2008 Interim LEGISLATIVE Volume 20, No. 1 October 2008 RECORD Pros, cons of penal system discussed by lawmakers

by Rebecca Mullins “I think that the public, if they ran into someone LRC Public Information who has 14 prior criminal convictions, they have a right to be protected,” Larson said. “We know when FRANKFORT — A former UK law school they’re on the street that they commit crimes, and dean and a Commonwealth’s Attorney gave oppos- when they’re not on the street, they don’t. If we really ing views to a state legislative committee on Oct. 21 want to be effective, there have to be consequences about how the state’s repeat felony offender laws for violating the law the first time, every time.” should be used. Lawson, however, said the current PFO law is Dr. Robert G. Lawson, who continues to teach only helping increase the state’s prison population, law at UK and recently completed a study of Ken- which is seven times greater than it was in the early tucky’s prison system, told the Interim Joint Com- 1970s when Kentucky’s PFO laws were first written. mittee on Judiciary that the state’s persistent felony Many of today’s inmates are substance abusers who offender (PFO) law was intended to be used rarely are facing harsher penalties for their crimes, Lawson for serious offenders and not to “jack up penalties,” said, but not being rehabilitated because of a lack of adding “…my fear is that it is used against non-dan- funding. gerous, non-serious offenders.” “The last prison we built cost $90 million,” “I feel like we have lost our sense of propor- Lawson said. “If you spend all that money to lock tionality at times so that the penalties we impose do them up, you aren’t going to have money available not fit the crimes,” he said. for (rehabilitation).” Disagreeing with Lawson was Fayette County Lawson said the fact that Kentucky’s inmate Commonwealth’s Attorney Ray Larson, who said population has already grown by 700 in the few statistics show that 44 percent of inmates released months since the state implemented a new release from prison in Kentucky will be back in prison with- policy that has freed around 1,500 inmates shows in a few years. Nationally, the recidivism rate is 67 Rep. Robin Webb, D-Grayson, talks with another lawmaker during more needs to be done. the Oct. 21 meeting of the Interim Joint Committee on Judiciary. percent, Larson said. Continued on page 2 Lawmakers urge drought, wind assistance for Kentucky

by Rebecca Mullins the assistance they need. LRC Public Information “It will allow--upon a decision by the U.S Department of Agriculture and the administra- FRANKFORT – A state legislative com- tion--it will allow us to qualify for some loans mittee approved a resolution Oct. 8 asking the and programs in the event that there is drought federal government to financially help Kentucky assistance,” said McKee. farmers affected by drought and a September As of early October, the Palmer Drought In- wind storm. dex reported that the west, central and Bluegrass The resolution urges the U.S. Secretary regions of the state were in a moderate drought of Agriculture to approve a disaster assistance with severe drought conditions in East Kentucky. request made recently by Governor Steve Beshear Conditions improved slightly days later, when and Kentucky Agriculture Commissioner Richie weather reports show the state received rainfall Farmer for those farmers affected by drought and totaling between a half to three-quarters of inch a Sept. 14 wind storm left over from Hurricane in most areas of the state and around 2/10 of an Ike. Rep. Tom McKee, D-Cynthiana, who co- inch in southeast Kentucky, but more rain was chairs the Interim Joint Committee on Agriculture needed. and Natural Resources that approved the resolu- Sen. Ernie Harris, R-Crestwood, comments on testimony dur- ing the Oct. 8 Agriculture and Natural Resources meeting. tion, said it could help Kentucky farmers receive Continued on page 2

THE KENTUCKY GENERAL ASSEMBLY  Drought Forestry concerns aired before panel by Rebecca Mullins “If we could craft some policy economic impact of the state’s $8.7 aid, page 1 LRC Public Information changes to address those blockers, we billion forest economy. feel like we could encourage those “Kentucky’s forests are only 25 The Palmer Index released in FRANKFORT – Legislation is woodland owners to become wood- percent as productive as they can be,” early Oct. indicates that the state needed to improve management of land owner-timber managers,” Corum Corum said. would need 4.98 inches of above-nor- woodlands by their owners, state law- said. One concern raised by Bob Bauer mal rainfall makers heard on Oct. 8 from several Corum is a constituent of Rep. of the Kentucky Forest Industries As- in West forestry groups. Rick Nelson, D-Middlesboro, who sociation is collection of fines assessed Kentucky, Jim Corum, president of the said that a meeting is scheduled in on loggers who are considered “repeat Frankfort on Nov. 20 to form a legis- bad actors” for neglecting to follow This is the 5.71 in Kentucky Woodland Owners Asso- C e n t r a l ciation, said Kentucky’s timber can lative task force on woodland issues. state regulations. Of $360,000 in fines second Kentucky, be improved by better management Nelson said the impact of woodlands assessed against loggers—mostly consecutive 5.19 in the by woodland owners, yet less than on Kentucky’s economy match coal repeat bad actors--Bauer said only 10 percent of owners do any manage- and farm production and needs to be around 10 percent has been collected. year Bluegrass region and ment because of the high financial risk addressed. When asked by Rep. Fred Nesler, for drought in 6.65 inch- and low reward. Corum told mem- “$4.6 billion is a lot of money,” D-Mayfield, why the fines haven’t the es in East bers of the Agriculture and Natural Nelson added, referring to the amount been collected, Division of Forestry Kentucky Resources Committee that legislation of sales revenue generated by Ken- Director Leah MacSwords said lo- Commonwealth. to end the addressing what he called “blockers” tucky’s forests each year. cating the loggers’ assets is difficult. c u r r e n t that discourage management could Progress has been made in Ken- Additionally, she said there is no pro- drought. persuade the state’s nearly half mil- tucky’s timber industry over the past vision in the law that prohibits those This lion woodland owners to improve decade since the Kentucky General who don’t pay the fine from logging. is the second consecutive year for their lands. Assembly passed the Kentucky For- Rep. Robin Webb, D-Grayson, drought in the Commonwealth, with The 5 blockers--determined by est Conservation Act, which primar- said the Division of Forestry is one southeast and south central Ken- consensus of a workgroup comprised ily affects loggers by requiring trained agency that has “borne the brunt” of tucky most hard-hit. of Corum’s association, the Kentucky “master loggers” to oversee logging a lean budget, which required cuts According to the resolution Forest Industries Association (KFIA), operations along with other regula- across state government. That needs to passed by the committee, the drought the state Division of Forestry and oth- tions. It does not, however, require as be taken into consideration, she said, has hurt corn and soybean yields er groups—include threat of wildfire, much responsibility from private for- during discussions about how current and is drying up the state’s hay crop, threat of disease and pests, nonmar- est owners, which concerns some. regulations are working. which feeds livestock in the winter ketable low-grade timber, threat of Corum said the workgroup be- “We need to look at the budget months. timber theft and “competitive disad- lieves improving the productivity of side of this to do this effectively,” said vantages.” private woodlands could double the Webb. Penal code, from page 1 “If we can’t find a way to reduce ville. the population and generate resources “You’re close to these problems to try to help these people I don’t think because it’s your profession,” Bratch- we’re going to improve things any,” er said, Lawson said. “I believe we mostly are speaking to making the people we are incarcerat- Professor ing worse, and I don’t think that helps “I believe L a w s o n . us.” we mostly “But (those Rep. Robin Webb, D-Grayson, an are making who aren’t), attorney, said several factors should be their phi- considered when deciding a person’s the people losophy is penalty, including mental illness and we are keep them addiction. incarcerating behind bars “There are also of things that so they come into play when we evaluate a worse, and don’t come person and their criminal history,” I don’t think and ruin my Webb said. that life again.” While Lawson said he did not T h e know what the best course of action helps us.” General As- should be, Larson explained that the s e m b l y ’s safety of everyone should be consid- Dr. Robert Lawson, S u b c o m - ered, adding “…(some) think it’s OK mittee on UK College of Law to let people out of prison as long as the Penal they don’t come to our neighbor- Code and hood.” Controlled People in other neighborhoods, Substance Act, which is working on however, share a different philosophy, revising the code, is expected to issue Interim Joint Committee on Judiciary Co-Chair Rep. Kathy Stein, D-Lexington, fields questions during said Rep. Kevin Bratcher, R-Louis- its report by December. committee discusson on the state penal code and controlled substance law.

 2008 Interim LEGISLATIVE RECORD Charities want labels on for-profit donation boxes by Rob Weber Metz urged lawmakers to enact ordinance that was approved in Louis- toys are being resold to pad the bottom LRC Public Information legislation that would require dona- ville last year. line of a privately owned, out-of-state, tion boxes operated by for-profit enti- L i n d a for-profit company,” Romine said. “I FRANKFORT -- Citizens who ties to be clearly labeled as such so that R o m i n e , urge you to mandate that the for-profit place clothing and other items in dona- people don’t mistakenly think they are Donation public re- companies clearly label their boxes tion receptacles should know whether donating to a charity. lations co- as commercial enterprises that exist their items are going to a charity or a “We have no objection to a for- boxes in some ordinator to turn a profit, not to support worth- business that will sell them for profit, profit entity having a donation box. cities are for the St. while charitable causes.” representatives of two charities told We live in a free enterprise system,” operated by an Vincent De Sen. Tom Buford, the sponsor of members of the Licensing and Occu- Metz said. “However, we think that Paul Soci- BR 34, said his proposal would help pations Committee on Oct. 10. it’s important that the public not be out-of-state ety, echoed ensure that citizens don’t make er- While some citizens might as- misled into thinking that they are mak- business that M e t z ’ s rors on tax forms after placing items sume that all large boxes placed in ing a donation to a charity when in fact resells the items s u p p o r t in donation boxes. “The reason I feel public areas to collect donated items they are not.” for BR 34, strong about this is that many individ- are operated by charities, that is not Metz urged lawmakers to sup- for profit. noting that uals make donations into these boxes always the case, said Carl Metz, gov- port Bill Request 34, legislation that for-profit … then they go home and at the end of ernment affairs specialist for Good- has been prefiled in anticipation of the d o n a t i o n the year they write it off on their taxes. will Industries of Kentucky. Large red General Assembly’s 2009 session that boxes are cutting into donations that If they put (items) in the wrong box donation boxes have been placed in would require that donation boxes op- could instead go to charities. then they have committed a crime,” Louisville, Lexington, Nicholasville, erated by for-profit entities be labeled “I’m alarmed that well-meaning, said Buford, R-Nicholasville. “So it’s Shelbyville and other cities in Ken- in a way that informs citizens that do- caring donors are deceived into think- very important that they know where tucky that are operated by an out-of- nated items are going to a for-profit ing their donation is being used for a these items are going to be delivered state business that resells the items for business rather than a charity. real charitable purpose when in fact so they make a right decision on their its own profit, Metz said. The measure is similar to a local these used coats, shoes, furniture and tax preparation.” Lawmakers get closer look at Alternative math and science academy vehicle options by Chuck Truesdell every county in the state. Last year’s first graduating class LRC Public Information While the school’s focus is on finished with 54 of the 55 seniors it math, science, technology and engi- began with, he noted. studied BOWLING GREEN — A year neering, Gott said he was proud of stu- WKU President Gary Ransdell after its students first arrived on cam- dents’ social pointed out the benefits to the state. by Chuck Truesdell pus, lawmakers got an up-close look studies and “First and foremost, this is an eco- LRC Public Information at Kentucky’s Carol Martin Gatton Of the first arts and nomic development strategy for the Academy of Mathematics and Science graduating h u m a n i - commonwealth,” he said. Of the first FRANKFORT — Some new ve- where members of the Interim Joint ties CATS graduating class, 42 of 54 students hicles being rolled out across the na- Committee on Education held their class, 42 of 54 s c o r e s , attended Kentucky colleges, with tion can’t drive in Kentucky because monthly meeting on Oct. 13. students w h i c h 25 of them staying at WKU. Famil- they don’t neatly fit into the state’s The academy, now in its second attended r a n k e d iarity with the campus and ongoing vehicle regulation categories. year, hosts 120 students from across among the research are incentives to stay, acad- Dan Glass, the state’s Commis- the commonwealth on its campus at Kentucky top in the emy administrators said. sioner of Vehicle Regulation, talked Western Kentucky University. The colleges, with state. “Our Many students conduct research to members of the Interim Joint Com- students, all high school juniors and s t u d e n t s projects, and some are producing 25 of them mittee on Transportation on Oct. 7 seniors, take half their classes with are gifted published papers, Gott said. Alderd- about the possibility of new laws al- regular WKU students. Other cours- staying at WKU. in many ice noted that students have a number lowing more fuel-efficient vehicles es contain solely academy students, areas,” he of math and science electives they on state roads. while others are part of the WKU hon- beamed. can complete, allowing them to study Many vehicles, including the ors program. Gott and assistant director Corey any field with a science component, ZAP, cannot be classified as a car, By the time they graduate high Alderdice noted that while students from astronomy to agriculture. a motorcycle, or any other legally- school, students can earn two years have a measure of freedom because of Students are chosen for the pro- defined vehicle, Glass said, causing of college credit, saving their parents the class schedule, they are still moni- gram in their sophomore year, with problems in licensing them and al- money. tored. There is a 10:30 p.m. curfew applications due in February. lowing them on state roads. Academy director Tim Gott not- during the week and separate wings Legislators received a tour of the “Low-speed vehicles” are de- ed that the first class of graduates ac- for male and female students within academy and WKU from students, fined by the federal government as cepted $2.6 million in scholarships, or the academy’s Schneider Hall dorm. met with academy students from any four-wheeled vehicle that has a nearly $50,000 per student on top of Although separation from their their districts, and received a packet top speed of 20-25 miles per hour as their earned college credit. Students families could cause anxiety, “it’s of information, including application well as other requirements, such as from 81 counties have already taken amazing how quickly students adjust materials detailing the rigorous na- turn signals, a windshield, headlights, part in the program, said Gott, and ef- to the environment,” Gott said. “The ture of the program and its admission forts are made to attract students from transition has been very smooth.” process. Continued on page 58

THE KENTUCKY GENERAL ASSEMBLY  2009 Session Calendar

2009 REGULAR SESSION CALENDAR 2009 REGULAR SESSION CALENDAR (approved by LRC 9/24/08) (approved by LRC 9/24/08) MARCH JANUARY – PART I

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 1 2 3 Concurrence (23) (24) (25) (26) (27) 4 5 6 7 8 9 10 8 9 10 11 12 13 14 Part I Concurrence Convenes VETO VETO VETO VETO VETO (1) (2) (3) (4) (28) 11 12 13 14 15 16 17 15 16 17 18 19 20 21

VETO VETO VETO VETO VETO 18 19 20 21 22 23 24 Martin Luther King, Jr. Day 22 23 24 25 26 27 28

25 26 27 28 29 30 31 SINE DIE (29) (30) 29 30 31

Denotes break between Parts I and II. Bill drafts may be requested during this period for introduction when Part II convenes.

FEBRUARY – PART II

Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 Part II Last day for new bill Convenes requests (5) (6) (7) (8) 8 9 10 11 12 13 14 Last day for new Senate bills (9) (10) (11) (12) (13) 15 16 17 18 19 20 21 Presidents’ Day Last day for new House HOLIDAY bills (14) (15) (16) (17) 22 23 24 25 26 27 28

