, the KenPAC program was terminated and than in recent history. Most of the flux in eligible of over $622 million. The projects included 14 Medicaid received approval to expand managed Medicaid population is within the expansion new buildings, 51 major renovations, and more. care statewide to cover beneficiaries in regions population. The impact of the new initiatives in 2019 Senate not served by the Kentucky Health Partnership. In response to a question from Representative Bill 1 is also a challenge to the District Facilities In 2013, the state began awarding contracts to Gibbons Prunty, Mr. Bechtel testified that the Branch. Another challenge is the implementation additional Managed Care Organizations (MCOs) 1115 waiver is not a part of forecasts. of KFICS. to manage care for beneficiaries in the regions Coal and Mineral Severance Tax Programs In response to a question from Senator served by the Kentucky Health Partnership. In Amy Barnes, Executive Director, Office of McDaniel, Ms. Duncan stated that there are now 2014, Kentucky expanded Medicaid Managed Federal and State Grants, Department for Local more buildings per school district than just the Care to the expansion population through an Government (DLG); and Laura Redmon, Budget original ones entered into KFICS during phase Alternative Benefit Plan (ABP). Analyst, Office of Federal and State Grants, DLG, one. Mr. Bechtel stated that the actual managed discussed the Coal and Mineral Severance Tax In response to a question from Senator care expenditures for FY 2019 added up to a little Programs. Givens, Ms. Duncan said that her branch is over $7.4 billion, totaling 71.5 percent of total Amy Barnes testified that coal and mineral concerned with building safety. Medicaid spending for Kentucky. The other 28.5 severance tax funds are distributed on a quarterly In response to a question from Representative percent of expenditures are for the 10 percent of basis through two programs. The programs are Bechler, Ms. Duncan testified that KDE allowed the Medicaid population known as the fee-for- the Local Government Economic Assistance each school district to choose which building service (FFS) population. This population is the Fund (LGEAF) and the Local Government would be evaluated in phase one, although KDE more vulnerable and expensive population. Economic Development Fund (LGEDF). encouraged the districts to choose the worst Mr. Bechtel testified that the federal Ms. Barnes stated that 50 percent of gross building in the district. The intent after the matching rate changes every October for the mineral severance tax revenue goes to the state’s first report is to see the full inventory of school traditional Medicaid population. The federal general fund, while the other 50 percent goes to districts. Ms. Kinney testified that the goal is for funding rate for traditional Medicaid is usually the LGEAF. Eligible counties are producers of all 1,200 school facilities to be in KFICS. around 70 percent. The Affordable Care Act non-coal minerals such as limestone, clay, oil, or In response to a question from Senator (ACA) expansion population is currently 93 natural gas. Funds are distributed based on the Castlen, Ms. Duncan stated that the district percent funded by federal dollars. The Children’s taxes collected and reported for each individual facilities branch must give approval for property Health Insurance Program (CHIP) population county. 10 percent of each county’s allocation goes acquisitions. is normally 80 percent federally funded. Mr. to the cities within that county. The distribution In response to a question from Bechtel gave a brief history of CHIP. Kentucky’s to cities is based upon population. In FY 2019, Representative Rudy, Ms. Kinney stated that the Children’s Health Insurance Program is referred the LGEAF mineral program allocated over $17 Office of Finance and Operations would not be to as (KCHIP). million to participating counties and cities. The preparing a final dollar amount for 2019 Senate In response to a question from Senator amount projected for FY 2020 is a little over $16 Bill 1, but that the office would be happy to help McDaniel, Mr. Bechtel testified that the difference million. with questions related to it. in allocations needed for the ACA expansion Ms. Barnes said that in statute, coal In response to another question from population between this year and next year will severance tax revenues are to be split evenly, Senator McDaniel, Ms. Kinney stated that the be approximately an additional $45 million. In with 50 percent of revenues going to the General deadline for school district input was June 30, response to another question, Mr. Bechtel stated Fund, and the remaining 50 percent of revenues 2019. However, districts will still be able to that approximately 40 to 50 million dollars from going to the LGEDF. According to statute, funds submit information. the general fund will need to go into KCHIP for in the LGEDF program are divided into thirds. Medicaid Funding each year of the next biennium. Two thirds comprise the “single county” coal Steve Bechtel, Chief Financial Officer, In response to a question from Senator severance program. The other third is comprised Kentucky Department for Medicaid Services; Meredith, Mr. Bechtel testified that the $15 of the “multi-county” coal severance fund. and Lee Guice, Director, Policy and Operations, million needed from the general fund for KCHIP In FY 2019, “off the top” appropriations Kentucky Department for Medicaid Services, in FY 2020 was determined by considering deducted from the gross coal severance tax discussed Medicaid funding. projections. The $15 million has been provided revenues totaled a little over $29 million. Steve Bechtel testified that in 1986, the first through the enacted budget. Ms. Barnes testified that under Regular managed care program, the Kentucky Patient In response to a question from Senator Session 2018 House Bill 200, a set appropriation Access and Care (KenPAC) Program, a primary Givens, Mr. Bechtel stated that the Medicaid goes to the LGEDF each year. In FY 2019, that care case management program, was introduced. eligible population was on a downward trend appropriation totaled a little over $15 million.

THE KENTUCKY GENERAL ASSEMBLY 33 The appropriation will total $7.5 million in severance revenues occurred in FY 2012, when and Lynn Bechler; Senator Danny Carroll; and FY 2020. Per statute, of the funds transferred gross revenues were $313 million. She continued Sergeant Jason Rothermund, Fraternal Order of from the LGEDF to the LGEAF, 60 percent are to say that revenues are now at the lowest they Police, Bluegrass Lodge #4, Lexington, Kentucky. distributed to the counties based on the taxes have ever been, at $65.1 million. In response to LRC Staff: Alisha Miller, Karen Powell, collected in that county. Thirty percent of funds another question, it was testified that there have Daniel Carter, Kevin Devlin, Michael Callan, are distributed based upon per capita income, ton been no education projects completed using coal Roberta Kiser, and Peggy Sciantarelli miles, and population. These funds together go severance money under 2018 Regular Session Approval of Minutes to producer counties. The remaining 10 percent House Bill 200. A motion to approve the minutes of the of LGEAF moneys are distributed to each coal- In response to a question from Senator August 22, 2019, meeting was adopted without impacted county based on geographic area, ton Webb, Ms. Barnes testified it is not yet known objection by voice vote. miles, and per capita income. how the $15 million in excess funds were spent Proposed Legislation Relating to Ms. Barnes stated that LGEAF funds by the recipient counties. The counties will report Sanctuary Cities cannot be used for the general administration of how the money was spent in their budget reports Representative John Blanton and Senator government. filed with the Office of Federal and State Grants. Danny Carroll discussed legislation they plan The projected coal severance tax revenue for In response to a question from to co-sponsor for the 2020 legislative session FY 2019 totaled $77.9 million. Actual revenues Representative Bentley, Ms. Barnes stated that relating to enforcement of sanctuary policies. for the year were over $92.9 million, creating an 10 percent of each county’s allocation go to the Jason Rothermund, Special Operations Sergeant excess of $15,006,946.91. Gross coal severance cities within that county, based on population. in the Lexington Police Department and tax revenue is estimated to reach a little over $65 List of Reports Received Since August, President of Bluegrass Lodge #4, Fraternal Order million in FY 2020. 2019 of Police, accompanied them and testified in Ms. Barnes testified that in FY 2019, over Senator McDaniel encouraged members to support of their draft legislation. Representative $17 million in LGEDF funds were distributed to review the list of reports received since August, Lynn Bechler discussed BR 240, relating to the 33 participating counties in the single county 2019. compliance with state and federal law, which he program. A county is a participant in the single Adjournment prefiled on September 10 for the 2020 regular county program if it has coal production in any With no further business before the session. quarter during the last four years. In FY 2020, the committee, the meeting was adjourned at 2:27 Representative Blanton said the draft distribution will drop to $13.5 million. LGEDF p.m. legislation is a work in progress. The intent is funds are being expended in a variety of ways, to prevent any government entity within the including in public infrastructure, water, sewer, INTERIM JOINT COMMITTEE ON Commonwealth from declaring, enacting, road improvements, and more. STATE GOVERNMENT adopting, or otherwise enforcing any sanctuary In response to a question from Senator Minutes of the 3rd Meeting policy, whether written or oral. It seeks to enable Webb, Ms. Barnes testified that a variety of jail of the 2019 Interim law enforcement officers to do their job and to expenses are being paid for with coal severance September 12, 2019 prevent local government entities from dictating money. In response to another question from Call to Order and Roll Call which laws can and cannot be enforced. Senator Webb, Ms. Barnes stated that jail The third meeting of the Interim Joint Senator Carroll said that safety of citizens expenses have been included over the past Committee on State Government was held on depends on cooperation between all law several years. Thursday, September 12, 2019, at 10:00 AM, in enforcement agencies at all levels. To allow In response to a question from Senator Room 154 of the Capitol Annex. Representative any action within Kentucky to limit that McDaniel, Ms. Barnes said that the language Jerry T. Miller, Chair, called the meeting to order, cooperation would be detrimental to safety, and regarding recurring expenses from a previous and the secretary called the roll. that is unacceptable. The Kentucky League of budget bill was not included in the current Present were: Cities (KLC) and the Kentucky School Boards budget bill. Ms. Barnes continued to say that the Members: Representatives Jerry T. Miller, Association (KSBA) have proposed changes to intent of the statute is for funds to be spent on Co-Chair, and Kevin D. Bratcher, Co-Chair; the draft legislation, and he and Representative industrial and economic development. Senators Ralph Alvarado, Denise Harper Blanton will likely agree with most of those In response to a question from Angel, Christian McDaniel, Morgan McGarvey, changes. Representative Gibbons Prunty, Ms. Barnes Robby Mills, Albert Robinson, Dan “Malano” KLC is proposing language to ensure that testified that libraries are a statutorily eligible Seum, Damon Thayer, and Johnny Ray Turner; the law will apply on a statewide basis. This use for LGEAF funds. In response to another Representatives Tina Bojanowski, Tom Burch, language addresses cooperation between all law question, Ms. Barnes stated that many counties McKenzie Cantrell, Jeffery Donohue, Jim enforcement agencies—state, local, and federal. have bought equipment to implement meals on DuPlessis, Larry Elkins, Joseph M. Fischer, Kelly It would allow law enforcement officers to ask wheels for senior centers. She also stated that Flood, Derrick Graham, Joe Graviss, Richard about the immigration status of a victim or many counties have bought exercise equipment Heath, Scott Lewis, Mary Lou Marzian, Patti witness only when the information is pertinent for senior centers. Minter, Jason Nemes, Jason Petrie, Rick Rand, to the public offense, or for the purpose of In response to a question from Senator Steve Sheldon, James Tipton, Ken Upchurch, and providing information about federal visas that West, Ms. Barnes said that the highest coal Les Yates. may protect persons who assist law enforcement. Guests: Representatives John Blanton

34 2019 Interim LEGISLATIVE RECORD It would nullify any preexisting or later-enacted Sergeant Rothermund said the legislature schools, or employees or contractors thereof, sanctuary policy that would be in violation has the ability to impact the effectiveness of law including but not limited to school resource of the law. It would allow any constitutional enforcement in the state. He believes the draft officers. The exemption also applies to the release officer or legislator to file suit to enforce the legislation sponsored by Senator Carroll and of information contained in educational records, law, whereas the original draft specifies only Representative Blanton is straightforward, and except that which conforms with federal and the governor. KLC’s proposed language would he likes the changes that have been proposed. The state FERPA law. also cover all employees of a law enforcement legislation simply addresses the ability of local Representative Donohue said that no law agency, not just the sworn officers. It would entities to continue utilizing resources as they enforcement officer in his Louisville district has eliminate the requirement for an Immigration have in the past. He said the law enforcement told him they are being impeded in the ability and Customs Enforcement (ICE) detainer if the climate in the Commonwealth will be confusing to do their job. He believes the legislation is person provides proof of citizenship or legal if sanctuary policy is not clarified at the state dangerous and can have severe consequences. immigration status. Senator Carroll said this level. Standards should be the same for cities In the city of Louisville, police officers are change will call for more discussion; he believes when requesting help from federal agencies. allowed to do their job without taking extreme the proof of citizenship or legal immigration Sanctuary status can also result in loss of federal measures. If law enforcement encounters a status would need to be verifiable. funding to local municipalities. He believes situation involving an immigrant, they handle it KLC would also add a requirement that Kentucky is somewhat “behind the curve” on the without going outside their normal line of duty. the attorney general defend any relevant actions sanctuary issue and that the proposed legislation Senator Carroll responded that protection of the brought against an agency, if requested by the is a step in the right direction. public sometimes requires extreme measures agency head, and the state would be liable Representative Blanton thanked the and cooperation and that placing limits on law for expenses or other associated cost. Senator committee for hearing the proposed legislation. enforcement can be detrimental to public safety. Carroll said the proposed legislation does not He said they are not trying to make a political Responding to questions from change current practice, and he does not see statement but rather only ask that law Representative Graham, Representative Blanton any need to change that element of the law. He enforcement across the state retain the ability said there is policy currently in place that said there are other suggested changes by KLC to do their jobs. An estimated 161 ICE-detained would impede law enforcement in regard to that are still under discussion. KSBA’s proposed persons are currently incarcerated in the the sanctuary issue. The legislation is needed to changes would consider Supreme Court case Kentucky corrections system, with an average prevent such policy from being implemented in law, the federal Family Educational Rights and sentence of 19.5 years and, for nine, a life term. the future. Senator Carroll said that KLC did not Privacy Act (FERPA), and other federal laws that The crimes include murder, manslaughter, initiate the legislation but submitted proposed might preclude this law from being enforced in assault, robbery, rape, and trafficking. They come changes after the legislation was announced. Kentucky schools. from a spectrum of countries including Mexico, With inclusion of the changes, KLC will be Senator Carroll said that many of KLC’s Honduras, and Guatemala. In closing, he said supportive of the legislation. The KLC proposal changes were compiled from the best provisions the proposed legislation does not change the included applicable research regarding laws in of similar laws that have been implemented in way business is conducted in Kentucky today. It other states. The bill under discussion today is other states. A lot of research has been involved is an attempt to get ahead of the curve on the not related to any bill that was introduced during in the endeavor, and the conversation will sanctuary policy issue. the last legislative session. Sergeant Rothermund continue. He hopes to have an updated draft of Representative Miller said he appreciates said that he is testifying on behalf of FOP the legislation completed within a week or so, the sponsors’ bringing the topic forward. He Bluegrass Lodge #4 and that it would not be followed by another round of meetings. The acknowledged that the topic is political but lodge protocol to conduct a vote relating to his provisions will continue to be tweaked to ensure believes there is general agreement on the testimony. soundness of the legislation before it is presented need for legal immigration and guest worker Representative Bechler said his BR 240 to the General Assembly. programs. There is also need for the rule of law proposes that any political subdivision, such Sergeant Rothermund stated that police and for change at the federal level. as a county or city or institutions of higher agencies, sheriff’s departments, and correctional Representative Bratcher asked how the bill learning in the Commonwealth, be precluded facilities rely on partnerships with, and resources would relate to school districts. He said he believes from having a sanctuary policy. BR 240 also provided by, federal agencies. The federal the school board in his district had indicated establishes monetary penalties for entities that partnerships are critical to the safety of Kentucky in the past that they are not going to cooperate choose to have such a policy. Currently there citizens, and the police officers that protect with local law enforcement on immigration are approximately 50,000 illegal aliens living them. Restricting valuable law enforcement issues. Senator Carroll said there will be further in Kentucky. They represent about 1.1 percent partnerships and resources based solely on study of how the bill would affect schools. of Kentucky’s total population, 3 percent of political rhetoric or agendas places entire Other states have adopted language similar to Kentucky’s total immigrant population, and communities at risk. He said he represents over the language proposed by KSBA. Schools are about 1.7 percent of Kentucky’s labor force. In 630 active police officers in Fayette County and not allowed to ask about immigration status, 1990, the illegal alien population in Kentucky has received many phone calls questioning the per a 1982 Supreme Court case, Plyler v. Doe, was estimated to be less than 5,000. By 2005, the extent to which they are allowed to work with which originated in Texas, that exempts school number was estimated at 35,000, and in 2009 federal agencies. districts, boards of education, and public charter reached its current level of approximately 50,000.

THE KENTUCKY GENERAL ASSEMBLY 35 A U.S. Government Accountability Office study Iowa, Indiana, Mississippi, Missouri, North that sanctuary policy is an issue in his district, of a sample population of 249,000 arrested Carolina, South Carolina, Tennessee, and but lately it has become a political issue. Police criminal aliens, either legal or illegal, found Texas—have laws of some type to ban sanctuary have power now to enforce the laws that are that 48 percent had been arrested for drugs; 35 cities. Georgia and Indiana include universities on the books, and it is not their job to enforce percent for assault; 21 percent for larceny, theft, in their ban. Virginia passed a sanctuary federal law. He thinks the proposed legislation fraud, forgery, or counterfeiting; 19 percent for cities law, but it was vetoed by the governor. is unchristian. He has neighbors from other weapons violations; 18 percent for burglary; 12 Alaska, Connecticut, Idaho, Kansas, Louisiana, countries, and his grandfather emigrated from percent for sex offenses; 9 percent for robbery; Maine, Massachusetts, Michigan, Minnesota, Germany. He does not believe the proposed 8 percent for homicide; and 1 percent for Montana, Nevada, New Jersey, New York, Ohio, legislation is needed and that it is not good for arson. These rates are substantially higher when Oklahoma, Pennsylvania and Rhode Island have police officers, who already have enough work compared to total arrests in the United States. also considered legislation banning sanctuary to do. Representative Bechler responded that the Representative Bechler said that sanctuary cities. While no Kentucky public university bills under discussion do not ask local police to cities enable human smugglers and cartels. Many or college has an official policy of being a enforce federal immigration policy. of the gangs currently operating in the United “sanctuary place,” there are troubling signs. At Representative Cantrell said her district States have their roots in other countries. It is Northern Kentucky University a former associate is a diverse community and that she represents estimated that about 42,500 undocumented or president of enrollment management said that a lot of immigrants. Some have been there for illegal aliens of working age reside in Kentucky, if a person qualifies for admission, they will be generations and have become citizens. Also, with almost 32,000 of them paying payroll taxes admitted, whether an international, resident, immigrants are needed in Louisville to keep the and using fraudulent social security numbers. It or undocumented student. Additionally, NKU’s economy going. She said the committee cannot is estimated that illegal aliens pay approximately Division of Latino Programs and Services see how BR 240 differs from the legislation $37 million in sales and excise taxes, individual provides resource and scholarship guides for proposed by Representative Blanton and Senator income taxes, and property taxes. However, undocumented students. At the University Carroll, because they have not provided copies one study estimated that in Kentucky state and of Kentucky there is a website created to aid of it. She also questioned why legislation is being local governments incur $225 million annually illegal alien students. The website states that debated that is antagonistic to immigrants. in costs related to the illegal population. During the university does not have need to ask for In response, Representative Blanton said he the 2011 regular session, a fiscal note for SB 6 the immigration status of any student, does not welcomes immigrants and wants them to come, presented a less troubling estimate that Kentucky keep a list, and has been a national leader in not only to help with job needs but also to spent about $33 million from the General Fund efforts to protect student privacy. In addition, have a better life. His legislation focuses on law on education and about $15.5 million on other in November 2015, a petition containing more enforcement and does not include provisions state-provided services for illegal aliens. than 1,500 signatures was delivered to President relating to universities. It is preemptive to Representative Bechler said he was Capilouto and the Provost requesting that prevent anything from happening in the future shocked to learn that a Kentucky administrative the university become a sanctuary campus. to prevent law enforcement from doing its job. regulation specifically says that illegal aliens shall The University of Louisville at one time had, It is not intended to instill fear or antagonize be charged in-state tuition. In the language of the but may no longer have, an undocumented people. Representative Bechler said that his BR administrative regulation, a person is considered student resource council that met monthly 240 does not address legal immigration. Legal a Kentucky resident regarding admission and with the stated purpose of creating solutions immigrants are welcome and needed. He is in tuition if the person graduated from a Kentucky and resources for undocumented students. In favor of immigrants coming to Kentucky, but high school and is an undocumented alien. He February 2017, Western Kentucky University they need to be here legally and follow the law. stated that this conflicts with federal law. Section passed a resolution declaring the university to Representative Bojanowski said it is her 505 of the Illegal Immigration Reform and be a sanctuary campus. Representative Bechler understanding that, with extended enforcement Immigrant Responsibility Act, codified in 1998, said that, to his knowledge, officials at Eastern of federal law, the bills would mandate local prohibits state colleges and universities from Kentucky, Kentucky State, Morehead, and jurisdictions to file either a 287(g) or a Secure allowing illegal aliens to receive in-state tuition Murray State Universities, and the Kentucky Communities agreement with the federal on the basis of residence within the state unless Community and Technical College System government and that there would be costs all U. S. citizens receive the same rate. Based on have made no public comments to support related to that. She asked about other possible data showing the number of full-time out-of- their institutions becoming sanctuary places. costs to implement the legislation, such as state undergraduate enrollees, Kentucky public Concluding his presentation, Representative increased law enforcement, potential litigation, colleges and universities could potentially be Bechler thanked the committee and stated that, and social service needs. Senator Carroll said losing over $250 million per year if Kentucky for the sake of the Commonwealth, he believes it that his and Representative Blanton’s bill only were required, as federal law indicates, to charge is time to take action and not “turn a blind eye” retains the status quo; it does not involve fees or no more to out-of-state students than in-state to the sanctuary issue. require papers to be filed. It strictly follows and students as a result of allowing illegal aliens to Representative Burch questioned how protects the policies and procedures currently attend at in-state rates. the small percentage of illegal immigrants used by law enforcement on a daily basis. The Representative Bechler said 13 states— incarcerated in Kentucky can justify the legislation is preemptive, and if not enacted, Alabama, Arizona, Arkansas, Florida, Georgia, proposed legislation. He said he has never heard there is no doubt that at some time in the future

36 2019 Interim LEGISLATIVE RECORD there will be movement to designate some cities a signal that the General Assembly supports to keep people safe in the Commonwealth as sanctuaries. Representative Bechler said that law enforcement, who have the job of keeping and ensure that the partnerships with federal BR 240 does not say there should be extended Kentuckians safe. law enforcement remain intact. Many of the enforcement of federal law. It simply requires Representative DuPlessis said he does not individuals targeted and detained by ICE also law enforcement to cooperate with immigration believe anyone present is anti-immigrant. The prey on other undocumented workers. Without officials. issue is “legal” versus “illegal” immigration. federal cooperation, police cannot protect Representative Graviss asked whether Encouraging illegal immigration negatively undocumented workers from the undocumented the Kentucky Farm Bureau, Keeneland and affects the labor pool, keeps wages down, and gang members. Churchill Downs officials, thoroughbred owners increases unemployment for those who are Representative Miller thanked the guest and breeders, farm managers, and others in the following the law. He appreciates legislators speakers for their testimony and for bringing agricultural community have been contacted who want to act to prevent rather than react to forth their proposals. He said this is just the about the legislation. Senator Carroll said they problems. He said he does not know whether he beginning of the conversation. have not. He went on to say that he believes can support Representative Blanton and Senator Proposed Legislation Relating to the illegal immigrants who are long-term and Carroll’s bill because he has not seen it yet, but Legislators Retirement Plan productive residents should be given a path to he is aware of the detrimental effects of illegal Representative Tipton discussed his BR citizenship. Kentucky’s economy is going to need immigration. 268 draft proposal relating to current and future immigrants to sustain it. The legislation would Representative Tipton said the federal legislators enrolled in the Legislators Retirement not cause more illegal immigrants to be arrested; government should have resolved the illegal Plan (LRP) and the Kentucky Employees it just protects the relationship between all law immigration issue a long time ago. He vividly Retirement System-nonhazardous plan (KERS- enforcement agencies in the need to cooperate on remembers images of the terrorist attacks on NH). He provided copies of “BR 268 Draft immigration issues. Representative Bechler said September 11, 2001, and he believes that on Proposal (Discussion Document).” he has spoken with members of the agricultural September 12 the nation may have become Representative Tipton said that BR 268 is a community in his district, which has quite a few more united than ever in his lifetime. He said he work in progress. His goal with the legislation is farms. They have H2A guest worker programs wants to publicly thank Representative Blanton, to ultimately end the Legislators Retirement Plan. in place, and spend a lot of money to make Senator Carroll, Sergeant Rothermund, and Over the years there have been questions why sure they follow the law by hiring workers who all police officers and first responders for their legislators have their own retirement plan and enter the country legally. He is not familiar with dedicated service to the Commonwealth. He why it is funded better than the other retirement 287(g) and Secure Communities agreements. appreciates the opportunity to live in a country systems. Some legislators did not prefer having Representative Graviss encouraged him to where today’s discussion can take place, and he a retirement plan but were given no choice. He become familiar with those and their potential looks forward to continuing the conversation. said when he joined the General Assembly in impact on Kentucky. Representative Miller pointed out that not 2015, he decided to participate in LRP but that Representative Marzian said she wants to only people but the rule of law are at issue. He he would have chosen differently if he knew then apologize to all documented and undocumented said he has spent time in Mexico and Honduras. what he knows now. He thanked Representative immigrants in Kentucky for the reference to The reason that a predominant number of Graviss for his input on the issue and said he them as “aliens,” a term she considers offensive. immigrants come from Honduras is because that hopes to receive input from members of the State She said undocumented immigrants are human country lacks the rule of law. In the United States Government Committee. beings that come to the United States for a better they can enjoy the ability to enforce a contract As outlined in the discussion document, life and a better education for their children. She and live without fear of police asking for a bribe. BR 268 would only impact current and future believes the legislation is political, and she finds Representative Miller asked Sergeant legislators who are members of LRP or KERS- it offensive. She was also critical of interference Rothermund whether he has ever been asked NH. It does not impact the County Employees by the General Assembly in local government by a federal agent to enforce illegal immigration Retirement System (CERS), the State Police matters. law without an underlying crime having been Retirement System (SPRS), Teachers’ Retirement Senator Thayer said he does not think committed against the state or local government. System (TRS), the Judicial Retirement Plan, or persons connected with the horse industry Sergeant Rothermund said he has not during any other members of KERS. Also, under the would oppose the legislation, because it really his 15 years as a police officer. In Lexington, proposal no funds, other than administrative does not affect them. He also noted that federal the police do not go out of their way or have expenses, shall be provided to LRP until LRP immigration law uses the term “illegal alien” the authority to seek enforcement of federal has a funding level that is equivalent or less and defines it as someone who is in the United immigration law. Statements have been made than KERS’s funding level (based upon the most States unlawfully. He believes there is broad by some local officials that begin to define a recent actuarial valuation). support for the legislation in his district and city as a sanctuary city without actually saying Under the BR 268 draft proposal, effective the state. He appreciates that the sponsors have the word. When this happens in response to a July 1, 2020, new legislators would no longer started it early. Whether it is introduced first in national political narrative, it begins to cause have the choice to either participate in LRC the House or in the Senate, he looks forward to confusion for police officers. Representative or KERS-NH but would instead participate in its quick passage in the next regular session. He Blanton and Senator Carroll’s bill would allow KERS-NH unless the member opts out of KERS think the legislation will move quickly and send police officers to continue doing their jobs coverage within 30 days of taking office. This

THE KENTUCKY GENERAL ASSEMBLY 37 would effectively close LRP to new members. General Assembly represents. Concerns have somewhat more in depth. BR 268 includes Current legislators who joined LRP on or after been raised, and BR 268 could add a provision many of the concepts that were part of SB 151, 1/1/2014 (cash balance members) would cease to reduce the benefit factor or give legislators the which was overturned by the Supreme Court. participating in LRP effective December 1, 2020, ability to opt out of the higher factor. He has not had time to finalize BR 268, but it and have their service and account balances Representative Tipton said he still has will be completed in time for the legislative transferred to KERS from LRP and would work to do on BR 268 but that Chairman Miller session. Representative Miller said BR 268 was prospectively participate in a KERS cash balance asked him to present it today to get reaction presented today at his request. Sanctuary cities account. They would also have the option to make and feedback from the committee. He has not and legislative retirement are important topics, a one-time irrevocable election to not participate yet had time to meet with representatives of and it is good to have them thoroughly vetted in KERS for service as a legislator. For legislators Kentucky Retirement Systems and the Judicial before they are filed. Representative Cantrell elected after January 1, 2014, the LRP inviolable Form Retirement System but plans to do so in encouraged Representative Tipton to review contract covers only their account balance. the near future. Representative Kay’s legislation. Current legislators who joined LRP prior Representative Miller thanked Representative Graham said he did not to 1/1/2014 (defined benefit members) would Representative Tipton for sponsoring the choose LRP as his retirement plan, but he is not in have the option to make a one-time irrevocable legislation. He said he heartily endorses its favor of doing away with retirement benefits for election to prospectively participate in KERS inclusion of funding restrictions for the LRP. legislators. He questioned why only legislators, for service as a legislators instead of LRP (past Senator Seum expressed concern that with and not state employees, would be able to opt service in LRP not impacted), or to prospectively a reduction in benefits—and in view of the out of retirement coverage, as provided in BR not participate in LRP or KERS for all future considerable amount of time legislators must 268. He is also concerned about erosion of the legislative service. The benefit factor would spend away from home—only the wealthy retirement system and having defined benefit be reduced from 2.75% to 1.97% for each year would be able to run for office in the General plans replaced with defined contribution plans. of service accrued on or after July 1, 2020, for Assembly. Representative Tipton said that issue Representative Tipton said that currently no service as a legislator. BR 268 would also modify has been raised in regard to recruiting good legislator or state employee has the option to the LRP inviolable contract to exclude future qualified candidates for the General Assembly. opt out of retirement. He confirmed that the changes to the law after July 1, 2020. He understands it is not a part-time job. He legislation does not address judicial retirement, Representative Tipton reviewed the tiers, explained, though, that the proposal does not nor does it change the hybrid cash balance plan contribution rates, interest credit, and various eliminate legislative retirement but provides that was established by SB 2 in 2013. retirement options offered for legislators who choice options for each individual. Senator Thayer said he appreciates were elected after and prior to January 1, 2014. Representative Graviss thanked Representative Tipton’s commitment to the issue. He also discussed how past legislation has Representative Tipton for working with him on Presenting a legislative proposal, without having a affected legislative retirement. HB 299, passed BR 268 and said he appreciates the discussions. specific bill, is a good approach and is appropriate in 2005, allowed the retirement benefits for It has seemed improper to him that legislators for discussion by an interim committee. He said legislators who went to work in the executive have their own retirement system and that it the public needs to understand that passage of branch to be inflated by the higher executive has been funded differently than the systems BR 268 would make a lot of people feel better, branch salary—basically spiking their pension. for state workers. He also thinks it is important but it will not make a material change in the He finds that troubling and believes that for legislators to have a sound retirement. He pension systems’ unfunded liability. It is hard constituents across the state would also find it voiced concern about potentially damaging the to explain to the public that one reason LRP is troubling. Under BR 268, salary reciprocity for foundation of the inviolable contract. He hopes well funded is because of the relatively small nonlegislative compensation earned on or after that the discussions will continue and provide number of participants. It is also not subject to July 1, 2020, would be removed for defined solid evidence that BR 268 will not damage the problems, vagaries, market disruptions, and benefit members in LRP prior to 1/1/2014, the inviolable contract, while accomplishing other issues that have led to underfunding in the and benefits at retirement would be calculated the objective to increase money going into the other systems. based on legislative salary and nonlegislative KERS-NH system. Senator Thayer said that SB 2, which he compensation earned prior to July 1, 2020. The Representative Cantrell said that some of sponsored and which passed in 2013, put all same change would apply to benefits earned by the information in BR 268 is new to her. She is new members of the legislature in a hybrid cash legislators in KERS. Legislators would still be thankful for the discussion outline but thinks balance plan just like the one that KERS and able to participate in the Deferred Compensation it would be more informative and helpful to CERS employees have been in since January program. be provided actual pieces of legislation for 1, 2014. Passage of SB 2 is starting to have the Representative Tipton said that several discussions in committee. She also asked how BR desired effect of “turning the Titanic around” years ago the benefit factor for legislators was 268 differs from legislation relating to legislative for the pension system. It is important to note increased from 1.97% to 2.75%. In light of the retirement that was introduced by former state that, since 2014, legislators have been treated current retirement funding situation, he finds representative James Kay. Representative Tipton exactly the same as members of KERS and CERS. it incomprehensible that the increase is still in said he would have to review that previous Transparency for legislative pensions has also effect. For him, it is a matter of principle and legislation. He believes there may be similarities been enacted, and information about legislators’ doing the right thing for the people that the but that BR 268 is probably more detailed and pension benefits is now accessible to anyone. He

38 2019 Interim LEGISLATIVE RECORD supports efforts by many in the General Assembly Members: Representatives James and economic benefits of early childhood to repeal the spiking initiative that allowed some Tipton, Co-Chair, and Steve Riley, Co-Chair; education. former legislators to spike their pension by going Senators C.B. Embry Jr., and Gerald A. Neal; In response to a question from Senator Neal, to work in the executive or judicial branch. He Representatives Tina Bojanowski, Randy Ms. Hampton said the preschool development said that if SB 151 had not been overturned by Bridges, Joseph M. Fischer, Kelly Flood, David grant application was built from the data and the Supreme Court on a procedural matter that Hale, Cluster Howard, Regina Huff, Bobby information gathered in the sustainability is used in every other legislature in the country, McCool, and Attica Scott. validation reports that were completed during the benefit factor for the LRP plan would have Guests: Brigitte Blom Ramsey, Executive the Race to the Top Early Learning Challenge been reduced to 1.97%. He plans to sponsor a bill Director, Prichard Academy for Academic Grant process. for structural reform of TRS, which is needed in Excellence; Perry Papka, Deputy Director, Kentucky Department of Education order to make a material change in unfunded Prichard Committee for Academic Excellence; Bill Buchanan, Charles Harman, and liability in the pension systems. He said he wants Mike Nemes, Deputy Secretary, Education Dr. Lewis gave a presentation focusing on to go on record that the General Assembly has and Workforce Development Cabinet; Linda kindergarten and state-funded preschool. tried to address problems in the pension systems, Hampton, Executive Director, Early Childhood In response to a question from Senator succeeding in some areas but failing in others. Advisory Council; John Roden, Chair, Early Neal, Dr. Lewis said kindergarten is funded He appreciates the comprehensive approach Childhood Advisory Council; Bill Buchanan, at half-day. However, the majority of districts in BR 268. It includes many provisions that are Early Learning Liaison, Office of Special provide full-day kindergarten. To pay for full- worthy of consideration in the 2020 regular Education and Early Learning, Division of IDEA day kindergarten districts are subsidizing the session, and he looks forward as a member of the Implementation and Preschool; Charles Harman, increased cost with local funds. Dr. Lewis Senate State and Local Government Committee Director, Office of Finance and Operations, added that, beginning next year, districts will to working with Representative Tipton. He also Division of Budget and Financial Management, be submitting applications for non-competitive commended him for his work on HB 1 during Kentucky Department of Education. grants to fund public preschool services. the 2019 special session. LRC Staff: Chuck Truesdell, Jennifer In response to a question from Chair Riley, Representative DuPlessis said that Krieger, Seth Dawson, and Amie Elam Mr. Harman said that moving from 160 percent Representative Tipton has done a great job with Prichard Committee for Academic of the poverty level to 200 percent would be an BR 268 and that he appreciates working from a Excellence increase of $17 million. Mr. Buchanan said at bullet point list rather than a bill. This allows the Brigitte Blom Ramsey and Perry Papka, least four districts in Kentucky do not offer full- interim committee to help form legislation before Prichard Academy for Academic Excellence, day kindergarten. the session begins in January—which is one of gave a presentation regarding the importance of In response to a question from the main purposes of interim joint committees. early childhood investments. Representative Tipton, Mr. Harman said that Representative Tipton thanked everyone In response to a question from KDE will provide the committee with data from for their participation and encouraged them to Representative McCool, Ms. Blom Ramsey said each district regarding the cost of going from contact him if they have questions or comments. that grandparents are able to access the childcare half-day to full-day kindergarten. He said legislative retirement is a bipartisan issue subsidy and public preschool dollars. She added There being no further business to come on which everyone should work together. a child is eligible for the services regardless of before the committee, the meeting was adjourned Representative Miller announced that who their caretaker is. at 11:58 a.m. the next meeting will be October 3. Business In response to a question from Representative concluded, and the meeting was adjourned at Tipton, Ms. Blom Ramsey said the freeze in INTERIM JOINT COMMITTEE ON 12:05 p.m. subsidy allowance for families and a drop in the AGRICULTURE eligibility level left many families without a way Minutes of the 3rd Meeting to pay for childcare. Many childcare facilities had of the 2019 Interim INTERIM JOINT COMMITTEE ON September 9, 2019 APPROPRIATIONS AND REVENUE to close as a result of parents no longer being able Budget Review Subcommittee on Education to afford services. Call to Order and Roll Call Minutes of the 3rd Meeting In response to a question from The 3rd meeting of the Interim Joint of the 2019 Interim Representative Bojanowski, Ms. Blom Ramsey Committee on Agriculture was held on Monday, September 10, 2019 said the Prichard Committee believes that September 9, 2019, at 10:00 AM, in Room 154 Call to Order and Roll Call education should take on a holistic approach. She of the Capitol Annex. Representative Richard The 3rd meeting of the Budget Review stated that high quality learning environments Heath, Chair, called the meeting to order, and Subcommittee on Education of the Interim Joint understand the importance of developing the secretary called the roll. Committee on Appropriations and Revenue social and emotional skills, both early on and Present were: was held on Tuesday, September 10, 2019, at throughout postsecondary education. Members: Senator Paul Hornback, Co- 10:00 AM, in Room 154 of the Capitol Annex. Education and Workforce Development Chair; Representative Richard Heath, Co-Chair; Representative Steve Riley, Chair, called the Cabinet Senators David P. Givens, Stan Humphries, Robby meeting to order, and the secretary called the Mike Nemes, Linda Hampton, and John Mills, Dennis Parrett, Damon Thayer, Robin L. roll. Roden gave a presentation regarding the financial Webb, Stephen West, and Whitney Westerfield; Present were: THE KENTUCKY GENERAL ASSEMBLY 39 Representatives Myron Dossett, Kelly Flood, Joe while nationally, most of the milk goes into one location at Eastern Kentucky University. Graviss, Mark Hart, Kim King, Matthew Koch, the production of cheese. Kentucky has three In response to Senator Thayer, Mr. Barlow Phillip Pratt, Rick Rand, Brandon Reed, Rob fluid dairy processing plants and four product stated that he did not know where the distilleries Rothenburger, Steven Rudy, Dean Schamore, processors. were getting their supply of dairy products to John Sims Jr, Wilson Stone, Nancy Tate, Walker Liquidation of dairies, diminishing profits, add to their bourbon cream products. He agreed Thomas, James Tipton, Susan Westrom, and Les loss of infrastructure (large animal veterinarians that a local source of milk would be good for the Yates. and the closing of dairy supply companies), Kentucky dairy industry. Guests: H.H. Barlow, Executive Director, lack of markets, loss of fluid milk consumption, In response to Representative King, Mr. Kentucky Dairy Development Council, and Laura and loss of dairy farm equity are some of the Barlow said that each school system bids out Knoth, Kentucky Corn Growers Association. main challenges for Kentucky’s dairy industry. for their milk supplies. He said he did not know LRC Staff: Stefan Kasacavage, Kelly Kentucky produces only half of what the about the universities. Ludwig, Nathan Smith, and Susan Spoonamore, processing capacity is, so a lot of milk is shipped In response to Representative Stone, Mr. Committee Assistant. into Kentucky. Once the new processing plant in Barlow said that the milk pricing market is a The August 22, 2019 minutes were Michigan goes online, it should open up the milk complicated system and states are split into approved, by voice vote, upon motion made by market in Kentucky. territories. Kentucky is not under the component Representative Reed and seconded by Senator Kentucky has an abundance of natural pricing index that includes being paid for Thayer. resources, ideal environmental conditions, and protein in the milk, which is the main building Overview of the Kentucky Dairy Industry strong market potential. Dairies can act as a block for cheese. This would have to be changed H.H. Barlow, Executive Director, Kentucky strong economic engine for rural communities. under Federal Order hearings and KDDC is very Dairy Development Council (KDDC), stated One cow can produce enough milk to bring interested in seeing the federal pricing system that KDDC actively pursues education, promotes in $4,000 per year. According to a Wisconsin changed. and represents dairy farmers, and fosters an study, each cow contributes over $14,000 to the In response to Senator Webb, Mr. Barlow environment of growth for the Kentucky dairy local economy. Kentucky’s strongest tool for said it is a problem dealing with animal welfare industry. The KDDC’s Board of Directors dairies reaching their potential is the Kentucky organizations that do not understand certain comprises 20 members; 12 dairy farmers and Dairy Development Council (KDDC). It is the practices in the dairy industry, such as dehorning. eight allied industry representatives. The KDDC only organization in the state that focuses on In response to Senator West, Mr. Barlow is funded through a grant provided by the the dairy industry. The mission of the KDDC explained that the University of Kentucky is Kentucky Agricultural Development Fund along is to educate, promote, and represent dairy selling the Coldstream dairy farm in order to with dues paid by allied industry organizations farmers in order to maintain the industry as a acquire land in Lexington for campus expansion. and advertising receipts from the Kentucky leading agricultural economic engine for rural The landswap is a result of an agreement with the Milk Matters Newsletter. KDDC also receives Kentucky. In addition to several other KDDC Lexington-Fayette Urban County Government. donations from individuals and dairy farmers. programs, the Young Dairy Farmer Initiative The dairy professors are concerned about the The KDDC Dairy Consultant Program’s primary program is important to the future of the program, as getting a student to drive 40 miles purpose is to provide manpower to implement industry. Through the Milk Incentive Leadership to Eastern Kentucky University might be a and facilitate programs. Kentucky Program (MILK), over $8 million problem. There is something to be said for Mr. Barlow explained that nationally, in has been paid directly to producers who had to hands-on experience. There is no talk about 1997, there were 110,000 dairy farmers, and meet certain goals. A producer can be paid up moving the UK Dairy to other areas in or nearer milk production was approximately 168 billion to $12,000 per farm. Half of the $8 million came to Lexington. pounds. In 2017 the number of dairy farmers from the Agricultural Development Fund and In response to Senator West, Mr. Barlow dropped to 40,000 but milk production increased the processing industry matched those funds. said if some of the federal rules could be changed to 218 billion pounds. He said that in 2005 The KDDC has four dairy consultants; three of it would help Kentucky dairy farmers. Kentucky Kentucky had 1,500 dairy farmers and presently the four owned and operated dairy farms and dairy farmers are frustrated and have talked there are only 500 still in business. The largest the fourth worked in dairy processing. Their about leaving the federal system. dairy farm is in Logan County, Kentucky where knowledge and experience is valuable to the In response to Representative Westrom, there are 2,300 cows. future success of the dairy industry in Kentucky. Mr. Barlow said that $190 million worth of He stated that improved efficiency in milk Mr. Barlow said that the liquidation of dairy milk was produced in Kentucky last year. Even production had created an excess in the milk farms had slowed down and things should get with fewer dairies, the number of cows on supply. In 2018, the increased milk supply better. There is still a lot of work ahead to keep farms has increased. He said genetics, nutrition, caused farmers in Wisconsin and New York to the dairy industry from declining, but KDDC is and technology have helped milk production pour their milk out because there was nowhere committed to making the industry a success. efficiency. to send it for processing. He said that due to the Mr. Barlow explained that the University of In response to Representative Tipton, Mr. oversupply of milk, depressed milk prices, and Kentucky sold the research dairy farm, and the Barlow asked that the committee send a letter or closing of processing plants, 19 Kentucky dairy dairy has to be closed by 2021. KDDC is working resolution to our Kentucky Congressmen urging farms were forced to liquidate last year. Kentucky with the University of Kentucky and Eastern them to pass the United States-Mexico-Canada milk has mostly been sold for fluid consumption, Kentucky University to merge the dairies into Agreement (USMCA). It is vital to the dairy

40 2019 Interim LEGISLATIVE RECORD industry to have this agreement in place. export more grain products, meat, poultry, INTERIM JOINT COMMITTEE In response to Representative Tipton, Mr. dairy products, and ethanol. Kentucky exports ON NATURAL RESOURCES AND Barlow said that dairy farmers do need a federal approximately 10 percent of its grain crop -- ENERGY guest worker program. Representative Tipton nationally that number is 25 percent. She said Minutes of the 4th Meeting noted that the National Holstein Convention that over half of Kentucky’s grain crops go to of the 2019 Interim would be held in Lexington in 2023. livestock and poultry. September 10, 2019 Senator Hornback said that a guest worker In response to Senator Hornback, Ms. Call to Order and Roll Call program for dairy would need to be different Knoth said 35 to 40 percent of Kentucky’s corn The 4th meeting of the Interim Joint from other programs. Dairy farmers need help goes into the ethanol market. She explained Committee on Natural Resources and Energy 365 days a year. He also explained that Kentucky that the by-products from ethanol comes back was held on Tuesday, September 10, 2019, at 3:00 is a deficit state in milk production. Kentucky in the form of dry distillers grain, corn oil, and PM, in Room 154 of the Capitol Annex. Senator Brandon Smith, Chair, called the meeting to has to ship milk in and farmers pay for those the CO2 is used at a dry ice facility. Kentucky is shipments. sending approximately 10 percent of its corn to order, and the secretary called the roll. In response to Senator Hornback, Mr. the ethanol industry and 10 to 15 percent to the Present were: Barlow said labeling for alternative milk products bourbon industry. Members: Senator Brandon Smith, Co- needs to be addressed. In response to Representative Tipton, Ms. Chair; Representative Jim Gooch Jr., Co-Chair; In response to Senator Givens, Mr. Barlow Knoth said that E-85 fuel can only be used Senators Jared Carpenter, Matt Castlen, C.B. stated that farmers need to do a better job of in flex-fuel vehicles. She said that Kentucky Embry Jr., Paul Hornback, Robby Mills, Reginald telling the story of animal agriculture. He said Corn Growers’ Association and the national Thomas, Johnny Ray Turner, Robin L. Webb, and that out of every 100 pounds of milk sold, 15 association are meeting on a regular basis with Phillip Wheeler; Representatives John Blanton, cents goes into promotion. He said that KDDC the American auto industry, the renewable Adam Bowling, Terri Branham Clark, R. Travis could start organizing farm tours for school fuels industry, and the petroleum industry. Brenda, Randy Bridges, Jim DuPlessis, Daniel children. Higher blends are expected in order to meet fuel Elliott, Chris Fugate, Angie Hatton, Derek Discussion on Renewable Fuel Standard- standards of today’s engines. Ms. Knoth also said Lewis, Suzanne Miles, Melinda Gibbons Prunty, Renewable Volume Obligation that the Grain and Forage Center of Excellence Cherlynn Stevenson, and Rob Wiederstein. Ms. Laura Knoth, Kentucky Corn Growers’ has the best researchers for increasing grain Guests: Bruce Scott, Deputy Secretary, Association, said that the United States production in the future. Energy and Environment Cabinet (EEC); Environmental Protection Agency (EPA) is now In response to Representative Flood, Ms. Tony Hatton, Commissioner, Department for allowing the sale of E-15. The EPA recently waived Knoth said that Kentucky had not been able to Environmental Protection, EEC; Jon Maybriar, Renewable Volume Obligations (RVO) to small export grains to China for the last three or four Director, Division of Waste Management, EEC; refineries. In doing so, the waivers will have dire years. She said that not exporting to China had Dan Bock, Landscape Architect, Operations and consequences for the farmers in Kentucky and nothing to do with the current administration. Readiness Division, Huntington District United the United States. The Kentucky Corn Growers’ China decided not to accept grain exports because States Army Corps of Engineers (USACE); Association, representing over 5,000 corn farm of hybrids and traits that had not been approved Rodney Holbrook, Resource Manager, Fishtrap families, sent a letter to the EPA commenting on in China. China cut some contracts because Lake, USACE; and Dr. Rick Honaker, Professor the proposed rule for the 2020 volumes. The letter of price. She said that Kentucky corn growers and Chair, Department of Mining Engineering, contained recommendations about adjusting the want trade on all fronts, but right now they are University of Kentucky. 2020 RVO percentages, remand and restore the focusing on every other market available. Ms. LRC Staff: Stefan Kasacavage, Janine Coy- 500 million gallons missing from the 2016 RVO, Knoth explained that Japan was the number one Geeslin, Tanya Monsanto, and Rachel Hartley. and develop a plan for reallocating the renewable importer of wheat and beef and number two for Litter and Illegal Open Dump Cleanup fuel blending volumes. corn and pork. Japan has been a longtime partner Programs In response to Representative Schamore, Ms. for American exports. Ms. Knoth stated that the Tony Hatton stated the Litter Abatement Knoth said all of agriculture is in a tough situation United States-Mexico-Canada Agreement is the Grant Program (LAGP) within the Kentucky right now. Grain farmers are experiencing a 40 most important issue on their agenda. Mexico is Pride Fund (KPF) was established with the passage to 50 percent decrease of prices in the last few the number one market for corn, and Canada is of HB 174 in 2002. The Kentucky Department years. She said there are several contributing the number one export market for ethanol. of Transportation transfers $5,000,000 annually factors for the reduced demand of corn such as Senator Hornback stated that he believes to KPF for LAGP. The funds are distributed to large crops and trade disruptions. there were several factors for not shipping corn counties based on road miles, total population, Ms. Knoth explained that on her recent to China: one being the price and the other being and rural population. Cities may apply for a trip to Japan, the group met with international that China stole intellectual property pertaining portion of the funding. The funding is used for importers/buyers of U.S. beef and pork. Japan to agriculture technology and corn varieties. direct expenses associated with litter cleanup is experiencing a meat boom and is finding U.S. Meeting adjourned. and litter prevention education. The recipients meat products to be of the highest quality. of the funds must report all expenses annually, In response to Representative Stone, Ms. and unspent funds must be returned. From 2003 Knoth said that the United States needs to to 2018, total litter expenditures of grant funding

THE KENTUCKY GENERAL ASSEMBLY 41 plus additional spending by cities and counties annual volunteer lake cleanup. DuPlessis, Dr. Honaker stated REEs have a very were $126,302,172. Rare Earth Element Recovery from low concentration of radioactive materials. The Illegal Open Dump Grant Program was Kentucky Coal Sources In response to a question from Senator established with the passage of SB 50 in 2006. It Dr. Rick Honaker stated the majority of rare Thomas, Dr. Honaker stated REEs are used to is supported by the Environmental Remediation earth elements (REEs) are located in China, which produce a lot of materials used by the Department Fee of $1.75 per ton of landfill waste within the impacts manufacturing costs. Manufacturing is a of Defense. KPF. A portion of the funds must be used for large part of Kentucky’s economy. REEs are used There being no further business, the meeting orphaned landfills. The total grant expenditures in manufacturing phones and batteries. was adjourned. from 2006 to 2018 were $18,839,206. Researchers at the Massachusetts Institute In response to a question from Senator of Technology estimated that in 2010 the world Smith, Bruce Scott stated the EEC does not have consumption of REEs was 125,000 tons annually, the number of litter fines issued in 2018. EEC and China supplied 74,000 tons annually. China INTERIM JOINT COMMITTEE ON does not have litter enforcement authority. There purchases REEs from other countries and EDUCATION are statutes that provide enforcement authority controls the majority of the resources. The United Minutes of the 4th Meeting to state police (KRS Chapter 433) and to local States uses approximately 10,000 to 12,000 tons of the 2019 Interim government authorities (KRS Chapter 512). The REEs annually. September 11, 2019 EEC has had discussions to create a website for The worldwide number of electric vehicles Call to Order and Roll Call anonymous reporting of littering. Jon Maybriar is expected to increase from around $4,000,000 The 4th meeting of the Interim Joint stated investigating the origin of litter is a safety today to $400,000,000 by 2040 and will require Committee on Education was held on issue. an increase of REE production of around 60,000 Wednesday, September 11, 2019, at 1:00 p.m., In response to a question from tons annually. in Room 149 of the Capitol Annex. Senator Max Representative Blanton, Mr. Scott stated local In 2014, the University of Kentucky Wise, Chair, called the meeting to order, and the governments use digital media for public conducted a study and found the total amount secretary called the roll. awareness about littering. of REEs contained in the coarse refuse generated Present were: In response to a question from from 20 active coal preparation plants. The total Members: Senator Max Wise, Co-Chair; Representative DuPlessis, Mr. Hatton stated amount of REEs in the course refuse would Representative Regina Huff, Co-Chair; Senators there are counties that do not participate in the generate 50 percent of the annual demand for Jimmy Higdon, Alice Forgy Kerr, Stephen grant funding. REEs in the United States. Kentucky has more Meredith, Reginald Thomas, Johnny Ray In response to a question from Representative than 50 coal preparation plants and could meet Turner, and Stephen West; Representatives Tina Lewis, Mr. Scott stated solid waste coordinators the need for REEs in the United States. Bojanowski, R. Travis Brenda, Randy Bridges, in some counties have other job responsibilities There is an REE pilot plant, funded by the Jeffery Donohue, Mark Hart, Scott Lewis, Mary that impact their output. Department of Energy, in Providence, Kentucky. Lou Marzian, Reginald Meeks, Charles Miller, Jon Maybriar stated in 2015 a large sewage The plant processes REEs from coal and coal Kimberly Poore Moser, Melinda Gibbons leak into Big Sandy River in Virginia impacted byproducts in Kentucky. The pilot plant has Prunty, Steve Riley, Attica Scott, John Sims Jr, Fishtrap Lake in Pike County and brought been successful in creating a concentrate that James Tipton, Russell Webber, and Lisa Willner. attention to the ongoing problem of excessive is 99 percent pure REEs material. Based on a Guests: Robbie Fletcher, Lawrence County floating debris restricting the use of the lake. preliminary assessment of a single hypothetical Schools. The Division of Waste Management (DWM) has REE recovery plant, the plant could generate LRC Staff: Jo Carole Ellis, Joshua Collins, been working on a solution. In 2018, DWM met $6,000,000 in state and federal income tax per Lauren Busch, and Maurya Allen. with Pike County officials and USACE to devise year and create 50 new jobs. Chair Wise welcomed members and a cleanup plan. In response to a question from Senator guests to the meeting. Following his welcoming Drift and Debris Management Plan for Webb, Dr. Honaker stated there are security remarks, he led those present in a moment of Fishtrap Lake protocols to protect the intellectual property of silence in remembrance of Patriot Day and those Rodney Holbrook stated the majority of the this new technology. lost in the events of September 11, 2001. debris in Fishtrap Lake comes from Virginia, In response to a question from Approval of Minutes because 95 percent of the watershed is located Representative Elliott, Dr. Honaker stated REEs Representative Tipton made a motion to there. The majority of the waste is naturally are recycled by dissolving and reconcentrating approve the minutes as written. Senator Kerr occurring debris from trees and beaver dams. the material. The process is very expensive. seconded. The motion passed by voice vote. COE signed an agreement with Pike Large companies, such as Lexmark and Apple, Child Abuse and Neglect Awareness and County Fiscal Court in February of 2019 to are interested in recycling REEs. Prevention utilize a $126,000,000 grant from the state. Two In response to a question from Representative Senator Rick Girdler was present with guests phases of the cleanup have been completed. Gooch, Dr. Honaker stated China could stop Amanda Underwood, teacher, Boyle County Two additional phases of cleanup will start in selling REEs anytime and manufacture the final Middle School and, by teleconference, Jenna September 2019 and January 2020. There is also product. Quinn, Child Abuse Prevention Advocate. Also an agreement with Kentucky Pride to conduct In response to a question from Representative present were students Kennedy Aulick, Addison Woodard, and Brooklyn Rockhold from Boyle

42 2019 Interim LEGISLATIVE RECORD County Middle School. Senator Girdler told 27 percent. Every year, approximately 15 more child abuse and neglect this year. We know about the committee that this topic was brought to Kentucky students per 1000 will experience the severity and the monetary costs, and we have his attention by this group of students and their abuse, and this number has steadily increased a plan to follow which has been proven to be work informed Senate Joint Resolution 38 in the since 2013. effective in other states. Now is the time to act. 2019 Regular Session. Ms. Underwood explained Kennedy Aulick spoke about the personal Chair Wise thanked the students and Ms. that the students’ proposal to implement a child experience of a friend, Alex, who was the victim Quinn for their powerful testimony on this abuse awareness and prevention education of child abuse from his father. She explained that critical issue facing Kentucky students. program grew from coursework performed in friends and classmates are 10 times more likely to Senator Kerr thanked the presenters for their extracurricular classes on leadership in report abuse than the victim. Educating students their bravery and also asked why the legislature Y-Club. Ms. Quinn spoke briefly about her work on how to report suspected abuse is critical to has waited so long to address this issue. She to end child abuse prompted by her own history increase reporting and stop abuse. To address spoke about bringing similar legislation twice as a survivor of child sexual abuse. She said as fears that committee members may have about before the General Assembly, once as testimony many as one in four girls and as many as one in increasing false reports, Ms. Aulick said that only before the committee and once before six boys are sexually abused before age 18. As there is a slight increase in reporting the first two Senate leadership. At the time, leadership felt the many as 42 million individuals are living today years after such legislation is enacted; however, it topic was too unsavory. But as a survivor of child with the trauma of childhood sexual abuse, drops off and stabilizes after that initial period. abuse herself, Senator Kerr is passionate about which is great and is carried long into adulthood. Additionally, false reports account for only two this topic and hopes to see legislation make Victims are three times more likely to suffer to eight percent of total reports, and little to no more progress in the upcoming session, as it has depression, six times more likely to experience additional cost will result from implementation of bipartisan support. Ms. Underwood thanked post-traumatic stress disorder, 13 times more this education which is already readily available the Senator for sharing her personal stories and likely to abuse alcohol, 26 times more likely for schools. The Catholic schools in Louisville, agreed it has gone on far too long. Kentucky to abuse drugs, and four times more likely to Kentucky, already implement a program called leads the nation in number of children being attempt suicide. The economy is impacted from “Speak Up, Be Safe” that could be shared with abused and this needs to be addressed. these issues which are mostly covered by the public schools. Representative Willner spoke to the taxpayer, averaging approximately $830,000 Brooklyn Rockhold spoke of her own isolation felt by children who suffer abuse and per victim over a lifetime, through increased experiences as the victim of child abuse from the urgency of providing education about bodily healthcare costs, criminal justice costs, and many her father. She shared how her mother strove autonomy, safety, and healthy relationships to all other hidden costs. Children are predominately to protect her and her siblings, but abuse children. abused by individuals whom they know and occurred on mandatory visits with her father Representative Gibbons Prunty also shared trust, making it very unlikely that they will and his family. It was only after several years and her history as a survivor of child sexual abuse and report the abuse. It could take years to report the increased education about the signs of abuse that asked for the data shown during the presentation abuse. Ms. Quinn said that thankfully, research she was able to fully identify her father’s actions to be provided to members of the committee. indicates that up to 95 percent of child sexual towards herself, her siblings, and her mother In response to a question from abuse is preventable through proper education. If as abuse. Currently 28 states across the nation Representative Riley, the students agreed that students are educated in body safety and creating have some form of childhood abuse education Child Abuse Awareness and Prevention Day open communication pathways, which are age legislation. The legislation also encourages often falls during Spring Break and encouraged and developmentally appropriate, they are much Kentucky schools to recognize April 6th each schools to recognize it on any day near that date more likely to report abuse and get help. She year as Child Abuse Awareness and Prevention when students are in school. informed members that Senate Bill 68 of the Day. Kentucky children deserve to know they are Representative Bojanowski said she felt 2019 Regular Session was a bill to implement not alone and that child abuse is not acceptable April 6th may be too late into the school year to child sexual abuse awareness education in under any situation. raise proper awareness. Ms. Underwood said she Kentucky public schools, and she hopes to see it Ms. Underwood shared the story of one of had worked closely with the Catholic schools make more progress towards passage in 2020. her students who had behavior issues and an IEP in Louisville who implement the “Speak Up, Be Addison Woodard shared the story of an requiring special assistance. As a teacher, she Safe” program twice a year in their schools and individual, Allison, who was abused and did not knew how to assist this student for those issues, provide a more intensive program in high school report it. She also shared statistics from several but she did not know how to recognize the signs theology classes. She would encourage any research groups that illustrated the prevalence of abuse the child was experiencing at home. and every school to implement an appropriate of child abuse and the dramatic increase in Teachers have an obligation to report, but without curriculum as soon as possible and as early as dropout rates and suicide attempts by abused proper training in recognizing the signs of child possible. children. There are 22 victims for every 1000 abuse, it is difficult to know what to report. Improving Teacher Recruitment, children in Kentucky. The national average is Increasing the awareness of potential reporters Retainment, and Quality nine victims for every 1000 children, making and making it easier for abused children to share Dr. Jim Flynn, Executive Director, Kentucky our Commonwealth the highest in the nation. their stories addresses the growing epidemic on Association of School Superintendents was Between 2013 and 2017, the number of child two additional fronts. Continuing the current present with Barry Lee, Director of Special abuse victims in Kentucky grew by more than trends, Kentucky will exceed 35,000 cases of Education, Casey County Schools; Dr. Robbie

THE KENTUCKY GENERAL ASSEMBLY 43 Fletcher, Superintendent, Lawrence County being filled with alternative certifications. he is hiring are wonderful and dedicated, but they Schools; Patricia Shepherd, Superintendent, Additionally, there are also nearly a quarter are untrained and lack skills that are necessary to Union County Schools; and Dr. Robin Cochran, of her teachers with less than four years of do the job well. He would love to see more ways Superintendent, Washington County Schools to experience. This kind of high turnover has to get instructional prep courses into the schools speak regarding teacher recruitment, retainment, resulted in a very inexperienced staff and for teachers who have been emergency certified and quality. Dr. Flynn stated that since April little mentorship opportunities. Working to in order to get them the best preparation they there have been over 2,000 vacancies posted entice any individual with a bachelor’s degree can have going forward. on the Kentucky Educators Placement Service into the classroom has been a key factor in Dr. Flynn said we need to change the website, a resource used by most school districts closing the teacher gap. However, there have narrative around the profession of teaching to post and fill vacancies. Unfortunately, many of been great needs in instructional education because it is foundational to all other professions. those remained open when school started. This for emergency certified teachers who have Even while debating policy issues, the career path problem needs to be immediately addressed or expertise but no classroom management skills. needs to be seen as desirable. This has been done students will continue to suffer. The numbers of She said the district utilizes monthly training before for vocational professions, now rebranded students entering teacher preparatory courses is modules to bring new teachers together with as career and technical education. There are so also declining, with even more dramatic declines veteran teachers or administration to share many ways to attract the best and brightest in completion rates for those students. This is a pedagogy and methods because emergency to the classroom and provide the supports of very rewarding and meaningful profession, but certified individuals do not have that delivery mentorship and onboarding. Reducing or it needs a competitive salary with appropriate of education experience. She also partners with eliminating unfunded mandates and paperwork benefits and safe work environments. The tools local community colleges to encourage students helps as well to increase the attractiveness of the and resources should also be available to teachers who are getting their associate degrees to teaching profession. to do the best they can for students and to expand continue into a teaching program. This and other Chair Wise said this is a timely issue for all their own skills with professional development. opportunities are incentivized with scholarships professions, but especially for teaching, because Ongoing mentoring from experienced teachers and salary increases. To increase retention she without teachers there would be no doctors, and support from their administrative bodies is would like to see an increase in salary for those law enforcement officers, and other critical important to increase teacher retainment and teachers with higher rank and greater experience. professions. Telling the stories of those coming success. These increases were partially funded through from outside the profession and now succeeding Dr. Fletcher spoke about the 20 districts he community partnerships and local tax increases. in the classroom is a valuable tool. represents in the eastern part of the state. Among Dr. Cochran spoke about also using the Responding to questions from those, only two have all of their positions filled. alternative pathways to certification in order Representative Tipton, Dr. Fletcher said he In the other 18 districts, there are 63 unfilled to get teachers for even elementary physical had spoken with other superintendents from or emergency certified positions ranging education courses. She thanked the legislature the central regions and all are experiencing from special needs, to math, science, language for their work toward funding scholarships for dramatic declines in applicants, but rural areas arts, physical education, and early childhood. STEM but that effort needs to be mirrored for do experience intense need because of low Emergency certification can only be used if education. It is a high demand sector as much population density. He spoke of the need to there are no available certified or qualified as the other manufacturing and industrial areas recruit and hire locally or keep individuals applicants for a position. In the past 15 years, targeted with the Work Ready Scholarship. She local. The highest need is for teachers in special he has seen the number of applicants for an also said that using lay individuals who are not needs but also in the sciences and mathematics. open elementary position go from 20 applicants trained in teaching will also make it difficult for Physical education is also a surprisingly high to only two or three. Many districts are doing schools to reach the achievement goals set by need area. Representative Tipton spoke to the the best they can with what they have and are the new assessment and accountability system. high cost of postsecondary education and the limiting options for enrichment courses, such as As a parent and an educator, she does not want high level of student loan debt that teachers carry. Advanced Placement, just to meet the needs of her children to be taught all year by a substitute Increasing or implementing more scholarships courses required for graduation. Other districts or by a computer. They deserve better and the for teaching could be a valuable tool towards are resorting to online offerings in order to bring teachers deserve to have the resources they need teacher recruitment. core course material to students in areas such to help their students succeed. She spoke very In response to a question from as science and mathematics. There have also highly of the Ed Rising program and its ability Representative Miller, Mr. Lee said that career been incentives for dual credit course teachers to encourage students to look at education as a and technical pathways have seen a dramatic and increased use of alternative pathways for meaningful and viable profession. increase, primarily due to the use of dual credit teaching certification. Teach for America has Mr. Lee said he was only able to hire a math that students can use towards certifications. brought a dozen teachers into his region, but teacher this week, six weeks into the school year. However, if dual credit was used more for only three have stayed in the teaching profession, Currently, there are several openings still unfilled general education courses, then the credit would and only one has stayed in the mountain region. in both elective courses and in foundational be applicable toward a teaching certificate and Ms. Shepherd said her districts have filled courses. He spoke to the uncertainty of having therefore reduce the higher education cost positions using largely alternative certification, students in the classroom with instructors who burden for teachers. There would also be a way with up to 28 percent of her district openings do not have teaching certificates. The individuals for students to perform their apprenticeships

44 2019 Interim LEGISLATIVE RECORD and job shadowing within their school system. learners, but it is not as effective or desirable Chair Wise spoke briefly about the impact of Again, it is critical to work locally to address for all students in core content areas. Dr. Flynn Senate Bill 1 from the 2017 Regular Session which local needs. echoed that statement that virtual education is was a ‘let teachers teach’ bill, and is still being Senator Meredith said there is more work not right for every student. implemented. As a result of its implementation, to do to reduce the red tape and bureaucracy Representative Donohue spoke to some of the issues raised today may already be regarding the teaching profession. It is also critical the difference in classroom culture among improving. We just need more time to see the to stop the narrative of there being governmental students today versus when he was a student. impact of that legislation. He reminded members animosity toward teachers. Dr. Fletcher agreed it He encouraged the panel to look to their that the next meeting of the committee will be is vital to work together to move education and communities and use their understanding of the October 2, 2019, at 1 p.m. in Annex Room 149. the Commonwealth forward. Senator Meredith local culture to improve the image of the teaching With no further business to come before the also said it is necessary that we stop teaching profession and increase teacher recruitment. committee, the meeting adjourned at 3:10 p.m. students for a profession but teach them to be Responding to questions from Senator good people, part of which may be addressing West, Dr. Flynn said there is a single certified INTERIM JOINT COMMITTEE ON the classroom environment. salary schedule that applies to all teachers TOURISM, SMALL BUSINESS, AND Representative Riley spoke to how alarming across the Commonwealth. There are ways to INFORMATION TECHNOLOGY the statistics are regarding teaching shortages but increase these salaries, however, through the Minutes of the 4th Meeting how it is critical that we speak of all professions, use of stipends and bonuses for things such of the 2019 Interim especially teaching, with kindness and respect. as extra duty assignments and teaching dual September 12, 2019 Responding to questions and statements credit courses. Each school board establishes Call to Order and Roll Call from Representative Bojanowski, Dr. Flynn said the salary schedule that will be used in their The 4th meeting of the Interim Joint there has been a lot of talk from current teachers district, usually based on teacher rank, but it can Committee on Tourism, Small Business, and regarding the pension funding issue, but little include the bonuses and stipends a district may Information Technology was held on Thursday, actual retirement or resignation as a result. Many use to incentivize different duty assignments. September 12, 2019, at 3:00 PM, in Room 154 teachers are taking a “wait-and-see” approach. Dr. Flynn said Fayette County was particularly of the Capitol Annex. Senator Danny Carroll, Dr. Flynn advises that the conversation be creative in their hiring practices to address Chair, called the meeting to order, and the elevated and to have structure and respectful teacher shortages. Dr. Cochran said there are secretary called the roll. attitudes as all interested parties try to resolve opportunities to get more pay through stipends, Present were: the pension crisis issue. but that comes with extra work. In order to Members: Senator Danny Carroll, Co- Chair Wise said he would like to see a survey increase pay across the board, there needs to be Chair; Representative Tommy Turner, Co-Chair; performed of students in education training more base-line funding for districts. Senators Perry B. Clark, Rick Girdler, Ernie programs to better understand their reasons for In response to questions from Representative Harris, Alice Forgy Kerr, Reginald Thomas, going into teaching. He feels it might be useful Brenda, Mr. Lee agreed the need for substitute and Max Wise; Representatives Lynn Bechler, to know the reasons in order to understand how teachers is even more critical than that for Terri Branham Clark, Jeffery Donohue, Deanna best to encourage others to enter the field. classroom teachers. Dr. Flynn said it is important Frazier, Chris Freeland, Chris Fugate, Robert Responding to questions from to look at the ways to incentivize education and Goforth, Jim Gooch Jr., David Hale, Richard Representative Gibbons Prunty, Mr. Lee said make it as easy as possible to get qualified, well- Heath, Kim King, Bobby McCool, Michael there are some cyclical trends in shortages trained educators. Refining the pathways to Meredith, Charles Miller, Ruth Ann Palumbo, per content area, but right now it is a much certification and personalizing the education Brandon Reed, Steve Sheldon, Maria Sorolis, more widespread shortage across the board. of those coming into the classroom from non- Cherlynn Stevenson, Ashley Tackett Laferty, Rob Representative Gibbons Prunty requested some traditional pathways was strongly encouraged Wiederstein, and Les Yates. more research to support that statement. She by the panel. Dr. Cochran also shared that her Guests: Senator Whitney Westerfield and spoke to the wide amount of misinformation district has offered scholarship opportunities to Kristina Joyce, State Director, Kentucky Small about teaching and about legislation regarding encourage those with emergency certification to Business Development Center the education profession. Politics needs to get further their teaching education. LRC Staff: Andrew Manno, Chip Smith, out of the classroom and everyone needs to be Responding to questions from Candice Messer, and Sasche Allen more supportive of teachers. Representative Hart, Dr. Flynn agreed that letting Security of Connected Devices and In response to a question from Senator the teachers teach and relieving regulations and Telecommunications Location Data Higdon, Dr. Fletcher said his district is using an high stakes assessments would help teachers as Legislation online program to deliver content, however, it well as improving the learning environment for Senator Whitney Westerfield explained that requires the students to be independent learners. students. He shared that it is important to teach laws pertaining to cyber security are limited In one instance, he has an 83-year-old volunteer students where they are, but policies currently and have not caught up with the technological who also is studying nightly in order to assist in place may have an unintended consequence advancements of today’s society. The only students in biology, which is a core education of undermining teachers and preventing them data related laws in the Commonwealth relate requirement. Use of online instruction delivery from reaching that goal of teaching the whole to private and public sector data breach is excellent for specialized content for advanced child. notifications, but there are no time limits on when an individual should be notified about THE KENTUCKY GENERAL ASSEMBLY 45 a breach of their information. The European must abide by. He also said he is not aware of KSBDC’s economic impact included almost Union enacted the General Data Protection anything that the Federal Communications 500 new business starts, 3,400 created jobs, and Regulation (GDPR) in 2018 that governs every Commission or the Federal Trade Commission clients have received over $2 million in capital company and digital service in the EU even if it has done to address these issues. There should infusion. Current partners that aid the KSBDC is not based in the EU. It gives the citizens of the not be a hindrance of technological innovation, include Morehead State University, Southeast EU a right to delete information and provides but there should be regulations that protect Kentucky Community and Technical College, privacy regulations. Vermont passed data broker consumers. and Northern Kentucky University. Due to opt-out legislation in 2018. In 2019 Connecticut Representative Kim King gave the example decreases in funding, after September 2019, created a task force to study what data should be of talking about a specific product while her Northern Kentucky University and Western protected, and Illinois restricted the use of DNA cell phone was nearby and then receiving Kentucky University’s contracts will end. information acquired through companies such advertisements on her phone’s applications As a relatively new director of the KSBDC, as 23andMe and AncestryDNA. In addition, about that same product. Senator Westerfield Ms. Joyce created a strategic plan for the California’s Consumer Privacy Act goes into said that although his two bills would not KSBDC that included increasing relevancy, effect in 2020 that creates some of the same address that type of issue, instances such as that promoting value, maximizing resources, and rights as the GDPR. should be discussed from a policy and regulation strengthening network sustainability. The Senate Bill 195 from the 2019 Regular standpoint. increased presence and relevancy of the KSBDC Session deals with the security of connected Replying to Senator Ernie Harris, Senator across the state is needed to advance business devices and the “internet of things”. The “internet Westerfield explained that state boundaries success. The organization needs to be positioned of things” is the interconnection of computing would not be an issue. A company would have as the leading source of valued guidance for devices via the internet that are embedded to abide by whatever regulations or statutes entrepreneurs and businesses. The KSBDC will in everyday technological devices which are Kentucky has adopted. continue to effectively utilize resources, tools, enabled to send and receive information. There Addressing Representative Steve Sheldon, and technology to maximize client success. will be about 30 billion connected devices by Senator Westerfield stated that data mining in Lastly, the organization plans to grow and 2020. These internet connected devices include the healthcare industry does exist. He also said expand collaborative relationships with key computers, phones, televisions, thermostats, that there are not necessarily any companies that stakeholders such as additional educational refrigerators, medical equipment, transportation he knows of that being intentionally nefarious, institutions, economic development partners, systems, and countless others. The manufacturers but they are taking advantage of the fact there and chambers of commerce to strengthen and of these devices collect all of a person’s data and are not any concrete regulations pertaining to diversify funding. Ms. Joyce concluded her information whether the user realizes it or not. the security of devices, location data, or other presentation by showing a video about one of This is important to note because Kentucky related issues. KSBDC’s clients. has no laws governing who stores and controls Representative Terri Branham Clark gave Responding to Co-Chair Danny Carroll, consumer data collected; the security level or an example similar to Representative Kim King’s Ms. Joyce said she is impressed by the resources length of time the data is stored; or what types of and said that legislators should use caution available for small businesses in Kentucky, companies can buy and sell consumer data. around their devices due to the nature of their but she thinks there needs to be increased Senator Westerfield said he was motived work. communication between small business to file Senate Bill 243 in the 2019 Regular Kentucky Small Business Development providers. There are opportunities that can be Session after learning that wireless carriers were Center cultivated in areas across the state that have faced collecting location data about their users and The Kentucky Small Business Development challenges that can be small business driven. then selling that information to third parties, Center (KSBDC) is funded in part through Answering a question from Representative arguably without the consent of the consumer. a cooperative agreement with the U.S. Small Kim King, Ms. Joyce said the KSBDC was able He gave the example of a free online site that Business Administration and is hosted by the to assist the client in the video that was shown, allows anyone to look up every internet router University of Kentucky College of Agriculture, Tree of the Field, by helping with a strategic that has ever been mapped anywhere that is Food, and Environment. The organization plan, a business plan, a pitch for investors, and still active. This would make it fairly simple to is a cash match program and funds that are connected her with other resources. identify a person based strictly on their router invested are leveraged with additional resources usage. Senator Westfield said these bills may not to establish centers. As of October 1, there will There being no further business, the meeting address all areas of the security of connected only be nine locations throughout the state. The adjourned at 4:25 p.m. devices or telecommunications location data, KSBDC helps small businesses start, grow, and but these are two issues that need to be governed succeed through technical assistance, training, INTERIM JOINT COMMITTEE ON for the privacy and safety of the citizens of the education, and referrals. KSBDC will assess a JUDICIARY Commonwealth. business’s needs and chart a plan of action. It Minutes of the 4th Meeting Responding to Co-Chair Danny Carroll, also offers entrepreneurs help with business of the 2019 Interim Senator Whitney Westerfield said that at the plans, assistance with applying for a loan, market September 13, 2019 federal level there are guidelines for companies research, or connections with additional small Call to Order and Roll Call but no regulations or statutes that an organization business resources. From 2015 to 2018 the The 4th meeting of the Interim Joint

46 2019 Interim LEGISLATIVE RECORD Committee on Judiciary was held on Friday, management. The goal of case triage is to move building upon conversations started by the September 13, 2019, at 10:00 AM, in Room less complex cases through the system quickly. Racial Fairness Commission, a public listening 154 of the Capitol Annex. Senator Whitney Case management emphasizes the judge’s role session was held in Jefferson County on May Westerfield, Chair, called the meeting to order, in moving cases forward rather than attorneys 16, followed by a series of focus groups on bail and the secretary called the roll. and other parties. The Civil Justice Reform and incarceration, evictions, Family Court, Drug Present were: Commission recommended a limited pilot Court and expungements. Members: Senator Whitney Westerfield, project that would focus on a case triage and Chief Justice Minton noted the move to Co-Chair; Representative Jason Petrie, Co- case management system that would provide for electronic records. KYeCourts launched KY3 Chair; Senators Danny Carroll, John Schickel, mandatory use of a uniform civil case cover sheet this year in eight pilot counties in an effort to Dan “Malano” Seum, Robert Stivers II, Robin to allow for early identification of case types, use improve court operations through updated L. Webb, Stephen West, and Phillip Wheeler; of a streamlined case management approach for technology. KY3 allows clerks to scan and store Representatives Kevin D. Bratcher, McKenzie simple contract disputes, use of separate docket documents digitally. The Electronic Court Record Cantrell, Daniel Elliott, Angie Hatton, Joni L. calls for streamlined cases, and use of telephonic Committee was created to produce new rules to Jenkins, Stan Lee, Derek Lewis, Chad McCoy, scheduling and status conferences. govern the creation and availability of electronic Reginald Meeks, Patti Minter, Kimberly Poore Chief Justice Minton noted that the Court court records to availability while protecting the Moser, Jason Nemes, Brandon Reed, and Maria Efficiency Committee began meeting in 2018 privacy of the personal information contained Sorolis. to address and identify issues that lead to court within. Guests: Chief Justice John D. Minton, Jr., delays. The committee has met with Laura The Administrative Office of the Courts Kentucky Supreme Court; Deputy Chief Justice Sudkamp, director of the Kentucky State Police (AOC) Department of Family & Juvenile Lisabeth Hughes, Kentucky Supreme Court; Forensic Laboratory System, to discuss delays in Services is administering the Open Courts Pilot Laurie Dudgeon, Director of the Administrative processing toxicology and forensic lab reports. Project, which opens child protection cases to Office of the Courts; John Meyers, Executive The committee has also reviewed internal the public from 2018-2021 in selected counties. Director of the Kentucky Bar Association; Chris procedures for notifying judges of their pending The first annual report from AOC was released Cohron, Commonwealth’s Attorney for the 8th cases relevant to the 90-day submission rule, the in September of 2018. The second phase of this Judicial Circuit; Rob Sanders, Commonwealth’s Court of Appeals and Supreme Court pending pilot project will start this fall in Fayette Family Attorney for the 16th Judicial Circuit; Martin case reports and time frames for disposition, and Court. Hatfield, Pulaski County Attorney; Damon the 48-hour presentation rule in criminal cases. Chief Justice Minton highlighted the court Preston, Public Advocate for the Department Judicial redistricting continues in system’s effort to help mitigate Kentucky’s drug of Public Advocacy; Rebecca Ballard DiLoreto, preparation of the caseload study to be performed epidemic. A three-year Regional Judicial Opioid Legislative Agent for the Kentucky Association in 2020. To ensure that proposals for judicial Initiative (RJOI) addresses the need for education, of Criminal Defense Lawyers. redistricting or reallocation are based on current resources, and services. The first year focused on LRC Staff: Katie Comstock, Alice Lyon, data, the study is to be conducted every eight best practices, child welfare, prescription drug Chandani Kemper, Dale Hardy, Matt Trebelhorn, years. In January of 2019, the Judicial Workload monitoring, treatment capacity, and research. The Raleigh Dixon, and Yvonne Beghtol. Assessment Committee held their first meeting second year produced resources for judges when Approval of the Minutes and requested that “Delphi” meetings be held to evaluating treatment options. The third year will Senator Schickel made a motion to approve provide a qualitative assessment of the results of include the implementation of teleservices and the August 23, 2019 minutes, seconded by the judicial time study. The National Center for other online resources for judges. Representative Petrie, and passed by voice vote. State Courts will facilitate the Delphi meeting in Responsive Education to Support Treatment State of the Judiciary October of 2019. Results will determine if a new in Opioid Recovery Efforts (RESTORE) was Chief Justice John D. Minton, Jr. of the judicial time study is needed, or if the time study created in 2019 to provide evidence-based Kentucky Supreme Court presented the 2019 conducted in 2015 can be used. If determined information on best court practices to support State of the Judiciary Address. The Supreme Court necessary, recommendations will be made to the treatment of opioid use disorders for adopted the Civil Justice Reform Commission’s the General Assembly before the 2021 legislative court-involved individuals and their families. recommendation for a Business Court Docket session. Through RESTORE, AOC is offering two one- pilot to begin in Jefferson County. A Business Chief Justice Minton highlighted that a day summits; one in the summer and one in Court Docket Advisory Committee was created community engagement listening session was the fall, in seven locations throughout the state. to develop eligibility criteria and to draft a set held in Jefferson County and that the Jefferson The summits help court officials understand of rules. The Business Court Docket is expected County Racial Fairness Commission has issued substance use disorders. to be up and running on January 1, 2020. Chief four reports since its inception: sentencing, bail, The Drug Court experiment began in 1996, Justice Minton highlighted the Supreme Court’s jury selection, and courtroom environment. serving only high-risk, high-need individuals civil justice reform initiative to address concerns While group surveys indicate a favorable who had been convicted of a non-violent regarding the cost, delay, and complexity of civil perception of the Jefferson County judicial felony and entered Drug Court through a plea litigation. system, African Americans believe both race and agreement or referral. The current model is not The Civil Justice Reform Commission financial status affect how parties are treated. designed to support the influx of people coming has also focused on case triage and case Following the lead of the National Center and into the courts with lesser charges. These court-

THE KENTUCKY GENERAL ASSEMBLY 47 involved individuals, their families, and their Association (KBA) is responsible for lawyer Docket Program in Kenton County. The Heroin communities would benefit from access to case discipline but the Supreme Court has the Expedited Addiction Recovery and Treatment management resources and treatment providers ultimate authority to disbar the lawyer. The (HEART) Program was established in an effort at every level of the court system. The Kentucky Kentucky Lawyer Assistance Program is in place to move defendants out of jail custody and into Supreme Court is working on a budget request to to protect the public by maintaining the integrity drug treatment as quickly as possible. Defendants address these issues. of the profession. John Meyers, Executive held on possession of a controlled substance Chief Justice Minton agrees that the court Director of the KBA, stated that the KBA will are released on their own recognizance if they system needs to be at the table when addressing receive the complaint and investigate without it agree to go into recommended treatment. Public solutions to the overcrowding of jails and bail being public knowledge until it reaches a higher transportation picks them up from the jail and reform. level charge authorized by the KBA’s Inquiry transfers them to drug treatment. The Rocket Chief Justice Minton informed the Commission. That hearing may lead to public Docket Program is now servicing the cases of committee that Kentucky still lags behind most discipline. Deputy Chief Justice Lisabeth Hughes 8,000 defendants per year across the state. states in judicial salaries, and believes this affects added that there is a temporary suspension rule Mr. Cohron added that the deferred attracting and retaining a well-qualified bench. for instances that contain a level of emergency. prosecution statute needs amending as there In response to the recent audit, AOC Mr. Meyers stated that a complaint can come is no meaningful supervision at the District implemented a new organizational structure that from different sources. Court level. In addition, drug intervention at the took effect in May of 2019. An Audit Oversight Regarding Senator Stivers question on Juvenile Court level is so important. Committee is also being created to review the number and cost of drug court cases, In response to Chairman Petrie, Mr. Sanders internal audits and authorize annual internal Chief Justice Minton verified that there are assured the committee that Rocket Docket audit plans. approximately 2,500 cases per year and the cost funding is revoked or denied to programs that do In response to Chairman Westerfield, Chief has been funded by federal grants and the state not meet grant requirements. Mr. Cohron added Justice Minton said that Judge John McCarty budget. Ms. Dudgeon added that looking at a that the Rocket Docket grant requires constant handles DUI Court in Hancock, Butler, Ohio, different funding model may be necessary. There reporting to ensure the program is not being and Edmonson counties through a federal grant, is also a need for probation services for District used as a means of leverage for plea bargains. which is about to expire. Court clients. Mr. Sanders noted that Rocket Docket funds In response to Chairman Westerfield’s In response to Chairman Westerfield, Ms. only pay one employee salary for data collection, question on behalf of Senator Schroder, Laurie Dudgeon stated that approximately 2,400 of the making it difficult to meet all data requests. Dudgeon, Director of the Administrative Office 2,500 participants throughout all the specialty In response to Senator Webb, Mr. Cohron of the Courts, said Jefferson County had a court courts are in drug court. agrees that some plea deals may be revoked if the process in which judges would take calls on In response to Representative Cantrell, person does not participate in Rocket Docket, emergency custody orders. The process has been Chief Justice Minton stated that the jury selection but it is a voluntary program. Mr. Sanders added changed to issue those as an electronic warrant, procedure is being reviewed to make sure there that each circuit is different and there are ways to with an electronically signed affidavit, presented is a random selection of peers. work around some of those situations. to judges from cabinet workers, and returned to Prosecutorial Issues and Concerns: In response to Representative Moser, Mr. the cabinet. Commonwealth’s Attorneys Sanders stated there is no meaningful supervision In response to Representative Bratcher, Chris Cohron, Commonwealth’s Attorney for deferred prosecution for misdemeanors and Chief Justice Minton said that Kentucky’s law for the 8th Judicial Circuit, announced the that those on probation are not sent back to schools operate on their own. The Supreme approval of the FY19 Rocket Docket report. prison without due cause. Court is responsible for the credentialing of Money allocated to the Rocket Docket Program In response to Senator West, Mr. Sanders lawyers, administering the bar examination, and in FY19 allows for 41 circuits to create their stated that the qualifications to be a law coordinate with the law schools on the topics own program. Since the inception of the Rocket enforcement officer in Kentucky are not very that will be tested. Docket Program in 2015, there has been a cost high. Therefore, Mr. Sanders is hesitant to allow In response to Senator Wheeler, Chief Justice savings of $100 million and cases are being officers to make the determination as to whether Minton said there are many qualified candidates evaluated to find an alternative to incarceration treatment or incarceration should be allowed. applying for judicial openings, which helps keep while still ensuring public safety. Mr. Cohron Looking at other states, such as Ohio, that offer Kentucky competitive with other states. stated that the goal in Warren County is to have treatment in lieu of prosecution is recommended. In response to Representative Nemes, a treatment plan for the individual by the time Mr. Cohron added that there is not enough data Chief Justice Minton stated that because budget of the preliminary hearing, which moves cases to start such a program. The liability to those reductions led to the removal of Family Drug through the system more quickly, lowering jail officers would be exponential. Courts, he plans to submit a budget request to costs and increasing public safety. He would Mr. Cohron highlighted an article expand Family Drug Courts across the state. like to see the program codified as a part of discussing individuals in the criminal justice In response to Senator Stivers, Chief the unified prosecutorial system, allowing the system that are incompetent to stand trial but Justice Minton stated that the Supreme Court program to expand to all 57 circuits. not committable. He noted that defendants has obligations under the constitution for the Rob Sanders, Commonwealth’s Attorney for found barely competent to stand trial end up credentialing of lawyers. The Kentucky Bar the 16th Judicial Circuit, spoke about the Rocket going to prison when they need to be in a mental

48 2019 Interim LEGISLATIVE RECORD health facility. He stated that this loophole needs guilty and admits his or her guilt. to help them turn their lives around. Since they to be closed. Mr. Sanders stated he is handling a Mr. Preston advocated for a bill that would are of the age to procreate, this will also have a similar case right now. allow juries upon convicting a defendant of a positive effect on the next generation. In response to Senator Carroll, Mr. Cohron class D felony, to reduce the Class D felony to Adjournment suggests turning a Department of Corrections a Class A misdemeanor if a felony conviction Chairman Westerfield reminded members institution into a small lockdown in-patient would be “unduly harsh.” He also advocated for of the October 4th meeting. There being no treatment center. Senator Carroll offered any the passage of bills like 2019 HB 388, 389, and further business the meeting adjourned at 1:00 assistance needed to help remedy this situation. 390. pm. Prosecutorial Issues and Concerns: In response to Chairman Westerfield, Mr. County Attorneys Preston clarified that a jury could reduce an INTERIM JOINT COMMITTEE ON Martin Hatfield, Pulaski County Attorney, offense, even if given an instruction on a lesser APPROPRIATIONS AND REVENUE addressed the needs of District Courts in included offense, because they had already been Budget Review Subcommittee on regards to pretrial release, search warrants in found guilty of a Class D felony and had just Transportation DUI investigations, child support guidelines come back for sentencing. Minutes of the 5th Meeting of the 2019 Interim and budgeting, and County Attorney lawsuits. In response to Senator Carroll, Mr. Preston October 1, 2019 More cases are seen at a District Court level than confirmed that a public defender can be called Call to Order and Roll Call the Circuit Court level. Mr. Hatfield pushed for upon arrest, without the court appointing the The fifth meeting of the Budget Review funding at the District Court level, which would public defender, because the individual has the Subcommittee on Transportation of the Interim lessen the burden on Circuit Courts. He also noted right to counsel at that time. Joint Committee on Appropriations and Revenue that the County Attorney Association supported Criminal Defense Issues and Concerns: was held on Tuesday, October 1, 2019, at 10:00 the Ignition Interlock legislation. However, the Kentucky Association of Criminal Defense AM, in Room 131 of the Capitol Annex. Senator association would like to see the search warrant Lawyers Jimmy Higdon, Chair, called the meeting to language that was removed in the House passed Rebecca Ballard DiLoreto, Legislative order, and the secretary called the roll. this session. Mr. Hatfield also gave testimony Agent for the Kentucky Association of Criminal Present were: on a lawsuit where he and other county officials Defense Lawyers (KACDL), stated that pretrial Members: Senator Jimmy Higdon, Co- are being sued and the state is not providing release exists to protect the individual against Chair; Senators Christian McDaniel and Robin a defense. He recommended amending KRS the power of the state. Studies show that those L. Webb; Representatives Chris Fugate, Thomas 65.2005 to provide representation for officials incarcerated at pretrial are more likely to be Huff, John Sims Jr, and Ken Upchurch. who are sued due to performing prosecutorial found guilty, because they are locked up. This Guests: Heather Stout, Executive duties, when there is no insurance coverage. leads to collateral consequences such as loss of Director, Office of Information Technology, KY In response to Senator Carroll, Mr. Hatfield jobs and families. Ms. DiLoreto suggested three Transportation Cabinet (KYTC); John Eiler, stated that the association is not aware of any remedies to be considered by the committee: 1) Project Manager, KAVIS System, KYTC; Jon issues regarding criminal records being brought guide courts not to use cash bail as a means to Wilcoxson, Assistant State Highway Engineer, before juries in misdemeanor trials, so they have keep people incarcerated when they can be safely KYTC; John Chilton, State Budget Director, not taken any action on the topic, but he will released and will return; 2) implement a clear Office of State Budget Director (OSBD); Janice check into it. and convincing evidence standard; and 3) a fast Tomes, Deputy State Budget Director, OSBD; Criminal Defense Issues and Concerns: and speedy trial right. and, Andrew McNeill, Director, Americans for Department of Public Advocacy Ms. DiLoreto highlighted several other Prosperity. Damon Preston, Public Advocate, provided concerns such as the need for guidance from LRC Staff: Justin Perry and Spring Emerson. members with the Department of Public the legislature that Probation and Parole are to KAVIS System Advocacy’s 2019 FY Annual Report for them to consider what the conviction was, not all of the Heather Stout and John Eiler provided a review. Mr. Preston stated that Department of offender’s prior allegations. In addition, District brief presentation and update of the Kentucky Public Advocacy (DPA) continues to help with Courts do not have the resources they need to Automated Vehicle Information System the expungement clinics throughout the state. supervise those on probation and possession (KAVIS). Though Criminal Justice Reform is discussed, he of marijuana needs to be regulated but not In response to a question from Chair noted that 31 legislative changes in 2019 added criminalized. Further, she noted that those Higdon, Ms. Stout said there is an upcharge crimes, increased penalties, or expanded the incarcerated between the ages of 18-25 should when drivers’ licenses are paid for with credit elements of crimes. In addition, the strangulation not be treated the same as the adult population cards. bill data from June 27, 2019 to September 6, 2019 and that KACDL would like to see the death In response to a question from Senator shows that DPA has already handled 84 charges. penalty applications reduced, if not abolished. In McDaniel regarding the possibility of removing Mr. Preston believes that trials help the addition, the application of civil asset forfeiture the Real ID system from the county clerks’ offices, system. Only one out of 300 DPA cases go to trial, needs to be reviewed. Ms. Stout said they will provide that information largely due to the high risk for the defendant. Mr. In response to Senator Carroll, Ms. DiLoreto to the committee at a later date. There is a plan Preston noted that those who are innocent and believes that focusing on the 18-25 age group is a to extend the KAVIS team to become the drivers’ convicted will serve more time than if a person is moral imperative. She stated that we have a duty license replacement team, as well as to replace THE KENTUCKY GENERAL ASSEMBLY 49 the mainframe system, which will provide more how much in the Road Fund is spent on AMUs INTERIM JOINT COMMITTEE ON flexibility with how those systems are handled and pension payments. APPROPRIATIONS AND REVENUE in the future. The Department of Homeland In response to a question from Senator Budget Review Subcommittee on Human Security does not currently permit the function Webb regarding the generation of revenue, Resources of uploading documents directly to the Real ID Mr. Chilton said the Consensus Forecasting Minutes of the 3rd Meeting of the 2019 Interim system, but that could change. Chair Higdon Group (CFG) will produce an official revenue September 10, 2019 commented that passport renewals can be done estimate in December. He added that the OSBD Call to Order and Roll Call online, even though the initial application for a is currently working on a tax expenditure report The 3rd meeting of the Budget Review passport cannot. for release in November. Subcommittee on Human Resources of the In response to a question from Representative Interim Joint Committee on Appropriations and Sims, Mr. Eiler said the KYTC has visited county Highway Maintenance Revenue was held on Tuesday, September 10, clerks’ offices in almost every county in the Jon Wilcoxson, Assistant State Highway 2019, at 10:00 AM, in Room 129 of the Capitol state to observe the transition to the Real ID Engineer, KYTC, provided an overview of Annex. Senator Matt Castlen, Chair, called the system. There are other ways to engage county the Department of Highways, Maintenance meeting to order, and the secretary called the clerks, such as the working groups that come to Department. roll. Frankfort for training and hands-on experience In response to questions from Chair Present were: with the system that provide feedback. Higdon, Mr. Wilcoxson said there are no Members: Senator Matt Castlen, Co- In response to questions from Senator retirement costs for contractors. He said he Chair; Representative Danny Bentley, Co- Webb, Ms. Stout said no extra costs to agencies cannot attempt to predict the winter forecast. Chair; Senators Morgan McGarvey and Stephen are anticipated, and due to the streamlining Chair Higdon complimented the Elizabethtown Meredith; Representatives Adam Bowling, functions, they may realize a savings, or at least highway district for their quick response to a Kimberly Poore Moser, Melinda Gibbons Prunty, remain neutral. With the new system having five bridge closure on the Bluegrass Parkway and the Russell Webber, and Susan Westrom. years of data rather than only one year, it may necessary diversion of traffic through Bardstown. Guests: Shannon Gadd, Commissioner, help identify the occurrence of tax fraud and Mr. Wilcoxson said District 4 personnel did an Department for Aging and Independent Living help eliminate the use of fraudulent temporary impressive job. (DAIL), Cabinet for Health and Family Services tags. Communication and data sharing with In response to a request from Senator Webb (CHFS); Janet Hall, Director, Division of other agencies could carry over to criminal regarding rest areas, Mr. Wilcoxson agreed Operations and Support, DAIL, CHFS; Tonia investigations, as well as assist car dealers with to provide more information at a later date, Wells, Director, Division of Guardianship, sales transactions. including a breakdown of their status, as well as DAIL, CHFS; Brad Nunn, Vice President, In response to a question from what is needed to eliminate the truck parking Kentucky Pediatric Cancer Research Trust Fund; Representative Huff regarding liens on vehicles issue at Mt. Sterling. In response to a question Dr. Eric Durbin, Director, Kentucky Cancer and the necessary paperwork involved, Ms. Stout from Chair Higdon regarding corporate Registry; Dr. John D’Orazio, Chief of Pediatric said the new system has resulted in a reduction of sponsorship at rest areas and welcome centers, Hematology and Oncology, University of the time required to process the documentation Mr. Wilcoxson said they may be able to generate Kentucky Health Care; Dr. Ashok Raj, Chief of so that it takes days instead of weeks. some revenue, but not as much as one might Pediatric Hematology and Oncology, University In response to a question from Chair expect. of Louisville Novak Center for Children’s Health; Higdon regarding the scan code on the drivers’ In response to questions from Chair Ryan Womack, Pediatric Cancer Survivor; and license, Mr. Eiler said the barcode is linked to Higdon regarding guard rails, Mr. Wilcoxson Evan Jones, Pediatric Cancer Survivor. only the secure information that is found on the said in some cases, federal guidelines require the LRC Staff: Miriam Fordham, Kevin front of the card. Chair Higdon commented that replacement of an entire section, rather than just Newton, and Benjamin Thompson citizens need to be properly informed in order to a portion of it. Update on Status of Guardianship prevent panic. Ms. Stout said issues with the new Adjournment Program Caseloads and Funding system will be worked out before the October There being no further business before the Commissioner Gadd presented an update 2020 federal deadline. subcommittee, a motion for adjournment was on the Guardianship Program and its funding. Road Fund Appropriations made by Representative Upchurch, seconded by In response to questions from Representative John Chilton, State Budget Director, OSBD, Senator Webb, and the meeting was adjourned Westrom, Commissioner Gadd stated that and Janice Tomes, Deputy State Budget Director, at 11:39 AM. the 2018 RS HB 200 provided funding for ten OSBD, presented information outlining Road additional social workers in the Department Fund appropriations within the state biennial for Aging and Independent Living (DAIL). budget. Commissioner Gadd noted that to achieve In response to a question from Senator the recommended ratio of one social worker McDaniel, Mr. Chilton agreed to provide to twenty cases, DAIL would need around 240 information to the committee at a later date additional social workers. Ms. Wells stated that of regarding the percent of the Kentucky State the ten additional social workers that were hired, Police agency budget in the Road Fund, as well as two of them have a bachelors or master’s degree

50 2019 Interim LEGISLATIVE RECORD in social work. Commissioner Gadd noted that tanks results in leaks of crude oil, bottom sludge, DAIL does not hire private contractors to work and produced brine water from the site. The guardianship cases because DAIL doesn’t have leaks cause contamination of soil and water. The the financial resources to pay them. abandoned sites reduce property values, limit the In response to questions from Representative INTERIM JOINT COMMITTEE use of the land, and impact agriculture. Gibbons Prunty, Ms. Hall stated that a reasonable ON NATURAL RESOURCES AND KASTOW is to be completed in two phases. ratio for fiduciary benefit caseloads would be one ENERGY The first phase involves cleanup of 10 pilot project to one hundred. Minutes of the 5th Meeting sites to develop site scope templates for varying In response to questions from Co-Chair of the 2019 Interim tank facility layouts and to gain experience in Bentley, Commissioner Gadd said her two goals October 1, 2019 procedures. The second phase involves grouping for DAIL are to improve the culture among Call to Order and Roll Call cleanups by region. workers and to increase partnerships with The 5th meeting of the Interim Joint Mr. Hatfield described the process of tank communities. Committee on Natural Resources and Energy was site reclamation and provided a brief overview In response to questions from Representative held on Tuesday, October 1, 2019, at 3:00 PM, in of the 10 pilot site projects. The focus of the first Moser, Commissioner Gadd stated that Room 154 of the Capitol Annex. Representative year was the cleanup of abandoned storage tanks, guardianship case workers do much outside of Jim Gooch Jr., Chair, called the meeting to order, and there are plans to expand the orphan well the normal scope of a social worker. and the secretary called the roll. cleanup in the second year if funding is provided In response to questions from Senator Present were: in the biennial budget. Meredith, Commissioner Gadd noted that Members: Senator Brandon Smith, Co- In response to a question from general research supports the idea that increasing Chair; Representative Jim Gooch Jr., Co-Chair; Representative Miles, Secretary Snavely stated the number of social workers, therefore reducing Senators C.B. Embry Jr., John Schickel, Reginald the funding for the projects came from the caseloads, would lead to overall cost reductions Thomas, Johnny Ray Turner, Robin L. Webb, Equipment Revolving Loan Program within the for the state. and Phillip Wheeler; Representatives Charles Division of Conservation. Mr. Hatfield stated In response to questions from Chair Castlen, Booker, Adam Bowling, R. Travis Brenda, Randy the sites are considered abandoned, because Commissioner Gadd said that DAIL has an open Bridges, Chris Fugate, Derek Lewis, Suzanne there is no identified responsible party. There door policy, with no way to decline guardianship Miles, Josie Raymond, Cherlynn Stevenson, and is a provision for cost-recovery if a responsible of an individual who has had his or her rights Rob Wiederstein. party is identified. 2015 SB 186 specified the removed by the courts. Guests: Charles Snavely, Secretary, Energy scope of work for reclamation, but no funding In response to a question from and Environment Cabinet (EEC); and Dennis mechanism was provided. Representative Westrom, Ms. Wells stated Hatfield, Director, Division of Oil and Gas, EEC. In response to a question from Senator that although DAIL utilizes realtors when an LRC Staff: Stefan Kasacavage, Janine Wheeler, Secretary Snavely stated there are many individual under guardianship has property to Coy-Geeslin, Tanya Monsanto, and Susan abandoned storage tanks that predate oil and gas be sold, case workers are responsible for any Spoonamore. well drilling regulations. The oil and gas rights preparatory work to be done on the property Update on the Implementation of 2019 were leased by individuals with mineral rights prior to sale. HB 199 Relating to the Cleanup of Orphan and not large land holding companies. The oil Approval of Minutes Wells and Abandoned Storage Tanks and gas rights were not severed in the same way Representative Gibbons Prunty made the Dennis Hatfield stated since 1990, the as coal rights. motion to approve the minutes from the August Division of Oil and Gas (DOG) has operated Representative Gooch stated there is a 20, 2019 meeting, seconded by Representative a well plugging program for orphaned wells difference in opinion regarding the unmined Moser, and the minutes were approved without that prioritized well closures based on their mineral tax in western Kentucky. The small objection. environmental and safety impact. DOG had landowners have mineral rights, but the land Funding for Pediatric Cancer Research limited funding and created a state bid program. may never be mined. Mr. Nunn, along with Dr. Durbin, Dr. Charles Snavely stated 2019 HB 199 created There being no further business, the meeting D’Orazio, and Dr. Raj provided information the Kentucky Abandoned Storage Tank and was adjourned. on pediatric cancer rates in Kentucky, and the Orphan Well Reclamation Program (KASTOW) studies being done to improve treatment and and authorized the use of existing EEC funds for TASK FORCE ON ELECTRONIC outcomes for those suffering from pediatric cleanup. Mr. Hatfield estimated the financial liability RECORDING OF OFFICIAL cancer. DOCUMENTS BY COUNTY In response to questions from Co-Chair for plugging of orphan wells is approximately $72 million and the financial liability to remove and CLERKS Bentley, Dr. D’Orazio noted that it takes several Minutes of the 3rd Meeting hours for mithramycin to be fully metabolized. cleanup abandoned storage tanks is unknown. of the 2019 Interim There being no further business before the KASTOW will require reauthorization of October 2, 2019 subcommittee, the meeting was adjourned at funding through the biennial budget process and Call to Order and Roll Call 11:19 AM. will need a minimum of $1.5 million a year. The 3rd meeting of the Task Force on The degradation of abandoned storage Electronic Recording of Official Documents by

THE KENTUCKY GENERAL ASSEMBLY 51 County Clerks was held on Wednesday, October percentage of transactions that will take place in office is working on draft regulations and should 2, 2019, at 11:00 AM, in Room 171 of the Capitol the counties that will be ready is another factor have a copy for review by the next task force Annex. Representative Joseph M. Fischer, Chair, to consider. Don Blevins, Fayette County Clerk, meeting. Ms. Stamper advised that the burden called the meeting to order, and the secretary stated that, while he does not believe many should be on the filer to ensure the current called the roll. counties will be ready to go live by January 1, regulations are followed, whether papered out or Present were: 2010, the bill passed in Session 2019 allows clerks sent electronically to a county clerk. Mr. Blevins Members: Representative Joseph M. Fischer, to paper out an electronic filing. Mr. Blevins also added that there is no authority to dictate what Co-Chair; Senator Stephen West; Representatives mentioned that smaller counties may be ready the margin requirements are at this time. The Angie Hatton and Brandon Reed; Don Blevins, before larger counties due to having software County Clerk Association will most likely adopt Michael Chodos (via audio), Debbie Donnelly, that already has the capability to accept e-filings. PRIA as is, and then promulgate that to the filers. Brent Eisele, Russell Ford, Erica Galyon, Branden Mortgage Bankers Association of There are no statues or regulations to enforce so Gross, Mark Ladd (via audio), John McGarvey, Kentucky it will be used from a practical standpoint. The Stephanie Schumacher, Debra Stamper, Gabrielle Tim Vaughan, Mortgage Bankers paper size is regulated, but not the margins. Summe, Pam Thompson, Barry Tuemler, and Association of Kentucky, informed that the Ms. Stamper added that she thinks Library and Tim Vaughan. Mortgage Bankers Association of Kentucky Archives has a margin standard. Another issue Guests: is comprised of over 100 diverse members Mr. Blevins would like to address is the proposed LRC Staff: Dale Hardy, Katie Comstock, throughout the state. standard for rejection language, as proposed by and Yvonne Beghtol Pam Thompson, Mortgage BankersPRIA. Branden Gross, Bingham, Greenebaum, Approval of the Minutes Association of Kentucky, stated that uniformity is Doll, suggested having a proposed bill for the Tim Vaughan made a motion to approve the critical to the success of implementation. One of 2020 Session to outline the margins and other September 10, 2019 minutes, seconded by Don the biggest concerns for members of the Mortgage concerns. Mr. McGarvey suggested that the Blevins, approved by voice vote. Bankers Association of Kentucky, is knowing Secretary of State’s office write regulation that Kentucky Bankers Association how to maneuver within the system; such as how relates to real estate transactions in Kentucky. Debra Stamper, Kentucky Bankers to make corrections, the correction process, and Ms. Summe would like to consider the practical Association, announced that 48 states have some who is responsible to make corrections. It would standards from PRIA and adopt those before form of e-recording. Simplifile, CSC, Nationwide, be beneficial to have a list from other states of working on regulations and statutes. Ms. Stamper and EPN are working with county clerk’s offices issues that needed to be addressed once the stated that a county clerk may refuse to accept a to accept these filings. Because some counties procedures were put in place. Making sure the document because it is not consistent with PRIA and banks may never accept e-filings, availability bankers and title institutions have the necessary standards, and a filer may file a lawsuit because remains on a voluntary basis. information is critical in executing correctly. it is not a statutory requirement. Mr. Blevins John McGarvey, Kentucky Bankers Ms. Thompson also noted that record retention believes this would tie up the document for six Association, addressed benefits and concerns and back-up is vital. Not all lenders will accept months, so it is not likely to happen. Mr. Blevins to be considered in implementing e-filings. electronic transactions. Having a list of who the stated that issues within the first six months Mr. McGarvey stated that e-filings will bring Mortgage Bankers Association of Kentucky can can be addressed before the following year. Ms. Kentucky into the digital world by providing conduct business with would be helpful. Ms. Summe stated that the more consistency that can e-recordings of documents. Establishing bright- Thompson believes the electronic transaction be obtained, the less confusing the process will line standards is necessary to ensure ease of will be used more than remote. be. compliance. Making Kentucky reasonably In response to Chairman Fischer, Ms. In response to Mr. Gross, Mark Ladd, consistent with other states would benefit Thompson feels the papering out option was Vanguard, stated that practitioners can work the process. At a local level, there needs to be critical in getting the bill passed and important to with one or more vendors and will be charged some consistency between counties. Requiring continue business in the state. By allowing clerks per transaction. In response to Chairman multiple vendors to provide services would be to paper out, setting the level of uniformity will Fischer, the retail cost is $5 per transaction or beneficial and desired. Mr. McGarvey suggests not be as much of an issue. Ms. Summe, Kenton less, depending on volume. looking into the future as to the type of digital County Clerk, stated that setting the details Brent Eisele, Foundation Title & Escrow, technology to pursue for recording, filing, and will be the most difficult part and asked if the asked how to handle a document that starts record retention. Property Records Industry Association (PRIA) with the correct margins but, in the transferring In response to Chairman Fischer, standards are set in the regulations or by the process, gets changed by the time it reaches the Ms. Stamper has studied the regulations association. Ms. Galyon, Assistant Secretary of county clerk. Mr. Eisele also believes that remote of surrounding states and will share that State, said that their office is focusing on notary online will be used more than some may think information with the committee. Some county regulations, not e-recording. The Secretary of due to the convenience of not having to be clerks expect to offer e-filing and e-recording State does not have authority under SB 114 to physically present to sign documents. on January 1, 2020. Chairman Fischer noted issue regulations on e-recording. Ms. Summe Senator West mentioned that he is Co- that the law requires regulations to be in place noted that who writes the regulations as they Chair for the Administrative Regulation before implementing the electronic procedures. relate to e-recording will need to be addressed. Review Committee and suggests focusing on Mr. McGarvey added that an estimation on the Ms. Galyon stated that the Secretary of State the regulations as they pertain to this statute

52 2019 Interim LEGISLATIVE RECORD and address other issues in a separate statute Inspector General; Jonathan Scott, Department formatting requirements of KRS Chapter 13A. for the upcoming session. Chairman Fischer for Medicaid Services; Shannon Gadd, Jessica Without objection, and with agreement of the agrees that the committee needs to focus on how Wayne, Tonia Wells, Department for Aging agency, the amendments were approved. to implement e-recording and e-notarization. and Independent Living; Erika Bauford, Laura 103 KAR 26:090. Veterinarians and pet care However, this statute is not limited to e-recording Begin, Kristy Kidd, Department for Community providers. and e-notarization, and there are other Based Services; Shawn Cox, William Dolan, Jon A motion was made and seconded to technology related issues to consider. Therefore, Dougherty, Ankur Gopal, Betsy Johnson, Joe approve the following amendments: to amend the Secretary of State is limited by what is in the Jurgensen, Marc Wilson, Ron Wolf. the TITLE; the RELATES TO and NECESSITY, statute. LRC Staff: Sarah Amburgey, Stacy Auterson, FUNCTION, AND CONFORMITY paragraphs; Adjournment Emily Caudill, Betsy Cupp, Ange Darnell, Emily and Sections 1 through 4, 7, and 8 to comply Chairman Fischer reminded members Harkenrider, Karen Howard, and Carrie Klaber. with the drafting and formatting requirements of of the November 20th meeting. There being no The Administrative Regulation Review KRS Chapter 13A. Without objection, and with further business, the meeting adjourned at 11:38 Subcommittee met on Monday, September 16, agreement of the agency, the amendments were AM. 2019, and submits this report: approved. Administrative Regulations Reviewed by Sales and Use Tax; Miscellaneous Retailer ADMINISTRATIVE REGULATION the Subcommittee: Occupations REVIEW SUBCOMMITTEE PERSONNEL CABINET: Classified 103 KAR 27:180. Vending machines. Minutes of the September Meeting 101 KAR 2:102. Classified leave general A motion was made and seconded to September 16, 2019 requirements. Mary Elizabeth Bailey, approve the following amendments: to amend Call to Order and Roll Call commissioner, and Rosemary Holbrook, general the STATUTORY AUTHORITY paragraph and The September meeting of the Administrative counsel, represented the cabinet. Sections 1, 2, and 4 through 6 to comply with Regulation Review Subcommittee was held on A motion was made and seconded to the drafting requirements of KRS Chapter 13A. Monday, September 16, 2019, at 10:00 AM, in approve the following amendments: to amend Without objection, and with agreement of the Room 149 of the Capitol Annex. Representative the RELATES TO paragraph to comply with agency, the amendments were approved. David Hale, Chair, called the meeting to order, the drafting requirements of KRS Chapter 13A. Sales and Use Tax; Miscellaneous Retail and the secretary called the roll. Without objection, and with agreement of the Transactions Present were: agency, the amendments were approved. 103 KAR 28:010. Admissions. Members: Senator Stephen West, Co-Chair; Unclassified A motion was made and seconded to Representative David Hale, Co-Chair; Senators 101 KAR 3:015. Leave requirements for approve the following amendments: to amend the Julie Raque Adams, Perry B. Clark, and Alice unclassified service. RELATES TO and STATUTORY AUTHORITY Forgy Kerr; Representatives Deanna Frazier, FINANCE AND ADMINISTRATION paragraphs and Sections 1 through 4 and 6 Mary Lou Marzian, and Tommy Turner. CABINET: Department of Revenue: Sales and to comply with the drafting and formatting Guests: Rosemary Holbrook, Personnel Use Tax; Registration and Collection requirements of KRS Chapter 13A. Without Cabinet; Todd Renner, Department of Revenue; 103 KAR 25:131. Current month accelerated objection, and with agreement of the agency, the Ryan Barrow, Office of Financial Management; payment of sales and use taxes by larger amendments were approved. Anthony Grey, Larry Hadley, Board of Pharmacy, taxpayers. Todd Renner, executive director, Sales and Use Tax; General Exemptions Marc Manley, Board of Cosmetology; David Office of Tax Policy and Regulation, represented 103 KAR 30:170. Containers, wrapping, and Trimble, Board of Embalmers and Funeral the department. packing materials. Directors; Ron Brooks, Brent McCarty, Steven A motion was made and seconded to A motion was made and seconded to Phillips, Paul Wikes, Karen Waldrop, Department approve the following amendments: to amend approve the following amendments: to amend of Fish and Wildlife Resources; Jason Glass, Clint the RELATES TO; STATUTORY AUTHORITY; Sections 1 and 4 to comply with the drafting Quarles, Department of Agriculture; Sean Alteri, and NECESSITY, FUNCTION, AND requirements of KRS Chapter 13A. Without Amanda LeFevre, Department of Environmental CONFORMITY paragraphs and Sections 2, 5, objection, and with agreement of the agency, the Protection; Amy Barker, Brandon Lynch, and 6 to comply with the drafting requirements amendments were approved. Department of Corrections; William Codell, of KRS Chapter 13A. Without objection, and Selective Excise Tax; Cigarettes Lori Bradbury-Robinson; Tamara Hart, Elise with agreement of the agency, the amendments 103 KAR 41:220. Applications, stamp Marti, Department of Juvenile Justice; Todd were approved. orders, returns, reports, and statements to be Allen, Steve Lyles, Department of Education; Sales and Use Tax; Service and Professional filed electronically – waiver. Michael Nemes, Bridget Papalia, Brooken Occupations In response to a question by Co-Chair Smith, Education and Workforce Development 103 KAR 26:070. Contractors. Hale, Mr. Renner stated that this administrative Cabinet; Joe Donohue, Department of A motion was made and seconded to regulation did not adjust the cigarette tax. This Financial Institutions; Erica Brakefield, Julie approve the following amendments: to amend the administrative regulation required cigarette Brooks, Leanna Caven, Frank Jackson, Devon RELATES TO and NECESSITY, FUNCTION, vendors to report tax information electronically McFadden, Department for Public Health; AND CONFORMITY paragraphs and Sections in order to improve efficiency. Stephanie Brammer-Barnes, Steven Davis, Office 1 through 8 to comply with the drafting and Office of Financial Management: State

THE KENTUCKY GENERAL ASSEMBLY 53 Investment Commission requirements of KRS Chapter 13A. Without 301 KAR 1:185. Pay lakes. Ron Brooks, 200 KAR 14:201. Repeal of 200 KAR 014:200. objection, and with agreement of the agency, the director, Fisheries Division; Brent McCarty, Ryan Barrow, executive director, represented the amendments were approved. branch manager, Recruitment, Retention, commission. 201 KAR 15:050. Apprenticeship and and Reactivation Branch; Steven Phillips, BOARDS AND COMMISSIONS: Board of supervision requirements. staff attorney; and Karen Waldrop, deputy Pharmacy A motion was made and seconded to approve commissioner, represented the department. 201 KAR 2:165. Transfer of prescription the following amendments: to amend Sections 3, A motion was made and seconded to approve information. Anthony Gray, general counsel, and 4, and 6 and material incorporated by reference the following amendments: (1) to amend Section Larry Hadley, executive director, represented the to comply with the drafting requirements of 3 to comply with the drafting requirements of board. KRS Chapter 13A. Without objection, and with KRS Chapter 13A; and (2) to make technical Board of Cosmetology agreement of the agency, the amendments were changes to the agency contact information. 201 KAR 12:030. Licensing, permits, and approved. Without objection, and with agreement of the examinations. Marc Manley, counsel, represented 201 KAR 15:080. Complaints. agency, the amendments were approved. the board. A motion was made and seconded to 301 KAR 1:201. Taking of fish by traditional A motion was made and seconded to approve approve the following amendments: to amend fishing methods. the following amendments: (1) to amend the the STATUTORY AUTHORITY paragraph and A motion was made and seconded to approve RELATES TO paragraph, Sections 9 through 11 Sections 1 and 3 to comply with the drafting the following amendments: to make technical and 20, and material incorporated by reference requirements of KRS Chapter 13A. Without changes to the agency contact information. to comply with the drafting requirements of KRS objection, and with agreement of the agency, the Without objection, and with agreement of the Chapter 13A; and (2) to amend Section 14 to amendments were approved. agency, the amendments were approved. authorize a designee of the board inspector and 201 KAR 15:110. Funeral establishment 301 KAR 1:410. Taking of fish by board administrator to conduct an inspection of criteria. nontraditional fishing methods. a school. Without objection, and with agreement A motion was made and seconded to A motion was made and seconded to approve of the agency, the amendments were approved. approve the following amendments: to amend the following amendments: to make technical Board of Embalmers and Funeral Directors the STATUTORY AUTHORITY paragraph; changes to the agency contact information. 201 KAR 15:010. Definitions. David Sections 1 through 3, 5, 7, 10, and 11; and Without objection, and with agreement of the Trimble, general counsel, represented the board. material incorporated by reference to comply agency, the amendments were approved. A motion was made and seconded with the drafting requirements of KRS Chapter GENERAL GOVERNMENT: Department to approve the following amendments: to 13A. Without objection, and with agreement of of Agriculture: Kentucky Grain Insurance and amend the NECESSITY, FUNCTION, AND the agency, the amendments were approved. Grain Dealers CONFORMITY paragraph and Section 1 to 201 KAR 15:120. Requirements for 302 KAR 34:011. Repeal of 302 KAR comply with the drafting requirements of KRS applicants holding a license in another state. 034:010, 302 KAR 034:020, 302 KAR 034:030, 302 Chapter 13A. Without objection, and with A motion was made and seconded to KAR 034:040, 302 KAR 034:050, and 302 KAR agreement of the agency, the amendments were approve the following amendments: to amend 034:060. Jason Glass, director, and Clint Quarles, approved. the STATUTORY AUTHORITY paragraph staff attorney, represented the department. 201 KAR 15:015. Per Diem compensation of and Section 1 to comply with the drafting Grain Storage board members. requirements of KRS Chapter 13A. Without 302 KAR 35:011. Repeal of 302 KAR 201 KAR 15:030. Fees. objection, and with agreement of the agency, the 035:020, 302 KAR 035:030, 302 KAR 035:040, In response to questions by Representative amendments were approved. 302 KAR 035:050, 302 KAR 035:060, and 302 Marzian, Mr. Trimble stated that fee increases 201 KAR 15:125. Surface Transportation KAR 035:070. applied to licensees and funeral establishments. Permit. Bond and Grain Fund Distribution Fee increases ranged from twenty-five (25) A motion was made and seconded to 302 KAR 36:011. Repeal of 302 KAR dollars to fifty (50) dollars yearly, which raised approve the following amendments: (1) to 036:010. fees to the statutory caps. amend the NECESSITY, FUNCTION, AND Regulation and Inspection; Packaging and A motion was made and seconded to approve CONFORMITY paragraph; Sections 1 through Labeling the following amendments: to amend Section 3 and 5; and material incorporated by reference 302 KAR 75:130. Packaging and labeling. 8 to comply with the drafting requirements of to comply with the drafting requirements of KRS A motion was made and seconded KRS Chapter 13A. Without objection, and with Chapter 13A; and (2) to add a section to establish to approve the following amendments: to agreement of the agency the amendments were a renewal process and renewal fee for a Surface amend the NECESSITY, FUNCTION, AND approved. Transportation Permit. Without objection, and CONFORMITY paragraph and Sections 1 and 201 KAR 15:040. Examination. with agreement of the agency, the amendments 2 to comply with the drafting requirements of A motion was made and seconded to were approved. KRS Chapter 13A. Without objection, and with approve the following amendments: to amend TOURISM, ARTS AND HERITAGE agreement of the agency, the amendments were the STATUTORY AUTHORITY paragraph CABINET: Department of Fish and Wildlife approved. and Section 1 to comply with the drafting Resources: Fish Regulation and Inspection; Method of Sale

54 2019 Interim LEGISLATIVE RECORD 302 KAR 76:100. Method of sale. agreement of the agency, the amendment was Education: Department of Education: Office of A motion was made and seconded approved. Chief State School Officer to approve the following amendments: to 401 KAR 11:040. Water treatment and 701 KAR 5:090. Teacher disciplinary amend the NECESSITY, FUNCTION, AND distribution system operators; classification and hearings. Todd Allen, deputy general counsel, CONFORMITY paragraph and Sections 1 and qualifications. represented the office. 2 to comply with the drafting requirements of A motion was made and seconded to approve A motion was made and seconded to KRS Chapter 13A. Without objection, and with the following amendment: to amend Section approve the following amendments: to amend agreement of the agency, the amendments were 2 to comply with the drafting requirements of the STATUTORY AUTHORITY paragraph and approved. KRS Chapter 13A. Without objection, and with Sections 1, 2, and 5 to comply with the drafting Regulation and Inspection; Scanner agreement of the agency, the amendment was requirements of KRS Chapter 13A. Without 302 KAR 80:010. Examination procedure approved. objection, and with agreement of the agency, the for price verification. 401 KAR 11:050. Operator and training amendments were approved. A motion was made and seconded provider certification. Office of District Support Services: School to approve the following amendments: to 401 KAR 11:060. Operator and training Administration and Finance amend the RELATES TO and NECESSITY, provider certification fees. 702 KAR 3:130. Internal accounting. FUNCTION, AND CONFORMITY paragraphs JUSTICE AND PUBLIC SAFETY A motion was made and seconded to and Sections 1 through 3 to comply with the CABINET: Department of Corrections: Office of approve the following amendments: to amend the drafting requirements of KRS Chapter 13A. the Secretary STATUTORY AUTHORITY and NECESSITY, Without objection, and with agreement of the 501 KAR 6:110. Roederer Correctional FUNCTION, AND CONFORMITY paragraphs agency, the amendments were approved. Complex. Amy Barker, assistant general counsel, and Section 1 to comply with the drafting Regulation and Inspection; Commercial and Brandon Lynch, program administrator, requirements of KRS Chapter 13A. Without Weighing and Measuring Devices represented the department. objection, and with agreement of the agency, the 302 KAR 81:010. Technical requirements A motion was made and seconded to amendments were approved. for commercial weighing and measuring devices. approve the following amendments: to amend Apprenticeship Standards A motion was made and seconded Section 1 and Policy 16-01-01 to revise inmate 787 KAR 3:010. Registration of to approve the following amendments: to visiting procedures, including: (1) establishing apprenticeship programs. Michael Nemes, amend the NECESSITY, FUNCTION, AND a two (2) hour limit for permanent inmates; (2) deputy secretary; Bridget Papalia, general CONFORMITY paragraph and Sections 1 specifying that accepting additional visitors shall counsel; and Brooken Smith, chief of staff, through 4 to comply with the drafting and not restart the time limit; (3) prohibiting visitor represented the department. Shawn Cox, formatting requirements of KRS Chapter 13A. movement during count times; (4) increasing director of external affairs, Ion Apex Electric; Without objection, and with agreement of the the number of night-visit inmates from fifteen Jon Dougherty, education director, AMTECK; agency, the amendments were approved. (15) to twenty-one (21); and (5) replacing a set Ankur Gopal, CEO, Interapt LLC; Marc Wilson, ENERGY AND ENVIRONMENT time for night visits with a posted time. Without Top Shelf Lobby, LLC and Associated Builders CABINET: Department for Environmental objection, and with agreement of the agency, the and Contractors; and Ron Wolf, director of Protection: Division of Water: Water Quality amendments were approved. external relations, AGC of Kentucky, appeared 401 KAR 5:010. Operation of wastewater Department of Juvenile Justice: Child in support of this administrative regulation. systems by certified operators. Sean Alteri, Welfare In response to a question by Co-Chair Hale, deputy commissioner, and Amanda LeFevre, 505 KAR 1:160. Department of Juvenile Mr. Nemes stated that changes applied to the director, represented the division. Justice Policy and Procedures Manual: juvenile Registered Apprenticeship Program only. This Water Quality Certification sexual offender treatment program. William did not affect licensing policy and was a superior 401 KAR 8:030. Water treatment plant and Codell, attorney; Lori Bradbury – Robinson, training program. Businesses were having water distribution system classification and licensed psychologist and program administrator; difficulty finding skilled workforces, especially staffing. Tamara Hart, licensed psychological associate; in the areas of electrical work, carpentry, 401 KAR 8:050. Drinking water program and Elise Marti, staff attorney, represented the and plumbing. Kentucky apprenticeship fees. department. requirements were burdensome and hindered Certified Operators A motion was made and seconded to developing the needed skilled workforces. The 401 KAR 11:001. Definitions for 401 KAR approve the following amendments: to amend Registered Apprenticeship Program established Chapter 011. the STATUTORY AUTHORITY paragraph, safe and efficient training. 401 KAR 11:030. Wastewater treatment and Section 1, and material incorporated by reference In response to a question by Co-Chair Hale, collection system operators; classification and to comply with the drafting requirements of Mr. Smith stated that these changes adjusted qualifications. KRS Chapter 13A. Without objection, and with journeyworker to apprentice ratio requirements. A motion was made and seconded to approve agreement of the agency, the amendments were The proposed baseline ratio would be one (1) the following amendment: to amend Section approved. apprentice per journeyworker and authorized a 2 to comply with the drafting requirements of EDUCATION AND WORKFORCE second apprentice once the first had over 2,000 KRS Chapter 13A. Without objection, and with DEVELOPMENT CABINET: Board of on-the job experience hours. Only low and

THE KENTUCKY GENERAL ASSEMBLY 55 medium-risk occupations were eligible for the approve the following amendments: to amend amend the RELATES TO and STATUTORY ratio modifications. Changes did not impact the STATUTORY AUTHORITY paragraph and AUTHORITY paragraphs and Sections 1, 2, more stringent employer requirements or Sections 1 through 4, 8, 10, and 11 to comply and 7 to comply with the drafting requirements collective bargaining agreements that established with the drafting requirements of KRS Chapter of KRS Chapter 13A; (2) to amend Section 7 different ratios. 13A. Without objection, and with agreement of to clarify that Worksheet B is part of the CMS In response to a question by Co-Chair the agency, the amendments were approved. 2552 cost report; and (3) to amend Sections 2 Hale, Mr. Gopal stated that the Registered Check Cashing and 7 to require, effective beginning May 10, Apprenticeship Program was a successful model 808 KAR 9:050. Licensee change of control. 2019, pursuant to federal approval, that the for developing a workforce with the needed CABINET FOR HEALTH AND FAMILY department shall make the annual IME payment aptitude. This model allowed Interapt LLC to SERVICES: Department for Public Health: to state university teaching hospitals and provide remain in Louisville, rather than the company Division of Public Health Protection and Safety: a supplemental DGME payment for the direct seeking a workforce elsewhere. Public Accommodations costs of graduate medical education incurred by In response to a question by Co-Chair 902 KAR 7:010. Hotel and motel code. Erica eligible in-state hospitals. Without objection, and Hale, Mr. Wilson stated that Top Shelf Lobby, Brakefield, section supervisor; Julie Brooks, with agreement of the agency, the amendments LLC, supported the Registered Apprenticeship regulation coordinator; and Leanna Caven, were approved. Program because this was the exact remedy program evaluator, represented the division. Department for Aging and Independent needed to solve Kentucky’s workforce crisis. A motion was made and seconded Living: Division of Guardianship In response to a question by Co-Chair Hale, to approve the following amendments: to 910 KAR 2:040. Service provisions for adult Mr. Cox stated that Ion Apex Electric supported amend the NECESSITY, FUNCTION, AND guardianship. Shannon Gadd, commissioner; the Registered Apprenticeship Program because CONFORMITY paragraph and Sections 2, 4 Jessica Wayne, assistant director; and Tonia the shortage of skilled workers in the trades was through 9, 14, 16 through 18, 20, and 22 to comply Wells, director, represented the division. becoming more pronounced. This was a step with the drafting and formatting requirements of William Dolan, attorney, Kentucky Protection forward to alleviate the shortage and provide KRS Chapter 13A. Without objection, and with and Advocacy, appeared in opposition to this quality career paths. agreement of the agency, the amendments were administrative regulation. In response to a question by Co-Chair Hale, approved. In response to a question by Representative Mr. Wolf stated that AGC of Kentucky supported Department for Public Health: Division of Frazier, Ms. Wells stated that DNR orders and the Registered Apprenticeship Program because Prevention and Quality Improvement: Programs end-of-life decisions were person centered and American economic leadership depended on a for the Underserved physician directed. Family were notified and skilled workforce, especially in the commercial 902 KAR 21:020. Kentucky Colon Screening given an opportunity to provide feedback. If construction industry. Program. Julie Brooks, regulation coordinator, there was a conflict, guardianship procedures In response to a question by Co-Chair Devon McFadden, director, represented the were discussed. At least two (2) physicians were Hale, Mr. Dougherty stated that AMTECK was division. included in the process. concerned that Kentucky law allowed, except Division of Public Health Protection and In response to a question by Co-Chair Hale, for prevailing wage or state-funded projects, an Safety: Milk and Products Mr. Dolan stated that Kentucky Protection and unrestricted number of unlicensed electrical 902 KAR 50:003. Repeal of 902 KAR 050:002. Advocacy was concerned that guardian visits workers as long as there was at least one (1) licensed Julie Brooks, regulation coordinator, and Frank were going from four (4) required visits to just electrician. The Registered Apprenticeship Jackson, program evaluator, represented the one (1). Guardians previously were required to Program would incentivize companies to more division. procure services, while the new provisions were appropriately train employees. 902 KAR 50:005. Milk Advisory Committee. more of a sign off on case manager decisions. Representative Frazier stated that she Office of Inspector General: Division of Kentucky Protection and Advocacy also had fully supported the Registered Apprenticeship Audits and Investigations: Controlled Substances concerns regarding birth control provisions. Program. 902 KAR 55:120. Disposal of prescription Only one (1), rather the previous two (2) A motion was made and seconded to controlled substances. Stephanie Brammer – physicians, was required for a DNR situation. approve the following amendments: to amend Barnes, regulation coordinator; Steve Davis, In response to a question by Co-Chair Hale, the STATUTORY AUTHORITY paragraph and inspector general; and Jill Lee, pharmacist Ms. Gadd stated that the change in guardian visit Sections 1, 2, and 6 to comply with the drafting consultant, represented the division. requirements was for the purposes of adding requirements of KRS Chapter 13A. Without Department for Medicaid Services: flexibility. Individuals under guardianship were objection, and with agreement of the agency, the Division of Fiscal Management: Hospital Service under a wide variety of situations. The securing amendments were approved. Coverage and Reimbursement of services component was for compliance with Department of Financial Institutions: 907 KAR 10:830 & E. Acute care inpatient the nationally recognized Uniform Act. Ms. Wells Administration hospital reimbursement. Jonathan Scott, stated that birth control was a medical decision 808 KAR 1:170. Licensing and registration. regulatory and legislative advisor, represented and medical decisions were made by guardians. Joe Donohue, general counsel, represented the the division. These were physician based for various health department. A motion was made and seconded to reasons. Ms. Gadd and Ms. Wells stated that the A motion was made and seconded to approve the following amendments: (1) to change in the number of physicians required for

56 2019 Interim LEGISLATIVE RECORD a DNR was an access issue, especially in rural prescription writing. In response to questions by Representative areas where it was difficult to timely consult two Real Estate Authority: Real Estate Turner, Mr. McCarty stated that twenty-two (2) physicians. Commission (22) other states authorized hunter certification Co-Chair Hale encouraged the agency to 201 KAR 11:002. Repeal of 201 KAR without an in-person course or range day. The continue dialogue with Mr. Dolan. 011:030, 201 KAR 011:045, 201 KAR 011:062, department reached out to those states and, of A motion was made and seconded to 201 KAR 011:090, 201 KAR 011:095, 201 KAR those who responded, data indicated an increased approve the following amendments: to amend 011:100, 201 KAR 011:110, 201 KAR 011:115, number of certified hunters and a decrease the RELATES TO paragraph and Sections 3, 4, 201 KAR 011:135, 201 KAR 011:145, 201 KAR in adverse hunting-related incidents. This and 15 to comply with the drafting requirements 011:147, 201 KAR 011:175, 201 KAR 011:180, administrative regulation would allow hunters of KRS Chapter 13A. Without objection, and 201 KAR 011:195, 201 KAR 011:215, 201 KAR to become certified via on-line courses. Because with agreement of the agency, the amendments 011:225, 201 KAR 011:230, 201 KAR 011:232, on-line certification would be convenient, were approved. 201 KAR 011:235, 201 KAR 011:240, 201 KAR previously exempt landowners hunting on their Department for Community Based Services: 011:245, 201 KAR 011:250, 201 KAR 011:300, own property and born on or after January 1, Division of Protection and Permanency: Child 201 KAR 011:350, 201 KAR 011:400, 201 KAR 2002, would be required to be certified. Live- Welfare 011:410, 201 KAR 011:440, 201 KAR 011:450, fire training for hunter certification would be 922 KAR 1:470. Central registry. Erika and 201 KAR 011:460. optional, rather than mandatory. Bauford, section supervisor; Laura Begin, Real Estate Commission Representative Turner stated that he was regulation coordinator; and Kristy Kidd, 201 KAR 11:011. Definitions for 201 KAR opposed to this policy because, during a time adoption specialist, represented the division. Chapter 011. of debate regarding gun violence in America, Child Welfare 201 KAR 11:105. Advertising. the department might be taking away the one 922 KAR 1:560. Putative father registry and 201 KAR 11:121. Standards of professional (1) chance many youth would have for live-fire operating procedures. conduct. training pertaining to firearm safety. In response, A motion was made and seconded to 201 KAR 11:170. Education provider Ms. Waldrop stated that many in-person course approve the following amendments: to amend requirements. and range days provided little in-depth firearm material incorporated by reference. Without 201 KAR 11:190. Consumer and handling. For example, firing an air rifle at a objection, and with agreement of the agency, the administrative complaints; discipline; state fair would qualify for hunter certification. amendments were approved. administrative hearings. Often a youth would only handle a firearm once 922 KAR 1:565. Service array for a relative 201 KAR 11:210. Licensing, education, and or twice at an in-person course or range day. or fictive kin caregiver. testing requirements. The department intended to establish a more A motion was made and seconded 201 KAR 11:220. Errors and omissions rigorous in-person course or range day for those to approve the following amendment: to insurance requirements. hunters who so opted. Hunters could bring amend the NECESSITY, FUNCTION, AND 201 KAR 11:461. Repeal of 201 KAR their personal firearms in order to gain better CONFORMITY paragraph to comply with the 011:420. training regarding the circumstances they might drafting requirements of KRS Chapter 13A. Real Estate Appraisers encounter. Courses could be made better if there Without objection, and with agreement of the 201 KAR 30:130. Education provider, were fewer of them. Representative Turner stated agency, the amendment was approved. instructor, and course. Tony Cotto, executive that the department seemed to be suggesting that The following administrative regulations advisor, Public Protection Cabinet, and Marc a hunter could be more acclimated to firearms were deferred or removed from the September Manley, acting general counsel, represented the through an on-line experience, rather than 16, 2019, subcommittee agenda: board. an in-person course or range day. In response, COUNCIL ON POST SECONDARY In response to a question by Co-Chair Hale, Ms. Waldrop stated that the on-line course was EDUCATION: Nonpublic Colleges Mr. Manley requested that this administrative focused on firearm safety and other hunter 13 KAR 1:020. Private college licensing. regulation be deferred to the October meeting of safety issues, rather than firearm handling. STATE BOARD OF ELECTIONS: Forms the subcommittee. Without objection, and with Representative Turner stated that it seemed and Procedures agreement of the agency, this administrative almost superfluous to require hunter certification 31 KAR 4:120. Additional and emergency regulation was deferred. at all without the live-fire handling component. precinct officers. TOURISM, ARTS AND HERITAGE In response to a question by Representative FINANCE AND ADMINISTRATION CABINET: Department of Fish and Wildlife Turner, Ms. Waldrop stated that the department CABINET: Teachers’ Retirement System: Resources: Game was not making this proposal in order to procure General Rules 301 KAR 2:185. Hunter education. Ron federal matching funds, rather to remove 102 KAR 1:032. Bona Fide Retirement. Brooks, director, Fisheries Division; Brent barriers to hunter certification. Travel, time, and BOARDS AND COMMISSIONS: Board of McCarty, branch manager, Recruitment, cost had become barriers to attaining hunter Pharmacy Retention, and Reactivation Branch; Steven certification. An in-person course or range day 201 KAR 2:095. Pharmacist interns. Phillips, staff attorney; and Karen Waldrop, would still be available for those who opted to Board of Dentistry deputy commissioner, represented the attend. These courses would be more rigorous 201 KAR 8:540. Dental practices and department. than many current events. Representative

THE KENTUCKY GENERAL ASSEMBLY 57 Turner stated that the live-fire requirement Turner, Ms. Waldrop stated that, when she Co-Chair West stated that public perception could save lives. In response, Mr. McCarty testified that federal matching funds were not and timing were concerns regarding this stated that, based on data that indicated that an issue, the intention of the statement was that administrative regulation. Any administrative on-line courses reduced adverse hunting-related federal matching funds were not an issue in the regulation should represent the intent of the incidents, the failure to remove the requirement policy-making decision. The department did General Assembly, and the intent of the General could itself result in adverse hunting-related expect federal matching funds. Mr. McCarty Assembly seemed to be, generally, toward more, incidents. Indiana had been implementing a stated that the decision was based on increasing rather than less firearm education. similar policy since 2004 and had a decrease in safety, even to the point when the department A motion was made and seconded to approve adverse hunting-related incidents. The choice expected to lose money, although that was not the following amendments: to make technical was between firearm training and quality firearm now the case. changes to the agency contact information. training. Ms. Waldrop stated that it was the goal Representative Turner stated that it was Without objection, and with agreement of the of the department to properly train hunters and important for every youth to have as much agency, the amendments were approved. increase hunting opportunities. training in hunter safety as possible, especially ENERGY AND ENVIRONMENT In response to questions by Representative with the level of gun violence in America. This CABINET: Department for Environmental Frazier, Mr. McCarty stated that initially the policy would undermine youth hunter safety Protection: Division of Water: Water Wells department expected to lose money as a result training. Representative Turner stated that, 401 KAR 6:001 & E. Definitions for 401 of this policy because federal matching funds in good conscience, he could not support this KAR Chapter 006. were not available for donated courses. The NRA policy. Many youth did not have mentoring 401 KAR 6:211. Repeal of 401 KAR 006:200. had donated a free on-line course. Since that regarding firearm safety. It was troubling that 401 KAR 6:310 & E. Water supply well time, it was determined that federal matching an agency would be insensitive to concerns construction practices and standards. funds could be used for donated courses. Ms. regarding youth safety pertaining to firearms. 401 KAR 6:320 & E. Certification of water Waldrop stated that the department expected Representative Turner made a motion, well drillers and water well driller assistants. funding levels pursuant to this policy to be seconded by Senator Raque Adams, to find this 401 KAR 6:350 & E. Monitoring well similar to previous levels and funding was not administrative regulation deficient. In response construction practices and standards. a component in the department’s decisions to a question by Co-Chair Hale, Ms. Waldrop Water Quality Standards regarding this policy. The department expected requested that this administrative regulation 401 KAR 10:001. Definitions for 401 KAR the policy to encourage more people to become be deferred to the October meeting of the Chapter 010. hunter certified. Mr. McCarty stated that the subcommittee and asked the grounds for the 401 KAR 10:026. Designation of uses of other states that had implemented this policy finding of deficiency. Representative Turner surface waters. initially experienced an upsurge in certifications withdrew the motion to find this administrative 401 KAR 10:029. General provisions. due to noncompliant hunters opting to become regulation deficient and stated that KRS 401 KAR 10:030. Antidegradation policy certified due to the added convenience. The 13A.030(2)(a) authorized the subcommittee to implementation methodology. uptick was not necessarily due to new hunters. make a nonbinding determination of deficiency 401 KAR 10:031. Surface water standards. Typically, fifty (50) percent of hunters seeking and, in this case, the basis was safety concerns. Division for Air Quality: Attainment and certification still opted to take the in-person In response to a question by Representative Maintenance of the National Ambient Air course or range day. Turner, Ms. Waldrop stated that the commission Quality Standards In response to questions by Co-Chair West, and sportsmen would need to know the safety 401 KAR 51:010. Attainment status Ms. Waldrop stated that landowners hunting on concerns basis for a nonbinding determination designations. their own property were previously exempt from of deficiency. A motion was made and seconded JUSTICE AND PUBLIC SAFETY hunter certification requirements. This policy to defer consideration of this administrative CABINET: Asset Forfeiture change would require hunter certification for regulation to the October subcommittee 500 KAR 9:011. Repeal of 500 KAR 009:010, landowners hunting on their own land; however, meeting. Without objection, and with agreement 500 KAR 009:020, 500 KAR 009:030, and 500 it would only apply to those born on or after of the agency, this administrative regulation was KAR 009:040. January 1, 2002. Mr. McCarty stated that these deferred. Motorcycle Safety Education Commission policy changes had significant support from Co-Chair Hale stated that, while not 500 KAR 15:010 & E. Motorcycle safety stakeholders. Data indicated that on-line hunter questioning the department’s motive, the education program. certification resulted in more certified hunters perception of this policy seemed unappealing Office of the Secretary and fewer adverse hunting-related incidents. at this time. In response to a question 501 KAR 6:060. Northpoint Training Typically, most states experienced about a fifty by Senator Clark, staff stated that, if this Center. (50) percent decrease in attendance of the in- administrative regulation was deemed deficient 501 KAR 6:140. Bell County Forestry Camp. person courses or range days. Ms. Waldrop stated by this subcommittee, the Governor would be TRANSPORTATION CABINET: that in-person courses and range days would still contacted in accordance with KRS 13A.330. Department of Vehicle Licensing: Driver be available and would be more rigorous than in The second committee that would consider this Improvement the past. administrative regulation was expected to be 601 KAR 13:090. Medical Review Board; In response to a question by Representative the Natural Resources and Energy Committee. basis for examination, evaluation, tests.