(18) (19) (20) (21) (22) ( ) Denotes Legislative Day

( ) Denotes Legislative Day

 2008 Interim LEGISLATIVE RECORD House of Representatives Royce W. Adams Myron Dossett Stan Lee Arnold Simpson 2008 580 Bannister Rd. Dry Ridge 41035 491 E. Nashville St. Pembroke 42266 PO Box 2090 Lexington 40588 112 W. 11th Street Covington 41011 Work 859-824-3387 Home 270-475-9503 Home 859-252-2202 Work 859-261-6577 Home 859-428-1039 FAX 859-259-2927 Home 859-581-6521 Ted Edmonds Dottie Sims KENTUCKY Rocky Adkins 1257 Beattyville Road Jackson 41339 Mary Lou Marzian 459 Violet Ave. Horse Cave 42749 PO Box 688 Sandy Hook 41171 Home 606-666-4823 2007 Tyler Ln. Louisville 40205 Home 270-786-3948 Work 606-928-3433 Home 502-451-5032 Home 606-738-4242 C.B. Embry, Jr. PO 1215 Morgantown 42261 Tom McKee Ancel Smith FAX 606-929-5213 1812 Wiley Fork Road Leburn 41831 2009 REGULAR SESSION CALENDAR Work 270-526-6237 1053 Cook Road Cynthiana 41031 Work 502-564-8100, ext. 668 Home 270-791-1879 Home 859-234-5879 (approved by LRC 9/24/08) Scott Alexander FAX 859-234-3332 Home 606-785-3844 115 Rock Ridge Rd. Hazard 41701 Bill Farmer General Home 606-436-1127 3361 Squire Oak Dr. Lexington 40515 Reginald Meeks John Will Stacy MARCH Home FAX 606-436-9678 Work 859-272-1425 PO Box 757 Louisville 40201 PO Box 135 West Liberty 41472 Home 859-272-8675 Work 502-772-1095 Home/FAX 606-743-1516 John A. Arnold, Jr. FAX 859-272-1579 Assembly 1301 N. Lee Sturgis 42459 Charles Miller Sunday Monday Tuesday Wednesday Thursday Friday Saturday Kathy W. Stein Work 270-333-4641 Tim Firkins 3608 Gateview Circle Louisville 40272 Home 502-937-7788 364 Transylvania Park Lexington 40508 1 2 3 4 5 6 7 212 E. Esplanade Louisville 40214 Work 859-225-4269 Eddie Ballard Home/FAX 502-367-2981 Senate PO Box 1736 Madisonville 42431 Harry Moberly, Jr. Home 859-252-1500 PO Box 721 Richmond 40475 Concurrence Work 270-821-4767 Joseph M. Fischer Walter Blevins, Jr. R.J. Palmer II Home 270-821-6255 Work 859-622-1501 Jim Stewart III 126 Dixie Place Fort Thomas 41075 Home 859-624-2781 141 KY 223 Flat Lick 40935 (23) (24) (25) (26) 777 Broadway 1391 McClure Road Winchester 40391 Work 513-794-6442 West Liberty 41472-1023 Home 859-737-2945 Sheldon E. Baugh Home 606-542-5210 (27) 252 W. Valley Dr. Russellville 42276 Home 859-781-6965 Russ Mobley Work 606-743-1212 900 Holly Street Campbellsville 42718 8 9 10 11 12 13 14 Home 606-743-1200 Joey Pendleton Work 270-726-7616 905 Hurst Dr. Hopkinsville 42240 David Floyd Home 270-465-6436 Greg Stumbo FAX 606-743-1214 Home 270-726-2712 102 Maywood Ave. Bardstown 40004 Home 270-885-1639 Box 1473 108 Kassidy Drive Home 502-350-0986 Brad Montell Concurrence FAX 270-885-0640 Johnny Bell 543 Main Street Shelbyville 40065 Prestonsburg 41653 VETO VETO VETO VETO VETO Charlie Borders 108 North Green St. Glasgow 42141 Work 502-633-7017 Home 606-886-9953 Room 204 Jerry P. Rhoads Work 270-651-7005 Danny Ford Home 502-633-7533 (28) State Capitol Annex Frankfort 40601 PO Box 2002 Home 270-590-0110 PO Box 1245 Mt. Vernon 40456 Tommy Thompson Home 606-475-0237 Madisonville 42431 Work 606-678-0051 Tim Moore PO Box 458 Owensboro 42302 Work 270-825-1490 Kevin D. Bratcher Home 606-256-4446 417 Bates Rd. Elizabethtown 42701 Home 270-926-1740 10215 Landwood Drive 15 16 17 18 19 20 21 David E. Boswell Home 270-825-2949 Jim Glenn Home 270-769-5878 FAX 270-685-3242 5591 Panther Creek Park Drive Louisville 40291 PO Box 21562 Owensboro 42304 John Tilley Owensboro 42301 Dorsey Ridley Home 502-231-3311 Home 270-686-8760 Lonnie Napier PO Box 1065 Hopkinsville 42241 VETO VETO VETO VETO VETO Home 270-771-4921 4030 Hidden Creek Drive Scott W. Brinkman 302 Danville St., Lancaster 40444 Home 270-881-4717 Fax 270-926-9047 Henderson 42420 Jim Gooch, Jr. Work 859-792-2535 6001 Two Springs Lane 714 North Broadway B2 Work 270-886-6800 Home 270-826-5402 Home 859-792-4860 Louisville 40207 Providence 42450 FAX 270-885-7127 Tom Buford Work 270-869-0505 Home 502-893-8769 Work 270-635-1139 Rick G. Nelson 409 W. Maple Nicholasville 40356 Tommy Turner 22 23 24 25 26 27 28 Home/FAX 859-885-0606 FAX 502-894-0210 Home 270-667-7327 Rt. 3, Box 686 Middlesboro 40965 Richard L. “Dick” Roeding FAX 270-667-5111 Home/FAX 606-248-8828 175 Clifty Grove Church Road 2534 Kearney Ct. , Somerset 42501 Julian M. Carroll Lakeside Park 41017 Thomas J. Burch 4012 Lambert Ave. Derrick W. Graham Fred Nesler Home 606-274-5175 Room 229 Capitol Annex Home 859-331-1684 PO Box 308 Mayfield 42066 SINE DIE Louisville 40218 Room 329J Capitol Annex Frankfort 40601 Frankfort 40601 FAX 859-331-1238 Work 270-623-6184 Home 502-454-4002 Home 502-223-1769 Ken Upchurch (29) (30) Work 502-564-8100 Jeff Greer Home 270-247-8557 PO Box 991 Monticello 42633 29 30 31 Richie Sanders, Jr. Dwight D. Butler 2125 Hwy. 79 Brandenburg 40108 FAX 270-623-6431 Work 606-340-8490 Perry B. Clark 906 Dinwiddie Rd. Franklin 42134 PO Box 9 Harned 40144 Home 270-422-3764 5716 New Cut Road Louisville 40214 Home 270-586-5473 Work 270-756-5931 Home FAX 270-422-5010 David Osborne Home 502-366-1247 Home 270-756-0100 PO Box 8 Prospect 40059 John Vincent Keith Hall Work 502-645-2186 PO Box 2528 Ashland 41105 Julie C. Denton Dan “Malano” Seum Mike Cherry PO Box 466 Phelps 41553 Home 502-228-3201 Home 606-325-0952 1708 Golden Leaf Way 1107 Holly Ave. Fairdale 40118 803 S. Jefferson Princeton 42445 Work 606-456-3432 Ext. 25 Sannie Overly Work 606-329-8338 Louisville 40245 Home 502-749-2859 Home 270-365-7801 Home 606-456-8666 340 Main Street Paris 40361 Home 502-489-9058 Home 859-987-9879 David Watkins Mike Harmon 5600 Timberlane Dr. Henderson 42420 Tim Shaughnessy Larry Clark PO Box 458 Junction City 40440 Home 270-826-0952 Carroll Gibson Suite 103, 250 E. Liberty 5913 Whispering Hills Blvd. Darryl T. Owens Home 859-854-6328 FAX 270-826-3338 PO Box 506 Leitchfield 42755 Louisville 40202 Louisville 40219 1300 West Broadway Louisville 40203 Work 270-230-5866 Work 502-584-1920 Home 502-968-3546 Richard Henderson Home 502-584-6341 Jim Wayne 60 Myers Cemetery Rd. Jeffersonville 40337 1280 Royal Ave. Louisville 40204 Brett Guthrie Home 859-497-9265 Ruth Ann Palumbo Work 502-451-8262 1005 Wrenwood Drive Brandon Smith Hubert Collins 350 Kentucky Blvd. 72 Collins Dr. Wittensville 41274 10 Deepwood Dr. Lexington 40505 Bowling Green 42103 Hazard 41701 Home 606-297-3152 Melvin B. Henley Home 859-299-2597 Robin L. Webb Work 270-781-0049 Home 606-436-4526 1305 S. 16th Street Murray 42071 404 West Main Street Grayson 41143 Home 270-781-5597 Home FAX 606-436-2398 Leslie Combs Home 270-753-3855 Don Pasley Home 606-474-5380 245 E. Cedar Drive Pikeville 41501 5805 Ecton Road Winchester 40391 Jimmy Higdon Denise Harper Angel Katie Kratz Stine Work 606-218-5215 Home 859-842-3337 2521 Ransdell Ave. Louisville 40204 Home 606-477-6672 507 West Main Lebanon 40033 Alecia Webb-Edgington 21 Fairway Drive Southgate 41071 1650 Chestnut Ct. Fort Wright 41011 Home 502-452-9130 Work 270-692-3881 Tanya Pullin Home 859-781-5311 James R. Comer, Jr. Home 270-692-6945 Home 859-426-7322 PO Box 338 Tompkinsville 42167 1026 Johnson Lane South Shore 41175 Ernie Harris FAX 270-692-1111 Work 606-932-2505 Ron Weston PO Box 1073 Robert Stivers II Home 270-487-5585 207 Main Street Manchester 40962 423 Chieftain Drive Fairdale 40118 Crestwood 40014 Charlie Hoffman Marie Rader Work 606-598-2322 Tim Couch 406 Bourbon St. Georgetown 40324 502-564-8100 Home 502-241-8307 PO Box 710 Hyden 41749 PO Box 323 McKee 40447 Home 606-598-8575 Work 502-863-4807 Work 606-287-3300 FAX 606-598-2357 Home/FAX 606-672-8998 Home 502-863-9796 Susan Westrom Tom Jensen Home 606-287-7303 PO Box 22778 Lexington 40522-2778 303 S. Main Street London 40741 Will Coursey Jeffrey Hoover FAX 606-287-3300 Work 859-266-7581 Home 606-878-8845 Gary Tapp PO Box 985 Jamestown 42629 308 Fishermen Circle Shelbyville 40065 PO Box 467 Benton 42025-0467 Rick Rand Work 270-343-5588 Home 502-633-2304 Home 270-527-4610 PO Box 273 Bedford 40006 Rob Wilkey Home 270-343-2264 220 Homestead Ct. Scottsville 42164 Ray S. Jones II Work 270-527-4610 Work 502-255-3286 PO Drawer 3850 Pikeville 41502 Jesse Crenshaw Home 502-255-3392 Work 270-781-9100 Work 606-432-5777 Damon Thayer Home 270-622-5050 102 Grayson Way Georgetown 40324 121 Constitution Lexington 40507 Dennis Horlander FAX 502-855-9911 FAX 606-432-5154 1806 Farnsley Rd. Shively 40216 FAX 270-843-8607 Home 859-621-6956 Work 859-259-1402 Work 502-447-2498 FAX 502-868-6086 Home 859-252-6967 Jody Richards Dan Kelly FAX 859-259-1441 Home 502-447-6122 817 Culpeper St. Bowling Green 42103 Addia Wuchner PO Box 911 Burlington 41005 324 W. Main Springfield 40069 Elizabeth Tori FAX 502-447-4715 Work 270-781-9946 Work 859-336-7723 Ron Crimm Home 270-842-6731 Work 859-525-6698 2851 S. Wilson Rd. Radcliff 40160 PO Box 43244 Louisville 40253 Joni L. Jenkins Home 859-336-9048 FAX 270-781-9963 Home 270-351-1829 Work 502-245-2118 2010 O’Brien Ct. Shively 40216 Brent Yonts Alice Forgy Kerr FAX 270-351-1829 Home 502-245-8905 Home 502-447-4324 Steve Riggs 232 Norman Circle Greenville 42345 3274 Gondola Dr. Lexington 40513 Dennis Keene 8108 Thornwood Rd. Louisville 40220 Work 270-338-0816 ( ) Denotes Legislative Day Home 859-223-3274 Johnny Ray Turner Robert R. Damron LRC 502-564-8100 Home 270-338-6790 85 Kentucky Route 1101 Drift 41619 231 Fairway West Nicholasville 40356 1040 Johns Hill Road Wilder 41076 Home 859-441-5894 FAX 502-564-6543 FAX 270-338-1639 Robert J. “Bob” Leeper Home 606-377-6962 Home 859-887-1744 Tom Riner 229 South Friendship Paducah 42003 Thomas Kerr 1143 E. Broadway Louisville 40204 Work 270-554-9637 Jack Westwood Jim DeCesare Home 502-584-3639 2072 Lakelyn Court PO Box 122 Rockfield 42274 5415 Old Taylor Mill Rd. Taylor Mill 41015 Home 270-554-2771 Carl Rollins II Crescent Springs 41017-4472 Home 270-792-5779 Work 859-431-2222 FAX 270-554-5337 PO Box 424 Midway 40347 Home 859-344-6154 Home FAX 888-275-1182 Home 859-356-1344 FAX 859-431-3463 Home 859-846-4407 Vernie McGaha Work 270-792-5779 4787 W. Hwy. 76 David L. Williams Adam Koenig Steven Rudy PO Box 666 Milward Dedman, Jr. Russell Springs 42642 300 South Chiles Harrodsburg 40330 3346 Canterbury Ct. Erlanger 41018 3430 Blueridge Dr. W. Paducah 42086 Burkesville 42717 Home 270-866-3068 Work 859-734-2880 Home 859-578-9258 Home 270-744-8137 Work 270-864-5636 Home 270-433-7777 Mike Denham Jimmie Lee Sal Santoro 306 Old Hill City Road Maysville 41056 901 Dogwood Drive Elizabethtown 42701 596 Walterlot Ct. Florence 41042 Gerald A. Neal Work 270-765-6222 Home 859-371-8840 462 S. 4th St., Ste. 2150 Kenneth W. Winters Home 606-759-5167 1500 Glendale Road Murray 42071 Home 270-737-8889 FAX 859-371-4060 Louisville 40202 Work/FAX 270-759-5751 Bob M. DeWeese FAX 270-765-2312 Work 502-584-8500 6206 Glen Hill Rd. Louisville 40222 Charles Siler Home 502-776-1222 Home 502-426-5565 3570 Tackett Creek Rd. FAX 502-584-1119 Ed Worley Williamsburg 40769 PO Box 659 Richmond 40476 Work 606-549-0900 Home 859-623-6524 FAX 859-623-6557

THE KENTUCKY GENERAL ASSEMBLY  Committee Meetings

INTERIM JOINT ognized Mr. Drew Graham, who wel- received several grants totaling $31 mil- COMMITTEE ON comed the committee to the UK College lion. She expressed concern that their AGRICULTURE AND of Agriculture Ag Roundup and thanked grant funds for facilities do not totally NATURAL the committee for participating for the fund facilities, farms, and animals. Dr. RESOURCES last five years. Mr. Graham invited the Cox shared that they are currently inves- Minutes of the 4th Meeting committee to a farm safety demonstra- tigating technology for protecting animal of the 2008 Interim tion following the meeting. He also in- health, production of food, and biofuel. Index September 12, 2008 vited the members to a ground-break- Representative McKee introduced The 4th meeting of the Interim ing ceremony for the Livestock Disease several Agricultural Development Board Diagnostic Center. Dean Scott Smith members who were in attendance in ad- A Joint Committee on Agriculture and Administrative Regulation Review Natural Resources was held on Friday, extended his appreciation to all the par- ditions to Dr. Smith, Mr. Dennis Griffin, Subcommittee, 38 September 12, 2008, at 10:00 AM, in ticipants of the Ag Roundup noting the Mr. Sam Lawson, Mr. Wayne Hunt, Troy Agriculture and Natural Resources, the E.S. Good Barn at the University of great amount of teamwork and partner- Rankin, and Mr. Rodney Dick. 6, 7, 8, 9 Kentucky. Representative Tom McKee, ship this year’s event had required. Dean Next, Dr. Will Snell encouraged the Appropriations and Revenue, 10, 11 Chair, called the meeting to order, and Smith then introduced Dr. Mike Mullen, committee that it has been a banner the secretary called the roll. Associate Dean for Academic Programs, year for United States agriculture with B Present were: Dr. Jimmy Henning, Associate Dean for producers setting an all time record, and Banking and Insurance, 12 Members: Representatives Jim Cooperative Extension System, and Dr. net farm income 60% is above average Nancy Cox Associate Dean for Agricul- over the past ten years. Over the past C Gooch Jr., Co-Chair, and Tom McKee, Capital Planning Advisory Board, 34 Co-Chair; Senators Ernie Harris, Joey ture Experiment Station, for an update. twenty years, food prices had increased Capital Projects and Bond Oversight, Pendleton, Brandon Smith, and Damon Dr. Mullen commented that they two percent but for 2008 they have in- 36 Thayer; Representatives Royce W. Ad- were enjoying a wonderful turnout for creased six percent. He stated no one ams, Dwight D. Butler, Mike Cherry, the Ag Roundup with 1200 students, can deny the fact that including the price E faculty, and staff participating in Thurs- of grain has affect on food prices. Even Economic Development and Tour- Hubert Collins, James R. Comer Jr., Tim ism, 13 Couch, Mike Denham, C. B. Embry Jr., day night’s events and noted that it is more of a concern over a sustained pe- Education, 14 Jeff Greer, Richard Henderson, Jimmy indicative of the community the college riod of high grain prices is the effect on Energy, 16 Higdon, Charlie Hoffman, Brad Mon- is. He went on to share information that long term livestock supplies and effect tell, Fred Nesler, Sannie Overly, Don enrollment is moving upwards showing a in meat producers. As for a short term, H 43% increase in the number of freshmen food price increases have been related to Health and Welfare, 17, 18, 19 Pasley, Tanya Pullin, Rick Rand, Tom Riner, Jim Stewart III, Greg Stumbo, for the College of Agriculture. The Col- high packaging and fuel prices, non-agri- J Tommy Turner, Ken Upchurch, and lege of Agriculture currently has 2100 cultural factors. Judiciary, 21 Susan Westrom. students enrolled, not including 400 Dr. Snell went on to cite rising labor Legislative Guests: Representa- graduate students, which makes it the costs. He said the major concern is the L third largest college at the University of cost of shipping and cost of fuel. The Labor and Industry, 23 tives Jody Richards, Rocky Adkins, and Licensing and Occupations, 24 John Will Stacy. Kentucky. low value of dollar has made exports Local Government, 25 Guests: Dr. Scott Smith, Drew Dr. Henning said the “career lad- grow. Weather issues overseas have had Graham, Dr. Nancy Cox, Dr. Mike Mul- der”, or County Agent Initiative, has an impact, and some world governments P lin, Dr. Jimmy Henning, Dr. Will Snell, been implemented over the last two have limited or banned world exports. Prefiled Bills, 50 years. Agents are rewarded for service, He said the bottom line is that the in- Program Review and Investigations and Dr. Greg Halich, University of Ken- Committee, 42, 44 tucky; Commissioner Richie Farmer, excellence, and programming. He also crease in food prices has been affected by S Mark Farrow, and Dale Dobson, Ken- expressed his appreciation to the Ag- a lot of factors. Transportation costs and Seniors, Veterans, Military Affairs and tucky Department of Agriculture; Joyce ricultural Development Board for their international events have had a greater Public Protection, 27, 28 help in obtaining $2 million to reno- impact, and for 2009, food prices will State Government, 29, 32, 49 Kinder, Kinder Caviar, Inc; Jan Gould, Kentucky Retail Federation; Darren vate the 4-H camps across the state. He continue to rise but at a slightly slower T Moore, Benjy Kinman, and Darren noted that agents make some of the best rate, he said. Tobacco Settlement Agreement Fund Moore, Kentucky Department for Fish role models and shared that through 4- As for the farm economy, Dr. Snell Oversight Committee, 47, 48 and Wildlife Resources; and James “Jit- H they were able to reach approximately mentioned a Lane Report article, noting Transportation, 33, 46 ter” Allen, Altria. 180,000 students. He shared his appre- that it indicated a $4 billion agriculture LRC Staff: Lowell Atchley, Stefan ciation for the support of the Agricul- economy, and that we have potential to Kasacavage, Susan Spoonamore, Em- tural Development Fund as well as the reach $5 billion in receipts. He said the ily Harkenrider, Donna Little, and Kelly KARE program. In addition, the College article, written in the summer, said cash Blevins. of Agriculture is including “go-green,” receipts for 2008 will be very strong in Representative McKee recognized sustainability, and local food effort in the state. The bad news, however, is that Senator Harris who updated the com- academics, as well as focusing on health input costs are increasing and net farm mittee on the condition of Representa- education with programs such as Second income may be down but will be above tive David Osborne’s mother who was Sunday, which encourages outdoor ac- levels we saw prior to the tobacco buy- in very grave condition. Representa- tivity and fund raising efforts for ovarian out. tive McKee asked the committee to cancer research through the Homemak- Dr. Snell mentioned the 2008 Farm take a moment of silence to remember ers Clubs. Bill, passed by Congress. He noted it the Osborne family. Dr. Cox thanked the General As- primarily offered producers a revenue in- Representative McKee asked for sembly for their support of the Livestock surance program called “Acre.” He said motion on approval of the August 21, Disease Diagnostic Center. She stated that a large part of the bill will encourage 2008 minutes. Representative Pasley that the College of Agriculture is unique conservation programs. He closed by moved that they be adopted. Repre- in that they have diagnostic lab and mentioning that the College of Agricul- sentative Collins seconded the motion. regulatory services. She noted that their ture Leadership Group visited California The motion carried by voice vote. research is ranked in the top ten nation- for a conference this year. He noted the Next, Representative McKee rec- ally. She mentioned that the College has same trip was taken three years ago and

 2008 Interim LEGISLATIVE RECORD how concern grown there. But this year years. He said that corn once purchased Representative Collins requested J.G. Kuhns, J. Henry Duncan, Joe Ball, he returned feeling very optimistic due at $7.80 a bushel under farm contracts that future agendas have a description of and Jessica Jones, Kentucky Woodland to the water issue in the west. He said has come down to $5.40. He said that each administrative regulation that had Owners Association; Bob Bauer, Ken- there are a lot of market opportunities they have seen a number of ethanol been referred to the committee. Repre- tucky Forest Industries Association; Leah for Kentucky agriculture. plants shutting down or projects that sentative McKee agreed and that future MacSwords and Steve Bullard, Kentucky Representative Stumbo asked if were in the process of construction had agendas will contain a description. Division of Forestry; Sandy Gruzesky, there are any programs that look at fea- been put on hold. The price of ethanol Next, Representative McKee wel- Alan Grant, Ron Price, and Peter Good- sibility of other types of crops to convert is directly tied to the price of barrel oil, comed Dale Dobson and Commissioner mann, Kentucky Division of Water. to fuel. as they have exceeded the mandate in Richie Farmer of the Kentucky Depart- LRC Staff: Tanya Monsanto, Low- Dr. Snell responded the Farm Bill terms of ethanol that is used to go into ment of Agriculture to the table to share ell Atchley, Stefan Kasacavage, and Kelly looks at funding more projects in terms the mix of gasoline. with the committee about their farm Blevins. of research. Dean Smith said that yes, Dr. Snell mentioned that there is a safety demonstrations. Commissioner A quorum being present, Rep. McK- the University of Kentucky has done ten billion gallon capacity, and corn pric- Farmer noted that their most important ee commenced the meeting with a mo- work and is looking at lots of possibili- es and the price of oil affects the prof- focus is the safety of Kentucky’s farm- ment of silence in memory of Rep. Larry ties, for example switch grass, canola, itability. The renewable fuel standards ers. Mr. Dobson explained to the com- Belcher who was killed in a tragic car and sorghum. have a mandated level of nine billion gal- mittee about the farm safety program accident over the weekend. Then Rep. Dr. Cox expanded that they are re- lons. and thanked Dean Smith for their coop- McKee discussed a resolution pertain- searching partial refineries for on-farm Representative McKee inquired if eration as they set the demonstration ing requesting the federal government manufacturing of sorghum. there was any unexpected news in the up. He noted that it takes a collection to declare parts of Kentucky a disaster Dr. Halich mentioned pilot proj- grain report. Dr. Snell replied that yields of individuals and agencies to bring this after prolonged drought. After a motion ects to grow switch grass in central and were down nationally, that in Kentucky program to the public. Commissioner and second, the resolution was adopted. northern Kentucky. The grass would be estimated yield for corn was down from Farmer added that this program is one of Then, Rep. Gooch discussed a committee burned to generate electricity. 141 bushels per acre to 137 bushels per their most popular requests for schools resolution relating to recent actions by Representative Stumbo mentioned acre and soy, 39 bushels per acre to 36 and farm communities. He noted they former vice president Al Gore to encour- that our climate is conducive to for- bushels per acre. feel they are beginning to make a great age civil disobedience to prevent to con- age growth. He also mentioned that if Senator Pendleton mentioned the deal of headway in farm safety. struction of new coal fired power plants. they are able to develop grass for fuel, price of gas and the devaluation of the There being no further the business The resolution calls for civil order and that may help with reduction of car- dollar and other factors. Dr. Snell re- was adjourned. ignore such calls for disobedience. After bon dioxide. He noted planting specific sponded that the export market has been a motion and second, the resolution was grasses that can be used for fuel should phenomenal and all of a sudden the dol- adopted. be planted along interstates. Dr. Halich lar is beginning to strengthen. Senator Rep. Collins mentioned that people responded that North and South Dakota Pendleton then mentioned that distiller’s INTERIM JOINT try to step outside of the legal policy and Montana do that. grain can be used by livestock. Copies of COMMITTEE ON process rather than accept what the Representative McKee then asked Dr. Snell’s and Dr. Halich’s handouts are AGRICULTURE AND policy results. Sen. Boswell stated that Dr. Halich to continue with his portion on file with the LRC Library. NATURAL RESOURCES bipartisanship is important in the energy of the agenda. Dr. Halich began by say- Finally, Representative McKee Minutes of the 5th Meeting issue and there should not be disorder. ing that ethanol has an effect on com- noted that Ms. Joyce Kinder, of Kinder of the 2008 Interim Then, both Sen. Kelly and Rep. Nesler modity prices and impacts Kentucky. He Caviar, Inc.; had signed up to speak to October 8, 2008 introduced guests. Rep. McKee then in- mentioned news stories reporting on the the committee to address concerns re- The 5th meeting of the Interim Joint vited the Soybean Association to provide amounts of grain going into the produc- garding some paddlefish administrative Committee on Agriculture and Natural testimony. tion of ethanol. He said that if the cur- regulations. Ms. Kinder agreed that Resources was held on Wednesday, Oc- Aaron Reding and Jack Trumbo dis- rent projections hold on pace to use one regulations are necessary but would like tober 8, 2008, at 1:00 PM, in Room 149 cussed animal agriculture and the asso- third of corn crop fuel for ethanol pro- to see some provisions amended. She of the Capitol Annex. Representative ciation’s partnership with the industry. duction, it will have major implications. specifically noted the revocation of a Tom McKee, Chair, called the meeting to Livestock, poultry and soybeans work He noted that in 2005-2006, the use fisherman’s license or permit could oc- order, and the secretary called the roll. to produce healthy animals. Then the of corn for ethanol increased dramati- cur even though water boundaries were Present were: speakers discussed the economic im- cally. He projected a 33% increase for inaccurate because of GPS positioning. Members: Representatives Jim pact of the industry in terms of earnings 2008. Dr. Halich said that total revenue She stated they feel that license revoca- Gooch Jr., Co-Chair, and Tom McKee, and employment. Then they described has increased beyond input costs from tion is extremely harsh. She also noted Co-Chair; Senators David E. Boswell, Er- efforts to undermine animal agriculture grain growers, creating a net positive. that they could not agree upon snagging nie Harris, Dan Kelly, Bob Leeper, Vernie by pressing for bans on crate barns, ges- From livestock standpoint, cow and calf methods. She said that under the current McGaha, Brandon Smith, and Damon tation stall and other aspects of factory producers are hurting. Stock opera- regulation all snagging methods must Thayer; Representatives Royce W. Ad- farming. They calls for efforts to prevent tors, those who take weaned calves to stop. Finally, Ms. Kinder noted disagree- ams, John A. Arnold Jr., Dwight D. But- unnecessary restrictions and welcomed the point where they are selling them to ment with the size limit, noting that ler, Hubert Collins, James R. Comer Jr., reasonable regulation. feed lots, are doing well right now. As they do not want to hold up the process Tim Couch, Mike Denham, C. B. Embry Rep. Nesler asked about their posi- for pork and poultry, obviously the price but would like the committee to take a Jr., Keith Hall, Richard Henderson, Jimmy tion on county wide planning and zon- of grain is hurting those two sectors. Dr. further look at the regulation. Higdon, Charlie Hoffman, Brad Montell, ing. Mr. Reding responded that the as- Halich noted that if we continue to see Representative McKee noted that Fred Nesler, David Osborne, Sannie Over- sociation is in favor of any zoning that historical highs we will see a shift in land nothing can be changed in committee ly, Don Pasley, Tanya Pullin, Marie Rader, allows for necessary building. Rep. Ri- use from hay production and pastures to without the agency’s agreement. Rick Rand, Tom Riner, Steven Rudy, Dot- ner asked about imports from Mexico corn and soybeans. Senator Harris mentioned the tie Sims, Jim Stewart III, Greg Stumbo, where factory farm techniques are com- Representative McKee asked about Aquaculture Task Force, and asked if Tommy Turner, Ken Upchurch, Robin L. monplace. Mr. Trumbo stated there are implications worldwide as it pertains to the committee can place a letter on the Webb, and Susan Westrom. factory farms in Mexico. The facilities ethanol and corn. Dr. Halich responded regulation that would put the regulation Legislative Guests: Representatives are geared for peak production. Rep. Ri- that the United States is the primary pro- in affect only until the beginning of the Jody Richards and Rick Nelson. ner continued stating that a resolution ducer of corn-based ethanol by far and next legislative session. Guests: Aaron Reding and Jack should be crafted requiring country of the foremost corn producer in the world. Representative McKee noted that Trumbo, Kentucky Soybean Associa- origin on those products. The impact that we have here will have a the committee will review this issue at a tion; Todd Barlow, Kentucky Corn Grow- Then Todd Barlow, representing the major spillover in the rest of the world as later committee meeting. ers Association; Jim Akers, Kentucky corn and small grain growers, provided far as the market price for corn. Representative Riner thanked the Cattlemen’s Association; Mike Ovesen, testimony. Mr. Barlow stated that his Representative McKee asked about Governor’s Office of Agricultural Policy, Kentucky Pork Producers; Dr. Tony Pes- perspective is from those in row crops. the status of ethanol facilities. Dr. Hal- Congressman Hal Rogers, and Ms. Kind- catore, Kentucky Poultry Federation; Kentucky is unique in the way commod- ich responded that they do have the ca- er for acknowledging the great benefit Maury Cox, Kentucky Dairy Develop- ity organizations work together. Then, pacity to go onboard in the next couple Kentucky fishing is to the state. ment Council; Jim Corum, Don Girton, Mr. Barlow offered some statistics in

THE KENTUCKY GENERAL ASSEMBLY  terms of percentage of crop that went to that animal cruelty has been one of the Rep. Nesler asked who produces ment to do so. Then Rep. McKee asked livestock both in the United States and biggest issues for pork producers. Pork and collects fines for the bad actor list. Mr. Moore if the Kentucky Department of in Kentucky. He stated only 15 percent producers have a lot of large farms in Why aren’t they collecting? Mr. Corum Fish and Wildlife Resources would agree went to ethanol and 17 percent is ex- Kentucky and then he described the re- stated that it is not clearly understood. to a deferral and the agency agreed. The ported. The association has set aside lationship between pork producers and Then, Leah McSwords with the Division regulation 301 KAR 2:132 was deferred funds for research and for the promotion the grain farmers. Mr. Ovesen described of Forestry explained that the problem is until the next meeting. The committee of meat, pork and lamb overseas. Ad- a quality assurance program and a trucker in disregard by the bad actors. The di- adjourned at 3:15pm. ditional money was set aside for poultry quality assurance program, and separate vision goes through a civil process and marketing overseas. Then, Mr. Barlow auditing of facilities as reasons for main- must locate the logger’s assets. Also, INTERIM JOINT discussed recruitment and retention taining the quality in pork production. the division cannot impose a cease and COMMITTEE ON of dairies in Kentucky. Finally he dis- Rep. McKee asked if there are a de- desist order, so they are not stopped if AGRICULTURE AND cussed a couple of legislative proposals. creasing number of swine facilities. Mr. the fines aren’t paid. Finally there are no NATURAL RESOURCES First, allow 150 miles of haulage of farm Ovesen replied that producers are con- criminal penalties. Subcommittee on Horse Farming products in-state without a commercial solidating so they have access to capital; Rep. Nelson asked who writes cita- Minutes of the 3rd Meeting driver’s license. Second, increase the however the feeder pig industry has all tions. Ms. McSwords replied the Division of the 2008 Interim limit on the grain indemnity fund to over but disappeared. Sen. Kelly stated that of Forestry inspects and issues violations October 8, 2008 $150,000. the pork producers association has done for noncompliance. A question was The 3rd meeting of the Subcom- Rep. McKee asked if fuel and food a commendable job. Mr. Ovesen agreed raised about the number of bad actors mittee on Horse Farming of the Interim can be produced simultaneously. Mr. and stated that the pork industry is com- in the Eastern versus Western parts of Joint Committee on Agriculture and Barlow stated yes. Rep. Webb asked plex. Today, the citizen oftentimes is so Kentucky. Ms McSwords continued that Natural Resources was held on Wednes- about the specific problem with the CDL. removed from the realities of agricultural the difference between the two regions day, October 8, 2008, at 10:00 AM, in Is the process too hard? Mr. Barlow re- production. is due to how timber buyers impose dis- Room 129 of the Capitol Annex. Repre- sponded that there may be some alter- Joe Pescatore, poultry extension cipline on the sellers. The buyers impose sentative Susan Westrom, Chair, called native process rather than doing away specialist with the University of Ken- pressure on the sellers and this doesn’t the meeting to order, and the secretary with the CDL. It is an inconvenience for tucky, agricultural extension, provided occur in the Eastern part of the state. called the roll. farmers. Rep. Stumbo asked what per- remarks concerning the poultry indus- Rep. Pullin asked about losses from Present were: centage of the corn crop is covered by try in Kentucky. He stated that poultry wildfires. Ms. McSwords stated there is Members: Senator Damon Thay- insurance. Mr. Barlow stated that the is the number one food commodity in no grand total, but roughly $2-3 million er, Co-Chair; Representative Susan percentage of crop insurance is high on Kentucky. It is an $843 million dollar is spend on fire suppression. Rep. Den- Westrom, Co-Chair; Representatives paper but is worthless in practicality industry. Dr. Pescatore agreed that there ham asked for a copy of the PowerPoint Royce W. Adams, David Osborne, Sannie because of the lack of good coverage. needs to be an increase in weight limits and then introduced a guest. He also Overly, Don Pasley, and Tom Riner. Other government programs exist, but so that trucks can haul to and from the asked about the conditions in Eastern Guests: Lisa Underwood, Jamie for example, the farm bill support isn’t farms. Kentucky. Ms. McSwords discussed the Eads, Mary Scollay, Mark Guilfoil, and timely enough. Then Maury Cox with the Dairy De- current burn bans and explained that Patricia Cooksey, Kentucky Horse Racing Then, Jim Akers with the Kentucky velopment Council described the dairy while there are conditions of dryness, Commission; Ginny Grulke, Kentucky Cattleman’s Association described the industry. He stated that dairy ranks most of the fires are deliberately set. Horse Council; and Katie Wilkerson, cattle industry. Mr. Akers stated that 4th in terms of farm gate receipts. The Rep. Denham commended the Divi- University of Kentucky student. Kentucky has been insulated from the dairy losses are significant today. We sion of Forestry for their efforts and Rep. LRC Staff: Lowell Atchley and Katie wholesale reduction in cow herds felt have 90,000 dairy cows in Kentucky, but McKee thanked Rep. Nelson for bringing Carney. across the country. Mr. Akers contin- we are experiencing a loss in process- this issue to the committee’s attention. The presiding chair, Representative ued that the industry is not immune ing milk. Kentucky can process 2.5 bil- Rep. Nelson stated that Speaker Rich- Susan Westrom, called the meeting to from the types of policy assaults from lion gallons, but we are only producing ards has approved a House Task Force on order. Minutes of the July 9, 2008 meet- the animal rights community. However, roughly half that amount. Milk prices the Forestry issue and invited Senate col- ing were approved, without objection, we have ensured that there is compli- continue to decline even as the milk leagues to participate in a joint task force by voice vote upon a motion by Repre- ance with the handling of animals. Rep. to feed ratio tightens. This indicates a on woodland issues. This industry has a sentative Pasley. Steward asked whether Bluegrass Stock- tougher time for farmers. Milk is coming $4.6 billion dollar impact on the state. Co-chair Westrom invited repre- yards is disinfected. Mr. Akers replied no in from other states and the reason the Rep. Collins stated that the bad ac- sentatives of the Kentucky Horse Racing because disinfection does not work ade- raw milk isn’t processed here is that it is tor list doesn’t describe the county and Commission (KHRC) to introduce them- quately in facilities with a dirt floor. We cheaper to transport the processed milk the violation and furthered that the vio- selves to the subcommittee. Appearing do disinfect water and veterinary facili- to Kentucky. lation could be corrected with consulta- were: Ms. Lisa Underwood, Executive ties. Rep. Steward furthered that in Vir- Sen. Harris asked if there is a pre- tion. The Division of Forestry retorted Director, Dr. Mary Scollay, DVM, Equine ginia the stockyards are disinfected and mium for butter fat over 3.5%. Yes, re- that the Forest Conservation Act was set Medical Director, and Ms. Jamie Eads, Di- that Kentucky has some of the nastiest plied Mr. Cox. The butter fat price is fig- up in the manner he described. First we rector of Incentives Development. stockyards in the nation. He stated that ured in the price of the milk. Then, Rep. talk with the violator, and then we is- Beginning first, Ms. Underwood disinfection would help with cattle sick- McKee asked for a motion and a second sue a warning and then offer an informal made some initial remarks and then dis- ness and make them more attractive to for the approval of the July minutes. The conference. If after warning and consul- cussed a wide range of issues affecting buyers. Finally, Rep. Stewart asked if the minutes were approved. Then, co-chairs tation the violation continues then the the agency since last reporting to the association would be against identifying from the three subcommittees gave their division issues a notice of violation and subcommittee. Ms. Underwood noted all the sellers on receipts. Mr. Akers re- subcommittee reports. After a motion set a period of time for correction. Only this year had been a tough one for the sponded that he objects to listing sellers and a second, all three reports were ap- after that time is lapsed does the division horse racing industry, with some high on paper. Regarding the disinfection pro- proved. issue a violation and determine a fine. profile incidents that cast the industry cess, the science shows that large scale Jim Corum and Don Girton dis- That is ample consultation. in a negative light, prompting discussion disinfection is not economically efficient, cussed the state of the forest industry in Rep. Webb stated there were con- of federal regulation of the industry. But but they welcome economic assistance Kentucky. He described the groups that cerns crafting that act, but no com- Kentucky is in the best position to regu- with disinfection. provided input to the findings of the pre- plaints have since been received. The late the industry in the state, according Rep. Webb asked about cattle thefts sentation which included the Kentucky budget for Natural Resources took a to the speaker. and the process for ensuring stolen cattle Woodland Owners Association, Ken- hard hit and Forestry was cut severely. Regarding the high profile incidents, do not end up in their markets. Mr. Ak- tucky Forest Industries, Kentucky Farm They need money. Then Rep. Collins Ms. Underwood said the commission ers stated that there are tight controls. Bureau, and the Division of Forestry. asked Darin Moore to discuss a regula- was able to act quickly and the industry It would not be possible to sell the sto- Then, Mr. Corum described the industry tion involved elk depredation permits. itself banded together. len cattle. in terms of its productivity and econom- Rep. Turner then expressed anger that he Next, Ms. Underwood reviewed Mike Ovesen, Kentucky Pork Pro- ic value and made recommendations on and Rep. Collins were not consulted on some issues before the commission, ducers Association, provided informa- how to improve the economic impact of the development of the regulation. Both including the issuance of Spanish lan- tion about the pork industry. He stated that industry. indicated that there was a formal agree- guage licenses and the posting of poli-

 2008 Interim LEGISLATIVE RECORD cies in Spanish; Internet-based licensing; racing. According to Dr. Scollay, the ban General Assembly will be blamed for the plimented Ms. Underwood on the hiring phased-in mandatory fingerprinting be- will be phased in over 90 days to avoid license fee increases. of Dr. Scollay and Ms. Eads. ginning with trainers; background checks affecting horses that received adminis- Senator Thayer pointed out that, by He said the Breeders’ Incentive Pro- on several types of horse racing licenses; trations of anabolic steroids prior to the statute, the commission may use money gram has been successful, as exemplified a revamping of the licensing regulation, signing of the emergency regulation. from the stud fee sales tax receipts that by increases in thoroughbred breeding bringing it in line with a national model; Dr. Scollay discussed the equine in- go into the Breeders’ Incentive Program and the growth of the quarterhorse in- an increase in fees for certain classes of jury database. According to the speaker, to run the program. However, the goal dustry in the state. licensees; and balancing of the Kentucky 75 tracks nationwide, representing 78 from the regulatory level was to not tap Senator Thayer said he is opposed Thoroughbred Development. percent of race starts, have agreed to into the money so it could be distribut- to federal regulation of horse racing. He Ms. Underwood made note of the take part in supplying injury. Information ed as reward payments to those in the mentioned Kentucky’s leadership in the restructuring of the agency and the cre- may be reported on-line. She said they horse industry, according to the senator. racing industry. ation of the Governor’s Task Force on the are working on a training/non-race relat- He said most horse industry representa- The senator discussed his involve- Future of Horse Racing and the establish- ed injury reporting pilot project. Among tives are glad to pay the $50 eligibility ment in KHRC funding issues and in ment of some task force working sub- issues identified were that an inconsis- fee, which goes toward administration. pursuing legislation in that regard. Ac- committees; KHRC’s creation in May of tency exists between racing jurisdictions Senator Thayer said he was contem- cording to Senator Thayer, Kentucky ap- a Safety and Welfare Committee, which with regard to reporting, and there exists plating legislation to eliminate the abil- parently is the only state that assesses has made several recommendations to a need to collect training injury data. ity of the commission to use a portion of tracks a fee to generate funds that, in the full committee that included the Dr. Scollay also went over the sta- the breeders’ incentive funds since the turn, are used in their regulation. He said elimination of toe grabs on horses and tus of the necropsy program, which rep- registration fee arrangement has worked the assessment, based on the number of introduction of a standardbred whipping resents an attempt to establish a manda- so well. racing dates, is unfair to Ellis Park and rule. The Safety and Welfare Committee tory necropsy program for all horses that Responding to Representative Ad- Turfway because they have the most rac- is working on other rules, including one die or are euthanized at facilities licensed ams, Ms. Underwood said the commis- ing days, but are struggling financially. affecting thoroughbred riding crops, ac- by the KHRC. sion was operating on reserve funds, but Senator Thayer said he will be work- cording to Ms. Underwood. Next, Ms. Eads presented a written will exhaust those funds at some point, ing with a colleague in the Senate on leg- On the issue of medications, she report on the three facets of the Breed- creating a deficit. She said the agency had islation to remove the assessment pro- pointed out one of the most high profile ers’ Incentive Program – the thorough- $600,000 in reserves carried forward. cedure from statutes and, in turn, direct action was the banning of anabolic ste- bred fund, the standardbred fund, and Commenting on the license fee in- $5-$6 million from the pari-mutuel tax roids in race horses. the horse breeders’ fund, consisting of creases, Representative Osborne said the into a revolving fund to be used by the She said the task force has been mostly non-race breeds. $100 fee had been in existence for some commission for its operations. Respond- working on agency funding and staffing According to the report, an estimat- time. ing to Ms. Underwood’s observation issues and will be making some recom- ed $16 million will be awarded this year According to Representative Os- that the pari-mutuel tax is subject to de- mendations in that regard. in the thoroughbred category. A total borne, he has a number of horse racing cline, Senator Thayer said that, while not The KHRC will have a $5,000 deficit of 11,742 mares were registered in the partners from other parts of the United consistent, the funding source would be in its budget this fiscal year, but faces a program by August 2008, an increase of States who have faced breakdowns in better than what is currently available. $613,000 deficit in FY 2010, according 457, and for the second year in a row, dealing with the National Racing Com- Before the meeting ended, Co-chair to the speaker. She said they are look- Kentucky showed an increase in mares pact (an independent interstate licens- Westrom noted it was irresponsible to ing at limiting the deficit and not adding bred, even as overall industry activity ing organization). Ms. Underwood said not provide the needed funding to the staff. Ms. Underwood pointed out that declined. she had heard the complaints before and commission. the commission does not receive money The centerpiece of the Standardbred had raised the issue with the Associa- Documents distributed during the for operations from Breeders’ Incentive Breeders’ Incentive Fund is the Kentucky tion of Racing Commissioners Interna- subcommittee are available with meeting Program tax receipts. Sire Stakes, which had purses totaling tional (RCI). Representative Osborne materials in the LRC Library. The meeting Regarding funding, Ms. Underwood $3,351,000, according to the report, responded that licenses seem only to be ended at approximately 11:15 a.m. said the commission started assessing which indicated a recommendation is produced when requested. race tracks again beginning in August. that the same purse structure should be Ms. Underwood also said she would That will give the agency $355,000 for maintained in 2009. provide some information to Represen- INTERIM JOINT its budget this fiscal year and $407,000 The report showed that $1,370,007 tative Osborne regarding how many COMMITTEE ON in FY 2010. Licenses fees for certain was allocated in the non-race breed cat- non-race breed associations are award- AGRICULTURE AND classes will increase from $100 to $150 egory in 2007. The quarterhorse seg- ing money outside Kentucky. NATURAL RESOURCES for those in the thoroughbred industry, ment received $446,629 of the non-race Co-chair Westrom cited statistics Subcommittee on Rural Issues and from $100 to $125 for those in the funds. in the KHRC report that indicated Okla- Minutes of the 2nd Meeting standardbred industry under the new Following their reports, Ms. Un- homa had experienced a 17-plus percent of the 2008 Interim administrative regulation. Those increas- derwood said she would provide data increase in the number of live foals born October 8, 2008 es should generate $258,000 in FY 2009 to Representative Riner, who asked how in 2008 compared to 2007. Ms. Under- The 2nd meeting of the Subcom- and $478,000 in FY 2010, the speaker Kentucky’s racing license fees compare wood said one aspect of the task force mittee on Rural Issues of the Interim said. with other states. is to review the Breeders’ Incentive Pro- Joint Committee on Agriculture and Next, Dr. Scollay addressed some of Ms. Underwood told Representative gram to assure that it remains competi- Natural Resources was held on Wednes- the issues in which she is involved, in- Pasley that the commission operates the tive with other states. Ms. Underwood day, October 8, 2008, at 10:00 AM, in cluding medication regulation, anabolic Breeders’ Incentive Program with funds said she would obtain that information Room 149 of the Capitol Annex. Rep- steroid control, the equine industry da- generated from registration fees assessed for the subcommittee. resentative Mike Denham, Chair, called tabase, and the necropsy program. on horse owners, not from stud fee sales Ms. Underwood responded to Co- the meeting to order, and the secretary Dr. Scollay told the subcommittee tax receipts coming into program. She chair Westrom, who asked about the ne- called the roll. that few substances may be identified said the racing license fees will go to- cessity of fingerprinting licensees. Other Present were: exclusively as either therapeutic or non- ward commission operations. jurisdictions fingerprint all licensees, Members: Senator Vernie McGaha, therapeutic, and, in most cases, deter- Representative Pasley observed that but Kentucky is starting with trainers, Co-Chair; Representative Mike Denham, mining a substance’s legitimacy requires the tobacco settlement program allows Ms. Underwood said. As for background Co-Chair; Senator Bob Leeper; Represen- contextual analysis. program administrators to take a 5 per- checks, they want to make sure that the tatives Dwight D. Butler, James R. Comer She reviewed the timetable for ban- cent fee for running projects. Ms. Un- people participating in the sport do not Jr., C. B. Embry Jr., Marie Rader, Steven ning the presence of anabolic steroids derwood responded that, thus far, they have a criminal background, and that Rudy, and Tommy Turner. in race horses. The Governor signed an have operated the Breeders’ Incentive they have not fixed races or used drugs. Guests: Dr. David Freshwater, Uni- emergency administrative regulation in Program with registration fees and they She said the background checks will be versity of Kentucky, Department of Ag- September, putting the ban in effect. have avoided using tax moneys used to processed through an RCI database. riculture; Roger Thomas, Governor’s The ban provides for some conditional pay bonuses the incentive program. People denied a license may appeal, she Office of Agricultural Policy (GOAP); therapeutic administration, but with a Speaking further, Representative said. Mitchell W. Whittle, Farm Loan Chief, required interlude from treatment until Pasley said he was concerned that the Speaking next, Senator Thayer com- United States Department of Agriculture