58 2019 Interim LEGISLATIVE RECORD 601 KAR 13:100. Medical standards for CABINET FOR HEALTH AND FAMILY regulation was narrowly tailored to comply operators of motor vehicles. SERVICES: Office of Inspector General: Division with the settlement agreement, which was ENERGY AND ENVIRONMENT of Healthcare: Health Services and Facilities an agreement to avoid litigation. The cabinet CABINET: Department for Natural Resources: 902 KAR 20:036. Operation and services; entered into a settlement agreement with Division of Oil and Gas personal care homes. Stephanie Brammer – Kentucky Protection and Advocacy based on the 805 KAR 1:001. Definitions for 805 KAR Barnes, regulation coordinator; Kara Daniel, Olmstead decision of 1999. In accordance with Chapter 001. division director; Steven Davis, inspector general; the Olmstead decision, states were obligated to 805 KAR 1:020. Protection of fresh water and Wendy Morris, commissioner, represented ensure that clients who did not wish to live in a zones. the division. Betsy Johnson, president, and Joe congregate living system had ample services and 805 KAR 1:030. Well location and as-drilled Jurgensen, administrator, Kentucky Association supports in the community. The decision did location plat, preparation, form and contents. of Health Care Facilities/Kentucky Center for not require the state to move people out, but to 805 KAR 1:050. Bonds, requirements, Assisted Living, appeared in opposition to this ensure that states were not relying exclusively on cancellation. administrative regulation. congregate living systems. 805 KAR 1:060. Plugging wells. In response to a question by Co-Chair Hale, In response to a question by Co-Chair 805 KAR 1:080. Gas storage reservoirs; Mr. Davis stated that the Office of Inspector Hale, Ms. Johnson stated that Kentucky drilling, plugging in vicinity. General was the oversight agency within the Association of Health Care Facilities/Kentucky 805 KAR 1:110. Underground injection cabinet and licensed child care and health Center for Assisted Living was opposed to control. care facilities, including Personal Care Homes this administrative regulation because the 805 KAR 1:120. Operating or deepening (PCHs.) This administrative regulation was the settlement agreement with Kentucky Protection existing wells and drilling deeper than the result of a settlement agreement made by the and Advocacy prohibited the cabinet from permitted depth. cabinet for which the Office of Inspector General developing its own policy. Although the terms 805 KAR 1:140. Directional and horizontal was the enforcement agency; however, the Office of the settlement agreement negatively impacted wells. of Inspector General did not directly initiate private licensed PCHs and their clients, neither Division of Oil and Gas this overall policy. There were two (2) primary group were included in the settlement agreement 805 KAR 1:170. Content of the operations types of PCHs, freestanding facilities that served process. Public policy should not be developed and reclamation plan. clients with Severe Mental Illness (SMI), which without all stakeholders having input, and the 805 KAR 1:180. Production reporting. received minimal federal funding, and assisted settlement agreement circumvented KRS Chapter 805 KAR 1:190. Gathering lines. living-type facilities, which may charge a much 13A because agency decisions were held captive 805 KAR 1:200. General information higher amount. The cabinet was continuing by the settlement agreement, which lacked associated with oil and gas permits. to develop and reorganize PCH requirements. judicial review. This administrative regulation Sanctions and Penalties PCHs were not being expected to provide exacerbated the already severe underfunding 805 KAR 9:011. Repeal of 805 KAR Chapter occupational, physical, or speech therapies. of PCHs by subverting limited resources to a 009. PCHs were expected to provide basic assistance small group of residents to whom the settlement PUBLIC PROTECTION CABINET: with individuals who were transitioning out of agreement applied. KRS 13A.270 and 13A.280 Department of Insurance: Agents, Consultants, facilities. established a right for all stakeholders to have the Solicitors, and Adjustors In response to questions by Co-Chair Hale, opportunity to comment in a meaningful way 806 KAR 9:020. False or deceptive names, Ms. Morris stated that many initial concerns regarding proposed administrative regulations. titles, prohibited. of stakeholders had been remedied by the The promulgating agency then issues a 806 KAR 9:030. Adjuster licensing Amended After Comments version of this Statement of Consideration. The settlement restrictions. administrative regulation. Required Activities of agreement, by limiting the agency’s decision- 806 KAR 9:061. Repeal of 806 KAR 009:060. Daily Living (ADLs) and Instrumental Activities making process, negated meaningful comments 806 KAR 9:070. Examinations. of Daily Living (IADLs) would be provided by and responses pursuant to KRS 13A.270 and 806 KAR 9:110. Agent’s rights after contract existing provider employees and should require 13A.280. Additionally, the agency did not submit termination. minimum burden. The agency planned to record the required cost estimate required as part of 806 KAR 9:190. Disclosure requirements instruction for the convenience of providers and the REGULATORY IMPACT ANALYSIS AND for financial institutions authorized to engage in was developing a comprehensive curriculum TIERING STATEMENT. PCHs received forty insurance agency activities. for training purposes. Reimbursement rates (40) dollars and forty-seven (47) cents per day, 806 KAR 9:200. Volume of insurance agent were always an ongoing concern. There were per client and could not afford this unfunded exchange of business. many stakeholders who commented during the mandate. 806 KAR 9:310. Life settlement licenses. public comment period. The agency also worked In response to a question by Co-Chair Hale, 806 KAR 9:321. Repeal of 806 KAR 009:320. with Protection and Advocacy to ensure that Mr. Jurgensen stated that many of Kentucky’s most 806 KAR 9:341. Repeal of 806 KAR 009:341. these requirements and the training curriculum vulnerable citizens were entrusted into the care 806 KAR 9:350. Recognition of financial complied with the settlement agreement. of specialized PCHs. For many of these residents planning certification and designation for receipt In response to a question by Co-Chair with SMIs, no amount of community supports of fees and commissions. West, Ms. Morris stated that this administrative would allow them to live safely independent of

THE KENTUCKY GENERAL ASSEMBLY 59 a congregate living system. Funding for PCHs number of clients transitioning was very small Behavioral Health was grossly inadequate. PCHs received no more per facility. Comprehensive training existed 907 KAR 15:005 & E. Definitions for 907 than forty (40) dollars and forty-seven (47) cents outside of this administrative regulation. KAR Chapter 015. per day, per client, but were required to provide In response to questions by Co-Chair West, 907 KAR 15:010 & E. Coverage provisions client care, quality meals, hygiene products, Mr. Davis said that the streamlining process and requirements regarding behavioral health sponsored activities, assistance with physician would take approximately nine (9) months for services provided by individual approved services and medication, and assistance with the development. Many of the issues of concern behavioral health practitioners, behavioral clients’ financial management needs. The daily would remain but would be more isolated. health provider groups, and behavioral health reimbursement had not been increased since Rehabilitation should be a primary goal for these multi-specialty groups. 2006. The average reimbursement was seventeen facilities. The settlement agreement needed 907 KAR 15:015 & E. Reimbursement (17) dollars per day, per client. PCHs operate in a to move forward; therefore, removing the provisions and requirements for behavioral highly regulated environment with low margins. requirements of concern for consideration at the health services provided by individual approved Additional requirements would burden PCHs, 2020 Regular Session of the General Assembly behavioral health practitioners, behavioral which might be forced to close. The estimated was not preferable to the agency. Ms. Morris health provider groups or behavioral health cost increase to implement these policy changes stated that these requirements were a small step multi-specialty groups. was four (4) dollars per day, per client. Most PCHs toward making PCHs more rehabilitative for 907 KAR 15:020 & E. Coverage provisions would be required to add additional staff. Staff clients. and requirements regarding services provided were not equipped for these new requirements, Representative Frazier stated that there by behavioral health services organizations for and adverse incidents might result. Stakeholders were concerns about many aspects of this mental health treatment. were not included in the settlement agreement. administrative regulation. 907 KAR 15:022 & E. Coverage provisions In response to a question by Co-Chair In response to a question by Representative and requirements regarding services provided West, Mr. Jurgensen stated that there were Marzian, Ms. Morris stated that the agency by behavioral health services organizations approximately eighty-eight (88) PCHs, including expected to ask for increased funding for these for substance use disorder treatment and co- both types. It was likely if this administrative and other related programs through DCBS. Mr. occurring disorders. regulation became effective at these rates, that Nemes stated that the agency was the enforcement 907 KAR 15:025 & E. Reimbursement many PCHs would go out of business. Ms. arm of the program, not the budgeting arm. provisions and requirements regarding Johnson stated that it would be preferable for the In response to a question by Co-Chair Hale, behavioral health services provided by behavioral agency to remove the requirements pertaining the agency agreed to defer consideration of this health services organizations. to ADLs and IADLs. All stakeholders should be administrative regulation to the October meeting Department for Community Based Services: included in policy decisions surrounding the of the subcommittee. Without objection, and Division of Protection and Permanency: Child settlement agreement. PCHs could not continue with agreement of the agency, this administrative Welfare to operate on forty (40) dollars and forty-seven regulation was deferred. 922 KAR 1:320 & E. Service appeals. (47) cents per day, per client. A motion was made and seconded The subcommittee adjourned at 12:50 In response to a question by Representative to approve the following amendments: to p.m. The next meeting of the subcommittee is Marzian, Mr. Jurgensen stated that the number amend the NECESSITY, FUNCTION, AND tentatively scheduled for October 8, 2019, at 1 of clients varied among PCHs. Forty (40) to sixty CONFORMITY paragraph; Sections 1 through p.m. (60) clients per PCH might be the state average. 4 and 7; and the SMI Screening Form to comply In response to questions by Co-Chair Hale, with the drafting and formatting requirements of INTERIM JOINT COMMITTEE ON Mr. Davis stated that the cabinet was aware of KRS Chapter 13A. Without objection, and with JUDICIARY some of the challenges PCHs were facing. The agreement of the agency, the amendments were Minutes of the 5th Meeting cabinet was working toward streamlining and approved. of the 2019 Interim reorganizing requirements. The reimbursements 902 KAR 20:370. Operations and services; October 4, 2019 came from the General Fund. There were also private duty nursing agencies. Call to Order and Roll Call inherent legal obstacles to funding. The cabinet 902 KAR 20:430 & E. Facilities specifications, The 5th meeting of the Interim Joint did not believe that changes would add significant operation and services; behavioral health services Committee on Judiciary was held on Friday, expenses to PCHs. The ADLs and IADLs were organizations for mental health treatment. October 4, 2019, at 10:00 AM, in Room 154 of very simple in nature and were not expected to Department for Public Health: Division of the Capitol Annex. Representative Jason Petrie, require additional staffing. Ms. Morris stated Audits and Investigations: Controlled Substances Chair, called the meeting to order, and the that there was a 2012 LRC study done regarding 902 KAR 55:070. Emergency medication secretary called the roll. PCHs. Unfortunately, there were adverse kits in long-term care facilities. Present were: outcomes for some clients within PCHs and Department for Medicaid Services: Members: Senator Whitney Westerfield, after transitioning out. PCHs sometimes closed Payments and Services Co-Chair; Representative Jason Petrie, Co- because of quality of care problems as well as 907 KAR 3:170 & E. Telehealth service Chair; Senators Danny Carroll, Alice Forgy Kerr, funding problems. Some other states had similar coverage and reimbursements. Gerald A. Neal, John Schickel, Wil Schroder, settlement agreement issues and problems. The Division of Policy and Operations: Dan “Malano” Seum, Stephen West, and Phillip Wheeler; Representatives Charles Booker,

60 2019 Interim LEGISLATIVE RECORD Kevin D. Bratcher, McKenzie Cantrell, Joseph and at the state’s discretion, the custodial parent consideration of parent’s basic subsistence needs M. Fischer, Angie Hatton, Jeff Hoover, Joni L. and children. Based on the federal poverty rate would be addressed in the recommendations Jenkins, Nima Kulkarni, Stan Lee, Derek Lewis, in Kentucky, CHFS proposes $915 per month for being made by the Kentucky Child Support Savannah Maddox, C. Ed Massey, Chad McCoy, SSR. A minimum child support order of $60 per Guidelines Commission. Reginald Meeks, Patti Minter, Kimberly Poore month would apply if income is below the SSR. In response to Chairman Westerfield, Moser, Jason Nemes, Brandon Reed, and Maria Commissioner Hubbard reviewed the process Dr. Jane Venohr, Center for Policy Research, Sorolis. of phasing in and out of the guidelines based on stated that the recommended table is based on Guests: Commissioner Bryan Hubbard, adjustment of income, as well as the expected the fourth Betson-Rothbarth study, which is Cabinet for Health and Family Services; Dr. impacts of implementing the proposed SSR. more current than the 1972/1973 consumer Jane Venohr, Center for Policy Research; Stacy CHFS also recommends a shared parenting- expenditure report that is currently in use. Tapke, Kenton County Attorney; Galen Myers, time formula to take into consideration shared In response to Representative Cantrell, Kenton County Attorney’s Office; Brian Ulrich, expenses. Commissioner Hubbard advised that Commissioner Hubbard believes there will be a National Parents Organization; Jennifer Warawa, 38 states currently provide a shared parenting short term increase in litigation due to obligors Licensed Clinical Social Worker; Dr. Jonathan formula, and reviewed policies, advantages, and wanting the new formulas to be taken into Warawa, University Professor. disadvantages for Kentucky, and the proposed consideration. LRC Staff: Dale Hardy, Matt Trebelhorn, formula for Kentucky. An illustration was In response to Senator Wheeler, Raleigh Dixon, and Yvonne Beghtol. presented showing the projected decrease of Commissioner Hubbard confirmed that Approval of the Minutes monthly child support based on the timesharing currently when a child support adjustment Representative Reed made a motion to threshold. After speaking with the director of the results in more than a 15% variation one party approve the September 13, 2019 minutes, Oregon Child Support Enforcement Program, may go to the court and ask for adjustment. seconded by Senator Schickel, and passed by Commissioner Hubbard reported that there has Chairman Petrie clarified that the 15% stays voice vote. been a significant reduction in litigation related in effect, deterring individuals from taking up Child Support Guidelines to child support between parents as a result of court time for a minimal amount. Commissioner Commissioner Hubbard, Department for the application of this formula, and there has not Hubbard confirmed that if the recommendations Income Support, reviewed the state child support been a significant adverse effect on the collections made today are implemented trial attorneys guidelines, as required quadrennially by federal of the Oregon Child Support Enforcement should be able to look at the guidelines and be law, the goal and objectives of the review, and the Agency. In fact, Oregon’s director reports that able to determine the amount without having to Child Support Guidelines Review Commission collections have increased since the formula go through litigation. membership. Commissioner Hubbard presented has been implemented. A table representing the Child Support Enforcement the federal requirements for guidelines issued percentage of adjustment made to child support Stacy Tapke, Kenton County Attorney, and in 1989 and additional requirements added in based on the number of overnights spent with Galen Myers, Child Support Division Director, 2016. Kentucky is compliant with all federal the obligor was presented. Equal income with gave a presentation regarding child support requirements, with the exception of the equal timesharing results in zero child support. enforcement. Ms. Tapke began by clarifying that consideration of a parent’s basic subsistence A chart representing the major considerations child support is not an obligation of the Attorney needs. for determining which formula to use was General’s Office and is not funded through Chairman Petrie reviewed the basics of how presented. A graph illustrating the change of the Prosecutor’s Advisory Council. Funding child support is calculated, and distributed the obligation from one parent to the other based on for child support enforcement comes through worksheet and table used for calculation. the different formulas considered was presented. contract agreements with the Cabinet for Health Commissioner Hubbard continued by Commission Hubbard concluded by and Family Services. During FY19, county comparing the existing child support table, the stating the Kentucky Child Support Guidelines attorneys handled 269,076 cases, resulting in the proposed table, and guidelines from other states. Commission would like to recommend updating collection of $364 million. Ms. Tapke presented a In review of the economic studies of child- the child support table, provide a self-support chart showing the number of cases and amounts rearing expenditures, Commission Hubbard reserve, and provide a shared parenting-time collected in each of the 25 counties with the noted that Kentucky’s table was based on a study formula. highest caseloads, and the correlation between from 1984, and announced that the proposed In response to Representative Hatton, the population and number of cases. Ms. Tapke changes are based on the most current Betson- Commissioner Hubbard confirmed that the stated that Kentucky’s return of $6.33 for every Rothbarth table, published in 2010. Graphs shared parenting-time formula would adjust the dollar spent on enforcement ranks Kentucky as illustrating the combined monthly support amount owed by a parent who has custody of 11th in the nation as far as return on investment. obligation by both parents, and comparisons of their child 3 nights per week. The tools used to enforce child support on monthly child support between Kentucky and the Representative Massey commended administrative and judicial levels were presented. seven surrounding states for one, two, and three Commissioner Hubbard for the increase on the Ms. Tapke agrees with Commissioner Hubbard children were offered. The Cabinet for Health and child support guidelines for higher monthly on the reasons why the child support guidelines Family Services (CHFS) recommends providing incomes. need to be updated. In agreement with a self-support reserve (SSR) to consider the basic In response to Chairman Petrie, Chairman Petrie, Ms. Tapke stated that having subsistence needs of the noncustodial parent, Commissioner Hubbard verified that the set guidelines keeps individuals from preferring

THE KENTUCKY GENERAL ASSEMBLY 61 one judge or one county over another. In regards people in jail, but to make sure the child receives subsistence existence, and recognize that many to shared parenting, there has already been an the support needed. non-custodial parents have significant time with increase in custody orders mandating shared In response to Representative Massey, their children. parenting and county attorneys expect continued Commissioner Hubbard stated that there is Mr. Ulrich addressed parenting time off set increases. Not having guidance on adjustments nothing in CHFS’ proposals that require a judge for support obligations and agrees that it needs to the guidelines based on shared parenting has to mandate child support if both parties agree to be put into law. While the Oregon model presented challenges for attorneys dealing with that no child support is necessary. offers a good relief offset for shared parenting child support. Ms. Tapke reminded members In response to Chairman Petrie, Ms. Tapke time, the NPO proposes proportionate parenting that daycare and healthcare costs are important has found that Indiana has gone to private time offset as the parenting time increases. This factors to consider. Chairman Petrie noted that collection agencies for collection of child method would go from no offset with 0 parenting these factors are included on the Child Support support owed to the state. Private agencies have time to a full offset at equal shared parenting. Guidelines and worksheet he distributed. Ms. had success in getting a portion of what is owed, In response to Senator Seum, Mr. Ulrich is Tapke ended by stating that updates to the with a percentage going to the collection agency. not aware of any penalties in other states to be guidelines are absolutely needed and needs to be She will continue to look into other methods that enforced when a party makes a false claim. a priority for Kentucky’s children. Kentucky may find beneficial. Representative Nemes mentioned that there In response to Senator Seum, Commissioner National Parents Organization needs to be a statute with severe punishment Hubbard stated that the central office for the Brian Ulrich, National Parents Organization, for a parent who makes inappropriate claims Division of Income Support in Frankfort stated that the federal tax code contains a mini in court. Jennifer Warawa, Licensed Clinical oversees the 120 county child support collection child support system pertaining to the filing of Social Worker and Clinical Director of Family offices, which are run by 113 individual county year end taxes. The custodial parent can claim Preservation with the NPO, advised that attorneys, and are funded through state and head of household, providing them with a higher addressing false allegations is a major aspect that federal dollars. Kentucky contributes 34% of the deduction. They also qualify for the federal needs to be addressed. Chairman Petrie added child support cost, and the federal government earned income credit, and can claim a child tax that false allegations and parental alienation that contributes 66%. Ms. Tapke stated that the credit. A chart depicting the disposable income, takes place inside custody agreements needs to county attorney can handle a prosecutorial case after federal taxes, for the recipient of the credits be punished. as a felony or misdemeanor non-support case if compared with the payer of child support was Senator Wheeler advised of a situation necessary. A public defender is not automatically presented. Based on equal income, the recipient where a woman claimed a man as the father. assigned, but the defendant may qualify for a of the credits or deductions has approximately He paid child support for 14 years before it public defender. $4,000 more disposable income yearly. was determined to be a false claim. There was In response to Senator Carroll, Ms. Tapke In response to Chairman Petrie, Mr. Ulrich no recourse for him to take in reclaiming the clarified that the split parenting formula is stated that the head of household standard $76,000 he paid. Senator Wheeler would like to currently used to determine the child support deduction and the earned income credit are have this addressed in statute. amount, but shared parenting is more structured in law and assigned based on having custody In response to Chairman Petrie, and appears to factor in more of an equal of a child. The child tax credit can be allocated Commissioner Hubbard advised that the parenting situation. Chairman Petrie added that between the two parties. commission members were in consensus that the current guidelines were set up assuming one In response to Representative Hatton, Mr. the SSR be proposed. Raising the SSR minimum parent would have the child only on weekends Ulrich confirmed that taking turns with filing would be acceptable. Dr. Venohr referred to the and specific holidays, and would have to go to for the allowable credits would fix the situation, Oregon formula, and advised that the proposed court to ask for a deviation from the guidelines if it is agreed upon. Chairman Petrie stated 45˚ curve in the timesharing formula suggested if they actually have more time with child. that, although Kentucky regularly includes this by Mr. Ulrich would increase the percentages, Shared parenting allows the time with the child procedure in court orders, it would be beneficial which may increase litigation. Dr. Venohr added to be considered from the beginning. Ms. Tapke to include it in statute. Representative Hatton that the SSR can be applied to both parents when stated that, if the custody schedule changes, the added that if one particular parent would receive there is equal custody. proposed shared parenting formula would not a high credit, then both parents can share, in the Ms. Warawa concluded by stating that require a modification of the custody agreement best interest of the children. Chairman Petrie getting full credit for custody contributions is before modifying the child support. Senator added a parent who is behind in child support fair. The offset for shared parenting addresses Carroll noted that there is a presumption that forfeits the credit to the other parent, which this and makes it fair for both parents. 50/50 shared custody is what the judge has to encourages payment of child support. Dr. Jonathan Warawa, University Professor, start with. The judge has the authority to make Mr. Ulrich addressed self-support reserve commended the Oregon model for having no adjustments based on circumstances. and ability to pay. Minnesota has 120% of federal offset with no shared parenting, 50/50 if equally Senator Wheeler commented that, in his poverty level as their SSR calculation. Minnesota shared, and adjustments for those areas in opinion, county attorneys are willing to work is considering raising the SSR to 200%. Following between. toward an equitable resolution, when dealing other states is not resulting in a reasonable SSR. Adjournment with an individual who is going through a Mr. Ulrich urged the committee to reconsider There being no further business the meeting sickness or hard time. Their goal is not to place what a reasonable level is to be able to provide a adjourned at 11:40 AM.

62 2019 Interim LEGISLATIVE RECORD DLG’s responsibility per KRS Chapter 65A is of entities that were classified as an SPGE can INTERIM JOINT COMMITTEE ON to create and maintain an online central registry, change over time. Certain fire departments now LOCAL GOVERNMENT reporting portal, and public access portal, and to report to the Fire Commission, so they have Minutes of the 5th Meeting monitor compliance by tracking status changes, been removed from the totals. Other entities that of the 2019 Interim preparing statutorily required reports, and were once considered an SPGE may have been October 3, 2019 activating noncompliance procedures. misclassified and then were determined to not be Call to Order and Roll Call The SPGE compliance report submitted an SPGE, such as one that is a department of a The fifth meeting of the Interim Joint to LRC includes data as of September 25, city, and thereby exempt from reporting, further Committee on Local Government was held on 2019. The data is unaudited as of the report lowering the number. Thursday, October 3, 2019, at 8:00 AM, in Room date, and compliant and noncompliant figures In response to a question from 149 of the Capitol Annex. Senator Wil Schroder, can fluctuate due to reporting due dates. The Representative Koenig, Ms. Vernon replied that Chair, called the meeting to order, and the compliance percentages may move up or down districts that are in compliance have provided secretary called the roll. depending on the status of the SPGE at the a registration form and made payment of the Present were: time of report. There are approximately 11,580 registration fee. Districts in non-compliance Members: Senator Wil Schroder, Co-Chair; individual records, six records for most SPGEs, have not fulfilled the full reporting requirements Representative Michael Meredith, Co-Chair; and compliance is organized by fiscal year. The as mandated by statute. Senators Ralph Alvarado, Denise Harper Angel, compliance report percentage for FY 2015 is In response to another question from Christian McDaniel, Morgan McGarvey, Robby 99%; 99% for FY 2016; 97% for FY 2017; 94% for Representative Koenig, Ms. Vernon said districts Mills, Albert Robinson, Damon Thayer, and FY 2018; 55% for FY 2019; and 73% for FY 2020. are required to provide an audit by statute, and Johnny Ray Turner; Representatives Danny The reasons for the fluctuation in numbers failure to provide an audit is part of determining Bentley, George Brown Jr, Jeffery Donohue, for FY 2019 is related to different populations’ non-compliance. The present system makes Deanna Frazier, Joe Graviss, Cluster Howard, reporting dates arising from recent legislation. tracking this difficult. Kim King, Adam Koenig, Russ A. Meyer, Jerry T. Limitations with the current computer program In response to a final question from Miller, Brandon Reed, Rob Rothenburger, John can affect data collection. Representative Koenig, Ms. Vernon stated that all Sims Jr, and Ashley Tackett Laferty. The SPGE program for the future includes funds from the state are withheld as punishment Guests: Tammy Vernon, Chris Musgrave, active communication with the Commonwealth for non-compliance, and a newspaper publication and Greg Ladd, Department for Local Office of Technology to design software to allow is made in the local paper detailing the issue Government; Larry Potter, Michael Kurtsinger, the creation of a new SPGE report portal and of noncompliance. Mr. Greg Ladd, General and Chuck Bonta, Kentucky Fire Commission; central registry, a public portal for citizens to Counsel for DLG, added that DLG sends a stop Ron Wolf, Associated General Contractors of view current and historical submissions, and payment notice to the Finance Cabinet which Kentucky; and , Auditor of to automate existing manual processes such follows through with that notification. Public Accounts Office. as compliance administration, reporting and In response to a question from Representative LRC Staff: Mark Mitchell, John Ryan, Joe notifications, fire departments exiting and Meredith, Mr. Chris Musgrave, DLG Chief of Pinczewski-Lee, and Cheryl Walters. entering the system, and municipal utilities Staff, replied that the automated system for Approval of Minutes buying and selling components. DLG also plans SPGE reporting should be instituted by next Upon the motion of Representative Reed, to provide online tutorials for submitting and year. Representative Meredith encouraged the seconded by Senator Thayer, the minutes of the reviewing data, and continued annual SPGE Department to move as fast as possible. September 12, 2019 meeting were approved. training for financial disclosure and tax rate In response to a question from Representative Special Purpose Governmental Entity calculation, to be held at area development Graviss, Ms. Vernon said a new found record is Reports districts. an entity that has just been created or discovered Ms. Tammy Vernon, Cities and Special In response to a question from Senator as having previously been not reporting as such. Districts Branch Manager with the Department McDaniel, Ms. Vernon said that the notation In response to a question from Senator for Local Government (DLG), said that Special in FY 2015 as reported in 2018 and 2019 is a Schroder, Mr. Musgrave stated that the timeline Purpose Governmental Entities (SPGEs) are snapshot of what changed since DLG reported for the development of the software includes independent political subdivisions of the state to the committee last year. Compliance rates developing an entirely new website for DLG which are government entities that exercise less can change from year to year with entities and for representing the data on-line for the than statewide jurisdiction and are organized coming into compliance, or perhaps from an automated system. DLG is actively getting quotes for the purpose of performing specific services audit conducted by DLG later over the data from vendors for the actual reporting portal within limited boundaries. DLG will continue to submitted completed by the SPGEs that shows which should not take long. monitor the requirements under KRS Chapter that data submitted at the time turned out to Mr. Michael Kurtsinger, Legislative Director 65A that SPGEs register and submit certain be incomplete. The total number of SPGEs can for the Kentucky Fire Commission, presented financials online. The Cities and Special Districts change over the reported time due to mergers the Fire Commission’s report and stated that Branch developed and implemented manual and dissolution, and that those changes can as of September 24, 2019, 84 out of 499 fire processes to assist SPGE compliance. Moving happen after the original data collection time departments were non-compliant for FY 19 year forward, DLG plans to transition to a new by a few years. In addition, the total numbers end actuals. As of the day before the meeting, the automated system for SPGEs. THE KENTUCKY GENERAL ASSEMBLY 63 numbers were 59 non-compliant out of 487 for Education and Workforce Development Cabinet, an 83% compliance rate. Nine fire departments INTERIM JOINT COMMITTEE ON was present to explain the administrative were recorded as merged, one became a county ECONOMIC DEVELOPMENT AND regulation. fire department, and one became a city fire WORKFORCE INVESTMENT In response to Representative Buddy department. For FY 18, 458 out of 460 fire Minutes of the 5th Meeting Wheatley, Mr. Smith said that there are likely departments complied with reporting. For FY of the 2019 Interim collective bargaining agreements that have 19, 88% are compliant. October 3, 2019 higher ratios of the standard three to one, but Mr. Kurtsinger closed by referring to a chart Call to Order and Roll Call the regulation specifically allows those collective of fire departments sorted by income in the The 5th meeting of the Interim Joint bargaining agreements continue to remain in packets made available to the committee. Committee on Economic Development and place and will not be impacted. In response to a question from Senator Workforce Investment was held on Thursday, Dippin’ Dots Schroder, Mr. Kurtsinger said that non-compliant October 3, 2019, at 1:00 PM, in Room 154 of the In 1988, microbiologist Curt Jones used fire departments are at risk of losing the ability to Capitol Annex. Senator Danny Carroll, Chair, his knowledge of cryogenic technology to participate in the commission’s grant programs, called the meeting to order, and the secretary invent Dippin’ Dots, which are the first ever and, if they are a volunteer fire department, risk called the roll. cryogenically frozen beads of ice cream that are losing 11,000 dollars of grant money which can Present were: created using liquid nitrogen and must be kept almost put them out of existence. Members: Senator Danny Carroll, Co- at a constant temperature of -40 degrees. The In response to a question from Senator Chair; Representative Russell Webber, Co-Chair; first Dippin’ Dots plant was located in Grand McDaniel, Mr. Kurtsinger said there are four Senators Perry B. Clark, Rick Girdler, Denise Chain, Illinois but eventually relocated to its different kinds of fire departments set out in Harper Angel, Ernie Harris, Jimmy Higdon, present day location in Paducah, Kentucky. The the KRS: city, county, Chapter 75 which are Wil Schroder, Mike Wilson, and Max Wise; current location is 185,000 square feet facility taxing districts and report to DLG or the Fire Representatives Lynn Bechler, Charles Booker, that includes the main plant, kiosk fabrication, Commission depending on income and spending Adam Bowling, R. Travis Brenda, McKenzie loading, and shipping. There are 200 employees, levels, and Chapter 273, which report exclusively Cantrell, Al Gentry, Kathy Hinkle, Thomas Huff, 125 of which are Kentucky residents. Dippin’ to the Fire Commission. Some Chapter 75 Nima Kulkarni, Savannah Maddox, Jason Petrie, Dots ships to all 50 states and four countries fire districts charge a tax, but contract for the Ashley Tackett Laferty, and Buddy Wheatley. by using dry ice for transport. Total retail sales provision of fire prevention services in their area. Guests: Brooken Smith, Chief of Staff, within the state are $6,072,992; total retail sales Representative Meredith noted that Chapter Education and Workforce Development Cabinet; nationwide are $365,254,166; and international 273 fire departments do not have taxing authority, Stan Jones, Chief Development Officer, Dippin’ sales are almost $3.5 million. Dippin’ Dots and Chapter 75 fire departments do have taxing Dots; Hannah Chretien, Executive Director, has three instate franchisees, 120 franchisees authority. Chapter 75 fire departments only have Ballard County Economic Development Board; nationwide, and have freezers in more than a fund raising ability that is optional for the Bob Wilson, Chairman, WAVE Agriculture 12,000 convenience, drug, and grocery stores. residents to pay. Committee; Kenny Wilson, Judge Executive, In 2018, Dippin’ Dots Cryogenics was created In response to a question from Hickman County; Todd Cooper, Judge Executive that supplies the specialized cryogenic pelleting Representative Rothenburger, Mr. Kurtsinger Ballard County; David Rambo, Chairman, equipment for pharmaceutical, nutraceutical, stated that the Fire Commission notifies the West Kentucky Regional Riverport Authority; and feed industries. It also provides ultra-low Chapter 75 fire departments that report over Greg Terry, Judge Executive, Carlisle County; temperature storage freezers. In order to expand 100,000 dollars in revenues for two years in a row Steven Elder, Consultant, WAVE Agriculture this new business venture, a 6,000 square foot to report to DLG. Committee; and Commissioner Robert Swisher, facility is being built in Paducah that will also In response to a question from Representative Department of Workers’ Claims. provide contract manufacturing. Graviss, Mr. Kurtsinger said that recruitment LRC Staff: Andrew Manno, Chip Smith, Dippin’ Dots is working to overcome several and retention and volunteers is a major issue. Candice Messer, and Sasche Allen. challenges. One challenge is a maturing market Programs have been started, such as junior fire Approval of Minutes that requires more overhead to accomplish and camps, to help with recruitment. Grants have A motion to approve the minutes of maintain growth. Another challenge has been been issued for volunteer fire departments. Exit the September 12, 2019 meeting was made trade barriers with the dairy tariff increasing with interviews to determine reasons individuals are by Co-Chair Russell Webber, seconded by Canada by 277 percent. Other challenges include leaving the fire services are not conducted by the Representative Adam Bowling, and approved by shipping and transportation costs, packaging, Fire Commission, but they would be willing to voice vote. and staffing. The maturing market has been examine the possibility of doing so. Consideration of Referred Administrative addressed by identifying new and less traditional The next meeting of the committee will be Regulation markets like chain entertainment venues. The held November 21, 2019 at 8:00 a.m. There being The following administrative regulation trade barrier may be overcome by utilizing no further business, the meeting was adjourned was placed on the agenda for consideration: 787 global manufacturing sites. Shipping and at 8:52 a.m. KAR 003:010 – Registration of apprenticeship transportation costs may be reduced by accessing programs. regional manufacturing and distribution centers. Brooken Smith, Chief of Staff of the Packaging may continue to pose an issue because

64 2019 Interim LEGISLATIVE RECORD compostable packing may not be sustainable. and Tennessee in Fulton County. WAVE has 2 percent assessment for coal employers and Dippin’ Dots has tried to deal with staffing issues formed the West Kentucky Regional Riverport $0.02 per ton of severed coal. There was an by increasing starting wages to $14 per hour and Authority that is working on establishing a assessment rate of 6.29 percent in 2018 and accommodating the schedules of its employees. commercial port through a public private 2017 with additional an additional 14 percent Recruiting high school and college students and partnership. The location of these four counties for coal employers and $0.15 per ton of severed offering employment opportunities to those in offers unique economic possibilities due to being coal. The additional assessment on coal went to a local rehabilitation center are also possible in close proximity to the Mississippi River, four fund the Coal Workers’ Pneumoconiosis Fund solutions to staffing problems. surrounding states, major highways, and several which was transferred to Kentucky Employers’ Responding to Senator Wil Schroder, Stan local technical colleges and universities. The Mutual Insurance (KEMI) in 2017 pursuant Jones said relocating the company to Paducah four judge executives, Todd Cooper of Ballard to HB 377 of the 2017 Regular Session. The from Illinois was a strategic move based on County, Greg Terry of Carlisle County, Kenny Workers’ Compensation Funding Commission better distribution and products, but shipping Wilson of Hickman County, and Jim Martin of and KEMI has determined that at the end of the has become an issue in recent years. Fulton County, hold monthly meetings and open second quarter of 2019, there is enough money Addressing Representative Lynn Bechler, conference calls every other week to discuss a in the Coal Workers’ Pneumoconiosis Fund to Mr. Jones explained that Dippin’ Dots would not proactive approach to increasing the economic eliminate the assessment. see any benefits from the United States-Mexico- vitality of their region. Through August 31, 2019, the Department Canada Agreement for at least 10 years. Department of Workers’ Claims Update of Workers’ Claims has had 2,602 claim filings. Replying to Co-Chair Danny Carroll, The National Council on Compensation Of those claims, 2,303 were due to injury; 24 Mr. Jones said that while some research and Insurance (NCCI) serves as the licensed rating were due to occupational disease; 108 were Coal development is done in-house, investments and statistical advisory organization for the Workers’ Pneumoconiosis claims; and 167 were will be made in 2020 for a new research and Commonwealth and 36 other states by gathering due to hearing loss. There are projected to be a development area. data from participating insurance carriers total of 3,903 claim filings by the end of 2019 Answering questions from Representative with respect to how much is paid during a compared to 4,047 in 2018. Commissioner Nima Kulkarni, Mr. Jones confirmed that given year in income and medical benefits in Robert Swisher said that the decrease in workers’ Dippin’ Dots does hold patents on its technology workers’ compensation claims. After performing compensation claim filings has been a national and machinery. He also further explained that statistical analysis, NCCI comes up with a trend that could possibly be attributed to the the area in which there are workforce shortages number which they consider to be the loss cost increased emphasis on workplace safety across are in manufacturing, utilities, production line for each of the 535 different class codes. The the country. work, and skilled maintenance. Dippin’ Dots loss cost is essentially how much premium a The passing of HB 2 in the 2018 Regular will offer training for manufacturing, utility, workers’ compensation insurance carrier has to Session made changes to the pharmaceutical and production line positions but prefers to hire collect to pay the projected income and medical formulary used, medical treatment guidelines, experienced maintenance workers. benefits for all claims during a policy year. The and the Coal Workers’ Pneumoconiosis Western Kentucky Alliance for a Vibrant overall average voluntary loss cost level change evaluation program. The Official Disability Economy submitted by NCCI to the Department of Guidelines (ODG) formulary was adopted and The Western Kentucky Alliance for a Vibrant Insurance that went into effect October 1, 2019 is became effective July 1, 2019 for post-2018 Economy (WAVE) is an economic development -9 percent. This marks the fourteenth consecutive injuries and January 1, 2020 for pre-2019 injuries. partnership between the Western Kentucky year that the loss cost filing has seen a decrease. The ODG formulary is the most widely used set river counties of Ballard, Carlisle, Hickman, and However, there was a 6.2 percent increase for of guidelines in the country. The ODG treatment Fulton. It was founded in 2015 and is made up surface coal mining and a 5.5 percent increase guidelines were also adopted with a proposed of eight subcommittees that include Steering, for underground coal mining. effective date of July 1, 2020. The Department Agriculture, Tourism, Entrepreneurship, The Special Fund is an account from which of Workers’ Claims has contracted with two Education, Infrastructure, Energy, and Port benefits are paid to individuals who had work qualified physicians to perform Coal Workers’ Authority. The most active subcommittees are the related injuries or developed occupational Pneumoconiosis evaluations required by KRS Agriculture Committee, Tourism Committee, diseases prior to December 12, 1996. The Special 342.316. Other areas that the Department of and Port Authority. The Agriculture Committee Fund has been closed to new claims for over 23 Workers’ Claims still needs to address include has created the WAVE Ag Initiative that creates years and is now in runoff status, paying about hearing site relocations, the pharmacy fee a bridge between agriculture and economic $48 million in claims to about 4500 claimants. schedule, telecommunication regulations, and development, serves as a liaison to farmers, The Special Fund Assessment is a surcharge the 2020 physician fee schedule. works to combat the Asian Carp crisis, and on workers’ compensation premiums to fund In response to Representative Ashley explores opportunities in the hemp industry. The the Special Fund, the Uninsured Employers Tackett Laferty, Commissioner Robert Tourism Committee has established KYGRRO Fund, and the operation of the Labor Cabinet. Swisher confirmed that both Coal Workers’ that has been further developing river bottoms The 2020 assessment rate is 6.41 percent with Pneumoconiosis evaluation sites are in in Ballard County, ATV trails in Carlisle County, no additional assessment on coal employers Lexington. Answering another question, the agritourism and Columbus Belmont State Park in or severed coal. There was an assessment rate Commissioner clarified that after planned Hickman County, and the link between Kentucky of 6.41 percent for 2019 with an additional hearing site relocations, hearing sites will be

THE KENTUCKY GENERAL ASSEMBLY 65 decreased from nine to five sites eventually. He creating interstate compacts in audiology, Koenig, Representative Thomas said the ASLP- also explained that although there is a three year speech-language pathology, and psychology. IC draft was written in conjunction with the statute of limitation on filing a claim, there is also Representative Thomas’ daughter graduated Council of State Governments (CSG). There are a statute of repose of five years. from the University of Kentucky with a master’s currently seven compacts nationwide, and he said Co-Chair Danny Carroll announced that degree in speech pathology and confronted this one is in the infancy stage and Kentucky can the next meeting of the Interim Joint Committee numerous barriers when marrying a man in help set the guidelines by being in the forefront. on Economic Development and Workforce the military and moving across state lines. Chairman Koenig said Kentucky is finding ways Investment will be November 21, 2019 at 1:00 in Every time she moves to another state there are to remove barriers to employment and allowing the Capitol Annex. different requirements for her to practice. The military personnel and spouses to more easily There being no further business, the meeting goal is to obtain the license in your home state, maintain their profession when relocating. This adjourned at 3:02 p.m. but be able to practice in any state within the helps provide services to populations currently compact agreement. There is an effort to get ten underserved or geographically isolated. INTERIM JOINT COMMITTEE ON states to agree to the compact and then fees and Senator Carroll commended the committee LICENSING, OCCUPATIONS, AND by-laws can be established. for honoring Kentucky citizens married or ADMINISTRATIVE REGULATIONS Douglas Keefe, M.S., explained the traveling in military families, as well as meeting Minutes of the 4th Meeting Audiology & Speech-Language Pathology the needs of the seven states bordering Kentucky. of the 2019 Interim Interstate Compact (ASLP-IC) facilitates the All compacts are beneficial and serve valuable October 2, 2019 practice of audiology and speech-language purposes. Representative Thomas noted that Call to Order and Roll Call pathology by securing a privilege to practice they are still bound by their home state license The 4th meeting of the Interim Joint in a member state or through telehealth. He is rules, and it is a privilege to practice in the other Committee on Licensing, Occupations, and a member of the Board of Speech-Language compact states. Administrative Regulations was held on Pathology & Audiology and the board’s charge is Representative Moser said reciprocity Wednesday, October 2, 2019, at 10:00 AM, in to protect the consumer by ensuring the people across states is a good thing because it removes Room 154 of the Capitol Annex. Representative who have speech pathology and audiology licensure barriers, and the nursing compact Adam Koenig, Chair, called the meeting to order, licenses have taken relevant professional has been very successful. She would like to see and the secretary called the roll. development to keep their license renewed. an interstate compact for social workers in the Present were: Consumers should take solace in the fact that future. Members: Representative Adam Koenig, participants still have to get their license in their Interstate Compact on Psychology Co-Chair; Senators Julie Raque Adams, Julian home state and meet all acceptable standards of Kentucky State Representative Lisa M. Carroll, Denise Harper Angel, Christian practice. Willner, Ph.D., Executive Director, Kentucky McDaniel, Dan “Malano” Seum, Damon Thayer, Mr. Keefe said the purpose of this Compact Psychological Association, said as a licensed and Reginald Thomas; Representatives Al is to facilitate interstate practice of audiology psychologist in the Kentucky General Assembly, Gentry, Thomas Huff, Matthew Koch, Nima and speech-language pathology with the goal of she is happy to partner with Representative Kulkarni, C. Ed Massey, Chad McCoy, Jerry improving public access to audiology and speech- Walker Thomas on bringing forth the Psychology T. Miller, Kimberly Poore Moser, Ruth Ann language services. ACLP-IC is operational when Interjurisdictional Compact (PSYPACT). This is Palumbo, Phillip Pratt, and Buddy Wheatley. ten states enact the legislation for the compact. an interstate compact that facilitates the practice Guests: Carson Kerr and Joseph T. Fawns, This compact will emulate and function similar of psychology using telecommunications Kentucky Public Protection Cabinet; Jason P. to occupational licensure compacts for nursing, technologies (telepsychology) and/or temporary Smith and Cindy Stinnett, Kentucky Boxing and psychology, medicine, physical therapy and in-person, face-to-face psychological practice. Wrestling Commission; Douglas Keefe, Kentucky emergency medical services. Representative Willner said the PSYPACT Speech-Language Pathology & Audiology Mr. Keefe said audiologists and speech- provides both pros and cons for providers. One Board; Eric Russ, Kentucky Psychological language pathologists licensed in their home state pro is that providers who take advantage of the Association; Patrick Cummings, Thoroughbred would apply for a privilege to practice under the compact can expand their practice, while it also Idea Foundation; Adam Haley, Casey Roof, and ASLP-IC. ASLP-IC states will communicate and increases competition. There is a severe shortage Russ Romine, Kentucky Academy of Audiology. exchange information including verification of of licensed psychologists across Kentucky, and LRC Staff: Tom Hewlett, Bryce Amburgey, licensure and disciplinary sanctions. They retain the interstate compact can really address client/ Jasmine Williams, Melissa McQueen, and Lisa the ability to regulate practice in their states. This patient access to care. Many members do not W. Mo o r e . increases access to client, patient, and student have a single, licensed psychologist in their Minutes care, and facilitates the continuity of care when counties, and this is a huge problem. The minutes from September 11, 2019, clients, patients, and students relocate, or travel. Eric Russ, Ph.D., President, Kentucky meeting were approved without objection. It also promotes cooperation between ASLP-IC Psychological Association, said one in four Interstate Compact on Audiology and states in the areas of licensure and regulation, and individuals will experience some mental health Speech-Language Pathology offers a higher degree of consumer protection issue in their lifetime. Licensed psychologists Walker Thomas, State Representative, said across states lines. bring years of experience and are experts Kentucky House of Representatives Speaker Responding to a question from Chairman in diagnosing and treating mental illness. David Osborne is interested in Kentucky

66 2019 Interim LEGISLATIVE RECORD Psychologists work in a multitude of settings Advisory Panel to designate one or more of Ms. Stinnett clarified it is amateur mixed martial including psychiatric hospitals, the VA, its physician members to assist the Executive arts, professional wrestling, professional boxing, community mental health clinics, schools and Director of the commission in the review of and professional kick boxing. colleges, healthcare settings, and in private physical exams and other medical records that Responding to Representative Moser, Mr. practice. are submitted at the time of licensure, and to Fawns said members of the panel are currently Dr. Russ said the PSYPACT is an interstate compensate that physician $500 per month of compensated $100 per meeting, but they do compact that provides a mechanism for the service. This amendment would assist in the not necessarily meet to review these every day. ethical and legal practice of telepsychology. It recruitment and retention of experienced and Ideally, the panel would have one member reduces regulatory barriers and provides for qualified physicians. Moreover, it will help the that would review the physicals for one month client or patient protection. As people begin to commission continue to emphasize and promote and then that person would be compensated understand more about mental health issues the standards for the health and safety of all $500. Representative Koenig suggested that the and the need to treat them, there has been an combat sports participants. language be amended to say “up to” $500. increase in those seeking psychologist services Mr. Fawns said the Kentucky Boxing across Kentucky. Unfortunately, like so many and Wrestling Commission (KBWC) Medical Fixed Odds Wagering on Horse Races other health professionals, psychologists are not Advisory Panel consists of three to five physicians Patrick Cummings, Executive Director, always available in underserved areas, including appointed by the Secretary of the Kentucky Thoroughbred Idea Foundation, said Kentucky rural regions. Increasingly, psychologists are Public Protection Cabinet. Each physician must can set an example for the rest of the country in using telehealth as a means of responding to the be licensed to practice medicine in Kentucky horse wagering. He thanked Chairman Koenig demands for services. Psychology is uniquely and knowledgeable in one or more medical for his leadership related to the thoroughbred suited to take advantage of telehealth services fields related to the kinds and types of injuries industry in Kentucky. The thoroughbred as the key intervention is talking and does not or conditions likely to be the result of unarmed industry is thriving and as a horse owner he said require additional equipment, like some medical combat. He noted at least one of the panel incentives to buy Kentucky breeds and race in specialties. members must be a neurologist. Kentucky is strong. He said hopefully Kentucky Dr. Russ said mental health treatments are Mr. Fawns said the panel is responsible will also catch up to the rest of the country in just as effective for patients through a live video for advising the Commission on issues relating allowing sports wagering, and modernizing link in telehealth as an actual office visit. Recent to the health and safety of combat sports horse wagering. changes in legislation in Medicaid and insurance participants. It was created in 2008 as part of a Mr. Cummings said horse racing does not reimbursement have made telepsychology within lawsuit settlement. have to be only pari-mutuel, and can also include Kentucky a more available option. PSYPACT Mr. Fawns said challenges included panel fixed odds wagering. Customers want the would be particularly helpful in expanding members being asked to review physicals, often opportunity for fixed odds as they know what access to care when patients travel out-of-state on a daily basis. Members devote a significant to expect in return. There are many benefits of and minimize disruptions in patients who move amount of time reviewing records outside of their amending horse wagering laws to include fixed frequently, such as family of military personnel. regular practice, and they are not compensated odds It will modernize a struggling industry, Finally, a PSYPACT psychologist living near for this valuable service. Members are only which provides a tremendous amount of jobs, bordering states would be able to more easily compensated for in-person meetings of the and has a substantial economic impact. It will serve those in their geographic region. panel. Also, recruiting and retaining individuals domesticate a business which American racing Dr. Russ said PSYPACT provides protection to serve on the panel has been difficult. Between operators, including some in Kentucky, are to the public by certifying that psychologists 2008 and 2016, the panel was vacant. In 2016, already tapping into internationally. Finally, it have met acceptable standards of practice, and four members were appointed and sworn, and will serve as a legal volley against the growing, provides compact states with a mechanism to seated at once. Since 2016, all members have illicit, off-shore operators who are poaching address disciplinary issues that occur across state resigned prior to the expiration of their term. customers in Kentucky, and hurting horse people lines. It increases access to mental healthcare One physician sits on the panel. in the industry nationwide. when care is not readily available, while also Mr. Fawns summarized that the legislative Mr. Cummings said the Thoroughbred Idea providing continuity of care for an increasing request is to allow the medical advisory panel Foundation was launched a year ago and is a mobile society. PSYPACT legislation has already to designate one or more of its physicians to privately funded think tank for thoroughbred been passed in twelve states, and four more have assist in the review of medical records and racing. Its purpose is improve the thoroughbred legislation pending. Kentucky, as a psychology be compensated $500 per month of service. racing industry for all stakeholders, especially compact state, affords fellow Kentuckians with This change will assist in the recruitment and its primary customers, gamblers and owners, more opportunities to receive the highest level retention of panel members. It also allows the through the exchange, curation, and advocacy of mental health services from doctorate and commission to continue to prioritize the health of sound, data-driven ideas, shared with and licensed psychologists. and safety of combat sports participants. implemented by the sport’s existing entities. Boxing and Wrestling Commission Responding to a question from Senator Mr. Cummings said there are some bright Joseph Fawns, Legislative Liaison, Public Seum, Mr. Fawns said the panel would be spots in the horse racing industry, but the Protection Cabinet, said their legislative request responsible for all combat sports include boxing, overall financial metrics of racing are down. The is to amend KRS 229.260 to allow the Medical wrestling, mixed martial arts, and kick boxing. foal crop is at its lowest point since 1965, and

THE KENTUCKY GENERAL ASSEMBLY 67 wagering on the sport across America is down foundation is privately funded by individuals would not harm the exotic wagers, which account 50 percent over the last 15 years, after adjusting and not supported financially through Kentucky for the majority of the tote handle. Bookmakers for inflation. Revenue from wagering is a key racetracks. do not want to take on the liability of paying out driver of prize money, and is the most significant Responding to a question from Senator of $100,000 superfecta in the Kentucky Derby incentive for owners to continue participating McDaniel, Mr. Cummings said Keeneland is fixed odds where someone hit it multiple times. in the sport. Fixed odds wagering can help by supportive of the marketing and business aspect It does require careful management and there are allowing customers to know exactly their return of the measure, while Churchill Downs has not third parties that can provide those services. It is if the bet is successful. The odds can change, but made a public comment. He noted that Churchill not a skill that horse track operators would have only to future customers. In Nevada, and other Down’s silence does not mean it is not supportive to possess as there are many firms globally that states, customers are enjoying the opportunity to of the measure. can manage it. make these fixed odds wager either on a single Chairman Koenig recognized House Responding to a question from game, a set of games, or future bets. Speaker David Osborne and Jay Hartz, Director, Representative Miller, Mr. Cummings said he Kentucky Derby wagering is open for only Legislative Research Commission, for being in has no opinion on how to get this legislation ten days currently, but marketing would thrive attendance at the meeting. passed, or whether it requires a constitutional if the public could wager for ten months on the Senator Thayer said he is supportive of amendment. He will defer to the committee premier race. The American market for sports fixed odds wagering and would like the language and their expertise on the best way to get the betting is widely estimated to be between $80 included in Chairman Koenig’s sports wagering legislation passed. Representative Miller stated and $150 billion a year, all of it on fixed odds bets. bill. He would like Kentucky to lead the way on he also supports casino gaming. He said to combine fixed odds wagering in horse this issue and the horse industry to be included Representative Koenig said his non-attorney racing, Kentucky would need a new business in the growing popularity of sports wagering legal opinion on whether or not this change model, different pricing to customers, and being implemented across the country. requires a constitutional amendment, is that fixed presenting the sport to modern audiences in a Responding to a question from Senator odds wagering falls under the same umbrella as way in which the market is already meeting their Thayer, Mr. Cummings said regardless of sports betting. He indicated that he will have a expectations with other sports. Bill Knauf, Vice Keeneland and Churchill Downs taking a legal expert coming to testify at a special called President of Business Operations, Monmouth wait and see approach, this approach could December meeting of the committee. He hopes Park in New Jersey, sees the combination of fixed be implemented on a track by track basis. The all members can attend this important discussion odds and horse racing as a potential new revenue horse racing sport has been losing fans and on the legalities of sports wagering. stream, and they will push the issue during the not modernizing at the pace it should be, and Responding to a question from Senator next year. He believes there is a massive audience this offers wagering in a more straightforward, Seum, Mr. Cummings said several tracks have out there that bets sports but has never tried to simple fashion. Senator Thayer says horse racing implemented an open-door policy and it makes it bet horse racing, and they want to engage that should be innovative to attract new customers to very difficult to track attendance. Mr. Cummings customer. the sport. said the horse racing sport has had an issue with Mr. Cummings said off-shore entities are Responding to Representative Wheatley, Mr. attracting young customers, and fixed odds attempting to cash in on the growth in fixed odds Cummings said language is very broad in other wagering may attract young people and help the betting overall. One site, Betusracing, based states that have passed legislation to regulate future of the sport. They want to know the exact in Costa Rica, actively recruits and markets to fixed odds betting. Representative Wheatley return of their bet. Senator Seum said he cannot American horse players by hiring several award said he needs more technical details on fixed imagine horse tracks not using turnstiles to winning racing journalists to produce content odds wagering. He noted pari-mutuel wagering track attendance, and he is concerned about the for their platform. These sites allow fixed odds allows for weather and horse cancellations. Mr. survival of the horse industry long-term. He has wagering on big races, such as the Kentucky Cummings said Australia is a great example been supportive and in favor of sports wagering Derby, and can allow American and European as its horse tracks allow for a combination of for several years. customers to make wagers up to ten months wagering, two-thirds fixed odds, and one-third Responding to a question from Senator prior to a race. This can put TVG and TwinSpires pari-mutuel. He noted Australia’s horse industry Carroll, Mr. Cummings said the tax rate in at a disadvantage as the laws do not allow them started out as primarily pari-mutuel betting only. Kentucky on pari-mutuel wagering is clear, with to offer fixed odds wagering, and they need to be The minority of money is on single horse wagers a percentage appropriated in an established, on a level playing field. right now in the tote system, which is win, place, clear manner to the horsemen and to the state. Mr. Cummings said Kentucky has the or show. Most fixed odds bets on racing are going He said to determine tax percentages for fixed opportunity to modernize horse betting and to be focused on the performance of one horse, odds racing, the state is starting from scratch. make a home grown industry. On behalf of not trifectas, or superfectas. One of the concerns There are examples to follow, and in general on the Thoroughbred Idea Foundation and the that has been suggested for a very long time is the current pari-mutuel bets, the total takeout greater horse racing industry, he asked the that there would be accountability in existing paid to the track, is about 20 percent. In Nevada, committee to remember horse racing when tote pools. It has not been the case that this type which has a very efficient sports betting market, considering any potential bill on legalizing of wagering hampers growth and eats into the the average hold on a sports bet is five percent. sports betting, or amending existing regulations existing tote pool, and there is a robust 20-year There is no expectation that racing would be able that limit racing to pari-mutuel wagering. His time period to support this position. Fixed odds to charge five percent even though the customer

68 2019 Interim LEGISLATIVE RECORD would love it, it is not a realistic scenario. Racing Kentucky can get on board with this model. Chairman Koenig’s sports betting bill has a tax is funded through wagering, which makes the Representative Gentry agreed, but cautioned that rate of 10 percent for brick and mortar buildings funding model for players, racetrack operators, moving forward, if Kentucky primarily utilizes and a 14 percent tax rate for online mobile bets. and licensees, a higher percentage of tax. It has to fixed odds betting, there is a situation where Kentucky may want to look at a similar model be determined how much the percentage is and the outcome could affect the benefit of a license for fixed odds wagering. The tax rates also have what piece do the horsemen get to fund purses holder; the structure is critical to get correct. He to be kept at a competitive level, or customers and prize money. He expects the percentage would never be in favor of fixed odds wagering will not wager on it. The competition are people numbers to be around 10 to 11 percent, although replacing the pari-mutuel wagering completely, doing this illegally, so the tax rate must be at a racetracks would probably like it higher. This but utilizing it as a supplement. level that the customer will want to wager on funding model is completely different, and Responding to a question from the products, and the operator will invest in it will require a fresh look. He noted there are Representative McCoy, Mr. Cummings said the appropriately to attract people who are currently international experts who can be engaged to English funding model has been atrocious, and making the wagers illegally. Again, he hopes discuss common pitfalls and suggestions for Kentucky does need to get purse money increased. to see this component added into Chairman successful tax structures. It is important for horsemen to be involved in all Koenig’s sports wagering bill and pass out of next Responding to Senator Thomas, Mr. discussions involving purse monies in the horse year’s 2020 Kentucky General Assembly. Cummings said the European bookkeepers industry. The International Horse Racing Act Kentucky Academy of Audiology have an agreement with the American track from 1978 required the horsemen be involved in Adam Haley, Director of Public Policy, operators, and are sharing revenue back to the selling the rights to the product that they provide Kentucky Academy of Audiology (KAA), said tracks. This is a legitimate business model and and supply. He said obtaining their buy-in, and Kentucky is one of seven states that still require would make it difficult to know if there was ensuring their understanding that this concept audiologists to hold both an audiology license an infringement on something offshore. It has benefits prize money, is key to its success. He and a license to dispense hearing aids. He been estimated that the market for American does not know what the exact percentage number introduced Russ Romine, the newly appointed fixed odds betting by European customers on should be at this time, and does not currently Executive Director, KAA. He deferred to Dr. Roof American races is roughly $1 billion pounds have a recommendation. The Australian model to discuss the qualifications and background of annually, which is about $1.4 billion United is a good example, but Americans should want audiologists. States dollars, or roughly 10 to 15 percent of no part of the British model. Dr. Casey Rutledge Roof, President, total American turnover on racing, which is a Responding to a question from Senator Kentucky Academy of Audiology, said the significant number. He said there is a wide swath Harper Angel, Mr. Cummings said there is a Commonwealth of Kentucky has 916,000 of European countries participating in this concern among those who are against this idea residents with hearing loss, representing more betting, as well as Australia, South Africa, and that operators could lose control. He said the than 20 percent of the population. Meanwhile, Asia. Asia has the largest overall hold on horse success completely depends on how Kentucky there are approximately 200 licensed audiologists racing. Globally, over $106 billion is wagered on structures the funding model, and enables in the state to serve them. The KAA and its horse racing through pari-mutuel betting, while free market behavior. Kentucky has a unique members are dedicated to delivering evidence- $60 billion is waged on fixed odds betting. The opportunity to set an example for the rest of the based diagnostic and treatment services, Asian markets are exclusively pari-mutuel, and country in the wagering and horseman side of including hearing aid dispensing and fitting they are easily the largest markets in the world. the issue for states who have not yet legalized this services that ensure optimal patient outcomes. Responding to questions from type of wagering. Unfortunately, archaic regulations impose Representative Gentry, Mr. Cummings said New Senator Thayer enjoyed the discussion and significant barriers for audiologists seeking to Jersey’s fixed odds wagering amount is a very noted that Mr. Cummings is a former member practice in Kentucky. low percentage of the total handle. New Jersey of the Hong Kong Jockey Club, and has great Dr. Roof discussed the statutes that require has only used this wagering around their biggest experience as a horse owner. He is a wonderful licensed audiologists to also hold two separate races, such as the Haskell Invitational. He noted resource for the committee on a variety of horse duplicative licenses for hearing loss treatment $21,000 was handled in fixed odds wagering in racing issues and is now a Kentucky thoroughbred and rehabilitative services. KAA recognizes the Haskell Invitational at Monmouth Park last horse owner. He emphasized Kentucky is leading the importance of licensure for professionals year. Representative Gentry said it is a very low the way in the horse industry and has seen an involved in fitting and dispensing hearing aids percentage, because this type of wagering is so increase in purse sizes due to the addition of as a means of consumer protection. However, new to the United States, but the potential is the historical horse racing. He said fixed odds requiring audiologists to hold two licenses for very good for higher amounts in the future. wagering is a great supplement to pari-mutuel the same services offers no additional protection Mr. Cummings said a track operator or a wagering. to the consumer. In fact, subjecting audiologists bookmaking manager would approach fixed Senator Thayer said operators, the state, and to the authority of a licensing board, comprised odds wagering liabilities the same way as a the horsemen/purses must be considered when largely of competitors, creates opportunities sports bet and a racing bet. In many other parts enacting a taxation plan. He said pari-mutuel for unchecked anticompetitive behavior. of the world, where fixed odds betting is allowed, wagering contributes to our state’s general fund Additionally, as the education and training sports and racing are intertwined. He said for each year, and purse sizes will continue to be requirements for audiologists are substantially the sake of the horse racing industry, hopefully of increased importance to all parties. He said more advanced than those of hearing aid

THE KENTUCKY GENERAL ASSEMBLY 69 specialists, they are unqualified to provide called the Surface Transportation System oversight of the licensure for audiologists as it A presentation from the I-95 Corridor Funding Alternatives Program. The objective related to the dispensing of hearing aids or any Coalition regarding interstate interoperability of the Surface Transportation System Funding other service within an audiologist’s scope of Roger Cohen, Senior Policy Analyst Alternatives Program was to develop and practice. Therefore, the appropriate licensure to the Secretary, Pennsylvania Department research revenue generation structures for requirements for the practice of audiology are of Transportation gave a brief presentation the long-term replacement of motor fuels universally and singularly contained under the regarding interstate interoperability as well taxes. The U.S. Department of Transportation Kentucky licensure statute for Audiology, KRS as the Mileage Based User Fee (MBUF) pilot provided research grants between $15 million 334A. project that is being conducted by the I-95 to $20 million for five years through FY 2020 to Mr. Haley said audiology has undergone corridor Coalition. Funding for United States complete the necessary research. The objective many changed in the past few years. He noted roads and bridges has been primarily sourced is to demonstrate user based alternative revenue eliminating dual licensure requirements will through motor fuels taxes since 1919, when mechanisms that utilize a user fee structure to make it easier for consumers to access the hearing the first motor fuels tax was implemented in maintain the long-term solvency of the Highway health services they need by removing the anti- Oregon. It has been an effective way to raise and Trust Fund. competitive regulatory framework, as well as collect funds. In recent years, it has increasingly Mr. Cohen stated that the MBUF pilot’s the financial penalties tied to the second license shown itself to be an inadequate source of purpose is for research, not policymaking. Most for licensed audiologists who are committed funding for transportation infrastructure MBUF research has been conducted in the to serving them. KAA believes that addressing mainly due to inflation. The purchasing power western most states. California, Washington, these unnecessary barriers to practice will help of the federal gas tax has declined by over 40% Colorado, and Minnesota have conducted a address the shortage of providers in Kentucky’s since it was last increased in 1993. In 2013, the MBUF pilot program. Oregon has an on-going health professional shortage areas and bring Pennsylvania Legislature passed “Act 89” which MBUF program. A total of 14 states have taken much-needed updates to Kentucky’s licensure greatly increased the state’s motor fuels tax, part of MBUF studies through their Road User laws. He noted that KAA will be offering giving Pennsylvania the highest motor fuels tax Charge (RUC) West membership. language for an amendment this upcoming 2020 rate. Then a couple of months ago, California The I-95 Corridor Coalition was formed to Kentucky General Assembly Session to change became the state with the highest motor fuels conduce a MBUF study that brings in the east that requirement, and bring parity to audiology. tax. Even with the increased motor fuels tax in coast perspective. The goals of the study include There were no questions from members. Pennsylvania, a buying power erosion of up to identifying technical issues and the feasibility With no further business before the $100 million was realized annually since that of technology needed and used, identifying committee, the meeting adjourned at 11:30 a.m. enactment. challenges of multi-state travel patterns, and Mr. Cohen stated another reason motor studying interoperability with toll collection MILEAGE BASED fuels tax has become inadequate is due to systems. The study is also meant to research TRANSPORTATION FUNDING the increased fuel economy of the fleet. With public awareness of motor-fuels tax insufficiency TASK FORCE increased fuel economy comes decreased fuel and road user fee alternatives. Finally, the study is Minutes of the 3rd Meeting consumption, leading to a decline in motor fuels to research freight impacts, and user acceptance of the 2019 Interim tax collected. and concerns. September 30, 2019 Vehicle electrification has also become Mr. Cohen stated that a plug-in tracking Call to Order and Roll Call a main reason motor fuels tax is becoming device called Azuga has been utilized in order The 3rd meeting of the Mileage Based an insufficient way of funding transportation to complete various studies in the MBUF pilot. Transportation Funding Task Force was held infrastructure. The projection of market It is a device that the participants of the pilot on Monday, September 30, 2019, at 1:30 PM, in penetration from the U.S. Energy Information program plug in under their steering column. Room 171 of the Capitol Annex. Representative Administration posts three scenarios, a low, A mileage rate was established that was roughly Ken Upchurch, Chair, called the meeting to middle, and high scenario until 2040 given the equivalent to the fuel tax rate per state and at the order, and the secretary called the roll. The increasing emergency of the climate crisis. It end of each month, the mileage is tracked and minutes from the Committee’s September 9, was determined that at least in Pennsylvania, the participant would receive a simulated bill in 2019 meeting were approved. the projection will lean towards the high side. the mail that would reflect on the vehicle miles Present were: A large increase in electric vehicles is projected. traveled. Members: Senator Jimmy Higdon, Co- Revenues from gas taxes have been on the Phase one of the pilot project took place in Chair; Representative Ken Upchurch, Co-Chair; decline, particularly relative to GDP. Delaware and Pennsylvania in 2018. There were Senators Gerald A. Neal and Albert Robinson; The Congressional Budget Office projects 155 participants with 459,000 miles logged over Representative Terri Branham Clark and; Jim within the next decade indicate that the Highway three months’ time. One fifth of those miles were Oliver, Jason Siwula, and Bryan Sunderland. Trust Fund will be deep into insolvency. A chart traveled out-of-state. Key findings from phase Guests: Roger Cohen, Senior Policy Analyst was provided to the committee to showcase the one included that privacy concerns were reduced to the Secretary, Pennsylvania Department of projections. by almost half, 31% of participants over-estimate Transportation (via teleconference) Mr. Cohen stated with the enactment the fuel tax load, users like the battery and car LRC Staff: John Snyder, Brandon White, of the FAST ACT, a provision was provided health features that the Azuga device provides, Dana Fugazzi, and Christina Williams

70 2019 Interim LEGISLATIVE RECORD and 94% of participants stated they would ways to collect funds, Mr. Cohen stated they LRC Staff: Jessica Sharpe, Breanna Miller, continue participating in the research. have explored other possibilities such as moving and Dawn Johnson Phase two of the pilot project included a towards higher registration feeds or reducing Minutes multi-state truck pilot. Partners of the truck pilot administration costs by going by an odometer A motion by Senator Schickel and second include the American Truckers Association; based reading at registration. by Representative Lewis to approve the minutes American Automobile Association; U.S. Chamber Senator Higdon stated that the rural of the September 11, 2019, meeting carried by of Commerce; International Bridge, Tunnel, inequities come from people in rural voice vote. and Turnpike Association; National Governors communities are more likely to drive less fuel Long-Term Care Insurance Association on-governmental agencies; and the efficient vehicles, therefore it may benefit them Jana Lee Pruitt, Regional Vice President Port Authority of New York and New Jersey. to have a MBUF system. of State Relations, American Council of Life The project included 55 vehicles that over the In response to a question asked by Senator Insurers (ACLI) explained they are a national course of the first six months of the program Higdon, Mr. Cohen stated the RUC West trade association representing 290 member life have traveled to or through 27 states, and logged program is also looking into a MBUF system. insurance companies who write the majority 1.4 million miles. The preliminary finding is A motion was made and seconded directing of life insurance annuity and long-term care that the technology may work with the tracking staff of LRC to draft a summarization memo insurance premiums in the country. Ms. Pruitt devices already used in trucks that integrate with that the Task Force could go over in their next introduced Mr. Piacentini and Ms. Graeber. the International Fuel Tax Agreement as well as meeting. The motion was approved by voice Mr. Piacentini explained that long-term the International Registration Plan reporting. vote. With no further business to come before care needs are increasing as more Americans The fuel efficiency penalty is amplified due to the meeting, the meeting was adjourned at 2:05 age. Approximately 13 million people are the intensity of use. There were 880 participants P.M. receiving long-term care services, with the from 15 states overall in phase two. The majority number projected to increase to 27 million by of participants were from Pennsylvania and INTERIM JOINT COMMITTEE ON 2050. It is important that consumers have access Delaware. Monthly statements from phase two BANKING AND INSURANCE to meaningful solutions to protect themselves were adjusted and used for education purposes. Minutes of the 3rd Meeting and their retirement assets should the need for Mr. Cohen listed some issues, complexities, of the 2019 Interim long-term care services arise. Long-term care and concerns with the MBUF program. One October 2, 2019 (LTC) insurance is not medical insurance. It is issue is the technology that is being used to track Call to Order and Roll Call coverage designed to help individuals who lose the mileage is not user friendly. Participants The 3rd meeting of the Interim Joint the ability to perform daily activities, either have issues finding the port, or being able to plug Committee on Banking and Insurance was held through a disabling event or just through the it in the port. They are also having issues with on Wednesday, October 2, 2019, at 3:00 PM, in aging process. Typically, benefits are paid directly going in and registering the device online. As a Room 154 of the Capitol Annex. Senator Jared to the consumer and will often be redirected to result of this, discussions have been had with the Carpenter, Chair, called the meeting to order, a care provider. Benefits enable an individual provider of the technology, and they are making and the secretary called the roll. to seek care in the home, an assisted living some changes in the user registration. Present were: facility, or a nursing home. Based on the policy, Another concern is the large administrative Members: Senator Jared Carpenter, Co- LTC benefits would cover a certain amount per costs associated with the program. Rural Chair; Representative Bart Rowland, Co-Chair; day. If purchased, inflation protection would inequities and perverse outcomes, such as Senators Rick Girdler, Dennis Parrett, Albert automatically increase benefits each year to keep the system rewarding drivers of fuel efficient Robinson, John Schickel, Brandon Smith, and up with increases in cost of care. Benefits may vehicles, are also concerns. Lastly, data privacy Reginald Thomas; Representatives Terri Branham not begin immediately and may not cover the and security concerns along with a gap in public Clark, Joseph M. Fischer, Deanna Frazier, Jim entire disability, depending on the policy. Some understanding is a complex issue that must be Gooch Jr., Kathy Hinkle, Adam Koenig, Stan earlier policies provided lifetime benefits. addressed. Support from state leaders is essential Lee, Derek Lewis, Michael Meredith, Wilson Jan Graeber, Senior Health Actuary, in the MBUF program. Recruitment to partake Stone, Ken Upchurch, and Rob Wiederstein. American Council of Life Insurers explained in the program was challenging and a key Guests: Chuck Piacentini, Vice President, the dynamics of pricing a long-term care policy. lesson that was learned was that enrollment in Insurance Regulation and Associate General Pricing is based on various assumptions, like the program needs to be easier and faster. More Counsel; Jan Graeber, ASA, MAAA, Senior the probability of death before benefits are information could be obtained through the Health Actuary; and Jana Lee Pruitt, Regional received, the probability the insured will stop website www.i95colaitionmbuf.org. Vice President, State Relations, American paying premiums before they receive benefits, In response to a question asked by Chairman Council of Life Insurers. Patrick O’Connor, and the probability the insured will be eligible to Upchurch concerning the administrative costs II, Deputy Commissioner of Policy, Kentucky receive benefits and for how long. LTC insurance of the program, Mr. Cohen stated he would get Department of Insurance; Dave Dillon, FSA, was designed to be a level premium product. that information to the Committee as soon as MAAA, Senior Vice President and Principal, Premiums generally should be collected for possible. Lewis & Ellis, Inc.; Bart Baldwin, Executive many years before claims are made. Premiums In response to a question asked by Senator Director, ABA Advocates; Anne Gregory, and are used for policy administration, shareholders, Jimmy Higdon concerning looking at other Becky Nastally, PhD, BCBA-D, LBA, Owner/ taxes, and commissions, but the bulk goes Executive Director, Bloom Behavior Therapy. THE KENTUCKY GENERAL ASSEMBLY 71 to reserve funds for future benefits—the net stabilize the market to enable additional carriers one percent to 126 percent. Many rate increases premium. Net premiums are deposited similar to to get into the next generation of LTC, which are for “closed block” plans that are not for sale interest earning savings accounts. The scheduled ensures consumers have access to meaningful anymore. Rate filings beginning with 2018 are deposit amount is determined initially based products to protect themselves and their families. public record and available online. on estimates of benefit payments and interest Responding to Representative Stone’s Deputy Commissioner O’Connor explained earned. If the estimates are incorrect, the question about premiums that have been that rate increase requests are filed electronically. account may not have enough to cover future collected but not dispersed due to lapse of The application includes basic filing information withdrawals. The amount of funds withdrawn payment or death, Ms. Graeber said the net and a detailed actuarial memorandum depends on the number of people who keep premium goes into a reserve fund. LTC generally supporting the request. Rate filings are subject to their policies, the number of those who will does not provide a non-forfeiture benefit. Most independent actuarial review. Factors considered use benefits, and the amount that is paid out to companies will offer a contingent non-forfeiture include lifetime projections of earned premium people who use benefits. When LTC insurance benefit in the event of a lapse, which is a return and incurred claims, comparison to new product is priced, future net premiums plus the reserve of your premium, similar to life insurance. Ms. premiums, if applicable, impact to various subsets fund must balance. They become out of balance Graeber said when the model was developed, of policyholders, state-by-state comparisons, and when expected future withdrawals outweigh the it was assumed that a higher number of people prior period premium review and projection. If deposit schedule. Rate increases are needed to would lapse their policies, however, more a policyholder will be subject to a rate increase, restore balance. people than projected held on to their policies. the KDOI wants to see ways the company can Mr. Piacentini said LTC insurance is a Mr. Piacentini said this is why there is growth mitigate its impact. This includes multi-year relatively new product developed in the 1970s in the hybrid plans because those plans have a phase-ins and decreasing benefits to mitigate and 1980s. Cost projection assumptions have guaranteed payout. In the case of a policyholder premium increases. The department also reviews been wrong. Over time, as insurers became more who is unable to pay due to a rate increase, and approves correspondence provided to experienced and evaluated the need for sufficient there may be some mitigation offered through a policyholders. Deputy Commissioner O’Connor premiums to cover claims it was determined paid-up policy. If an individual meets the LTC said LTC insurance rate increase requests there was a gap. The industry has been working triggers, typically their premiums are no longer are a significant concern for the KDOI. They with insurance departments to ensure a collective payable under most policies. are collaborating with other states to devise understanding of what level of premium is In response to Senator Parrett’s question solutions. The KDOI tries to balance financial necessary to ensure that consumers have the about whether there have been insolvencies in solvency concerns of insurers with consumer benefits within their contracts. Although these Kentucky, Mr. Piacentini said two insurers in interests and is focusing on improving the review were projected as level premiums, they were Kentucky were associated with the Penn Treaty process to become more timely and efficient. structured as guaranteed renewable, meaning insolvency. The Kentucky Guaranty Association Dave Dillon, Senior Vice President and premium rates cannot be raised on individual would have picked up the coverage for that, up to Principal, Lewis & Ellis, Inc. is a health actuary consumers. However, if the entire program is the guarantee limits of $300,000. that has been engaged by the KDOI since 2012 to insufficient, premiums can be raised across the Patrick O’Connor, Deputy Commissioner review and make recommendations on provider board to address existing shortfalls. He said the of Policy, Kentucky Department of Insurance rate increase requests. He is the health actuary industry needs to do a better job explaining the (KDOI) said the department receives a number for ten other states. Mr. Dillon said that while need for rate increases to consumers. of complaints from LTC insurance policy holders the life insurance industry is fairly consistent, Mr. Piacentini stated that the next generation about rate increases. The KDOI does not “rubber the LTC insurance industry, which is relatively of LTC insurance options for consumers is stamp” rate increase requests. There is a thorough new, is not. There are many considerations when critically important. New options include review process and not all requested amounts looking at reasons for insufficient premium life insurance hybrid or combo products that are approved. Another common complaint from amounts. Losses are difficult to overcome. When combine LTC benefits with a life insurance or policy holders is their belief that companies are plan products were first priced in the 1970s and annuity policy. These products are much less risky not allowed to increase rates. A provision of 1980s, they were priced primarily like annuity because insurers know that benefits are going to Kentucky law, and language included within the products, with similar assumptions. Lapse rates be paid out either as LTC or death benefits. He policy, allows rate increases. Since 2016, KDOI were overestimated by three to four percent. recommended exploring financing options for has received 206 rate increase request filings Over an extended period of time, large rate LTC benefit plans. The industry is advocating from 45 different insurance companies. Because increases were the result. Mr. Dillon said many for increased consumer access to tax preferred there is a maximum 90 day period to review the key players have exited recently. There are not funds to reduce the cost of LTC premiums. requests, some agencies are asked to refile if more many new policies. He said the Genworth/ Mr. Piacentini said ACLI works to ensure the time is needed. Resubmitted applications are China Oceanwide transaction is very important. sanctity of the state guaranty association system, included in the total number. The Department Genworth has had some financial difficulties and which provides a level of protection should there has approved 123 rate increase requests. The has filed for many rate increases. They are in the be an insolvency. In the next generation of LTC average increase requested was 49 percent. process of being purchased, but have faced a lot products, ACLI will consider how to address Increases requested range from 5 percent to of regulatory issues from different entities. There LTC risk to ensure greater premium certainty for 231 percent. The average approved increase have not been many transactions nor have there customers. The importance of rate increases is to was 24 percent. Increases approved range from been many people buying and selling blocks for

72 2019 Interim LEGISLATIVE RECORD investment purposes for different reasons. This before purchasing their policy. It was obviously Mr. Dillon agreed, saying someone with any may be about to change. Mr. Dillon said life and something they were going to keep unless specific type of condition will not get a rate annuity hybrid products account for 85 percent something catastrophic happened. Their policy increase based on it. of new sales which is good because life insurance has cost approximately $70,000, so they were Representative Gooch said members are is more stable. Pairing a highly volatile product not going to lightly reduce their coverage. They sympathetic to the issue. Guaranteed renewable with a more stable product is good. Growth has experienced a sudden increase of $3,400 out of plans were sold decades ago that were not been mainly in affluent markets so there are their budget. They contacted their insurance actuarially sound, but they are now closed, which still a lot of opportunities in the middle market. carrier to find out what the insurance company means no new premium dollars are going into Mr. Dillon reviewed provider data on actual-to- was doing to shoulder some of the burden. The these particular plans. As rates increase, younger expected covered lives and actual-to-expected insurers should be held responsible since the and healthier people find cheaper plans. Those claims. He also stated that LTC insurance rate product was so faulty to begin with. The Enstices left in the plan may be older and sicker and using increases are a nationwide issue. Prior to 2000, the received a pro forma response from the KDOI the policy. At some point, it appears that every regulatory approach resulted in many and large when they were actually looking for some help closed plan will collapse. By mitigating rate rate increases resulting in a lot of complaints. in terms of long range planning within the KDOI increases, you are encouraging people to stay in From 2000 to 2014, there was rate stabilization in handling issues like this. The only response the plan and pay premiums. It is not likely that because regulators required insurers to make they received was that no laws were broken. insurance companies want a huge rate increase more conservative assumptions on the front end. While they knew to expect rate increases, they where everyone drops out except a few. Deputy The current model, promulgated by the National had no forewarning of the size of the increase. Commissioner O’Connor said Representative Association of Insurance Commissioners Through an open records request, they found Gooch’s comments highlight the heart of the (NAIC) and adopted by a few states, is a variation their insurance company was given the option of issue. The KDOI is in an extremely difficult of the previous approach of being more diligent spreading the increase over two years, however, position. They must consider the financial on the front end. the company chose one. When they asked the solvency of LTC insurance companies against Mr. Dillon said there is a lot of variation KDOI why this was, they were told there was no the interests of longtime policyholders to find among state approaches to LTC rate increase historical record. Mr. Enstice said they feel no a landing spot where companies can remain in requests, mainly due to recoupment of past more fairly treated in the marketplace today than business and policyholders can continue to have losses and delays in seeking the increase. Mr. they did two years ago. Through their research, the most affordable policy possible considering Dillon discussed the approaches used in other they found many states would not allow such a the situation. Mr. Dillon said when reviewing a states and said that Kentucky tries to keep in line significant rate increase at one time. They asked rate increase request, if a company has an open with other states. Mr. Dillon said rate increases several times to speak to the Commissioner and and a closed block, they consider those premium and rate stabilization regulation is helping to were told she was not available. The Enstices rates for the on-the-street rates and compare to mitigate the problem. He also reviewed data on suggested Kentucky pass increase caps or spread the closed block rates. The struggle is there are closed rate filings since 2010 in Kentucky and rate increases over several years if there was a many closed blocks for companies who no longer several other states. pressing need based on actuarial assumptions. sell policies. That is where we get into landing Senator Schickel introduced constituents There is an insurance compact in Kentucky. spots and actuarially equivalent alternatives Marie and Wayne Enstice to share their They can be arbiters for requests that exceed such that the consumer may choose a $200 experiences with LTC insurance rate increases. a cap. He said policyholders in Ohio paid a benefit instead of a $300 benefit to mitigate a rate Mr. Enstice said for the past two years, he and lower rate increase for the exact same policy. increase. his wife have sought answers as to why their LTC The whole rate structure and process needs to Anthem Reimbursement Reduction for insurance payment increased so drastically. Mr. be more transparent. The Enstices said they are Providers of Services to Children with Autism Enstice said he e-mailed a set of solutions he vulnerable. If they receive another sizeable rate Bart Baldwin, Executive Director of ABA and his wife suggest to approach the problem increase, they will be in crisis mode. He asked Advocates said the General Assembly has been to committee members. The Enstices purchased that the committee and legislature pass measures very supportive of autism-related issues with policies in 2007. In 2017, their rate increased 45 to achieve a corrective balance. the passage of the 2010 health mandate relating percent in each of their premiums. While they Chairman Carpenter expressed the to autism, as well as the 2018 update sponsored were aware they would face rate increases, the committee’s appreciation to the Enstices for their by Chairman Rowland. The concern now is an magnitude was the problem. After researching testimony and sharing the consumer side of the announced Anthem change in coding used by LTC insurance rate increases, they realized issue. Senator Schickel said he has been working providers of services to children with autism. This it is a national problem. They found initial with the Enstices for two years and will continue change undermines the intent of the legislation. assumptions were wildly inaccurate. He noted to try to make some headway. Dr. Becky Nastally, Owner and Executive the KDOI’s motto of making sure Kentuckians Responding to Senator Thomas’ question, Director of Bloom Behavior Therapy said are treated fairly in the marketplace. The Enstices Deputy Commissioner O’Connor said LTC there is a grave access to treatment problem were given two months to decide whether insurance policies do not exclude specific for children with autism in Kentucky and to pay the increased rate or let their policies conditions, including Alzheimer’s and dementia. worldwide. Dr. Nastally said she is a doctorate lapse. They filed a complaint. Mr. Enstice said The policy pays based on a lack of ability to level board certified applied behavior analysis they were diligent and did much research perform daily activities, regardless of the reason. (ABA) therapist providing ABA therapy. ABA

THE KENTUCKY GENERAL ASSEMBLY 73 therapy is the most evidence-based treatment for one being targeted. Representative Gooch said Charles Miller, Ruth Ann Palumbo, Josie autism. It is approved by the Surgeon General, he would like clarification because he had been Raymond, Brandon Reed, Steve Sheldon, Maria the American Medical Association, and the told something somewhat different. Sorolis, Cherlynn Stevenson, Ashley Tackett American Association of Pediatrics. It is best Senator Girdler asked if anyone had met Laferty, Nancy Tate, Rob Wiederstein, and Les when delivered at the onset of diagnosis. Autism with Anthem. Mr. Baldwin answered yes. Senator Yates. can be identified as early as 18 months of age. It Girdler said he understood there are different Guests: Monica Bilak, Board of Directors is best when it is delivered intensively. There is a codes for ABA therapy. He suggested they try to Chair, Sprocket Inc.; Dr. Michael Ramage, Vice shortage of providers in the state. Only recently resolve the issue with an Anthem representative Chair, Sprocket Inc.; Hank Phillips, President has licensure existed in Kentucky. Dr. Nastally since the proposed change would go into effect and CEO, Kentucky Travel Industry Association; said therapists are constantly fighting a battle November 1. Mr. Baldwin said there are different Paul Buta, Special Agent, United States Secret for funding. The insurance mandate requires codes for licensed behavior analyst and a behavior Service. insurance companies to provide medically technician who implements the treatment LRC Staff: Andrew Manno, Chip Smith, necessary treatment for children with autism. plan as designed by the analyst. Dr. Nastally Candice Messer, and Sasche Allen. There are loopholes in the mandate with huge explained that a Board Certified Behavior Approval of Minutes out-of-pocket costs that families still have to incur Analyst, someone with a master’s degree or PhD, A motion to approve the minutes of the because of deductibles, copays, and reaching out- would at times also use that code in question to September 12, 2019 meeting was made by of-pocket maximums. Service providers have provide direct therapy. She said Anthem does Representative Bobby McCool, seconded by experienced rate cuts, including the 25 percent not use modifiers, as some companies do, which Representative Deanna Frazier, and approved by reimbursement reduction by Anthem. Without ties the code to the provider type. Mr. Baldwin voice vote. the necessary treatment, symptoms of autism said they met with Anthem representatives in Sprocket Inc. increase. Dr. Nastally asked the committee to August and they plan to develop a workgroup to Sprocket is a non-profit 501(c)(3) help prevent insurance companies from further work on value-based contracting and some other organization based in Paducah, Kentucky that restricting access to treatment for children with approaches, but currently there is an immediate develops innovative programs in education, autism, who represent one of the most vulnerable issue. He understood that the committee is entrepreneurship, and community learning to populations within society. limited in what it can do. create talent pipelines mainly in the growing Anne Gregory, advocate and parent of a child Chairman Carpenter said currently there sector of technology. The original focus was with autism, said during the 2010 Legislative is little the committee can do but he hoped the educational aspect in elementary through Session, she was the lead parent volunteer and representatives attending the meeting could high school students but evolved over time to Kentucky liaison for Autism Speaks in its push work with them on this issue. a possible solution to a workforce shortage in for autism insurance reform across the country. There being no further business the meeting the technology field. Sprocket began offering Her son was 10 years old at the time. Ms. Gregory adjourned at 4:55 PM. cyber camps and entrepreneurial experiences discussed the significant impact ABA therapy to children to expand their knowledge of and other services have on the future of children INTERIM JOINT COMMITTEE ON technology and running a business in the real with autism. ABA therapy is crucial to long- TOURISM, SMALL BUSINESS, AND world. Eventually adults took an interest in term prognosis. She never thought she would be INFORMATION TECHNOLOGY Sprocket which led to the organization crating back before the legislature but she cannot allow Minutes of the 5th Meeting partnerships with companies and individuals insurance companies to undermine the benefits of the 2019 Interim in the technology field to assist innovative of all their hard work and create hardships for October 3, 2019 entrepreneurs with new business ventures that families across the state. Ms. Gregory explained Call to Order and Roll Call could lead to potential job creation. the learning progression of her son in an ABA The 5th meeting of the Interim Joint Sprocket has partnered with a company therapy program. Anthem’s 25 percent rate Committee on Tourism, Small Business, and called Codefi that will provide funds and cut would be devastating to providers of ABA Information Technology was held on Thursday, training to technology entrepreneurs to start therapy and would revert more financial burden October 3, 2019, at 3:00 PM, in Room 154 of the their businesses partially through a grant onto family members of those with autism. Capitol Annex. Senator Danny Carroll, Chair, from Codefi and the Economic Development Anthem’s actions would be devastating, even called the meeting to order, and the secretary Administration. Sprocket is working to construct more so if other insurers follow suit. called the roll. an 8000 square foot co-work space and a 1500 Responding to Representative Gooch’s Present were: square foot makerspace. Also being developed is question, Dr. Nastally said the 25 percent Members: Senator Danny Carroll, Co- a 20 week programming boot camp, a regional reduction is an across the board cut. Every ABA Chair; Representatives Phillip Pratt, Co-Chair, youth coding league, and a First $50,000 Startup provider that utilizes that particular code which and Tommy Turner, Co-Chair; Senators Ernie Competition. Sprocket will be working along is used for the primary area of practice will have Harris, Jimmy Higdon, Wil Schroder, Mike with local resources such as the library system their reimbursement rate cut by 25 percent. Wilson, and Max Wise; Representatives Lynn and school system and envisions this footprint Mr. Baldwin said ABA therapy has a variety of Bechler, Terri Branham Clark, George Brown working in other smaller communities across the Current Procedural Terminology (CPT) codes. Jr, Jeffery Donohue, Deanna Frazier, Chris state. The one CPT code primarily used in billing is the Fugate, Robert Goforth, Jim Gooch Jr., David In response to Representative Bobby Hale, Richard Heath, Kim King, Bobby McCool,

74 2019 Interim LEGISLATIVE RECORD McCool, Dr. Ramage said that finding technology Representative George Brown Jr. thanked He said that cyber security may not be taught teachers is always a difficult task at any level. He Mr. Phillips for his work and voiced that he in school but may be a way to educate the also said that Sprocket would like to include believes the state has untapped tourism potential public. Word of mouth is a simple way to certifications within their courses they plan to that should be taken advantage of. spread awareness along with investing money in offer to youth participants to provide a clear Replying to Representative Robert Goforth, security resources. There is more than likely not pathway when they transition into postsecondary Mr. Phillips explained that independent auditors a legislative solution but the Secret Service does education. appointed by local officials perform annual do educational outreach about business email Kentucky Travel Industry Association financial audits of local tourism commissions. compromises and ransomware. Mr. Hank Phillips, President and CEO of Conversely, these are not programming audits Responding to Representative Steve the Kentucky Travel Industry Association, said it and what qualifies as a tourism expense can be Sheldon, Mr. Buta said that there are online is often forgotten that the tourism industry is a subjective. Tourism commissions are special resources that list malicious IP addresses and major economic driver in the Commonwealth. purpose government entities, therefore, their the location of origin can often be an indicator The tourism industry bought 71.6 million budgets and audits are public information. of potential criminal activity. Businesses can visitors to the state in 2018 and had an economic Representative David Hale spoke briefly protect themselves through redundant backups. impact of $11.2 billion. The industry also about the tourism in his district that contains a Addressing concerns from Co-Chair provides over 94,500 jobs and $787 million portion of Red River Gorge. Phillip Pratt, Mr. Buta explained that regular in local and state taxes. Three main categories Cyber Security assessments of a business’s cyber security can of the tourism industry are service providers, The United States Secret Service is help to protect information and avoid business experience providers, and destination marketing responsible for protecting financial infrastructure, email compromises and ransomware. There are organizations. Service providers are businesses and recently business email compromises companies that will evaluate businesses’ systems that supply the basic needs of travelers such as and ransomware have become a larger area of and suggest ways to improve security. hotels, restaurants, and retail stores. Experience concern. Business email compromise is a type of In response to Representative Lynn Bechler, providers are those businesses and locations scam that targets companies or individuals that Mr. Buta said that a series of events usually that are delivering the attractions such as the conduct wire transfers and work with entities contributes to business email compromises and state’s distilleries, museums, historical sites, or individuals in countries outside of the U.S. ransomware crimes. Generally, the easiest target and recreational sites. Destination marketing Ransomware is a type of malware designed of these crimes are individuals, but there are organizations are the promotors of the tourism to deny access to a computer or data until a times that someone working for the financial industry such as the Kentucky Department of ransom is paid. Mr. Paul Buta, a Special Agent institution may have made a mistake that leads Tourism, the local tourism commissions, and with the U.S. Secret Service, said one of the most to these crimes. He said that you can eliminate local convention and visitors bureaus. important tools that is used to combat business most threats by using a virtual private network The Department of Tourism receives its email compromise and ransomware is the (VPN) and two factor authentication. administrative funding from the General Fund financial fraud kill chain. The financial fraud kill Co-Chair Danny Carroll announced that and receives funding for marketing from the chain is a series of events that must transpire very the next meeting of the Interim Joint Committee one percent statewide transient room tax. The quickly in order for companies and individuals to on Tourism, Small Business, and Information local tourism commissions across the state have the best chance of recovering any lost funds Technology will be November 21, 2019 at 3:00 in receive funding from the local transient room and consists of cooperation between victims, the Capitol Annex. taxes, restaurant taxes in some smaller cities, and law enforcement, and the victim’s financial There being no further business, the meeting limited matching funds from the Department of institutions. The best chance of regaining any adjourned at 4:51 p.m. Tourism. The tourism industry faces challenges lost funds is within the first 72 hours with the such as workforce shortages, a backlog of needed chances decreasing about 15 percent every 12 repairs at some of the state parks, limited internet hours. There are three conditions that effectuate INTERIM JOINT COMMITTEE ON access in some areas, and, specific to the western the financial fraud kill chain. The wire must be STATE GOVERNMENT part of the state, the Asian Carp crisis. However, sent from a foreign financial institution; the wire Minutes of the 4th Meeting there have recently been funds appropriated for must be more than $50,000; and the notification of the 2019 Interim the needed updates to some of the state parks, of the wire transfer to law enforcement must be October 3, 2019 and there have also been new ways formulated made within the first 72 hours. Mr. Buta said his Call to Order and Roll Call to handle the Asian Carp crisis. Furthermore, agency offers education to financial institutions, The fourth meeting of the Interim Joint tourism faces intense competition from other chambers of commerce, various civic groups, Committee on State Government was held on states and competition for industry legitimacy. and businesses to increase awareness of these Thursday, October 3, 2019, at 10:00 AM, in There are unrealized economic activity, jobs, and crimes. Room 154 of the Capitol Annex. Senator Wil tax revenue for Kentuckians due to insufficient Answering a question from Senator Wil Schroder, Chair, called the meeting to order, and traveler awareness of Kentucky tourism products. Schroder, Mr. Buta said that public service the secretary called the roll. In addition, concerning possible tax reform, a announcements and education are ways to Present were: reduction or redirection of existing funds will prevent these crimes from happening. One Members: Senator Wil Schroder, Co-Chair; jeopardize existing benefits of the industry. method to adopt is to trust but verify sources. Representatives Jerry T. Miller, Co-Chair, and Kevin D. Bratcher, Co-Chair; Senators Ralph THE KENTUCKY GENERAL ASSEMBLY 75 Alvarado, Denise Harper Angel, Christian spending account (FSA) maximum contribution trend for both medical and pharmacy was 9.9 McDaniel, Morgan McGarvey, Robby Mills, is increased to $2,700. Members eligible for a percent, compared to a projected trend of 8.5 Albert Robinson, Dan “Malano” Seum, waiver general purpose Health Reimbursement percent. Pharmacy claims are driving the upward and Damon Thayer; Representatives Tina Arrangement (HRA) can receive $175/month trend. KEHP’s average employee and employer Bojanowski, Tom Burch, McKenzie Cantrell, ($2,100/year). The Cabinet continues to monitor premium increase since 2015 has averaged one Jeffery Donohue, Jim DuPlessis, Joseph M. usage of the waiver/HRA benefit and has made percent. Data from the Centers for Medicare and Fischer, Kelly Flood, Derrick Graham, Joe a concerted effort to educate members about Medicaid Services, Office of the Actuary, National Graviss, Richard Heath, Scott Lewis, Mary Lou that benefit. KEHP must hold HRA funds in Health Statistics Group, indicates that nationally Marzian, Reginald Meeks, Patti Minter, Jason reserve. To be fiscally responsible, the cap on the employer contribution annual growth rate Nemes, Jason Petrie, Rick Rand, Steve Sheldon, the carryover balance from 2019 to 2020 was for both state and local government and private Tommy Turner, Ken Upchurch, and Les Yates. lowered to $6,000. The carryover from 2020 to employer-sponsored health insurance is far Guests: Thomas Stephens, and Jenny 2021 will be lowered once again—to $5,000. greater than KEHP’s spending increases per Goins, Personnel Cabinet; Colleen Huber, Aon StayWell is the new well-being vendor for enrollee. Pharmacy rebates to KEHP in 2013 Consulting; Laura Hendrix, Emily Dennis, and 2020, replacing Go365. Members will continue totaled about $38 million but grew to $130 Judge Anthony Wilhoit, Kentucky Legislative to earn rewards for engaging in health and million for plan year 2018. KEHP receives 100 Ethics Commission. wellness activities. There will be no changes percent of pharmacy rebates, which might not be LRC Staff: Alisha Miller, Daniel Carter, to the LivingWell Promise. Planholders must the case in smaller employer-sponsored groups. Michael Callan, Kevin Devlin, Jennifer Hans, complete a health assessment or biometric In 2018, the net amount paid by the plan for Roberta Kiser, Karen Powell, and Peggy screening between January 1 and July 1, 2020, pharmacy claims was $308 million. Sciantarelli to receive the $480 annual premium discount Representative Miller asked which types Approval of Minutes incentive in 2021. Secretary Stephens said that of quasi-governmental groups are members of The minutes of the September 12 meeting StayWell is committed to help members improve the health plan and whether they are non-P1 were approved without objection, upon motion their health through physical fitness and by agencies. Ms. Goins said the quasi agencies by Senator Thayer. better educating members in emotional, social, include local, city, and county governments, fire 2020 Kentucky Employees’ Health Plan and financial areas. departments, public libraries, and others. They Guest speakers were Thomas Stephens, Ms. Goins said that in 2019 KEHP began must also be participants in one of the state’s Personnel Cabinet Secretary; Jenny Goins, offering optional dental and vision benefits retirement systems. Secretary Stephens said that Commissioner, Department of Employee through Anthem. The new program has been they could be referred to as non-P1, although Insurance, Personnel Cabinet; and Colleen Huber, a huge success, with 28,449 enrolled in the KEHP no longer uses that language because P1s a credentialed actuary with Aon Consulting. dental plan and 27,897 enrolled in the vision are no longer issued. They reviewed the Kentucky Employees’ Health plan. School boards represent KEHP’s largest Representative Nemes said that KEHP Plan (KEHP) for plan year 2020. population; 680 of the 690 Kentucky schools that is a stunningly successful program and is a Secretary Stephens said that KEHP covers KEHP services have participants in the dental tremendous benefit for state employees. It is more than six percent of the state’s population. plan, and 678 have participants in the vision his desire for Kentucky’s public employees to The membership includes school boards (52%), plan. Through the Department of Employee understand how good their health plan is when early retirees (24%), state agencies (19%), and Insurance, Commonwealth of Kentucky public compared to those in the private market. That quasi-governmental groups (5%). The plan has employees are also provided $20,000 of basic life information would not only increase morale but been self-insured since 2006. It is the largest insurance coverage at no cost, with an option also improve recruitment of state employees. self-funded plan in the Commonwealth, with to purchase additional coverage on themselves, Secretary Stephens said the Cabinet works to an annual spend of $1.9 billion. KEHP members their spouses, and children. Secretary Stephens spread the message about the program’s benefits include 180,040 active employees and pre-65 pointed out that the optional vision and dental through its wellness program, webinars, and retirees, and the plan covers 292,703 lives. benefits are offered by KEHP at no cost to the presentations to different groups around the Ms. Goins said the Personnel website state. state. He and other human resources executives provides a benefits analyzer tool, and the online Ms. Goins discussed the factors that serve on a national board that considers best Benefits Selection Guide includes helpful tools determine each plan year’s benefits, premiums, practices. He said it would be helpful if KEHP for choosing a plan. Premium increases are low and deductibles. She said each plan year stands had the opportunity to maintain reserve funds for 2020. The highest premium increase is less alone. KEHP looks at cost and claims trends, to carry over from one plan year to the next. than $20—in the LivingWell PPO family plan. industry benchmarks, other states’ health Representative Nemes requested that the There are small deductible and maximum out- insurance plans, and works with the vendors in Personnel Cabinet provide him with information of-pocket increases of $250. On the consumer an effort to provide good benefits and affordable showing the amount of health insurance savings driven health plans (CDHP) the maximum premiums. Health and wellbeing support is also for state employees in various salary ranges out-of-pocket and deductible are combined, critical for plan members. when compared to health insurance in the but they accumulate separately on the PPO Ms. Huber discussed claims trends, private market. Ms. Goins said that they will plans. The PPO pharmacy maximum out-of- premium benchmarks, and pharmacy payments work with Ms. Huber and her team to develop pocket will not increase. The healthcare flexible and rebates. As of June 2019, the total claims that information.

76 2019 Interim LEGISLATIVE RECORD Responding to questions from Senator concerted effort in the past few years to educate enrolled in the program. The Value Benefits Seum, Ms. Goins explained health insurance people about the value of the health insurance Program now includes not only diabetes, but options that are available to retirees through plan and its free and low-cost benefits. The also COPD and asthma. This benefit provides KEHP, the retirement systems, and Medicare. state, as employer, pays 84 percent of employees’ reduced co-pays and co-insurance for most She said that the life insurance benefit can be premium cost on average—somewhat more than maintenance prescriptions or supplies, with no carried forward after retirement, but the retiree that for a single plan and a little less than 84 deductible. would pay the full cost, and the premium would percent for a family plan. Representative Petrie asked whether KEHP be much higher. Secretary Stephens said the health insurance is aware of any lawsuits relating to its incentive Representative Graham said he believes plan is an amazing benefit. The unemployment plans. He said that in July 2019 a class-action that employees understand that their health rate in the central Kentucky area is at an historical lawsuit alleged that Yale University’s employee insurance is very good and also very reasonably low, and the Cabinet has begun to rebrand state wellness program uses financial incentives that priced. He asked what happens to HRA funds employee recruitment. There is an emphasis on violate the Americans with Disabilities Act and that exceed the carryover cap. Ms. Goins said coming for a job, staying for a career, and making the Genetic Information Nondiscrimination Act. that the employee would lose that money, and a difference for a lifetime. The health plan is a Ms. Goins said that KEHP continually monitors it would go into the health insurance trust fund. major highlight in recruitment efforts. relevant regulations and legal actions, with The Cabinet regularly communicates to members Ms. Goins said that the small deductible help from legal counsel, Aon, and the wellness the importance of using HRA funds. KEHP also increase in the new plan year will save KEHP vendor. The requirement to complete the health reaches out to individual planholders that have $30 million, and the small premium increase assessment or biometric screening provides high HRA balances that are in danger of lapsing. will save $8 million. KEHP will save $6 million the plan with aggregate data on the number of Senator McDaniel questioned whether the by cancelling Anthem’s Enhanced Personal people at risk and helps with plan design. She net pharmacy costs reflect increased utilization Healthcare Model, which was difficult to believes the health plan is doing the right thing or spiking in drug prices. Ms. Huber said that implement for a statewide plan that has more by not judging whether a member is healthy or more members are using high-cost prescriptions than 290,000 members. Reducing the waiver unhealthy but, instead, trying to make members and specialty drugs. That is why the rebates HRA cap to $5,000 will save $2 million. A market aware of their health status. Representative Petrie are so important—they help reduce the overall test by Aon to compare pharmacy pricing will requested that KEHP’s counsel contact him to cost impact. Senator McDaniel asked whether save $24 million in the 2020 plan year. discuss this in more detail. planholders and medical providers are encouraged Ms. Goins said KEHP began offering the Representative Sheldon spoke of his own to initially try lower-priced prescriptions. He free Rethink benefit in January 2019. It offers experience with a self-insured company that also asked about insulin pricing. Ms. Huber online and telephone assistance to support has 15,000 employees. He stated that self- said that KEHP always promotes usage of lower those who care for children and teenagers with insured plans provide greater flexibility, and he cost prescriptions before switching to more learning or behavioral challenges, including believes KEHP’s structure lends itself to more expensive or specialty drugs. Ms. Goins said autism. The Live Health Online-Medical benefit advantageous negotiation methods. the diabetes value benefit helps address the cost has had more than 31,000 visits and has realized Senator Alvarado applauded KEHP’s of insulin, diabetes medications, and supplies. cost savings of $6.6 million. Live Health Online- management of its pharmacy benefit program Senator McDaniel questioned whether KEHP Behavioral Health is a free benefit that uses and the savings of $24 million. Ms. Goins is absorbing a substantial increase in the cost the Cabinet’s Employee Assistance Program said that since becoming self-insured, it has of insulin. Some of the practices he has seen in (EAP) as a resource. This online benefit has had proven beneficial for the health plan to have other states’ indicate that they are only covering 5,691 visits, with more than 60 percent of the separate contracts for medical and pharmacy the cost rather than taking steps to control it. Ms. patients seeing a therapist and 10 percent seeing benefit management. Ms. Huber said the Goins said she would need to research the impact a psychiatrist. A cost savings analysis for this current arrangement with CVS Caremark is a of insulin cost on the health plan. She went on to benefit is not yet available. EAP Director Trina transparent contract. The price of prescriptions say that one cost factor is that members are using Koontz has indicated that Live Health Online- at point of sale to the member is the same amount their diabetes medications as directed. Senator Behavioral is helpful to those who need more charged to the plan. Secretary Stephens stated McDaniel said he wants to make sure that the services than her team is able to provide. that an audit by Aon earlier in 2019 to ensure drug companies are not taking advantage of the SmartShopper is a benefit that helps KEHP transparency found 100 percent compliance Commonwealth. He hopes that drug pricing and its members save money by choosing lower- statewide. Senator Alvarado suggested that an will be examined more in depth and become the cost providers for medical procedures. This approach similar to KEHP’s may be applicable to topic of more conversation in the future. benefit has realized total claims savings of $11.8 Kentucky’s Medicaid program. Representative Upchurch asked whether million. Members have received incentives of Responding to questions from Senator the Cabinet could place a dollar value on the $2 million, and the average claims savings per Alvarado Ms. Goins said she believes the health insurance package, since it is a financial incentive is $551. plan pays $89 for a psychologist and $99 for a incentive that could be considered part of an Solera became administrator for the free psychiatrist when members use the free online individual’s pay. Ms. Goins said they do not Diabetes Prevention Program in September behavioral health benefit but that she would have that information with them today but can 2019. Since that time, 5,400 members have taken have to doublecheck those amounts. Regarding get it. She said the Cabinet has been making a the quiz to see if they are at risk, and 4,030 have SmartShopper, she said quality should be a

THE KENTUCKY GENERAL ASSEMBLY 77 primary focus of the healthcare industry but The plan needs to have flexibility to even out Ms. Hendrix said that the Commission feels that KEHP has received little feedback regarding costs from year to year, but this is not possible strongly that specifically defining harassment the quality of providers’ services. That benefit, when starting each plan year at zero. Senator and discrimination is key to ensuring public however, has led some providers to lower their Thayer suggested to Secretary Stephens that confidence in the workings of the legislature. rates. Senator Alvarado commended KEHP and they develop language for possible legislation Alleged violations would necessitate filing of a suggested that some of its programs could serve to address this issue and deliver it to Co-chairs formal complaint, signed and notarized under as a pilot or testing lab for implementation on a Schroder and Miller for consideration during penalty of perjury. Complaints of one employee global basis. the 2020 legislative session. against another would be handled through Responding to Representative Miller, Senator Schroder thanked the speakers for LRC’s human resources function. Anyone with Secretary Stephens explained how to find mobile their presentation. He also announced that the a complaint regarding discrimination, sexual apps relating to the health plan. Ms. Goins said next meeting of the committee would be on harassment, or harassment based on a protected that most of the KEHP vendors have an app and Thursday, November 21, at 10:00 a.m. characteristic would also have the choice of that KEHP members like to use the online “chat” Proposed Changes to the Legislative going directly to the state Senate or House, the feature offered by vendors. Branch Ethics Code Equal Employment Opportunity Commission, Senator Schroder said it is the sense of the Guest speakers from the Kentucky or the Kentucky Human Rights Commission, or General Assembly to bring more transparency to Legislative Ethics Commission (KLEC) were the courts. The Legislative Ethics Commission the cost of health care. He welcomed feedback Laura Hendrix, Executive Director; Judge feels that putting specific definitions in the law and suggestions from the committee on ways Anthony Wilhoit, Chairman of the Commission; would help create a safety valve for employees to address cost and improve transparency. He and Emily Dennis, Counsel to the Commission. and people who interact with each other in also asked whether KEHP has done anything to They presented five recommended changes to the legislative arena. It is also important to market cost comparison of medical procedures the Kentucky Code of Legislative Ethics that have a clear definition because, in the past, the for its members. Secretary Stephens said were approved by commission members in definition issue has been raised by attorneys for KEHP is preparing to launch a new program August 2019. They also submitted a draft of complainants. Having a clear definition is also for that purpose in 2020. Ms. Goins said it is sample legislation for 2020. important for use in training. a SmartShopper program that utilizes quality Ms. Hendrix said the Commission believes 2. Add a requirement for ethics training scores based on data from CMS and from the legislative ethics code works well. It is for legislative staff and change the commission’s Quantros, a leading provider of healthcare data. codified in statute and has been called one of the current issues seminar to two hours. Require that This program will enable KEHP to marry quality strongest ethics codes in the nation, due to both the seminar and the orientation course for new and cost. The initial focus will be on hip and the strength of the code and the independent legislators qualify for continuing legal education knee surgery. makeup of the commission. Portions of the credit. Senator Thayer said it is a great current proposed recommendations were 3. Authorize the commission to dismiss a accomplishment that KEHP has been able to contained in HB 60, sponsored by Representative complaint without prejudice via teleconference call, keep costs low and continue to offer a high level Kim Moser during the 2019 regular session. if the complaint or preliminary inquiry is publicly of coverage, including the addition of dental Representative Flood also worked on that bill disclosed by the complainant, or the complainant and vision insurance. He also praised the plan’s with the commission and its former executive comments publicly about the complaint. Ms. wellness initiatives. director John Schaaf. Several members of the Hendrix said that fairly often a preliminary Senator Thayer said that KEHP is the only State Government Committee also co-sponsored inquiry reveals that a complaint does not rise to state-funded plan in the nation that is required the legislation. the level of an ethics complaint, might have no by statute to start each plan year with zero Ms. Hendrix reviewed the five recommended basis, or might be political in nature. Enabling funding and no prior year carryover. He asked changes: the members to meet via teleconference instead how it might benefit KEHP for the General 1. Create a comprehensive ethics prohibition of in person would give the commission another Assembly to revisit that policy and change the against discrimination and harassment by avenue to expeditiously resolve a complaint. law to allow a carry forward balance from year legislators and legislative agents against legislative 4. Clarify that the Legislative Ethics to year. Secretary Stephens said he believes the employees, legislators, or legislative agents. Commission has authority to adjudicate a policy should be changed. Ms. Huber said Aon The recommendation would specifically define complaint filed against a legislator, even if the has surveyed all the states and that it is best “discrimination,” “workplace harassment,” and legislator leaves office after the complaint is filed, practice to have some type of solvency reserve. “sexual harassment” as actions that violate either as long as the complaint is based upon action Healthcare costs are increasing across the Kentucky or federal statutes, regulations, or case that occurred not more than a year prior to the country. When facing a higher premium year, law relating to protected classifications; and define separation from office. Clarify that the commission funds could be rolled forward to help offset the “legislative workplace complaint.” It would prohibit may adjudicate a complaint filed against a cost to members, employers, and all involved legislators, legislative agents, and the LRC director legislative agent up to a year after the agent is no stakeholders. Savings could be used to help keep from intentionally engaging in discrimination or longer a registered legislative agent. Ms. Hendrix future costs at a manageable and predictable workplace harassment against an employee of the said the commission feels it is important and level. Ms. Goins said that it would cost too much legislative branch, legislator, or legislative agent, in the public interest to clarify its jurisdiction for a plan the size of KEHP to have reinsurance. and provide that a violation is ethical misconduct. and its authority to act regarding ethics code

78 2019 Interim LEGISLATIVE RECORD violations. INTERIM JOINT COMMITTEE ON question, General Hogan explained the only 5. Clarify that any alleged violation of the VETERANS, MILITARY AFFAIRS, issue with immediate deployment to fight fires, is Code of Legislative Ethics can be adjudicated by AND PUBLIC PROTECTION certification of the water bucket which can take the commission as ethical misconduct, even if it is Minutes of the 2nd Meeting several hours. designated as a misdemeanor or a felony. of the 2019 Interim In response to Representative Thomas’ Ms. Hendrix concluded her review, and October 4, 2019 question, General Hogan explained that Senator Thayer commended the recommended Call to Order and Roll Call Kentucky is embracing new technology. Drones changes as a solid proposal. He said that The 2nd meeting of the Interim Joint are being used now and are used locally. shortening the annual training is a welcome step Committee on Veterans, Military Affairs, and Senator Higdon stated that he is aware in the right direction. The recommendation to Public Protection was held on Friday, October of and appreciates the effort to become the dismiss a specious claim via teleconference is long 4, 2019, at 1:00 PM, in Room 171 of the Capitol most military friendly state in the country. He overdue, and he looks forward to supporting that Annex. Senator Albert Robinson, Chair, called explained that there are plans for legislation in recommendation. He said he has been subjected the meeting to order, and the secretary called the the upcoming session to help Kentucky become to a specious claim that was later dismissed as roll. the most military friendly state. frivolous and that both political parties have Present were: inappropriately used the ethics commission as a Members: Senator Albert Robinson, Co- Dignified Disposition of Fetal Remains weapon. Chair; Senators Julian M. Carroll, C.B. Embry Senator Westerfield spoke about an Representative Nemes asked whether Jr., Denise Harper Angel, Ernie Harris, Jimmy abortion provider in Indiana. The abortion the commission has the right to extend its Higdon, Dennis Parrett, Brandon Smith, Whitney provider had 2,246 fetuses in his home garage. investigation into others members of the Westerfield, and Mike Wilson; Representatives Many women were upset and wondered whether legislature on the basis of information discovered Mark Hart, Matthew Koch, C. Ed Massey, Rob their unborn child was among these. He went on when investigating a complaint. Ms. Hendrix Rothenburger, Walker Thomas, Susan Westrom, to say that under Kentucky law, unborn children said that the commission can only act on a sworn Buddy Wheatley, and Les Yates. are considered medical waste. The United States complaint, but there is a provision in the law Guests: Stephen Hogan, Adjutant Supreme Court upheld an Indiana law which to allow a commission member to file a sworn General, Kentucky National Guard; Senator required fetuses of miscarriages and abortions complaint. The commission also has the ability Whitney Westerfield, Sue Swayze Liebel, State to be buried or cremated and concluded that to issue both formal and informal opinions. Police Director from Susan B. Anthony List in parents should have a choice on what happens. Representative Nemes suggested that the Washington D.C. There are hopes that because of this decision that commission should be able to investigate ethical LRC Staff: Jessica Zeh, Jonathan Philpot, it will create a pathway for other states to adopt violations by others that may be discovered Elizabeth Hardy, Jamie Scowcroft a similar law. during the course of an investigation of someone Approval of August Minutes Senator Westerfield introduced Sue Swayze else without having to wait for the filing of a sworn Senator Harris moved to approve August Liebel, who is the state director of the Susan complaint. Judge Wilhoit said that on occasion meeting minutes. Senator Embry seconded the B. Anthony list, vice president of the Indiana their investigators have filed a complaint against motion. The minutes were approved. Right to Life for 12 years, and who helped someone based on information that came to Kentucky National Guard draft legislation regarding the disposition of light while investigating another. Adjutant General, Stephen Hogan of the fetal remains. She stated that before Indiana Senator Thayer said the recommendations Kentucky National Guard was excited to report passed this law in 2016, it was important to are a solid plan overall but that not all of them that the Kentucky Army National Guard stands gain an understanding of the current laws and may win passage. He also suggested that the issue at 101 percent strength in Kentucky, while the regulations. raised by Representative Nemes could present a Kentucky Air National Guard stands at 103 Babies under the age of 20 weeks are legal problem. percent. General Hogan discussed their strategic considered as medical waste, while babies older Representative Graham questioned how lines of effort. The goal is to obtain qualified, than 20 weeks were required to have a death an inquiry would be affected if someone other confident, and physically fit soldier and airmen. certificate. Their goal with the new legislation than the complainant makes its existence public Preparing each unit in case there is a need for was to dispose of fetal remains with dignity without authorization. Ms. Hendrix said that this a domestic response and involvement with the regardless of the age. She was also able to get the could present a problem. The commission strives community are also strategic efforts they strive opinions from the Funeral Home Association and to maintain confidentiality and would look into to achieve. a person who manages a crematorium regarding any disclosure to clarify who made the disclosure The Kentucky Army National Guard has the disposal of remains. There was a concern and determine its effect. several capabilities including infantry, field that they would have issues with the families There was no further discussion. Senator artillery, aviation, engineering, military police, of aborted children like many funeral homes Schroder thanked the speakers and said the chemical, medical, sustainment, transportation, do with families who experience miscarriages. committee looks forward to working with and maintenance. There are plans for future However, it was explained that under current them in the future. Business concluded, and the construction of a new Joint Force Headquarters Indiana law, only the mother gets to determine meeting was adjourned at 11:44 a.m. building in Frankfort, Kentucky. They also hope what happens to the remains after an abortion, to modernize several armories in Kentucky. minimizing discord amongst the family. In response to Representative Rothenburger’s THE KENTUCKY GENERAL ASSEMBLY 79 Another concern they had while drafting Development, University of Kentucky. this methodology, but in the specific instance of this legislation, was that any person could LRC Staff: Jo Carole Ellis, Joshua Collins, Boone County’s school, there were timing issues look up death certificates at the county clerk’s Lauren Busch, and Maurya Allen. that prohibited the use of CMAR. office. They wanted to protect women’s privacy Approval of Minutes – September 11, 2019 Responding to a question from Chair Huff, regarding abortions and miscarriages, so they Following introduction of special guests Mr. Saylors said the CMAR method has been allowed a burial transit permit to leave the name by Chair Huff, Senator Wise made a motion to employed by his company for several decades. blank on the death certificate or be redacted in approve the minutes. The motion was seconded His company constructs between $5 million and public records. by Senator Wilson and passed by voice vote. $6 million worth of projects each year in several According to Indiana law, only one body Construction Management-At-Risk states in the southeast and roughly half use the can be cremated at a time. If this were applied Representative Massey was present to CMAR method. to fetal remains, it would take up too much time discuss his bill proposal for using Construction In response to a question from Senator and likely leave no ashes. To amend this, a wavier Management-At-Risk (CMAR) to streamline Higdon, Mr. Saylors said the design-build was put in that only applies to fetal remains, school construction projects. Present with him delivery method is used extensively throughout which allows all remains collected in a single were Jim Ruhland, Senior Associate, M.B. Kahn the southeast. In that method, the building is day to be cremated together. A clause stating that Construction, and Chuck Saylors, Vice President, designed and built simultaneously. Using either pathological and medical waste did not apply M.B. Kahn Construction who are familiar with of these methods saves time and results in a to fetal remains and was also included in the the CMAR delivery method. significant cost savings. He spoke to reducing legislation. Mr. Saylors spoke in his capacity as a a 12-year long school construction plan for In closing, she explained that to implement parent and school board member as well as a building 100 schools for $2 billion to a four-year this law, they gave facilities, such as hospitals and construction professional to the many ways plan and a savings of $1 billion through the use abortion clinics, the responsibility to enforce that school construction projects would benefit of different delivery methods. it. However, this law does not interfere with from the CMAR delivery method. The current Responding to a question from women that have miscarriages at home or have method is design-bid-build, which often results Representative McCool, Mr. Saylors said using an abortion via a pill. They are responsible for in many change orders and can result in higher CMAR would actually expand opportunity for what happens to those remains. costs. There is a Construction Agency method school districts. He also stated that this would The meeting adjourned at 1:54 PM. where a construction agency partners with a only be one tool available to schools as it would school to oversee things on the ground, but this not prohibit them from using currently existing INTERIM JOINT COMMITTEE ON method may still result in higher costs through design-bid-build or design-build methods. EDUCATION frequent change orders. During the CMAR Responding to a question from Minutes of the 5th Meeting process, there is a guaranteed maximum cost Representative Marzian, Mr. Saylors said he had of the 2019 Interim set by the owner. Any overages are covered by not seen any negative impact from prevailing October 2, 2019 the construction manager, but any savings are wage laws, and in his experience they were still Call to Order and Roll Call returned to the owner and can be used for other able to get sufficient qualified workers for their The 5th meeting of the Interim Joint needs. In the case of a school, those savings could projects. Committee on Education was held on be used for improved school safety measures. Mr. Arts in Education Wednesday, October 2, 2019, at 1:05 p.m., in Saylors said in his experience, CMAR lowers the Jane Dewey, Director of Arts Education, Room 149 of the Capitol Annex. Representative financial risk of the contracting body, provides Danville Public Schools was present with Dr. Regina Huff, Chair, called the meeting to order, more control during the procurement process, John Stroube, Executive Director, Kentucky and the secretary called the roll. and can reduce change orders. Music Educators Association and Tanya Bromley, Present were: Another positive aspect to using the CMAR Kentucky Music Educators Association. Ms. Members: Senator Max Wise, Co-Chair; method is there are limitations on contractors Dewey said the proposed Art Education Equity Representative Regina Huff, Co-Chair; Senators performing work themselves, which typically Act can be viewed as a fulfillment of the promise Jimmy Higdon, Reginald Thomas, Stephen results in the hiring of local agents to perform of the Kentucky Education Reform Act (KERA). West, and Mike Wilson; Representatives Tina the work. This supports local construction Students benefit from the arts in various ways Bojanowski, R. Travis Brenda, Randy Bridges, companies and economies. There is an assurance including building artistic literacy, building John Bam Carney, Jeffery Donohue, Scott that the construction contract is written to independence, developing creative thinking Lewis, Mary Lou Marzian, C. Ed Massey, Bobby industry standards and that the contractor has skills, and supporting college and career McCool, Reginald Meeks, Charles Miller, Attica necessary experience. The use of this method readiness. Arts celebrate multiple perspectives, Scott, John Sims Jr, Russell Webber, and Lisa would be another tool for schools to use to make help children say what cannot be said, and raise Willner. the best use of their funds and to get the best social and emotional learning. She quoted from Guests: James Bauman, District Facilities final project. Representative Massey spoke to a study where 72 percent of business leaders Branch Project Manager, Kentucky Department his experience trying to use the CMAR method surveyed said creativity was something they of Education; John Gilbert, District Facilities for a new school in his district through the use looked for in employees, and more than 90 Branch Project Manager, Kentucky Department of a waiver from the Kentucky Department of percent of superintendents surveyed said various of Education; and George Hruby, Executive Education (KDE). KDE is receptive to using visual and performing arts courses help develop Director, Collaborative Center for Literacy

80 2019 Interim LEGISLATIVE RECORD that creativity. said this bill would remedy that by creating In response to questions from Senator The crux of the Art Education Equity Act is to accountability through protected time for all West, Ms. Dewey said with the changes in ensure equity of opportunity so that all students, students to receive arts education. All students accountability there has been some data collected regardless of their academic or socioeconomic would have equal access and opportunity during in the school report card regarding facilities and status, have equal access to a quality, standards- the school day through protected time of 120 the number of minutes of arts education. But as based, sequenced visual and performing arts minutes per week in elementary for the study of right now, there is no way to pull out specific education as mandated in the capacities and of the arts and increased access to art courses and comparable data. She has been able to goals set forth by the Commonwealth. Evidence in middle school. Additionally, the bill would determine, however, that there are many school shows that students who are most economically prohibit arts instructional time from being districts providing no arts education time and disadvantaged and most in need of academic used for other remediation or from access they are not aware it is a requirement to provide remediation are also those who are least able being denied as a form of punishment. The bill time in arts education. Mr. Stroube said they to access arts education. There are robust gains would also direct KDE to develop arts program spoke with a representative of the Kentucky among all students when there are strong arts standards and resources for helping schools School Boards Association, and there has not education programs available in schools. The bill improve their arts programs, identify strong arts been any large push back from superintendents would also include a simple to use checklist to programs as models, and develop an easy-to-use at this time. Senator West advised that they evaluate arts education in schools and provide a standards checklist for reporting program data take the time to speak with superintendents way for benchmark arts education programs to to the school profile. A critical piece would also and ensure that everyone is on the same page be made available to all schools. With access to be to include that data in the school report card. regarding accountability. Ms. Bromley said these tools, even geographically remote schools A yearly report on the status of arts education Representative Hart has indicated that there will would have tools available to them to make small to the Interim Joint Committee on Education is be some changes to the prefiled version of the changes and see gains in as little as three to five also recommended. bill to address many of the comments they have months. Libby Hale, a student at Danville High gotten during the interim. Ms. Bromley next discussed the 1989 School, testified about her experience of attending Responding to questions from Senator Rose decision which declared that there is a speech and drama courses in order to address a Thomas, Ms. Hale said mandated time for fundamental right to arts education for every speech impediment in middle school. Within middle school was initially a portion of the bill student provided by the Kentucky constitution. weeks her speech impairment was gone, and she but that was eliminated at the recommendation In KERA, the General Assembly incorporated found a passion for drama and performance. of KDE. She said it made sense because many seven capacities outlined by the Rose decision, She has since gone on to participate in the middle schoolers have already made a decision including sufficient grounding in the arts to Governor’s School for the Arts resulting in a about whether arts education was of interest to enable each student to appreciate his or her scholarship offer beyond her wildest dreams. She them. When pressed, she said maybe 60 minutes cultural heritage. That foundation further advocated strongly for the protection of access to of dedicated time would be beneficial to all established the state’s responsibility to ensure arts education for all students. students in middle school. access for all students to an arts education. The Responding to a question from Dataseam – Education and Workforce assessment and accountability system was also Representative Bojanowski, Ms. Dewey said the Development Efforts explicitly noted as necessary to measure progress 120 minutes in elementary education could be Brian Gupton, CEO, Dataseam, Parker towards achieving these goals. incorporated into general education courses such Smith, CIO, Williamsburg Independent As an arts educator, Ms. Dewey said she is as using drama in English courses or using dance Schools, Samuel “Blake” McCullah, Dataseam proud of how Kentucky has approached visual in physical education courses. Ms. Bromley said IT apprentice, Whitley County Schools, and and performing arts assessments in schools. they would encourage addressing the standards Elizabeth “Paige” Hart, Dataseam Scholar But understanding the problems of program for both subjects instead of just having a student – Caldwell County, University of Louisville reviews, the Art Education Equity Act proposes draw a picture and calling that arts education. Medical School were present to speak about a non-punitive checklist to better evaluate arts In response to questions from Chair Huff, the implementation of the Dataseam program. education in schools. Ms. Bromley said a result Mr. Stroube said that the primary goal was equity It was initially designed in 2005 as a way for of Senate Bill 1 of the 2017 Regular Session across the schools throughout Kentucky. Some the University of Louisville to carry out cancer was to provide a better way to evaluate arts schools will find it easy to report 120 minutes of research while simultaneously providing schools education. It mandated visual and performing arts education, while others will need to make with computers for students. With the Dataseam arts standards, and provided that KDE would adjustments because they are not protecting that grid, local school districts are creating many distribute guidelines for visual and performing educational requirement at this time. enrichment opportunities around the high end arts education. KDE would also have the ability Responding to questions from Apple computers they have received through to develop program standards. However, in 2019 Representative Willner, Mr. Stroube said they the program. Also, allocating funds to Dataseam arts education was not included in the new state had spoken with Commissioner Lewis and from the general fund rather than coal severance assessment program aside from protecting a Representative Hart in the development of the funds opened up the opportunity for schools single hour of arts instruction in high school as bill who advised them on portions specifically in outside of coal producing counties to take part of graduation requirements. relation to middle school. It was his impression advantage of a partnership with Dataseam. In order to keep things simple, Ms. Bromley that Commissioner Lewis was in favor of the bill. Past testimony to the General Assembly by

THE KENTUCKY GENERAL ASSEMBLY 81 Dataseam has been about the cancer research to do graphic design there. She described the looked forward to a bright future with continued they have helped facilitate; however, the focus experience of growing up in a very rural part growth. of today’s presentation was on the workforce of Kentucky and how this shaped her as much In response to questions from Chair Huff, development advantages that Dataseam as working on the computers in the lab. As a Mr. Gupton said word of mouth has helped has brought to schools. Scholarships and Dataseam scholar, she received a scholarship spread the knowledge about Dataseam to local investments have been used to create covering her tuition to the University of schools outside of the original coal counties. opportunities outside the original scope of Louisville to pursue a career in a STEM field, As technicians and superintendents who have Dataseam and use funds not appropriated by medicine. It had always been her dream to attend participated with the program have moved to the General Assembly. Mr. Gupton said his medical school, but it was a gift to be able to other districts, they have approached Dataseam focus would be on increasing certification for accomplish that without worrying about the high to bring more schools into the project. He also IT professionals in relation to maintaining the cost of tuition. Dataseam values postsecondary said he views the Dataseam scholarships as Dataseam grid in schools, investments made education and helps students stay in-state to workforce development funds and wants to keep by the University of Louisville and Morehead better their home communities. Ms. Hart looks these individuals in the state whenever possible State University to the Dataseam Scholars forward to the full-circle moment when, as a and will discuss with the university partners program, and the newest initiative to encourage medical doctor, she can make use of cancer the potential of adding that stipulation to the and prepare students for careers in information drugs developed using the computing power of scholarship. technology. Dataseam, which harnesses the very same Mac Responding to Representative Willner, Mr. The investments made by Dataseam and computers from her high school that continue to Gupton said he hopes to have some Jefferson their partners have driven Kentucky forward inspire other students to pursue a STEM career. County success stories very soon. Workstations and increased opportunities for students. Mr. Gupton next spoke about the paid have been placed in computer science and As an authorized training center for Apple Dataseam apprenticeship program, which trains aerospace magnet schools right now to create technologies, they have been able to grow in- students for careers in information technology. a pipeline of space science students to MSU. house technicians among students who are Mr. McCullah spoke about his apprenticeship There will also be opportunities for urban- able to take those skills out of the schools into with Dataseam where he first experienced getting rural exchange through the Challenger school the workforce upon graduation. They also a paying job. This was also an opportunity for a exchange program between Shawnee High have encouraged professional development for career, not just a summer job. He learned about School and Hazard County. adults wishing to work in the IT field, creating computer and system maintenance. He also has In response to a question from Representative highly skilled individuals to fill local school learned more than just information technology Miller, Mr. Gupton said he was referring to CIO positions. Mr. Smith testified that he had skills, but also other workforce skills from his middle schools as feeder schools, but he hopes an interest in technology as a student, but there peers and mentors in the Whitley County IT to continue to provide awareness to students were limited opportunities for him to pursue Department. Dataseam education is important outside of the magnet schools to encourage their that interest even in college. It was not until his and helps students achieve. He looks forward to participation in information technology. When school became a partner with Dataseam that graduating and pursuing a career in radiology students see this as an opportunity to them in he was able to achieve his dream of being an IT where he can apply some of the many skills he Kentucky, they will run to it. The five schools professional. He spoke of the comradery he has has gained through the apprenticeship program. were selected by JCPS as those that would benefit developed with others through the Dataseam Mr. Gupton also recognized Connor Wilson most from the technology based on the STEM project and those that he has connected with and Morgan McKiddy from Whitley County as focus of Dataseam. since. Because of his certifications, he was able other Dataseam apprentices who worked over Representative Lewis said the Dataseam to apply for and receive the CIO position at the summer to make sure the computers at their project has been one of the best programs Williamsburg. He looks forward to using his schools were ready for their teachers and peers currently being used in his schools. Seeing new position to bring more technology into his when school started in August. children interact and make use of the Apple school and help students get the introduction to Morehead State University (MSU) is one computers in his rural school was so meaningful. technology that he did not have as a student. Mr. of five universities offering a degree in space Additionally, there is untold benefit from the Gupton next introduced the many members of systems engineering and is a strong supporter cancer research that the computers perform at the Dataseam team who were with him in the of the Dataseam program and its workforce night. audience as the largest concentration of Apple development initiatives. Recently, MSU With no further business to come before systems engineers in the United States. They are sponsored a Dataseam day, which welcomed the committee, the meeting adjourned at 2:38 an asset to the Dataseam program, their schools students and parents from across the state to visit p.m. The next meeting of the committee will be and communities, and Kentucky’s continually their Space Science Center. During that event, November 20, 2019, at 1 p.m. in Annex Room growing next generation workforce. Dataseam participants, all of whom came from 149. Mr. Gupton then spoke about the Dataseam outside of MSU’s service area, were exposed scholars program, which provides scholarships to technology that is unique in the world and to students in STEM fields. Ms. Hart said she inspired those present to pursue careers in vividly remembered working in the Mac lab at space science. Mr. Gupton thanked the General her school in Princeton, Kentucky, and learning Assembly for their support of this endeavor and

82 2019 Interim LEGISLATIVE RECORD TOBACCO SETTLEMENT County funds for CAIP. The board recommended implement workshops for energy and agriculture AGREEMENT FUND OVERSIGHT approval, which would bring the program total due to limited producer impact and lack of COMMITTEE to $350,313. matching funds. Minutes of the 6th Meeting Carroll County Conservation District Verti Grow Farms was denied $2,000,000 of the 2019 Interim requested an additional $7,200 in Carroll County in state funds to construct an agritourism and September 4, 2019 funds for CAIP. The board recommended organic farm due to limited producer impact. Call to Order and Roll Call approval, which would bring the program total Early Childhood Development The 6th meeting of the Tobacco Settlement to $145,281. Linda Hampton stated the Governor’s Office Agreement Fund Oversight Committee was held Ohio County Cattlemen’s Association of Early Childhood (GOEC) received $29,071,100 on Wednesday, September 4, 2019, at 10:00 AM, requested an additional $81,751 in Ohio County in tobacco settlement funds for Fiscal Year 2019. in Room 129 of the Capitol Annex. Senator C.B. funds for CAIP. The board recommended The majority of the funds are used for the Child Embry Jr., Chair, called the meeting to order, and approval, which would bring the program total Care Program and Health Access Nurturing the secretary called the roll. to $98,651. Development Services (HANDS). Present were: Whitley County Cattlemen’s Association The Early Childhood Advisory Council Members: Senator C.B. Embry Jr., Co- requested an additional $33,600 in Whitley now has a strategic plan. The mission is to Chair; Representative Myron Dossett, Co-Chair; County funds for CAIP. The board recommended provide leadership and direction for Kentucky Senator Robin L. Webb; Representatives Kim approval, which would bring the program total by providing a comprehensive and sustainable King, Rick Rand, Brandon Reed, and Dean to $37,100. prenatal-to-age-five early childhood system that Schamore. Bullitt County Conservation District will ensure a strong foundation for all children. Guests: Warren Beeler, Executive Director, requested an additional $50,172 in Bullitt County Community Early Childhood Councils Governor’s Office of Agricultural Policyfunds for CAIP. The board recommended mobilize local community members to build (GOAP); Bill McCloskey, Deputy Executive approval, which would bring the program total innovative, collaborative partnerships to help Director, GOAP; Linda Hampton, Executive to $135,172. Kentucky improve kindergarten readiness. A Director, Governor’s Office of Early Childhood; The projects discussed included: total of $1,069,345 was awarded to 72 councils Sarah Vanover, Director, Division of Childcare, PHARM Roadside Market was approved for during the 2019-2020 grant cycle. Department for Community Based Services, up to $9,000 in state funds and $9,000 in Trimble The Early Childhood Institute was held Cabinet for Health and Family Services (CHFS); County funds for the repair of a walk-in cooler, in June of 2019 and the theme was “Believe in Paula Goff, Branch Manager, Early Childhood a new ice cream maker, and renovations to the Me Kentucky.” There were 167 professional Development, Department for Public Health, market structure. development sessions with approximately 1,000 CHFS; Brenda Bruner, Executive Director, Hancock County Cattlemen’s Association participants. Southside Christian Daycare; and Brigitte Blom was approved for up to $5,000 in Hancock County GOEC created the School Readiness Summit Ramsey, Executive Director, Prichard Committee funds for the Youth Agriculture Production to engage superintendents and the community for Academic Excellence. Cost-Share Program. by providing an opportunity for collaboration LRC Staff: Nathan Smith, Tanya Monsanto, Nicholas County Cooperative Extension and action planning. There are currently 30 Kelly Ludwig, and Rachel Hartley. was approved for up to $3,000 to build the teams, and each team will be awarded a grant of Governor’s Office of Agricultural Policy Nicholas County Livestock Pavilion to serve as up to $45,000. Report a ham house. Sarah Vanover stated the Division of Warren Beeler stated the United States City of Marion Tourism Commission was Child Care (DCC) has a budget allotment Geological Survey is monitoring nitrate levels approved for up to $11,350 in state funds and of $10,448,648 for Fiscal Year 2019, and the in the Ohio River to determine their origin. $3,000 in Crittenden County funds to pave the majority of the funds go directly to providers GOAP is taking a proactive approach with the parking lot at the farmers market structure. through quality incentives with Kentucky All project because agriculture is often blamed for Rockcastle County Industrial Development Stars. The tobacco settlement funds are used as water contamination. Mr. Beeler also provided Authority was approved for up to $170,000 in matching funds to receive the federal Child Care an update on the success of the Shared-Use state funds and $5,000 in Rockcastle County and Development Fund block grant. Equipment Program in Pulaski County. funds to construct a farmers market building In response to a question from Senator Bill McCloskey described the Agricultural and covered pavilion. Embry, Ms. Vanover stated there are 2,067 child Development Board’s projects for August Kipley J. McNally was denied $5,500 in state care centers in Kentucky that serve children who under the program. Mr. McCloskey highlighted funds to implement water management practices receive subsidy payments. programs including the County Agricultural on his farm due to other grant funding options Brenda Bruner stated Southside Christian Investment Program (CAIP), Deceased Farm available. Daycare has 16 centers in Kentucky and all Animal Removal, and Youth Agriculture Lifeforce Organics was denied $11,638 in children should have access to high-quality Incentives Program. state funds to conduct a feasibility study due to childcare regardless of household income. All of The requested program amendmentslimited producer impact. the centers participate in Kentucky All Stars. discussed included: National Energy Education Development Paula Goff stated Early Childhood Mental Harrison County Beef Cattle Association Project was denied $150,625 in state funds to Health (ECMH) receives $1,000,000 annually requested an additional $17,834 in Harrison THE KENTUCKY GENERAL ASSEMBLY 83 from the tobacco settlement funds, and the Group estimates a steep decline in the tobacco funding, and considerations for review. funds are part of the match for the Maternal settlement funds as smoking decreases. The The complete report, “Shared-Time and Child Title V Block Grant. The services PCAE is encouraging legislative members to find Technology Centers – A Study of Six State include consultations, trainings, evaluations, and ways to maintain the level of funding for early Funding Systems” and the power point therapeutic services for children from birth to childhood development regardless of the source. presentation may be accessed at https://apps. five years old. ECMH served over 4,000 children There being no further business, the meeting legislature.ky.gov/CommitteeDocuments/329/ and provided training to over 1,000 education was adjourned. by selecting the following options: Committees/ staff in Head Start centers, childcare centers, and Special Committees/ KCTE/Meeting Materials. state-funded preschools. There were also over KENTUCKY CAREER AND By 2020, Dr. Pruitt said SREB has determined 200 foster parents that participated in social- TECHNICAL EDUCATION TASK the dependent portion of the population, emotional development training. FORCE defined as children through traditional college- Child Care Health Consultation receives Minutes of the 4th Meeting age young adults and people who qualify for $1,000,000 annually from the tobacco settlement of the 2019 Interim Social Security and Medicare, is expected to funds. The funds support ten regional health September 11, 2019 nearly equal the working-age population, those consultants and two trainers to provide technical Call to Order and Roll Call between the ages of 25 and 64. In 2017, the assistance and training on health, safety, and The 4th meeting of the Kentucky Career dependent population represented 48 percent social-emotional development to licensed and and Technical Education Task Force was held on of SREB’s regional population and predictions certified childcare providers. Wednesday, September 11, 2019, at 10:00 a.m. in indicate that by 2030, for every 51 dependent Health Access Nurturing Development Room 129 of the Capitol Annex. Representative people, only 47 working-age adults will provide Services (HANDS) is a statewide home visitation Bobby McCool, Co-Chair, called the meeting to for or contribute to economic viability. program. In Fiscal Year 2019 HANDS served order, and the secretary called the roll. With automation changing the workplace, it over 5,000 families. The program is designed to Present were: is important to consider the needs of the future assist overburdened parents during the prenatal Members: Representative Bobby McCool, workforce and develop learning experiences period until the child’s third birthday. Medicaid Co-Chair; Senators David P. Givens, Jimmy that will prepare young people with anticipated is now covering multigravida services and state Higdon, and Johnny Ray Turner; Representative competencies. Five percent of Kentucky’s jobs funds are used as a match. Kevin D. Bratcher; and Steven Thomas. are completely automatable and 44 percent of Importance of Early Childhood LRC Staff: Jo Carole Ellis, Yvette Perry, all work activities have automation potential. Investments – Birth to 3rd Grade Lauren Busch, Seth Dawson, Chuck Truesdell, The top five potential industries are food Brigitte Blom Ramsey stated the Prichard and Christal White. preparation and serving, sales, office and Committee for Academic Excellence (PCAE) Approval of Minutes – August 21, 2019 administration, production, and transportation. was established in 1983 as an independent and On a motion by Representative Bratcher SREB determined that without action from state nonprofit organization. It produces solutions- and a second by Senator Turner, the minutes of and business leaders some 1.9 million workers in oriented policy research and recommendations the August 21, 2019, meeting were adopted. Kentucky could be affected by automation in the that are supported and informed by engagement Shared-Time Technology Centers: A coming decades. with the citizens of Kentucky. Study of Six State Funding Systems Dr. Pruitt said high-quality CTE programs Investment in early childhood Stephen Pruitt, Ph.D., President, Southern must be relevant to specific areas, require effective development is important because 85 percent Regional Education Board (SREB), introduced training in project-based learning and rigorous of brain development occurs before age five and staff members Debra Lamothe, Schoolcoursework, and actively involve employers achievement gaps begin to appear at 18 months. Improvement Leadership Coach, and Lee Posey, in the training and education of youth. The The workforce is impacted as 12.6 percent of Vice President for State Services. Dr. Pruitt Kentucky Department of Education (KDE), the Kentucky families report job insecurity due to presented the “Shared-Time Technology Centers Workforce Innovation Boards, and an incredible lack of child care. The lack of child care costs – A Study of Six State Funding Systems” report. data system provide a great opportunity for employers over $3 billion annually. SREB provided an overview of Career and partnership. PCAE conducted a poll in 2019 that found Technical Education (CTE) funding mechanisms Critical aspects of a high-quality CTE 76 percent of Kentuckians needed child care from states that either border Kentucky or include access and equity in securing and services or reported it to be somewhat or very operate several shared-time technology centers. leveraging resources to close CTE opportunity difficult to find, and 74 percent of Kentucky With Kentucky being the only state to develop gaps, working with regional stakeholders voters strongly or somewhat support increasing state-centered CTE programs through Area to expand geographic access to CTE, and state funding for quality child care and preschool. Technology Centers (ATCs), Dr. Pruitt said dismantling barriers that prevent learners from In 2008, PCAE began tracking the progress finding a comparable state was challenging. The entering CTE programs. Common barriers may Kentucky has made using 20 indicators of report offers a brief discussion of the importance include geography and availability, funding success in education. In 2008, Kentucky ranked of CTE and a review of each state’s CTE programs and resources, at-home factors, academic 24th in the country for preschool enrollment and - fast facts, labor market snapshots, CTE facts, preparation, awareness and advising, cultural is currently ranked 41st. Perkins eligible agency and annual funding, awareness, and physical and learning disabilities. The current Consensus Forecastingeach state’s funding method, additional notes on CTE funding methods fall into one of three

84 2019 Interim LEGISLATIVE RECORD categories. 1) The “Foundation Funding Only” value programs receiving $680; moderate value junior and senior students and are not available approach is used in local CTE programs financed programs receiving $400; and less than moderate within high schools buildings. High admission out of general state aid formulas that provide no value programs receiving $200 per credit hour. requirements include good attendance, good earmark for CTEs; 2) “Funding for Shared-Time Other CTE course funding level reimbursements grades, and no disciplinary issues. Dr. Pruitt Technology Centers” provides dedicated funds per pupil are $300 for introductory programs and said the disciplinary requirement could create to support programming at high schools or $150 for apprenticeship programs, cooperative a barrier in Kentucky since many students community technical colleges and is supported education courses, foundational, work-based with behavioral issues could benefit the most through specific earmarking through a funding learning, and area participation programs. The from CTE. He also said there is a concern with formula; and 3) “Categorical Funding” is funding complexity of this method is described in detail the transfer of credits in Oklahoma due to the dedicated for CTE programs distributed to local in the link to the report on page 2. difficulty of having dual enrollment at a career education agencies or institutions of higher Ohio’s total categorical state funding for center and a community college. education to support career-related instructional CTE is $290,782,399. All 612 school districts are South Carolina’s total categorical state services and may include student-based, cost- connected to one of 93 CTE planning districts, funding for CTE is $20 million. Funds are based, and/or unit-based formulas. using three models: city districts, compacted allocated in support of CTE programs for the cost The states reviewed in the report, Arkansas, districts, and Joint Vocational School Districts of equipment, supplies, industry certifications, Indiana, Ohio, Oklahoma, South Carolina, (JVSD). Each model is based on a regional work-based learning activities, and continuous and West Virginia, use a combination of these approach within each district. The majority of school improvement strategies. South Carolina approaches to fund CTE programs. city districts are found in larger cities; compact has 79 school districts and 27 career centers Arkansas provides a total categorical districts are formed of several districts uniting serving a single district and operated by local state funding for CTE of $20,136,383 with 28 to offer CTE at one of the high schools; and boards of education. The district receives federal local education agencies and 21 locations on JVDS districts, a consortium of 36 districts Perkins funding as well as state CTE funding, postsecondary campuses. Funding flows from supporting four career centers, allow students and the funds are shared with the career the state to the centers through vocational center to elect to attend one-half or one full school day. centers. South Carolina’s Office of CTE provides aid and training fees. Vocational center aid is The JVSD acts as a local education agency with local educational agencies with guidance and based on enrollment during the previous school a superintendent, business office, and appointed assistance through administrative provisions for year. In Arkansas, each school district annually boards including industry and community success and compliance. Twelve multi-district distributes a fixed-rate of $3250 for full-time members. Each model has the ability to levy career centers serve students from more than one equivalent (FTE) students attending a secondary additional taxes to support CTE. Tuition per- area. Multi-district career centers receive federal career center. Allocations are capped at 60 percent pupil allocation rates differ among the chosen funding through consortium agreements with if more than 60 percent of students come from pathways, ranging from $1,308 to $5,192, with feeder districts and state CTE funding. Federal a single high school and funds are distributed the most demanding occupations or the greatest funding is allocated based on a formula defined based on actual enrollments per semester. The cost of supporting the program being at the top by legislation; state funding is allocated based on Arkansas Office for Skills Development (AOSD) of the scale. A breakdown of each category is enrollment in CTE programs; and local school reimburses the districts for funds distributed to provided in the full report. districts and multi-district career centers are secondary career centers for the previous school The total categorical state funding for required to submit a local application and adhere year, amounting roughly to $10 to $11 million Oklahoma’s CTE is $20 million and includes a to state and federal laws and regulations. South annually. School districts benefit from receiving statewide network of 29 technology center districts Carolina has more ability to shape what goes on quarterly payments; however, legislative audit and 58 campuses. A constitutional amendment in CTE through approvals but are not involved issues arise due to accounts not being reconciled established “area vocational-technical schools.” in the day-to-day operations of the schools. until the end of the school year. The AOSD Oklahoma Technology Centers act as their own The total categorical state funding for CTE disburses $9 to $10 million to districts to alleviate school districts, are created and administered in West Virginia is $18 million with 22 shared- waiting on funds from the state. by a local board elected by area voters, and state time county technical centers and 7 multi- funding depends on the millage levies approved county shared-time technical centers. Secondary In Indiana, the CTE total categorical state by district voters. Oklahoma’s technology centers CTE funds are distributed in four categories: 1) funding is $130 million. Additional pupil funding are adapting schedules and pursuing additional secondary block grants; 2) travel; 3) equipment for CTE is distributed through a weighted formula avenues to provide students the opportunity replacement; and 4) multi-county grant funding. based on credit hours and student enrollment in and flexibility to attend. In the evenings, the The CTEs are governed by administrative state-approved CTE programs. The regionally centers provide education for 10,000 adults. On councils made up of superintendents, a county- managed programs have a differential weighted a statewide average, technology centers receive board member from each participating county, formula based on labor market data. Programs about two-thirds of their funding at the local and a representative from the Associate preparing students for careers in industries that level and the remaining is a mixture of state State Superintendent of Schools. Funds are require a more than moderate number of future and federal funds. A separate system within the intended to offset the additional costs of employees and pay high wages receiving the Oklahoma Department of Education is specific providing CTE services, defined by the state largest weight. Advanced CTE course funding to CTE, similar to what Kentucky had before the as extended employment for instructional and levels are categorized by value, with high- merger. In Oklahoma, CTEs are available only to administrative staff, supplies, instructional

THE KENTUCKY GENERAL ASSEMBLY 85 materials, equipment, and placement services. regions as part of a consortium will determine Guests: Rosemary Holbrook, Personnel To be eligible for block funds, providers must if Kentucky partnerships and priorities are being Cabinet; Todd Renner, Department of Revenue; assign oversight of technical programs and those fully maximized. KDE Associate Commissioner Ryan Barrow, Office of Financial Management; offering more than five CTE programs must David Horseman said Kentucky has several Anthony Grey, Larry Hadley, Board of Pharmacy, appoint a certified program administrator. academies with inter-local district agreements in Marc Manley, Board of Cosmetology; David SREB provided the following considerations place. Trimble, Board of Embalmers and Funeral for Kentucky moving forward: 1) determine the Responding to Representative Bratcher’s Directors; Ron Brooks, Brent McCarty, Steven characteristics and competencies the workforce request for final words of wisdom, Dr. Pruitt Phillips, Paul Wikes, Karen Waldrop, Department of 2035 should possess; 2) select a governance suggested a systemic approach to education of Fish and Wildlife Resources; Jason Glass, Clint model that drives Kentucky’s funding approach and workforce automation. He said taking a Quarles, Department of Agriculture; Sean Alteri, and not allow the funding model to determine very deliberate look across the board to ensure Amanda LeFevre, Department of Environmental the state’s governance structure; 3) establish alignment of federal funding mechanisms with Protection; Amy Barker, Brandon Lynch, goals for CTE program completers; 4) identify a unified vision to balance the workforce needs Department of Corrections; William Codell, criteria for high-quality CTE programs; and 5) for today and the future is crucial. He said the Lori Bradbury-Robinson; Tamara Hart, Elise address access and equity when determining the Workforce Innovation Boards, local Chambers Marti, Department of Juvenile Justice; Todd funding model. of Commerce, and legislators have the ability Allen, Steve Lyles, Department of Education; In response to Senator Higdon’s question, to ask pertinent questions to determine future Michael Nemes, Bridget Papalia, Brooken Ms. Lamothe said reimbursements are calculated workforce expectations for unprepared and Smith, Education and Workforce Development per year, per student, per category identification. unaware students. Cabinet; Joe Donohue, Department of Mr. Pruitt said reimbursement rates differentiate Dr. Pruitt said opportunities in Kentucky Financial Institutions; Erica Brakefield, Julie depending on the number and value of the are incredible due to robust engagement among Brooks, Leanna Caven, Frank Jackson, Devon categories for which a student may qualify. the General Assembly and KDE through a rare McFadden, Department for Public Health; Responding to Representative McCool’s collection of data in Kentucky that is unseen in Stephanie Brammer-Barnes, Steven Davis, Office question, Dr. Pruitt said although state other states and the ability to identify the top five Inspector General; Jonathan Scott, Department rankings are not available, the “Fast Facts” industries per region. He suggested Kentucky for Medicaid Services; Shannon Gadd, Jessica section in the SREB report offers indicators on look where our CTE system needs to be, build Wayne, Tonia Wells, Department for Aging percentages of CTE concentrator graduation the pieces, and identify issues to achieve those and Independent Living; Erika Bauford, Laura rates; continuation to postsecondary education; goals. Dr. Pruitt said it is important to have a Begin, Kristy Kidd, Department for Community and placement in employment, military, or unified vision of workforce needs to meet the Based Services; Shawn Cox, William Dolan, Jon apprenticeship programs within six months needs as automation and technology changes Dougherty, Ankur Gopal, Betsy Johnson, Joe of completion. Dr. Pruitt said comparisons of and to provide CTE-based skills that evolve as Jurgensen, Marc Wilson, Ron Wolf. strengths and weaknesses is difficult due to each jobs and markets change. LRC Staff: Sarah Amburgey, Stacy Auterson, states’ differences. He said aspects of each of the Representative McCool announced the next Emily Caudill, Betsy Cupp, Ange Darnell, Emily six states and perhaps states not included in the meeting of the task force will be October 2, 2019. Harkenrider, Karen Howard, and Carrie Klaber. study may deserve consideration as legislation is There being no further business before the The Administrative Regulation Review written and funding mechanisms are developed. task force, the meeting adjourned at 11 a.m. Subcommittee met on Monday, September 16, Ms. Lamothe said broadening the selection of the 2019, and submits this report: study would have provided differences of various Administrative Regulations Reviewed by CTE structures and funding mechanisms. With ADMINISTRATIVE REGULATION the Subcommittee: the use of Perkins V dollars, Ms. Lamothe said REVIEW SUBCOMMITTEE PERSONNEL CABINET: Classified federal rankings are most likely available to Minutes of the September Meeting 101 KAR 2:102. Classified leave general ensure governance and funding structures meet September 16, 2019 requirements. Mary Elizabeth Bailey, indicators for students. Call to Order and Roll Call commissioner, and Rosemary Holbrook, general Senator Turner thanked Dr. Pruitt for The September meeting of the Administrative counsel, represented the cabinet. the outstanding job in Kentucky and for his Regulation Review Subcommittee was held on A motion was made and seconded to dedication through SREB. Monday, September 16, 2019, at 10:00 AM, in approve the following amendments: to amend Responding to a question by Senator Room 149 of the Capitol Annex. Representative the RELATES TO paragraph to comply with Higdon, Dr. Pruitt said Kentucky is the only state- David Hale, Chair, called the meeting to order, the drafting requirements of KRS Chapter 13A. managed CTE with a robust data system that and the secretary called the roll. Without objection, and with agreement of the provides valuable information to ensure funding Present were: agency, the amendments were approved. and governance structures will meet regional Members: Senator Stephen West, Co-Chair; Unclassified needs. The commonality among the states in Representative David Hale, Co-Chair; Senators 101 KAR 3:015. Leave requirements for the SREB study identify regional coordination Julie Raque Adams, Perry B. Clark, and Alice unclassified service. and management. Business and industry labor Forgy Kerr; Representatives Deanna Frazier, FINANCE AND ADMINISTRATION markets partnering with workforce development Mary Lou Marzian, and Tommy Turner. CABINET: Department of Revenue: Sales and

86 2019 Interim LEGISLATIVE RECORD Use Tax; Registration and Collection requirements of KRS Chapter 13A. Without Chapter 13A. Without objection, and with 103 KAR 25:131. Current month accelerated objection, and with agreement of the agency, the agreement of the agency, the amendments were payment of sales and use taxes by larger amendments were approved. approved. taxpayers. Todd Renner, executive director, Sales and Use Tax; General Exemptions 201 KAR 15:015. Per Diem compensation of Office of Tax Policy and Regulation, represented 103 KAR 30:170. Containers, wrapping, and board members. the department. packing materials. 201 KAR 15:030. Fees. A motion was made and seconded to A motion was made and seconded to In response to questions by Representative approve the following amendments: to amend approve the following amendments: to amend Marzian, Mr. Trimble stated that fee increases the RELATES TO; STATUTORY AUTHORITY; Sections 1 and 4 to comply with the drafting applied to licensees and funeral establishments. and NECESSITY, FUNCTION, AND requirements of KRS Chapter 13A. Without Fee increases ranged from twenty-five (25) CONFORMITY paragraphs and Sections 2, 5, objection, and with agreement of the agency, the dollars to fifty (50) dollars yearly, which raised and 6 to comply with the drafting requirements amendments were approved. fees to the statutory caps. of KRS Chapter 13A. Without objection, and Selective Excise Tax; Cigarettes A motion was made and seconded to approve with agreement of the agency, the amendments 103 KAR 41:220. Applications, stamp the following amendments: to amend Section were approved. orders, returns, reports, and statements to be 8 to comply with the drafting requirements of Sales and Use Tax; Service and Professional filed electronically – waiver. KRS Chapter 13A. Without objection, and with Occupations In response to a question by Co-Chair agreement of the agency the amendments were 103 KAR 26:070. Contractors. Hale, Mr. Renner stated that this administrative approved. A motion was made and seconded to regulation did not adjust the cigarette tax. This 201 KAR 15:040. Examination. approve the following amendments: to amend the administrative regulation required cigarette A motion was made and seconded to RELATES TO and NECESSITY, FUNCTION, vendors to report tax information electronically approve the following amendments: to amend AND CONFORMITY paragraphs and Sections in order to improve efficiency. the STATUTORY AUTHORITY paragraph 1 through 8 to comply with the drafting and Office of Financial Management: State and Section 1 to comply with the drafting formatting requirements of KRS Chapter 13A. Investment Commission requirements of KRS Chapter 13A. Without Without objection, and with agreement of the 200 KAR 14:201. Repeal of 200 KAR 014:200. objection, and with agreement of the agency, the agency, the amendments were approved. Ryan Barrow, executive director, represented the amendments were approved. 103 KAR 26:090. Veterinarians and pet care commission. 201 KAR 15:050. Apprenticeship and providers. BOARDS AND COMMISSIONS: Board of supervision requirements. A motion was made and seconded to Pharmacy A motion was made and seconded to approve approve the following amendments: to amend 201 KAR 2:165. Transfer of prescription the following amendments: to amend Sections 3, the TITLE; the RELATES TO and NECESSITY, information. Anthony Gray, general counsel, and 4, and 6 and material incorporated by reference FUNCTION, AND CONFORMITY paragraphs; Larry Hadley, executive director, represented the to comply with the drafting requirements of and Sections 1 through 4, 7, and 8 to comply board. KRS Chapter 13A. Without objection, and with with the drafting and formatting requirements of Board of Cosmetology agreement of the agency, the amendments were KRS Chapter 13A. Without objection, and with 201 KAR 12:030. Licensing, permits, and approved. agreement of the agency, the amendments were examinations. Marc Manley, counsel, represented 201 KAR 15:080. Complaints. approved. the board. A motion was made and seconded to Sales and Use Tax; Miscellaneous Retailer A motion was made and seconded to approve approve the following amendments: to amend Occupations the following amendments: (1) to amend the the STATUTORY AUTHORITY paragraph and 103 KAR 27:180. Vending machines. RELATES TO paragraph, Sections 9 through 11 Sections 1 and 3 to comply with the drafting A motion was made and seconded to and 20, and material incorporated by reference requirements of KRS Chapter 13A. Without approve the following amendments: to amend to comply with the drafting requirements of KRS objection, and with agreement of the agency, the the STATUTORY AUTHORITY paragraph and Chapter 13A; and (2) to amend Section 14 to amendments were approved. Sections 1, 2, and 4 through 6 to comply with authorize a designee of the board inspector and 201 KAR 15:110. Funeral establishment the drafting requirements of KRS Chapter 13A. board administrator to conduct an inspection of criteria. Without objection, and with agreement of the a school. Without objection, and with agreement A motion was made and seconded to agency, the amendments were approved. of the agency, the amendments were approved. approve the following amendments: to amend Sales and Use Tax; Miscellaneous Retail Board of Embalmers and Funeral Directors the STATUTORY AUTHORITY paragraph; Transactions 201 KAR 15:010. Definitions. David Sections 1 through 3, 5, 7, 10, and 11; and 103 KAR 28:010. Admissions. Trimble, general counsel, represented the board. material incorporated by reference to comply A motion was made and seconded to A motion was made and seconded with the drafting requirements of KRS Chapter approve the following amendments: to amend the to approve the following amendments: to 13A. Without objection, and with agreement of RELATES TO and STATUTORY AUTHORITY amend the NECESSITY, FUNCTION, AND the agency, the amendments were approved. paragraphs and Sections 1 through 4 and 6 CONFORMITY paragraph and Section 1 to 201 KAR 15:120. Requirements for to comply with the drafting and formatting comply with the drafting requirements of KRS applicants holding a license in another state.