THE KENTUCKY GENERAL ASSEMBLY  (USDA) Farm Services Agency (FSA); and loan crisis and part of the commercial types of commodity operations and then (FCS) and its relationship to GOAP. He Robert Monk, Farm Credit Services (FCS); bank’s secondary market. Dr. Freshwater he said some money has been used to stated that FCS of MidAmerica is part Mark Farrow, Kentucky Department of stated yes. Farmer Mac was the second- build tobacco barns. of the farm credit system under federal Agriculture, Mike Haydon, Governor’s ary market for the farm credit banks. Then Rep. Rader asked about the future charter. It provides products not other- Office; Drew Graham, University of Ken- Dr. Freshwater explained the importance of the grape market. Mr. Thomas stated wise available such as fixed rate mort- tucky, and House Speaker Jody Richards. of debt relative to payment capacity as a that Agricultural Finance Corporation gages on farms at competitive rates. He LRC Staff: Tanya Monsanto, Com- way to measure to soundness of current has not made direct loans for grape pro- described the offices and locations, cus- mittee Staff Administrator and Susan lending. From 1975 to 1979 the debt re- duction but the Agricultural develop- tomer base and loans outstanding. He Spoonamore, Committee Assistant. payment ratio was around where it is to- ment board has awarded funds to grape stated that the funds for loans come The minutes for July 9, 2008 were day, but does that does not reveal some growers. Rep. Rader further asked about from farm credit bonds let through the not approved due to the lack of a quorum. underlying concerns. First, the potential the requirements for a beginning farmer farm credit funding system. Delinquen- Then, Chairman Denham invited Dr. Da- overvaluation of farmland could result in loan. Mr. Thomas described some of the cies on loans are under 1 percent and a vid Freshwater, University of Kentucky’s under secured loans if farmland prices requirements and stated that other in- specialized staff to assist distressed bor- Department of Agriculture to provide fall. Second, the diminution of tobacco, formation would be provided to the com- rowers. Then Mr. Monk described some testimony. He explained the steps that thoroughbreds, and textiles as sources mittee. Finally Rep. Rader asked about concerns shared by Dr. Freshwater such triggered the world-wide financial crisis, of Kentucky-specific revenue could leave the reduction of agricultural programs in as overall economic declines, significance and the crisis’s effect on Kentucky’s ag- farmers much more exposed than in the schools. Mr. Thomas stated that in the of revenues after 2 years of drought, im- riculture. Dr. Freshwater said that the 1980s farm crisis. Third, dealer credit strategic plan for agriculture, agricultural pact of oil prices and over reaction by difference between the financial crisis may tighten, and interest rates likely will programs in schools are a priority. How- regulators. now and that of the 1980’s, is the de- increase. Fourth, there will be less federal ever, change in this trend will require ac- He continued that business start cline in home prices. Today, the decline money for agriculture as funds are used tion by the General Assembly. ups and weaker credit customers will in home prices initially affected inves- for the general bailout. Rep. Denham then recognized have more problems. Loans will still be tors and providers of financial derivatives Rep. Denham asked where price in- Speaker Richards in the audience. Sen. available for credit worthy rural borrow- that were based upon the performance creases will occur. Dr. Freshwater said Leeper commented that some programs ers. Loans will cost more and lenders will of securitized pools of home mortgages. cattle. for agriculture are abused like the PACE use more due diligence in applications. From there, the crisis has spread to al- Sen. McGaha asked about the re- program. He asked if safeguards are in Collateral requirements will be tougher most all major financial transactions in lationship of agriculture to input prices place to prevent misuse of funds. Mr. and equipment and farm land values may the United States. The financial crisis like fertilizer. Dr. Freshwater stated that Thomas replied yes and then he discussed soften. Risky loans won’t be made. has reached global proportions and it fertilizer prices are likely to drop rapidly the recent audit of the board. Rep. Rudy Rep. Denham asked about the Feder- is affecting credit and economic condi- in the future. It will drop faster than asked how GOAP has promoted its loans. al Reserve’s recent expectation of a 40% tions. equipment and seed. Mr. Thomas stated through newsletters, drop in values. Does FCS have problems Dr. Freshwater continued that on Issues that concerned Dr. Freshwa- electronic messages, and new brochures. selling bonds? Mr. Monk responded no paper, agriculture appears to be in good ter were: Rep. Rudy stated that it would be good but the cost of letting those bonds has shape due to low debt levels and strong The massive amounts of money to bring those messages into the sec- gone up. He continued that there are a incomes which are the result of govern- that the Federal government is spending ondary and postsecondary schools. couple of pertinent differences between ment payments and high commodity which may have an impact on future in- Sen. McGaha asked about loan caps. the 1980 farm crisis and today. There is prices. However, in the last five years, terest rates; Mr. Thomas stated there was a $100,000 a higher percentage of farm mortgages farmland has rapidly increased in value. Loss in support for agriculture with cap for both types of loans which was that are fixed rather than adjustable rate. If the value of farmland declines, then it an emerging tight budget; raised to $250,000 and this is the rea- Also operations are more consolidated will leave lenders under-secured. The global recession which appears sons for the increased participation dur- than in the 1980s. They should be more Rep. Denham asked Dr. Freshwater to be causing commodity prices to fall; ing 2008. secure as a result. to define a financial derivative or mort- and Rep. Denham invited Mr. Mitchell gage backed security. Dr. Freshwater Farm input costs which have in- Whittle with USDA Farm Services Agen- stated that the mortgage originated by a creased rapidly and are unlikely to fall as cy (FSA) to describe the agency and its INTERIM JOINT COMMITTEE local bank is sold, pooled, and packaged fast as farm product prices. role in farm lending. Mr. Whittle stat- ON APPROPRIATIONS AND by a bank like Fannie Mae or Freddie Mac Then, Rep. Denham invited Roger ed that FSA has been making loans for REVENUE as a security. The security can be sold Thomas from the Governor’s Office of 25 years and has over 10,500 borrow- Minutes of the 1st Meeting in the financial markets and people buy Agricultural Policy (GOAP) to provide a ers. Then he described the number of of the 2008 Interim them. description of the financing options of- loans by farm type stating that tobacco August 28, 2008 Rep. Denham asked if the trading in fered through the Agricultural Finance and dairy have declined while poultry The 1st meeting of the Interim Joint derivatives triggered the losses and the Corporation. Mr. Thomas focused on and goats have increased. The Kentucky Committee on Appropriations and Rev- financial crisis. Dr. Freshwater stated yes two programs, beginning farmer and FSA has 4300 borrowers have approved enue was held on Thursday, August 28, but qualified that first came the drop in infrastructure lending. Mr. Thomas de- $90.6 million in loans. There are 18 farm 2008, at 1:00 PM, in Room 154 of the housing prices and then the problems scribed when the agricultural finance lending teams around the state. Capitol Annex. Representative Harry with trading. lending programs were initiated and the Rep. Denham asked whether there Moberly Jr., Chair, called the meeting to Then Dr. Freshwater described the number and performance of loans since is additional money from USDA under order, and the secretary called the roll. four major sources of agricultural credit: inception. Mr. Thomas described an in- other programs. Mr. Whittle said yes. Present were: commercial banks, dealer credit, farm crease in loans in both programs since Rep. Embry asked about disadvantaged Members: Senator Charlie Borders, credit system and life insurance com- December 1, 2007 which he attributed farmers. Mr. Whittle stated that FSA has Co-Chair; Representative Harry Moberly panies. There are also government loan to changes in how the programs operat- not made a loan to date for socially dis- Jr., Co-Chair; Senators David E. Boswell, guarantees but these are not originated ed. He explained that both programs are advantaged farmers. Rep. Embry asked Tom Buford, Denise Harper Angel, Ernie loans. The four major sources get their participation loans which rely on local if you can be white and disadvantaged, Harris, Dan Kelly, Bob Leeper, Vernie Mc- money from Wall Street and farmers lenders to recommend applicants. Low and Mr. Whittle replied no. Then Mr. Gaha, R.J. Palmer II, Tim Shaughnessy, are exposed to risk because of the con- interest loans are provided through the Whittle stated that he shares concerns Brandon Smith, Robert Stivers II, Gary nection between Wall Street and those program and Mr. Thomas described the stated by Dr. Freshwater concerning in- Tapp, Elizabeth Tori, and Jack Westwood; sources of agricultural credit. Then Dr. importance of the program. creases in interest rates and its impact Representatives Royce W. Adams, John Freshwater described the origins of the Rep. Denham asked what the be- on agriculture. A. Arnold Jr., Scott W. Brinkman, Dwight 1980 agricultural crisis which was due ginning farmer loans are used for. Mr. Rep. McGaha asked about the dif- D. Butler, Larry Clark, James R. Comer Jr., predominantly to a drop in farmland Thomas stated that they are for various ference in beginning farmer definitions Jesse Crenshaw, Mike Denham, Bob M. values. The decline in farmland values types of farm operations such as poultry for FSA and GOAP. Mr. Whittle stated DeWeese, Danny Ford, Derrick Graham, resulted in defaults and triggered succes- and dairy and can be used to purchase they are similar and that the cap for the Keith Hall, Jimmy Higdon, Jimmie Lee, sive bailouts in the 1980s. equipment. Rep. Denham asked for the loan is $225,000. Rick G. Nelson, Fred Nesler, Don Pasley, Rep. Denham asked if Freddie and same for infrastructure loans which Mr. Then Mr. Robert Monk provided a Marie Rader, Rick Rand, Charles Siler, Ar- Fannie Mae were a result of the savings Thomas described in terms of different description of the farm credit services nold Simpson, John Will Stacy, Tommy

10 2008 Interim LEGISLATIVE RECORD Turner, John Vincent, Jim Wayne, Robin that this left the Fund with an ending Nesler, Don Pasley, Charles Siler, Arnold how it flows through the Department of L. Webb, and Brent Yonts. balance of $27.2 million. Director Las- Simpson, John Will Stacy, Tommy Turner, Financial Incentives. She ended by dis- Guests: Commissioner Thomas siter said that the majority of growth in Robin L. Webb, and Brent Yonts. cussing the six projects which have been Miller, Department of Revenue; Mary the Road Fund was due to the increase in Guests: Commissioner Donna Dun- given preliminary approval to receive Lassiter, State Budget Director; Jim Host, the motor fuels tax. can, Department of Financial Incentives, IEIA incentives. Chairman, Louisville Arena Authority. Finally, Director Lassiter discussed Cabinet for Economic Development; Kris Representative Webb asked how LRC Staff: John Scott, Jennifer Hays, budget planning for FY 09 and current Kimel, Kentucky Science and Technology many projects have been denied. Com- Eric Kennedy, and Sheri Mahan cost saving efforts. She said that state Corporation; Secretary Len Peter, Energy missioner Duncan replied that none to Chairman Moberly welcomed the agencies are focusing more on the core and Environment Cabinet; Dr. Rodney date have been denied, but there are new Commissioner Thomas Miller of the mission of that agency, and focusing Andrews, Director of the Center for Ap- several companies who are still under Department of Revenue and asked him their resources in way that best meet plied Energy Research; Dr. Jim Cobb, Di- consideration because of some technical to briefly address the committee. Com- that mission. Agencies are reducing op- rector of the Kentucky Geological Survey; questions regarding the project. missioner Miller greeted the members erating costs in various ways, such as Paul Kaplin, Finance and Administration Representative Denham asked for and briefly discussed his vision for the reductions in travel, office supplies, con- Cabinet. a description of the types of companies Department of Revenue. tracts, office space, and use of state cars. LRC Staff: Pam Thomas, Jennifer that are applying for the IEIA incentives. Next, Mr. Jim Host, Chairman of the She stated that HB 406 required $179.9 Hays, Charlotte Quarles, John Scott, and Commissioner Duncan answered that Louisville Arena Authority, updated the million in General Fund expenditure re- Sheri Mahan. most companies are partnerships newly committee regarding the Louisville Arena ductions, and measures to meet this Senator Boswell moved that the registered with the state. Project. Mr. Host detailed the history of mandate have included reduction in per- minutes from the previous meeting be Next, Mr. Kris Kimel and Mr. Matt the project and discussed the current sonnel costs through attrition and retire- approved as written. The motion was McGarvey of the Kentucky Science and status of the property, construction con- ments, reduction in excess debt service, seconded by Senator Harper-Angel. The Technology Corporation provided an tracts, and financing. implementation of efficiencies and cost- motion carried by voice vote. overview of the venture capital start up Finally, State Budget Director Mary saving measures, and debt restructuring. Commissioner Donna Duncan of program established under HB 1. He Lassiter, John Hicks, and Greg Harken- She discussed the Governor’s objectives the Department of Financial Incentives stated that intent of the Kentucky New rider reported to the committee on state and desire to preserve budget priorities. provided the committee with an update Energy Venture Fund (KNEV) is to en- revenue receipts and implemented cost She also discussed preliminary plan to of energy projects approved to date un- courage the growth of new alternative saving measures. She stated that the balance the FY 09 budget, and provided der the Energy Independence Act (HB 1). and renewable energy companies. He General Fund grew in Fiscal Year (FY) 08 on update on state government retire- She discussed the project review process, said that the fund is managed by the by 1.1%, which resulted in total rev- ments. as defined in statute. She stated that the Kentucky Science and Technology Cor- enues of $8,664.3 million for the year. Chairman Moberly addressed the Incentives for Energy Independence Act poration (KSTC) and administered by the This amount was $28 million greater for committee regarding a resolution honor- (IEIA) program is different from other Department for Commercialization and FY 08 than General Fund receipts an- ing Ruth Webb’s service to the Appro- economic incentive programs in con- Innovation (DCI). The guidelines for ap- ticipated by the Consensus Forecasting priations and Revenue Committee and cept and process. This program does plication and approval for funds were es- Group (CFG). the General Assembly. Chairman Borders not require the Cabinet to have in-house tablished by KSTC and approved by DCI. Director Lassiter then discussed the read the resolution and the committee energy technology expertise, but rather Next, Mr. Kimel provided more de- current budgetary view. She stated that unanimously adopted the resolution. relies on the Office of Energy Police and tail, discussing the statutory definition there was $28 million in revenues greater Being no further business, the meet- the Center for Applied Energy Research of alternative fuels and renewable ener- than what was budgeted and that there ing was adjourned at 3:30 p.m. as consultants. gies. He also discussed KNEV eligibility were $7.8 million in unbudgeted appro- A copy of meeting materials is avail- Commissioner Duncan discussed requirements, which include that the priation lapses. This resulted in a poten- able in the Legislative Research Com- the eligibility requirement for companies company be a high growth opportunity, tial $35.8 million General Fund surplus, mission library, and a video tape of the and projects. She stated that any project developing and commercializing alterna- but when fund transfers, dedicated rev- meeting is available from the Legislative that constructs, retrofits, or upgrades a tive fuels and renewable energy products, enues greater than those budgeted, and Research Commission Public Informa- facility to increase production and sale processes, and/or services. Also, that unbudgeted expenditures are taken into tion Office. of alternative transportation fuels would the business’ principal place of business account there is a $22.7 million General meet the requirements. Also, a company be within Kentucky or at least 51% of Fund surplus. She stated that by statute that would increase the production and its property and payroll located in Ken- 50% of the surplus must be deposited INTERIM JOINT COMMITTEE sale of synthetic natural gas, chemicals, tucky. Mr. Kimel stated that the funds into the Budget Reserve Trust Fund and ON APPROPRIATIONS AND chemical feed stock, or liquid fuels from may be used to support the achieve- the remainder into the General Fund Sur- REVENUE coal, biomass resources or waste coal ment of operation milestones required plus Account. Director Lassiter stated Minutes of the 2nd Meeting through gasification or generates elec- to commercialize the product, which can that the Budget Reserve Trust Fund cur- of the 2008 Interim tricity for sale through alternative meth- include a business plan, market strategy, rently has a balance of $226.1 million, September 22, 2008 ods would meet the requirements for in- commercialization, or prototype devel- with an unobligated balance of $35 mil- The 2nd meeting of the Interim Joint centives. Each type of project has certain opment. The KNEV funds may be dis- lion. Committee on Appropriations and Reve- requirements, such as a minimum capital tributed through grants, investment or Director Lassiter discussed the Gen- nue was held on Monday, September 22, investment, carbon capture readiness, or matching funds. eral Fund revenue growth. She said that 2008, at 1:00 PM, in Room 154 of the minimum kilowatt generation. Mr. Kimel provided a timeline for the growth for FY 08 was 1.1%. She then Capitol Annex. Senator Charlie Borders, Next, Commissioner Duncan dis- the fund, stating that the first award stated that the estimated growth for FY Chair, called the meeting to order, and cussed the different incentives available notifications were distributed on July 7, 09 is 2.6% and for FY 10 is 2.8%. Gen- the secretary called the roll. to companies meeting project require- 2008. He stated that by the first appli- eral fund receipts for July 08 were $646 Present were: ments. She stated that tax incentives cation deadline the fund received 17 ap- million, which is 1.9% growth over July Members: Senator Charlie Borders, are available for up to 25 years and up to plications, which included 4 investment 07. Co-Chair; Representative Harry Moberly a maximum of 50% of the capital invest- and 13 grant applications. Mr. Kimel Next, Director Lassiter discussed the Jr., Co-Chair; Senators David E. Boswell, ment. The various tax incentives include stated that the prospective project areas Road Fund receipts and future outlook. Denise Harper Angel, Ernie Harris, Dan sales and use tax refunds, coal severance of interest include biofuel, coal, wind/ She stated that the Road Fund grew by Kelly, Alice Forgy Kerr, Bob Leeper, R.J. tax incentives, corporate income or lim- solar, and other renewable projects. He 3% in FY 08 to $1,262 million, with a Palmer II, Richie Sanders Jr, Tim Shaugh- ited liability entity tax incentives, and then gave a brief overview of the compa- majority of the funds coming from mo- nessy, Brandon Smith, Gary Tapp, Eliza- wage assessment incentives. She said nies who have received awards from the tor fuels and motor vehicle usage taxes. beth Tori, Johnny Ray Turner, and Jack that some projects may qualify for ad- fund. Finally, Mr. Kimel briefly discussed Even with the growth, the FY 08 Road Westwood; Representatives Royce W. vanced disbursement of the incentives alternative/renewable energy efforts in Fund receipts were below revised CFG Adams, Dwight D. Butler, Larry Clark, which is structured like a loan where the other states. estimates. The Road Fund had $20 mil- James R. Comer Jr., Jesse Crenshaw, future tax incentives earned are used to Representative Webb asked if there lion less in revenues than were budget- Mike Denham, Bob M. DeWeese, Danny repay the loan. are factors that inhibit the receipt of ap- ed, but the Fund had $47 less in expen- Ford, Derrick Graham, Keith Hall, Jimmy Commissioner Duncan provided a plications for east Kentucky projects. ditures than were budgeted. She stated Higdon, Jimmie Lee, Lonnie Napier, Fred basic outline of the approval process and Mr. Kimel stated that there have been a