THE KENTUCKY GENERAL ASSEMBLY 87 A motion was made and seconded to KAR 034:040, 302 KAR 034:050, and 302 KAR ENERGY AND ENVIRONMENT approve the following amendments: to amend 034:060. Jason Glass, director, and Clint Quarles, CABINET: Department for Environmental the STATUTORY AUTHORITY paragraph staff attorney, represented the department. Protection: Division of Water: Water Quality and Section 1 to comply with the drafting Grain Storage 401 KAR 5:010. Operation of wastewater requirements of KRS Chapter 13A. Without 302 KAR 35:011. Repeal of 302 KAR systems by certified operators. Sean Alteri, objection, and with agreement of the agency, the 035:020, 302 KAR 035:030, 302 KAR 035:040, deputy commissioner, and Amanda LeFevre, amendments were approved. 302 KAR 035:050, 302 KAR 035:060, and 302 director, represented the division. 201 KAR 15:125. Surface Transportation KAR 035:070. Water Quality Certification Permit. Bond and Grain Fund Distribution 401 KAR 8:030. Water treatment plant and A motion was made and seconded to 302 KAR 36:011. Repeal of 302 KAR water distribution system classification and approve the following amendments: (1) to 036:010. staffing. amend the NECESSITY, FUNCTION, AND Regulation and Inspection; Packaging and 401 KAR 8:050. Drinking water program CONFORMITY paragraph; Sections 1 through Labeling fees. 3 and 5; and material incorporated by reference 302 KAR 75:130. Packaging and labeling. Certified Operators to comply with the drafting requirements of KRS A motion was made and seconded 401 KAR 11:001. Definitions for 401 KAR Chapter 13A; and (2) to add a section to establish to approve the following amendments: to Chapter 011. a renewal process and renewal fee for a Surface amend the NECESSITY, FUNCTION, AND 401 KAR 11:030. Wastewater treatment and Transportation Permit. Without objection, and CONFORMITY paragraph and Sections 1 and collection system operators; classification and with agreement of the agency, the amendments 2 to comply with the drafting requirements of qualifications. were approved. KRS Chapter 13A. Without objection, and with A motion was made and seconded to approve TOURISM, ARTS AND HERITAGE agreement of the agency, the amendments were the following amendment: to amend Section CABINET: Department of Fish and Wildlife approved. 2 to comply with the drafting requirements of Resources: Fish Regulation and Inspection; Method of Sale KRS Chapter 13A. Without objection, and with 301 KAR 1:185. Pay lakes. Ron Brooks, 302 KAR 76:100. Method of sale. agreement of the agency, the amendment was director, Fisheries Division; Brent McCarty, A motion was made and seconded approved. branch manager, Recruitment, Retention, to approve the following amendments: to 401 KAR 11:040. Water treatment and and Reactivation Branch; Steven Phillips, amend the NECESSITY, FUNCTION, AND distribution system operators; classification and staff attorney; and Karen Waldrop, deputy CONFORMITY paragraph and Sections 1 and qualifications. commissioner, represented the department. 2 to comply with the drafting requirements of A motion was made and seconded to approve A motion was made and seconded to approve KRS Chapter 13A. Without objection, and with the following amendment: to amend Section the following amendments: (1) to amend Section agreement of the agency, the amendments were 2 to comply with the drafting requirements of 3 to comply with the drafting requirements of approved. KRS Chapter 13A. Without objection, and with KRS Chapter 13A; and (2) to make technical Regulation and Inspection; Scanner agreement of the agency, the amendment was changes to the agency contact information. 302 KAR 80:010. Examination procedure approved. Without objection, and with agreement of the for price verification. 401 KAR 11:050. Operator and training agency, the amendments were approved. A motion was made and seconded provider certification. 301 KAR 1:201. Taking of fish by traditional to approve the following amendments: to 401 KAR 11:060. Operator and training fishing methods. amend the RELATES TO and NECESSITY, provider certification fees. A motion was made and seconded to approve FUNCTION, AND CONFORMITY paragraphs JUSTICE AND PUBLIC SAFETY the following amendments: to make technical and Sections 1 through 3 to comply with the CABINET: Department of Corrections: Office of changes to the agency contact information. drafting requirements of KRS Chapter 13A. the Secretary Without objection, and with agreement of the Without objection, and with agreement of the 501 KAR 6:110. Roederer Correctional agency, the amendments were approved. agency, the amendments were approved. Complex. Amy Barker, assistant general counsel, 301 KAR 1:410. Taking of fish by Regulation and Inspection; Commercial and Brandon Lynch, program administrator, nontraditional fishing methods. Weighing and Measuring Devices represented the department. A motion was made and seconded to approve 302 KAR 81:010. Technical requirements A motion was made and seconded to the following amendments: to make technical for commercial weighing and measuring devices. approve the following amendments: to amend changes to the agency contact information. A motion was made and seconded Section 1 and Policy 16-01-01 to revise inmate Without objection, and with agreement of the to approve the following amendments: to visiting procedures, including: (1) establishing agency, the amendments were approved. amend the NECESSITY, FUNCTION, AND a two (2) hour limit for permanent inmates; (2) GENERAL GOVERNMENT: Department CONFORMITY paragraph and Sections 1 specifying that accepting additional visitors shall of Agriculture: Kentucky Grain Insurance and through 4 to comply with the drafting and not restart the time limit; (3) prohibiting visitor Grain Dealers formatting requirements of KRS Chapter 13A. movement during count times; (4) increasing 302 KAR 34:011. Repeal of 302 KAR Without objection, and with agreement of the the number of night-visit inmates from fifteen 034:010, 302 KAR 034:020, 302 KAR 034:030, 302 agency, the amendments were approved. (15) to twenty-one (21); and (5) replacing a set

88 2019 Interim LEGISLATIVE RECORD time for night visits with a posted time. Without Top Shelf Lobby, LLC and Associated Builders concerned that Kentucky law allowed, except objection, and with agreement of the agency, the and Contractors; and Ron Wolf, director of for prevailing wage or state-funded projects, an amendments were approved. external relations, AGC of Kentucky, appeared unrestricted number of unlicensed electrical Department of Juvenile Justice: Child in support of this administrative regulation. workers as long as there was at least one (1) licensed Welfare In response to a question by Co-Chair Hale, electrician. The Registered Apprenticeship 505 KAR 1:160. Department of Juvenile Mr. Nemes stated that changes applied to the Program would incentivize companies to more Justice Policy and Procedures Manual: juvenile Registered Apprenticeship Program only. This appropriately train employees. sexual offender treatment program. William did not affect licensing policy and was a superior Representative Frazier stated that she Codell, attorney; Lori Bradbury – Robinson, training program. Businesses were having fully supported the Registered Apprenticeship licensed psychologist and program administrator; difficulty finding skilled workforces, especially Program. Tamara Hart, licensed psychological associate; in the areas of electrical work, carpentry, A motion was made and seconded to and Elise Marti, staff attorney, represented the and plumbing. Kentucky apprenticeship approve the following amendments: to amend department. requirements were burdensome and hindered the STATUTORY AUTHORITY paragraph and A motion was made and seconded to developing the needed skilled workforces. The Sections 1, 2, and 6 to comply with the drafting approve the following amendments: to amend Registered Apprenticeship Program established requirements of KRS Chapter 13A. Without the STATUTORY AUTHORITY paragraph, safe and efficient training. objection, and with agreement of the agency, the Section 1, and material incorporated by reference In response to a question by Co-Chair Hale, amendments were approved. to comply with the drafting requirements of Mr. Smith stated that these changes adjusted Department of Financial Institutions: KRS Chapter 13A. Without objection, and with journeyworker to apprentice ratio requirements. Administration agreement of the agency, the amendments were The proposed baseline ratio would be one (1) 808 KAR 1:170. Licensing and registration. approved. apprentice per journeyworker and authorized a Joe Donohue, general counsel, represented the EDUCATION AND WORKFORCE second apprentice once the first had over 2,000 department. DEVELOPMENT CABINET: Board of on-the job experience hours. Only low and A motion was made and seconded to Education: Department of Education: Office of medium-risk occupations were eligible for the approve the following amendments: to amend Chief State School Officer ratio modifications. Changes did not impact the STATUTORY AUTHORITY paragraph and 701 KAR 5:090. Teacher disciplinary more stringent employer requirements or Sections 1 through 4, 8, 10, and 11 to comply hearings. Todd Allen, deputy general counsel, collective bargaining agreements that established with the drafting requirements of KRS Chapter represented the office. different ratios. 13A. Without objection, and with agreement of A motion was made and seconded to In response to a question by Co-Chair the agency, the amendments were approved. approve the following amendments: to amend Hale, Mr. Gopal stated that the Registered Check Cashing the STATUTORY AUTHORITY paragraph and Apprenticeship Program was a successful model 808 KAR 9:050. Licensee change of control. Sections 1, 2, and 5 to comply with the drafting for developing a workforce with the needed CABINET FOR HEALTH AND FAMILY requirements of KRS Chapter 13A. Without aptitude. This model allowed Interapt LLC to SERVICES: Department for Public Health: objection, and with agreement of the agency, the remain in Louisville, rather than the company Division of Public Health Protection and Safety: amendments were approved. seeking a workforce elsewhere. Public Accommodations Office of District Support Services: School In response to a question by Co-Chair 902 KAR 7:010. Hotel and motel code. Erica Administration and Finance Hale, Mr. Wilson stated that Top Shelf Lobby, Brakefield, section supervisor; Julie Brooks, 702 KAR 3:130. Internal accounting. LLC, supported the Registered Apprenticeship regulation coordinator; and Leanna Caven, A motion was made and seconded to Program because this was the exact remedy program evaluator, represented the division. approve the following amendments: to amend the needed to solve Kentucky’s workforce crisis. A motion was made and seconded STATUTORY AUTHORITY and NECESSITY, In response to a question by Co-Chair Hale, to approve the following amendments: to FUNCTION, AND CONFORMITY paragraphs Mr. Cox stated that Ion Apex Electric supported amend the NECESSITY, FUNCTION, AND and Section 1 to comply with the drafting the Registered Apprenticeship Program because CONFORMITY paragraph and Sections 2, 4 requirements of KRS Chapter 13A. Without the shortage of skilled workers in the trades was through 9, 14, 16 through 18, 20, and 22 to comply objection, and with agreement of the agency, the becoming more pronounced. This was a step with the drafting and formatting requirements of amendments were approved. forward to alleviate the shortage and provide KRS Chapter 13A. Without objection, and with Apprenticeship Standards quality career paths. agreement of the agency, the amendments were 787 KAR 3:010. Registration of In response to a question by Co-Chair Hale, approved. apprenticeship programs. Michael Nemes, Mr. Wolf stated that AGC of Kentucky supported Department for Public Health: Division of deputy secretary; Bridget Papalia, general the Registered Apprenticeship Program because Prevention and Quality Improvement: Programs counsel; and Brooken Smith, chief of staff, American economic leadership depended on a for the Underserved represented the department. Shawn Cox, skilled workforce, especially in the commercial 902 KAR 21:020. Kentucky Colon Screening director of external affairs, Ion Apex Electric; construction industry. Program. Julie Brooks, regulation coordinator, Jon Dougherty, education director, AMTECK; In response to a question by Co-Chair Devon McFadden, director, represented the Ankur Gopal, CEO, Interapt LLC; Marc Wilson, Hale, Mr. Dougherty stated that AMTECK was division.

THE KENTUCKY GENERAL ASSEMBLY 89 Division of Public Health Protection and In response to a question by Co-Chair Hale, CONFORMITY paragraph to comply with the Safety: Milk and Products Mr. Dolan stated that Kentucky Protection and drafting requirements of KRS Chapter 13A. 902 KAR 50:003. Repeal of 902 KAR 050:002. Advocacy was concerned that guardian visits Without objection, and with agreement of the Julie Brooks, regulation coordinator, and Frank were going from four (4) required visits to just agency, the amendment was approved. Jackson, program evaluator, represented the one (1). Guardians previously were required to The following administrative regulations division. procure services, while the new provisions were were deferred or removed from the September 902 KAR 50:005. Milk Advisory Committee. more of a sign off on case manager decisions. 16, 2019, subcommittee agenda: Office of Inspector General: Division of Kentucky Protection and Advocacy also had COUNCIL ON POST SECONDARY Audits and Investigations: Controlled Substances concerns regarding birth control provisions. EDUCATION: Nonpublic Colleges 902 KAR 55:120. Disposal of prescription Only one (1), rather the previous two (2) 13 KAR 1:020. Private college licensing. controlled substances. Stephanie Brammer – physicians, was required for a DNR situation. STATE BOARD OF ELECTIONS: Forms Barnes, regulation coordinator; Steve Davis, In response to a question by Co-Chair Hale, and Procedures inspector general; and Jill Lee, pharmacist Ms. Gadd stated that the change in guardian visit 31 KAR 4:120. Additional and emergency consultant, represented the division. requirements was for the purposes of adding precinct officers. Department for Medicaid Services: flexibility. Individuals under guardianship were FINANCE AND ADMINISTRATION Division of Fiscal Management: Hospital Service under a wide variety of situations. The securing CABINET: Teachers’ Retirement System: Coverage and Reimbursement of services component was for compliance with General Rules 907 KAR 10:830 & E. Acute care inpatient the nationally recognized Uniform Act. Ms. Wells 102 KAR 1:032. Bona Fide Retirement. hospital reimbursement. Jonathan Scott, stated that birth control was a medical decision BOARDS AND COMMISSIONS: Board of regulatory and legislative advisor, represented and medical decisions were made by guardians. Pharmacy the division. These were physician based for various health 201 KAR 2:095. Pharmacist interns. A motion was made and seconded to reasons. Ms. Gadd and Ms. Wells stated that the Board of Dentistry approve the following amendments: (1) to change in the number of physicians required for 201 KAR 8:540. Dental practices and amend the RELATES TO and STATUTORY a DNR was an access issue, especially in rural prescription writing. AUTHORITY paragraphs and Sections 1, 2, areas where it was difficult to timely consult two Real Estate Authority: Real Estate and 7 to comply with the drafting requirements (2) physicians. Commission of KRS Chapter 13A; (2) to amend Section 7 Co-Chair Hale encouraged the agency to 201 KAR 11:002. Repeal of 201 KAR to clarify that Worksheet B is part of the CMS continue dialogue with Mr. Dolan. 011:030, 201 KAR 011:045, 201 KAR 011:062, 2552 cost report; and (3) to amend Sections 2 A motion was made and seconded to 201 KAR 011:090, 201 KAR 011:095, 201 KAR and 7 to require, effective beginning May 10, approve the following amendments: to amend 011:100, 201 KAR 011:110, 201 KAR 011:115, 2019, pursuant to federal approval, that the the RELATES TO paragraph and Sections 3, 4, 201 KAR 011:135, 201 KAR 011:145, 201 KAR department shall make the annual IME payment and 15 to comply with the drafting requirements 011:147, 201 KAR 011:175, 201 KAR 011:180, to state university teaching hospitals and provide of KRS Chapter 13A. Without objection, and 201 KAR 011:195, 201 KAR 011:215, 201 KAR a supplemental DGME payment for the direct with agreement of the agency, the amendments 011:225, 201 KAR 011:230, 201 KAR 011:232, costs of graduate medical education incurred by were approved. 201 KAR 011:235, 201 KAR 011:240, 201 KAR eligible in-state hospitals. Without objection, and Department for Community Based Services: 011:245, 201 KAR 011:250, 201 KAR 011:300, with agreement of the agency, the amendments Division of Protection and Permanency: Child 201 KAR 011:350, 201 KAR 011:400, 201 KAR were approved. Welfare 011:410, 201 KAR 011:440, 201 KAR 011:450, Department for Aging and Independent 922 KAR 1:470. Central registry. Erika and 201 KAR 011:460. Living: Division of Guardianship Bauford, section supervisor; Laura Begin, Real Estate Commission 910 KAR 2:040. Service provisions for adult regulation coordinator; and Kristy Kidd, 201 KAR 11:011. Definitions for 201 KAR guardianship. Shannon Gadd, commissioner; adoption specialist, represented the division. Chapter 011. Jessica Wayne, assistant director; and Tonia Child Welfare 201 KAR 11:105. Advertising. Wells, director, represented the division. 922 KAR 1:560. Putative father registry and 201 KAR 11:121. Standards of professional William Dolan, attorney, Kentucky Protection operating procedures. conduct. and Advocacy, appeared in opposition to this A motion was made and seconded to 201 KAR 11:170. Education provider administrative regulation. approve the following amendments: to amend requirements. In response to a question by Representative material incorporated by reference. Without 201 KAR 11:190. Consumer and Frazier, Ms. Wells stated that DNR orders and objection, and with agreement of the agency, the administrative complaints; discipline; end-of-life decisions were person centered and amendments were approved. administrative hearings. physician directed. Family were notified and 922 KAR 1:565. Service array for a relative 201 KAR 11:210. Licensing, education, and given an opportunity to provide feedback. If or fictive kin caregiver. testing requirements. there was a conflict, guardianship procedures A motion was made and seconded 201 KAR 11:220. Errors and omissions were discussed. At least two (2) physicians were to approve the following amendment: to insurance requirements. included in the process. amend the NECESSITY, FUNCTION, AND 201 KAR 11:461. Repeal of 201 KAR

90 2019 Interim LEGISLATIVE RECORD 011:420. training regarding the circumstances they might uptick was not necessarily due to new hunters. Real Estate Appraisers encounter. Courses could be made better if there Typically, fifty (50) percent of hunters seeking 201 KAR 30:130. Education provider, were fewer of them. Representative Turner stated certification still opted to take the in-person instructor, and course. Tony Cotto, executive that the department seemed to be suggesting that course or range day. advisor, Public Protection Cabinet, and Marc a hunter could be more acclimated to firearms In response to questions by Co-Chair West, Manley, acting general counsel, represented the through an on-line experience, rather than Ms. Waldrop stated that landowners hunting on board. an in-person course or range day. In response, their own property were previously exempt from In response to a question by Co-Chair Hale, Ms. Waldrop stated that the on-line course was hunter certification requirements. This policy Mr. Manley requested that this administrative focused on firearm safety and other hunter change would require hunter certification for regulation be deferred to the October meeting of safety issues, rather than firearm handling. landowners hunting on their own land; however, the subcommittee. Without objection, and with Representative Turner stated that it seemed it would only apply to those born on or after agreement of the agency, this administrative almost superfluous to require hunter certification January 1, 2002. Mr. McCarty stated that these regulation was deferred. at all without the live-fire handling component. policy changes had significant support from TOURISM, ARTS AND HERITAGE In response to a question by Representative stakeholders. Data indicated that on-line hunter CABINET: Department of Fish and Wildlife Turner, Ms. Waldrop stated that the department certification resulted in more certified hunters Resources: Game was not making this proposal in order to procure and fewer adverse hunting-related incidents. 301 KAR 2:185. Hunter education. Ron federal matching funds, rather to remove Typically, most states experienced about a fifty Brooks, director, Fisheries Division; Brent barriers to hunter certification. Travel, time, and (50) percent decrease in attendance of the in- McCarty, branch manager, Recruitment, cost had become barriers to attaining hunter person courses or range days. Ms. Waldrop stated Retention, and Reactivation Branch; Steven certification. An in-person course or range day that in-person courses and range days would still Phillips, staff attorney; and Karen Waldrop, would still be available for those who opted to be available and would be more rigorous than in deputy commissioner, represented the attend. These courses would be more rigorous the past. department. than many current events. Representative In response to a question by Representative In response to questions by Representative Turner stated that the live-fire requirement Turner, Ms. Waldrop stated that, when she Turner, Mr. McCarty stated that twenty-two could save lives. In response, Mr. McCarty testified that federal matching funds were not (22) other states authorized hunter certification stated that, based on data that indicated that an issue, the intention of the statement was that without an in-person course or range day. The on-line courses reduced adverse hunting-related federal matching funds were not an issue in the department reached out to those states and, of incidents, the failure to remove the requirement policy-making decision. The department did those who responded, data indicated an increased could itself result in adverse hunting-related expect federal matching funds. Mr. McCarty number of certified hunters and a decrease incidents. Indiana had been implementing a stated that the decision was based on increasing in adverse hunting-related incidents. This similar policy since 2004 and had a decrease in safety, even to the point when the department administrative regulation would allow hunters adverse hunting-related incidents. The choice expected to lose money, although that was not to become certified via on-line courses. Because was between firearm training and quality firearm now the case. on-line certification would be convenient, training. Ms. Waldrop stated that it was the goal Representative Turner stated that it was previously exempt landowners hunting on their of the department to properly train hunters and important for every youth to have as much own property and born on or after January 1, increase hunting opportunities. training in hunter safety as possible, especially 2002, would be required to be certified. Live- In response to questions by Representative with the level of gun violence in America. This fire training for hunter certification would be Frazier, Mr. McCarty stated that initially the policy would undermine youth hunter safety optional, rather than mandatory. department expected to lose money as a result training. Representative Turner stated that, Representative Turner stated that he was of this policy because federal matching funds in good conscience, he could not support this opposed to this policy because, during a time were not available for donated courses. The NRA policy. Many youth did not have mentoring of debate regarding gun violence in America, had donated a free on-line course. Since that regarding firearm safety. It was troubling that the department might be taking away the one time, it was determined that federal matching an agency would be insensitive to concerns (1) chance many youth would have for live-fire funds could be used for donated courses. Ms. regarding youth safety pertaining to firearms. training pertaining to firearm safety. In response, Waldrop stated that the department expected Representative Turner made a motion, Ms. Waldrop stated that many in-person course funding levels pursuant to this policy to be seconded by Senator Raque Adams, to find this and range days provided little in-depth firearm similar to previous levels and funding was not administrative regulation deficient. In response handling. For example, firing an air rifle at a a component in the department’s decisions to a question by Co-Chair Hale, Ms. Waldrop state fair would qualify for hunter certification. regarding this policy. The department expected requested that this administrative regulation Often a youth would only handle a firearm once the policy to encourage more people to become be deferred to the October meeting of the or twice at an in-person course or range day. hunter certified. Mr. McCarty stated that the subcommittee and asked the grounds for the The department intended to establish a more other states that had implemented this policy finding of deficiency. Representative Turner rigorous in-person course or range day for those initially experienced an upsurge in certifications withdrew the motion to find this administrative hunters who so opted. Hunters could bring due to noncompliant hunters opting to become regulation deficient and stated that KRS their personal firearms in order to gain better certified due to the added convenience. The 13A.030(2)(a) authorized the subcommittee to

THE KENTUCKY GENERAL ASSEMBLY 91 make a nonbinding determination of deficiency 401 KAR 10:031. Surface water standards. 009. and, in this case, the basis was safety concerns. Division for Air Quality: Attainment and PUBLIC PROTECTION CABINET: In response to a question by Representative Maintenance of the National Ambient Air Department of Insurance: Agents, Consultants, Turner, Ms. Waldrop stated that the commission Quality Standards Solicitors, and Adjustors and sportsmen would need to know the safety 401 KAR 51:010. Attainment status 806 KAR 9:020. False or deceptive names, concerns basis for a nonbinding determination designations. titles, prohibited. of deficiency. A motion was made and seconded JUSTICE AND PUBLIC SAFETY 806 KAR 9:030. Adjuster licensing to defer consideration of this administrative CABINET: Asset Forfeiture restrictions. regulation to the October subcommittee 500 KAR 9:011. Repeal of 500 KAR 009:010, 806 KAR 9:061. Repeal of 806 KAR 009:060. meeting. Without objection, and with agreement 500 KAR 009:020, 500 KAR 009:030, and 500 806 KAR 9:070. Examinations. of the agency, this administrative regulation was KAR 009:040. 806 KAR 9:110. Agent’s rights after contract deferred. Motorcycle Safety Education Commission termination. Co-Chair Hale stated that, while not 500 KAR 15:010 & E. Motorcycle safety 806 KAR 9:190. Disclosure requirements questioning the department’s motive, the education program. for financial institutions authorized to engage in perception of this policy seemed unappealing Office of the Secretary insurance agency activities. at this time. In response to a question 501 KAR 6:060. Northpoint Training 806 KAR 9:200. Volume of insurance agent by Senator Clark, staff stated that, if this Center. exchange of business. administrative regulation was deemed deficient 501 KAR 6:140. Bell County Forestry Camp. 806 KAR 9:310. Life settlement licenses. by this subcommittee, the Governor would be TRANSPORTATION CABINET: 806 KAR 9:321. Repeal of 806 KAR 009:320. contacted in accordance with KRS 13A.330. Department of Vehicle Licensing: Driver 806 KAR 9:341. Repeal of 806 KAR 009:341. The second committee that would consider this Improvement 806 KAR 9:350. Recognition of financial administrative regulation was expected to be 601 KAR 13:090. Medical Review Board; planning certification and designation for receipt the Natural Resources and Energy Committee. basis for examination, evaluation, tests. of fees and commissions. Co-Chair West stated that public perception 601 KAR 13:100. Medical standards for CABINET FOR HEALTH AND FAMILY and timing were concerns regarding this operators of motor vehicles. SERVICES: Office of Inspector General: Division administrative regulation. Any administrative ENERGY AND ENVIRONMENT of Healthcare: Health Services and Facilities regulation should represent the intent of the CABINET: Department for Natural Resources: 902 KAR 20:036. Operation and services; General Assembly, and the intent of the General Division of Oil and Gas personal care homes. Stephanie Brammer – Assembly seemed to be, generally, toward more, 805 KAR 1:001. Definitions for 805 KAR Barnes, regulation coordinator; Kara Daniel, rather than less firearm education. Chapter 001. division director; Steven Davis, inspector general; A motion was made and seconded to approve 805 KAR 1:020. Protection of fresh water and Wendy Morris, commissioner, represented the following amendments: to make technical zones. the division. Betsy Johnson, president, and Joe changes to the agency contact information. 805 KAR 1:030. Well location and as-drilled Jurgensen, administrator, Kentucky Association Without objection, and with agreement of the location plat, preparation, form and contents. of Health Care Facilities/Kentucky Center for agency, the amendments were approved. 805 KAR 1:050. Bonds, requirements, Assisted Living, appeared in opposition to this ENERGY AND ENVIRONMENT cancellation. administrative regulation. CABINET: Department for Environmental 805 KAR 1:060. Plugging wells. In response to a question by Co-Chair Hale, Protection: Division of Water: Water Wells 805 KAR 1:080. Gas storage reservoirs; Mr. Davis stated that the Office of Inspector 401 KAR 6:001 & E. Definitions for 401 drilling, plugging in vicinity. General was the oversight agency within the KAR Chapter 006. 805 KAR 1:110. Underground injection cabinet and licensed child care and health 401 KAR 6:211. Repeal of 401 KAR 006:200. control. care facilities, including Personal Care Homes 401 KAR 6:310 & E. Water supply well 805 KAR 1:120. Operating or deepening (PCHs.) This administrative regulation was the construction practices and standards. existing wells and drilling deeper than the result of a settlement agreement made by the 401 KAR 6:320 & E. Certification of water permitted depth. cabinet for which the Office of Inspector General well drillers and water well driller assistants. 805 KAR 1:140. Directional and horizontal was the enforcement agency; however, the Office 401 KAR 6:350 & E. Monitoring well wells. of Inspector General did not directly initiate construction practices and standards. Division of Oil and Gas this overall policy. There were two (2) primary Water Quality Standards 805 KAR 1:170. Content of the operations types of PCHs, freestanding facilities that served 401 KAR 10:001. Definitions for 401 KAR and reclamation plan. clients with Severe Mental Illness (SMI), which Chapter 010. 805 KAR 1:180. Production reporting. received minimal federal funding, and assisted 401 KAR 10:026. Designation of uses of 805 KAR 1:190. Gathering lines. living-type facilities, which may charge a much surface waters. 805 KAR 1:200. General information higher amount. The cabinet was continuing 401 KAR 10:029. General provisions. associated with oil and gas permits. to develop and reorganize PCH requirements. 401 KAR 10:030. Antidegradation policy Sanctions and Penalties PCHs were not being expected to provide implementation methodology. 805 KAR 9:011. Repeal of 805 KAR Chapter occupational, physical, or speech therapies.

92 2019 Interim LEGISLATIVE RECORD PCHs were expected to provide basic assistance small group of residents to whom the settlement (47) cents per day, per client. with individuals who were transitioning out of agreement applied. KRS 13A.270 and 13A.280 In response to a question by Representative facilities. established a right for all stakeholders to have the Marzian, Mr. Jurgensen stated that the number In response to questions by Co-Chair Hale, opportunity to comment in a meaningful way of clients varied among PCHs. Forty (40) to sixty Ms. Morris stated that many initial concerns regarding proposed administrative regulations. (60) clients per PCH might be the state average. of stakeholders had been remedied by the The promulgating agency then issues a In response to questions by Co-Chair Hale, Amended After Comments version of this Statement of Consideration. The settlement Mr. Nemes stated that the cabinet was aware of administrative regulation. Required Activities of agreement, by limiting the agency’s decision- some of the challenges PCHs were facing. The Daily Living (ADLs) and Instrumental Activities making process, negated meaningful comments cabinet was working toward streamlining and of Daily Living (IADLs) would be provided by and responses pursuant to KRS 13A.270 and reorganizing requirements. The reimbursements existing provider employees and should require 13A.280. Additionally, the agency did not submit came from the General Fund. There were also minimum burden. The agency planned to record the required cost estimate required as part of inherent legal obstacles to funding. The cabinet instruction for the convenience of providers and the REGULATORY IMPACT ANALYSIS AND did not believe that changes would add significant was developing a comprehensive curriculum TIERING STATEMENT. PCHs received forty expenses to PCHs. The ADLs and IADLs were for training purposes. Reimbursement rates (40) dollars and forty-seven (47) cents per day, very simple in nature and were not expected to were always an ongoing concern. There were per client and could not afford this unfunded require additional staffing. Ms. Morris stated many stakeholders who commented during the mandate. that there was a 2012 LRC study done regarding public comment period. The agency also worked In response to a question by Co-Chair Hale, PCHs. Unfortunately, there were adverse with Protection and Advocacy to ensure that Mr. Jurgensen stated that many of Kentucky’s most outcomes for some clients within PCHs and these requirements and the training curriculum vulnerable citizens were entrusted into the care after transitioning out. PCHs sometimes closed complied with the settlement agreement. of specialized PCHs. For many of these residents because of quality of care problems as well as In response to a question by Co-Chair with SMIs, no amount of community supports funding problems. Some other states had similar West, Ms. Morris stated that this administrative would allow them to live safely independent of settlement agreement issues and problems. The regulation was narrowly tailored to comply a congregate living system. Funding for PCHs number of clients transitioning was very small with the settlement agreement, which was was grossly inadequate. PCHs received no more per facility. Comprehensive training existed an agreement to avoid litigation. The cabinet than forty (40) dollars and forty-seven (47) cents outside of this administrative regulation. entered into a settlement agreement with per day, per client, but were required to provide In response to questions by Co-Chair West, Kentucky Protection and Advocacy based on the client care, quality meals, hygiene products, Mr. Nemes said that the streamlining process Olmstead decision of 1999. In accordance with sponsored activities, assistance with physician would take approximately nine (9) months for the Olmstead decision, states were obligated to services and medication, and assistance with the development. Many of the issues of concern ensure that clients who did not wish to live in a clients’ financial management needs. The daily would remain but would be more isolated. congregate living system had ample services and reimbursement had not been increased since Rehabilitation should be a primary goal for these supports in the community. The decision did 2006. The average reimbursement was seventeen facilities. The settlement agreement needed not require the state to move people out, but to (17) dollars per day, per client. PCHs operate in a to move forward; therefore, removing the ensure that states were not relying exclusively on highly regulated environment with low margins. requirements of concern for consideration at the congregate living systems. Additional requirements would burden PCHs, 2020 Regular Session of the General Assembly In response to a question by Co-Chair which might be forced to close. The estimated was not preferable to the agency. Ms. Morris Hale, Ms. Johnson stated that Kentucky cost increase to implement these policy changes stated that these requirements were a small step Association of Health Care Facilities/Kentucky was four (4) dollars per day, per client. Most PCHs toward making PCHs more rehabilitative for Center for Assisted Living was opposed to would be required to add additional staff. Staff clients. this administrative regulation because the were not equipped for these new requirements, Representative Frazier stated that there settlement agreement with Kentucky Protection and adverse incidents might result. Stakeholders were concerns about many aspects of this and Advocacy prohibited the cabinet from were not included in the settlement agreement. administrative regulation. developing its own policy. Although the terms In response to a question by Co-Chair In response to a question by Representative of the settlement agreement negatively impacted West, Mr. Jurgensen stated that there were Marzian, Ms. Morris stated that the agency private licensed PCHs and their clients, neither approximately eighty-eight (88) PCHs, including expected to ask for increased funding for these group were included in the settlement agreement both types. It was likely if this administrative and other related programs through DCBS. Mr. process. Public policy should not be developed regulation became effective at these rates, that Nemes stated that the agency was the enforcement without all stakeholders having input, and the many PCHs would go out of business. Ms. arm of the program, not the budgeting arm. settlement agreement circumvented KRS Chapter Johnson stated that it would be preferable for the In response to a question by Co-Chair Hale, 13A because agency decisions were held captive agency to remove the requirements pertaining the agency agreed to defer consideration of this by the settlement agreement, which lacked to ADLs and IADLs. All stakeholders should be administrative regulation to the October meeting judicial review. This administrative regulation included in policy decisions surrounding the of the subcommittee. Without objection, and exacerbated the already severe underfunding settlement agreement. PCHs could not continue with agreement of the agency, this administrative of PCHs by subverting limited resources to a to operate on forty (40) dollars and forty-seven regulation was deferred.

THE KENTUCKY GENERAL ASSEMBLY 93 A motion was made and seconded The subcommittee adjourned at 12:50 Alzheimer’s patient. to approve the following amendments: to p.m. The next meeting of the subcommittee is Emilio Santellana, Client Care Manager, amend the NECESSITY, FUNCTION, AND tentatively scheduled for October 8, 2019, at 1 Home Instead Senior Care, stated that he works CONFORMITY paragraph; Sections 1 through p.m. on assessments and care plans for clients with 4 and 7; and the SMI Screening Form to comply Alzheimer’s and dementia. He stated that a with the drafting and formatting requirements of ALZHEIMER’S AND DEMENTIA struggle with Alzheimer’s and dementia clients KRS Chapter 13A. Without objection, and with WORKFORCE ASSESSMENT TASK is that behaviors, attitudes, and reactions change agreement of the agency, the amendments were FORCE every day. Clients’ behaviors change anytime approved. Minutes of the 3rd Meeting there is any type of change small or large. 902 KAR 20:370. Operations and services; of the 2019 Interim In response to comments and questions private duty nursing agencies. September 5, 2019 from Mr. Hoskinson, Ms. Pritchett stated that 902 KAR 20:430 & E. Facilities specifications, Call to Order and Roll Call there is a high turnover rate in staff working operation and services; behavioral health services The 3rd meeting of the Alzheimer’s and with Alzheimer’s clients. She has one or two organizations for mental health treatment. Dementia Workforce Assessment Task Force was staff orientations every week. All caregivers are Department for Public Health: Division of held on Thursday, September 5, 2019, at 10:00 interviewed and state that they have experience Audits and Investigations: Controlled Substances AM, in Room 131 of the Capitol Annex. Senator with clients that have Alzheimer’s or dementia. 902 KAR 55:070. Emergency medication Robby Mills, Chair, called the meeting to order, However, once the caregiver is in the home, they kits in long-term care facilities. and the secretary called the roll. call Ms. Pritchett with patient issues they cannot Department for Medicaid Services: Present were: resolve. Ms. Pritchett dedicates a day of training Payments and Services Members: Senator Robby Mills, Co-Chair; specifically for Alzheimer’s training. She also 907 KAR 3:170 & E. Telehealth service Representative Deanna Frazier, Co-Chair; plans and facilities Alzheimer’s support group coverage and reimbursements. Senators Stephen Meredith and Reginald Thomas; meetings and has the caregivers come to the Division of Policy and Operations: Representative Danny Bentley; Melissa Aguilar, meetings. She stated that the company spends Behavioral Health Bill Cooper, Steven Davis, Buddy Hoskinson, thousands of dollars on the training for the 907 KAR 15:005 & E. Definitions for 907 Mackenzie Longoria, Devon McFadden, Andrea caregivers. KAR Chapter 015. Renfrow, Mary Romelfanger, Phillip Travis, Kelly In response to comments and questions 907 KAR 15:010 & E. Coverage provisions Upchurch, and Denise Wells. from Ms. Aguilar, Ms. Pritchett stated that the and requirements regarding behavioral health Guests: Vicky Pritchett, Human Resources average wage for an Alzheimer’s or dementia services provided by individual approved Director, Home Instead Senior Care, Former caregiver is $10 to $12 an hour. Some caregivers behavioral health practitioners, behavioral Caregiver; and Emilio Santellana, Client Care have been with the company for 13 years and are health provider groups, and behavioral health Manager, Home Instead Senior Care. happy with the hourly wage. multi-specialty groups. LRC Staff: Dana L. Simmons, Lead Staff In response to comments and questions 907 KAR 15:015 & E. Reimbursement and Becky Lancaster from Ms. Longoria, Ms. Pritchett stated that provisions and requirements for behavioral Approval of Minutes approximately 50 percent of newly hired health services provided by individual approved A motion to approve the minutes of caregivers come from the healthcare field. behavioral health practitioners, behavioral the August 1, 2019 meeting was made by Many caregivers transfer from nursing homes health provider groups or behavioral health Representative Bentley, seconded by Melissa and assisted living facilities. Approximately multi-specialty groups. Aguilar, and approved by voice vote. 10 percent of newly hired caregivers start 907 KAR 15:020 & E. Coverage provisions Assessment of the Current Alzheimer’s straight from high school with most being a and requirements regarding services provided and Dementia Healthcare Workforce certified nursing assistant (CNA). Some high by behavioral health services organizations for to Identify Current or Anticipated schools offer a program for students to become mental health treatment. Workforce Shortages a CNA. Approximately 30 percent of newly 907 KAR 15:022 & E. Coverage provisions Vicky Pritchett, Human Resources Director, hired caregivers have previously been private and requirements regarding services provided Home Instead Senior Care, Former Caregiver, caregivers. She stated that there are three quizzes by behavioral health services organizations shared her experience as a caretaker for her that must be completed by newly hired staff for substance use disorder treatment and co- mother who had Alzheimer’s for eight years until along with a full discussion after the quizzes. Mr. occurring disorders. her passing. Santellana stated that occasionally two caregivers 907 KAR 15:025 & E. Reimbursement In response to questions and comments are scheduled for one client to allow a new staff provisions and requirements regarding from Representative Frazier, Ms. Pritchett stated person to shadow a current worker. The new staff behavioral health services provided by behavioral that her family sought help to care for her mother person would have hands-on experience with health services organizations. but was not able to retain staff because no one the client while being supervised. Department for Community Based Services: knew if or when her mother would become In response to comments and questions Division of Protection and Permanency: Child combative and argumentative towards the staff. from Mr. Davis, Mr. Santellana stated that Home Welfare Her mother was in a facility for a period of time Instead Senior Care is a personal services agency. 922 KAR 1:320 & E. Service appeals. but eventually was removed because the staff Ms. Pritchett stated that the workers are non- could not provide the specific care needed for an

94 2019 Interim LEGISLATIVE RECORD medical staff. The high turnover rate is among to have a workforce board with members that to map out staff positions from the lowest to the all staff and not specific to just the workers that are chosen by the Governor. In 2017 and 2018, highest positions in each industry and to list work with Alzheimer’s and dementia clients. KWIB put together the WorkReady strategic greatest areas of need. In the 2012/2013 career The most complaints come from staff that work plan. The four goals of KWIB are to increase technical education graduating classes, only with Alzheimer’s and dementia clients. While employer engagement, to increase educational 12.6 percent had careers in the health sciences interviewing for new staff, Ms. Pritchett keeps attainments and completions, to increase field. KWIB is continuing to support work-based the needs and behaviors of her clients in mind to Kentucky’s workforce participation rate, and to learning; however, there are not enough employer best match the client to a staff member. The hours align the board’s partners with resources. There clinical sites for students. There are many a staff member will work with an Alzheimer’s are 10 local workforce development areas that apprenticeship opportunities in the healthcare client varies depending on what the family of the cover specific regions of the state. There are two field. The process for KWIB is to analyze the client is requesting. tools that KWIB uses to measure progress, the demand, analyze the supply, to create career In response to questions and comments local workforce dashboard and the WorkReady pathways, and to provide work-based learning from Representative Frazier, Ms. Pritchett Communities dashboard that are housed on the experiences. KWIB is working to educate the stated that there is not a lack of applicants for Kentucky Center for Statistics’ (KYStats) website. training providers. KWIB recommends that the the caregiver positions, but some applicants do Ms. Aguilar stated that the workforce task force research best practices from other not qualify for the positions. The office staff is participation rate varies from 72.59 percent states such as Virginia, Oregon, New Hampshire, trained to work with clients and can fill vacancies in the Northern Kentucky area to 38.93 Oklahoma, and Illinois. Each of those states have if necessary. percent in the Eastern Kentucky Concentrated completed studies relating to how Alzheimer’s In response to comments and questions Employment Program (EKCEP) area. The and dementia clients affect the workforce. KWIB from Ms. Romelfanger, Ms. Pritchett stated state workforce participation rate average suggests having a roundtable discussion with that Home Instead Senior Care does have a is 61.81 percent. The national workforce employers to help document the best practices standardized, basic orientation including a participation rate average is 66.48 percent. With that are in process and the supports that need hands-on portion, for every level of caregiver that all occupations in the state, there will be about to be added to assist employees who care for is hired. The Home Instead Senior Care office in 107,488 jobs available between 2018 and 2022. Alzheimer’s and dementia clients. Ms. Aguilar Frankfort has a full-scale model bathroom used In regards to jobs in the healthcare workforce, gave a list of references that KWIB will be for training purposes only. The Alzheimer’s there will be approximately 9,458 jobs available reviewing when working on the issue. training is conducted every year. Ms. Pritchett is between 2018 and 2022 in Kentucky. The main In response to questions and comments working to provide a CNA class to the caregivers causes of high turnover rates in healthcare jobs from Ms. Longoria, Ms. Aguilar stated that within the company. The curriculum used in her are lack of experience, retirements, voluntarily the KWIB has been able to think about other trainings is standardized and comes from the leaving, competing states, and injuries that lead populations such as ex-offenders, individuals Home Instead Senior Care corporate offices. to a disability. Across all industries in Kentucky, with disabilities, and foster youth to recruit for In response to comments and questions there are approximately 175,303 open positions employment. Kentucky seems to be shifting from Ms. Renfrow, Ms. Pritchett stated that available for employment. In the state workforce the same people between jobs in the healthcare the retention issues are the same as other home system there are approximately 26,000 job workforce instead of increasing the workforce health companies and nursing homes. seekers registered. Ms. Aguilar shared a graph participation rates. Training individuals to stay In response to comments and questions that lists the number of job openings in each of with an employer and finding where employers from Mr. Cooper, Ms. Pritchett stated that the the 10 areas in the state. can pull from the other populations is the caregivers are paid by long-term care insurance, Ms. Aguilar stated that from 2012 to 2016 challenge for KWIB. She stated that Kentucky private pay, and Veteran clients. Mr. Santellana there were 15,000 licensed practical nurse (LPN) could have more scholarships, apprenticeships, stated that most of the clients with Home Instead training certifications given, 6,800 registered and incentives offered to students seeking Senior Care are private pay clients. He stated nurse (RN) associate degrees given, and 7,000 employment in the healthcare field. The that approximately 15 percent of clients pay RN bachelor degrees given. The supply of WorkReady scholarships are specific to the top with long-term care insurance. The Department healthcare workers does not equal the demand five industries in the state, healthcare being at of Veterans Affairs (VA) is another source of of workers. KWIB is working to recruit more the top. The Kentucky Educational Excellence funding for some veteran clients or the surviving individuals into the healthcare fields. She stated Scholarship (KEES) is another alternate avenue spouses of a veteran. There is another company that high paying healthcare positions require a for funding. in the Frankfort area that does homecare and higher level of training. KWIB is working on the In response to questions and comments accepts a Medicaid waiver for funding. Ms. side of the public and private employers as well from Ms. Romelfanger, Ms. Aguilar stated that Pritchett stated that there are other facilities as the education and economic development the local workforce boards and training providers that use Home Instead Senior Care services for side. The national average RN hourly wage is know about the professional associations that staffing. $29.17 and Kentucky’s average RN hourly wage is may offer scholarships for the middle class Melissa Aguilar, Director, Kentucky $26.58. KYStats provides data and allows KWIB worker. The local workforce boards have case Workforce Innovation Board (KWIB), KYWorks to analyze and evaluate the data to pose solutions management staff that work with individuals on Collaborative, stated that the Workforce for a better workforce. a daily basis. Innovation Opportunity Act requires every state Ms. Aguilar stated that KWIB had employers In response to questions and comments

THE KENTUCKY GENERAL ASSEMBLY 95 from Senator Meredith, Ms. Aguilar stated that He stated that Horizon has good relationships Co-Chair; Representative Stan Lee, Co-Chair; many children are not in a home environment with other providers that go into the home such Senators Julian M. Carroll and Phillip Wheeler; that would teach them humility. Schools and as personal service agencies. Horizon can be the Representatives Chris Fugate and Mark Hart. teachers can teach about humility and empathy first provider to recognize that other services Guests: John Horne, Jeff Harmon, Graham but it also needs to be reinforced at home. are needed for a patient. Horizon coordinates Gray, April O’Dea, Kevin Rader, Eric Pelfrey, Kelly Upchurch, President, Chief Executive care with home health providers when a skilled David Harmon, John Drake, Tom Kerr, Brad Officer, Horizon Adult Health Care, Horizon service is required. Holajter, Stacy Woodrum, Ryan Barrow, Cindy Home Care, American Health Management, In response to questions and comments Arflack, Jan Chamess, Rick Bender, Lona Brewer, Incorporated, stated that he started his first adult from Ms. Aguilar, Mr. Upchurch stated that Barry Swanson, and Chipper Griffith. day center in 1997 with the goal to provide an Horizon recruits employees at health fairs and LRC Staff: Kim Eisner, Jarrod Schmidt, and alternative for clients. Horizon Adult Health other pop-up events. Horizon employees have Kim Smith. Care serves approximately 550 patients a day. the chance to speak about the company and its A motion was made by Senator Carroll to All patients must qualify for a nursing home opportunities for employment. Horizon also approve Minutes of the August 2019, meeting of level of care. The adult day health care services places ads online for employment. Most new the committee. Senator Wheeler seconded the provide many services such as nursing services, employees come to Horizon because of the work motion, which passed without objection. occupational therapy, nutritious meals, case culture and the incentives such as the health, management, socialization, and many other vision, and dental insurance. AUGUST DEFERRED ITEM: services. The Horizon Home Care attendant In response to questions and comments UNIVERSITY OF LOUISVILLE care services are in 89 Kentucky counties and from Ms. Longoria, Mr. Upchurch stated that it University Professional Continuing serve 900 clients a day. Attendant care services costs approximately $8,000 a year for a patient Education Association, 20-013. A motion was include personal care, companionship, light to attend adult day health programs. It costs made by Senator Meredith to consider the housekeeping, transportation to the doctor, approximately $42,000 a year for patient to be contract as reviewed. Senator Carroll seconded church, grocery, beauty salon, or barber, meal in a double bed nursing home room. Adult day the motion, which passed without objection. preparation, transferring and positioning, and health programs save Kentucky approximately assistance with other daily needs. If a person can $200 million a year. WESTERN KENTUCKY UNIVERSITY remain engaged in the community, they will be In response to questions and comments Compansol, 192018. Per the University’s happier and healthier longer. from Ms. Romelfanger, Mr. Upchurch stated that request, this contract was withdrawn. The healthcare workforce is in need of RNs, there is not a record of clients that are Veterans, DEFERRED ITEM: LPNs, nurse aids, healthcare associates, and but there is a high number of Veteran clients in transportation associates. Some of the challenges the Louisville facility. WESTERN KENTUCKY UNIVERSITY to retaining the workforce are the lack of skilled In response to questions and comments Signet, 192022. A motion was made by workers, lack of mentoring, lack of training, from Ms. Renfrow, Mr. Upchurch stated that his Representative Fugate to defer the contract lack of raises in the cost of living provision, and center partners with local health departments to the October meeting of the committee. a poor organizational culture. There are some and other agencies to conduct monthly trainings Representative Hart seconded the motion, which creative ways to recruit and retain qualified team for the staff on specific topics such as patients passed. members that include flexibility of schedules, with Alzheimer’s and dementia. There are opportunities for advancement, competitive pay, good resources to assist the workforce in each A motion was made by Senator Meredith full health benefits, life insurance, a 401K with community. to consider as reviewed the Personal Service an employer match, and paid time off. Often Adjournment Contract List, with exception of those items locations in rural areas cannot offer higher wages, There being no further business, the meeting selected for further review by members of the but Horizon can work with the staff member on was adjourned at 11:43 AM. committee. Representative Fugate seconded the other incentives. motion, which passed without objection. In response to questions and comments GOVERNMENT CONTRACT A motion was made by Senator Meredith from Mr. Davis, Mr. Upchurch stated that the REVIEW COMMITTEE to consider as reviewed the Personal Service adult day health model is not a home model. To Committee Minutes Contract Amendment List, with exception September 12, 2019 qualify for care by Horizon a client must qualify of those items selected for further review by Call to Order and Roll Call for a waiver and Medicaid. Clients must be at a members of the committee. Representative The Government Contract Review nursing home level of care. There are barriers Fugate seconded the motion, which passed Committee met on Thursday, September 12, to entering the adult day health program. without objection. The average patient is a 72 year old female on 2019, at 10:00 AM, in Room 131 of the Capitol 15 or more medications a day. Horizon has Annex. Representative Stan Lee, Chair, called A motion was made by Senator Meredith personal care coordinators that can navigate the meeting to order, and the secretary called the to consider as reviewed the Memoranda of the Department for Community Based Services roll. Agreement List, with exception of those items (DCBS) system with the client. Horizon’s annual Present were: selected for further review by members of the budget has to be budget neutral with a ceiling cap. Members: Senator Stephen Meredith, committee. Representative Fugate seconded the

96 2019 Interim LEGISLATIVE RECORD motion, which passed without objection. KENTUCKY STATE UNIVERSITY 1600002564; HDR Engineering, Inc., 1600003756; Ashley-Rountree and Associates, 20-26. H.W. Lochner Consulting, Inc., 1600003757; A motion was made by Senator Meredith Cultural Resource Analysts, Inc., 1600003838; to consider as reviewed the Memoranda of MOREHEAD STATE UNIVERSITY Stantec Consulting Services, Inc., 1700000295; Agreement Amendment List, with exception Multi, 20-014; Multi, 20-015. Stantec Consulting Services, Inc., 1700000307; of those items selected for further review by PERSONNEL - OFFICE OF THE Bluegrass Valuation Group, LLC, 1700001171; members of the committee. Representative Stantec Consulting Services, Inc., 1700001597; Fugate seconded the motion, which passed SECRETARY McBrayer, PLLC, 1800001790-1. Palmer Engineering Co., 1700002663; Palmer without objection. Engineering Company, 1700002761; Gresham A motion was made by Senator Meredith TRANSPORTATION - OFFICE OF THE Smith and Partners, 1700002781; Integrated to consider as reviewed the Film Tax Incentive SECRETARY Engineering, 1700002938; Palmer Engineering List, with exception of those items selected for McBrayer, PLLC, 1900005002; Gateway Co., C-00049871; Presnell Associates, Inc. further review by members of the committee. Community & Technical College, 2000000239. d/b/a QK4, C-02061099; Palmer Engineering Company, C-05038089. Representative Fugate seconded the motion, UNIVERSITY OF KENTUCKY which passed without objection. K. Norman Berry Associates, PLLC, EASTERN KENTUCKY UNIVERSITY A201070; CMTA, Inc., A201090; EOP Architects, Central Kentucky Interpreter Referral, 20- A201100; Ross Tarrant Architects, A201110. 100. THE FOLLOWING PERSONAL SERVICE CONTRACTS WERE REVIEWED UNIVERSITY OF LOUISVILLE FACILITIES & SUPPORT SERVICES WITHOUT OBJECTION: Breakpoint Technology, 20-022. CMTA, Inc., 1400000547; Sherman Carter Barnhart, 1400001413; Stengel Hill Architecture, WESTERN KENTUCKY UNIVERSITY DEPARTMENT FOR INCOME SUPPORT Inc., 1500001000; Architectural Investment, Sublime Media Group, 192020. Our Family Direct Primary Care, PLLC, 1500002693; Kohrs Lonnemann Heil Engineers, 2000000236. PSC, 1600000312; Kohrs Lonnemann Heil Engineers, PSC, 1600000312; S&ME, Inc., DEPARTMENT OF CRIMINAL JUSTICE THE FOLLOWING PERSONAL SERVICE 1900002340; Ross Tarrant Architects, Inc., TRAINING AMENDMENTS WERE REVIEWED 1900002454. Baptist Health Medical Group, Inc., WITHOUT OBJECTION: 1900000487-1. KENTUCKY STATE POLICE BOARD OF MEDICAL LICENSURE Right Brother Aviation, LLC, 1900001868. DEPARTMENT OF HIGHWAYS Multi, 1900000777. QK4, Inc., 2000000295; Vaughn & Melton KY COMMUNITY TECHNICAL Consulting Engineers, Inc., 2000000306; H. W. DEPARTMENT FOR MEDICAID COLLEGE SYSTEM Lochner, Inc., 2000000469. SERVICES Affordable Language Services, LLC, 770. Myers and Stauffer, LC, 1800001623; DEPARTMENT OF JUVENILE JUSTICE Navigant Consulting, Inc., 1800001738. PERSONNEL - OFFICE OF THE American Correctional Association, SECRETARY 1900004929. DEPARTMENT OF CORRECTIONS Blue & Company, LLC, 1800001975; Tempo Dunn Law, PLLC, 1900004947. Holding Company, LLC, 1900002942. EASTERN KENTUCKY UNIVERSITY Hyperlink, LLC, 20-273. DEPARTMENT OF EDUCATION UNIVERSITY OF KENTUCKY Ameresco, 1900001446. Sherman Carter Barnhart, A161180; Ekhoff, FACILITIES & SUPPORT SERVICES Ochenkoski, Polk Architects, Inc., A171180; Redwing Ecological Services, Inc., DEPARTMENT OF HIGHWAYS Champlin Architecture, A191070; Grant Cooper 2000000086; Patrick D. Murphy Company, Inc., GRW Engineers, Inc., 0700004081; & Associates / Grant Cooper Healthcare, K18- 2000000174; GRW Engineers, Inc., 2000000343. S&ME, Inc., 1100000552; Palmer Engineering Company, 1100001520; Stantec Consulting 151; McMasters Keith Butler, Inc., K19-125; FINANCE - OFFICE OF THE SECRETARY Services, Inc., 1200001543; Palmer Engineering Smith Management Group, K19-168; Trimeric Sturgill, Turner, Barker & Moloney, PLLC, Company, 1200002167; Palmer Engineering Corporation, K19-173; Marshall Medical 2000000271. Company, 1300001582; Palmer Engineering Management, LLC, K19-195. KENTUCKY EMPLOYERS MUTUAL County, 1500001636; Palmer Engineering WESTERN KENTUCKY UNIVERSITY INSURANCE Company, 1500002150; American Engineers, Huron Consulting Group, 182012; Multi, MCM CPA’s and Advisors, LLP, 20-MCM- Inc., 1500002154; HDR Engineering, Inc., 182014. 001. 1500002157; Palmer Engineering Company, 1600000349; Palmer Engineering, 1600000444; KENTUCKY STATE POLICE Palmer Engineering, 1600000467; Palmer Powerphone, Inc., 2000000337. Engineering, 1600000931; Palmer Engineering,

THE KENTUCKY GENERAL ASSEMBLY 97 THE FOLLOWING MEMORANDA Area Development, 2000000196; Purchase Area THE FOLLOWING MEMORANDA OF AGREEMENTS WERE REVIEWED Development District, Inc., 2000000197; City of OF AGREEMENT AMENDMENTS WERE WITHOUT OBJECTION: Irvine, 2000000206; Ballard County Economic REVIEWED WITHOUT OBJECTION: Industrial Development Authority, 2000000287; BEHAVIORAL HEALTH, Leslie County, 2000000328; Leslie County, ADMINISTRATIVE OFFICE OF THE DEVELOPMENTAL & INTELLECTUAL 2000000329; Leslie County, 2000000330; Ohio COURTS DISABILITIES County Fiscal Court, 2000000336; Simpson New Vista of the Bluegrass, Inc., 1800001094. Education Development Center, Inc., County Fiscal Court, 2000000361; Knox County BEHAVIORAL HEALTH, 2000000088; Norton Healthcare, 2000000209; Fiscal Court, 2000000377. Fletcher Group, Inc., 2000000347; Achieving DEVELOPMENTAL & INTELLECTUAL Recovery Together, Inc., 2000000406. DEPARTMENT FOR NATURAL DISABILITIES RESOURCES Oxford House, Inc., 1800001958; Young CHFS - DEPARTMENT FOR AGING AND University of Kentucky Research People In Recovery, 1900000704; Bluegrass.Org, INDEPENDENT LIVING Foundation, 2000000018. 1900003229. Multi, 2000000214. DEPARTMENT FOR PUBLIC HEALTH CHFS - DEPARTMENT FOR AGING AND CHFS - OFFICE OF THE SECRETARY Community Health Clinic, Inc., INDEPENDENT LIVING University of Kentucky, 2000000403. 1900005016; Kentucky Department of Multi, 1900000410; Multi, 1900004391. Corrections, 2000000356. COUNCIL ON POSTSECONDARY DEPARTMENT FOR COMMUNITY EDUCATION DEPARTMENT FOR WORKFORCE BASED SERVICES Murray State University, 2000000305. INVESTMENT Eastern Kentucky University, 1900004478. Jobs for Kentucky’s Graduates, 1900004418. DEPARTMENT FOR COMMUNITY DEPARTMENT FOR FAMILY RESOURCE BASED SERVICES DEPARTMENT OF CORRECTIONS CENTERS & VOLUNTEER SERVICES Chapin Hall Center for Children, Kentucky Community and Technical Ohio Valley Educational Cooperative, 1900004803; Catholic Charities of Louisville, College System, 1900001583. 1900002225; Multi, 1900002434; Green River Inc., 1900004870. Area Development District, 1900002498; DEPARTMENT OF EDUCATION Christian Appalachian, 1900002501; Teach DEPARTMENT FOR ENVIRONMENTAL Kentucky Valley Education, 1900004265; Kentucky, Inc., 1900002504. PROTECTION Boone County Board of Education, 1900004299; Louisville & Jefferson MSD, 1900005004; Department for Public Health, 1900004690; DEPARTMENT FOR LOCAL Hopkinsville Surface & Storm Utility, Advance Education, Inc., 1900004744; Jefferson GOVERNMENT 2000000164. County Board of Education, 1900004801; Fayette Floyd County Fiscal Court, 1900002618; County Board of Education, 1900004813; The Floyd County Fiscal Court, 1900002619; Floyd DEPARTMENT FOR FAMILY RESOURCE Center for Education Leadership, 1900004896; County Fiscal Court, 1900002623; Floyd County CENTERS & VOLUNTEER SERVICES Board of Regents of the University of Wisconsin Fiscal Court, 1900002624; Floyd County Fiscal Department for Aging and Independent System, 1900004938; Warren County Board of Court, 1900002625; Floyd County Fiscal Court, Living- AmeriCorps, 2000000324. Education, 2000000020; Madison County Board 1900002626; Martin County Fiscal Court, DEPARTMENT FOR LIBRARIES & of Education, 2000000268; Paducah Independent 1900003070; Martin County Fiscal Court, ARCHIVES School District, 2000000298; Jefferson County 1900003070. Board of Education, 2000000302; Franklin Council On Postsecondary Education, DEPARTMENT FOR MEDICAID County Board of Education, 2000000355. 2000000338. SERVICES DEPARTMENT FOR LOCAL DEPARTMENT OF MILITARY AFFAIRS Department of Education, 1800001306. University of Kentucky Research GOVERNMENT DEPARTMENT FOR PUBLIC HEALTH Foundation, 1900004330; Daviess County City of Jamestown, 1900003989; City of Kentucky Community and Technical Fiscal Court, 1900004871; City of Maysville, Sebree, 1900004882; Daviess County Fiscal College System, 1800001924. Court, 1900004944; McLean County Fiscal Court, 2000000007. 2000000082; Industrial Authority of Mayfield- DEPARTMENT OF AGRICULTURE KENTUCKY FISH AND WILDLIFE Graves County, 2000000167; Inter-Modal Multi, 1900003210; Multi, 1900003211. RESOURCES Transportation Authority, Inc., 2000000181; Big Kenlake Marina Corporation, 2000000004. Sandy Area Development District, 2000000184; DEPARTMENT OF EDUCATION Utah State University, 1900000748; Cumberland Valley Area Development District, KY INFRASTRUCTURE AUTHORITY University of Louisville Research Foundation, 2000000187; Fivco Area Development District, Cumberland Valley Area Development 1900002720; Henderson County Board of 2000000188; Kentucky River Area Development District, 2000000030; Pennyrile Area Education, 1900004080; Kentucky Educational District, 2000000191; Lake Cumberland Area Development, 2000000048. Development District, 2000000193; Pennyrile Development Corporation, 1900004082;

98 2019 Interim LEGISLATIVE RECORD Kentucky Valley Education, 1900004110; Fayette DEPARTMENT OF HIGHWAYS by Senator Meredith to consider the contract as County Board of Education, 1900004137; Corbin Stantec Consulting Services, Inc., reviewed. Senator Carroll seconded the motion, Independent School District, 1900004160; Knox 2000000348; Strand Associates, Inc., which passed. County Board of Education, 1900004161; Pike 2000000381; Palmer Engineering Company, County Board of Education, 1900004941. 2000000383; H. W. Lochner, Inc., 2000000384; OFFICE OF ENERGY POLICY QK4, Inc., 2000000386; Integrated Engineering, Kentucky Foundation, Inc., 1900004751; DEPARTMENT OF MILITARY AFFAIRS 2000000388; HMB, Inc., 2000000389; HDR National Energy Education Development Louisville & Jefferson MSD, 1800000724; Engineering, Inc., 2000000390; QK4, Inc., Project, 2000000275; Cedar, Inc., 2000000294. Louisville & Jefferson MSD, 1800000732; 2000000458; Palmer Engineering Company, Rick Bender and Lona Brewer discussed the Louisville & Jefferson MSD, 1800000735; 2000000460; GRW Engineers, Inc., 2000000466. contracts with the committee. A motion was Louisville & Jefferson MSD, 1800000750; Eric Pelfrey, David Harmon, and John Drake made by Senator Meredith to disapprove the Louisville & Jefferson MSD, 1800000773; discussed the contracts with the committee. A contracts. Representative Hart seconded the Oldham County EM, 1800000802. motion was made by Senator Carroll to consider motion which failed, with Senator Wheeler and Representative Fugate voting no and JUSTICE - OFFICE OF THE SECRETARY the contracts as reviewed. Senator Wheeler seconded the motion, which passed. Representative Lee voting to pass. A motion was Unlawful Narcotics Investigations made by Representative Fugate to consider the Treatment and Education, 1900001531. contract as reviewed. Senator Wheeler seconded TRANSPORTATION - OFFICE OF THE THE FOLLOWING PERSONAL the motion, which passed with Representative SECRETARY SERVICE AMENDMENTS WERE SELECTED Hart voting no. University of Louisville Research FOR FURTHER REVIEW: UNIVERSITY OF KENTUCKY Foundation, 1800001726. St. Claire Regional Medical Center, 005-20. DEPARTMENT OF CORRECTIONS Barry Swanson and Chipper Griffith discussed The Moss Group, Inc., 1900003657. Tom the contract with the committee. A motion THE FOLLOWING FILM TAX Kerr, Brad, Holajter, Stacy Woodrum, and was made by Senator Meredith to consider the INCENTIVES WERE REVIEWED WITHOUT Graham Gray discussed the contract with the contract as reviewed. Representative Fugate OBJECTION: committee. A motion was made by Senator seconded the motion, which passed. Meredith to consider the contract as reviewed. TOURISM - OFFICE OF THE SECRETARY Representative Lee seconded the motion, which Stargazer 2019i, LLC, 2000000349; SGT passed. THE FOLLOWING MEMORANDA OF ROX, LLC, 2000000364; Ocotillo Heights AGREEMENTS FOR $50K AND UNDER Productions, LLC, 2000000468. DEPARTMENT OF HIGHWAYS QK4, Inc., C-00240486. Eric Pelfrey, John WERE SELECTED FOR FURTHER REVIEW: Drake, and David Harmon discussed the contract OFFICE OF ENERGY POLICY THE FOLLOWING PERSONAL with the committee. A motion was made by Bluegrass Greensource, Inc., 2000000297. SERVICE CONTRACTS WERE SELECTED Representative Hart to consider the contract Rick Bender and Lona Brewer discussed the FOR FURTHER REVIEW: as reviewed. Senator Meredith seconded the motion, which passed. contract with the committee. A motion was made by Representative Fugate to consider the DEPARTMENT FOR NATURAL OFFICE OF THE CONTROLLER contract as reviewed. Senator Wheeler seconded RESOURCES American Municipal Tax-Exempt the motion, which passed. Goldberg Simpson, LLC, 2000000353. John Compliance Corporation, 1900000743. Horne and Jeff Harmon discussed the contract Ryan Barrow discussed the contract with EXEMPTION REQUESTS: with the committee. A motion was made by the committee. A motion was made by COUNCIL ON POSTSECONDARY Representative Fugate to consider the contract Representative Hart to consider the contract as EDUCATION: as reviewed. Senator Wheeler seconded the reviewed. Senator Carroll seconded the motion, The Council on Postsecondary Education motion, which passed. which passed. requested an amended exemption from the committee’s routine review process for MOA’s DEPARTMENT OF CRIMINAL JUSTICE using Federal funds received from the US TRAINING Department of Education, under Title IV of the Bluegrass Community and Technical THE FOLLOWING MEMORANDA Higher Education Act, for the Gaining Early College, 2000000242. Graham Gray, April OF AGREEMENTS WERE SELECTED FOR Awareness and Readiness for Undergraduate O’Dea, and Kevin Rader discussed the contract FURTHER REVIEW: Programs (GEAR UP) and will continue to with the committee. A motion was made by provide the committee with quarterly reports. A Representative Fugate to consider the contract DEPARTMENT FOR PUBLIC HEALTH motion by Senator Carroll to grant the request to as reviewed. Senator Wheeler seconded the Big Sandy Health Care, Inc., 1900005008. June 30, 2022. Representative Hart seconded the motion, which passed. Cindy Arflack and Jan Chamness discussed the contract with the committee. A motion was made motion, which passed without objection. CABINET FOR HEALTH AND FAMILY THE KENTUCKY GENERAL ASSEMBLY 99 SERVICES: Committee was held on Tuesday, September 17, Certifier is in the process of certifying Ring 1A The Division of Procurement and Grant 2019, at 1:00 PM, in Room 171 of the Capitol for site migration, which should take place in a Oversight, on behalf of The Department Annex. Senator Rick Girdler, Chair, called the couple of weeks. for Behavioral Health, Developmental and meeting to order, and the secretary called the Project Report from the Finance and Intellectual Disabilities requested an amended roll. Administration Cabinet exemption from Committee Policy Statement Present were: Senator McDaniel moved to roll the 99-4, which prohibits contracts and agreements Members: Senator Rick Girdler, Co-Chair; appropriation increase and two new projects into from extending beyond biennium for two KORE Representative Walker Thomas, Co-Chair; one roll call vote, seconded by Representative Contracts (PON 729 1700002889 & PON 729 Senators Julian M. Carroll, Christian McDaniel, Thomas, and approved by voice vote. 1900000520). A motion was made by Senator and Robby Mills; Representatives Steven Rudy, Ms. Tomes submitted a $1,755,584 Carroll to grant the request to June 30, 2020. and Maria Sorolis. appropriation increase, from $7.2 million to Representative Hart seconded the motion, which Guests: Deck Decker, Interim Executive $8,955,854 in federal funds, for the Department passed without objection. Director, Kentucky Communications Network of Military Affairs, Construct Response Group Authority; Janice Tomes, Deputy State Budget Building Kentucky Air National Guard Phase I CABINET FOR HEALTH AND FAMILY Director, Office of State Budget Director; Scott project. The increase was due to federal design SERVICES: Aubrey, Director, Division of Real Properties, and construction revisions. The Division of Procurement and Grant Department for Facilities and Support Services; Ms. Tomes next submitted two new Oversight, on behalf of The Department for and Ryan Barrow, Executive Director, Office of Kentucky Transportation Cabinet projects, the Community Based Services for Employment Financial Management. $4,814,700 Simpson County and $5,549,300 Opportunities requested an exemption from LRC Staff: Katherine Halloran, Committee Whitley County Welcome Centers. 80 percent Community Policy Statement 99-4, which Staff Administrator; Julia Wang, Legislative federal funds and 20 percent road funds will fund prohibits contracts and agreements from Analyst; and Jenny Wells Lathrem, Committee both projects, the demolition and replacement of extending beyond biennium for an agreement Assistant. the existing welcome centers. to partner with The Center for Employment Approval of Minutes (August 27, 2019) Senator Carroll moved to approve the Opportunities to implement a Supplemental Senator Carroll moved to approve the appropriation increase and two new projects, Nutrition Assistance Program Employment minutes of the August 27, 2019 meeting. seconded by Senator Mills, and approved by Training Agreement to cross the biennium. A Representative Thomas seconded the motion, unanimous roll call vote. motion was made by Senator Carroll to grant the and the committee approved the minutes by Lease Report from the Finance and request to September 30, 2020. Representative voice vote. Administration Cabinet Hart seconded the motion, which passed without Information Items Representative Rudy moved to roll the five objection. Ms. Halloran referenced three information lease renewals into one roll call vote, seconded CABINET FOR HEALTH AND FAMILY items. Pursuant to KRS 45.760(5), the University by Senator Mills, and approved by voice vote. SERVICES: of Kentucky reported two restricted fund medical Mr. Aubrey submitted five lease renewals The Division of Procurement and Grant equipment purchases. under the same terms and conditions. The first Oversight, on behalf of The Department Pursuant to KRS 45.812(1), the Boyd was for CHFS, DCBS in Montgomery County; for Behavioral Health, Developmental and County School District reported a projected 11,544 square feet of office space at $13.50 per Intellectual Disabilities requested an amended $5.685 million bond issue for Phase IV of its high square foot costing $155,844 annually, through exemption from Committee Policy Statement school. June 30, 2022. 99-4, which prohibits contracts and agreements Pursuant to KRS 48.111(6), the Division The second was for CHFS, Commission for from extending beyond biennium, Centerstone of Real Properties reported a lease invitation to Special Healthcare Needs, in Fayette County; Emergency Department and Bridge Clinic consolidate three Cabinet for Health and Family 10,912 square feet of office and clinic space at Service Contract (PON 729 1800000550), as Services (CHFS) leased facilities in Floyd County, $16.50 per square foot costing $180,049 annually, additional funds in the amount of $181,600.00 two Department for Community Based Services through June 30, 2022. were added to the contract. A motion was made (DCBS) offices and an Office for Children with The third was for the Department of by Senator Carroll to grant the request to June 30, Special Healthcare Needs. Housing, Building and Construction, in Franklin 2020. Representative Hart seconded the motion, Kentucky Communications Network County; 37,286 square feet of office space at which passed without objection. Authority $8.07 per square foot costing $300,898 annually, There being no further business, the meeting Mr. Decker reported the Kentucky Bond through June 30, 2021. adjourned at 11:48 AM. Development Corporation, Industrial Building The fourth was for CHFS, DCBS, in Letcher Revenue Bonds, City of Williamsburg, Series County; 19,285 square feet of office space at CAPITAL PROJECTS AND BOND 2019 previous debt issue and the status of the $9.26 per square foot costing $178,579 annually, OVERSIGHT COMMITTEE KentuckyWired project. Rings 1A and 1B are lit, through June 30, 2021. Minutes September 17, 2019 Ring 2 is about to be lit, Rings 3 and 5 is projected The fifth was for the Department of Call to Order and Roll Call to be lit by the end of this year, and Ring 4 is Workforce Investment in Fayette County; 11,513 The Capital Projects and Bond Oversight projected to be lit Spring 2020. The Independent square feet of office space at $16.50 per square

100 2019 Interim LEGISLATIVE RECORD foot costing $189,965 annually, through June 30, Education Student Loan Corporation (KHESLC) Present were: 2022. Student Loan Backed Notes, approximately $105 Members: Senator Christian McDaniel, Co- Representative Thomas moved to approve million, to finance federally guaranteed Federal Chair; Representative Suzanne Miles, Co-Chair; the five lease renewals, seconded by Senator Family Education Loan Program student loan Senator Dennis Parrett; Representative Susan McDaniel, and approved by unanimous roll call acquisitions. Westrom. vote. The second was the Kentucky Economic Guests: Mike Burress, Executive Director, In response to Senator McDaniel, Mr. Development Finance Authority (KEDFA) Lincoln Trail Area Development District (ADD); Aubrey stated that he would confirm that the Revenue Bonds (CommonSpirit Health), Series Michelle Allen, Executive Director, Kentucky leased Montgomery County property was not in 2019A, approximately $176 million, to refund River ADD; and Jason Vincent, Executive the courthouse. He also stated that the owner for some prior conduit debt in which Catholic Director, Pennyrile ADD. the Franklin County leased property passed and Health Initiatives (CHI) was the borrower. This LRC Staff: Mark Mitchell, Jennifer Hays, that the assets were placed in a family trust. The conduit debt issue was neither a liability to and Chase O’Dell owner’s son now oversees the property. KEDFA nor the commonwealth. Approval of Minutes Report from the Office of Financial In response to Senator McDaniel, Mr. A motion was made, and seconded, to Management Barrow confirmed that the transactionapprove the minutes of the June 18, July 24, and Office of Financial Management generated $1.5 million in present value savings August 28 meetings. The minutes were approved New Debt Issues to CommonSpirit Health, of which CHI is a by voice vote. Senator Mills moved to roll the two new component. Procedures for Grant Awards, Grant debt issues into one roll call vote, seconded by The third was the Murray State University Amounts by County in Each ADD, and Owned Representative Thomas, and approved by voice General Receipts Refunding Bonds, 2019 Series or Leased Facilities by ADD vote. A, about $4.1 million, to refund some prior debt Mike Burress, Executive Director, Lincoln Mr. Barrow submitted two new debt for about $350,000 in net present value savings. Trail Area Development District (ADD); Michelle issues. The first was the State Property and School District Bond Issue with School Allen, Executive Director, Kentucky River ADD; Buildings Commission (SPBC) Revenue and Facilities Construction Commission Debt and Jason Vincent, Executive Director, Pennyrile Revenue Refunding Bonds, Project No. 122. Service Participation ADD; discussed the procedures for grant awards, The general fund supported bond issue will Mr. Barrow submitted the estimated grant amounts by county in each ADD, and finance $175 million of projects authorized in $530,000 Middlesboro Independent school owned or leased facilities by each ADD. various appropriations bills and refund some district bond issue with School Facilities Mike Burress testified that the state prior debt for economic savings. One refunding Construction Commission debt service General Fund has allocated $1.98 million to series was a current refunding for around half participation for roof improvements to its middle the Department for Local Government (DLG) a million in savings. The other two refunding school and central office; 75 percent SFCC funds through the Joint Funding Administration (JFA) series were structured to accommodate federal and 25 percent local funds. The school district for Fiscal Year (FY) 2020. Mr. Burress continued tax law changes. The first was a forward delivery did not need a tax increase to finance this project. to say that $1,050,000 will be allocated to refunding for around $1.2 million in savings Representative Thomas moved to approve Kentucky through the Economic Development that will only be executed if rates change prior to the school district bond issue, seconded by Administration (EDA) in FY 2020. Kentucky will pricing the other series. The second was a taxable Senator Mills, and approved by unanimous roll receive over $22 million in FY 2020 through the advance refunding of Project No. 100 Series A call vote. Community Development Block Grant (CDBG). debt for around $12 million in savings. Senator Girdler announced that the next Michelle Allen testified that there are nine The second was the Northern Kentucky meeting would be Tuesday, October 15, 2019 in ADDs that fall within the Appalachian region University General Receipts Bonds, 2019 Series Annex Room 169, with Representative Thomas in Kentucky. In FY 2020, $806,158 will come A to finance $37 million in projects; a residence as chair. through the Appalachian Regional Commission hall, garage, and additional parking. The majority With there being no further business the (ARC) to those ADDs. of funds will be allocated towards the residence meeting adjourned at 1:22 p.m. Mr. Burress stated that the U.S. Department hall. of Labor provides over $32 million directly to In response to Senator Carroll, Mr. Barrow AREA DEVELOPMENT DISTRICT Kentucky for workforce development. said that interest rates have been historically low, WORKING GROUP Ms. Allen said that the aging services resulting in a compressed interest rate differential Minutes of the 4th Meeting program contains a blend of federal and state between a AAA credit rating and the state’s credit of the 2019 Interim funds. The federal funds come from the U.S. rating (Aa3 with Moody’s). September 25, 2019 Department of Health and Human Services Senator McDaniel moved to approve the Call to Order and Roll Call Administration for Community Living. The new debt issues, seconded by Senator Mills, and The 4th meeting of the Area Development federal and state dollars both come to the approved by unanimous roll call vote. District Working Group was held on Wednesday, Department for Aging and Independent Living Previous Debt Issues September 25, 2019, at 10:00 AM, in Room (DAIL) before being divided among the ADDs. Mr. Barrow reported three previous debt 149 of the Capitol Annex. Senator Christian The funds are divided by an intrastate formula. issues. The first was the Kentucky Higher McDaniel, Chair, called the meeting to order, In response to a question from Senator and the secretary called the roll. THE KENTUCKY GENERAL ASSEMBLY 101 McDaniel, Joseph Vincent stated that reporting Representative Jim Gooch Jr., Chair, called the many small and midsize utilities are choosing to discrepancies can depend on how an ADD meeting to order, and the secretary called the sell their water and wastewater systems. reports expenses. roll. Mr. Powelson said that over the next 20 In response to a question from Representative Present were: years, Kentucky water systems will be facing $8.23 Westrom, Mr. Vincent testified that waiting lists Members: Senator Phillip Wheeler, Co- billion in drinking water infrastructure needs and for aging services are substantial. In response Chair; Representative Jim Gooch Jr., Co-Chair; $6.24 billion in wastewater infrastructure needs. to more questions, Mr. Vincent stated that the Senator Robin L. Webb; Representatives Derek According to the Associated General Contractors remedy would be increased funding. The waitlist Lewis and Ashley Tackett Laferty; Mike Gardner, of America, every $1 billion invested for water from last year totaled 6,902 individuals. Mr. Peter Goodmann, Orbrey Gritton, Gary infrastructure would support 28,500 jobs. In Vincent continued to say that the problem is Larimore, and Donna McNeil. 1974, Kentucky had approximately 2,100 public spread across the state. Guests: Robert F. Powelson, President and water systems and now there are roughly 437 Mr. Vincent testified that 10 of the 15 ADDs Chief Executive Officer, National Association systems. American Water had invested heavily own their main office building. Five of the ADDs of Water Companies, Sandy Neal, Director of in their research and development operation by lease their main office building. Business Development, Bluegrass Water Utility using predictive analytics. American Water had In response to a question from Senator Operating Company, Todd Thomas, Bluegrass also done a great job of replacing infrastructure Parrett, Mr. Vincent stated that the Pennyrile Water Utility Operating Company, and John and delivering on safety, reliability, and ADD works directly with the Department of Greer, Utility Specialist, Tennessee Comptroller affordability to their customers. If Kentucky Veterans Affairs (VA) and provides various of the Treasury. continued to move towards regionalization of services for veterans. Mr. Vincent added that the LRC Staff: Stefan Kasacavage, Janine water and wastewater assets, it could create Pennyrile and Lincoln Trail ADDs do a significant Coy-Geeslin, Tanya Monsanto, and Susan 410,000 potential jobs. Grid modernization amount of work with soldiers transitioning out Spoonamore, Committee Assistant. drives job investment, and it also addresses of Fort Campbell and Fort Knox. The August 28, 2019, minutes were reliability and safety metrics for industrial, small In response to a question from approved, by voice vote, upon motion made by business, and residential customers. Representative Miles, Mr. Vincent testified that Representative Lewis and seconded by Senator In order to help municipalities capitalize ADDs have been involved in social programs Wheeler. their assets, Kentucky must first enact Fair Market from the beginning. In response to further Investing in Kentucky’s Water and Value (FMV) legislation. FMV legislation would questions, Mr. Burress stated that ADDs are Wastewater Infrastructure establish a transparent process for independent local government, but are modeled after local, Robert Powelson, President and Chief valuation experts to calculate a reasonable and state, and federal government policy. If an ADD Executive Officer, National Association of Water fair value for a water system’s assets subject to were not able to fulfill its financial obligations, Companies, said that nationally, there are some approval of the Public Service Commission. It the debts would fall to the local board. chronic failures facing the water grid. He stated that is a voluntary program that would allow water In response to a question from Representative his message is about ways to create consolidation and wastewater systems to maximize the value of Westrom, Mr. Burress testified that ADDs hold so private capital can be deployed to solve some their assets. It would also create a straightforward annual board orientations. He continued to say of the big problems with water systems. The latest process for determining the actual value of an that the ADDs work with various associations to infrastructure assessment reports identify a $14 asset. Under the FMV program, it would allow provide training for board members. In response billion infrastructure funding gap for water and a willing seller and a willing buyer to agree on a to further questions, Mr. Burress testified that wastewater infrastructure in the Commonwealth purchase price. The seller and the buyer would there are award costs and expenditure costs for of Kentucky. choose an independent appraiser, then those two services provided. When the expenditures are Mr. Powelson said that there are 52,000 appraisers would choose a third appraiser, by higher than the award, the difference is often water systems in the United States and 85 percent mutual agreement. All three appraisers have to made up by local contributions. of those systems are run by municipalities. There be certified and are paid by the acquiring utility. Adjournment are approximately 1,500 drinking water systems The fair market value would be the average of the With no further business before the working deemed in violation of the Safe Water Act. The three appraisals. An acquisition by a member of group, the meeting was adjourned. big challenge facing water systems is how to the National Association of Water Companies address what is actually a national problem. The would not take away local control, cause loss of PUBLIC WATER AND American Society of Civil Engineers (ASCE) jobs, or rates to skyrocket. WASTEWATER SYSTEM gave the United States wastewater grid a D. The In response to Senator Webb, Mr. Paulson INFRASTRUCTURE TASK FORCE largest issue facing states is how to maintain stated that 11 states have Fair Market Value Minutes of the 3rd Meeting viable sustainable water service to communities. legislation. American Water was the largest of the 2019 Interim According to the ASCE, it will take $4.5 trillion investor-owned utility in the country. Kentucky September 18, 2019 by 2025 to fix and or maintain viable sustainable American Water can use single tariff pricing, Call to Order and Roll Call water services. As a result of insufficient which would spread the cost among the universal The 3rd meeting of the Public Water and infrastructure, increased cost of regulatory rate base – everybody would pay. Of course, a rate Wastewater System Infrastructure Task Force compliance, shrinking state budgets, limited increase case would need to be presented before was held on Monday, September 18, 2019, at bonding capacity, and limited government funds, the Public Service Commission for approval. 1:00 PM, in Room 129 of the Capitol Annex.

102 2019 Interim LEGISLATIVE RECORD In response to Senator Wheeler, Mr. Paulson last resort for many communities. Customers informally, without lawyers, unless the failing said he did not know how much water rates are offered several payment options, including system fails to comply. increased after being purchased by American an 800 number, for billing issues or reporting In response to Senator Webb, Mr. Greer Water. He stated that he could provide that problems CSWR uses local contractors, local said that if an official of the water or wastewater information. He explained that the proceeds water and wastewater contractors, and a cloud- utility missed a training, then the county judge of a sale go directly to the municipality to use based management system. could not reappoint them to the local board. If however they see fit. In response to Mr. Gardner, Mr. Thomas a commissioner has a breach of their fiduciary In response to Mr. Goodmann, Mr. Paulson said that fair market value would be a good responsibility in running the system, the COT said there are infrastructure systems throughout option since some of the systems have nothing will start ouster proceedings that go through an the United States that would be better served in a else to offer. He also said that CSWR would like administrative law judge. If, for example, a mayor regional investment structure. to use a statewide unified rate. CSWR typically were to miss training, the entire entity would get Safe Water, Healthy Communities buys from private individuals not municipalities. referred to the COT. Todd Thomas, Vice President of Central In response to Mr. Larrimore, Mr. Thomas In response to Representative Gooch, States Water Resources (CSWR), a/k/a Bluegrass said CSWR had no complaints about the Mr. Greer stated that training is mandatory in Water Utility Operating Company stated that acquisition process with the PSC in cooperation Tennessee. Within one year from an official’s CSWR purchases water systems that no one with the Kentucky Division of Water. appointment, they must obtain 12 hours of on- else wants. CSWR consolidates desperate line training, and then 12 hours of continuing systems that are spread apart. CSWR’s mission Addressing Failing Systems in Tennessee education every three years for as long as the is to bring safe, reliable, and environmentally- Mr. John Greer, Utility Specialist, Tennessee official serves the utility. responsible water resources to every community Comptroller of the Treasury, and Technical Mr. Greer stated that all government utilities in the United States and to be the best water Secretary to both the Water and Wastewater in Tennessee must submit an annual audit by utility in the U.S. at providing service to small Financing Board (WWFB) and the Utility an independent certified public accountant. A communities. “Small” could mean as few as 20 Management Review Board (UMRB) explained two-year operating loss, or a default on a debt people on the system. The vision is to transform that the Office of the Comptroller of the Treasury instrument would get the utility or entity referred communities, large or small, by using technology (COT) does not work for private investor- to the board. New utilities must obtain approval and innovation to quickly invest in reliable owned utilities, only government utilities. The from the board prior to beginning operation. If a infrastructure to meet the needs and protect the COT office is housed within the Tennessee state utility loses 20 percent or more of their operating river and streams of the state. Some systems lack legislature so, he is an employee of the legislative cost in water loss, the entity must submit a Water managerial, technical, and financial capabilities. branch. The WWFB and the UMRB were created and Wastewater Analysis (WWA) reporting There are systems that have been in operation for in 1987 to protect the state’s revolving loan fund, worksheet. decades and were not designed to meet the new but in 2007 they were moved to the COT. The Mr. Greer said the board partners with local regulatory requirements for water or wastewater. WWFB oversees the water and wastewater utilities for education, financial planning, and No bank will offer any money to repair these old systems for 260 municipalities, 12 counties, and managerial and technical assistance. The board systems without a personal mortgage or personal 10 regional authorities. The UMRB oversees 179 also collaborates with local, state, and federal property. utility districts (rural water districts). Mr. Greer agencies. Mr. Thomas said that CSWR’s investments said that the UMRB and WWFB consists of nine Mr. Greer noted that after a utility gets into water resources are also investment into members, two ex-officio, and seven members referred to the board, the utility will have a five communities at-large, ultimately enhancing appointed by the Governor. The boards have year capitol asset plan. The COT continually value and driving outside investment. CSWR representatives from different industries, but provides information to utilities through its engages with community owners and leaders all are local government experts. The purpose Web site, bulletins, and twitter. in need of help, purchases utility assets, and of the boards is to correct financial losses In response to Representative Gooch, Mr. partners with communities to improve service through user rate increases, expense decreases, Greer stated that he has been the only staff and value. He said that repairing outdated water negotiating regional consolidation for public- member for the boards for the past three years, and wastewater systems increases the value of to-public utilities. Under Tennessee law, water but another person had just been hired. He said each community it serves. Mr. Thomas said water and wastewater facilities are required to be once the communication barriers with other quality has a direct impact on home values. self-supporting. The UMRB acts for the public state agencies are dissolved, it makes the job Mr. Thomas said that CSWR works welfare and carries out the General Assembly’s easier by having information available. with the Kentucky Division of Water and the intent that utility districts be operated as a self- In response to Mr. Gardner, Mr. Greer said Public Service Commission (PSC) to identify sufficient enterprises. that audits are not expensive for most of the communities that are in desperate need of Mr. Greer explained that both boards follow utilities because the auditor has to be approved critical water infrastructure investment. CSWR regulatory procedures that consist of a formal by COT. A $22 million community development recently obtained PSC approval to acquire nine review, board investigation (five years of financial block grant was given to water and wastewater water utilities in Kentucky and is in the process data and five years of water loss and operational systems last year in blocks of $550,000. He also of filing to acquire six more. CSWR is a private data), informal hearings, contested cases, and stated that giving money to poorly run systems solution to a public problem and is an option of litigation. All of the procedures are conducted does not help. Mr. Greer said that Tennessee

THE KENTUCKY GENERAL ASSEMBLY 103 found funds at the federal and state level through the meeting to order, and the secretary called the for “program maintenance” that HB3 proposes. matches for only small distressed communities. roll. The very precise funding allocations proposed The State Revolving Funds (SRF) help to Present were: under HB3 will hinder the current “above cap” encourage mergers. Members: Senator Stan Humphries, spending the state is using for child welfare and In response to Mr. Gardner, Mr. Greer Co-Chair; Senator Whitney Westerfield;basic assistance. If HB3 was to go into effect, and stated that the model developed by the COT had Representative Russell Webber; Elizabeth the state did not find alternative funding sources helped to change lives. The model is designed to Caywood and Bill Wagner. for basic assistance and child welfare, those take governments and fix them, leaving money Guests: Representatives and programs could no longer be funded at their in the local community and local government. Kim Moser; Matt Weidinger, Resident Fellow, current rate. In response to Mr. Larrimore, Mr. Greer said American Enterprise Institute; Meghan McCann, HB3’s work policy is similar to legislation the biggest distinction between the two boards Senior Policy Specialist, National Conference implemented in Maine which found that after and the PSC is the formality. The utility would be of State Legislatures; Terry Brooks, Executive their pro-work activity policy went into effect, paying attorneys’ fees and dealing with the Office Director, Kentucky Youth Advocates; Jennifer Maine saw their TANF, able-bodied adults of the Attorney General for rate increases. Going Hancock, President and CEO, Volunteers of without dependents caseloads drop by 80 percent. through the Water and Wastewater Financing America Mid-States; Anne Polston, Kinship Falling from 13,332 recipients in December 2014 Board and Utility Management Review Board Caregiver from Casey County; Douglas Beard, to 2,678 recipients in March 2015. is a more informal process. Each board has Director, Division of Family Support, Cabinet the expertise to deal with the entities that they for Health and Family Services. Kathy Curtis, Mt. Mr. Weidinger stated that HB3 includes a regulate. Tabor Benedictines; Amanda Groves, Kentucky measure to place a Supplemental Nutritional In response to Mr. Larrimore, Mr. Greer Council of Churches; Jessica Hinkle and Erin Assistance Program (SNAP) recipient’s photo stated that the boards are not in the business Kidder, DCBS; Mike Sasko, Softheon Inc. on their SNAP electronic benefits card (EBT) of setting rates without having all the data LRC Staff: Chris Joffrion, Lead Staff, Hillary to help prevent EBT fraud. HB3 specifies presented. Mr. Greer did not know how much it McGoodwin, Sean Meloney, and Ben Payne. that retailers participating in the food stamp would cost an entity going before the PSC, but Approval of Minutes program must ensure that the recipient’s photo there are no fees charged by the boards unless A motion to approve the minutes of on the card matches the purchaser. While EBT an outside consultant would be needed to do a the August 19, 2019 meeting was made by fraud is a known problem, so is getting the rate study. Even at that, both boards can have Representative Webber, seconded by Senator retailers to comply with the various anti-fraud a rate study done for local governments for Westerfield, and approved by a voice vote. measures, like the photo on the card. This would approximately $1,000. The Case for Public Assistance Reform require the state to institute more oversight In response to Ms. McNeil, Mr. Greer stated Matt Weidinger, Resident Fellow, American on the retailers to ensure compliance with the that the boards work with the SRF program by Enterprise Institute, stated that Kentucky House measures. Massachusetts’ implementation of placing all audits on-line and sending background Bill 3 (HB3) would reorient the current allocation the photo EBT casts doubt on the efficacy of information to the SRF. Working closely with the of funds from the Kentucky’s Temporary this option. The most prevalent source of waste SRF, it helps to eliminate bad loans and confirm Assistance for Needy Families (TANF) program. in the SNAP program occurs through payment that entities are eligible. Mr. Greer said that the The TANF funds would be divided 25 percent errors resulting in agency miscalculation of University of Tennessee is researching an Ability for childcare; 25 percent for work, education, recipient benefit eligibility. Kentucky is far from to Pay Index and Affordability Index study along and training programs; 25 percent for work having the highest rate of SNAP payment error, with rate metrics. supports and supportive services; 15 percent for the United States Department of Agriculture In response to Ms. McNeil, Mr. Greer said basic assistance; five percent for nonrecurring (USDA) reported Kentucky’s rate was 7.17 that if any utility defaults on debt, has a technical short-term benefits; and five percent for program percent last year, compared to the highest rate of default, does not meet bond covenants, or just maintenance. As of 2018, Kentucky is the only 16.33 percent in Washington, DC. forgets to make a payment, they instantly get state that devoted a majority (65 percent) of its Mr. Weidinger stated that HB3 would referred to the COT. TANF funds to basic assistance compared to the condition eligibility for SNAP and Medicaid Meeting adjourned. national average of 21 percent. With the shift of benefits on compliance with a new substance funds towards pro-work related programming abuse screening program. This requirement PUBLIC ASSISTANCE REFORM and appropriate broad disbursement of funds would provide advantages to both the state and TASK FORCE within TANF, Kentucky would be in line with the the recipient since 78 percent of all jobs require Minutes of the 3rd Meeting intended purposes of TANF and pending federal applicants to pass a drug screening. Illegal of the 2019 Interim legislation. drug use disqualifies a person from receiving October 7, 2019 In states which have undertaken to unemployment insurance, and this condition Call to Order and Roll Call strengthen programs designed to assist adults on assistance should be no different. Limiting The 3rd meeting of the Public Assistance with going to work, new programming to help the substance use screening to persons with a Reform Task Force was held on Monday, October recipients to find, enter, and remain in work history of substance use disorder might solve 7, 2019, at 3:00 PM, in Room 131 of the Capitol can be more expensive than basic assistance. It legal concerns by possibly providing just cause. Annex. Senator Stan Humphries, Chair, called may require spending above the five percent cap The drug screening focus proposed in HB3 could

104 2019 Interim LEGISLATIVE RECORD both limit the cost of the policy on the state In response to questions from Senator of eligibility standards to enable a longer stay but improve the likelihood that persons with Humphries, Mr. Weidinger stated that to create on benefits while working, and 3) providing a history of substance abuse are not misusing a 10 percent “slush” fund within TANF for monetary incentives for continued employment taxpayer funds. poor economic times or anomalous situations, or allowing more earned income to be retained. In response to questions from Bill Wagner, Kentucky could shave two percent the TANF Ms. McCann stated that policies aimed Mr. Weidinger stated that the language in HB3 spending categories within HB3. at mitigating or eliminating benefits cliffs have is not similar to any other state legislation that Benefits Cliffs: What are they and how can interrelated goals that together support workers, he is aware of but that the federal government we bridge them families, and business while bolstering the has several laws that have incorporated similar Meghan McCann, Senior Policy Specialist, economy. The Whole Family Approach to Jobs language. National Conference of State Legislatures work group identified a menu of policy options Representative Moser commented that drug stated that benefits cliff are what happens when for both state and federal consideration. The testing SNAP and Medicaid recipients invokes public benefit programs taper off or phase out state policies are organized into five overarching another barrier to treatment for an already quickly as household earnings increase. When state policy strategies: 1) mapping benefits cliffs barrier ridden part of Kentucky’s population. income increases, families sometimes lose some and pathways to financial self-sufficiency, 2) Representative Moser stated that while the or all economic supports. These can include aligning eligibility levels, 3) making work pay, intention behind the drug testing is to benefit the the SNAP, school nutrition programs, health 4) increasing family economic security through employer and the taxpayer, the recipient would care, child care assistance, TANF, and housing asset development, and 5) fostering culture and bear the unintended consequences of potentially assistance. Often, the benefit cliff means wage system changes in the public and private sectors. keeping those persons with substance abuse increases result in a net loss of resources or only Ms. McCann stated that the work group disorders from seeking any help for themselves a small overall increase. For this reason, the found the median wage to lift a family out of or their family. Mr. Weidinger responded benefit cliff is viewed as a disincentive to work. poverty was between $15-$18/hour. While this that the language in HB3 is targeted in its The abrupt reduction or loss of benefits can be presents the state with immediate difficulties, intended implementation and those unintended very disruptive for families because even though the state can implement various tax exemptions consequences are things to consider. household earnings increased, they usually have and credits to give cliff-bound families a boost. Elizabeth Caywood commented that the not increased to the point of self-sufficiency. Those exemptions come in the form of 1) earned state already has a number of drug screening Ms. McCann stated that for families, the income tax credits, 2) asset development from programs and services that do not entail drug cliff effect can create an anchor into, rather than escrow accounts and individual development testing. Public assistance programs afford many a ladder out of, poverty. They lose more than accounts. The state can engage with the labor with substance use disorders the financial they gain when they take a job or receive a raise, force, employers, and schools to create a support to access recovery and rehabilitative and their safety net is simultaneously weakened streamlined career pathway as well as looking services. Both the drug testing and Mr. or eliminated. For businesses, it often means into the importance of dual-parent income and Weidinger’ s support for HB3’s requirement for perpetually recruiting, hiring, and training for investing in childcare assistance. photo identification on EBT cards would be too the same entry-level positions. This effect is In response to questions from Mr. Wagner, costly for the state and are a barrier to caregivers, seen by some, including the U.S. Department Ms. McCann stated that she did not know where children, and recipients who rely on others to get of Health and Human Services (HHS), as Kentucky ranked for benefits cliffs in relation to their groceries. an effective marginal tax rate on low-income the national average, as it not data that is actively Ms. Caywood stated that in regards to Mr. earners, because they do not realize the full tracked. Weidinger’ s statement on how TANF funds dollar-for-dollar value of their earnings. Senator Humphries commented that the are currently being used by the state and his Ms. McCann stated that New England ideal hourly wage to avoid cliffs referenced in support for HB3’s change in disbursement, those is emerging as a leader in developing policy Ms. McCann’s presentation ($15-$18/hr.) is a changes would have drastic impact on how the solutions to the cliff effect. The six New England rate that the state and employers would be hard Department for Community Based Services states (Connecticut, Maine, Massachusetts, New pressed to meet. is able to fill in funding gaps for child welfare. Hampshire, Rhode Island and Vermont) are Public Assistance and Kentucky’s Kids Ms. Caywood stated that Mr. Weidinger’ s tackling benefits cliffs in policy, agency culture, Terry Brooks, Executive Director, Kentucky presentation is based on assumptions that there and frontline practice as part of a nationally Youth Advocates, stated that the focus of the are enough jobs in Kentucky to support a shift recognized regional two-generation initiative: state should be on various forms of tax credits to a pro-work assistance model and that this A Whole Family Approach to Jobs work group. and exemptions that help families stay together does not address the cyclical problem of people The work group conducted a nationwide and children prosper. He fears the emphasis in being in low-paying unstable jobs. The Kentucky environmental scan to identify administrative HB3 on work misses an opportunity to help model should be a practical, human-centric, and policy changes and legislation that have been impoverished Kentuckians without mandatory specialized program that reaches Kentuckians. enacted to address benefits cliffs. Short-term programming. The state should pursue earned In response to comments from Ms. solutions primarily fell into three categories: income tax credits which are refundable tax Caywood, Mr. Weidinger stated that those 1) phasing out benefits slowly, extending credits for low to moderate income working concerns are all things that need to be considered certification periods or using sliding fee scales, individuals. Mr. Brooks stated that earned within the targeted approach of HB3. 2) raising eligibility limits or changing exit/loss income tax credits have a 2:1 return on revenue.

THE KENTUCKY GENERAL ASSEMBLY 105 Childcare assistance is an opportunity for the Kentucky’s Plans for the SNAP National Office of Field Operations, Department of state to invest in programming, similar to what Accuracy Clearinghouse Revenue. is offered currently to foster parents, as a means LRC Staff: Greg Hager, Committee Staff to help keep parents at work without sacrificing Douglas Beard, Director, Department for Administrator; Greg Daly; Christopher T. Hall; the care of their children or childcare as a Community Based Services Division of Family Van Knowles; Jean Ann Myatt; Jeremy Skinner; barrier to stable employment. Another avenue Support stated that no states bordering Kentucky William Spears; Shane Stevens; Joel Thomas; and the state should consider is the age of youngest participate in the NAC. He explained that for Christy Young, Committee Assistant. child tax exemption which would waive work this reason, early participation does not make Minutes for September 13, 2019 requirements for TANF recipients after the birth logistical or fiscal sense but that the Cabinet Upon motion by Representative Thomas of a child, generally for 3- 12 months. for Health and Family Services (CHFS) would and second by Representative Koenig, minutes Anne Polston, a kinship caregiver from continue to monitor participation by other states. for the September 13, 2019 meeting were Casey County detailed her struggles raising her He reported that Kentucky would be prepared to approved by voice vote without objection. five grandchildren without any assistance from join the NAC by December 2021 as required by Staff Report:Nonacademic Barriers the state and advocated for a program that mirror federal laws. Facing Kentucky Community And Technical the financial assistance given to foster parents. Public Comments College Students Jennifer Hancock, President and CEO of Kathy Curtis, Mt. Tabor Benedictines, stated Mr. Stevens gave an overview of the Kentucky Volunteers of America Mid-States, stated that that as a resident of eastern Kentucky, she would Community and Technical College System the Volunteers of America has many programs encourage members of the task force to come (KCTCS). Its students differ from Kentucky that help low-income, individuals bridge the engage with the people who depend on these university students for specified characteristics housing and recovery gap while searching for programs, in their communities, and get their that are related to nonacademic barriers. They are and also maintaining employment. opinions since they will be directly impacted. more likely to be first generation, be unprepared An Update on the New SNAP National Amanda Groves, Kentucky Council of for college, have dependents, be low income, and Accuracy Clearinghouse Churches, stated that she did not like the be older. For all specified characteristics except Meghan McCann, Senior Policy Specialist, impression that people who receive benefits age, the report and presentation show a range National Conference of State Legislatures are takers. She explained that many people are of values based on whether the percentage is explained that the 2018 Farm Bill established the depending on these funds to survive, especially calculated based on only the number of students SNAP National Accuracy Clearinghouse (NAC). in light of recent plant closings and layoffs. She for which information on the characteristic is The clearinghouse is an interstate data system echoed the sentiments of Kathy Curtis and known or as a percentage of all students. The five that would aim to prevent multiple issuances of encouraged the members to talk to recipients in prominent nonacademic barriers facing KCTCS SNAP benefits and could reduce SNAP federal their communities before making grave changes. students are inability to navigate college, financial spending by $576 million from 2019-2028. Adjournment instability, competing time constraints, personal According to the 2018 Farm Bill, all states will There being no further business, the meeting health issues, and student disengagement. For be required to join the NAC by December 2021. was adjourned at 5:00 pm. each barrier, he described how it may affect Ms. McCann stated that in 2013, five states students. (Alabama, Florida, Georgia, Louisiana, and PROGRAM REVIEW AND Mr. Hall said that KCTCS does not have Mississippi) participated in a pilot project which INVESTIGATIONS COMMITTEE reliable information on the prevalence of looked at four things: impact on dual participation, Minutes nonacademic barriers. Recommendation 1 of effectiveness in utilization of the NAC, the October 4, 2019 the report is that the KCTCS System Office and Public Assistance Reporting Information System Call to Order and Roll Call colleges should develop methods to determine (PARIS), and the return on investment. The pilot The Program Review and Investigations the prevalence of specific nonacademic barriers project did reduce dual participation across the Committee met on Friday, October 4, 2019, at at each college and track the prevalence of such five pilot states. The effectiveness of utilization of 8:00 AM in Room 131 of the Capitol Annex. barriers over time. the NAC varied from state to state. NAC proved Senator Danny Carroll, Chair, called the meeting Given the lack of reliable data, Program more successful and efficient than PARIS in to order, and the secretary called the roll. Review staff used community-level data as proxy preventing and identifying dual participation. Present were: measures for the prevalence of specified factors The cost savings across the pilot states was $5.6 Members: Senator Danny Carroll, Co- that can lead to nonacademic barriers: average million in federal overpayment avoidance. States Chair; Representative Rob Rothenburger, Co- student income by college and by region average can join the NAC program prior to December Chair; Senators Perry B. Clark, Stephen West, income, housing as a high percentage of income, 2021, but they would be responsible for funding Whitney Westerfield, and Phillip Wheeler; food insecurity, access to child care, and access and would have to receive a waiver from their Representatives Lynn Bechler, Chris Fugate, to mental health and primary care providers. regional Food and Nutrition office. The startup Adam Koenig, Ruth Ann Palumbo, and Walker Mr. Spears said Program Review staff asked costs for the five pilot programs were: $29,200 Thomas. KCTCS college presidents to provide information for Alabama, $147,019 for Florida, $35,557 for Guests: Jay K. Box, President, Kentucky on programs addressing nonacademic barriers. Georgia, $127,555 for Louisiana, and $330,000 Community and Technical College System; Colleges provided information on 142 programs. for Mississippi. Daniel P. Bork, Commissioner, Department of Each college reported at least three programs; 11 Revenue; and Brent King, Executive Director,

106 2019 Interim LEGISLATIVE RECORD colleges reported at least eight programs. Staff between program participants and other groups it confirms that KCTCS students are different assigned programs to seven categories. Multiple of students were used for five programs. This can from university students, including what is barrier programs, which provide several types of be a strong measure because it helps determine needed to achieve success. The report is clear services, are the most common program at nearly whether programs changed outcomes for that KCTCS cannot continue to spend money 25 percent. Financial instability and navigation participants. All programs made comparisons and time on initiatives without determining are the most commonly targeted individual to the entire student population or to previous their impact. KCTCS has not done a good barriers. Targets vary by college. Half or more years. A stronger method would be to compare job of tracking nonacademic problems and of the programs at Henderson, Southcentral, participants with similar nonparticipants. programs, so the recommendations in the and Southeast target navigational issues. Half of KCTCS colleges were asked to estimate the report are a wake-up call. KCTCS will need Gateway’s programs target financial instability. number of students served by their programs help in doing this and will ask universities to do Half of Hazard’s programs are multiple-barrier in fall 2017 and spring 2018. Overall, programs research. He has shared the report with KCTCS programs. served a median 2.4 percent of students. The college presidents. The October meeting of the Programs were categorized into eight schools were asked to provide staffing estimates president’s leadership team will discuss how to groups based on the type of service. He described for their nonacademic programs. Most programs address the recommendations. the programs and their prevalence. Advising had five or fewer full-time-equivalent employees. Representative Thomas said that nearly $1 programs have an element of one-on-one Community college nonacademic programs million is allocated for matching KCTCS college interaction with students that provides career were reviewed in the seven surrounding states. foundation funding. In response to his questions, or academic support. Targeted services are for Some schools in other states offered programs Dr. Box said that three or four schools have this students with issues outside the classroom, for that were different but focused on similar issues. type of agreement, it is not system wide. example, child care. Inclusivity and engagement A Missouri college offered child care grants. An In response to Senator Carroll’s question programs have the similar goal of increasing Ohio college offered student health insurance. about trends in enrollment, Dr. Box said there interest and participation of students; inclusivity Two West Virginia colleges participated in a was a dramatic drop-off in enrollment beginning programs focus on specific subgroups.program to provide free counseling services in 2012. Enrollment steadied in 2017 and is up Streamlining programs aim to make progress through text messages. 2 percent this year. KCTCS is one of the few easier for students. Financial aid, tutoring, and Mr. Hall said that the ultimate goal of systems in the US with growth. The biggest orientation are typical college services. any program is to increase the likelihood that struggle in enrollment is with working adults. Program costs could not be determined students return the next semester and eventually Senator Carroll asked if there has been an precisely because of missing information and attain a credential or transfer to a 4-year increase in partnerships with industry, including cost variations. Total costs were provided for 128 university. Retention alone is not an accurate more customized programs. Dr. Box said that programs. Eleven programs, mostly partnerships measure of a program’s effectiveness. Because all KCTCS has always tried to do this. In the past with other entities, were reported as having no nonacademic programs are designed to address several years, manufacturing has been an area of cost to the college. a particular problem, measuring a program’s focus. Now, there is an emphasis on health care, KCTCS college staff were asked how they success should be geared toward determining particularly the expansion of nursing programs. measure the success of each program. Mr. Spears whether it decreases the prevalence of that In response to a question from Senator indicated the percentage of programs using problem. Recommendation 2 of the report is that Carroll, Dr. Box said that much research is being specified measures of success. Usage measures the KCTCS System Office, and colleges should done on the effect of free college programs. The indicate the amount of service provided but not develop more accurate measures of nonacademic initial data from Tennessee is that enrollment whether services resulted in any changes for program success that focus on determining increases in the first year but not in the following the students. Usage was tracked by one-half of whether a program decreases the prevalence of years. It is still an open question as to how free programs and is the sole source of measurement the problem it was designed to address. college affects retention and getting a meaningful for 40 programs. It can be an appropriate measure Many factors can contribute to a student’s credential. KCTCS is tracking Work Ready when the college has difficulty tracking students. willingness or ability to return to school the next Kentucky success and can provide information Retention, which tracks whether a student semester. Better understanding the relationship on this. returns to the college in a later semester, can serve between a program’s effectiveness and retention Senator Wheeler asked why it is not as a stronger measure of success. Retention was would demonstrate the utility of individual mandatory for participants in programs to the second most common measure and was most programs and allow KCTCS to better manage complete surveys on nonacademic programs. Dr. common among multiple-barrier programs. its programs and resources. Recommendation Box said that this could be done and used with Attainment measures whether a student obtained 3 is that the KCTCS System Office should other data. The names of program participants a certificate, diploma, degree, or job. This is a study the relationship between programs that are sometimes unknown; he cited food pantries stronger measure because it shows whether a decrease nonacademic barriers, student success, as an example. program has improved a student’s future but and retention. Results should be shared with Representative Fugate noted his appreciation does not necessarily indicate the program caused the colleges so that they can improve existing of the two KCTCS schools in his district, Hazard the attainment. Attainment was used by about 30 programs and more effectively implement future and Southeast, for what they contribute to the percent of programs overall but was commonly programs. area. Dr. Box commended Hazard for its Tuesday used in multiple-barrier programs. Comparisons Responding to the report, Dr. Box said that Night Live program, which provides meals

THE KENTUCKY GENERAL ASSEMBLY 107 for parents and children and child care during Carroll, Dr. Box said that it would be a good per student. classes. idea to have early childhood education providers In response to a question from Senator In response to questions from Representative partner with community colleges to create spaces West, Dr. Box said that the amount of the Koenig, Dr. Box said that the annual investment for their students. across-the-board decreased in appropriations of state appropriations and tuition per student In response to questions from Senator was 6.25 percent of approximately $250 million is about $5,500 per year, which is about the Westerfield about funding, Dr. Box said that in [$15,625,000]. same level as in 2004. Expenses to provide the the 2018-2020 budget, KCTCS received $8.9 Senator Clark made a motion to adopt the education are much higher than that. The cost million in performance funding, but there staff report; Representative Palumbo seconded. to students is approximately $4,400 per year. was a 6.25 percent cut across all 16 colleges. The reportNonacademic Barriers Facing About 70 percent of students qualify for federal Performance funding went to nine colleges. Kentucky Community And Technical College financial aid; 55 percent get full financial aid. Performance funding goes directly to colleges, Students was adopted by roll call vote. Senator Carroll mentioned the West not the system office. Department of Revenue Audit Process Kentucky Community and Technical College In response to questions from Senator Mr. Bork said the tax system is voluntary Scholar House, which provides on-site housing Westerfield about compensation of employees, and the department’s compliance and audit and child care. He asked which other schools have Dr. Box said that salaries for entry-level staff are processes are built around this. The department these services. Dr. Box said that Bluegrass has an competitive. A compensation and classification has compliance programs for many tax types. agreement with the University of Kentucky for study completed 2 years ago compared KCTCS This presentation focuses on the individual some students to stay in dorms. Southcentral has to other institutions. A 3 phase plan went to the income tax, sales and use tax, and tangible an agreement with Western Kentucky University. Board of Regents. In Phase 1, minimum entry- property tax. He described desk and field He was unaware of other KCTCS schools with level salaries were implemented. The increase in audits. Desk audits focuses on obvious errors housing opportunities. Child care varies by these salaries created compression among other in tax statements, for example, when amounts school; most try to have arrangements with local salaries. Phase 2, which is to be recommended to on different tax documents do not match. The providers. the board for 2020-2021, would increase salaries department and the US Internal Revenue Service Senator Carroll said that West Kentucky for those who were compressed. Salaries are set (IRS) share information. The department mostly Community and Technical College has housing, system wide according to band levels: 15 for staff uses its own auditors. The exception is audits on child care on site, and 2 years free. This seems like and 5 for faculty. There has been no across-the- companies doing business in multiple states. In significant progress. He asked whether the return board raise in 3 to 4 years. All faculty and staff this case, the department uses audits done by the on investment is improving and what is available received a $1,000 supplemental, nonrecurring Multistate Tax Commission. Field auditors are in online. Dr. Box said that the level of success is payment this year. The money came from 10 service centers in the state. the highest ever. Kentucky is second in the US money left over in each college’s annual budget. Mr. King said that field audits are done in credentials awarded per capita and retention Leftover money stays with the college to serve as primarily on sales and use tax, tangible property is up. It is unclear to what this can be attributed. a rainy day fund. Two institutions did not have tax, corporate income tax, and individual There has been more emphasis on advising early, sufficient funds for all their $1,000 payments. income tax. He described the field audit and including dual credit in high schools. KCTCS The necessary funding was made through the taxpayer protest processes. Audits are primarily schools are investing money in personnel in system office reserve. This totaled $30,000 to on retailers, contractors, and manufacturers. The career navigators and coaches. However, as a $40,000, which the schools have to pay back. audit process is initiated by the audit selection result of budget cuts, student support staff have In response to questions from Senator and review team in Frankfort, which uses been reduced. Dr. Box said that KCTCS is the Westerfield, Dr. Box said that the Contract systematic criteria to narrow the returns that may largest provider of online education in Kentucky. Review Committee recommended a supplement be selected for audit. One of the referral sources There are about 18,000 online-only students, and deferred compensation for Dr. Box to the for audits is the Finance and Administration primarily older students who are working. There Board of Regents at its September meeting. Cabinet tip line. In addition to getting the tax are hybrid programs that combine on-campus At the request of Dr. Box, the board stopped assessment through an audit, a goal is to educate and online learning. its deliberations, so there was no change to the taxpayer. Most centers have 4 to 6 auditors; Senator Carroll commended West his compensation or contract. He said that he the largest centers have 8 to 14 auditors. Audits Kentucky Community and Technical College has told the board that his is satisfied with his may be conducted electronically or on site. After for its contribution to the region. He asked the $375,000 compensation package. Dr. Box said the audit has been completed and reviewed, the line should be drawn on free college. Students that if the board had approved an increase, he work papers are sent to the taxpayer. should have some personal investment in their would have used it toward an endowment for Mr. King described trends in the number education. Dr. Box said that does not favor a state students. His contract is a rolling 3-year contract of field auditors, audits, and assessments. The program for free community college because it that ends in 2021. number of auditors decreased from 115 in 2012 diminishes the value of education. In the current Senator Carroll asked whether Work Ready to 69 in 2018. The number of audits also declined system, opportunities for financial and other Scholarship funds are accounted for in the since its peak but has increased slightly in recent types of assistance are available through the discussion of funding cuts. Dr. Box said this years, even with fewer staff. The IRS audit rate is appropriate channels. is invested in students and was included in his about 1 percent. Kentucky’s best audit coverage In response to a question from Senator discussion of state funding and tuition revenue for a tax type does not approach 1 percent.

108 2019 Interim LEGISLATIVE RECORD Assessments are down since 2012. that for field audits, there is much back and forth state-operated area technology centers (ATCs) In response to a question from Senator communication with the taxpayer and extensive and 42 locally-operated centers (LAVECs) Carroll, Mr. Bork said that the decline in work papers accompany the letter. Regarding utilized by students across the Commonwealth. auditors and compliance staff affects the amount desk audits, Mr. Bork said that people may get Mr. Riley explained that funding has held steady of tax revenue. Each auditor on average brings in frustrated if they call the department and do over the last several years, but there are some $500,000 to $1 million in tax revenue. The decline not get an immediate response to questions. It is problems regarding compliance with statute and in the number of auditors is partly because of the hard to change the current formats for letters that regulation for career and technical education across-the-board funding cut but also because of are based on mainframe systems. When a new (CTE). There has been much legislative activity uncompetitive salaries. A new auditor’s salary is system is implemented, letters can be revised to on CTE recently, specifically the creation of a $39,000, which is less than in the private sector. be more user friendly. CTE task force which will present to the Interim Once hired, it is difficult to keep them. Mr. King Senator Carroll said that a business in his Joint Committee on Education prior to the next added that is hard to hire auditors in the first area was doing quarterly filings, which was Regular Session of the General Assembly. This place. changed to monthly. He asked if this is a new report will likely inform legislation and budget In response to Senator Carroll’s question as requirement. Mr. Bork said that whether filing allocation for CTE in the upcoming biennium. to whether contracting out for auditing has been is monthly, quarterly, or annual is reviewed According to administrative regulation considered, Mr. Bork said that there are statutory each year based on the amount of sales by the 705 KAR 3:141, there should be a minimum of issues. It is an option, but he does not favor it. business. five pathways offered at each CTE center and a In response to a question from Senator Senator Carroll asked that data be provided minimum of 180 students enrolled. Pathways Carroll, Mr. Bork and Mr. King said that there to him on the relationship between staffing and in many career fields are made available to is no overlap between their work and work revenue collections before the General Assembly students and include diverse industries such as done by the State Auditor. Senator Carroll asked considers the budget. manufacturing, engineering, and health related how difficult it would be for the Department of Senator Carroll announced that the next sectors. ATCs are located in 52 districts and serve Revenue to absorb the duties of the State Auditor. committee meeting is November 22. students from 72 districts. There are 42 LAVECs Mr. Bork said that this is not very feasible The meeting was adjourned at 9:54 AM. in 32 districts with three districts feeding into the because the rules to be followed are different. Fayette County LAVECs. These centers all receive The department would have to recreate what EDUCATION ASSESSMENT AND state funds. Additionally, comprehensive high the State Auditor already does, which would ACCOUNTABILITY REVIEW schools offer CTE, but these are not allocated not be efficient. Mr. King said that the State SUBCOMMITTEE CTE-specific funding from the state, rather they Auditor serves the important role as watchdog Minutes pay for expenses out of school level general fund for spending by agencies. The department’s focus September 17, 2019 appropriations. There are eight programs which is generating revenue that is due to the state. Call to Order and Roll Call have applied to be added to the LAVEC funding Senator Carroll said that Auditor Harmon does The meeting of the Education Assessment list, but KDE is not adding additional schools or a great job. and Accountability Review Subcommittee programs at this time. Representative Bechler asked about red was held on Tuesday, September 17, 2019, at Data for the report came from many sources flags from tax returns. Mr. King gave the 1:15 p.m., in Room 129 of the Capitol Annex. including district-level annual financial reports, example of documentation of sales tax and use Representative Brandon Reed, Chair, called the state grant allocation data, and OEA surveys tax that do not match. Another red flag is when meeting to order, and the secretary called the sent to superintendents and CTE principals. a taxpayer claims assets for an industry in which roll. KDE provided data on ATC expenditures, the taxpayer is not a participant. Present were: unduplicated CTE student counts, LAVEC In response to Representative Bechler’s Members: Representative Brandon Reed, funding allocations by category, and ten years question, Mr. King said that there is not extensive Co-Chair; Senators Alice Forgy Kerr, and Mike of total CTE funds. Mr. Riley illustrated that coverage of farming income. The focus is more Wilson; Representatives Tina Bojanowski, and the largest portion of funding for CTE comes on hobby farming. Regina Huff. from the general fund, with other funds coming Representative Bechler noted that the Guests: from restricted funds and federal funds. Holding presentation says that the result of a field audit is LRC Staff: Joshua Collins, Jo Carole Ellis, steady at approximately $80 million a year, there that the taxpayer pays, protests, or the bill is sent Yvette Perry, Lauren Busch, and Maurya Allen. was a nominal decrease of 4 percent from 2009 to to collections. He asked if a result is ever that Office of Education Accountability2018. However, inflation adjusted amounts show the taxpayer overpaid. Mr. King said that this Report: Revenues and Expenditures for Career that an additional $18 million would have been is correct and that a taxpayer getting a refund and Technical Education in Kentucky required in 2018 to meet the same purchasing should be listed as a possible outcome. Dr. Bart Liguori, Research Division power that was available in 2009. Senator Carroll said that one his constituents Manager, Office of Education Accountability, During the 2018 fiscal year, LAVECs were who was being audited complained that the and Chris Riley, Research Analyst, Office of allocated $11.8 million from the general fund letter he received had the statement that he owed Education Accountability were present to share and ATCs received $24.2 million. Additionally, a specified amount in red. He asked about the the OEA study regarding state-appropriated $17.4 million were allocated from SEEK funds to standard letter or form that is sent. Mr. King said revenues and expenditure allocations for the 53 ATCs. Other CTE specific funds were allocated

THE KENTUCKY GENERAL ASSEMBLY 109 to districts housing ATCs ($4.1 million) expenditures, but staff found that the allocations per-FTE and per-pupil. and to KCTCS ($1.4 million). Vocational do not match. There is significant variation Staff further compared the ATC with the transportation received $2.4 million from CTE among the ATCs and some use funds allocated highest per-FTE allocation program with the specific funds. Mr. Riley then presented an for building maintenance and retirement of debt lowest per-FTE program. Martin County ATC OEA recommendation that the School Facilities service, but some use SEEK funds for SBDM and was allocated more than $11,000 per-FTE Construction Commission (SFCC) should work other disallowed instructional expenses. This while Meade County ATC was allocated only in collaboration with the Kentucky Board of has resulted in several other recommendations, $4,100 per-FTE in 2018. Deeper analysis of this Education (KBE) and KDE to promulgate an including that KDE should comply with all difference found that Meade County has six administrative regulation that identifies the provisions of regulations for ATC funding or programs housed at their ATC that are funded methodology for equating the average daily that KBE should align regulation with current with district funds and the students in those attendance of ATCs with the average daily practice, and the General Assembly should programs are counted in the total FTE counts. attendance of other local school districts to include specific language directing KDE to Since CTE specific SEEK funds are allocated ensure that these centers receive a proper share allocate funds to secondary CTE programs at according to FTE counts, these inflated totals of the Kentucky Education Technology System KCTCS if they intend for KDE to continue that may result in greater allocation of SEEK funds to funding. allocation. the nine districts which have at least one locally In 2018, KDE allocated $24.2 million operated program housed at an ATC. Per student, LAVECs receive approximately to ATCs from their general funds, however, As referenced earlier, CTE teachers at $397 and ATCs receive approximately $2,033 these funds are not line-item allocations for ATCs are paid by KDE according to a set salary after the SEEK and general fund allocations ATCs. There is also no statutory or regulatory schedule and work at least 190 days per year. are combined, illustrating a significantly framework for distribution to ATCs. OEA LAVEC teachers are district employees subject disproportional allocation, even though LAVECs recommends that KBE promulgate regulations to home district salary and ranking schedules. spend as much or more than ATCs per student. concerning the distribution of funds to ATCs They are required to work at least 185 working There are also unfunded CTE schools and that address both general fund and SEEK days but not more than 187 days according to pathways as a result of a deficiency in funding allocations. Additionally, accounting errors were statute. An analysis of starting salaries found according to KDE. It is estimated that $1.3 discovered during staff review of district level that a majority of ATC teachers earn more million is needed for the previously referenced annual financial reports, many of which were than district-paid teachers, however, the same eight schools which have applied for LAVEC program coding errors. This masks the true costs comparison of teachers with 20 or more years funding. An additional $1.4 million is needed associated with delivering CTE. There were also of experience found that a majority of district- for full funding of currently unfunded pathways problems in federal reporting of CTE funding paid teachers earn more than ATC teachers in existing LAVECs, and $19.4 million is needed in Kentucky, including underreporting of CTE for all ranks. Staff analysis further discovered for 78 comprehensive high schools who are teacher counts by KDE and districts. Combined, that special education teachers were more not currently receiving state funds for CTE but these errors prevent comparison of expenditures likely to be employed at a stand-alone LAVEC could qualify for LAVEC funding under current across districts. OEA staff recommend that KDE than at an ATC. Additionally, CTE classrooms methodology. should review the chart of accounts and change cost more because of lower teacher-to-student Currently, KDE is not compliant with statute how ROTC, SBDM, and board expenditures ratios, higher cost of equipment needed for regarding funding amounts due to a flaw in the are captured so that all schools are reporting specialized pathways, and the fluctuating cost calculation. OEA recommendations stated that accurately. KDE should work with district of consumables. Many districts also struggle to KDE should fund new CTE programs at existing staff to ensure all CTE expenditures are coded keep their equipment up to date in comparison LAVECs in accordance with 705 KAR 2:140, sec. correctly on the annual financial reports as are to industry standards because of the high cost of 5(2) or the KBE should amend the regulation CTE teaching and administrative staff on the specialized equipment. to reflect current practices and the General staff data reports submitted to both KDE and the At the request of staff, KDE provided Assembly should revise KRS 157.069 regarding US Department of Education. estimations for new CTE program costs but there the LAVEC categorical funding formula to reflect Mr. Riley then shared a table illustrating was considerable variation in the total estimated the proper methodology of computing category the difference between funding for ATCs and cost across programs, from $100,000 up to 2 and category 3 LAVEC full-time equivalent LAVECs through comparison of the Southside $325,000. Most of the difference in these start-up (FTE) student counts. There is also a weighted Fayette County LAVEC and Madison County costs come from the higher cost of equipment for system for calculating LAVEC funding using ATC. The per-pupil allocation is significantly some programs over others. Finally, a majority FTE counts, and this system is within a statutory higher for the Fayette County LAVEC, with a of ATC facilities were built or last remodeled and regulatory framework. But KDE has large portion coming from local district general during the 1960s and 1970s. Some districts have acknowledged there is a mistake in the formula, funds. The Madison County ATC had a per-pupil newer facilities, but staff analysis found that 91 therefore they do not use it. KDE has developed allocation of $1,932 with 95 percent covered by districts report a need for either facility upgrades an internal formula but there is a semester state sources, whereas Fayette County LAVEC or entirely new buildings. The total unmet need “lag” in distribution of funding which is not in had a per-pupil allocation of $2,847 with only for CTE facilities was more than $394 million as compliance with the regulation or statute. The 32 percent coming from state funding sources. of February 2019. $17.4 million SEEK funding should also match There is a significant disparity in expenditures In conclusion, Mr. Riley said the total

110 2019 Interim LEGISLATIVE RECORD funding for CTE has remained steady but of Health Sciences, Professor, Department by the Department of Occupational Science and inflation indicates a significant loss of purchasing of Occupational Science and Occupational Occupational Therapy at EKU, that provides power. Also, state funding proportionally favors Therapy, Stephanie W. Adams, MSW CSW, socialization and specifically targeted therapeutic ATCs relative to LAVECs, with districts making Social Work Program Director, Department activities for persons diagnosed with Alzheimer’s up the difference using district-level funding. of Anthropology, Sociology and Social Work, or dementia. And there are widespread issues with compliance Eastern Kentucky University; Jay Box, Ed.D., Stephanie W. Adams, MSW, CSW, Social and transparency for existing CTE funding President, Kim Williams, System Director for Work Program Director, Department of structures making comparison between districts Allied Health and Nursing Programs, Brian Anthropology, Sociology and Social Work, difficult. Potential legislative action during the Perry, Legislative Liaison, Kentucky Community Eastern Kentucky University, stated that the upcoming Regular Session could set Kentucky and Technical College System; Gregory A. Jicha, EKU social work program has 420 students at on a different path going forward. M.D., Ph.D., Professor of Neurology, Robert the Richmond location and online pursuing Senator Kerr asked if KDE had a response T. & Nyles Y. McCowan Endowed Chair in a Bachelor of Social Work (BSW) degree. to the report. Chair Reed said the response Alzheimer’s Research, Alzheimer’s Disease Approximately 80 percent of EKU graduates had been provided to members electronically Center, College of Medicine, Keith Knapp, Ph.D., are employed and/or accepted into a Masters and was included in their meeting packets. The CNHA, CNA, Associate Professor, Department of Social Work (MSW) program within three response would also be available online with of Health Management & Policy, College of months of graduation. A significant number other meeting materials. Public Health, University of Kentucky; Josh of graduates remain in the region and work in Following the presentation and questions, Williams, Talent Pipeline System Leader; and fields including healthcare, aging, and disability Senator Wilson made a motion to accept the Bari Lewis, Director of Community Outreach, services. All BSW students must complete two report, seconded by Senator Kerr. The motion Alzheimer’s Association. practicums or internships before graduating. passed by voice vote. LRC Staff: Dana L. Simmons, Lead Staff, These programs give students an opportunity Approval of Minutes and Becky Lancaster. to work in a field of interest with a safety net. Senator Kerr made a motion to approve the Approval of the Minutes EKU is working with the Department for Aging minutes as written, seconded by Representative A motion to approve the minutes of the and Independent Living (DAIL) on a workforce Huff. The motion passed by voice vote. September 5, 2019 meeting was made by Mary development project. The project will place social Chair Reed announced that the next Romelfanger, seconded by Andrea Renfrow, and work practicum students in a DAIL provider meeting of the subcommittee will be on October approved by voice vote. agency and allow students to receive a stipend 17, 2019, at 1 p.m. in Annex Room 129. The Innovative solutions to recruit and retain of up to $8,500 for practicum hours. EKU offers topic will be teacher shortages. There being no professionals involved in providing care and gerontology certificates at the undergraduate further business to come before the committee, treatment to individuals with Alzheimer’s and and graduate level. the meeting adjourned at 1:50 p.m. dementia. Dr. McFaddin stated that EKU has been Eastern Kentucky University working with the Cabinet for Health and Family ALZHEIMER’S AND DEMENTIA Dr. David McFaddin, Senior Vice President Services (CHFS) and the Kentucky Housing WORKFORCE ASSESSMENT TASK for Operations, Eastern Kentucky University Cooperation (KHC) to provide a transitional type FORCE (EKU), stated that nearly 90 percent of EKU of care for individuals who are still ambulatory, Minutes of the 4th Meeting undergraduate students are Kentucky residents. have quality of life, and do not require a nursing of the 2019 Interim After graduation 75 percent of EKU degree home or medical facility. EKU is proposing October 3, 2019 holders are employed in Kentucky. Colleen M. an assisted living facility to be located on the Call to Order and Roll Call Schneck, ScD, OTR/L, FAOTA, Associate Dean, South campus with approximately 120 beds. The The 4th meeting of the Alzheimer’s and College of Health Sciences, Professor, Department facility would be a living laboratory space for Dementia Workforce Assessment Task Force was of Occupational Science and Occupational EKU students specializing in various fields. EKU held on Thursday, October 3, 2019, at 1:00 PM, in Therapy, Eastern Kentucky University, stated that is moving forward on the request for proposal Room 131 of the Capitol Annex. Representative in the fall of 2018, the College of Health Sciences (RFP) process and have a developer and operator Deanna Frazier, Chair, called the meeting to had 2,469 students enrolled in health majors. selected. A barrier for the project is the necessity order, and the secretary called the roll. There were approximately 1,012 graduates from to have a 1915(c) Home and Community Based Present were: the College of Health Sciences that included Services (HCBS) waiver. The waiver would allow Members: Senator Robby Mills, Co-Chair; 713 with a health major that may potentially Medicaid funds to pay for the room and board Representative Deanna Frazier, Co-Chair; work with the aging population in Kentucky. for the individual. EKU believes this project Senator Reginald Thomas; Representatives Three years after graduation 75 percent of would be a great opportunity for cost-savings for Danny Bentley and Lisa Willner; Steven Davis, graduates are employed in Kentucky with an Kentucky. Buddy Hoskinson, Mackenzie Longoria, Devon average salary of $51,130. EKU students have In response to questions and comments McFadden, Andrea Renfrow, Mary Romelfanger, the ability to take service learning courses that from Senator Mills, Ms. Adams stated that Philip Travis, Kelly Upchurch, and Denise Wells. relate to persons diagnosed with Alzheimer’s or she does not know the size of the class for the Guests: Dr. David McFaddin, Senior Vice dementia in programs such as The Place To Be. gerontology certificate. There is support for President for Operations, Colleen M. Schneck, The Place To Be is a half-day program offered the certificate program online but because the ScD, OTR/L, FAOTA, Associate Dean, College THE KENTUCKY GENERAL ASSEMBLY 111 graduate program is new the number of students social assistance industry sector. In response to questions and comments is not known. She stated that many students are Dr. Box stated that the KCTCS Allied from Mackenzie Longoria, Ms. Williams stated maximized at their position with an Associate Healthcare program coordinators, along with that in the programs relating to Alzheimer’s and degree. Students return to EKU to acquire a BSW college recruiters, spend time in high schools dementia care the students get a combination degree to allow for job promotion. Employers and with social organizations recruiting students of specific and broad-based training. All of the want to keep employees but some regulations into the field through educational opportunities. disease processes that effect the aging population are requiring employees to have a Bachelor Work Ready Kentucky Scholarships were will be taught to students. Dr. Box stated that degree. Dr. McFaddin stated that the assisted awarded to 623 students towards tuition leading to KCTCS just received the apprenticeship grant and living project would be a low income product. credentials in Healthcare in the 2018-2019 school is working on the program setup. Ms. Williams Residents would have to meet the threshold for year. KCTCS and the Kentucky Department of stated that there are three KCTCS colleges that low income to bring in the KHC funding. There Education have developed dual credit pathway are creating apprenticeships. KCTCS is working are many counties including and surrounding models for EMS paramedic, medical assisting, on a geriatric Medicaid nurse aide and a dementia Madison County that are distressed communities medical information technology, nursing, and specialist nurse aide apprenticeship. that could benefit from the program. pharmacy technology programs. KCTCS offers In response to questions and comments In response to questions and comments testing for students to qualify for prior learning from Mary Romelfanger, Ms. Williams stated that from Representative Wilner, Ms. Adams stated credits. KCTCS staff is working to increase and the Healthcare Facilities Leadership program is a that the Psychology Department is involved in expedite the attainment of state occupational two-year program that is geared towards creating the new assisted living project. All five certificate licenses by veterans. KCTCS offers online and administrators and unit managers for all types of programs related to the social work program accelerated programs to get individuals into facilities. KCTCS will speak to the Association of are involved in units across the whole school. the healthcare talent pipeline. Some KCTCS Healthcare Administrators about the derivation Dr. McFaddin stated that the new assisted living locations offer an accelerated Emergency Medical of the content for the Healthcare Facilities project created significant interest among other Services Technology (Paramedic) certificate that Leadership program. KCTCS would like to see programs on the EKU campus. can be completed in 12 months. KCTCS is ahead this program be taught throughout the state. In response to questions and comments of many states in how it meets healthcare talent In response to questions and comments from Philip Travis, Ms. Schneck stated that EKU pipeline needs. from Steven Davis, Ms. Williams stated that all is producing 400 to 500 registered nurses (RNs) In response to questions and comments nurse aides become certified in the Medicaid and nurse practitioners per year. Those graduates from Senator Mills, Dr. Box stated that Kentucky program to complete the certification. KCTCS is are covering a broad spectrum of jobs. Educational Excellence Scholarship (KEES) working on how to track the number of Medicaid Kentucky Community and Technical money cannot be used for dual credit hours. nurse aides employed in a nursing facility or a College System The dual credit scholarship pays for two classes long-term care setting. She anticipates that the Jay Box, Ed.D., President, Kentucky per semester. The Work Ready Kentucky apprenticeships for long-term care facilities Community and Technical College System scholarships allows for additional course work. will give students better insight into the scope (KCTCS), stated that KCTCS is a system of Students can partner KEES and the Work Ready of work. The apprenticeships will allow KCTCS 16 colleges with over 70 locations across the Kentucky scholarships together for additional faculty better oversight of the students work Commonwealth. KCTCS colleges provide course work. To achieve an Associates degree experience. She did not know how many nurse education towards supporting the healthcare while in high school, a student may have to pay aide students return or continue their education needs of Alzheimer’s and dementia patients. some tuition themselves. Students could earn a to become LPNs. All the students in the practical KCTCS offers 28 healthcare programs ranging one year certificate while in high school. and registered nursing programs take the nurse from nurse aide to emergency medical In response to questions and comments aide course. KCTCS works with the Department technician (EMT). In the 2018-2019 school from Philip Travis, Dr. Box stated that the need for Medicaid Services to update and monitor the year, KCTCS graduated 3,112 nursing assistants, for LPNs is driven by availability for employment. curriculum for the nurse aide training programs. 270 licensed practical nurses (LPNs), and 17 KCTCS never eliminates a program but suspends University of Kentucky recovery coaches. The programs that are directly the program. A suspended program can be Gregory A. Jicha, M.D., Ph.D., Professor related to Alzheimer’s and Dementia care are reopened if the need arises for the program. Kim of Neurology, Robert T. & Nyles Y. McCowan psychiatric mental health technician, aging Williams, System Director for Allied Health and Endowed Chair in Alzheimer’s Research, services, direct support work, and client service Nursing Programs, Kentucky Community and Alzheimer’s Disease Center, College of Medicine, coordinator. The total number of graduates from Technical College System, stated that 13 of the University of Kentucky, stated that in 1972, the KCTCS healthcare sector in the 2018-2019 16 KCTCS colleges offer the practical nursing funding was obtained for the construction of school year was 6,130. The Medicaid nurse aide program at multiple campuses. She stated that the current Sanders-Brown Research Building certifications may be earned as a high school is difficult to find nursing faculty but when the and a program in biomedical research was senior, at a college level, or through a nursing need arises there will be nurses to come forward implemented within the University of Kentucky home. KCTCS nursing graduates can take the to fill the vacant faculty roles. Dr. Box stated that Chandler Medical Center. Keith Knapp, Ph.D., national certification exam and go to work as a the biggest challenge is satisfying faculty needs CNHA, CNA, Associate Professor, Department RN in two years. Approximately 17,355 graduates in the Associate degree nursing program because of Health Management & Policy, College of of KCTCS were employed in healthcare and the a higher degree is required to teach at that level. Public Health, University of Kentucky, stated that

112 2019 Interim LEGISLATIVE RECORD the nursing program is for acute inpatient care, employers and employees. and industry have to drive the discussion. The not for community dwelling persons or daily Dr. Jicha stated that the hub and spoke Talent Pipeline Model (TPM) was developed life care issues. Dr. Jicha stated that the Sanders- training model was based off of successful by the United States Chamber of Commerce Brown Center On Aging (SBCOA) includes the Indiana program where there was a central Foundation. The secret to workforce development Alzheimer’s Disease Center (ADC). The ADC Alzheimer’s disease center or a hub that excelled is in industry leadership. The supply chain model provides graduate and undergraduate training in research and clinical care provision. The provides a framework for employers to come in neurology, psychiatry, social work, and model is designed to allow training in disparate together to address shared workforce challenges. gerontology. The National Institutes of Health areas so that each local spoke would become a He described a six step strategy for employers (NIH) training focuses on training researchers hub to reach more areas. The ECHO Model™ to transfer the relationship with educational not clinicians. He stated that to address the connects groups of community providers with workforce partners to be performance driven. Alzheimer’s and dementia workforce issue specialists at centers of excellence in regular Employers and educators are coming together to Kentucky should bring in leaders from elsewhere real-time collaborative sessions. Dr. Knapp co-engineer solutions while understanding what to help create innovative solutions and develop stated that an action item is the Kentucky key performance indicators are necessary. programs targeting the existing workforce to Alzheimer’s workforce development plan that Mr. Williams stated that the talent pipeline reinforce skills used in caring for patients with will have a 2020 update. Another action item is is divided into four regions with each project all types of dementia. to elevate and drive training expectations for the manager creating and coordinating collaborative Dr. Jicha stated that over 2000 people have Pepper Center. Kentucky should also incentivize work within Kentucky’s five key sectors taken the web-based course, Telemedicine based recruitment, retention, and distribution. He including healthcare. There are approximately 20 Assessment of Cognition in Kentucky (TACK). stated that every field of medicine is touched collaboratives engaging nearly 160 employers in Forty-one percent of the program participants by the shadow of dementia and Kentucky needs all five of our key sectors. He shared a graph that are nurses. The Kentucky Enduring Education a broad based policy to ensure the basics are depicted how many nursing positions will be Network for Collaborative Dementia Care understood and retrained in every provider in created due to new positions created, retirements, (KEEN-CDC) had 400 trainees with oversight the state. and voluntary or involuntary turnover over the by the Office of the Inspector General. The In response to questions and comments next two years within each specialty. He stated University of Kentucky is working in four areas from Buddy Hoskinson, Dr. Jicha stated that the that the critical care RN group would have a 93 for innovative solutions: (1) development of KCTCS is a great infrastructure to implement percent voluntary or involuntary turnover rate. a NIH-funded Pepper Center for Training in the hub and spoke model for training. The operating room and procedural RN group Aging and Dementia; (2) focus on recruitment In response to questions and comments would have a 31 percent retirement turnover and retention; (3) the hub and spoke training from Mackenzie Longoria, Dr. Jicha stated that rate and the skilled nursing and rehabilitation model; and (4) the Extension for Community there is a financial disincentive to becoming RN group would have a 52 percent new position Healthcare Outcomes (ECHO) project. The a gerontologist and that may change as there demand rate. He stated that six of the eight Pepper Center is designed to address the needs is talk nationally to move to a value-based surveyed schools did not graduate the maximum of the aging population. The Beeson Career care reimbursement system. The care of those number of RN students from the school. The Training Grants would bring in millions of involved in geriatrics and dementia is value- largest barriers for educators increasing program dollars a year to Kentucky for training the based but not reimbursed well in the system. Dr. capacity are: (1) lack of qualified faculty and workforce. Knapp stated that the reimbursement systems clinical instructors; (2) scarcity of clinical Dr. Knapp stated that recruitment in are produced as a hybrid from manufacturing rotation sites; (3) increased number of students careers that support families who have a loved where productivity means high volume not high and costs; and (4) student retention. one with Alzheimer’s or dementia is necessary. touch. Mr. Williams stated that the demand Transportation assistance is a key barrier for In response to questions and comments projection breakdowns are based on new, people who want to access programs located at from Mary Romelfanger, Dr. Jicha stated that in retirement, and voluntary positions. Over the the University of Kentucky. Online programs the field of dementia the doctors do know one next two years, there are 249 RNs projected is helping with access to programs. Kentucky another. He believes that Kentucky can have a to retire. The workforce is working to see if could leverage online access in public libraries Pepper Center built at the University of Kentucky those RN retirees could become teaching and schools that would not create a large capital alone or in conjunction with the Institute for faculty for nursing programs. The Kentucky investment by state government. The recruitment Sustainable Health and Optimal Aging at the Chamber Workforce Center has eight healthcare for workers in non-traditional audiences such University of Louisville. collaboratives that are up and running across as Veterans is important to grow the healthcare Kentucky Chamber Workforce Center Kentucky. In the Maysville area, 74 percent of workforce. Kentucky should also consider Josh Williams, Talent Pipeline System the RNs are coming from the local community recruiting family and informal caregivers such Leader, Kentucky Chamber Workforce Center, technical college. The Maysville Community as clergy and neighbors to enter or assist the stated that the Kentucky Chamber Workforce and Technical College is producing an average healthcare workforce. He stated that in order Center’s role is to service a resource for all of 41 RNs a year, which more than doubles the to retain staff there are incentives such as care businesses across the state in all things education two-year demand. The Kentucky Chamber “enterprise zones” that work towards student and workforce related. To address the workforce Workforce Center has found that the need is loan forgiveness, scholarships, and tax credits for challenges that Kentucky is facing employers completely different; the community is not

THE KENTUCKY GENERAL ASSEMBLY 113 building capacity. The students are graduating to consider as reviewed the Personal Service FACILITIES & SUPPORT SERVICES and then leaving the area. The solution is to Contract List, with exception of those items Patrick D. Murphy Company, Inc., work to retain the graduates in the area and to selected for further review by members of 2000000175; Riverine Systems, LLC, 2000000378. develop a model so that the people in the entry the committee. Senator Carroll seconded the KENTUCKY FISH AND WILDLIFE level positions that are rooted in the community, motion, which passed without objection. RESOURCES can work to advance in those positions. A motion was made by Representative Lee Haworth Meyer Boleyn, Inc., 2000000120. In response to questions and comments to consider as reviewed the Personal Service KENTUCKY LOTTERY CORPORATION from Representative Bentley, Mr. Williams stated Contract Amendment List, with exception Bandy Carroll Hellige, 20-16-044-1. that the abundance of nurse practitioners does of those items selected for further review by KENTUCKY RETIREMENT SYSTEMS not mess up the statistics regarding RNs, but it members of the committee. Senator Carroll Manatt Phelps Phillips, LLP, 1900004288; does provide an interesting perspective as to why seconded the motion, which passed without Michael McClain, PLLC, 1900004814. there are so many when the needs are in other objection. KENTUCKY STATE POLICE areas. A motion was made by Representative Jason McCowan, 2000000559; Benjamin Adjournment Lee to consider as reviewed the Memoranda of Wilcott, 2000000597. There being no further business, the meeting Agreement List, with exception of those items KENTUCKY STATE UNIVERSITY was adjourned at 3:06 PM. selected for further review by members of Alliance Medical & Home Care, 20-27. the committee. Senator Carroll seconded the NORTHERN KENTUCKY UNIVERSITY GOVERNMENT CONTRACT motion, which passed without objection. Under Score Branding, 2020-103; Vitamin REVIEW COMMITTEE A motion was made by Representative Collective, LLC, 2020-104; Thompson Hine, Committee Minutes Lee to consider as reviewed the Memoranda of LLP, 2020-105; Brubaker & Associates, Inc., October 10, 2019 Agreement Amendment List, with exception 2020-106. Call to Order and Roll Call of those items selected for further review by TRANSPORTATION - OFFICE OF THE The Government Contract Reviewmembers of the committee. Senator Carroll SECRETARY Committee met on Thursday, October 10, 2019, seconded the motion, which passed without Crowe, LLP, 2000000564. at 10:00 AM, in Room 131 of the Capitol Annex. objection. UNIVERSITY OF KENTUCKY Senator Stephen Meredith, Chair, called the A motion was made by Representative Lee Ekhoff, Ochenkoski, Polk Architects, meeting to order, and the secretary called the to consider as reviewed the Correction List. A201080; JRA Architects, A201120; Lord, Aeck, roll. Senator Carroll seconded the motion, which & Sargent, Inc., A201130; Omni Architects, Present were: passed without objection. A201140; Buffkin Baker, LLC, K20-128; Members: Senator Stephen Meredith, THE FOLLOWING PERSONAL Smith Management Group, K20-129; Smith Co-Chair; Representative Stan Lee, Co-Chair; SERVICE CONTRACTS WERE REVIEWED Management Group, K20-130; Trimeric Senators Julian M. Carroll, and Phillip Wheeler; WITHOUT OBJECTION: Corporation, K20-131; HealthCare Appraisers, Representatives Charles Booker, Chris Fugate, AUDITOR OF PUBLIC ACCOUNTS Inc., K20-132. and Mark Hart. Patrick & Associates, LLC, 2000000543; UNIVERSITY OF LOUISVILLE Guests: Kerrie Dehorty, Deaidra Douglas, Tichenor and Associates, 2000000544. Sannam S4, Inc., 20-024; Huron Consulting Stan Salyards, Ethan Witt, Dana Fohl, Bryan DEPARTMENT FOR INCOME SUPPORT Services, LLC, 20-026; HBSA, Inc., 20-027. Makinen, Tony Dunbar, Jay Hall, Melissa Brewer, John Francis Norton, 2000000243; Aletia WESTERN KENTUCKY UNIVERSITY Evan Jones, Tonya Peters, Ray Gillaspie, David Gayle Farmer, 2000000251. Premier Parking Services, LLC, 192023; Schuermer, Genevieve Brown, Tom Stratton, DEPARTMENT OF EDUCATION Crowe, LLP, 192025. Heather Wagers, Stacy Woodrum, Ashley Metametrics, Inc., 2000000359. THE FOLLOWING PERSONAL SERVICE Hooker, Charles Harman, Tara Rodriguez, Karla DEPARTMENT OF HIGHWAYS AMENDMENTS WERE REVIEWED Tipton, and Lea Ann Lewis. HMB Engineers, Inc., 2000000520; HDR WITHOUT OBJECTION: LRC Staff: Kim Eisner and Kim Smith. Engineering, Inc., 2000000569; Aecom Technical BEHAVIORAL HEALTH, A motion was made by Representative Services, Inc., 2000000571; HDR Engineering, DEVELOPMENTAL & INTELLECTUAL Fugate to approve Minutes of the September Inc., 2000000579; RHA, LLC, 2000000583; DISABILITIES 2019, meeting of the committee. Senator American Engineers, Inc., 2000000647; Aecom Sources of Strength, Inc., 1800002008. Wheeler seconded the motion, which passed Technical Services, Inc., 2000000649; WSP BOARD OF EXAMINERS OF SOCIAL without objection. USA, Inc., 2000000651; Kimley-Horn and WORK SEPTEMBER DEFERRED ITEM: Associates, Inc., 2000000652; Burgess and Scanlan Associates, LLC, 1800002292. WESTERN KENTUCKY UNIVERSITY Niple, Inc., 2000000690; HDR Engineering, Inc., DEPARTMENT OF EDUCATION Signet, 192022. A motion was made Senator 2000000691. CN Resource, LLC, 1900000532. Carroll to consider the contract as reviewed. DEPARTMENT OF JUVENILE JUSTICE DEPARTMENT OF HIGHWAYS Representative Booker seconded the motion, C-Tech Associates, Inc., 2000000284. Michael Baker Jr., Inc., 0700004078; which passed without objection. EASTERN KENTUCKY UNIVERSITY Vaughn & Melton Consulting Engineers A motion was made by Representative Lee Trek Advancement, LLC, 20-284. Kentucky, Inc., 1400000764; QK4, 1500002151;