THE KENTUCKY GENERAL ASSEMBLY 11 number of applications to the rural de- match monies. paid for by the state be designed, con- Each time an Order Referring to Master velopment fund, and the KSTC is actively Dr. Andrews stated that with the structed, or renovated to meet high per- Commissioner or Order Referring to Spe- seeking applications from companies in funds provided the CAER has been able formance building standards. Also, high cial Master Commissioner is filed, the rural and east Kentucky locations. to double the size of its biomass/biofu- performance buildings are to be given Circuit Clerk collects a $100 fee. The Senator Leeper asked what has els laboratory. Also, they have started a preference in leasing by the state. He numbers reflect the equivalent of that caused the decline in applications. Mr. study in biological carbon capture, uti- discussed the qualifications for high per- fee. He stated that foreclosure sales in McGarvey stated that the fund accepts lizing algae systems for scrubbing. He formance buildings and the importance Kentucky were as follows: 2005 foreclo- applications four times a year, which said that the algae system uses CO2 as of green building construction. He dis- sure sales 10,100; 2006 foreclosure sales is very frequent compared with other feedstock and the byproduct can be con- cussed the LEEDS, Green Globes and En- 14,000; 2007 foreclosure sales 15,900 funds. This is to make the fund as acces- verted to biodiesel. He provided further ergy Star rating systems for construction and 2008 year-to-date foreclosure sales sible as possible. He stated that there details of the process and future demon- and energy efficiency performance. Mr. 8,500. was some build up anticipation with all stration project. Dr. Andrews discussed Kaplin discussed the “Kentucky Blue- Representative Ron Crimm stated the press that HB 1 received so there was the CAER’s post-combustion CO2 cap- grass Turns Green” program, discussing that the report certainly indicates a seri- an initial flood of applications. He said ture pilot plant and various research the grant fund and the private sector ous problem. he believes that the second application projects. He also briefly discussed the loan fund. He stated that the cabinet is Representative Tommy Thompson period will be more indicative of future Carbon Management Research Group, currently drafting administrative regula- asked how long the foreclosure sale pro- application activity. which is a state-CAER-industry consor- tions to outline the application process. cess is from start to finish. Senator Sanders asked how many tium. This group will work to develop There being no further business, Debra Crocker stated that depends jobs will be created by the approved more energy and cost effective technolo- the meeting was adjourned at 3:10 p.m. on the individual Master Commissioner. projects. Mr. McGarvey replied that gies, develop guidelines for technology A cassette tape of this meeting and all Richard McQuady, Interim Chief there is no job creations requirement for selection for specific sites, and provide meeting materials are available in the Executive Officer, Kentucky Housing approval in KNEV funds. firsthand experience in CO2 capture. Legislative Research Commission library. Corporation (KHC), discussed the estab- Senator Boswell asked if the vola- Representative Hall asked if the al- lishment and progress of the Kentucky tility of the energy industry is a factor gae process also captured sulfur diox- Homeownership Protection Center. Mr. for companies considering entering the ide (SO2) and nitrogen dioxide (NO2). McQuady introduced Brenda Walker, market. Mr. Kimel replied that yes the Dr. Andrews stated that there are over Senior Director of the Kentucky Home volatility can be a factor in the decision 50,000 varieties of algae and some do INTERIM JOINT COMMITTEE Ownership Protection Center. Mr. Mc- making process for companies consider- consume sulfur, but further study is ON BANKING AND Quady provided the committee with a ing entering the energy marketplace. needed to see if SO2 and NO2 removal INSURANCE report outlining the foreclosure process Next, Secretary Len Peter or the En- is achieved in the process. Minutes of the 3rd Meeting as well as the number of contacts, initial ergy and Environment Cabinet discussed Next, Dr. Jim Cobb and Mr. David of the 2008 Interim mortgage position, and current status of the Carbon Management Report and the Harris of the Kentucky Geological Sur- September 23, 2008 the homeowner’s who have contacted Center for Renewable Energy and Envi- vey (KGS) discussed CO2 sequestration The 3rd meeting of the Interim Joint the Kentucky Homeownership Protection ronmental Stewardship. Secretary Peters research project being done under HB 1. Committee on Banking and Insurance Center. He stated that to date the Home provided a general overview of the Car- Dr. Cobb stated that this project is the was held on Tuesday, September 23, Ownership Protection Center (HPC) has bon Management Report, briefly discuss- largest carbon sequestration project in 2008, at 10:00 AM, in Room 149 of the received 618 contacts and has referred or ing the need for further investigation and the country without federal funding. He Capitol Annex. Representative Tommy completed 407. He stated that the HPC decisions to be made regarding the legal discussed the funding for the test proj- Thompson, Chair, called the meeting to has a 48 hour turnaround on client cases issues surrounding carbon sequestration. ect, stating that the total of state and order, and the secretary called the roll. made by web (www.ProtectMyKyHome. He stated that issues such as legal liabil- industry funding totals $14.89 million. Present were: org) or call center request (800-633- ity and ownership of stored CO2 need Dr. Cobb stated that the project will be Members: Representative Tommy 8896). He stated that the HPC helps cli- to be clarified. He discussed proposed located in Hancock County and will be Thompson, Co-Chair; Senators Julian ents understand the foreclosure process, carbon management legislation at the 8300 feet deep. M. Carroll, Julie Denton, Dorsey Rid- helps manage finances and attempts to federal level. Secretary Peter discussed Dr. Cobb detailed the various goals ley, Dick Roeding, Dan Seum, and Tim protect the client investment. He stated the need to utilize multiple technologies for the CO2 sequestration project. He Shaughnessy; Representatives Johnny that funding is being provided to ensure in the sequestration of carbon and gave a stated that the project will demonstrate Bell, James R. Comer Jr., Will Coursey, there are HPC counselors throughout brief overview of several technologies for CO2 storage in deep saline reservoirs in Ron Crimm, Ted Edmonds, Tim Firkins, the state from Kentucky Housing Cor- carbon management. the Mt. Simon and Knox geological lay- Danny Ford, Jeff Greer, Mike Harmon, poration’s budget. He also presented a Secretary Peter then provided an ers in the western part of the state. The Dennis Horlander, Dennis Keene, John report detailing the number of foreclo- update regarding the Center for Renew- project will also demonstrate the integ- Tilley, Ken Upchurch, Ron Weston, and sures by county and the total number of able Energy and Environmental Steward- rity of reservoir sealing strata for long- Susan Westrom. households in each county. ship, stating that currently the cabinet is term storage, and appropriate technolo- Guests: Scott Brown, Director, De- Representative Danny Ford asked if working on appointments to the board. gies for the evaluation of CO2 storage. partment of Financial Services, Debra only guidance was given to clients and The goal is for the board to meet at least Dr. Cobb provided an overview of the Crocker, Staff Attorney, and Sara Boswell, no financial assistance. twice before the coming legislative ses- drilling program for the sequestration Executive Counsel, Administrative Office Mr. McQuady stated that only guid- sion. well, and he briefly discussed the test- of the Courts and Richard McQuady, In- ance and assistance with lenders is given Dr. Rodney Andrews, Director of ing program and timeline. He stated that terim Chief Executive Officer, Kentucky to clients. He stated that they have no the Center for Applied Energy Research the project should be completed some- Housing Corporation. funds budgeted for financial assistance. (CAER), and Dr. Jim Cobb, Director of time in 2012. Dr. Cobb stated there are LRC Staff: Rhonda Franklin, Chad He stated they have limited funds for the Kentucky Geological Survey dis- several oil drilling companies who have Collins, and Jamie Griffin. marketing and they are trying very hard cussed the carbon sequestration project. volunteered use of their depleted wells The minutes of the August 25, to make citizens aware of the Home Dr. Andrews discussed various carbon to test oil extraction enhancement uti- 2008, meeting were approved. Ownership Protection Center. He stated capture and mitigation projects be- lizing CO2. Scott Brown, Director, Department that there is a similar program available ing developed by the CAER which were Finally, Mr. Glen Mitchell, Deputy of Financial Services, Administrative throught the Louisville Metro govern- funded in HB 1. The funds provided in Secretary of the Finance and Administra- Office of the Courts (AOC), recognized ment by dialing 211. the bill were directed to be used for the tion Cabinet, Mr. Jim Abbott, Commis- Debra Crocker, Staff Attorney and Sara Representative Tommy Thompson upgrade of the center’s existing Fischer- sioner of Facilities and Support Services, Boswell, Executive Counsel, also with stated that the next Interim Joint Com- Tropsch facility, the study of biomass in and Mr. Paul Kaplin discussed the imple- the Administrative Office of the Courts. mittee on Banking and Insurance meet- the production of Fischer-Tropsch fuels, mentation of the “Kentucky Bluegrass Mr. Brown stated that the Administrative ing will be held on October 29, 2008, at the development of a biofuels laboratory Turns Green” program provided for in Office of the Courts has had oversight of 10:00 a.m., in Room 149 of the Capitol at CAER, and the expansion of programs HB 1. Mr. Kaplin discussed the require- the Master Commissioner foreclosure Annex. He stated that the committee for the study of capture and utilization ment under HB 2 that the renovation or sales since 2004. He stated that the to- will be discussing the 2009 Kentucky of carbon dioxide. He discussed how the construction of all public buildings for tal sales reflect figures derived from the Employees Health Plan. funds are being used to leverage federal which 50% or more of the total cost is number of judicial sales fees collected.

12 2008 Interim LEGISLATIVE RECORD The meeting adjourned. plained that a significant amount, ap- cy’s question Commissioner Gassett said sentation. proximately $13 million per year, of approximately 90 percent of hunting oc- Virginia Grulke, Executive Direc- their funding comes from an excise tax curs on private land while a majority of tor, Kentucky Horse Council (KHC) and on the sale of ammunition, guns, fishing fishing is on public land. Representa- Chairperson of the Kentucky Recreation- INTERIM JOINT COMMITTEE equipment, boats, etc. The mission of tive Stacy said that, while not common al Trails Authority said the Kentucky ON KDFWR through its strategic plan is to knowledge, KDFWR will help private Horse Council represents 3,000 to 4,000 ECONOMIC DEVELOPMENT conserve and enhance fish and wildlife landowners improve their wildlife habi- members, 77 percent who trail ride. KHC AND TOURISM resources and provide opportunities for tats. Commissioner Gassett said the ser- is funded through the sale of the state’s Minutes of the 4th Meeting hunting, fishing, boating, trapping, and vice is available to all private landowners horse license plate. The KHC represents of the 2008 Interim other wildlife related activities. Dr. Gas- not just those who allow public access the non-race portion of the horse indus- September 18, 2008 sett said adventure tourism would help as it improves overall wildlife habitat. try. She said that although Kentucky is The 4th meeting of the Interim Joint KDFWR achieve its mission and strategic Representative Hall commented known for horse racing, only 25 to 30 Committee on Economic Development plan objectives through funding mecha- that West Virginia has been economi- percent of horses in Kentucky are used and Tourism was held on Thursday, Sep- nisms by increasing multi-use access ar- cally successful in selling access passes for such. Nationally, recreational riding tember 18, 2008, at 1:00 PM, at Camp eas for recreational activities throughout to their trail system through small towns contributes $31 billion to the economy Robert C. Webb, Grayson, Kentucky. the state. KDFWR has been the original rather than large retail businesses or on- or 32 percent of total impact. She said Senator Alice Forgy Kerr, Chair, called adventure tourism agency for 96 years. line. Commissioner Gassett added that trail riding is increasing in part to due to the meeting to order, and the secretary He noted that fish and wildlife activities this includes the Hatfield-McCoy Trail. retiring baby boomers. Many are mov- called the roll. have a state economic impact of approxi- Next, Mr. Bill Burger, Special Assis- ing to Kentucky because of Kentucky’s Present were: mately $4.7 billion annually. tant to the Lieutenant Governor said ad- reputation in the equine industry, the Members: Senator Alice Forgy Kerr, Dr. Gassett explained that the venture tourism has gained a lot of pub- affordability of rural land, the state’s Co-Chair; Representative Eddie Ballard, greatest obstacle to outdoor recreation lic interest and their goal includes global central location, and temperate climate. Co-Chair; Senators Julie Denton, Denise activities is overcoming limited private marketing. He said the state needs to She said riders travel through Kentucky Harper Angel, and Gary Tapp; Represen- land access. One of the agency’s goals utilize its beauty and natural resources to ride in Tennessee, Indiana and Ohio- tatives Larry Belcher, Larry Clark, Leslie is to increase land holdings within 50 in a responsible way. The 23-member -states that recognized the benefits of Combs, Mike Denham, Ted Edmonds, miles of the “golden triangle” by 10 per- Kentucky Recreational Trails Authority trail riding several years ago. Jim Gooch Jr., Keith Hall, Mike Harmon, cent in six years. He noted that 94 per- (KRTA) held their first meeting and will Ms. Grulke said the four require- Melvin B. Henley, Dennis Horlander, Joni cent of Kentucky’s land and water are create separate work groups of members ments for horseback trail riding are the L. Jenkins, Dennis Keene, Thomas Kerr, privately owned. Seventy-three percent and grassroots organizations as well. The trails themselves and related signage, Adam Koenig, Tom McKee, Brad Montell, of Kentucky’s 75 wildlife management KRTA is currently inventorying the state hospitality services, promotion, and a Ruth Ann Palumbo, Don Pasley, Dot- areas were purchased with Wildlife Res- trail system and other adventure tourism ready market. She said the main chal- tie Sims, Ancel Smith, John Will Stacy, toration Funds paid for by the excise tax; activities using a multilayer GIS system as lenge is the lack of public lands. Access Robin L. Webb, Ron Weston, and Addia however, 78 percent of users of these ar- well as an interactive website that allows to private land has to be a key issue Wuchner. eas are nonhunters. Dr. Gassett explained trail users to assist via GPS. Per SB 196, and SB 196 was a big step in this direc- Guests: Dr. Jonathan Gassett, Com- that there are land usage restrictions on an MOA with Morehead State University tion. She stressed that signage is key to missioner, Kentucky Department of Fish land purchased with federal funds. Many was obtained to study the effects of ATV horseback riders. It is difficult to maneu- and Wildlife Resources; Bill Burger, Spe- wildlife management areas are leased or trespassing to be submitted to the LRC ver trucks and trailers on country roads, cial Assistant to the Lieutenant Gover- under cooperative agreement with the by mid-December. Also, the University therefore, signage is critical. On trails, nor, Office of the Lieutenant Governor; Corp of Engineers, private coal and tim- of Kentucky is conducting a safety study signage for distances, points of interest Virginia Grulke, Executive Director, Ken- ber companies. Dr. Gassett said part of for a workgroup of the KRTA understand and trail intersections is essential. For a tucky Horse Council and Chairperson, First Lady Jane Beshear and Lieutenant causes of injuries and to develop proac- robust horse trail economy there is also Kentucky Recreational Trails Authority; Mongiardo’s plan includes the possibil- tive preventive measures. The KRTA is a need for good hospitality services. Rid- Rick Allen, President, League of Ken- ity of having a user-pay system similar working on an adventure tourism mas- ers look for horse camps, trail guides, tucky Sportsmen; Debby Spencer, Direc- to KDFWR’s He added that KDFWR ter plan that will include all positive trail on sight services, catering, music and tor of Tourism and Development, WMTH strongly supports Senate Bill (SB) 196. features including the information gath- entertainment which are opportunities Corporation; and Matt Osborne, Direc- He said KDFWR has the resources and ered through GPS to identify potential for new business in the state. Bed and tor of Adventure Tourism, Office of the actively pursues land purchasing and can routes across the state. There are region- barn is a new business concept for agri- Secretary, Tourism, Arts and Heritage help promote access to recreation areas. specific adventure tourism development cultural farmers. Cabinet. Language in SB 196 allows KDFWR law issues with lakes, streams, and rivers. A Ms. Grulke said increased promo- LRC Staff: John Buckner, Commit- enforcement rights on adventure tourism trail is in progress that will enable the tion is needed by adding more horse tee Staff Administrator; Karen Arm- sites. The can also assist with technical majority of the state to be traveled by photographs in Tourism, Arts & Heritage strong-Cummings; Louis Pierce; and guidance such as habitat formation and horseback, hiking, or biking in time for Cabinet promotional items as well as ad- Dawn Johnson. trail building. He noted that the infra- the 2010 World Equestrian Games. Mr. vertising in Trail Rider and other eques- A quorum being present, the meet- structure already exists in collecting user Burger said the KRTA would like to see trian magazine. She noted that America ing was called to order. A motion and fees. They are currently working with the the Economic Development Cabinet and by Horseback is interested in featuring second by Senator Denton and Repre- Kentucky Recreational Trails Authority the Tourism, Arts and Heritage Cabinet Kentucky’s trails. She said the state sentative Belcher to approve the minutes to assist with regulation promulgation. provide incentives to individuals who needs to target regional and national of the August 21, 2008, meeting passed Responding to Representative Ed- want to increase the economic engines trail rider associations to move their or- by voice vote. Chairman Ballard thanked monds’ question, Bill Burger said the of their communities through adventure ganized national rides to Kentucky. She Representative Webb and Department of licensing fee of newly purchased ATVs tourism. noted that the American Endurance Ride Fish and Wildlife staff for coordinating collected by the county court clerks will Representative McKee expressed Conference has several national rides the meeting at Camp Webb. Represen- cease because it is not uniformly col- concern that Kentucky ranked first in around the country. She said the Ameri- tative Webb welcomed everyone to the lected or required statewide. Statutory ATV fatalities in recent years and asked can Quarter Horse has a large trail ride facility. She explained that Camp Webb language would be needed to continue whether the state had a higher number scheduled in Taylorsville this year. was her father’s, the late Dr. Robert C. collecting this fee and to keep track of of ATVs in operation. Mr. Burger said the Ms. Grulke said, according to Trail Webb, legacy. Formerly an elementary the sale of ATVs within the state. majority of deaths occurred on roadways Rider magazine, demographically riders school scheduled for destruction, Dr. Responding to Representative Ed- with people not wearing helmets. Ap- are 71 percent female, 25 percent have Webb was instrumental in preserving monds’ question Secretary Gassett said proximately 60 percent of accidents in- a net work of over $500,000, 40 percent the area and turning it into the state’s that KDFWR officers have full policing volve alcohol usage. He said training and are in their 50s, 20 percent are over 60, third junior conservation camp. powers including enforcement of traffic education is a top priority for the KRTA 77 percent live in the country, 45 percent Senator Kerr introduced Dr. Jona- laws, however, they are encouraged to in reducing the number of ATV deaths. own 20 acres or more, 43 percent have than Gassett, Commissioner of the Ken- specifically focus on Chapters 150 and Representative McKee encouraged com- living quarters with their horse trailers, tucky Department of Fish and Wildlife 235--boating, fish and game laws. mittee members to see the Department and 80 percent go somewhere with their Resources (KDFWR). Dr. Gassett ex- Responding to Representative Sta- of Agriculture’s farm and ATV safety pre- horses every month. Forty percent of all