114 2019 Interim LEGISLATIVE RECORD Aecom Technical Services, Inc., 1700002656; City of Paducah, 2000000276; Union County 2000000432; Kentucky Association of Chiefs of Integrated Engineering, 1700002665; Palmer Fiscal Court, 2000000285; Mason County Fiscal Police, 2000000433; Kentucky Association of Engineering Company, 1800000406; J.M. Court, 2000000489; McCreary County Fiscal Chiefs of Police, 2000000434; Norton Hospital, Crawford & Associates, Inc., 1800000447; Court, 2000000490; Madison County Fiscal Inc., 2000000446; Norton Hospital, Inc., American Engineers, Inc., 1800001152; QK4, Court, 2000000545; Shelby County Fiscal Court, 2000000447. Inc., 1800001478; Stantec Consulting Services, 2000000573. THE FOLLOWING MEMORANDA Inc., 1800001566; HMB Engineers, Inc., DEPARTMENT FOR MEDICAID OF AGREEMENT AMENDMENTS WERE 2000000522; HMB Engineers, Inc., 2000000523; SERVICES REVIEWED WITHOUT OBJECTION: HMB Engineers, Inc., 2000000526. Department of Juvenile Justice, 1900004867. ADMINISTRATIVE OFFICE OF THE DEPARTMENT OF MILITARY AFFAIRS DEPARTMENT FOR NATURAL COURTS 1 Asterisk Safety Consultants, LLC, RESOURCES Morehead State University, 1600000957; 1900003130. Multi, 2000000035. Morehead State University, 1600000958; FACILITIES & SUPPORT SERVICES DEPARTMENT FOR PUBLIC HEALTH Morehead State University, 1600000959; CMW, Inc., 1000000976; Greg Best Kentucky Public Health Institute, Morehead State University, 1600000961; Northkey Consulting, Inc., 1700001729; Third Rock 2000000405. Community Care, 1600001042; Pennyroyal Consultants, LLC, 1900002766. DEPARTMENT FOR WORKFORCE Mental Health, 1600001044; Mountain Comp KENTUCKY LOTTERY CORPORATION INVESTMENT Care Center, 1600001045; Kentucky River IGT Global Solutions Corporation f/k/a Connected Nation, Inc., 2000000299; Community Care, Inc., 1600001047; Morehead GTECH Corporation, 20-10-001. Kentucky Association for Environmental State University, 1600001048; Morehead State KY COMMUNITY TECHNICAL Education, 2000000427. University, 1700001012; Morehead State COLLEGE SYSTEM DEPARTMENT OF AGRICULTURE University, 1700001013; Morehead State Walther, Gay & Mack, PLC, 762. University of Kentucky Research University, 1700001014; Morehead State UNIVERSITY OF KENTUCKY Foundation, 2000000254. University, 1700001015; Morehead State Omni Architects, A191120; Marshall DEPARTMENT OF EDUCATION University, 1700001017; Morehead State Medical Management, LLC, K19-195. Kentucky Higher Education Assistance University, 1700001019; Pennyroyal Mental WESTERN KENTUCKY UNIVERSITY Authority, 1900004031; Collaborative for Health, 1700001118; Pennyroyal Mental Health, Jackson Lewis P.C., 182025. Teaching, 1900004528; Bluegrass Community 1700001120; Kentucky River Community Care, THE FOLLOWING MEMORANDA and Technical College, 1900004759; University Inc., 1700001121; Hope Center, 1700001122; OF AGREEMENTS WERE REVIEWED of Louisville Research Foundation, 2000000398; Lifeskills Corporation Offices, 1700001123; WITHOUT OBJECTION: University of Kentucky Research Foundation, Chrysalis House, Inc., 1700001127; Bluegrass ADMINISTRATIVE OFFICE OF THE 2000000419; University of Kentucky Research Prevention Center, 1700001128; Western COURTS Foundation, 2000000444; University of Kentucky Kentucky Regional Mental Health & Retardation Chrysalis House, Inc., 2000000663; Hope Research Foundation, 2000000445; Anderson Advisory Board, 170001126; Morehead State Center, 2000000664; Morehead State University, County Board of Education, 2000000484; University, 1800001090; Bluegrass Prevention 2000000665. Ashland Board of Education, 2000000485; Berea Center Regional MH-MR Board, Inc., BEHAVIORAL HEALTH, Independent Board of Education, 2000000486; 1800001094; Chrysalis House, Inc., 1800001095; DEVELOPMENTAL & INTELLECTUAL Calloway County Board of Education, Eastern Kentucky University, 1800001794; DISABILITIES 2000000487; University of Kentucky Research Pennyroyal Regional Mental Health Mental Centerstone of Kentucky, Inc., 2000000622. Foundation, 2000000498; KET Foundation, Retardation Board, 1900004749. CHFS - DEPARTMENT FOR AGING AND 2000000506; Boyle County Board of Education, BEHAVIORAL HEALTH, INDEPENDENT LIVING 2000000517; Fayette County Board of Education, DEVELOPMENTAL & INTELLECTUAL Multi, 2000000094. 2000000546. DISABILITIES COMMISSION FOR CHILDREN WITH KENTUCKY STATE POLICE University of Kentucky Research SPECIAL HEALTH CARE NEEDS Kentucky Medical Services Foundation, Foundation, 1700002889; Centerstone of Cerebral Palsy Kids Center, 2000000163. Inc., 1900004789. Kentucky, Inc., 1800000550; People Advocating DEPARTMENT FOR COMMUNITY OFFICE OF ENERGY POLICY Recovery, 1800001981; University of Kentucky BASED SERVICES Cedar West, Inc., 2000000283. Research Foundation, 1800002012; Hazelden Community Action Lexington-Fayette TRANSPORTATION - OFFICE OF THE Betty Ford Foundation, 1800002031; Department County, 1900004943; Childrens’ Home of SECRETARY of Corrections, 1900000520; Appalachian Northern Kentucky, 2000000399; Center for Kentucky Association of Chiefs of Police, Regional Healthcare, Inc., 1900002524; Justice Employment Opportunities, Inc., 2000000420. 2000000428; Kentucky Association of Chiefs Cabinet, 1900002983; CHFS Department for DEPARTMENT FOR LOCAL of Police, 2000000429; Kentucky Association Community Based Services, 1900003175; GOVERNMENT of Chiefs of Police, 2000000430; Kentucky University of Kentucky Research Foundation, Knott County Fiscal Court, 1900003856; Association of Chiefs of Police, 2000000431; 1900003238; Kentucky Hospital Research & Henderson County Fiscal Court, 1900004991; Kentucky Association of Chiefs of Police, Education Foundation, 1900003411; Kentucky

THE KENTUCKY GENERAL ASSEMBLY 115 Primary Care Association, Inc., 1900003728; passed. & Retardation Advisory Board, 1900004710. C.E. Mendez Foundation, Inc., 1900003845. EASTERN KENTUCKY UNIVERSITY Ashley Hooker discussed the contract with the COUNCIL ON POSTSECONDARY Tetra Tech, Inc., 20-269; Wyatt, Tarrant & committee. A motion was made by Senator EDUCATION Combs, LLP, 20-278. Ethan Witt, Dana Fohl, Carroll to consider the contract as reviewed. Collaborative for Teaching, 1900003432. and Bryan Makinen discussed the contracts Representative Fugate seconded the motion, DEPARTMENT FOR COMMUNITY with the committee. A motion was made by which passed. BASED SERVICES Representative Hart to consider the contracts DEPARTMENT OF EDUCATION Kentucky Housing Corporation, as reviewed. Representative Lee seconded the Education and Workforce Development, 1800001949; Kentucky Association of Sexual motion, which passed. 1900004233; Campbellsville Independent School Assault Programs, 1800001967; Kentucky FACILITIES & SUPPORT SERVICES District, 2000000207. Charles Harman, Lea Ann Housing Corporation, 1900003852; Community Logsdon Auction Group, LLC, 2000000470. Lewis, an Karla Tipton discussed the contracts Action Kentucky, Inc., 1900003964. Tony Dunbar discussed the contract with with the committee. A motion was made by DEPARTMENT FOR LOCAL the committee. A motion was made by Representative Lee to consider the contracts as GOVERNMENT Representative Lee to consider the contract as reviewed. Senator Carroll seconded the motion, Floyd County Fiscal Court, 1900003118; reviewed. Representative Fugate seconded the which passed. Elliott County, 1900004757. motion, which passed. DEPARTMENT OF EDUCATION DEPARTMENT FOR MEDICAID KY COMMUNITY TECHNICAL Bullitt County Board of Education, SERVICES COLLEGE SYSTEM 2000000471; Campbell County Board of Cabinet for Workforce Development, Horizon Group International, 780. Tonya Education, 2000000472; Covington Independent 1800001088; University of Kentucky Research Peters, Ray Gillaspie, and David Schuermer School District, 2000000473; Dayton Foundation, 1800001768; University of Kentucky discussed the contract with the committee. A Independent School District, 2000000474; Research Foundation, 1900002839. motion was made by Senator Carroll to consider Eminence Independent Board of Education, DEPARTMENT FOR PUBLIC HEALTH the contract as reviewed. Representative Hart 2000000475; Harlan County Board of Education, Kentucky Hospital Research & Education seconded the motion, which passed. 2000000476; Jefferson County Board of Foundation, 1800001682; Juniper Health, TOURISM - OFFICE OF THE SECRETARY Education, 2000000477; Jessamine County Board 1900001897; Family Health Centers, Inc., Lofthouse Enterprises, 2000000492. Jay of Education, 2000000478; Letcher County Board 1900002478; Multi, 1900004002; Multi, Hall, Melissa Brewer, and Evan Jones discussed of Education, 2000000479; Newport Independent 1900004003. the contract with the committee. A motion was School District, 2000000480; Pike County Board DEPARTMENT FOR WORKFORCE made by Representative Hart to consider the of Education, 2000000481; Webster County INVESTMENT contract as reviewed. Representative Fugate Board of Education, 2000000482; Whitley American Institutes for Research, seconded the motion, which passed. County Board of Education, 2000000483. 1900004373. THE FOLLOWING PERSONAL Charles Harman and Tara Rodriguez discussed DEPARTMENT OF AGRICULTURE SERVICE AMENDMENTS WERE SELECTED the contracts with the committee. A motion Dare To Care, Inc., 1900000055; Multi, FOR FURTHER REVIEW: was made by Representative Lee to consider the 1900003210; Multi, 1900003211; Northern DEPARTMENT FOR MEDICAID contracts as reviewed. Representative Fugate Kentucky Area Development District, SERVICES seconded the motion, which passed. 1900003662; Feeding America, Kentucky’s Wakely Consulting Group, 1800001667. EXEMPTION REQUEST: Heartland, 1900003664; Gods Pantry Food Bank, Genevieve Brown and Tom Stratton discussed CABINET FOR HEALTH AND FAMILY Inc., 1900003666; Purchase Area Development the contract with the committee. A motion was SERVICES: District, Inc., 1900003667; Dare To Care, Inc., made by Senator Carroll to consider the contract The Division of Procurement and Grant 1900003668. as reviewed. Representative Lee seconded the Oversight, on behalf of The Department of THE FOLLOWING PERSONAL motion, which passed. Community Based Services requested an SERVICE CONTRACTS WERE SELECTED DEPARTMENT OF CORRECTIONS exemption from Committee Policy Statement FOR FURTHER REVIEW: KPMG, LLP, 1900002851. Heather Wagers 99-4, which prohibits contracts and agreements DEPARTMENT OF CRIMINAL JUSTICE and Stacy Woodrum discussed the contract with from extending beyond biennium for an MOA TRAINING the committee. A motion was made by Senator with God’s Pantry Outreach. A motion was Woosley Counseling, Inc., 1900004949; Carroll to consider the contract as reviewed. made by Representative Lee to grant the request Thin Line Counseling and Consulting, LLC, Representative Hart seconded the motion, which to September 30, 2020. Representative Hart 1900004950; Angela Michelle Childers, passed. seconded the motion, which passed without Professional Service Corporation, 1900004951. THE FOLLOWING MEMORANDA objection. Kerrie Doherty, Deaidra Douglas, and Stan OF AGREEMENTS WERE SELECTED FOR There being no further business, the meeting Salyards discussed the contracts with the FURTHER REVIEW: adjourned at 11:40 AM. committee. A motion was made by Representative ADMINISTRATIVE OFFICE OF THE Hart to consider the contracts as reviewed. COURTS Representative Lee seconded the motion, which Western Kentucky Regional Mental Health

116 2019 Interim LEGISLATIVE RECORD KENTUCKY CAREER AND regional approaches, joint governances, and the would qualify for funding and including local TECHNICAL EDUCATION TASK sharing of resources including partnerships with business and industry in the funding model. This FORCE postsecondary institutions. KDE has utilized the would allow KDE a process to replace programs Minutes of the 5th Meeting New Skills for Youth (NSFY) program, inter- that are no longer beneficial for a particular of the 2019 Interim local agreements, fund sharing, and district and district or move them to an area with a greater October 2, 2019 local leadership partnerships. need. Call to Order and Roll Call Moving from five methods of funding to one KDE is working on language to correct The 5th meeting of the Kentucky Career system is critical. Based on KDE’s calculations, the existing funding formula conflict between and Technical Education Task Force was held Dr. Horseman estimated $3 million would cover statute and regulation. on Wednesday, October 2, 2019, at 10:00 AM, in the unfunded programs and centers. KDE’s recommendation includes Room 129 of the Capitol Annex. Senator Mike Referring to the KDE OCTEST transferring ATCs that agree to local operation. Wilson, Chair, called the meeting to order, and Superintendent Survey for Local ATC Dr. Horseman said if all funding is distributed the secretary called the roll. Management, Dr. Horseman said it is important evenly between LAVECs and ATCs, the full- Present were: David Horseman, Assistant to understand, determine, and identify districts time equivalent (FTE) amount would be Commissioner, Kentucky Department of willing and able to operate their own centers. $3500. Support for supply needs and increasing Education (KDE). Of the 11 single-feeder Area Technology Center operational costs for district buildings comes Members: Senator Mike Wilson, Co-Chair; (ATC) respondents, six districts stated they from the current 20 percent SEEK funding. Dr. Representative Bobby McCool, Co-Chair; would be willing to assume management of Horseman said KDE has seen success with a Senators David P. Givens, Jimmy Higdon, and their state-operated ATC, with the condition dozen ATCs who contracted with local district Johnny Ray Turner; Representatives Kevin D. that current funding, increased funding, or principals to operate the centers. The principals Bratcher, C. Ed Massey, and Reginald Meeks; adequate funding is provided. The remaining are on loan from the district and KDE contracts and Steven Thomas. five districts indicated they would not want to provide most of the districts a flat-rate, entry- LRC Staff: Jo Carole Ellis, Yvette Perry, assume management of their state-operated level salary for the positions. Districts provide Lauren Busch, Seth Dawson, Chuck Truesdell, ATC, voicing funding as the underlying reason the retirement and additional salary and benefit and Christal White. or concern. Of the 27 multiple-feeder districts expenses. With approximately 65 percent of the Approval of Minutes – September 11, 2019 that completed the survey, 12 superintendents funding provided in this model, each district On a motion by Senator Turner and a second indicated they would consider assuming total would provide $200,000. Understandably, this by Representative Bratcher, the minutes of the control of ATCs as long as adequate funding is amount is more manageable in multiple-feeder September 11, 2019, meeting were adopted. made available. All 12 districts expressed a need districts than single-feeder districts. Recap of Task Force Testimony of assurance that currently participating districts Dr. Horseman said that using the formula Senator Wilson provided a summary of would still have access through either a similar provided in KRS 156.844 to transition an ATC the Kentucky Career and Technical Education system or through inter-local agreements and to local operation would provide $200,000 (KCTE) Task Force meetings, including an contracts. The remaining 15 superintendents for LAVECs. He said phasing in eight to 10 overview of Kentucky’s Career and Technical said they were open to considering a shared districts could provide $1 million to $1.5 million Education (CTE) system, an overview of CTE governance with current participating districts to LAVECs who have received no additional funding, and the study of CTE systems in other or a regional governance structure. Specifically, funding over the last 10 years. As other districts states. The specific objectives addressed by the two respondents stated a preference in structures are phased in over a five- to ten-year period, task force included inequity to access, inequity currently being built through Kentucky’s NSFY districts would have time to decide whether in the funding of various centers, and inequity in regional career academy approach. Although to operate on their own. Dr. Horseman said pay structures. an error in the survey did not allow multiple- any statutory changes should require inter- Discussion of Strategies for the Future of feeder districts to answer “no” as to whether they local agreements for LAVECs to achieve equity Kentucky’s Career and Technical Education would like to assume management of their state- and access. He said the phased-in approach is System operated ATC, the feedback was abundantly suggested as a cautious approach to address any Dr. Horseman discussed KDE’s clear that lack of adequate funding would be a changes in a manner as to not disturb the success recommendations and strategies for the future major deterrent. in other centers. of Kentucky’s CTE system. He said the worst Dr. Horseman said KDE recommended In response to a question from Senator disparities within the CTE system include providing funding for currently unfunded Wilson, Dr. Horseman explained FTEs are the funding structure and providing equal programs that are part of the Local Area calculated by multiplying the number of students opportunities for students. Due to demographic Vocational Education Centers (LAVECs). by the number of hours per day a student attends and geographic differences throughout the state, Another KDE recommendation is to establish and dividing that amount by 6, the number of the overall structure of CTE funding should relate policies and procedures for requesting, approving, periods in a day. to economic development, workforce boards, and and closing programs within centers. KDE wants Responding to a question from Senator regional workforce needs coupled with a positive to be included in the structural conversation for Higdon, Dr. Horseman said over the years education alignment. Dr. Horseman said the establishing new LAVECs similar to the process five or six ATC centers have converted to overall vision includes cooperative centers with with ATCs, offering approval for programs that LAVECs. In response to a follow-up question,

THE KENTUCKY GENERAL ASSEMBLY 117 Dr. Horseman said the language states that 100 Senator Givens recommended the task Manufacturers to determine what certifications percent of the funds would go to the district for force provide a finalized work product in the are valuable based on regional needs. He said a year and then be deposited into the LAVEC form of a review of discovery, a solution, and Kentucky’s involvement with business and reserve, and all LAVECs would draw from those draft legislation that can be amended as changes industry is recognized nationally. funds. Responding to a follow-up question, Dr. are suggested. He said the guiding principles Senator Givens said Perkins money Horseman said becoming a district employee should be what is best for teachers, students, and requires performance and quality measures. Dr. during the first year does not grant continuing taxpayers but the competing interests and loss of Horseman said the performance-based indicator status. State ATC employees fall under KRS 156 money for ATCs if LAVEC models are added to KDE will be using moving forward will be based while district employees are under KRS 161. the FTE equation will be a difficult decision. on industry-recognized credentials. Under KRS 156, the interpretation by KDE Dr. Horseman said a continuous- Senator Givens charged the co-chairs to is that a job change from district to district improvement model used for accountability in create a bill draft to create conversation regarding creates a one-year probation status without ATCs and CTCs evaluates data for industry- questions. He welcome input from principals requiring continuing status. With an ATC recognized certifications, enrollment, andand superintendents on the draft legislation. conversion to local control, Dr. Horseman said completion of programs to determine the Senator Wilson said geographical areas districts determine whether to grant employees standards of quality programs. Senator Givens are challenging. He said performance-based continuing status. Dr. Horseman said district said the current system is flawed and long-term funding must be based on regional needs and needs and availability of funds determine if outcomes are needed. remote areas should not be penalized if the top- tenure will or will not be granted, creating a huge Senator Givens recapped the recurring five pathways in those areas differ from the top concern for teachers and principals. Senator consensus of testimony heard by the task force five pathways in other regions. Senator Wilson Wilson said guidelines under the Education as being: 1) equitable funding mechanism agrees that the phase-in time of 10 years will Professional Standards Board (EPSB) provide consistent with a phase-in system; 2) one put Kentucky further behind and once the need for alternative certification. Dr. Horseman said governance model with a regional framework; evaluation is clearly in place, the performance- the ranking system is akin to the system used for 3) local driven curriculum and delivery; and 4) based funding is crucial for the success of general education teachers. substantial coordination oversight and approval programs. He encouraged members to provide Representative McCool expressed concern by the state with phasing in change. He cautioned input relating to legislation drafted by KDE. regarding tenured or continuing status teachers against disturbing the success of the current Other Business being terminated without cause. He agreed successful programs throughout the state. Co-chairs will discuss if another meeting with the need to provide additional funding Dr. Horseman said the NSFY grant was is needed prior to the IJCE presentation on to LAVECs and continued support of ATCs. more efficient when working through inter- November 20th. Representative McCool said identifying high- local agreements by bringing academic teachers Adjournment cost programs with community needs should to a central location and providing required There being no further business before the be the driving force. With changing market academic instruction, reducing travel time for task force, the meeting was adjourned at 11:30 demands, Dr. Horseman said the review of students. He said six inter-local agreements are a.m. regional labor market data, traffic patterns, and currently being reviewed, new pathways are the needs of business and industry partners is being added, and access on a pro-rated basis of ADMINISTRATIVE REGULATION critical. He suggested levels of funding could available funds are being used. REVIEW SUBCOMMITTEE vary for particular programs. Representative Senator Givens said a conscious effort to Minutes of the October Meeting McCool said his concern lies with equal access focus on a regionalized approach cannot be October 8, 2019 for students if program locations are moved. overstated. Although he said phasing in change is Call to Order and Roll Call Dr. Horseman said inter-local agreements for wise, the 10-year plan would fail current students. The October meeting of the Administrative the operation of centers and partnering districts Dr. Horseman predicted 60 to 70 percent could Regulation Review Subcommittee was held on with fund sharing will ensure efficiency and most likely be completed within a five-year plan. Tuesday, October 8, 2019, at 1:00 PM, in Room opportunities for everyone. In rural areas, KDE is considering work-based 149 of the Capitol Annex. Senator Stephen To eliminate confusion, Senator Givens learning through a virtual workspace within the West, Chair, called the meeting to order, and the requested Dr. Horseman submit KDE’s schools or through engaging students in other secretary called the roll. interpretation written in a one-page report and ways. Present were: return it to the task force. He asked for the report Senator Givens said once sufficient funding Members: Senator Stephen West, Co-Chair; to include how the conversion from a state center is provided for regional entities to deliver quality Representative David Hale, Co-Chair; Senators to a local center impacts employees, the normal curriculum, technology, and education to future Julie Raque Adams, Perry B. Clark, and Alice mode of operation of a state center from one year workers, a performance-funding solution driven Forgy Kerr; Representatives Deanna Frazier, to the next, and how that affects certified staff by good credentials and good jobs would benefit Mary Lou Marzian, and Tommy Turner. and credentialed employees. businesses and taxpayers. Guests: Beau Barnes, Teachers’ Retirement Senator Wilson said the KCTE Task Force Dr. Horseman said Kentucky has been System; Jeff Allen, Board of Dentistry; results and recommendations will be presented asked to work on a Credentials of Value Institute Sean Alteri, Melissa Duff, Department for to the ICE on November 20th. with heads of the National Association of Environmental Protection; Amy Barker, Brandon

118 2019 Interim LEGISLATIVE RECORD Lynch, Department of Corrections; Matthew KRS Chapter 13A. Without objection, and with and (b) comply with the drafting requirements Henderson, Jon Johnson, Larisa Plecha, Connie agreement of the agency, the amendments were of KRS Chapter 13A; and (2) to amend Section Semones; Department of Transportation; approved. 1 and BCFC 24-01-01 to require annual review Stephanie Brammer-Barnes, Steve Davis, Jill ENERGY AND ENVIRONMENT of the social services and counseling program Lee, Office Inspector General; Jonathan Scott, CABINET: Department for Environmental to ensure that the needs of inmates are met. Department for Medicaid Services; Cindy Seip Protection: Division for Air Quality: Attainment Without objection, and with agreement of the LRC Staff: Sarah Amburgey, Stacy Auterson, and Maintenance of the National Ambient Air agency, the amendments were approved. Emily Caudill, Betsy Cupp, Ange Darnell, Emily Quality Standards CABINET FOR HEALTH AND FAMILY Harkenrider, Karen Howard, and Carrie Klaber. 401 KAR 51:010. Attainment status SERVICES: Department for Public Health: Administrative Regulation Review designations. Sean Alteri, deputy commissioner, Division of Audits and Investigations: Controlled Subcommittee met on Tuesday, October 8, 2019, and Melissa Duff, director, represented the Substances and submits this report: division. 902 KAR 55:070. Emergency medication Pursuant to KRS 13A.030(2), the In response to questions by Co-Chair kits in long-term care facilities. Stephanie subcommittee determined that the following West, Ms. Duff stated that this administrative Brammer – Barnes, regulation coordinator; administrative regulation was deficient: regulation updated the regional status of Steve Davis, inspector general; and Jill Lee, TRANSPORTATION CABINET: Kentucky’s attainment of ambient air quality pharmacist, represented the division. Department of Vehicle Licensing: Driver standards. This administrative regulation was Department for Medicaid Services: Improvement not more restrictive than U.S. EPA requirements Payments and Services 601 KAR 13:100. Medical standards for and did not implement a specific control 907 KAR 3:170 & E. Telehealth service operators of motor vehicles. strategy. Regional status classifications included coverage and reimbursements. Jonathan Scott, This administrative regulation was found attainment, nonattainment, and unclassifiable. regulatory and legislative advisor, represented deficient and deferred for further consideration Attainment regions were in compliance the department. at the November meeting of the subcommittee. with national ambient air quality standards, In response to a question by Senator Please see this administrative regulation in the nonattainment regions were not in compliance Clark, Mr. Scott stated that the department was deferred or removed section of these minutes for with national ambient air quality standards, monitoring cost savings possibilities related to discussion and action information. and unclassifiable regions lacked sufficient data telehealth. Compiler’s Note: Pursuant to KRS to make a determination as to compliance. In response to a question by Representative 13A.335(3), a new Section 13 was added to this Louisville and Northern Kentucky were the Frazier, Mr. Scott stated that telehealth was administrative regulation to reflect the finding of primary regions where nonattainment was an already in the scope of practice for optometrists. deficiency. issue. There was also a region undesignated as A motion was made and seconded to Administrative Regulations Reviewed by attainment, nonattainment, or unclassifiable, approve the following amendments: (1) to the Subcommittee: which included Webster County and a small amend the RELATES TO paragraph and Section FINANCE AND ADMINISTRATION portion of Henderson County. 4 to comply with the drafting requirements of CABINET: Teachers’ Retirement System: JUSTICE AND PUBLIC SAFETY KRS Chapter 13A; and (2) to amend Section General Rules CABINET: Department of Corrections: Office of 4(2)(e) to include optometry as a reimbursable 102 KAR 1:032. Bona Fide Retirement. Beau the Secretary store and forward telehealth service. Without Barnes, deputy executive secretary and general 501 KAR 6:060. Northpoint Training objection, and with agreement of the agency, the counsel, represented the system. Center. Amy Barker, assistant general counsel, amendments were approved. A motion was made and seconded to approve and Brandon Lynch, program administrator, The following administrative regulations the following amendments: (1) to amend the represented the department. were deferred or removed from the October 8, RELATES TO and STATUTORY AUTHORITY A motion was made and seconded 2019, subcommittee agenda: paragraphs and Sections 1 and 2 to comply with to approve the following amendments: to COUNCIL ON POSTSECONDARY the drafting and formatting requirements of amend the NECESSITY, FUNCTION, and EDUCATION: Nonpublic Colleges KRS Chapter 13A; and (2) to amend Sections CONFORMITY paragraph, Section 1, and 13 KAR 1:020. Private college licensing. 2 through 4 to clarify requirements. Without the material incorporated by reference to: (1) STATE BOARD OF ELECTIONS: Forms objection, and with agreement of the agency, the conform with other departmental policies; and and Procedures amendments were approved. (2) comply with the drafting requirements of 31 KAR 4:120. Additional and emergency BOARDS AND COMMISSIONS: Board of KRS Chapter 13A. Without objection, and with precinct officers. Dentistry agreement of the agency, the amendments were BOARDS AND COMMISSIONS: Board of 201 KAR 8:540. Dental practices and approved. Pharmacy prescription writing. Jeff Allen, executive 501 KAR 6:140. Bell County Forestry Camp. 201 KAR 2:095. Pharmacist interns. director, represented the board. A motion was made and seconded to Real Estate Authority: Real Estate A motion was made and seconded to approve approve the following amendments: (1) to amend Commission the following amendments: to amend Section Section 1 and material incorporated by reference 201 KAR 11:002. Repeal of 201 KAR 3 to comply with the drafting requirements of to: (a) conform with other departmental policies; 011:030, 201 KAR 011:045, 201 KAR 011:062,

THE KENTUCKY GENERAL ASSEMBLY 119 201 KAR 011:090, 201 KAR 011:095, 201 KAR JUSTICE AND PUBLIC SAFETY Seip was aware of six (6) individuals with this 011:100, 201 KAR 011:110, 201 KAR 011:115, CABINET: Asset Forfeiture condition, but there might be many more. The 201 KAR 011:135, 201 KAR 011:145, 201 KAR 500 KAR 9:011. Repeal of 500 KAR 009:010, cabinet was alerted of Ms. Seip’s condition after 011:147, 201 KAR 011:175, 201 KAR 011:180, 500 KAR 009:020, 500 KAR 009:030, and 500 a physician reported the matter to the cabinet. 201 KAR 011:195, 201 KAR 011:215, 201 KAR KAR 009:040. In response to questions by Co-Chair Hale, 011:225, 201 KAR 011:230, 201 KAR 011:232, Motorcycle Safety Education Commission Ms. Seip stated that, as a result of surgery in 201 KAR 011:235, 201 KAR 011:240, 201 KAR 500 KAR 15:010 & E. Motorcycle safety 1983, an incomplete homonymous hemianopia 011:245, 201 KAR 011:250, 201 KAR 011:300, education program. affected the left peripheral vision in each of 201 KAR 011:350, 201 KAR 011:400, 201 KAR TRANSPORTATION CABINET: her eyes. Eye movement while driving could 011:410, 201 KAR 011:440, 201 KAR 011:450, Department of Vehicle Licensing: Driver compensate for lost peripheral vision. All and 201 KAR 011:460. Improvement drivers should maintain eye movement while 201 KAR 11:011. Definitions for 201 KAR 601 KAR 13:090. Medical Review Board; driving. The visual field test assessed peripheral Chapter 011. basis for examination, evaluation, tests. Matthew vision from a fixed point only. Most individuals 201 KAR 11:105. Advertising. Henderson, commissioner; Larisa Plecha, staff with a homonymous hemianopia were safe to 201 KAR 11:121. Standards of professional attorney; and Connie Semones, coordinator, drive and should be afforded the opportunity conduct. Medical Review Program, represented the for a road test. The cabinet required a road 201 KAR 11:170. Education provider department. Cindy Seip, Franklin County test in Louisville; however, the cabinet refused requirements. resident, appeared in opposition to these to provide a copy to Ms. Seip. As a result, Ms. 201 KAR 11:190. Consumer and administrative regulations. Seip requested a second intense, bioptic driving administrative complaints; discipline; In response to questions by Co-Chair West, assessment, which she successfully passed. If this administrative hearings. Ms. Seip stated that she had an incomplete administrative regulation became effective as 201 KAR 11:210. Licensing, education, and homonymous hemianopia, which she developed currently written, the cabinet would most likely testing requirements. thirty-eight (38) years ago. She had obtained a suspend or revoke her judge-ordered driver’s 201 KAR 11:220. Errors and omissions driver’s license for at least thirty (30) years in license. This administrative regulation was being insurance requirements. both Ohio and in Kentucky. The visual field amended in response to the litigation of Ms. Seip 201 KAR 11:461. Repeal of 201 KAR standards established in 601 KAR 13:100 were and Ms. Beilman. 011:420. outdated and unsupported by scientific evidence. In response to a question by Senator Kerr, Real Estate Appraisers An individual with a homonymous hemianopia Co-Chair West stated that, while the Senate had 201 KAR 30:130. Education provider, would most likely be prohibited from obtaining a unwritten general guidelines to avoid legislation instructor, and course. driver’s license due to failure to meet those visual regarding issues that involved ongoing litigation, TOURISM, ARTS AND HERITAGE field standards. It was not necessarily unsafe for there did not seem to be a prohibition against CABINET: Department of Fish and Wildlife these individuals to drive; therefore, they should the subcommittee acting on this administrative Resources: Game be given the opportunity to prove driver suitability regulation. 301 KAR 2:185. Hunter education. through a road assessment. Ms. Seip took and In response to a question by Representative ENERGY AND ENVIRONMENT passed two (2) road tests, for a total of nearly five Marzian, Mr. Henderson stated that this CABINET: Department for Environmental (5) hours of assessment time, demonstrating her administrative regulation did not relate to bioptic Protection: Division of Water: Water Wells suitability to drive. If 601 KAR 13:100 became visual issues pertaining to driver’s licenses. 401 KAR 6:001 & E. Definitions for 401 effective as currently drafted, the cabinet would In response to questions by Co-Chair West, KAR Chapter 006. be authorized to suspend or revoke her judge- Mr. Henderson stated that Medical Review 401 KAR 6:211. Repeal of 401 KAR 006:200. ordered driver’s license. Ms. Seip and the cabinet Board cases could be appealed in Franklin 401 KAR 6:310 & E. Water supply well were in the fourth year of litigation regarding Circuit Court, as had occurred in Ms. Seip’s construction practices and standards. this issue. Alexa Beilman, who also had an situation. Ms. Seip’s case was not subject matter 401 KAR 6:320 & E. Certification of water incomplete homonymous hemianopia was able specific; therefore, the language in 601 KAR well drillers and water well driller assistants. in 2012 to become a licensed driver in Kentucky 13:100 was not the main issue in that situation. 401 KAR 6:350 & E. Monitoring well after litigation, and the determination in her The commissioner’s office received reports construction practices and standards. case should have served as a precedent. One (1) about possible Medical Review Board cases. Water Quality Standards hearing officer had ruled in favor of Ms. Seip in The board, which was composed of medical 401 KAR 10:001. Definitions for 401 KAR this case, but that determination was rejected professionals, relied on medical information Chapter 010. by the cabinet. Franklin Circuit Court then to make determinations. The board included 401 KAR 10:026. Designation of uses of determined that Ms. Seip was safe to drive and optometrists and ophthalmologists, among other surface waters. remanded the case back to the cabinet for further medical professionals. These administrative 401 KAR 10:029. General provisions. proceedings. The cabinet conducted a second regulations were being revised for clarity and 401 KAR 10:030. Antidegradation policy hearing, which included the two (2) road tests. ease of use, independent of any particular implementation methodology. There were other individuals with this condition situation. The medical professionals on the 401 KAR 10:031 Surface water standards. who were licensed to drive in Kentucky. Ms. board and in broader medical associations with

120 2019 Interim LEGISLATIVE RECORD which the cabinet conferred, initially indicated trying to meet that same balance of inclusion 601 KAR 13:100. Medical standards for that hemianopia was such a serious medical and public safety. operators of motor vehicles. condition that it should preclude someone from In response to questions by Senator Clark, A motion was made and seconded to driving in Kentucky. States varied regarding Ms. Semones stated that hemianopia affected a approve the following amendments: (1) to hemianopia and visual field standards. After portion of the field of vision in both eyes. How amend the RELATES TO paragraph and Sections public comments, the cabinet opted to remove the much of the field of vision in each eye was 1 and 3 through 11 to comply with the drafting reference to hemianopia and retain the existing affected depended on whether the homonymous requirements of KRS Chapter 13A; and (2) to visual acuity and field of vision standards. 601 hemianopia was complete or incomplete. amend Section 11 to clarify that the visual acuity KAR 13:100 regulated many conditions beyond In response to a question by Senator Kerr standard includes 20/61 “or worse.” Without visual impairment. A diagnosis of hemianopia and Co-Chair West, Mr. Henderson stated that objection, and with agreement of the agency, the would not automatically preclude a person from the cabinet was following the order of Franklin amendments were approved. obtaining a driver’s license. Seizure conditions Circuit Court but was not authorized to discuss Compiler’s Note: Pursuant to KRS had statutory prohibitions pertaining to driving. these administrative regulation with Ms. Seip 13A.335(3), a new Section 13 was added to this Ms. Plecha clarified that the initial proposed due to the pending litigation. administrative regulation to reflect the finding of amendment to 601 KAR 13:100 referenced Senator Kerr made a motion, seconded deficiency. hemianopia; however, that reference was deleted by Co-Chair Hale to find 601 KAR 13:100, as ENERGY AND ENVIRONMENT in response to public comments. The visual field amended, deficient. Ms. Plecha requested to defer CABINET: Department for Natural Resources: standards were the same as those in place since consideration of these administrative regulations Division of Oil and Gas the initial promulgation of 601 KAR 13:100. to the November meeting of the subcommittee. 805 KAR 1:001 Definitions for 805 KAR Mr. Henderson stated that these administrative In response to a question by Co-Chair West, Chapter 001. regulations also established processes for the Senator Kerr declined to withdraw her motion 805 KAR 1:020. Protection of fresh water Medical Review Board and those with cases to find 601 KAR 13:100 deficient. A roll call vote zones. before the board. The process included multiple was conducted and, with five (5) votes to find 805 KAR 1:030. Well location and as-drilled avenues of appeals. Ms. Plecha stated that a the administrative regulation deficient and three location plat, preparation, form and contents. person with a case could resubmit new medical (3) votes against deficiency, 601 KAR 13:100, as 805 KAR 1:050. Bonds, requirements, information at any time because the board amended, was found deficient. cancellation. understood that conditions could improve In response to a question by Co-Chair West, 805 KAR 1:060. Plugging wells. or worsen. Mr. Henderson stated that some Ms. Plecha stated that the cabinet would agree 805 KAR 1:080. Gas storage reservoirs; standards in these administrative regulations to defer consideration of these administrative drilling, plugging in vicinity. were specific and some were more general. regulations to the November meeting of the 805 KAR 1:110. Underground injection In response to questions by Co-Chair West, subcommittee. A motion was made and seconded control. Ms. Seip stated that a person with a hemianopia to defer consideration of 601 KAR 13:090 805 KAR 1:120. Operating or deepening would most likely be unable to meet the visual and 13:100, found deficient, to the November existing wells and drilling deeper than the field standards required by 601 KAR 13:100. The meeting of the subcommittee. A roll call vote was permitted depth. point of fixation required to test the visual field conducted and, with six (6) votes to defer these 805 KAR 1:140. Directional and horizontal would preclude a person with hemianopia from administrative regulations, one (1) vote against wells. meeting the visual field standard. A driver would deferral, and one (1) member passing, these 805 KAR 1:170. Content of the operations not be visually fixed while driving. administrative regulations were deferred. and reclamation plan. In response to questions by Co-Chair West, A motion was made and seconded 805 KAR 1:180. Production reporting. Mr. Henderson stated that failure to meet the to approve the following amendments: to 805 KAR 1:190. Gathering lines. visual field standard in 601 KAR 13:100 would amend the RELATES TO; STATUTORY 805 KAR 1:200. General information preclude a person from obtaining a driver’s AUTHORITY; and NECESSITY, FUNCTION, associated with oil and gas permits. license. This standard was not changing from AND CONFORMITY paragraphs and Sections Sanctions and Penalties the previous effective version of 601 KAR 1 through 3 to comply with the drafting 805 KAR 9:011. Repeal of 805 KAR Chapter 13:100. There were many reasons besides just requirements of KRS Chapter 13A. Without 009. hemianopia why a person might not meet the objection, and with agreement of the agency, the PUBLIC PROTECTION CABINET: visual field standard. Ms. Plecha stated that the amendments were approved. Department of Insurance: Agents, Consultants, previous visual standards were implicit and this Solicitors, and Adjustors version clarified the same standards. 806 KAR 9:020. False or deceptive names, Representative Frazier stated that many titles, prohibited. people only had visual testing at the initial 806 KAR 9:030. Adjuster licensing application for driver’s licensing. It was important restrictions. that people be able to reach their full potential 806 KAR 9:061. Repeal of 806 KAR 009:060. while still maintaining the safety of Kentucky’s 806 KAR 9:070. Examinations. roadways. Ms. Plecha stated that the cabinet was 806 KAR 9:110. Agent’s rights after contract

THE KENTUCKY GENERAL ASSEMBLY 121 termination. next meeting of the subcommittee is tentatively under the program. Mr. McCloskey highlighted 806 KAR 9:190. Disclosure requirements scheduled for November 12, 2019, at 10 a.m. programs including the County Agricultural for financial institutions authorized to engage in Investment Program (CAIP), Deceased Farm insurance agency activities. TOBACCO SETTLEMENT Animal Removal, Shared-Use Equipment 806 KAR 9:200. Volume of insurance agent AGREEMENT FUND OVERSIGHT Program, and Youth Agriculture Incentives exchange of business. COMMITTEE Program. 806 KAR 9:310. Life settlement licenses. Minutes of the 7th Meeting The requested program amendments 806 KAR 9:321. Repeal of 806 KAR 009:320. of the 2019 Interim discussed included: 806 KAR 9:341. Repeal of 806 KAR 009:341. October 2, 2019 Magoffin County Agricultural Investment 806 KAR 9:350. Recognition of financial Call to Order and Roll Call Program requested an additional $18,000 in planning certification and designation for receipt The 7th meeting of the Tobacco Settlement Magoffin County funds for CAIP. The board of fees and commissions. Agreement Fund Oversight Committee was held recommended approval, which would bring the CABINET FOR HEALTH AND FAMILY on Wednesday, October 2, 2019, at 10:00 AM, in program total to $116,444. SERVICES: Office of Inspector General: Division Room 131 of the Capitol Annex. Representative Hancock County Conservation District of Healthcare: Health Services and Facilities Myron Dossett, Chair, called the meeting to requested to increase its maximum producer 902 KAR 20:036. Operation and services; order, and the secretary called the roll. amount limit to $2,000. The board recommended personal care homes. Present were: approval, which would bring the program total 902 KAR 20:370. Operations and services; Members: Senator C.B. Embry Jr., Co- to $111,083. private duty nursing agencies. Chair; Representative Myron Dossett, Co-Chair; The projects discussed included: 902 KAR 20:430 & E. Facilities specifications, Senators Dennis Parrett and Robin L. Webb; The Nicholas County Extension District operation and services; behavioral health services Representatives Kim King, Rick Rand, and Board was approved for $3,000 in Nicholas organizations for mental health treatment. Brandon Reed. County funds to construct a ham house for Division of Policy and Operations: Guests: Warren Beeler, Executive Director, use by the Nicholas County 4-H ham project Behavioral Health Governor’s Office of Agricultural Policy (GOAP); participants. 907 KAR 15:005 & E. Definitions for 907 Bill McCloskey, Deputy Executive Director, Kentucky State University was approved for KAR Chapter 015. GOAP; B. Mark Evers, M.D., Director, University up to $990,000 in state funds over a two-year 907 KAR 15:010 & E. Coverage provisions of Kentucky Markey Cancer Center (MCC); and period for personnel, demonstration projects, and requirements regarding behavioral health Jason Chesney, M.D., Ph.D., Director, University and mini-grants to underserved, small, and services provided by individual approved of Louisville James Graham Brown Cancer limited resource farmers. behavioral health practitioners, behavioral Center (BCC). Buffalo Skull Ranch was denied $250,000 health provider groups, and behavioral health LRC Staff: Nathan Smith, Tanya Monsanto, in state funds to build a greenhouse examining multi-specialty groups. Kelly Ludwig, and Rachel Hartley. the effectiveness of various water management 907 KAR 15:015 & E. Reimbursement Governor’s Office of Agricultural Policy practices. The On-Farm Water Management provisions and requirements for behavioral Report Committee recommended denying the health services provided by individual approved Warren Beeler provided a brief overview application based on the 2019 Kentucky behavioral health practitioners, behavioral of the largest project funded by the Kentucky Agricultural Development Board’s hemp policy. health provider groups or behavioral health Agricultural Development Board. The University University of Kentucky Markey Cancer multi-specialty groups. of Kentucky Grain and Forage Center of Center 907 KAR 15:020 & E. Coverage provisions Excellence was funded with $15 million. B. Mark Evers, M.D., stated the mission and requirements regarding services provided KADF has funded three hemp projects on of MCC is to reduce cancer mortality through by behavioral health services organizations for a trial basis. Sunstrand, Atalo Holdings, and cancer research, treatment, education, and mental health treatment. Victory Foods were funded, but are currently community engagement with a particular focus 907 KAR 15:022 & E. Coverage provisions struggling due to processors not purchasing the on the underserved population of Appalachian and requirements regarding services provided product. Kentucky. The ultimate goal of MCC is to reduce by behavioral health services organizations Senator Webb stated a contingency cancer mortality by 50 percent. for substance use disorder treatment and co- plan should be implemented during the next MCC was awarded an initial designation by occurring disorders. budget cycle to assist the hemp producers until the National Cancer Institute (NCI) in 2013, and 907 KAR 15:025 & E. Reimbursement the market stabilizes and to determine what the designation was renewed in 2018. In 2022, provisions and requirements regarding percentage of producers are affected. MCC plans to apply for comprehensive status. behavioral health services provided by behavioral In response to a question from Due to the initial NCI designation, there has health services organizations. Representative Dossett, Mr. Beeler stated hemp been an increase in cancer patient volume and Division of Protection and Permanency: production is increasing in Kentucky. There were funding. The inpatient cases have grown 12.4 Child Welfare 12,000 acres approved for hemp production last percent, and the outpatient cases have grown 922 KAR 1:320 & E. Service appeals. year, and this year 62,000 acres were approved. 19.5 percent since 2013. The total funding has The subcommittee adjourned at 2 p.m. The Bill McCloskey described the Agricultural increased from $28.4 million in 2012 to $46.2 Development Board’s projects for September

122 2019 Interim LEGISLATIVE RECORD million in 2019. The tobacco settlement funding treated for melanoma rather than glyphosate- Committee which developed criteria for in-state for MCC decreased from $3.5 million in 2019 to related lymphoma. verification of Level II-IV trauma centers. There $3.34 million in 2020. The additional $160,000 There being no further business, the meeting was no provision for state funding. could have been used by MCC to provide more was adjourned. Mr. Bartlett stated that the long range goals colon cancer testing, to give additional support for the Kentucky Trauma System are to decrease for affiliate sites, to administer more HPV MEDICAID OVERSIGHT AND the death rate from injury, decrease morbidity vaccinations, and to hire an outreach coordinator ADVISORY COMMITTEE and disability, and decrease the overall healthcare for western Kentucky. Minutes impact trauma has on the Commonwealth. Mr. There are 19 MCC affiliate network sites and October 7, 2019 Bartlett stated that since 2008, Kentucky has seven research network sites in Kentucky. The Call to Order and Roll Call 22 trauma centers with two to three regional MCC directly or indirectly cares for 59 percent The 5th meeting of the Medicaid Oversight hospitals in central Kentucky that are in the of all new cancer cases in Kentucky. and Advisory Committee was held on Monday, process of receiving Level III designation and University of Louisville James Graham October 7, 2019, at 10:00 AM, in Room 171 of four hospitals across the state working on Brown Cancer Center the Capitol Annex. Representative Daniel Elliott, Level IV designations. Mr. Bartlett added that Jason Chesney, M.D., Ph.D., stated the Chair, called the meeting to order, and the Pikeville Medical Center is currently working on majority of cancer is caused by bad luck. DNA secretary called the roll. developing a pediatric trauma center. copying mistakes are responsible for an estimated Present were: 66 percent of cancer diagnoses, 29 percent are Members: Senator Stephen Meredith, Co- Mr. Bartlett stated that there are 13,000 due to environmental factors, and five percent Chair; Representative Daniel Elliott, Co-Chair; trauma records in the registry with men making are due to heredity. Senators Ralph Alvarado, Danny Carroll, and up 60 percent of the entries and isolated hip Improved cancer screening and research Jimmy Higdon; Representatives Jim Gooch Jr., fractures being the most common traumatic has reduced the cancer death rate by 27 percent Melinda Gibbons Prunty, and Steve Sheldon. injury. The data reflected that trauma is seasonal from 1991 to 2016; however, cancer diagnoses Guests: Dr. Julia F. Costich, JD, PhD, as the high volume of trauma registry entries are expected to rise from 1.7 million to 2.1 Professor of Health Management and Policy, happen in the spring and summer months. million per year by 2030. The additional 400,000 University of Kentucky College of Public 17 percent of all trauma entries are medically cancer patients are expected due to the aging Health; Dick Barlett, Trauma and Emergency classified as severe. 75 percent of trauma cases population and increased rates of thyroid cancer, Preparedness Coordinator, Kentucky Hospital in the registry were admitted into the operating melanoma, and uterine cancer. To meet this Association; Carol Steckel, Commissioner, room, and 13.7 percent were severe enough to demand, the Brown Cancer Center (BCC) is Department for Medicaid Services, Cabinet for need to be transferred to another hospital. The currently renovating to expand its pharmacy and Health and Family Services; Dr. Judy Theriot, data reflected that 38.24 percent of cases were to increase the number of infusion chairs. Medical Director, Department for Medicaid covered by commercial insurance, 26.95 percent With the support of the tobacco settlement Services, Cabinet for Health and Family Services; were covered by Medicare, 25.85 percent were funds, BCC has created a new position, Cancer Emily Ferrell, Epidemiologist, Department of covered by Medicaid, and 6.4 percent were either Screening Navigator, to work with providers in Public Health, Cabinet for Health and Family self-pay or uninsured. Kentucky to facilitate cancer screenings. The Services. Mr. Bartlett stated that the short term goal funds also supported the development of the LRC Staff: DeeAnn Wenk, Lead Staff, Chris of the Kentucky Trauma Care System is to secure Kentucky Innovative Cancer Screening Program. Joffrion, Hillary McGoodwin, Dana Simmons. funding to support the growth and operation The objective of the program is to develop new Approval of Minutes of the system. Through legislation, several methods for early cancer detection. A motion to approve the September 9, 2019 sources of funding could be found in measures BCC received a $12 million grant from the meeting minutes was made by Senator Alvarado like Georgia’s Super Speeder Law, enhanced Centers of Biomedical Research Excellence with and seconded by Representative Sheldon, and distracted driving fines, and having a trauma funding anticipated to start in 2020. The grant is approved by a voice vote. registry add-on to the Kentucky motor vehicle renewable for up to 15 years with total funding Kentucky Trauma Care Systems registration forms. The funding would help with not to exceed $30 million. The grant will support Dick Barlett, Trauma and Emergency employing a full-time program manager, a full the new Center for Cancer Immunology and Preparedness Coordinator, Kentucky Hospital time trauma educator, adding software support Immunotherapy with an emphasis on conducting Association stated the movement to create a for the registry, increasing basic operating costs, biomedical research to harness the power of an statewide trauma care system was originally and facilitating more educational programming. individual’s immune system to eradicate cancer. led by Dr. Paul Kearney, trauma surgeon at the Dr. Costich stated that the registry currently In response to a question from Senator University of Kentucky and Dr. Mary Fallat, a receives funds from a National Highway Traffic Webb, Dr. Evers stated there is uncertainty if pediatric trauma surgeon at Kosair Children’s Safety Administration grant which covers there is a cancer risk to vaping although it is a Hospital in 2007. The goal was to create a annual compilation and analysis of the registry’s concern. There have been more cases involving voluntary governing body that oversaw trauma data. Annual data shows that there are very few lung disease due to vaping in recent months. certifications throughout the state to increase the trauma deaths in Kentucky due to the rising In response to a question from Representative trauma care capacity in rural regions throughout number of hospitals that can accommodate Dossett, Dr. Chesney stated farmers typically are the state. In 2008, KRS 211.499- 211.486 was trauma cases. However, the data does not reflect enacted to create the Kentucky Trauma Advisory THE KENTUCKY GENERAL ASSEMBLY 123 the cases of motor vehicle deaths in rural areas covered mothers. this time to educate the mothers on safe sleeping, that never make it to the hospital to be captured Dr. Judy Theriot, Medical Director, healthy habits, as well as informing mothers of in the registry. A comprehensive approach to Department for Medicaid Services, Cabinet for their option to receive long acting reversible preventing trauma in rural areas and expanding Health and Family Services, stated that Kentucky contraception (LARC). Only 62 percent of rescue and trauma resources in rural Kentucky is leads the country with 35 percent caesarean Medicaid mothers attended their post-partum imperative to preventing deaths. section births compared to the national average doctor’s visits. Only 42 percent of Medicaid In response to questions and comments of 32 percent. Kentucky’s pre-term birth rate mothers who gave birth to drug exposed babies from Senator Meredith, Mr. Bartlett stated that is 11 percent which is 3 percent higher than attend their follow-up visits. by investing in the trauma system, the state the national average. Dr. Theriot stated that Dr. Theriot stated that the Centers for would see savings through the stabilization of Kentucky is second in the nation behind West Disease Control reported that ensuring healthy patients in their communities. Also communities Virginia in the percentage of pregnant mothers intervals between births increases the likelihood could, with the help of the Kentucky Hospital who smoke. of a healthy child and lowers the rate of maternal Association invest in adequate ground Dr. Theriot stated that 700 women die deaths. In 2018, the LARC was given to only transport so air transportation is not the main each year and 60 percent of those deaths are 4.2 percent of mothers between the ages of 15 transportation method for trauma cases. Mr. preventable. Pregnancy related mortality is to 44 years of age. Dr. Theriot attributed this Bartlett stated that air transportation costs the based on the time while the mother is pregnant, to the low attendance percentage for post- state $20,000-$40,000 per event, and is often not the few weeks after, and up until a year post- partum doctor visits where those options can a medical necessity but merely the only means of partum. Kentucky is thirteenth in the nation for be addressed. Commissioner Steckel stated transportation available. Senator Meredith stated maternal deaths with 22.9 percent per 100,000 that in the 2020 contract for MCOs, there will that he would like to see a graph of the future compared to the national average of 17.2 percent be strict accountability and outcomes measures savings in proportion with the investments. per 100,000. This number is up significantly for healthy mothers, incentivizing providers to In response to questions and comments from 25 years ago when the national average was utilize available programming. from Representative Sheldon, Mr. Bartlett stated 12 percent. Mothers today have a greater chance Emily Ferrell, Epidemiologist, Department he would meet with Representative Sheldon and of dying from childbirth related causes than their of Public Health (DPH), Cabinet for Health and Representative Tipton to discuss their proposed own mothers, 25 years prior. Family Services, stated that the cabinet utilizes distracted driving bill, 20RS BR 156, to see if the Dr. Theriot stated that infant mortality rate several in-home services to new mothers and trauma system can be a designated recipient of in Kentucky is 6.8 per thousand births and most families. The HANDS program is a home visiting revenue from the proposed bill. causes of infant deaths are preventable. Infant program available to women and families during In response to questions and comments from death causes range from sudden infant death pregnancy and through early childhood. HANDS Representative Prunty, Mr. Barlett stated that in syndrome, which often occurs due to co-sleeping provides nurses, social workers and community western Kentucky, Bowling Green is working or not using age appropriate bedding, birth defects health workers to help prepare families for the towards a Level III designation since Vanderbilt that are often caused during gestation through challenges of parenthood while also connecting is just down the road as a Level I trauma center. substance use and smoking, complications them to resources. Ms. Ferrell stated that the Mr. Bartlett stated that in Paducah, the struggle from pre-term births, and accidents/injury. First Steps program is also a service that the state has been with the buy-in from the medical team Educating new and expecting mothers is the key brings to new families to help aid the healthy for the on-call hours needed to qualify for trauma to preventing many maternal and infant deaths. development of their infants and to help identify status. Mr. Barlett stated that the trauma system The Department for Medicaid Services (DMS) is any conditions and developmental barriers and hospitals across the state would benefit from working with the Department of Public Health the children have while connecting them with a cap on Medicaid transport, a review of surprise and Managed Care Organizations (MCO) to additional resources. billing for trauma cases and a review of cost for educate mothers and families. the air transportation system. Dr. Theriot stated that the state is Ms. Ferrell stated that under the Department emphasizing the “Healthy Babies are Worth the for Public Health, a multi-disciplinary maternal Maternal Health and Wellness for New Wait” initiative which advocates for mothers morality review committee has been established. Mothers and Their Children to not elect to give birth before 39 weeks. Most Additionally, DPH has several maternal Carol Steckel, Commissioner, Department Medicaid mothers are covered by a MCO health based review boards: the Public Health for Medicaid Services, Cabinet for Health and which means they receive case management Child Fatality Program, Sudden Infant Death Family Services stated that the state is working and resources that meet with the mothers pre- Syndrome Fatality review program, and the Neo- diligently to ensure that resources are maximized birth and up to twelve months post-partum. The Natal Abstinence Syndrome review. These review for Medicaid beneficiaries, even if that means MCOs support the “Healthy Babies are Worth the boards will aggregate topic issued data that will using multiple agencies. Commissioner Steckel Wait” initiative, because if a recipient was to elect be used to develop a standardized method of stated that there were 56,000 live births in to give birth, prior to being 39 weeks pregnant care for hospitals and agencies. Kentucky in 2018, 46 percent were paid for and without medical necessity, the MCO would In response to questions and comments by Medicaid which is lower than the national not get paid. Together with the MCOs and from Senator Meredith, Dr. Theriot stated that average of 55 percent. In Kentucky, in 2018, there doctors, the state is trying to incentivize pre- pre-natal compliance is an issue that can be were 27,542 Medicaid covered babies and 24,839 birth and post-partum doctor’s visits and using helped by cooperation and involvement from the

124 2019 Interim LEGISLATIVE RECORD MCOs and by offering incentives for the patient. Dr. Theriot stated that since the percentage of mothers who attend their post-partum visits is low, it would be very useful to educate mothers LRC Publications during the pre-natal visits about the benefits of LARC, all the preventable causes of infant death, and the resources they have available to them. Research Reports In response to questions and comments from Representative Prunty, Dr. Theriot stated that the fear physicians have of getting sued may 462_U Program Review and Investigations--Nonacademic Barriers contribute to the volume of doctor’s consenting to pre-term, C-section births but that she does Facing Kentucky Community And Technical College Students (2019) not have the data on hand to support that claim. Commissioner Steckel stated that since 461_U Office of Education Accountability--Revenues And Expendi- transportation is a Medicaid covered expense, tures For Career And Technical Education In Kentucky (2019) that should not be a barrier to mothers attending their doctor’s visits and if it is, it is on a case by 460 Program Review and Investigations--Kentucky Child Fatality And case basis. Near Fatality External Review Panel 2018 Adjournment 459 Office of Education Accountability--Kentucky District Data Pro- There being no further business, the meeting was adjourned at 11:30AM. files School Year 2018 458 Program Review and Investigations--Tuition, Fees, And Other Costs At Kentucky Public Universities (2019) 457 Office of Education Accountability--State And Local Funds Dis- tributed To Higher Poverty Schools (2018) 456 Program Review and Investigations--Surplus Real Property In Kentucky (2019) 455 Office of Education Accountability--Textbooks And Instructional Materials (2018) 454 Office of Education Accountability--Homeschooling In Ken- tucky (2018) 453 Office of Education Accountability--Kentucky District Data Pro- files School Year 2017 452 Program Review and Investigations -- Kentucky’s Foster Care System 451 Office of Education Accountability--High School Indicators Of Postsecondary Success (2017) 450 Office of Education Accountability--Preschool Program Review And Full-Day Kindergarten (2017) (Revised 7/10/2018)

THE KENTUCKY GENERAL ASSEMBLY 125 2020 Prefiled Bills BR4 - Representative Rob Wiederstein to determine if a patient has filed a voluntary non- (Prefiled by the sponsor(s).) (9/25/2019) opioid directive. (Prefiled by the sponsor(s).) BR32 - Representative Jerry Miller AN ACT relating to legislative (8/21/2019) accountability by providing for the expanded use BR23 - Representative Charles Booker of cost estimates, a regulatory impact assessment (5/3/2019) AN ACT relating to the taxation of tobacco of pending legislation, and the limitation of bill products. introductions during a regular session. AN ACT proposing an amendment to Amend KRS 138.130 to define Create new sections of KRS Section 145 of the Constitution of Kentucky relating terms; amend KRS 138.140 to impose an excise tax Chapter 6 to define “fiscal note,” “machine-readable,” to persons entitled to vote. on vapor products; amend KRS 138.143 to impose a and “regulatory burden”; establish requirements Propose to amend Section 145 of floor stock tax; EFFECTIVE 11:59 p.m. on June 31, for fiscal notes; allow the waiver of the fiscal note the Constitution of Kentucky to restore voting rights 2020. requirements; establish responsibilities of the to persons convicted of felonies upon completion of (Prefiled by the sponsor(s).) Legislative Research Commission in regard to fiscal their sentence; submit to the voters for ratification or notes; allow for the validity of any measure duly rejection. BR36 - Representative John Sims Jr passed by the legislature even if fiscal note or bill (Prefiled by the sponsor(s).) (7/12/2019) limit requirements are not met; create a new section of KRS Chapter 6 to establish bill filing limitations BR27 - Representative Attica Scott AN ACT relating to an increase in tax rates. for regular sessions and allow exemptions; amend (5/10/2019) Amend KRS 139.200 to provide various KRS statutes for technical corrections and for a sales and use tax rate of eight percent (8%) conforming changes. AN ACT relating to historical instruction. on or after January 1, 2021; amend KRS 139.230 (Prefiled by the sponsor(s).) Create a new section of KRS and 139.310 to conform; amend KRS 139.471 to Chapter 158 to require African history instruction provide a six percent (6%) sales tax rate on property BR6 - Representative Diane St. Onge in certain middle and high school world history and purchased for use in the performance of a lump (4/18/2019) civilization courses; require Native American history sum, fixed fee contract, sales made under a fixed fee instruction in certain middle and high school United contract, or sales made under a fixed price contract, AN ACT relating to cruelty to equines. States history courses; require the Kentucky Board of if the contracts were executed on or before July 10, Create a new section of KRS Education to promulgate administrative regulations 2019; amend 138.460 to provide for a motor vehicle Chapter 525 to prohibit cruelty to equines, including establishing academic standards for the required usage tax rate of eight percent (8%) on vehicles situations involving abuse or neglect; make cruelty historical instructions; require local school boards purchased on or after January 1, 2021; amend to equines a Class D felony and provide for the to adopt curricula for required instruction; require KRS 138.463 to provide for an eight percent (8%) termination of ownership; list exceptions; establish a the Department of Education to collaborate with U-Drive-It tax rate for rental and leasehold contracts short title of “Klaire’s Law.” the Kentucky African American Heritage and the entered into after January 1, 2021; amend KRS (Prefiled by the sponsor(s).) Kentucky Native American Heritage Commission 139.260 and 139.470 to conform. to develop recommended curricula and instruction (Prefiled by the sponsor(s).) BR7 - Representative Danny Bentley guidelines for the required historical instruction, (6/4/2019) elective high school course offerings in African BR37 - Representative Randy Bridges, history and Native American history, and relevant Representative Brandon Reed AN ACT relating to voluntary non-opioid professional development materials. (10/1/2019) directives. (Prefiled by the sponsor(s).) Create a new section of KRS AN ACT relating to crimes against sports Chapter 218A to define terms and to establish a BR31 - Representative Derek Lewis officials. voluntary non-opioid directive form to inform (7/2/2019) Amend KRS 518.090 to make practitioners that an opioid drug shall not be assault of a sports official a Class D felony; create prescribed, ordered, or administered to a patient AN ACT relating to teachers and making an a new section of KRS Chapter 518 to establish the who has filed the form with the Cabinet for Health appropriation therefor. offense of intimidation of a sports official as a Class and Family Services; amend KRS 218A.172 to Create a new section of KRS A misdemeanor; state that the restrictions of KRS require a practitioner to determine if a patient Chapter 164 to define terms; establish a student 6.945(1) do not apply. has filed a voluntary non-opioid directive and to loan forgiveness program for STEM teachers (Prefiled by the sponsor(s).) provide the patient with a copy of the form prior to employed at a public school district within a prescribing an opioid drug; amend KRS 218A.202 federally designated promise zone; authorize the BR45 - Representative Jason Nemes to establish that the electronic monitoring system Kentucky Higher Education Assistance Authority to (6/19/2019) established in this section shall permit the cabinet promulgate administrative regulations to administer to report and document receipt of a voluntary the program; create the STEM teacher promise zone AN ACT relating to fire districts. non-opioid directive and to permit a practitioner scholarship fund; APPROPRIATION. Amend KRS 75.040 to deem

126 2019 Interim LEGISLATIVE RECORD that emergency ambulance service provided by a Chapter 336 to declare that professional employer amend KRS 48.110 and 48.180 to conform. fire protection district, volunteer fire department organizations provide a valuable service to (Prefiled by the sponsor(s).) district, or subdistrict, is the primary emergency commerce and should be properly recognized ambulance service within the district or subdistrict and regulated; define “client,” “co-employer,” “co- BR79 - Representative Attica Scott in the boundaries of the county containing the employment relationship,” “covered employee,” (5/23/2019) largest population within the district boundaries; “professional employer organization group,” add a method for boards of trustees to declare “person,” “professional employer agreement,” AN ACT relating to the investigation of a that the district or subdistrict is not the primary “professional employer organization,” “professional shooting or deadly incident by a law enforcement provider of emergency ambulance service within employer services,” “registrant,” and “temporary officer. the district; declare status for secondary providers help service”; indicate that covered employees shall Create new sections of KRS of emergency ambulance service; require that the be deemed employees of the client for purposes of Chapter 15A to provide definitions and establish additional tax moneys allowed for being a primary determining tax credits or economic incentives; an Officer Shooting Review Board to investigate provider are no longer allowable; and require local require a person providing professional employer any shooting of an individual by a law enforcement governments providing secondary emergency services to be registered and to set forth the officer or officers or any deadly incident involving ambulance service within the district or subdistrict registration requirements; require professional law enforcement; set requirements for board within the boundaries of the county containing the employer organizations to pay a registration fee; members; provide duties of the board; specify largest population within the district boundaries require a professional employer organization to requirements related to investigatory work to credit the amount of taxes paid by taxpayers of either maintain positive working capital or provide a performed by the Kentucky State Police Critical the district or subdistrict for emergency ambulance bond, letter of credit, or security; set forth the rights Incident Response Team on behalf of the board; service to the taxes owed to the local government by and responsibilities of parties to a co-employment establish investigatory procedures and protocols; the taxpayer. agreement; set forth the health insurance obligations provide requirements for submission of the board’s (Prefiled by the sponsor(s).) of professional employer organizations; set forth report to the Commonwealth’s attorney of the the workers’ compensation requirements of jurisdiction in which the shooting or deadly incident BR47 - Representative Les Yates professional employer organizations and the client; took place or to the Attorney General; provide (9/12/2019) set forth the unemployment insurance obligations requirements for independent investigation of any of the professional employer organization and the shooting of an individual by a law enforcement AN ACT relating to vacancies in elective client; prohibit a person from knowingly providing officer or officers or any deadly incident involving office. professional employer services without becoming law enforcement. Amend KRS 83A.165, 118.115, registered and set forth actions that may be taken by (Prefiled by the sponsor(s).) 118.165, 118.365, 118.375, and 118A.100 to the Labor Cabinet against any person in violation; extend by ten calendar days the deadline for filing amend KRS 336.990 to provide a civil penalty; BR80 - Representative Dennis Keene nomination papers to fill an unexpired term if the amend the definition of “premium” in KRS 342.0011 (5/8/2019) vacancy occurs five calendar days or less before to include co-employment relationships with a the prescribed deadline; amend KRS 118.225 professional employer organization; amend KRS AN ACT relating to the expansion of to conform; amend KRS 132.380 to require an 342.990 to delete references to KRS 342.615; repeal gaming and making an appropriation therefor. examination whenever there is a vacancy in the KRS 342.615; state that the provisions of this Act are Create a new section of KRS office of property valuation administrator and to severable. Chapter 154A to state the findings of the General direct that the certificates of any examination shall (Prefiled by the sponsor(s).) Assembly; amend KRS 154A.010 to define, remain valid for four years. “authorizing location,” “casino,” “county,” “county (Prefiled by the sponsor(s).) BR76 - Representative Rob Wiederstein legislative body,” “department,” “full casino (10/1/2019) gaming,” “gaming licensee,” “gross gaming revenue,” BR61 - Representative Attica Scott, Representative “handle,” “licensee,” “limited casino gaming,” Mary Lou Marzian, Representative Charles Booker, AN ACT relating to evidence-based and “principal”; amend KRS 154A.030 to expand Representative Joe Graviss, Representative Kathy budget allocations by providing for the formation the Lottery Corporation board membership and Hinkle, Representative Nima Kulkarni of the Office for Program Evaluation and Quality duties; amend KRS 154A.040 to include casino (7/9/2019) Assurance within the Office of State Budget Director, licensees; amend 154A.063 to remove prohibition the establishment of an evidence-based program against casino gaming; create new sections of KRS AN ACT relating to public charter schools. inventory, the regular evaluation of state programs, Chapter 154A to require a local option election in Amend KRS 156.095 and KRS the elimination of ineffective state programs, and the any precinct wanting to host a casino; describe the 158.4416 to remove references to public charter creation of an evaluation officer position within state duties of the county clerk and sheriff in a casino schools; repeal KRS 160.1590, 160.1591, 160.1592, agencies. gaming local option election; state requirements 160.1593, 160.1594, 160.1595, 160.1596, 160.1597, Amend KRS 11.068 to abolish the for local option elections held on a day other than 160.1598, 160.1599, and 161.141. Governor’s Office for Policy Research and to create a regular election day; require the corporation to (Prefiled by the sponsor(s).) the Governor’s Office for Program Evaluation and advertise an invitation to bid for casinos; require Quality Assurance within the Office of State Budget the corporation to evaluate all proposals for full BR72 - Representative Melinda Prunty Director; create new sections in KRS Chapter 11 to casinos; establish initial licensing fees for full casinos (9/10/2019) define terms, require an inventory of evidence-based at $50 million with an initial licensing period of ten programs, create the evidence building workgroup, years and annual renewal thereafter at $6 million AN ACT relating to the recognition and require reporting by the program agencies, and lapse per year; permit limited casino gaming at horse registration of professional employer organizations. state funding for any program if the program agency racing tracks licensed under KRS Chapter 230; Create new sections of KRS does not comply with the reporting requirements; establish requirements for limited casinos; establish THE KENTUCKY GENERAL ASSEMBLY 127 requirements for any track holding a limited casino beneficiary is eligible for up to a maximum of 128 who has possession of a vehicle title to transmit that license; establish requirements for principals of any credit hours of undergraduate instruction. title to the owner when the security interest has been corporation granted a casino license; create license (Prefiled by the sponsor(s).) paid in full; set forth procedures for cases when the application requirements for casino, manufacturer’s, title is not transferred; amend 186A.180 and 186.170 or supplier’s licenses; prohibit anyone not licensed BR83 - Representative Rob Rothenburger, to conform. from selling, leasing, or otherwise furnishing gaming Representative Mark Hart (Prefiled by the sponsor(s).) supplies; prohibit anyone under the age of 21 from (5/9/2019) participating in casino gaming; require the Lottery BR102 - Representative R. Travis Brenda Corporation to determine occupations related to AN ACT relating to ground ambulance (9/12/2019) casino gaming that require licensure and establish service providers and making an appropriation criteria for occupational licensing; permit the therefor. AN ACT relating to the taxation of certain corporation to initiate disciplinary action against Create new sections of KRS services. applicants and license holders; establish an appeal Chapter 205 to define terms; establish the Medicaid Amend KRS 139.200 to exclude process; create new sections of KRS Chapter 138 ground ambulance service provider assessment; mowing, fence cleaning, and other pasture to establish wagering and admissions taxes to be require ground ambulance service providers to pay maintenance services performed on agricultural or remitted by gaming licensees and full and limited a Medicaid ambulance service provider assessment horticultural land for a farmer or retired farmer from casinos; create new sections of KRS Chapter 154A quarterly; authorize the Cabinet for Health and landscaping services; EFFECTIVE August 1, 2020. to establish the casino gaming revenue distribution Family Services to promulgate administrative (Prefiled by the sponsor(s).) trust fund and limit that money to the benefit of regulations necessary to implement the Medicaid the state retirement systems for the first ten years; ground ambulance service provider assessment; BR105 - Representative Danny Bentley establish the regional tourism and infrastructure create the ambulance service assessment revenue (6/4/2019) development fund and provide criteria for projects fund; APPROPRIATION. seeking money from the fund; waive 15 U.S.C. (Prefiled by the sponsor(s).) AN ACT relating to prescription insulin. secs. 1172, 1173, and 1174 for devices authorized Amend KRS 304-17A.148 to by this Act; require the corporation to promulgate BR85 - Representative C. Ed Massey cap the cost sharing requirements for prescription administrative regulations to define and limit (6/18/2019) insulin at $100 per 30 day supply; EFFECTIVE games and devices permitted for gaming in casinos; January 1, 2021. provide guidelines for exclusion or ejection of AN ACT relating to the Honor and (Prefiled by the sponsor(s).) certain persons; define “cheat” and provide penalties Remember flag. for those who cheat at casino games; amend KRS Create a new section of KRS BR107 - Representative Attica Scott 243.500 to exempt limited or full casino gaming; Chapter 2 to designate the Honor and Remember (7/11/2019) amend KRS 525.090 to exempt persons engaged flag as the state’s emblem of the service and sacrifice in casino gaming; amend KRS 528.010 to exempt of the brave men and women of the United States AN ACT relating to an exemption of gambling activity and devices licensed under KRS Armed Forces who have given their lives in the line feminine hygiene products from sales and use Chapter 154A; amend KRS 528.020 to conform; of duty; specify locations, dates, and circumstances taxation. amend KRS 528.070 to exempt activity licensed under which the flag may be displayed. Amend KRS 139.010 to define under KRS Chapter 154A; amend KRS 528.080 to (Prefiled by the sponsor(s).) feminine hygiene products; amend KRS 139.480 exempt those with the appropriate license required to exempt from sales and use tax the sale or under KRS Chapter 154A; amend KRS 528.100 BR94 - Senator John Schickel purchase of feminine hygiene products; apply to to exempt limited or full casino gaming licensed (6/4/2019) sales or purchases made after August 1, 2020, but under KRS Chapter 154A; APPROPRIATION; before August 1, 2024; require Department of EFFECTIVE DATE DELAYED. AN ACT relating to criminal damage to Revenue to report to the Interim Joint Committee (Prefiled by the sponsor(s).) rental property. on Appropriations and Revenue the amount of Create a new section of KRS exemptions claimed. BR82 - Representative Rob Rothenburger, Chapter 512 to specify that a tenant who, having (Prefiled by the sponsor(s).) Representative Mark Hart no right to do so or any reasonable ground to (6/10/2019) believe that he or she has such right, intentionally or BR109 - Representative Regina Huff wantonly defaces, destroys, or damages residential (9/25/2019) AN ACT relating to tuition benefits and rental property is to be charged with violating KRS making an appropriation therefor. 512.020, 512.030, or 512.040 as appropriate. Direct the Transportation Cabinet Amend KRS 164.2841, relating to (Prefiled by the sponsor(s).) to designate mile-point 22 on Interstate 75, in college tuition benefits for spouses and children of Whitley County as the “Veterans Suicide Memorial specified emergency response personnel and public BR95 - Representative Thomas Huff Mile”; erect the appropriate signage denoting this employees who have died in the course of their (9/9/2019) designation. duties to specify that the beneficiary is eligible for up (Prefiled by the sponsor(s).) to a maximum of 128 credit hours of undergraduate AN ACT relating to motor vehicle titles. instruction; amend KRS 164.2842, relating to college Amend KRS 186A.170, to require BR113 - Representative Jason Nemes tuition benefits for spouses and children of specified delivery of a motor vehicle title upon which there is a (6/6/2019) emergency response personnel and public employees security interest to the holder of the security interest who have been totally and permanently disabled rather than the owner of the vehicle; amend KRS AN ACT relating to call centers. in the course of their duties to specify that the 186.045 to require the holder of a security interest Create a new section of KRS

128 2019 Interim LEGISLATIVE RECORD Chapter 337 to require an employer intending to (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) relocate a call center from Kentucky to a foreign country to notify the secretary of the Labor Cabinet BR121 - Representative Steve Riley BR127 - Representative at least 120 days prior to such relocation; require (7/19/2019) (7/9/2019) the secretary to compile a list of employers that have relocated a call center to a foreign country; amend AN ACT relating to long-term care AN ACT proposing an amendment to KRS 337.990 to create a civil penalty of not more administrators. Section 170 of the Constitution of Kentucky relating than $1,000 for each violation; provide short title. Amend KRS 216A.070 to extend to exemptions from taxation. (Prefiled by the sponsor(s).) temporary permits from a period not to exceed 6 Propose to amend Section 170 months to 9 months. of the Constitution of Kentucky to exempt certain BR117 - Senator C.B. Embry Jr. (Prefiled by the sponsor(s).) veterans’ organizations from property taxation; (8/20/2019) provide ballot question with proposed amendment; BR124 - Representative Regina Huff submit to voters for ratification or rejection. AN ACT relating to the taxation of pension (9/25/2019) (Prefiled by the sponsor(s).) income. Amend KRS 141.019 to increase AN ACT relating to bus safety. BR132 - Senator Reginald Thomas the pension income exclusion from $31,110 to Amend KRS 186.560 to allow the (8/20/2019) $41,110. Transportation Cabinet to revoke the license of any (Prefiled by the sponsor(s).) operator of a motor vehicle for a period of 90 days, AN ACT relating to wages. upon receiving record of his or her conviction of Amend KRS 337.010 to increase BR118 - Senator C.B. Embry Jr. illegally passing a school or church bus as outlined in the applicable threshold of employees of retail (9/5/2019) KRS 189.370; amend KRS 189.370 to conform. stores and service industries from $95,000 to (Prefiled by the sponsor(s).) $500,000 average annual gross volume of sales for AN ACT relating to solid waste. the employer; amend KRS 337.275 to raise the state Amend KRS 224.40-310 to modify BR125 - Representative Michael Lee Meredith, minimum wage to $8.20 per hour on July 1, 2020, the definition of “waste disposal facility” to specify Representative Patti Minter, Representative Tim $9.15 per hour on July 1, 2021, $10.10 per hour on that all residual landfills are included in the process Moore, Representative Jason Petrie, Representative July 1, 2022, $11 per hour on July 1, 2023, $12.05 of local determination and remove the exception Phillip Pratt, Representative Melinda Prunty, per hour on July 1, 2024, $13.10 per hour on July 1, for private facilities that dispose of waste on their Representative Brandon Reed, Representative 2025, $13.95 per hour on July 1, 2026, and $15 per own private property; amend KRS 224.40-315 Steve Riley, Representative Bart Rowland, hour on July 1, 2027, and to raise the state minimum to remove the exception for private facilities that Representative Steve Sheldon, Representative wage for tipped employees to $2.13 per hour on dispose of their own waste on their own property Wilson Stone, Representative Walker Wood Thomas, the effective date of the Act, $3.05 per hour on July from the requirements to obtain approval from Representative Ken Upchurch 1, 2021, $3.95 per hour on July 1, 2022, and $4.90 local governing body when a municipal solid waste (7/9/2019) per hour on July 1, 2023; include anti-preemption disposal facility seeks to expand or construct a language permitting local governments to establish facility. AN ACT relating to the Bowling Green minimum wage ordinances in excess of the state (Prefiled by the sponsor(s).) Veterans Center, making an appropriation therefor, minimum wage. and declaring an emergency. (Prefiled by the sponsor(s).) BR119 - Senator C.B. Embry Jr. Appropriate to the Department (8/20/2019) of Veterans’ Affairs $2,500,000 from the General BR133 - Representative Regina Huff Fund in fiscal year 2019-2020 for design and (6/12/2019) AN ACT relating to road safety. preconstruction costs for the Bowling Green Amend KRS 512.070 to include, Veterans Center; stipulate that appropriations in this AN ACT relating to road safety. as criminal littering, permitting unsafe amounts of Act shall be paid from the General Fund Surplus Amend KRS 512.070 to include, leaves or mowed grass to remain on a highway. Account or the Budget Reserve Trust Fund Account; as criminal littering, permitting unsafe amounts of (Prefiled by the sponsor(s).) APPROPRIATION; EMERGENCY. mowed grass to remain on a highway. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) BR120 - Representative Steve Riley, Representative Jason Nemes, Representative Lisa Willner BR126 - Representative Josie Raymond BR136 - Representative Robert Goforth, (7/9/2019) (7/22/2019) Representative Joe Graviss, Representative Jason Nemes, Representative Steve Sheldon, Representative AN ACT relating to corporal punishment AN ACT relating to bullying. Jim Stewart III in schools. Amend KRS 158.148 to include (8/1/2019) Create a new section of KRS incidents that occur at non-school-sponsored events 158.440 to 158.449 to define “corporal punishment”; or through the use of technology in the definition of AN ACT relating to school bus safety and prohibit a person employed by a school district bullying; require a school district’s code of acceptable making an appropriation therefor. from using corporal physical discipline; amend KRS behavior to include notification procedures for Create a new section of KRS 158.444 to remove corporal punishment as a form of parents in situations of alleged bullying; require Chapter 160 to define “owner,” “recorded images,” discipline in a school; amend KRS 503.110 to remove the school district’s code of acceptable behavior to “school bus stop arm camera,” and “third party the exception that permitted the use of physical force include procedures for restoring a student’s sense of designee”; create a new section of KRS Chapter 160 by a teacher against a minor. safety. to require each local school district to install and THE KENTUCKY GENERAL ASSEMBLY 129 maintain school bus stop arm cameras on daily route local school district, 10 percent to the Kentucky KRS 189.292; amend KRS 186.452 and 186.454 to school buses by August 1, 2023; allow districts to Department of Education, and 10 percent to local conform; repeal KRS 189.294. contract for purchase and maintenance of cameras; law enforcement. (Prefiled by the sponsor(s).) allow districts to contract for the processing of an (Prefiled by the sponsor(s).) alleged violation of KRS 189.370(1); require school BR176 - Senator Danny Carroll districts to establish procedures or contract with a BR139 - Representative Kim King (7/22/2019) third-party designee prior to utilizing school bus (6/14/2019) stop arm cameras; provide an emergency exception AN ACT relating to road safety. to the stop arm requirement; permit school districts AN ACT relating to assistance dogs. Amend KRS 512.070 to include, with a population density equal to or less than 100% Amend KRS 258.500 to prohibit as criminal littering, permitting unsafe amounts of of the state average to apply for special permission the misrepresentation of assistance dogs; allow mowed grass to remain on a highway. to suspend the stop arm requirement for up to five peace officers to investigate; amend KRS 258.991 to (Prefiled by the sponsor(s).) years; establish requirements for school districts conform and to remove outdated references. granted special permission to suspend the stop (Prefiled by the sponsor(s).) BR178 - Representative Attica Scott arm requirement; require the Kentucky Board of (9/11/2019) Education to promulgate administrative regulations; BR143 - Representative Lynn Bechler create a new section of KRS Chapter 160 to establish (9/9/2019) AN ACT relating to taxation. annual on-site compliance inspections for school Amend KRS 139.010 to define districts and penalties for noncompliance; create a AN ACT relating to child abuse and “diapers”; amend KRS 139.480 to exempt from sales new section of KRS Chapter 174 to define “’owner,” declaring an emergency. and use tax the sale or purchase of diapers, breast “school bus stop arm camera”, and “third-party Amend KRS 500.050 to remove pumps, and certain baby products; provide that the designee”; require the Transportation Cabinet or the five-year statute of limitations for misdemeanor exemptions apply to sales or purchases made after third-party designee to review images for violations sex offenses against minors and allow prosecution August 1, 2020, but before August 1, 2024; require of KRS 189.370(1) recorded by school bus stop arm to be commenced at any time; amend KRS 413.249 the Department of Revenue to report to the Interim cameras after July 1, 2021, and issue civil citations to remove the ten-year statute of limitations for civil Joint Committee on Appropriations and Revenue the for violations; establish civil penalties for a violation actions arising from childhood sexual assault or amount of exemptions claimed. of KRS 189.370 recorded by a school bus stop arm abuse and allow a suit to be commenced at any time; (Prefiled by the sponsor(s).) camera after July 1, 2021; require the Transportation amend KRS 620.030, relating to the requirement Cabinet to adopt a uniform civil citation form and to report child abuse, to limit the clergy-penitent BR179 - Representative Jerry Miller establish the form’s minimum contents; establish exemption and make any person who intentionally (9/9/2019) notification requirements; require a recipient of fails to report guilty of a Class D felony; amend KRS a uniform civil citation to pay civil penalty or 620.050, relating to the reporting of child abuse, AN ACT relating to the promotion of living submit proof of a criminal citation or appeal the to limit the clergy-penitent exemption; provide for donor human organ and bone marrow donation. uniform civil citation to the Transportation Cabinet severability; EMERGENCY. Create a new section of KRS within 30 days; grant the Transportation Cabinet (Prefiled by the sponsor(s).) Chapter 18A to allow full-time employees of appellate powers and authority; establish potential the Commonwealth of Kentucky a paid leave of defenses the Transportation Cabinet may consider BR160 - Representative Kevin Bratcher, absence of 240 hours for donating a human organ for uniform civil citations; allow for suspension Representative Joe Graviss and 40 hours for donating bone marrow and to set of registration for failure to pay a fine, require (7/11/2019) requirements for the paid leave of absence; amend third- party designee to notify the Transportation KRS 141.010 to define “human organ” and “qualified Cabinet of the need to release a suspension within AN ACT relating to state symbols. organ donation expenses”; amend KRS 18A.025 1 business day of payment; appropriate 80 percent Create a new section of KRS and 18A.110 to conform; amend KRS 141.019 to of funds collected by the Transportation Cabinet Chapter 2 to name and designate as the official pets allow a tax deduction in an amount equal to the for a uniform civil citation to the school district; of Kentucky domestic cats and dogs that reside in or qualified organ donation expenses incurred by a allow a third-party designee to keep up to 80 percent have been adopted from Kentucky animal shelters or taxpayer up to $10,000 and require reporting by the of funds but no more than $160 per civil penalty rescue organizations. Department of Revenue; amend KRS 131.190 to collected by a third party designee; appropriate 10 (Prefiled by the sponsor(s).) allow the Kentucky Department of Revenue to report percent of all funds collected from a uniform civil organ donation tax deduction data to the Legislative citation to the Kentucky Department of Education; BR166 - Representative James Tipton, Research Commission. appropriate 10 percent of all funds collected from a Representative Steve Sheldon (Prefiled by the sponsor(s).) uniform civil citation to the Transportation Cabinet; (8/1/2019) appropriate any remaining funds collected by a third BR180 - Representative Patti Minter party designee to the local school district; provide AN ACT relating to operating a motor (7/3/2019) that a uniform civil citation shall not result in points vehicle. against a driving record; require the Transportation Amend KRS 189.292 to provide AN ACT relating to mandatory benefits for Cabinet to promulgate administrative regulations that no person shall use a personal communication health benefit plans. necessary to effectuate the purpose of administering device while operating a motor vehicle; set forth Amend KRS 304.17A-200 to stop arm camera use, enforcement, and calibration; exceptions; provide that persons under the age of extend health-status eligibility rules to individual amend KRS 189.990 to appropriate 80 percent of 18 shall not use a personal communication device and employer-organized association markets; funds collected from criminal fines levied by law while driving, except for emergencies; amend KRS authorize insurance commissioner to designate enforcement for violation of KRS 189.370 to the 189.990 to set forth penalties for the violation of additional health status-related factors; prohibit

130 2019 Interim LEGISLATIVE RECORD adjustment of premium or contribution amounts Repeal KRS 237.109, which information in order to report abuse. for group health benefit plans on the basis of genetic provides authorization to carry concealed deadly (Prefiled by the sponsor(s).) information; amend KRS 304.17A-220 to remove weapons without a license; amend KRS 527.020 and requirements relating to preexisting condition 237.115 to conform. BR206 - Senator C.B. Embry Jr. exclusions; repeal and reenact KRS 304.17A-230 to (Prefiled by the sponsor(s).) (8/20/2019) define “preexisting condition exclusion”; prohibit health benefit plans in any market from imposing BR203 - Representative Mark Hart AN ACT relating to solid waste. any preexisting condition exclusion; amend KRS (8/20/2019) Amend KRS KRS 68.178 to delete 304.17A-155, 304.17A-250, 304.17A-430, 304.17A- incidental or residual waste facilities from the 706, 304.17B-001, 304.17B-019, and 304.18-114 to AN ACT relating to arts education. exclusion in the description of waste management conform; provide that provisions of Act apply to all Create a new section of KRS facilities; allow fiscal courts to license solid waste health benefit plans issued or renewed on or after Chapter 158 to require schools to offer all students landfills and residual landfills and assess increased January 1, 2021; EFFECTIVE January 1, 2021. instruction in the visual and performing arts, submit fees for accepting wastes outside of the waste (Prefiled by the sponsor(s).) an annual report to the Department of Education, planning area; amend KRS 224.40-315 to delete the and implement school policies regarding visual and exclusions from the definition of “municipal solid BR181 - Representative Brandon Reed, performing arts instruction; require the Department waste disposal facility.” Representative Bart Rowland, Representative of Education to develop visual and performing arts (Prefiled by the sponsor(s).) Danny Bentley, Representative John Bam Carney, program standards, guidelines on model programs, Representative Chris Freeland, Representative and strategies and initiatives for meeting the BR212 - Representative Regina Huff Robert Goforth, Representative Regina Huff, requirements of the section; require the Department (10/2/2019) Representative Derek Lewis, Representative of Education to provide resources, assessment tools, Michael Lee Meredith, Representative Steve Riley, and a reporting checklist to schools; require the AN ACT relating to operating a motor Representative Dean Schamore, Representative Steve Department of Education to report to the Interim vehicle. Sheldon, Representative John Sims Jr, Representative Joint Committee on Education by December 1, 2021, Amend KRS 189.292 to provide Tommy Turner, Representative Russell Webber on the status of schools meeting the requirements that no person shall use a personal communication (7/1/2019) of this section; amend KRS 158.6453 to require the device or stand-alone electronic device while school profile report to be included in the school operating a motor vehicle; set forth exceptions; AN ACT relating to time. report card and require the visual and performing provide that persons under the age of 18 shall not Create a new section of KRS arts program data to be included in the school profile use a personal communications device while driving, Chapter 2 to adopt year-round daylight saving report; amend KRS 160.345 and 158.153 to conform; except for emergencies; amend KRS 189.990 to set time in the state of Kentucky if authorized by the cite the Act as the Arts Education Equity Act. forth penalties for the violation of KRS 189.292; United States Congress; EFFECTIVE upon the first (Prefiled by the sponsor(s).) amend KRS 186.452, 186.454, and 189.2327 to Sunday of November following passage of enabling conform; repeal KRS 189.294. legislation by Congress. BR204 - Representative Jim Gooch Jr. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) (8/29/2019) BR215 - Representative Regina Huff BR182 - Senator Danny Carroll AN ACT relating to key infrastructure (8/5/2019) (8/20/2019) asset. Amend KRS 511.100 to change AN ACT relating to the taxation of pension AN ACT relating to assisted-living the definition of “key infrastructure assets” to income, making an appropriation therefor, and communities. specify that natural gas or petroleum pipelines are declaring an emergency. Create a new section of KRS the type of pipelines covered in the definition and Amend KRS 141.019 to increase 194A.700 to 194A.729 to prohibit certification or include other types of infrastructure assets; amend the pension income exclusion from $31,110 to certification renewal of an assisted-living community KRS 512.020 to include tampering with, impeding, $41,110; apply retroactively for taxable years if it is owned, managed, or operated by any person or inhibiting operations of a key infrastructure beginning on or after January 1, 2018; require the convicted of certain crimes or listed on an abuse list; asset in the offense of criminal mischief in the first Department of Revenue to automatically issue exempt owner of an assisted-living facility certified degree; create a new section of KRS 411 that a civil refunds; APPROPRIATION; EMERGENCY. as of July 1, 2020; amend KRS 194A.700 to amend action may be maintained against a person that (Prefiled by the sponsor(s).) definitions; amend KRS 194A.707 to make changes compensates or remunerates a person to violate KRS to the appeals and renewal processes; amend KRS 512.020 and the compensated person is convicted of BR221 - Senator Phillip Wheeler 194A.717 to prohibit on-site staff person from criminal mischief in the first degree. (10/7/2019) being shared with another level of care; amend KRS (Prefiled by the sponsor(s).) 194A.723 to permit the cabinet to initiate injunctive AN ACT relating to prescription insulin. relief in Circuit Court. BR205 - Senator C.B. Embry Jr. Amend KRS 304.17A-148 to (Prefiled by the sponsor(s).) (8/20/2019) cap the cost-sharing requirements for prescription insulin at $100 per 30-day supply; create a BR187 - Representative Charles Booker AN ACT relating to veterinarians. new section of KRS Chapter 315 to require (7/22/2019) Creates a new section of KRS pharmaceutical manufacturers and wholesale Chapter 321 to require that a veterinarian report distributors to rebate individuals for a portion of AN ACT relating to carrying concealed abuse and to allow immunity for a good faith report; their out-of-pocket expenses paid for prescription weapons. amends KRS 321.185 to allow veterinarians to release insulin; EFFECTIVE January 1, 2021. THE KENTUCKY GENERAL ASSEMBLY 131 (Prefiled by the sponsor(s).) and to prohibit the director or family member from Wheatley, Representative Rob Wiederstein being a part owner of a professional team or a board (8/21/2019) BR231 - Representative Attica Scott member of a college or university that engages in (7/26/2019) collegiate sports upon which sports wagers may AN ACT relating to wages. be placed; amend KRS 154A.050 to include sports Amend KRS 337.010 to increase AN ACT relating to discriminatory wagering; amend KRS 154A.060 to include sports the applicable threshold of employees of retail practices against a person. wagering and to include contracts for the purchase stores and service industries from $95,000 to Amend KRS 344.010 to provide of goods and services necessary for sports wagering; $500,000 average annual gross volume of sales for definitions of “protective hairstyle” and “race” that require monthly and annual reports to be submitted the employer; amend KRS 337.275 to raise the state include traits historically associated with race. to the Kentucky Gaming Commission; amend KRS minimum wage to $8.20 per hour on July 1, 2020, (Prefiled by the sponsor(s).) 154A.063 to permit sports wagering on collegiate $9.15 per hour on July 1, 2021, $10.10 per hour on and professional sports contests; amend KRS July 1, 2022, $11 per hour on July 1, 2023, $12.05 BR233 - Representative Attica Scott 154A.065 to prohibit accepting sports wagers on per hour on July 1, 2024, $13.10 per hour on July 1, (8/20/2019) the outcomes of contests involving horses; amend 2025, $13.95 per hour on July 1, 2026, and $15 per KRS 154A.070 to include sports wagering and hour on July 1, 2027, and to raise the state minimum AN ACT relating to cosmetic services. require contracts to be in accord with administrative wage for tipped employees to $2.13 per hour on Amend KRS 317A.155 to permit regulations of the Lottery Corporation and the the effective date of the Act, $3.05 per hour on July a cosmetologist, esthetician, or nail technician Kentucky Gaming Commission; amend KRS 1, 2021, $3.95 per hour on July 1, 2022, and $4.90 to operate outside of a licensed establishment 154A.090 to stipulate that sports wagering retailers per hour on July 1, 2023; include anti-preemption for persons with physical mobility limitations, as aggrieved by a decision of the board may appeal to language permitting local governments to establish attested by a physician in writing, or for persons the Kentucky Gaming Commission; amend KRS minimum wage ordinances in excess of the state residing in a long-term care nursing facility or 154A.110 to include sports wagering; stipulate that minimum wage. assisted living facility. unclaimed sports wagering prize money be added (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) to the sports wagering distribution trust fund; to prohibit sports wagers from being accepted from BR240 - Representative Lynn Bechler, Representative BR236 - Senator Julian Carroll members or coaches of professional or collegiate Brandon Reed, Representative Danny Bentley, (8/20/2019) team; amend 154A.120 to include sports wagering; Representative Myron Dossett, Representative amend KRS 154A.130 to specify net sports wagering Joseph Fischer, Representative Chris Fugate, AN ACT relating to sports wagering and receipts collected by lottery to be used for expenses Representative Robert Goforth, Representative making an appropriation therefor. and moneys in excess of expenses shall be dedicated David Hale, Representative Richard Heath, Establish KRS Chapter 239 and to the sports wagering distribution trust fund; Representative Thomas Huff, Representative Kim create new sections to define “amateur athletics,” amend KRS 154A.400 to include sports wagering King, Representative Bobby McCool, Representative “collegiate sports contest,” “commission,” “principal,” and stipulate the criteria for selecting sports Steve Sheldon, Representative Walker Wood Thomas, “professional sports contest,” “sports wager,” and wagering retailers shall be developed in consultation Representative Tommy Turner, Representative Ken “sports wagering”; create the Kentucky Gaming with the Kentucky Gaming Commission; amend Upchurch, Representative Les Yates Commission; establish membership to be appointed KRS 154A.420 to include sports wagering and (9/10/2019) by the Governor with the advice and consent of the permit the Lottery Corporation to require a retailer Senate; establish the commission’s responsibilities to establish separate sports wagering electronic funds AN ACT relating to compliance with state and authority; require the Governor to appoint transfer accounts; amend KRS 154A.430, 154A.440, and federal law. an executive director and establish the executive 154A.600, and 154A.650 to include sports wagering; Amend KRS 65.133 to require director’s responsibilities; require the commission amend KRS 230.225 to permit the Kentucky Horse local law enforcement agencies and Kentucky State to promulgate administrative regulations relating to Racing Commission to oversee sports wagering at Police to enforce immigration laws; create a new sports wagering conducted by the Kentucky Lottery licensed racing associations; amend KRS 230.370 to section of KRS Chapter 65 to define terms, including Corporation, racing associations licensed under require administrative regulations relating to sports “sanctuary” and “sanctuary policy”; prohibit local KRS Chapter 230, and other locations; establish wagering to be developed in consultation with the governments from adopting sanctuary policies; licensing fees; prohibit persons from wagering on Kentucky Gaming Commission; amend KRS 243.500 establish hearing procedures for determination of an event in which they are a participant; establish to exempt the conduct of sports wagering licensed sanctuary status; provide for the withholding of state the sports wagering distribution trust fund and the or permitted under KRS Chapter 239; amend KRS funding from sanctuaries; create new sections of KRS uses of the fund; establish penalties for tampering 12.020 to administratively attach the Kentucky Chapter 164 to prohibit postsecondary educational with the outcome of a sporting event and wagering Gaming Commission to the Public Protection institutions from enrolling employing or contracting on a sporting event by a participant; create a new Cabinet. with illegal aliens; require postsecondary educational section of KRS Chapter 138 to impose an excise (Prefiled by the sponsor(s).) institutions to keep records of immigration status; tax on sports wagering at 25 percent of net sports provide for the withholding of state funding from wagering receipts; amend KRS 138.1817 to permit BR237 - Representative Kathy Hinkle, postsecondary educational institutions that enroll, the Department of Revenue to work with the Representative , Representative employ, or contract with illegal aliens; limit who may commission to restrict licensure in the event that Charles Booker, Representative Jeffery Donohue, be considered a Kentucky resident for in-state tuition sports wagering taxes are not paid; amend KRS Representative Derrick Graham, Representative Joe purposes; EFFECTIVE in part January 1, 2021. 154A.010 to revise the definition of “amateur sports Graviss, Representative Chris Harris, Representative (Prefiled by the sponsor(s).) contest,” and to define “collegiate sports contest,” Joni Jenkins, Representative Nima Kulkarni, “professional sports contest,” “sports wager,” and Representative Maria Sorolis, Representative BR241 - Representative Joseph Fischer “sports wagering”; amend KRS 154A.030 to conform Cherlynn Stevenson, Representative Buddy (10/4/2019)

132 2019 Interim LEGISLATIVE RECORD the administrative regulations promulgated by the of Workplace Standards to notify the Energy and AN ACT proposing an amendment to the Department of Fish and Wildlife Resources relating Environment Cabinet of any employer engaged in Constitution of Kentucky relating to abortion. to the hunting of coyotes at night to: require hunters the severance, preparation, or transportation of Propose to create a new section of to carry a hunting license, unless license-exempt, minerals that is not compliant with the performance the Constitution of Kentucky to state that Kentucky’s allow the use of electronic or mouth calls and bonding requirements of KRS 337.200; amend KRS Constitution does not secure or protect a right to decoys, specify which weapons may be used, prohibit 350.085 to prohibit the approval of mining permit abortion or funding of abortion. hunting of coyotes at night on wildlife management applications for applicants that are not compliant (Prefiled by the sponsor(s).) areas or during any deer gun or muzzle loading with the requirements of KRS 337.200; amend KRS season, prohibit hunting coyotes at any time from 350.130 to make compliance with the requirements BR247 - Representative Matthew Koch a road or motor vehicle; prohibit hunting coyotes of KRS 337.200 a condition of a mining permit (8/16/2019) at night using white light, and place no bag limit issued under KRS Chapter 350 or the administrative on coyotes; and amend KRS 150.395 to allow the regulations promulgated thereunder; amend KRS AN ACT relating to property taxes for hunting of coyotes at night using only non-white 337.200 to remove references to liquidated damages veteran service organizations. light. and attorneys’ fees as provided by law; amend KRS Create a new section in KRS (Prefiled by the sponsor(s).) 337.994 to require that all penalties collected for Chapter 132 to exempt veteran service organizations violations of KRS 337.200 be paid to employees from ad valorem taxation if over fifty percent of the BR263 - Representative Bobby McCool injured by the employer’s failure to post the organization’s annual net income is expended on (8/21/2019) performance bond; APPROPRIATION. behalf of veterans and other charitable causes; amend (Prefiled by the sponsor(s).) KRS 132.010 to define veteran service organization; AN ACT relating to wage theft. apply to property assessed on or after January 1, Create a new section of Chapter BR275 - Senator Stephen Meredith 2021. 514 to create the offense of theft of wages and (8/20/2019) (Prefiled by the sponsor(s).) establish penalties; define employer and employee; amend KRS 336.080 to indicate the secretary may AN ACT relating to Medicaid payments. BR252 - Representative Walker Wood Thomas enter places of employment without unreasonable Amend KRS 304.17A-527 to (9/17/2019) delay to inspect a place of employment; amend require Medicaid managed care organizations KRS 337.020 to allow the commissioner to charge to provide all payment schedules utilized to AN ACT relating to the Kentucky and collect past due wages; amend KRS 337.070 to reimburse health care providers with whom they Community and Technical College System, require certain employers to include rate of pay, the have maintained a contractual relationship for the making an appropriation therefor, and declaring an number of hours worked, and the total amount of previous three months to the Medicaid Oversight emergency. gross pay earned on wage statements provided to and Advisory Committee on a quarterly basis for Create a new section of KRS employees; amend KRS 337.320 to require employers the committee’s review; create a new section of KRS Chapter 164 to establish the Kentucky Community to keep record for three years of the name, address, Chapter 205 to require that services provided in and Technical College endowment match fund; and occupation of each employee, the rate of pay and rural counties be reimbursed at least at the median transfer $3 million annually to the fund from general amount paid to each employee, a list of personnel amount paid to an urban health care provider within fund; authorize promulgation of administrative policies provided to the employees, and a copy of the the nearest metropolitan statistical area; establish a regulations. wage statement provided to each employee; create penalty that goes to the underpaid provider. . (Prefiled by the sponsor(s).) a new section of Chapter 337 to require employers (Prefiled by the sponsor(s).) to provide to an employee a written notice at the BR257 - Senator Danny Carroll time of hire that sets forth the rate and method of BR278 - Senator Stephen Meredith (8/20/2019) pay, the employees employment status, accruals of (8/20/2019) time, deductions that may be made from pay, and AN ACT relating to employees of quasi- the name and address of the employer, and require AN ACT relating to Medicaid managed care governmental agencies. the employer to keep a copy of the notice signed by contracts. Create a new section of KRS the employee; amend KRS 337.990 to include a civil Create a new section of KRS Chapter 18A to allow state hiring preference for penalty for failure to provide the written notice to Chapter 205 to limit the number of managed care employees of quasi-governmental agencies ceasing employee and maintain a copy of the signed notice. organization (MCO) contracts to operate the participation in the Kentucky Retirement Systems; (Prefiled by the sponsor(s).) Medicaid program to three. require an employing state agency offer an interview (Prefiled by the sponsor(s).) to all finalist entitled to preference unless five or BR270 - Senator Johnny Ray Turner more of the finalists are entitled to preference; (8/15/2019) BR285 - Representative Jim DuPlessis require that if more than five finalists are entitled to (9/6/2019) preference, the employing state agency shall offer an AN ACT relating to mining permits and interview to no fewer than five. making an appropriation therefor. Urge Congress to require car manufacturers (Prefiled by the sponsor(s).) Create a new section of KRS to install safety features to help prevent children Chapter 350 to require the Energy and Environment from being left in hot cars. BR258 - Representative Derek Lewis Cabinet to notify the Department of Workplace (Prefiled by the sponsor(s).) (9/10/2019) Standards of any applicant or permittee that may be subject to the performance bonding requirements of BR288 - Representative Regina Huff AN ACT relating to hunting coyotes. KRS 337.200; create a new section of KRS Chapter (9/25/2019) Amend KRS 150.360 to require 337 to require the commissioner of the Department THE KENTUCKY GENERAL ASSEMBLY 133 AN ACT relating to veterinarians. prohibit copayments to be charged in the Kentucky 237.104 to conform; amend KRS 506.080 to specify Create a new section of KRS Children’s Health Insurance Program. that the offense of facilitation includes assistance Chapter 321 to require that a veterinarian report (Prefiled by the sponsor(s).) in providing firearms; amend KRS 508.020 to suspected animal abuse to an animal control officer; include physical injury to a minor by virtue of the amend KRS 321.185 to allow veterinarians to report BR334 - Representative Josie Raymond intentional discharge of a firearm within the offense suspected animal abuse. (8/23/2019) of assault in the second degree; create a new section (Prefiled by the sponsor(s).) of KRS Chapter 527 to create the offense of criminal AN ACT relating to full-day kindergarten. purchase or disposal of a weapon; amend KRS BR297 - Senator John Schickel Amend KRS 158.060 to remove 527.040 to require that the sentence for a felon in (8/20/2019) language that allows for half-day kindergarten possession of a firearm be served subsequent to any programs; amend KRS 157.320, 157.360, and 158.030 other felony sentence; amend KRS 527.070 to include Proclaim September 2020 as to conform. postsecondary education facilities within the existing Prostate Cancer Awareness Month in Kentucky. (Prefiled by the sponsor(s).) ban on firearms in schools; amend KRS 532.030 (Prefiled by the sponsor(s).) to require the judge pronouncing a defendant BR339 - Representative George Brown Jr guilty but mentally ill to demand the surrender of BR300 - Representative Rob Wiederstein (8/27/2019) the person’s firearms; create a new section of KRS (10/14/2019) Chapter 237 to require the State Police to promulgate AN ACT relating to the rural hospital tax administrative regulations relating to the licensing AN ACT relating to adopting the most cost- credit. of persons to possess handguns and assault weapons, effective alternative in administrative regulations Create a new section of KRS the registration of handguns and assault weapons, having a major economic impact on the Kentucky Chapter 141 to establish the rural hospital and the logging of firearms and ammunition sales economy. organization donation tax credit; amend KRS effective January 1, 2021; amend KRS 532.025 to Create new sections of KRS 141.0205 to order the new tax credit; amend KRS conform; amend KRS 237.115 to conform; repeal Chapter 13A to establish requirements and 131.190 to allow reporting by the Department of KRS 65.870; EMERGENCY; some provisions procedures for an administrative regulation that Revenue. EFFECTIVE January 1, 2021. constitutes a major economic action; create the (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) Regulatory Economic Analysis Advisory Group to consult on these regulations; set the group’s BR341 - Representative George Brown Jr BR343 - Representative George Brown Jr membership, powers, and duties; require a (9/4/2019) (8/27/2019) promulgating agency to provide listed documents to the group and the public at least 60 days before AN ACT relating to firearms. AN ACT relating to criminal histories of filing the regulation; direct an agency to conduct and Create a new section of KRS job applicants. publish a detailed analysis of any major economic Chapter 527 to make it a crime to unlawfully store a Create a new section of KRS action regulation, including a cost-benefit analysis; firearm; establish elements of the crime for recklessly Chapter 344 to prohibit employers from considering establish filing requirements for these regulations; allowing access to an unsecured firearm by a minor; or requiring disclosure of prior criminal history require an agency to publicly provide a framework establish the crime as a Class B misdemeanor unless as part of the initial job application; title the Act for assessing the regulation; designate a short a physical injury or death results, in which case it is a “Ban the Box - The Criminal Record Employment title of the “Kentucky Administrative Regulation Class A misdemeanor. Discrimination Act.” Accountability Act of 2020”; amend KRS 13A.010 (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) to define a major economic action; amend KRS 13A.030 to add a defective major economic action BR342 - Representative George Brown Jr BR355 - Representative Jeffery Donohue to the list of reasons a subcommittee may find (9/4/2019) (9/9/2019) a regulation deficient; amend KRS 13A.3104 to establish certification letter procedures for a major AN ACT relating to firearms and declaring AN ACT relating to tax credits for airport economic action regulation; stagger the initial terms an emergency. noise mitigation. of the appointed members of the advisory group. Create new sections of KRS Create a new section of KRS (Prefiled by the sponsor(s).) Chapter 237 to specify definitions for “assault Chapter 141 to establish a refundable income weapons,” “large-capacity ammunition-feeding tax credit for the costs of mitigating noise from a BR315 - Senator Stephen Meredith devices,” and “ammunition sellers”; require commercial airport for taxable years beginning (8/20/2019) background checks for private firearms sales; on or after January 1, 2020, but before January 1, require reporting to law enforcement of firearm 2024; amend KRS 131.190 to conform; amend KRS AN ACT relating to copayments by medical and ammunition thefts and losses; require the safe 141.0205 to order the credit. assistance recipients. storage of firearms; amend KRS 395.250 to require (Prefiled by the sponsor(s).) Amend KRS 205.6312 to prohibit an estate’s inventory to list each firearm; amend KRS the cabinet or a managed care organization 403.735 to require judges, when issuing an order BR356 - Representative Jeffery Donohue contracted to provide services from instituting of protection, to consider whether a person against (9/9/2019) copayments, cost sharing, or similar charges to whom the order is entered should be prohibited be paid by any medical assistance recipients, their from possessing an firearm; amend KRS 504.030 to AN ACT relating to the sale or transfer of spouses, or parents, for any assistance provided require judges in criminal cases where a person is historic places. pursuant KRS Chapter 205, federal law, or any found not guilty by reason of insanity to demand the Amend KRS 171.382 to require the federal Medicaid waiver; amend KRS 205.6485 to surrender of the defendant’s firearms; amend KRS Finance and Administration Cabinet to give notice

134 2019 Interim LEGISLATIVE RECORD to the Kentucky Heritage Council 90 days prior education institution to provide free feminine Representative Russell Webber to the transfer or sale of a property nominated by hygiene products to women students; require the (10/10/2019) the Kentucky Historic Preservation Review Board governing boards of each public postsecondary to be listed on the National Register of Historic education institution to adopt policies for the Direct the Energy and Places; require the Kentucky Heritage Council distribution of free feminine hygiene products; Environment Cabinet and the Louisville Metro to consult with the Finance and Administration define feminine hygiene products. Air Pollution Control District to determine the Cabinet regarding the property’s historic, (Prefiled by the sponsor(s).) environmental benefits, related costs, and potential cultural, and archeological resources; require the alternatives to the federal reformulated gasoline Kentucky Heritage Council to make a written BR412 - Senator Dennis Parrett requirements currently imposed in Jefferson County recommendation to the Finance and Administration (9/19/2019) and partial areas in Bullitt and Oldham Counties. Cabinet on whether the property should have a (Prefiled by the sponsor(s).) preservation easement; if a preservation easement AN ACT relating to veteran-owned is recommended, no sale or transfer of the property nonprofit businesses. BRs by Sponsor shall take place until the easement is listed on the Amend KRS 14A.1-070 to add * - denotes primary sponsorship of BRs deed; amend KRS 82.660 to update council name. a nonprofit business which is at least 51 percent Senate (Prefiled by the sponsor(s).) unconditionally controlled by a veteran to the Carroll, Danny definition of “veteran-owned business”; amend KRS BR176*, 182*, 257* BR357 - Representative Jeffery Donohue 14A.2-060 and KRS 14A.2-165 to conform. Carroll, Julian M. (9/9/2019) (Prefiled by the sponsor(s).) BR236* Embry Jr., C.B. AN ACT relating to education. BR423 - Senator Stephen Meredith BR117*, 118*, 119*, 205*, 206* Amend KRS 158.785, relating to (10/1/2019) Meredith, Stephen the management of local school districts, to include BR275*, 278*, 315*, 423* criteria to review when completing a management AN ACT relating to the disposition of Parrett, Dennis audit; require the chief state school officer to provide human remains. BR412* a local district with written deficiencies found Amend KRS 367.93117 to allow Schickel, John through the management audit and corrective a court-appointed guardian or conservator to BR94*, 297* actions and a time frame for completion in order determine the disposition of remains after death Thomas, Reginald to exit assistance; specify that a district can only be if other alternatives have been exhausted; permit BR132* a “state managed district” after at least two years of cremation under specified circumstances. Turner, Johnny Ray unsuccessful assistance, criminal malfeasance, or (Prefiled by the sponsor(s).) BR270* insolvency; restrict the chief state school officer’s Wheeler, Phillip authority during state management to only those BR450 - Representative Attica Scott, Representative BR221* specific items found through the management audit; Charles Booker amend KRS 156.029 to require the Kentucky Board (9/25/2019) House of Education to include two at-large members who Adkins, Rocky are current or retired elementary or secondary AN ACT relating to gang violence. BR237 teachers; amend KRS 156.040 to clarify that a state Amend KRS 506.120 to remove Bechler, Lynn board member cannot hold any elective federal, language related to “criminal gang syndicate;” repeal BR143*, 240* state, county, or city office. KRS 506.135 relating to definitions, KRS 506.140 Bentley, Danny (Prefiled by the sponsor(s).) relating to criminal gang recruitment, KRS 506.150 BR7*, 105*, 181, 240 relating to criminal gang activity or recruitment, Booker, Charles BR403 - Representative Brandon Reed 506.160, relating to minimum service of sentence for BR23*, 61, 187*, 237, 450 (9/18/2019) defendant acting as a member of a criminal gang, Bratcher, Kevin D. KRS 506.170 relating to enhancement of penalty BR127*, 160*, 808 AN ACT relating to farmer suicide for conviction for criminal gang-related felonies, Brenda, R. Travis prevention and awareness. KRS 506.180 relating to cause of action by victim of BR102* Create a new section of KRS criminal gang incident, and KRS 506.190 relating to Bridges, Randy Chapter 2 to designate the Wednesday of National criminal gang-related property subject to forfeiture; BR37* Farm Safety Week, which is the third week of amend KRS 532.080 to conform. Brown Jr, George September, as “Farmer Suicide Prevention Day”. (Prefiled by the sponsor(s).) BR339*, 341*, 342*, 343* (Prefiled by the sponsor(s).) Carney, John Bam BR482 - Representative Regina Huff BR181 BR407 - Representative Attica Scott (10/4/2019) Donohue, Jeffery (9/13/2019) BR237, 355*, 356*, 357* Declare May 2020 to be Ehlers- Dossett, Myron AN ACT relating to providing free feminine Danlos Syndrome Awareness Month. BR240 hygiene products for women public postsecondary (Prefiled by the sponsor(s).) DuPlessis, Jim students. BR285* Create a new section of KRS BR808 - Representative Thomas Huff, Representative Fischer, Joseph M. Chapter 164 to require each public postsecondary Kevin Bratcher, Representative Jason Nemes, BR240, 241* THE KENTUCKY GENERAL ASSEMBLY 135 Freeland, Chris BR126*, 334* Barbers and Cosmetologists BR181 Reed, Brandon Boards and Commissions Fugate, Chris BR37, 125, 181*, 240*, 403* Budget and Financial Administration BR240 Riley, Steve C Goforth, Robert BR120*, 121*, 125, 181 Capital Construction BR136*, 181, 240 Rothenburger, Rob Cemeteries and Burials Gooch Jr., Jim BR82*, 83* Charitable Organizations and Institutions BR204* Rowland, Bart Children and Minors Graham, Derrick BR125, 181* Cities BR237 Schamore, Dean Civil Actions Graviss, Joe BR181 Civil Procedure BR61, 136, 160*, 237 Scott, Attica Civil Rights Hale, David BR27*, 61*, 79*, 107*, 178*, 231*, 233*, 407*, 450* Clergy BR240 Sheldon, Steve Consolidated Local Governments Harris, Chris BR125, 136, 166*, 181, 240 Constitution, Ky. BR237 Sims Jr, John Counties Hart, Mark BR36*, 181 Counties with Cities of the First Class BR82*, 83*, 203* Sorolis, Maria Counties, Charter Heath, Richard BR237 Counties, Urban BR240 St. Onge, Diane Courts Hinkle, Kathy BR6* Courts, Circuit BR61, 237* Stevenson, Cherlynn Courts, Fiscal Huff, Regina BR237 Crime Victims BR109*, 124*, 133*, 181, 212*, 215*, 288*, 482* Stewart III, Jim Crimes and Punishments Huff, Thomas BR136 Criminal Procedure BR95*, 240, 808* Stone, Wilson D Jenkins, Joni L. BR125 Deaths BR237 Thomas, Walker Deeds and Conveyances Keene, Dennis BR125, 240, 252* Disabilities and the Disabled BR80* Tipton, James Diseases King, Kim BR166* Dogs BR139*, 240 Turner, Tommy Driver Licensing Koch, Matthew BR181, 240 Drugs and Medicines BR247* Upchurch, Ken E Kulkarni, Nima BR125, 240 Economic Development BR61, 237 Webber, Russell Education, Elementary and Secondary Lewis, Derek BR181, 808 Education, Finance BR31*, 181, 258* Wheatley, Buddy Education, Higher Marzian, Mary Lou BR237 Effective Dates, Delayed BR61* Wiederstein, Rob Effective Dates, Emergency Massey, C. Ed BR4*, 76*, 237, 300* Elections and Voting BR85* Willner, Lisa Embalmers and Funeral Directors McCool, Bobby BR120 Emergency Medical Services BR240, 263* Yates, Les Energy Meredith, Michael BR47*, 240 Environment and Conservation BR125*, 181 Index Headings F Miller, Jerry T. Federal Laws and Regulations BR32*, 179* A Fees Minter, Patti Administrative Regulations and Proceedings Financial Responsibility BR125, 180* Advisory Boards, Commissions, and Committees Fire Prevention Moore, Tim Aeronautics and Aviation Firearms and Weapons BR125 Aged Persons and Aging Firefighters and Fire Departments Nemes, Jason Agriculture Fiscal Note BR45*, 113*, 120, 136, 808 Amusements and Recreation Fish and Wildlife Petrie, Jason Animals, Livestock, and Poultry Fuel BR125 Appropriations G Pratt, Phillip Athletics Gambling BR125 Attorney General General Assembly Prunty, Melinda Gibbons Attorney, Commonwealth’s Guardians BR72*, 125 Attorneys H Raymond, Josie B Health and Medical Services

136 2019 Interim LEGISLATIVE RECORD Highways, Streets, and Bridges S procedures - BR240 Historical Affairs Safety postsecondary institution, determination of, Holidays Science and Technology hearing procedures - BR240 Honorary Highway Designations Secretary of State State Police, firearm registration and sales - BR342 Horses and Horse Racing Sheriffs STEM teacher promise zone loan forgiveness, Hospitals and Nursing Homes Short Titles and Popular Names administration of - BR31 Hunting and Fishing Small Business Transportation I Special Districts Cabinet, school bus stop arm camera violation, Immigration Special Purpose Governmental Entities administrative proceedings - BR136 Inspections State Agencies Cabinet, school bus stop arm camera violation, Insurance, Health State Employees defenses to civil penalty - BR136 J State Symbols and Emblems Cabinet, school bus stop arm cameras, regulations Jails and Jailers Studies Directed for enforcement and proceedings - BR136 L Substance Abuse Voluntary Labor and Industry Surface Mining non-opioid directive, Cabinet for Health and Landlord and Tenant T Family Services, administrative regulations - BR7 Legislative Research Commission Taxation non-opioid directive, licensing boards, Licensing Taxation, Income--Corporate administrative regulations for - BR7 Liens Taxation, Income--Individual Local Government Taxation, Property Advisory Boards, Commissions, and Committees Local Mandate Taxation, Sales and Use Regulatory Economic Analysis Advisory Group, Lottery Teachers creation of - BR300 M Telecommunications Medicaid Time Aeronautics and Aviation Men Tobacco Noise mitigation, income tax credit for - BR355 Mental Health Traffic Safety Military Affairs and Civil Defense Transportation Aged Persons and Aging Minerals and Mining U Assisted-living communities, certification - BR182 Motor Vehicles Unemployment Compensation N United States Agriculture Noise Control Universities and Colleges Farmer Suicide Prevention Day, designating - BR403 Notices V Tax, sales and use, pasture, agricultural, and O Veterans horticulture land maintenance services, exemption Occupations and Professions Veterinarians of - BR102 Oil and Natural Gas W P Wages and Hours Amusements and Recreation Parks and Shrines Waste Management Casino gaming, licensing for - BR80 Peace Officers and Law Enforcement Women Sports wagering, licensing of - BR236 Personnel and Employment Workers’ Compensation Pharmacists Workforce Animals, Livestock, and Poultry Physicians and Practitioners Abuse of animals, reporting by veterinarian - Police, City and County BR Index BR205; BR288 Police, State Assistance dogs, prohibiting misrepresentation of Pollution Administrative Regulations and Proceedings - BR139 Property Board Coyotes, hunting at night, requirements - BR258 Property Valuation Administrators of Education, academic standards for African and Cruelty to equines, prohibition of - BR6 Public Buildings and Grounds Native American instruction - BR27 Shelter pets, official pets of Kentucky, name and Public Health of Education, school bus stop arm cameras, designate - BR160 Public Medical Assistance regulations for requirement and inspections - Public Officers and Employees BR136 Appropriations Public Records and Reports Cabinet for Health and Family Services, Medicaid Ambulance service assessment revenue fund, create Public Safety ambulance service provider assessment - BR83 - BR83 Public Utilities Department of Fish and Wildlife Resources, hunting Bowling Green Veterans Center, design and R coyotes at night - BR258 preconstruction - BR125 Race Relations KCTCS, endowment match fund, administration of Evidence-based decisions - BR76 Racing - BR252 KCTCS, endowment match fund, $3 million Reports Mandated Major economic action regulations, procedures for annually - BR252 Reproductive Issues - BR300 Mining performance bonds, distribution of funds Retirement and Pensions Sanctuary from penalties - BR270 Retroactive Legislation cities, determination of, establishment of hearing Passing

THE KENTUCKY GENERAL ASSEMBLY 137 stopped school bus, cited by police, criminal BR423 Clergy citation funds - BR136 Child abuse, reporting of - BR143 stopped school bus, recorded by camera, civil Charitable Organizations and Institutions penalty funds - BR136 KCTCS, endowment match - BR252 Consolidated Local Governments Pension income exclusion, retroactively raise - Fire districts and subdistricts, emergency ambulance BR215 Children and Minors service, provision of - BR45 STEM teacher promise zone scholarship fund, Abortion, constitutional amendment, no protected creation of - BR31 right - BR241 Constitution, Ky. Baby products and diapers, exemption of sales and Amendment, abortion, no protected right - BR241 Athletics use tax - BR178 Property tax, exemption, veterans’ service Assualt of intimidation of a sports official, penalties Bullying, organizations, proposed amendment - BR127 for - BR37 definition - BR126 Voting rights, prohibitions relating to - BR23 Public charter schools, repeal - BR61 notification of allegations of bullying, parents to Wagering on athletic contests, licensing of - BR236 receive - BR126 Counties Child abuse, reporting of - BR143 County waste planning areas, residual landfills, Attorney General Corporal physical discipline, use of, prohibiting licensing for - BR206 Kentucky Gaming Commission, appointment to - BR120 Emergency medical services personnel, disabled - BR236 Historical instruction, African and Native American or killed, tuition benefits for spouse or children Officer Shooting Review Board, establishment of history, requirements for - BR27 - BR82 - BR79 Kindergarten, full day of attendance for - BR334 Fire districts and subdistricts, emergency ambulance Regulatory Economic Analysis Advisory Group, Statute of limitations, childhood sexual abuse, service, provision of - BR45 membership on - BR300 criminal and civil actions - BR143 Firefighters, disabled or killed, tuition benefits for Unlawful storage of a firearm, prohibition of - spouse or children - BR82 Attorney, Commonwealth’s BR341 Law enforcement officers, disabled or killed, tuition Shooting of an individual by a law enforcement benefits for spouse or children - BR82 officer or deadly incident, investigation of - BR79 Cities Minimum wage, authority to establish - BR132; Emergency medical services personnel, disabled BR237 Attorneys or killed, tuition benefits for spouse and children Kentucky Gaming Commission, Commonwealth - BR82 Counties with Cities of the First Class Attorney’s Association member appointment to Fire districts and subdistricts, emergency ambulance Reformulated gasoline requirements, study of - - BR236 service, provision of - BR45 BR808 Firefighters, disabled or killed, tuition benefits for Barbers and Cosmetologists spouse and children - BR82 Counties, Charter Cosmetologists, practice outside of licensed Law enforcement officers, disabled or killed, tuition Fire districts and subdistricts, emergency ambulance establishments - BR233 benefits for spouse or children - BR82 service, provision of - BR45 Minimum wage, authority to establish - BR132; Boards and Commissions BR237 Counties, Urban Board Fire districts and subdistricts, emergency ambulance of Education, academic standards for African and Civil Actions service, provision of - BR45 Native American instruction - BR27 Criminal of Education, eligibility and membership - BR357 gangs, activities, offense, and penalties relating to Courts Kentucky Gaming Commission, creation of - BR236 - BR450 Criminal gangs, activities, offense, and penalties Officer Shooting Review Board, establishment of mischief in the first degree, personal or real relating to - BR450 - BR79 property damages, recovery of - BR204 State assistance and state management, Board of Statute of limitations, childhood sexual abuse - Courts, Circuit Education, process for - BR357 BR143 Assisted-living communities, initiate injunctive relief - BR182 Budget and Financial Administration Civil Procedure Bowling Green Veterans Center, design and Criminal gangs, activities, offense, and penalties Courts, Fiscal preconstruction - BR125 relating to - BR450 Waste management facilities, licensing for - BR206 Evidence-based decisions - BR76 Hair texture and hairstyle, expanding the definition Fiscal note requirements, establishment of - BR4 of race to include - BR231 Crime Victims Major economic action regulations, procedures for Child abuse, reporting of - BR143 - BR300 Civil Rights Criminal gangs, activities, offense, and penalties Employment discrimination, requirement of relating to - BR450 Capital Construction criminal history on job applications, prohibition Statute of limitations, childhood sexual abuse, Bowling Green Veterans Center, design and - BR343 criminal and civil actions - BR143 preconstruction - BR125 Hair texture and hairstyle, expanding the definition of race to include - BR231 Crimes and Punishments Cemeteries and Burials Assault of a sports official, increase penalty, Class D Disposition of remains, guardian to determine - felony - BR37

138 2019 Interim LEGISLATIVE RECORD Assistance dogs, prohibiting misrepresentation of prescription insulin drug, cost sharing, capped - BR139 - BR221 Education, Finance Assisted-living communities, certification prohibited prescription insulin drugs, cost sharing, rebate KCTCS, endowment match - BR252 - BR182 established - BR221 KHEAA, promise zone, STEM teacher loan Child abuse, reporting of - BR143 Ehlers-Danlos Syndome Awareness Month, forgiveness program, creation of - BR31 Corporal physical discipline of minor by teacher, use declaring - BR482 Sanctuary postsecondary institution, state funding, of, prohibiting - BR120 Prostate Cancer Awareness, September 2020 withholding of - BR240 Criminal recognizing - BR297 gangs, activities, offense, and penalties relating to Education, Higher - BR450 Dogs Emergency medical services personnel, disabled mischief in the first degree - BR204 Abuse of animals, reporting by veterinarian - or killed, tuition benefits for spouse or children Cruelty to equines, prohibition of - BR6 BR205; BR288 - BR82 Deadly weapons, concealed carry without license, Assistance dogs, prohibiting misrepresentation of Feminine hygiene products, free to students - BR407 repeal - BR187 - BR139 KCTCS, endowment match - BR252 Evidence-based decisions - BR76 Shelter pets, official pets of Kentucky, name and Law enforcement officers, disabled or killed, tuition Firearms, comprehensive regulation of - BR342 designate - BR160 benefits for spouse or children - BR82 Immigration laws, enforcement of, requiring - Sanctuary postsecondary institution, state funding, BR240 Driver Licensing withholding of - BR240 Intimidation of a sports official, establish offense, Personal communication device, use by driver, Class A misdemeanor - BR37 prohibiting - BR212 Effective Dates, Delayed Passing stopped school bus, cited by police, criminal School or church bus, illegal passing of, 90 day Call center relocations, January 1, 2021 - BR113 citation funds - BR136 operator’s license revocation - BR124 Constitutional amendment, passage of - BR80 Residential rental property, criminal mischief, Coverage for preexisting conditions, January 1, 2021 penalty - BR94 Drugs and Medicines - BR180 Statute of limitations, childhood sexual abuse, Medicaid managed care contract, limiting - BR278 Educational institutuion, employment of illegal criminal and civil actions - BR143 Prescription aliens, January 1, 2021 - BR240 Tampering with the outcome of a sporting event, insulin drugs, cost sharing, capped - BR105; BR221 Firearms, registration, licensing, and logging of, penalty for - BR236 insulin drugs, cost sharing, rebate established - January 1, 2021 - BR342 Theft of wages, creation of offense - BR263 BR221 Insurance eligibility and premium requirements, Trespass upon key infrastructure assets - BR204 Voluntary non-opioid directive, creation - BR7 January 1, 2021 - BR180 Unlawful storage of a firearm, prohibition of - Prescription insulin drugs, cost sharing, January 1, BR341 Economic Development 2021 - BR105; BR221 Voting rights, prohibitions relating to - BR23 Incentives, effect of professional employer Sales and use tax, farm land maintenance services, organization - BR72 exemption of, August 1, 2020 - BR102 Criminal Procedure Promise zone, STEM teacher, loan forgiveness for Tax, sales and use, effective January 1, 2021 - BR36 Assault of a sports official, increase penalty, Class D - BR31 Tobacco products tax, vapor products - BR32 felony - BR37 Year-round daylight saving time, upon passage of Criminal gangs, activities, offense, and penalties Education, Elementary and Secondary legislation by Congress - BR181 relating to - BR450 Arts instruction, requiring schools to offer - BR203 Firearms, comprehensive regulation of - BR342 Bullying, Effective Dates, Emergency Intimidation of a sports official, establish offense, notification of allegations to parents, code of Bowling Green Veterans Center, design and Class A misdemeanor - BR37 acceptable behavior to include - BR126 preconstruction - BR125 Officer Shooting Review Board, establishment of restoration of a sense of safety for victims, code of Child abuse, reporting of - BR143 - BR79 acceptable behavior to include - BR126 Firearms, comprehensive regulation of - BR342 Corporal physical discipline, use of, prohibiting KCTCS, endowment match fund, creation of - Deaths - BR120 BR252 Disposition of remains, guardian to determine - Evidence-based decisions for truancy - BR76 Pension income exclusion, retroactively raise - BR423 Historical instruction, African and Native American BR215 history requirements for - BR27 State assistance and state management, process for Deeds and Conveyances Kindergarten, full day of instruction for - BR334 - BR357 Preservation easement, Kentucky Heritage Council, Passing stopped school bus, recorded by camera, Statute of limitations, childhood sexual abuse, recommendation before sale or transfer - BR356 establishing civil penalties for - BR136 criminal and civil actions - BR143 Public charter schools, repeal - BR61 Disabilities and the Disabled School Elections and Voting Assisted-living communities, certification - BR182 bus, illegal passing of, 90 day operator’s license Candidate filing deadline, extension of, limited Persons with mobility limitations, providing revocation - BR124 circumstance - BR47 cosmetic services for - BR233 bus stop arm cameras, requirement - BR136 Casino gaming, local option elections for - BR80 report card, adding school profile report to - BR203 Vacancies in elective office, extension of filing Diseases State assistance and state management, process for deadline to fill, limited circumstance - BR47 Diabetes, - BR357 Voting rights, prohibitions relating to - BR23

THE KENTUCKY GENERAL ASSEMBLY 139 Embalmers and Funeral Directors Firefighters, disabled or killed, tuition benefits for Historical Affairs Disposition of remains, guardian to determine - spouse or children - BR82 Preservation easement, historic places, BR423 recommendation before sale or transfer - BR356 Fiscal Note Emergency Medical Services Baby products and diapers, exemption of - BR178 Holidays Emergency medical services personnel, disabled KCTCS, endowment match fund, creation of - Ehlers-Danlos Syndome Awareness Month, or killed, tuition benefits for spouse or children BR252 declaring - BR482 - BR82 Pension income exclusion, retroactively raise - Fire districts and subdistricts, emergency ambulance BR215 Honorary Highway Designations service, provision of - BR45 Sales and use tax, feminine hygiene products, Veterans Suicide Memorial Mile, Interstate 75, Medicaid ambulance service provider assessment, exemption of - BR107 Whitley County - BR109 create - BR83 Fish and Wildlife Horses and Horse Racing Energy Coyotes, hunting at night, requirements - BR258 Cruelty to equines, prohibition of - BR6 Criminal mischief in the first degree - BR204 Limited casino gaming, tracks authorized for - BR80 Trespass upon key infrastructure assets - BR204 Fuel Reformulated gasoline requirements, determination Hospitals and Nursing Homes Environment and Conservation of benefits of - BR808 Assisted-living communities, certification - BR182 Municipal solid waste disposal facility, residual Long-term care administrators, temporary permit, landfills, definitions of - BR206 Gambling extension - BR121 Preservation easement, historic places, Casino gaming, licensing for - BR80 Medicaid payments, reporting and reimbursing recommendation before sale or transfer - BR356 Sports wagering, authorization for - BR236 - BR275 Reformulated gasoline requirements, determination Nursing homes, providing cosmetic services in - of benefits of - BR808 General Assembly BR233 Waste disposal facility, local determination, private Fiscal note requirements, establishment of - BR4 facilities, requirement for - BR118 Introduction of bills, limitation of - BR4 Hunting and Fishing Coyotes, hunting at night, requirements - BR258 Federal Laws and Regulations Guardians Clean Air Act, reformulated gasoline requirements, Disposition of remains, guardian to determine - Immigration executive branch study of - BR808 BR423 Immigration laws, enforcement of, requiring - Daylight saving time, year-round, authorizing - BR240 BR181 Health and Medical Services Immigration laws, enforcement of, requiring - Assisted-living communities, certification - BR182 Inspections BR240 Bowling Green Veterans Center, design and School bus stop arm cameras, Department of preconstruction - BR125 Education, inspection of - BR136 Fees Feminine hygiene products, free to public Casino gaming, licensing fees for - BR80 postsecondary students - BR407 Insurance, Health Medicaid ambulance service provider assessment, Living organ donation, promotion of - BR179 Health create - BR83 Long-term care administrators, temporary permit, status-related factors, insurance premium Sports wagering, licensing of - BR236 extension - BR121 requirements - BR180 Medicaid, copayments, prohibiting - BR315 status-related factors prohibited, insurance Financial Responsibility Medicaid eligibility - BR180 Wage performance bonds for employers engaged in managed care contract, limiting - BR278 Medicaid payments, reporting and reimbursing mining, notification of compliance - BR270 payments, reporting and reimbursing - BR275 - BR275 Prescription insulin drugs, cost sharing, capped Preexisting conditions, insurance coverage, requiring Fire Prevention - BR221 - BR180 Fire districts and subdistricts, emergency ambulance Prostate Cancer Awareness, September 2020 Prescription insulin drugs, cost sharing, capped - service, provision of - BR45 recognizing - BR297 BR105; BR221

Firearms and Weapons Highways, Streets, and Bridges Jails and Jailers Deadly weapons, concealed carry without license, Criminal Residential rental property, criminal mischief, repeal - BR187 littering, unsafe amounts of leaves or mowed grass penalty - BR94 Firearms, comprehensive regulation of - BR342 left on highway - BR119 Unlawful storage of a firearm, prohibition of - littering, unsafe amounts of mowed grass left on Labor and Industry BR341 highway - BR133; BR176 Call center relocations to a foreign country, notice to Instruction in African and Native American history Labor Cabinet - BR113 Firefighters and Fire Departments - BR27 Employment discrimination, requirement of Disabled or killed, tuition benefits for spouse or School or church bus, illegal passing of, 90 day criminal history on job applications, prohibition children - BR82 operator’s license revocation - BR124 - BR343 Fire districts and subdistricts, emergency ambulance Evidence-based decisions for gainful employment service, provision of - BR45 - BR76

140 2019 Interim LEGISLATIVE RECORD Professional employer organizations, regulation of Men officer or deadly incident, investigation of - BR79 - BR72 Prostate Cancer Awareness, September 2020 State minimum wage, increase - BR132; BR237 recognizing - BR297 Personnel and Employment Wages, recordkeeping and reporting of - BR263 Call center relocations to a foreign country, notice to Mental Health Labor Cabinet - BR113 Landlord and Tenant Farmer Suicide Prevention Day, designating - BR403 Employment discrimination, requirement of Residential rental property, criminal mischief, criminal history on job applications, prohibition penalty - BR94 Military Affairs and Civil Defense - BR343 Honor and Remember flag, emblem of Interview preference for employees of quasi- Legislative Research Commission remembrance, designation of - BR85 governmental agencies, establishing - BR257 Fiscal note requirements, establishment of - BR4 Professional employer organizations, regulation of Major economic action regulations, legislative Minerals and Mining - BR72 procedures for - BR300 Mining permits, conditions for approval, compliance State minimum wage, increase - BR132; BR237 with wage performance bond requirements - Wages, recordkeeping and reporting of - BR263 Licensing BR270 Casino gaming, licensing for - BR80 Pharmacists Deadly weapons, concealed carry without license, Motor Vehicles Medicaid managed care contract, limiting - BR278 repeal - BR187 Personal communication device, use by driver, Fiscal court, waste management facilities, licensing prohibiting - BR166; BR212 Physicians and Practitioners for - BR206 Safety features for prevention of hot car deaths, Medicaid Sports wagering, licensing of - BR236 installation of - BR285 managed care contract, limiting - BR278 “Veteran-owned business,” amend definition of - School or church bus, illegal passing of, 90 day payments, reporting and reimbursing - BR275 BR412 operator’s license revocation - BR124 Voluntary non-opioid directive, creation - BR7 Titles, issuance to holder of security interest rather Liens than owner - BR95 Police, City and County Motor vehicle titles, issuance to holder of security Disabled or killed, tuition benefits for spouse and interest rather than owner - BR95 Noise Control children - BR82 Airport noise mitigation, income tax credit for - Immigration laws, enforcement of, requiring - Local Government BR355 BR240 Fire districts and subdistricts, emergency ambulance Personal communication device, use by driver, service, provision of - BR45 Notices prohibiting - BR166; BR212 Firearms, comprehensive regulation of - BR342 Historic sites and places, Kentucky Heritage Council, Shooting of an individual by a law enforcement Firefighters, disabled or killed, tuition benefits for notice to before sale or transfer - BR356 officer or deadly incident, investigation of - BR79 spouse or children - BR82 Wage performance bonds for employers engaged in Honor and Remember flag, emblem of mining, notification of compliance - BR270 Police, State remembrance, designation of - BR85 Disabled or killed, tuition benefits for spouse and Law enforcement officers, disabled or killed, tuition Occupations and Professions children - BR82 benefits for spouse and children - BR82 Casino occupations, licensing for - BR80 Firearms, comprehensive regulation of - BR342 Minimum wage, authority to establish - BR132; Cosmetologists, providing services outside of Immigration laws, enforcement of, requiring - BR237 licensed establishment - BR233 BR240 Waste disposal facility, local government Estheticians, practice outside of licensed Personal communication device, use by driver, determination, private facilities, requirement for establishments - BR233 prohibiting - BR166; BR212 - BR118 Nail technician, practice outside of licensed Shooting of an individual by a law enforcement establishments - BR233 officer or deadly incident, investigation of - BR79 Local Mandate Immigration laws, enforcement of, requiring - Oil and Natural Gas Pollution BR240 Criminal mischief in the first degree - BR204 Waste Trespass upon key infrastructure assets - BR204 disposal facility, local determination, private Lottery facilities, requirement for - BR118 Casino gaming, oversight of - BR80 Parks and Shrines management facilities, local determination, Sports wagering, inclusion of - BR236 Historic sites and places, Kentucky Heritage Council, environmental control, fees used for - BR206 notice to before sale or transfer - BR356 Medicaid Property Copayments, prohibiting - BR315 Peace Officers and Law Enforcement Preservation easement, historic places, Medicaid Assistance dogs, misrepresentation, allowing recommendation before sale or transfer - BR356 ambulance service provider assessment, create investigation of - BR139 Residential rental, criminal mischief, penalty - BR94 - BR83 Immigration laws, enforcement of, requiring - managed care contract, limiting - BR278 BR240 Property Valuation Administrators payments, reporting and reimbursing - BR275 Residential rental property, criminal mischief, Vacancy in office, administration of examination penalty - BR94 required before filled - BR47 Shooting of an individual by a law enforcement THE KENTUCKY GENERAL ASSEMBLY 141 requirement, promulgate regulations for - BR136 Public Buildings and Grounds Department Preservation easement, Kentucky Heritage Council, Retirement and Pensions of Education, develop elective course offerings in recommendation before sale or transfer - BR356 Casino gaming, revenue generated by - BR80 African and Native American history - BR27 Individual income tax, pension income exclusion of Education, recommend curricula for African and Public Health - BR117 Native American instruction - BR27 Living organ donation, promotion of - BR179 Pension income exclusion, retroactively raise - of Education, school bus stop arm cameras, annual Prostate Cancer Awareness, September 2020 BR215 inspection of - BR136 recognizing - BR297 of Revenue, administration of PVA examination Retroactive Legislation - BR47 Public Medical Assistance Pension income exclusion, raise for tax years of Veterans’ Affairs, Bowling Green Veterans Center Copayments, prohibiting - BR315 beginning on or after January 1, 2018 - BR215 - BR125 Medicaid managed care contract, limiting - BR278 Energy and Environment Cabinet, reformulated gas, Safety study of - BR808 Public Officers and Employees Bullying, restoration of a sense of safety for victims, Honor and Remember flag, emblem of Immigration laws, enforcement of, requiring - code of acceptable behavior to include - BR126 remembrance, designation of - BR85 BR240 School bus stop arm cameras, requiring - BR136 Interview preference, employees of quasi- Quasi-governmental agencies, establishing interview governmental agencies, establishing - BR257 preference - BR257 Science and Technology Kentucky STEM teacher, promise zone, loan forgiveness for Department of Education, arts instruction, Public Records and Reports - BR31 providing resources and guidance for - BR203 Shooting of an individual by a law enforcement Department of Education, arts instruction, report officer or deadly incident, investigation of - BR79 Secretary of State on - BR203 “Veteran-owned business,” amend definition of - Major economic action regulations, procedures for Public Safety BR412 - BR300 Fire districts and subdistricts, emergency ambulance State Police, firearm registration and sales, service, provision of - BR45 Sheriffs administrative regulations - BR342 School bus stop arm cameras, requiring - BR136 Immigration laws, enforcement of, requiring - Transportation Cabinet, school bus stop arm Shooting of an individual by a law enforcement BR240 cameras - BR136 officer or deadly incident, investigation of - BR79 Shooting of an individual by a law enforcement Unlawful storage of a firearm, prohibition of - officer or deadly incident, investigation of - BR79 State Employees BR341 Human organ donation, paid leave of absence Short Titles and Popular Names established - BR179 Public Utilities Arts Education Equity Act - BR203 Interview preference, quasi-governmental agencies, Criminal mischief in the first degree - BR204 Ban the Box-The Criminal Record Employment establishing - BR257 Trespass upon key infrastructure assets - BR204 Discrimination Act - BR343 Kentucky Administrative Regulation Accountability State Symbols and Emblems Race Relations Act of 2020 - BR300 Honor and Remember flag, emblem of Hair texture and hairstyle, expanding the definition Klaire’s Law - BR6 remembrance, designation of - BR85 of race to include - BR231 Save Kentucky Call Center Jobs Act of 2020 - BR113 Shelter pets, official pets of Kentucky, name and designate - BR160 Racing Small Business Sports wagering, licensing of - BR236 “Veteran-owned business,” amend definition of - Studies Directed BR412 Clean Air Act, reformulated gasoline requirements, Reports Mandated executive branch study of - BR808 Department Special Districts of revenue expenditure report, baby products and Ambulance districts, emergency medical services Substance Abuse diapers - BR178 personnel, disabled or killed, tuition benefits - Voluntary non-opioid directive, creation - BR7 of Revenue, expenditure report, feminine hygiene BR82 products - BR107 Chapter 75 fire, emergency medical services Surface Mining Kentucky Department of Education, arts instruction, personnel, disabled or killed, tuition benefits - Mining permits, conditions for approval, compliance report on - BR203 BR82 with wage performance bond requirements - Medicaid payments, reporting - BR275 Fire districts and subdistricts, emergency ambulance BR270 service, provision of - BR45 Reproductive Issues Taxation Abortion, constitutional amendment, no protected Special Purpose Governmental Entities Airport noise mitigation, income tax credit for - right - BR241 Fire districts and subdistricts, emergency ambulance BR355 Feminine hygiene products, free to public service, provision of - BR45 Casinos, postsecondary students - BR407 admissions tax on - BR80 Sales and use tax, feminine hygiene products, State Agencies gaming tax on - BR80 exemption of - BR107 Board of Education, school bus stop arm camera Fire districts and subdistricts, emergency ambulance

142 2019 Interim LEGISLATIVE RECORD service, provision of - BR45 Universities and Colleges Human organ donation, income tax deduction Telecommunications Feminine hygiene products, free to students - BR407 established - BR179 Call center relocations to a foreign country, notice to Immigration laws, enforcement of, requiring - Individual income, pension income exclusion - Labor Cabinet - BR113 BR240 BR117 Criminal mischief in the first degree - BR204 KCTCS, endowment match - BR252 Pension income exclusion, retroactively raise - Trespass upon key infrastructure assets - BR204 Sanctuary BR215 postsecondary institution, determination of, Property Time hearing procedure - BR240 tax exemption, veterans’ service organizations, Daylight saving time, year-round, authorizing - postsecondary institution, state funding, proposed constitutional amendment - BR127 BR181 withholding of - BR240 tax, veteran service organization, exemption - BR247 Tobacco Veterans Rural hospital organization donation tax credit - Tobacco products tax, vapor products - BR32 Bowling Green Veterans Center, design and BR339 preconstruction - BR125 Sales Traffic Safety Honor and Remember flag, emblem of and use, pasture, agricultural, and horticultural Criminal remembrance, designation of - BR85 land maintenance services, exemption of - BR102 littering, unsafe amounts of leaves or mowed grass Property tax, exemption, veterans’ service and use tax, baby products and diapers, exemption left on highway - BR119 organization, proposed constitutional amendment of - BR178 littering, unsafe amounts of mowed grass left on - BR127 and use tax, feminine hygiene products, exemption highway - BR133; BR176 Veteran service organization, property tax exemption of - BR107 Motor vehicle safety features for prevention of hot - BR247 and use tax, increase to eight percent (8%) - BR36 car deaths, installation of - BR285 “Veteran-owned business,” amend definition of - Sports wagering, excise tax on - BR236 Passing stopped school bus, recorded by camera, BR412 Tobacco products tax, vapor products - BR32 establishing civil penalties for - BR136 Veterans Suicide Memorial Mile, Interstate 75, Personal communication device, use by driver, Whitley County - BR109 Taxation, Income--Corporate prohibiting - BR166; BR212 Airport noise mitigation, income tax credit for - School Veterinarians BR355 bus, illegal passing of, 90 day operator’s license Abuse of animals, reporting by veterinarian - Rural hospital organization donation tax credit - revocation - BR124 BR205; BR288 BR339 bus stop arm cameras, enforcement - BR136 bus stop arm cameras, requiring - BR136 Wages and Hours Taxation, Income--Individual Failure to post wage performance bond, penalties, Airport noise mitigation, income tax credit for - Transportation distribution to employees - BR270 BR355 Criminal State minimum wage, increase - BR132; BR237 Human organ donation, income tax deduction littering, unsafe amounts of leaves or mowed grass Wage performance bonds for employers engaged in established - BR179 left on highway - BR119 mining, notification of compliance - BR270 Pension littering, unsafe amounts of mowed grass left on Wages, recordkeeping and reporting of - BR263 income exclusion - BR117 highway - BR133; BR176 income exclusion, retroactively raise - BR215 Motor Waste Management Rural hospital organization donation tax credit - vehicle safety features for prevention of hot car Municipal solid waste disposal facility, waste BR339 deaths, installation of - BR285 management facilities, definitions of - BR206 vehicle titles, issuance to holder of security interest Waste disposal facility, local determination, private Taxation, Property rather than owner - BR95 facilities, requirement for - BR118 Fire districts and subdistricts, emergency ambulance Passing stopped school bus, recorded by camera, service, provision of - BR45 establishing civil penalties for - BR136 Women Veteran service organization, exemption - BR247 Personal communication device, use by driver, Abortion, constitutional amendment, no protected Veterans’ service organizations, exemption, proposed prohibiting - BR166; BR212 right - BR241 constitutional amendment - BR127 School Feminine hygiene products, free to public bus stop arm cameras - BR136 postsecondary students - BR407 Taxation, Sales and Use or church bus, illegal passing of, 90 day operator’s Sales and use tax, feminine hygiene products, Baby products and diapers, exemption of - BR178 license revocation - BR124 exemption of - BR107 Feminine hygiene products, exemption of - BR107 Increase to eight percent (8%) - BR36 Unemployment Compensation Workers’ Compensation Pasture, agricultural, and horticultural land Wages, payment of by professional employer Coverage, requirements for professional employer maintenance services, exemption of - BR102 organizations - BR72 organizations - BR72

Teachers United States Workforce Arts instruction, requiring schools to offer - BR203 Congress, year-round daylight saving time, Call center relocations to a foreign country, notice to Public charter schools, repeal - BR61 authorizing - BR181 Labor Cabinet - BR113 STEM teacher, promise zone, loan forginveness for - BR31 THE KENTUCKY GENERAL ASSEMBLY 143 2019 Interim LEGISLATIVE Robert Stivers David Osborne SENATE PRESIDENT SPEAKER OF THE HOUSE RECORD David P. Givens David Meade Published monthly by the Jay D. Hartz PRESIDENT PRO TEMPORE SPEAKER PRO TEMPORE Legislative Research Com- Director Damon Thayer John Bam Carney mission, the Interim Record Legislative Research MAJORITY FLOOR LEADER MAJORITY FLOOR LEADER is designed to inform the Commission Morgan McGarvey Rocky Adkins MINORITY FLOOR LEADER MINORITY FLOOR LEADER citizens of Kentucky of the Carla Montgomery between-sessions work of the Deputy Director for Julie Raque Adams Suzanne Miles General Assembly. Committee and Staff MAJORITY CAUCUS CHAIR MAJORITY CAUCUS CHAIR Paper subscriptions are free Coordination Johnny Ray Turner Derrick Graham upon request. Contact the LRC MINORITY CAUCUS CHAIR MINORITY CAUCUS CHAIR Public Information Office, Rob Weber Mike Wilson Chad McCoy Public Information MAJORITY WHIP MAJORITY WHIP Capitol Annex, Frankfort KY, Officer 40601 at 502-564-8100, ext. 307 Dennis Parrett Joni L. Jenkins to subscribe. Joe Cox MINORITY WHIP MINORITY WHIP Publications and Printing TheInterim Record can also Officer The Kentucky Legislative Research Commission is a 16-member committee of the majority and minority leadership of be read online at legislature. Rebecca Mullins the and House of Representatives. Under Chapter 7 of the Kentucky Revised Statutes, the LRC constitutes ky.gov/Legislation/Pages/de- Hanchett the administrative office for the General Assembly. Its director serves as chief administrative officer of the Legislature when fault.aspx. If you have a paper Editor, Typography and it isn’t in session. subscription and would like to Design The Commission and its staff, by law and by practice, perform numerous fact-finding and service functions for members end your subscription and read of the Legislature, employing professional, clerical and other employees required when the General Assembly is in session the Interim Record online only, Public Information Staff: and during the interim period between sessions. These employees, in turn, assist committees and individual legislators please contact the LRC Public Stephanie Newberg in preparing legislation. Other services include conducting studies and investigations, organizing and staffing committee Information Office at 502-564- Jeff Fossett meetings and public hearings, maintaining official legislative records and other reference materials, providing information Steve Gatewood 8100, ext. 307. Stories and about the Legislature to the public, compiling and publishing administrative regulations, administering a legislative intern Bruce Phillips program, conducting orientation programs for new legislators, and publishing a daily index and summary of legislative photographs may be reprinted Bud Kraft actions during sessions. without permission, although Keith Krey credit is appreciated. Jim Hannah The LRC is also responsible for statute revision, publishing and distributing the Acts and Journals following sessions, Susan Kennedy and for maintaining furnishings, equipment and supplies for the Legislature. It also functions as Kentucky’s Commission on Printed with state funds Interstate Cooperation in carrying out the program of the Council of State Governments as it relates to Kentucky.

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144 2019 Interim LEGISLATIVE RECORD