THE KENTUCKY GENERAL ASSEMBLY 13 trail riders in the U.S. are in Kentucky Mr. Allen said Minnesota and Wisconsin ing the effects of trespassing by ATVs on ate Majority Leadership; Ruth Webb, and its surrounding states. have highly successful programs similar both private and forbidden public lands LRC House Majority Leadership; John Ms. Grulke said examples of suc- to what Kentucky envisions. He said to conclude the best ways to enforce Chowning, Carol Sullivan, Joe Walters, cessful adventure tourism initiatives in- the trails are well maintained and it is current laws and prevent trespassing in Jeff Justice, C. Garrison, and N. Wheat, clude Big South Fork of Tennessee with a well managed program. When creating the future. The agency is also creating Campbellsville University; Kevin Brown, 129 miles of hiking trails and 156 miles Kentucky’s program the League asks that a universal signage program for the trail Frank Rasche, and Larry Stinson, Ken- of horse trails that contribute $10 mil- sensitive wildlife areas be identified up- system and highways to direct tourists tucky Department of Education; Dr. Rich- lion annually to local economies, Iowa’s front and protected. Mr. Allen noted that to trailheads and other outdoor recre- ard Crofts and Dan Flanagan, Council on 26-mile trail which contributes $1.2 mil- the League has a representative on the ation activities. Mr. Osborne said they Postsecondary Education; Sharon Bur- lion annually, Florida’s 16 mile St. Marks KRTA board. are developing a marking strategy to best ton, Community Voice; Darryl McGaha, Trail, contributing $1.9 million, and Next, Debby Spencer explained that promote the current and future outdoor Lake Cumberland Area Development Pennsylvania’s Great Allegheny Passage WMTH Corporation works with com- recreation opportunities in the state to District; Mark Johnson, Campbellsville- whose impact in 1998 was $14 million. munities on economic development include a strategic communications plan Taylor County Economic Development Ms. Grulke noted that some of these through tourism. Ms. Spencer said Knott as well as a merchandising plan for brand Authority, and Ralph Tesseneer. trails are multi-use. She said national County’s program has developed quick- awareness. LRC Staff: Audrey Carr, Sandy Dea- branding of “Horse Capital of the World” ly. Their goal is to create a countywide Responding to Representative ton, Janet Oliver, Janet Stevens, Ken and “Unbridled Spirit is already in place. adventure tourism parks system. Cur- Clark’s question, Mr. Osborne said the Warlick, and Lisa Moore. Horseback riding is a green economy and rently, they have four ATV trails and four urban centers of the state are leaders in Senator Winters asked for a motion disturb the wildlife less than other types horseback riding trails. They also have a outdoor recreation activities. Louisville to approve the minutes of the August of recreation. publicly accessible elk-viewing area open is creating a trail and parks system that 11, 2008, meeting. Upon a motion by Responding to Co-Chair Kerr’s 24/7. Ms. Spencer said two local entre- circumvents the city and contains over Representative DeCesare, seconded by question Ms. Grulke said carriage acces- preneurs offer saddle-up elk tours for 100 miles of hiking and biking trails. He Senator McGaha, the minutes were ap- sible trails are increasing and they are elk viewing via horseback. Also, Knott noted that this is the goal of the state- proved by voice vote. looking for ways to increase the num- County built a skate park and will con- wide master plan. Senator Winters introduced Dr. Mi- ber. Mr. Burger added that the adventure struct a snow tubing and snowboarding Representative Ballard asked if the chael M. Carter, President, Campbellsville tourism initiative is looking toward the area next year. She noted that Indiana’s western Kentucky coal companies were University, who welcomed the members national Rails to Trails Program which snow tubing business has 60,000 visi- being responsive to state and local ef- and gave an overview of campus high- will allow for carriage use. The state is tors annually. Ms. Spencer said Knot forts. Ms. Spencer said they are just be- lights. He introduced Ms. Shajuana Dit- currently working on acquiring 36 miles County built an ATV safety training cen- ginning to work with them in several to, President, Student Government As- of rail through Magoffin, Johnson and ter, one of five in the United States. It in- counties in developing ATV trails and sociation, who described her experiences Breathitt Counties from R.J. Corman cludes basic safety as well as a skills test several horseback riding trails. on campus and explained why other Railroad Group. area with miscellaneous surfaces and There being no further business the Kentucky students should consider at- Representative Edmonds said the hills and includes beginners through ad- meeting adjourned at 2:45 PM. tending Campbellsville University. She funds exist to purchase the 36-mile vanced trails. She said the training center thanked the legislative committee mem- Dawkins Line in Breathitt, Magoffin, and is used as a trailhead for horseback riding bers for the General Assembly’s actions Johnson Counties to include in the Rails and ATVs and is a major site for elk view- INTERIM JOINT COMMITTEE to contribute state funds into student fi- to Trails program but they need to over- ing. It is specifically designed to allow all ON EDUCATION nancial aid to give more students the op- come the safety concern of nearby resi- three activities. There are 43,000 acres Minutes of the 4th Meeting portunity for postsecondary education. dents. with over 100 miles of horseback riding of the 2008 Interim Senator Winters gave special rec- Representative Harmon asked how trails on reclaimed coal land. There is a September 8, 2008 ognition to Representative Russ Mobley the state can offer limited liability to full-time employee to police trails. The fourth meeting of the Interim and asked his wife Carol Mobley and Dr. landowners under the constitution’s Ms. Spencer said she is also working Joint Committee on Education was held Carter to join Representative Mobley on prohibition of limiting the ability to seek in Clay and Breathitt counties developing on Monday, September 8, 2008, at 1:00 stage. Senator Winters read a resolution restitution. Mr. Burger said he would in- motorcycle trails using the road system, PM, at Campbellsville University. Senator in his honor and he received a standing quire and get back with the committee. and horse riding and bird watching trails Ken Winters, Co-Chair, called the meet- ovation from committee members and Representative Webb said a legal and is developing a canoeing program in ing to order, and the secretary called the guests. Representative DeCesare made analysis was done during the drafting of Warren County. roll. the motion to accept the resolution, sec- HB___ that she would be glad to share. Matt Osborne, Director of Adven- Present were: onded by Representative Webb-Edging- She noted the tax credit easement bill ture Tourism with the Tourism, Arts and Members: Senator Ken Winters, ton. The motion to accept the resolution drafted with the Department of Fish and Heritage Cabinet outlined the Cabinet’s Co-Chair; Senators Brett Guthrie, Alice was approved by voice vote. Dr. Carter Wildlife that provide incentives to land- activities in adventure tourism. They are Forgy Kerr, Vernie McGaha, R.J. Palmer also presented Representative Mobley owners for access arrangements of land working to create an inventory and to II, Elizabeth Tori, and Johnny Ray Turn- with a Distinguished Service Award on use. promote the existing trails in the state er; Representatives Larry Belcher, Leslie behalf of Campbellsville University. Representative Wuchner said the including traditional hiking, mountain Combs, Jim DeCesare, Ted Edmonds, C. Senator Winters gave special rec- horse network is a great volunteer net- biking, equine, and ATV trails as well as B. Embry Jr., Bill Farmer, Tim Firkins, Jim ognition to former Representative Frank work for clearing and maintain trails re- road bike trails and the Blueways. They Glenn, Jeff Greer, Jimmy Higdon, Reginald Rasche, Co-Chair of the Interim Joint ducing the cost to the state, communi- are being mapped using GPS and GIS Meeks, Charles Miller, Harry Moberly Jr., Committee on Education, and read a ties, and landowners. Ms. Grulke added technology with the Office of Technol- Russ Mobley, Rick G. Nelson, Tom Ri- resolution in his honor. Representative that the Horse Authority is considering ogy. The Cabinet is working to promote ner, Carl Rollins II, Charles Siler, Dottie Miller made the motion to accept the an “Adopt a Trail” program for trail main- and create new opportunities for all out- Sims, Alecia Webb-Edgington, and Ad- resolution, seconded by Representative tenance. door recreation activities including rock dia Wuchner. DeCesare. The motion to accept the res- Next, Rick Allen, President of the climbing, fishing, hiking, hunting, horse Guests: Jo Carole Ellis and Mr. Ed- olution was approved by voice vote. League of Kentucky Sportsmen explained riding, caving, and wildlife viewing. A ward Cunningham, Kentucky Higher Senator Winters introduced Dr. that the League, created in 1935, is the master plan is being developed in coordi- Education Assistance Authority; Joe Richard Crofts, Interim President, Ken- oldest sportsman association in the nation with existing inventory to create Lancaster, Office of State Budget Direc- tucky Council on Postsecondary Educa- state and was instrumental in develop- the optimal routes for a cross-Kentucky tor; Dr. Gary Cox, President, Association tion (CPE), to review Executive Order ing legislation that created the Depart- trail system. The KTRA will enter into of Independent Kentucky Colleges and 2008-836 relating to the CPE and to ment of Fish and Wildlife. He said the partnerships with local governments and Universities; Bill Huston, St. Catherine give an update on the presidential search League supports adventure tourism and private land owners to create a multi- College; Dr. Michael Carter, President, process. Dr. Crofts said the committee would like to be involved in the devel- use trail system. The master plan will Campbellsville University; Ms. Shajuana searching for the new CPE President is opment process. He said the possibility take into consideration aspects such as Ditto, President, Student Government working under very strict confidentiality of gaining more access to private fishing the aesthetic quality of a trail, as well as Association, Campbellsville University; rules in an effort not to lose good candi- waters and more hunting ground is im- the environmental and economical im- Jonathan Lowe and Greg Rush, LRC Bud- dates as the process continues. The com- portant to the sportsmen of Kentucky. pacts to the state. They are also study- get Review; Faurest Coogle; LRC Sen- mittee will begin reviewing resumes in

14 2008 Interim LEGISLATIVE RECORD the next ten days in an effort to identify the regulation in the August 2008 Ken- tending summer school. financial aid is available in the form of the most nationally qualified candidates tucky Board of Education meeting that Mr. Cunningham said on May 7, grants, scholarships, loans, and work- for this very important position. He said eliminated duplicative budget language Congress passed the Ensuring Continued study programs. He noted that 90 per- the committee hopes to have final inter- and provisions already covered in other Access to Student Loans Act, which pro- cent of all students at the university re- views and a final selection by the first statutes. The remaining changes include vided availability to funding through the ceive some type of financial aid. week in December of 2008. He also said adding clarity to some definitions in the USDE. He said the new liquidity program The entire Power Point slideshow the CPE Web site has a presidential pro- funding formula and the addition of stu- is temporary and requires significant re- about Campbellsville University is locat- file of the position to help explain the dents with limited English proficiency sources, such as bridge financing, in or- ed on a DVD in the meeting folder in the desired attributes and qualifications to being included in the SEEK formula. der to first make student loans and then Legislative Research Commission (LRC) potential candidates. The Chairman accepted the regula- recycle the funds for future loans. With library. Dr. Crofts explained the reason- tion on behalf of the committee. limited resources, this program was still Representative Riner thanked Dr. ing behind Executive Order 2008-836. Senator Winters introduced Ms. problematic for KHESLC, and it was un- Carter and his outstanding faculty for He said the CPE applauds the action of Jo Carole Ellis, Vice President, Govern- certain if Kentucky could participate. He the partnership that Campbellsville Uni- administratively moving the agency and ment Relations and Student Services, noted many lenders could not and have versity has established with Simmons directly attaching it to the Governor’s Kentucky Higher Education Assistance stopped making loans or have gone out University in Louisville. Dr. Carter said office. He said House Bill 1 (2007 SS) Authority (KHEAA), who explained 11 of business. the university is very proud of that part- identified the President of the CPE in KAR 3:100, Administrative wage gar- Mr. Cunningham said the Common- nership and opening pathways to educa- statutory language as the higher edu- nishment. Ms. Ellis said the administra- wealth of Kentucky provided the critical tion by removing barriers is something cation advisor for the Governor and the tive regulation establishes procedures bridge funding financing by purchasing the university believes in. legislature, which is a huge statutorily for KHEAA to garnish a defaulted stu- a $50 million private placement bond Representative Higdon said Camp- enacted responsibility. The CPE and the dent loan borrower’s wages for payment from KHESLC. This innovative solution bellsville University is very important Governor feel the Governor’s office plays of the borrower’s student loan debt as provides an adequate return on invest- to this region of the state and not only a significant role in higher education is- well as the procedures for a borrower to ment for Kentucky and allows KHESLC excels in education, but is instrumental sues nationally as well as within the request a hearing on a garnishment and to continue to serve Kentucky students in economic development and quality Commonwealth and both felt the move procedures for conducting that hearing. and families as well as our colleges and of life issues. He also said the Hartland would help in the recruitment of the per- She said this amendment will reflect the universities. Parkway project will be very beneficial to manent president. current poverty level and consumer ex- Mr. Cunningham said the USDE the people of the region and he is glad to Representative DeCesare said he did penditures figures published by the fed- liquidity program is temporary and ex- have worked with Dr. Chowning on the not have a problem with the executive eral government. pires in September 2009 and is a one- project. order, but noted that the executive order The Chairman accepted the regula- year fix. KHESLC will continue to seek Representative Greer complimented does not state that the CPE reports to tion on behalf of the committee. solutions to the student loan financing Ms. Ditto on her student government the General Assembly. Senator Winters introduced Mr. Ed- problem at the federal level and is asking work. He asked how many high schools Representative Rollins asked if this ward Cunningham, Executive Director Congress to either extend the temporary the university works with on the Ad- executive order changed the structure of and CEO, KHEAA, to give an update on liquidity program or provide a more per- vanced Placement (AP) program to assist the CPE prior to any changes made by student loan financing in Kentucky. Mr. manent financing solution for non-profit high school students in receiving college the last administration. Dr. Crofts said Cunningham said the Kentucky Higher student lenders. He feels the credit mar- credit. the only difference in the structure un- Education Student Loan Corporation kets will not stabilize at least until 2010 Dr. Carter said Campbellsville Uni- der the new executive order is the way it (KHESLC), also known as The Student or 2011. versity is active in the AP and dual en- references the Secretary of the Cabinet. Loan People, is Kentucky’s state-cre- Senator Winters said it was im- rollment programs and currently partici- Senator Winters said he was disap- ated, non-profit student loan provider. portant for the committee members to pate with 26 schools across the state. He pointed when Governor Fletcher moved KHESLC has funded approximately 70 be familiar with the Association of In- said both programs are designed to help the CPE under the Education Cabinet by percent of the Federal Family Education dependent Kentucky Colleges and Uni- the attendance in postsecondary educa- executive order. He feels the CPE is most Loan Program (FFELP) loans in Kentucky, versities (AIKCU) and understand the tion. He said the advantage of the dual effective when it is attached directly to which is equivalent to $400 to $500 mil- role and impact of independent institu- enrollment program over the AP program the Governor’s office and he applauds lion for both first-time and continuing tions in the higher education system. He is that the courses must be taught by a the decision. college students. asked Dr. Carter to speak to the members master’s level, Southern Association of The Chairman accepted the report Mr. Cunningham said Congress about the uniqueness of campus life at Colleges and Schools (SACS) certified on behalf of the committee. took action last fall to reduce the federal Campbellsville University. faculty member and that benefits those Senator Winters introduced Dr. Phil income earned by lenders from FFELP Dr. Carter used a Power Point pre- students enrolled in dual enrollment Rogers, Executive Director, Educational student loans in an attempt to reign-in sentation for the committee highlighting courses. He said both programs give a Professional Standards Board, who ex- the major for-profit lenders. Their ac- Campbellsville University. He said the chance for students to be successful in plained 16 KAR 5:020, Standards for tions reduced income for all lenders, in- university is operating in its 102nd year high school and that success carries over admission to educator preparation. Dr. cluding not-for-profits like KHESLC. He and he has served as President for the into their college career. Rogers said the administrative regulation said this reduction in revenue, combined past ten years. He noted that “US News Dr. Winters discussed the Fruit of removes tests that are no longer offered with other recent actions taken by the & World Report” ranked Campbellsville the Loom layoffs in the Campbellsville by the testing service and updates test- United States Department of Education University as being the 22nd best bac- area years ago. He said 3,800 jobs were ing terminology and aligns regulatory (USDE), forced KHESLC to discontinue calaureate college in the South. lost to the area when the company was language with current policy. There were the generous borrower benefits offered Dr. Carter said Campbellsville Uni- moved offshore. He commended Camp- no questions for Dr. Rogers from com- to Kentucky teachers, nurses, and public versity describes itself as a private school bellsville University for helping about mittee members. service attorneys as well as other ben- with a public purpose. He said a recent 300 of the displaced workers by giving The Chairman accepted the admin- efits to students. economic impact study conducted by an them a college education at no cost. He istrative regulation on behalf of the com- Mr. Cunningham said beginning in independent firm showed that the col- said the university was instrumental in mittee. late 2007, the credit markets began to lege generated $76 million in economic providing the workers with retraining as Senator Winters asked Mr. Kevin dislocate. The disruption in credit mar- development in Taylor County alone. He well as spiritual and emotional healing. Brown, General Counsel, and Mr. Larry kets led to auction rate security failures said the university offers 15 master’s Senator McGaha said he is con- Stinson, Associate Commissioner, Office in early 2008, and no student lender degree programs, 43 baccalaureate pro- cerned with drop-out rates in the K-12 of District Support Services, Kentucky could sell bonds to raise capital to make grams, and 15 associate certificate de- system as well as retention rates in post- Department of Education (KDE), to ex- new student loans. He noted without gree programs. The student-to-faculty secondary education institutions. He plain 702 KAR 3:270, Support Educa- this traditional funding source, lenders ratio is 13 to 1 and nearly 70 percent of asked Dr. Carter if Campbellsville Univer- tional Excellence in Kentucky (SEEK) scrambled to find additional sources. the professors hold a Ph.D. or higher in sity had any statistics for retention rates funding formula. He said the amendment KHESLC was able to use available re- their respective fields of study. at its school or for private institutions provides clarification on definitions of the sources to make loans until May 1, 2008. Dr. Carter said the tuition at Camp- as a whole. components used in the SEEK funding At that time new loans were suspended bellsville University is in the median na- Dr. Carter said Campbellsville Uni- formula. He said a change was made to until July, affecting mostly students at- tional average at $17,500 a year. He said versity tends to have higher retention

THE KENTUCKY GENERAL ASSEMBLY 15 and graduation rates. He said there is the Southern private college average. committee, the meeting adjourned at environmental, and that the University’s probably a multitude of factors that Dr. Cox noted that the independent 3:00 p.m. primary focus is on renewable energy contribute to the higher rates, but a institutions are a tremendous return on sources. He said that the University had low teacher to student ratio helps pri- a small state investment. Only about developed several courses dealing with vate schools retain their students by four percent of Kentucky’s total post- SPECIAL SUBCOMMITTEE ON energy management and conservation, providing more one-on-one instruction. secondary spending goes to students ENERGY and that they were working toward of- He also said there is an emphasis at the attending Kentucky’s independent col- Minutes of the 4th Meeting fering a degree in Sustainability. university to teach math, science, and leges and universities, all in the form of of the 2008 Interim He said that the Speed School is writing. He feels there is a crisis today student aid. In return, Kentucky’s inde- September 19, 2008 also working in collaboration with the in trying to teach students writing skills. pendent institutions produce 22 percent The 4th meeting of the Special Sub- University of Kentucky for the develop- He said Campbellsville University has of Kentucky’s bachelor degrees; produces committee on Energy was held on Fri- ment of alternative ethanol. implemented the Writing Engagement more than 5000 total degrees annually; day, September 19, 2008, at 10:45 AM, Dr. Ramsey stated that the Univer- Learning (WEL) program in an effort to produces high percentages of bachelor’s at the Henry Clay Building in Louisville, sity of Louisville has a program called the focus on writing because research has degrees crucial to Kentucky’s futures like Kentucky. Senator Brandon Smith, Chair, Kentucky Pollution Prevention Center shown that students who are good writ- math and science, education, and nurs- called the meeting to order, and the sec- that works with school districts to reach ers have better critical thinking skills, ing; and provides bachelor’s degrees in retary called the roll. a goal of saving five percent on energy are better problem-solvers, and possess many underserved parts of the state. He Present were: costs. The Center also works with pri- better verbal skills. He also noted that also said that substantial increases in Members: Senator Brandon Smith, vate businesses, non-profit businesses Campbellsville tends to focus on retain- state student aid over the last ten years Co-Chair; Senators Walter Blevins Jr., and public entities doing energy audits. ing sophomores as research has shown have allowed independent institutions Tom Buford, Denise Harper Angel, Ernie Through this program and others, the that more sophomores tend to drop-out to serve more Kentucky students, but Harris, and Johnny Ray Turner; Repre- state has been able to save over $2 mil- of college than freshmen. He also said re- there are still Kentucky students with sentatives Rocky Adkins, Eddie Bal- lion. medial education is a huge problem and unmet need. lard, Dwight D. Butler, Tim Couch, Will Dr. Ramsey said that the University students need to come to college better Dr. Cox said Kentucky students re- Coursey, Jim Gooch Jr., Keith Hall, Fred of Louisville has a contract with Siemens prepared to learn. ceive $53 million in student aid. He said Nesler, Sannie Overly, Tanya Pullin, Tom Corporation to do an audit of all build- Representative DeCesare said that that 97 percent of full-time, first-time Riner, and Brent Yonts. ings on campus. As a part of that con- schools are not teaching spelling or the independent institution students receive Guests: Rep. Joni Jenkins; Rep. tract, Siemens has guaranteed to save basics of grammar and this is trickling financial aid, and the average financial John W. Stacy; James Ramsey, President, the University $33 million. down to freshman enrolling into college. aid awards by source are relative to av- University of Louisville; John A. Roush, Sen. Smith asked if certain criteria He asked Dr. Carter if Campbellsville erage tuition and fees. He noted that President, Centre College; Lee Todd, were used in selecting recommendations University addresses the issue. Kentucky contributes no funding for the President, University of Kentucky, and from the audit. Dr. Carter said that writing across 7,000 out-of-state students who attend Larry D. Shinn, President, Berea College. Dr. Ramsey stated that they do use the curriculum remains a problem in the independent institutions and those LRC Staff: D. Todd Littlefield, Com- criteria. Kentucky schools. He feels it is not in students contribute to the local econo- mittee Staff Administrator, Taylor Moore, Lee Todd, President of the Univer- the best interest of the Commonwealth mies throughout the academic year and and Susan Spoonamore, Committee As- sity of Kentucky, stated that they had re- to graduate students who cannot com- many stay in Kentucky after they gradu- sistant. ceived a $1.5 million contract from E.ON municate in a stable manner. He said ate. Minutes of the August 15, 2008 to look at carbon sequestration, along Campbellsville University’s writing Dr. Cox said the independent in- meeting were approved, without objec- with letters of intent from E.ON, Duke, program is designed to very intensively stitutions produce more than twice as tion, by voice vote upon motion made by AEP, East Kentucky Power and Big Rivers. make sure that general education cours- many graduates in health sciences than Representative Jim Gooch and seconded He said that UK was also working with es effectively teach writing. in history. He noted over 300 nurses by Representative Rocky Adkins. Alltech, who just received a $30 million Senator Winters introduced Dr. were produced in 2006-2007. James Ramsey, President, Universi- Department of Energy grant. From that Gary Cox, President, AIKCU, to explain Dr. Cox summarized by explain- ty of Louisville explained the background grant, he said that UK should receive ap- the economic and community impact of ing the return on investment that in- on the Energizing Kentucky Conference. proximately $2 million to conduct basic the independent institutions in the Com- dependent institutions provide for the He said that he and three other college research looking at other components of monwealth of Kentucky. Dr. Cox gave a Commonwealth of Kentucky. Highlights Presidents recognized the importance of corn such as the cob and the stalk in try- Power Point presentation to the com- include: 100,000 alumni in Kentucky energy in Kentucky and joined forces to ing to convert that to energy. mittee highlighting the AIKCU achieve- generate $4 billion in annual earnings form a partnership between public and He said that UK is working with sev- ments. He said there are 20 nonprofit, and $416 million in state tax revenues; private institutions to stimulate the ef- eral utility companies across the state to independent colleges and universities campuses provide more than $1.1 bil- forts of government, business and edu- install field demonstrations using algae and all are accredited by the SACS. They lion in educational facilities; combined cation leaders in creating a far-reaching systems to control carbon dioxide emis- meet the same rigorous quality stan- total annual economic impact of more and collaborative statewide energy poli- sions. Algae can absorb twice its weight dards as Kentucky’s public colleges and than $1.4 billion and creating more than cy, thus Energizing Kentucky. in carbon dioxide which can be used to universities. 12,000 jobs in Kentucky; and being com- He stated that Energizing Kentucky make biofuels and feed for animals. Dr. Cox said there are 29,000 stu- mitted partners in Kentucky’s effort to encompasses: Dr. Todd stated that the University dents enrolled in AIKCU and 75 percent double the numbers of bachelor degree Higher education playing an im- of Kentucky had received approximately of the students are Kentucky residents. holders by 2020. portant role in framing issues, seeking $50 million in grant money to study the The AIKCU offers diverse campuses, Senator Winters said the next meet- solution, providing basic and applied re- development of capacitors to store wind missions, and student bodies. The cam- ing of the Interim Joint Committee on search, and educating the next genera- and solar energy; for renewable energy puses are located across the state and Education will be on October 13, 2008, tion; areas such as engineering and agricul- offer a number of extended sites, part- at the Gatton Academy of Mathematics A partnership across the Common- tural, and hydrogen fuels research. nerships with businesses and the Ken- and Science at Western Kentucky Uni- wealth to include business and public In other areas, he said that twen- tucky Community and Technical College versity in Bowling Green, Kentucky. policy leaders, as well as those involved ty-one dormitories had been outfitted System (KCTCS), international sites and Representative Combs said she has in education; with meters so each dormitory could see study abroad, and online courses. The spent over 20 years of her life creating Promoting a public policy discus- their energy consumption creating com- independent institutions are regional and defending the statistics that Dr. Cox sion focused on energy for the Common- petition between the dormitories. As a and local stewards, and all are commit- referred to in the meeting. She said the wealth of, and note, he said that during move in day UK ted to the goal of doubling the number of independent colleges have accomplished Conducting conferences to address recycles 25,000 pounds of cardboard. students attending college by 2020. so much and in so many diverse areas in related challenges in education, business Dr. Todd praised a group of engi- Dr. Cox said the independent in- Kentucky. She said a good medical facil- and economic development, and the en- neering students who participated in and stitutions are affordable and accessible ity can be created without it having to vironment. placed 11th in the 2008 North American for students. The average tuition is one- cost multi-millions and produce excel- Dr. Ramsey stated that the Universi- Solar Car Challenge. He said that UK third lower than the national private col- lent doctors. ty of Louisville is committed to account- is also involved in the Solar Decathlon lege average, and one-fourth lower than With no further business before the ability including financial, academic and world competition which demonstrates

16 2008 Interim LEGISLATIVE RECORD running every day appliances on pure the students at Centre major in science. Family Services, Department for Commu- fice has a lot of power because she works solar energy. They have 250 graduates each year and nity Based Services; Marylee Underwood directly for the Secretary and Ms. Brock He also stated that UK had just 100 of them are going into scientific for the Kentucky Association of Sexual can speak on her behalf and take issues received a $1.4 million federal fund an- fields. Assault Examiners; Jill Seyfred for Pre- directly to Secretary Miller. nouncement to build a mini-refinery us- Mr. Ramsey stated U of L does not vent Child Abuse Kentucky; Joe Farless Representative Jenkins asked how ing Fischer Tropsch technology and look- have a major, but they are working to- for Family Preservation Pennryle Allied the Cabinet is doing in terms of field ing at sequestration issues. ward that end. Community Services; Janice Johnston for positions for Child Protective Services. Larry D. Shinn, President, Berea Dr. Todd said that students can get the Department for Mental Health, Men- Commissioner Wilson said the Cabinet College, stated that even though Berea certifications, but UK has no degree pro- tal Retardations Services; Jim Kimbrough is moving forward and filling the posi- College is a small college of 1,500 stu- gram currently. for AARP KY; Mike Grimes for the Cabi- tions more rapidly. The number in the dents, it has been able to become an in- Rep. Pullin stated that Kentucky net for Health and Family Services, De- field changes often. Currently there are cubator for innovation. He said that in has been at the forefront of energy solu- partment for Community Based Services; 1,500 front-line service workers and 1994, Berea College had no environmen- tions for the last three or four years. She and David Cozant for the Lexington-Fay- they are looking at staffing patterns and tal studies program and no renovation pointed out that the Western Governors ette Urban League. caseloads in each county. standards that included environmental Association invited Kentucky legislators LRC Staff: Ben Payne, Jonathan Representative Jenkins asked if considerations. to their meeting to speak on energy is- Scott, and Cindy Smith. there had been many retirements in the In 2008, Berea College turned on a sues. Kentucky is leading the charge. The minutes of the August 20, Department for Community Based Ser- new Danish style low temperature heat- Rep. Hall stated that he was very 2008 meeting were approved without vices. Commissioner Wilson said there ing and cooling plant. He also said that impressed with what Berea College had objection. had been a significant number, with the new plant did not cost a penny more done, along with the other universities. The first item on the agenda was an many being from management and su- than what replacement costs would have It is important to co-exist efficiently, update on the Child Protective Services pervisory ranks. been for the old plant. The old gas and economically and environmentally but Complaint Report (07 HJR 137), by San- Representative Jenkins asked if the coal-fired plant had 4-1/2 miles of steam at the same time utilize utility energy dra Brock, Executive Director, Office of Department for Community Based Ser- lines which were replaced with direct sources. the Ombudsman, Cabinet for Health and vices has lost a lot of expertise with the burial pipe with 4 inches of insulation Rep. Yonts stated that all the re- Family Services; and Patricia R. Wilson, retirements. Commissioner Wilson said around it. That change alone saved the search into alternative energy is a matter Commissioner, Department for Commu- expertise has been lost, but the Cabinet college 30% of transmission loss. In a of national security. We must become nity Based Services (DCBS), Cabinet for has been expecting and preparing for heating budget of $2.4 million, the col- independent and we must move toward Health and Family Services. Ms. Brock that. Also, the retirements are provid- lege saved $1.2 million. degrees in engineering, science, etc. in presented the findings of the report to ing others the ability to move up in the Berea has twenty-one renovated order to be competitive and sustainable the subcommittee. She said that the ranks. buildings all designed to LEED silver as a country. Ombudsman office is required to in- Representative Burch asked how specifications. Rep. Atkins stated that the col- vestigate any county with 10 or more many social workers have been lost this Rep. Smith asked Mr. Shinn to ex- laboration between the universities and justified complaints within a six month year. Commissioner Wilson said she did plain LEED. colleges is important to energy indepen- period. The counties with 10 or more not have that information with her, but Mr. Shinn stated that LEED stands dence. He said that as research is ex- justified complaints from the last report she could get that information to the for Leadership in Energy and Environmen- panded and developed, Kentucky needs were Jefferson and Madison counties. committee. tal Design and is a sustainable building to be the place for new energy technolo- Data was also presented for the time pe- Representative Burch asked what certification program of the U.S. Green gies. Kentucky will have to create an riod January, 2008 through June, 2008. services are offered to families. Com- Building Council. economy that will produce jobs for our Ms. Brock stressed that the Office of missioner Wilson said there is an array Mr. Shinn stated that every building engineers, chemists, and a highly trained the Ombudsman reports directly to the of services that are offered. When an renovated strives to achieve 45% reduc- work force. Secretary of the Cabinet and that this investigation is done, there is a check for tion in energy use and 50% in water use. Meeting adjourned at approximately promotes independent investigations. mental health and substance abuse is- Initially they projected a 10 to 12 year 12:00 p.m. Ms. Brock also gave an overview of the sues and a check for basic food, clothing payback, but now they project a payback structure of the Ombudsman’s Office and shelter needs. The family is looked period between 6 and 7 years. INTERIM JOINT COMMITTEE detailing the divisions of Performance at as a whole to see what is needed so He said that Berea College consis- ON HEALTH AND WELFARE Enhancement, Institutional Review, and better parenting can be taught to the tently tries to find ways to reduce en- Subcommittee on Families and Chil- Complaint Review. family. ergy costs and to reduce their energy and dren Patricia Wilson, the Commissioner The second item on the agenda ecological footprint. Conservation and Minutes of the 2nd Meeting of DCBS discussed the ways the cabinet was an update on the Child Fatality Re- energy efficiency have become the key of the 2008 Interim responds to the Child Protective Services view Report by Dr. Ruth Ann Shepherd, factors in Berea’s energy policy. September 5, 2008 Complaint Report. Commissioner Wil- Division Director, Division of Maternal John A. Roush, President, Centre The 2nd meeting of the Subcom- son described the process that DCBS fol- and Child Health, Department for Pub- College, said that Centre has 1,200 stu- mittee on Families and Children of the lows after the report is received from the lic Health, Cabinet for Health and Fam- dents. He said that outstanding leader- Interim Joint Committee on Health and Ombudsman’s Office. Commissioner ily Services. Dr. Shepherd discussed the ship from students and faculty has pro- Welfare was held on Friday, September 5, Wilson also discussed a main issue that origins, purpose, and function of the vided direction in issues of sustainability. 2008, at 10:00 a.m., in Salon D of Mar- has arisen from the reports, the monthly Review System. Dr. Shepherd also dis- He said that within the last 5 years, riott’s Griffin Gate Resort in Lexington, home visits by DCBS to families. She cussed the local and state Child Fatality Centre has put approximately $80 mil- Kentucky . Senator Katie Stine, Chair, stressed that DCBS is working to ensure Review (CFR) Teams and how they oper- lion into new construction, all of which called the meeting to order, and the sec- that regular contact is maintained with ate to help coroners’ investigations for is either LEED certified or LEED qualified. retary called the roll. the families and the cabinet; and not just persons younger than 18 years-of-age. He said eight years ago, Centre put an Present were: with the child and the cabinet. It was reported that 67 Kentucky coun- energy management system in place, and Members: Senator Katie Stine, Co- Representative Burch asked how ties have CFR Teams, 45 counties have it paid for itself in 4 years. Chair; Representative Tom Burch, Co- much independence does the Ombuds- no CFR Teams, and eight counties are de- Mr. Roush stated that the four col- Chair; Senators Charlie Borders, Perry B. man’s Office have. Ms. Brock said that veloping CFR Teams. Dr. Shepard high- lege Presidents made a decision that it Clark, Alice Forgy Kerr, Joey Pendleton, the Ombudsman’s Office reports directly lighted and discussed the fact that there was time to lock arms and provide lead- and Johnny Ray Turner; Representatives to the Secretary of the Cabinet and that is a two-year lag time between the data ership in the energy policy area. James R. Comer Jr., and Joni L. Jenkins. makes its job easier. The Ombudsman’s and when it is reported. Some of the Sen. Smith asked if any of the col- Guests: Kathryn Vogelsarg for the Office has been given the ability to make leading causes for the deaths of children leges could see the development of new 14th Circuit Family Court; Rice Leach for recommendations and then even more in Kentucky were reported to be unin- degrees in conservation engineering. the Lexington Health Department; Susan can be done from that point. tentional injuries, congenital anomalies, Mr. Shinn stated that Berea Col- Pollach for Kentucky Injury Prevention; Representative Burch asked if the SIDS, diseases, and suicide. Dr. Shepard lege has a sustainability minor presently Laura Ebert for Community Partners Pro- Ombudsman Office has the power to reported that specifically, transportation which they hope to turn into a major. tecting Children, Fayette County; Phyllis override, or just the power to make rec- deaths are the leading cause of injury Mr. Rousch said that one-third of Millspaugh for the Cabinet for Health and ommendations. Ms. Brock said the of- deaths to children in Kentucky, with half

THE KENTUCKY GENERAL ASSEMBLY 17 of these deaths, the children were not in ry B. Clark, Denise Harper Angel, Alice seconded by Senator Harper Angel, and cussed the origins, purpose, and func- child safety restraints. The second lead- Forgy Kerr, Joey Pendleton, Dick Roeding, approved by voice vote. tion of the Child Fatality Review System. ing cause of injury deaths of children in and Johnny Ray Turner; Representatives The following administrative regula- The subcommittee received an update of Kentucky is caused by child abuse. It James R. Comer Jr., Joni L. Jenkins, Mary tions referred to the committee for con- the First Steps program. Dr. Ruth Ann was reported that Kentucky is above Lou Marzian, Reginald Meeks, Darryl T. sideration: 201 KAR 20:070 & E – estab- Shepherd also presented an update of the national average in childhood injury Owens, Ruth Ann Palumbo, Kathy W. lishes the requirements for the licensure the First Steps program. deaths. Dr. Shepard said that the cabinet Stein, and Addia Wuchner. of nurses by examination prescribed by Representative Marzian, Co-Chair, strives to implement the findings from Guests: Mike Robinson, Jill Sey- the Kentucky Board of Nursing; 902 KAR Health Issues Subcommittee, reported report data into other programs such as fried, Rashmi Adi-Brown, Prevent Child 55:110 – establishes criteria for report- that the subcommittee met that morn- HANDS, Healthy Start, Safe Routes to Abuse Kentucky; Shane Salter, CEO, ing prescription data, providing reports ing was given an update on the activities Schools, and others. CASA DC; Janie Miller, Secretary, Steve to authorized persons, and a waiver for of the Department for Public Health by Representative Burch asked if the Nunn, Deputy Secretary, Betsy Dun- a dispenser who does not have an au- Dr. Steve Davis, Deputy Commissioner. Graduated Driver’s License has reduced nigan, Acting Deputy Commissioner of tomated recordkeeping system; 908 Dr. Davis also discussed the results of teen deaths. Dr. Shepherd said it is too the Department for Mental Health, De- KAR 3:050 – establishes the patient the 2007 Kentucky Behavioral Risk Fac- early to tell, but she expects to see those velopmental Disabilities, and Addiction cost per day for board, maintenance and tor Surveillance System Survey which is a types of results in the 2007-2008 data Services, and DaVida Gyr, Director, Divi- treatment at facilities operated by the phone call survey conducted in conjunc- when it is released. sion of Facilities Management, Office of cabinet; 910 KAR 1:160 – establishes tion with the Center for Disease Control Representative Burch asked if the Administrative and Technology Services, the adult day and Alzheimer’s respite and Prevention. Betsy Dunnigan, Acting importance of booster seats is being Cabinet for Health and Family Services; program; 921 KAR 3:030 – establishes Commissioner, Department for Mental stressed. Dr. Shepherd said it is being Jim Abbott, Commissioner of Facilities, the application and the voter registra- Health, Developmental Disabilities, and stressed across Kentucky and that all Finance and Administration Cabinet; Su- tion processes used by the cabinet in Addiction Services, gave a presentation health departments are stressing that as san G. Zepeda, Ph.D., Executive Director, the administration of the Food Stamp on the new public awareness campaign well. Foundation for a Healthy Kentucky; Eric Program; 922 KAR 1:310 – establishes on suicide prevention called “Let’s Talk”. The last item on the agenda was an Rademacher, Ph.D., Interim Co-Director, basic standards for child-placing agen- Shane Salter, CEO, CASA DC, testi- update on the First Steps Program by Dr. Institute for Policy Research, University cies. After Stephanie Brammer-Barnes, fied about his and his brother’s experi- Ruth Ann Shepherd, Division Director, of Cincinnati; Mary Goodman and Chris- Cabinet for Health and Family Services, ences through the foster care system. He Division of Maternal and Child Health, ti Morgan, CPPC; Bill Cooper and Shir- explained the agency amendment, a mo- testified that he and his brother were in Department for Public Health, Cabinet ley Eldridge, Department for Aging and tion to adopt the amendment to 902 several foster homes, and eventually had for Health and Family Services. Dr. Shep- Independent Living, Cabinet for Health KAR 55:110 was made by Senator Roed- up to be split up and placed in separate herd said the program serves children and Family Services; Charlene Greer, ing, seconded by Representative Owens, home. This caused him and his brother from birth to three years-of-age. Any Owensboro Medical Health System; and adopted by voice vote. A motion to to become rebellious, even running away child with developmental disabilities can June Bell, St. Joseph’s Peace Mission; approve 902 KAR 55:110 as amended at times. His brother felt that he had be referred into the program by anyone; Michelle Sanborn, Children’s Alliance; was made by Senator Roeding, seconded abandoned him and that he was alone in a family member, a child care provider, or Kirk Patton Woosley, Kelly Skerchock, by Representative Owens, and adopted the world. Mr. Salter said that he finally anyone else who has contact with the and Stephanie Brammer-Barnes, Eliza- by voice vote. After Elizabeth Caywood, realized he wanted better for himself and child. First Steps operates by adhering beth Caywood, Cabinet for Health and Cabinet for Health and Family Services, started to turn his life around, but his to three guiding principles; Children will Family Services; Jennifer Larson and Barb explained the agency amendment, a mo- brother did not. Mr. Salter eventually get the services they need, Families will Bright, Boyd County Health Department; tion to adopt the amendment to 922 founded CASA for Children of DC where get the support services they need, and Kathy Recktenwald, Pediatric Forensic KAR 1:310 was made by Senator Roed- he spearheads a grass-roots movement First Steps will stay within budget. Dr. Medicine, University of Louisville; Mela- ing, seconded by Representative Owens, comprised of nearly 150 diverse commu- Shepard described to the members the nie Tyner, Dr. Susan Pollack and Jessica and adopted by voice vote. A motion to nity volunteers advocating for children process of finding children who need the Fletcher, University of Kentucky; Marelee approve 922 KAR 1:130 as amended was that have been abused or neglected. The program and the referral process for ser- Underwood, Kentucky Association of made by Senator Roeding, seconded by volunteers enhance the decision making vices. Dr. Shepard also detailed improve- Sexual Assault Programs; Joanie Moore, Representative Owens, and adopted by ability of judges regarding siblings, youth ments that have been occurring within Denise Weider, Debbie Dile, Katie Jes- voice vote. A motion to approve 201 placed in the child welfare and juvenile the program. Three improvements were see, Joann Lianekhammy, Audrey Brock, KAR 20:070 & E, 908 KAR 3:050, 910 justice systems, families engaged in resi- highlighted; Improvements for Children Chris Cordell, and LeeAnn Williams, De- KAR 1:160, and 921 KAR 3:030 was dential drug treatment, youth preparing and Families, Improvements for Provid- partment for Community Based Services, made by Senator Roeding, seconded by for adulthood, and others confronting ers, and Improvements for Efficiency. Cabinet for Health and Family Services; Representative Owens, and approved by challenges with sexual identity. Representative Burch wanted to im- Lilly Jo Cockrell, Parent Consultant, voice vote. Senator Denton asked about his press on people that First Steps is a pay- Green River Area Development Dis- The Community Mental Health Ser- brother. Mr. Salter stated that because or of last resort and the families choose trict; Anne Joseph, Covering Kentucky vices Block Grant, Title V Maternal and he did not feel like he had a stable home whether or not their insurance is billed. Kids and Families; Pam Jenkins, Bap- Child Health Block Grant, Substance life, he is very angry. It has caused him The meeting was adjourned at 11:22 tist Healthcare; Mike Weinrauch, Becky Abuse Prevention and Treatment Block to not be able to establish a home life a.m. Cecil, Gincy Fowler, Diane Glenn, and Grant, and the Temporary Assistance for of his own. Gayle F. Bourne, Commission for Chil- Needy Families (TANF) Block Grant were Senator Clark asked if there is any dren with Special Health Care Needs; approved. data that tracks children through the INTERIM JOINT COMMITTEE Eric T. Clark, Kentucky Association for Representative Burch, Co-Chair, foster care system. Mr. Salter said there ON HEALTH AND WELFARE Health Care Facilities; Vickie Arrowood; Families and Children Subcommittee, has been a study conducted that shows Minutes of the 3rd Meeting Peggy Williams, Majority Floor Leader’s reported that the subcommittee met an overwhelming number of children of the 2008 Interim Office; Marsha Hockensmith, Protection that morning and heard a presentation lack continuity, and approximately 70 September 5, 2008 and Advocacy; Nathan Goldman, Board by Sandra Brock, the Executive Director percent of the children leave the system The 3rd meeting of the Interim Joint of Nursing; Zina Harris and Eder Cren- of the CHFS Office of the Ombudsman, with post traumatic stress syndrome. Committee on Health and Welfare was shaw, and Deborah L. Arthur Stone, concerning the findings of the Child Pro- Senator Clark asked about the percent- held on Friday, September 5, 2008, at Jefferson Community Network for Child tective Services Complaint Report that age of children who end up in jails. Mr. 1:00 PM, at the Marriott’s Griffin Gate Safety; Quinetella Weathers; and Sheilia was mandated in HJR 137 from the 2007 Salter said that 70 percent of the home- Resort, 1800 Newtown Pike, Lexington, Gowdy. Regular Session of the General. Patricia less population has been in foster care, Kentucky. Senator Julie Denton, Co- LRC Staff: DeeAnn Mansfield, CSA; Wilson, Commissioner of Department and 60 percent in the penal system have Chair, called the meeting to order 1:05 Mike Bossick, Miriam Fordham, Ben for Community Based Services, discussed been touched by foster care. Children PM, and the secretary called the roll. Payne, Gina Rigsby, Jonathan Scott, and the cabinet’s response to the Child Pro- who do not have a support system end Present were: Cindy Smith. tective Services Complaint Report. up in trouble. Unfortunately, most com- Members: Senator Julie Denton, A motion to approve the minutes of Dr. Ruth Ann Shepherd, Division Di- munities do not know how to handle the Co-Chair; Representative Tom Burch, the June 18, 2008 and August 20, 2008 rector for Maternal and Child Health for problems and help turn things around. Co-Chair; Senators Charlie Borders, Per- meetings was made by Senator Roeding, the Department for Public Health, dis- Senator Clark stated that it would be

18 2008 Interim LEGISLATIVE RECORD better to put assets on the front end needs. Mr. Salter stated that states to the facility would be required to keep tucky; Eric Rademacher, Ph.D., Interim instead of the penal system. Mr. Salter need to be very careful making cuts in the current facility functioning efficiently, Co-Director, Institute for Policy Re- said that the child welfare system is ter- children’s programs. He also stated that while ensuring applicable building codes search, University of Cincinnati, gave an ritorial or ego-driven. The needs of career the government does not have the same are met. The cabinet has spent approxi- overview of the 2008 Kentucky Health professionals are put ahead of children. accountability for outcomes as parents. mately $1.1 million since the structural Issues Poll. Dr. Zepeda stated that the Social workers and/or nurses cannot do High standards need to be met whenever discovery to create a temporary habitable survey was conducted between January it alone, everyone has to be involved. it is necessary to separate children. and safe place for residents. Permanent 16, 2008 to February 11, 2008 by the Representative Wuchner asked if Representative Stein said that no repairs to the existing structure would University of Cincinnati Institute for Pol- resources for CASA differ from state to new taxes pledges are hurting Kentucky cost $2,250,000, electric upgrades, $1.3 icy Research and targeted 1,632 adults state. Mr. Salter said that the national and asked if he has seen this in other million, and $8,820,000 for HVAC and over 18 years of age within five regions CASA association would be a good re- states. Mr. Salter said that he has seen lighting upgrades. The facility has ad- of Kentucky. She gave the following sta- source to obtain this information. it in other states. He said that most ditional code deficiencies that eventu- tistics from the survey: 1) 20 percent of Representative Meeks asked looking citizens do not make the connection of ally need to be addressed that would adults 18-64 years are uninsured; 2) 28 at Kentucky, what is helping or hurting. taxes with outcomes for children, and cost several million dollars. The cost to percent have been without insurance at Mr. Salter stated that even having a De- do not realize that raising taxes would replace the existing structure would be sometime in the past year; 3) 60 percent partment for Community Based Services result in a better quality of life for the $20,000,000. While the cabinet gave the are insured through an employer ; 4) 20 and Commission on Children with Spe- children. new construction project prioritization, percent have public insurance; 5) 97- cial Health Care Needs is incredible. Na- Senator Roeding stated that the unfortunately, the project was not ap- 98 percent believe it is important that tionally, states need to ensure stability adoption laws in America need to be re- proved in the 2008-2010 biennial bud- Medicaid covers children in low-income of placement. Assessments should be vamped to make it easier for people who get. The cabinet has been advised that families, disabled adults who cannot conducted to make sure children receive want to adopt. Mr. Salter stated that bu- the existing structure should be routine- work, elderly who cannot afford nursing the correct placements. Families need to reaucracy needs to be removed from the ly monitored by a structural engineer to homes, and low-income working parents be helped with problems before it gets system to make changes. verify the continued structural integrity who cannot get employer-sponsored in- so bad that a child has to be placed in Senator Borders stated that Ken- until a new structure can be built and surance; 5) 50 percent want an increase foster care. There needs to be sibling tucky has limited revenue, but funds patients transferred. in cigarette taxes, 16 percent cut other group homes to keep siblings together need to be prioritized better. Representative Comer stated that programs, 11% said increase the state whenever possible. The most important An update on the Glasgow Nurs- the facility provides excellent care, and sales tax, 10% increase state income thing is that we treat foster children like ing Home was given by Betsy Dunnigan, if moved from Glasgow, will have a det- tax in order to cover everyone eligible we would treat our own children. Repre- Acting Deputy Commissioner, Depart- rimental impact on the community. He for Medicaid; 6) 80 percent agree that sentative Meeks stated that efforts have ment for Mental Health, Developmen- asked who determined the estimated quality, affordable care is a fundamental been addressed in past administrations, tal Disabilities, and Addiction Services, costs of the upgrades to the structure. human right; 7) 93 percent said want but have not borne fruit yet. He asked for DaVida Gyr, Director, Division of Facili- Mr. Abbott stated consultants were hired the legislature should work on reducing a status report of these efforts. ties Management, Office of Administra- to determine the costs. In 25 years, more the number of Kentucky children with- Representative Burch asked Mr. tive and Technology Services, Cabinet funds would be needed for upgrades on out health insurance. She said the 2008 Salter what helped him overcome the for Health and Family Services, and Jim the facility, but a new facility would not Kentucky Health Issues Poll results can odds. Mr. Salter stated that he encoun- Abbott, Commissioner of Facilities, Fi- require more funds for 50 years. Repre- be found at www.healthyky.org. tered the right people at the right time. nance and Administration Cabinet. Ms. sentative Comer asked if there is a de- There being no further business, the He confronted the reality of what hap- Dunnigan stated that the 2008-2010 mand for more beds, and Ms. Dunnigan meeting was adjourned at 2:59 p.m. pens in foster care, and then realized he biennial budget included language that stated there is a waiting list. wanted better for himself. the cabinet shall develop and submit a Representative Palumbo asked the INTERIM JOINT COMMITTEE Senator Denton asked what needs plan by December 1, 2008, to the Legis- current number Huntington’s patients ON HEALTH AND WELFARE to be done to assure stability in place- lative Research Commission, for referral and how many could be at the facility Minutes of the 4th Meeting ments. Mr. Salter stated that we need to the appropriate committee, to replace at any given time. Ms. Dunnigan stated of the 2008 Interim to match children with the strengths Glasgow State Nursing Facility. If the that currently there are three patients, October 15, 2008 of families, ensure young people’s out- plan called for the facility to be located but there is no set limit because priority The 4th meeting of the Interim Joint comes by screening providers, meet the elsewhere, before any action to relocate is given to these patients. Representa- Committee on Health and Welfare was mental needs of children, and make sure the associated beds and patients could tive Palumbo stated that Huntington’s held on Wednesday, October 15, 2008, families have needed resources. occur, the justification of cost and eco- is not a mental illness, but Ms. Dunni- at 1:00 PM, in Room 131 of the Capitol Senator Borders stated that while nomic effects on the Glasgow community gan explained that it goes along with the Annex. Representative Tom Burch, Co- one goal is to place children as soon as shall be addressed. The nursing facility is disease. Chair, called the meeting to order at 1:10 possible, we need to determine if early licensed for 100 beds and designated as Senator Borders asked how many of PM, and the secretary called the roll. adoption is the better alternative. Mr. an Institution for Mental Disease (IMD). the 100 beds were filled and how many Present were: Salter said that there needs to be sup- An IMD is a hospital, nursing facility, or of those patients were from Glasgow. Members: Senator Julie Denton, port, whether financial or whatever, for other institution of more than 16 beds, Ms. Dunnigan stated there are currently Co-Chair; Representative Tom Burch, people who want to adopt American primarily engaged in providing diagnosis, 78 patients and the majority lived with Co-Chair; Senators Charlie Borders, Tom children. Senator Borders asked if faith- treatment or care of persons with men- 50 miles before being admitted to the Buford, Denise Harper Angel, Alice Forgy based institutions could help spread the tal diseases, including medical attention, facility. Kerr, Joey Pendleton, Dick Roeding, Dan word about the need of children to be ad- nursing care, and related services. Representative Burch asked if a new Seum, Katie Stine, and Johnny Ray Turn- opted. Mr. Salter stated that, again, the Currently there are 78 residents facility would have more beds, and Ms. er; Representatives Scott W. Brinkman, strengths of families need to be matched at the Glasgow nursing facility. Due to Dunnigan stated it would have 100 beds James R. Comer Jr., Robert R. Damron, with each child. building issues, the cabinet has com- like the current facility. He asked how Joni L. Jenkins, Mary Lou Marzian, Dar- Representative Owens asked about pressed the number of admissions. The prevalent Huntington’s was statewide, ryl T. Owens, Ruth Ann Palumbo, David the difference between kinship care and facility is recognized as having expertise and Ms. Dunnigan said she would have Watkins, and Addia Wuchner. foster care. He also asked if the agency in the management of Huntington’s dis- to get back to the committee with that Guests: Alex Blevins, Executive was aware of children having post trau- ease by the Huntington’s Disease Soci- information. Director, Kentucky CASA; Judge Elise matic stress syndrome because they were ety of America. This facility is the only Senator Denton asked about the av- Givhan Spainhour, Bullitt County Family separated from siblings. Mr. Salter said long-term care facility in the state that erage of patients over the last five years. Court; Judge Sheila Nunley Farris, Hen- that kinship care builds on strengths of has received this recognition. The pa- Ms. Dunnigan stated there was an av- derson County Family Court; Bart Bald- family and helps the child feel like they tients at Glasgow Nursing Facility can- erage of 76 patients over the past four win, President, Children’s Alliance; Pat were not totally abandoned. Technology not be placed in a regular nursing home years. Senator Denton asked if there was Wilson, Commissioner, Department for could be used to help find family mem- environment due to extensive psychiatric a need for all 100 beds, and Ms. Dunni- Community Based Services, Cabinet for bers who would be willing to take the medical and behavioral daily needs of the gan stated yes. Health and Family Services; Jill Seyfred, children into their homes who would patients. The Finance and Administration Susan G. Zepeda, Ph.D., Executive Prevent Child Abuse Kentucky; Christine otherwise not know about the child’s Cabinet determined that extensive work Director, Foundation for a Healthy Ken- and Lara Gelding; Tina Radford, Leslie

THE KENTUCKY GENERAL ASSEMBLY 19 Beam; Rebecca Cecil, Executive Direc- eration, inspections, and enforcement CASA helps her not to offend the child will take care of the child’s legal needs. tor, Commission for Children with Spe- of procedures necessary to insure a safe and gives her reports about a child. She Mr. Pitchford stated that CASA works as cial Health Care Needs; Peggy Howard, and sanitary environment; and 922 KAR said that there is a waiting list in need of a team member with the Department for Surgical Technology Director, KCTCS, 1:360 & E – establishes (a) five levels of a CASA volunteer. The CASA volunteers Community Based Services. Owensboro; Dr. Herman Kaebnick, M.D., care based upon the needs of a child for go through a vigorous screening process Senator Denton asked if a CASA Vascular Surgeon; Sandra Smith, RN, whom the cabinet has legal responsibil- and also work with social workers who would be interested in becoming super- BSN, Surgery Educator; Kim and Brian ity; (b) a payment rate for each level; (c) manage a child’s case. The CASA is there vised visitation supervisors. Mr. Blevins Nelson; Bill Doll, Kentucky Medical As- gatekeeper responsibilities; (d) provider for one reason and one reason only, and stated that CASA standards does not al- sociation; Guy Delius, Department for requirements; (e) procedures for classi- that is to stand up for the child. The low a CASA to be the only person at a Public Health, Cabinet for Health and fication at the appropriate level of care; CASA only helps one child at a time and supervised visit. Senator Denton stated Family Services; Kim Dees and Sarah and (f) procedures for determination of is bound by confidentiality rules. Reuni- that CASA volunteers would be good Nicholson, Kentucky Hospital Associa- components of the model program cost fication of the family is the most impor- supervisors. tion; Duncan Pitchford, CASA of Ken- analysis. tant thing for the child unless it would Representative Wuchner asked tucky; Paula Pabon, Kentucky Board of Senator Stine, Co-Chair, Families be detrimental for the child. A CASA about CASA funding. Mr. Blevins stated Nursing; Thomas H. Pinkstaff, M.D. and and Children Subcommittee, reported makes sure a case stays on track, and that all CASA programs are funded by Susan Noel, ARNP, University of Ken- the subcommittee met that morning they report progress to the judge. private non-profit funds. He stated that tucky; Don Putnam, PROOF – Oakwood; and heard a presentation concerning Mr. Blevins said that the mission approximately $3.25 million was raised Troy F. Bell, Administrative Office of the the condition of Apraxia. The subcom- of the Kentucky CASA is to present by grants, fundraisers, and community Courts; Eric T. Clark, Kentucky Associa- mittee listened to a presentation from a statewide voice for abused and ne- partners. He said that $1 million was re- tion of Health Care Facilities; Alice Mar- the Kentucky Autism Training Center glected children and enhance the growth quested from the General Assembly, but tin, CASA – Franklin County; and Shane by Rebecca Grau and the STAR Autism and support of existing CASA programs the request did not make it into the final O’Donley, Office of Certificate of Need, Treatment Services by Dr. Joseph Hersh. throughout the state. CASA volunteers budget. It takes $55,000 per year for one Cabinet for Health and Family Services. Rebecca Cecil, Executive Director, gave serve as a powerful voice for abused and CASA program. Title IV-E provides funds LRC Staff: DeeAnn Mansfield, CSA; an update on the Commission for Chil- neglected children, one child at a time. for reimbursement of training of CASAs, Mike Bossick, Miriam Fordham, Ben dren with Special Health Care Needs. A There are a total of 21 CASA programs but Kentucky is ineligible. Representa- Payne, Gina Rigsby, and Jonathan Scott. presentation on Preventing Childhood in the Commonwealth. Approximately tive Wuchner asked about the needs in A motion to approve the minutes Infectious Diseases was given by Kraig 7,500 children are in out-of-home care, Kentucky. Mr. Blevins stated that there of the September 5, 2008 meeting was E. Humbaugh, M.D., M.P.H., State Epide- and every day judges decide the futures are approximately 2,116 CASA cases in made by Senator Pendleton, seconded by miologist, Director, Division of Epidemi- of the children in a system that is often 42 counties. The CASA programs need Representative Watkins, and approved ology and Health Planning, Department too understaffed and overburdened to approximately $1.5 million in addition to by voice vote. for Public Health, Cabinet for Health and focus adequately on the needs of each funds raised by local programs. The following administrative regula- Family Services. child. Without help, these children are A presentation on the challenges of tions were referred to the committee for Representative Marzian, Co-Chair, at high risk for homelessness, unem- foster care in Kentucky was given by Pat consideration: 201 KAR 20:410 – estab- Health Issues Subcommittee, reported ployment, incarceration, and drug and Wilson, Commissioner, Department for lishes which records may be expunged the subcommittee met that morning and alcohol abuse as adults. CASA volun- Community Based Services, Cabinet for by the Kentucky Board of Nursing and heard a presentation on the behavioral teers visit the child regularly and provide Health and Family Services, Bart Bald- the procedure for expungement; 201 health and criminal justice grant program a consistent presence in his or her life, win, President, Children’s Alliance, and KAR 23:015 – establishes the require- by Donna Hillman, Director, Division of fully research the child’s history and Jill Seyfred, Prevent Child Abuse Ken- ments for the granting of temporary per- Mental Health and Substance Abuse, present situation, file court reports and tucky. Ms. Seyfred and Mr. Baldwin stat- mission to engage in the practice of so- Department for Mental Health, Devel- appear before the judge to advocate for ed that Prevent Child Abuse Kentucky, cial work; 201 KAR 23:070- establishes opmental Disabilities and Addiction the best interests of a child, and work the DCBS, and the Children’s Alliance all the educational institutions approved by Services, Cabinet for Health and Family with others to make sure the child’s stand united about the challenges of fos- the board, the definitions relating to su- Services, Rita Ruggles, Project Director, needs are being met. ter care and seeking solutions. Commis- pervision, the content of a Contract for Division of Mental Health and Substance Cases with a CASA volunteer will sioner Wilson stated that foster care is Clinical Social Work Supervision and the Abuse, Department for Mental Health, receive: 1) in-depth review and monitor- meant to be a temporary solution. Safety requirements for experience under su- Developmental Disabilities and Addic- ing of the child’s educational needs; 2) of the child is the main priority, and it is pervision; 201 KAR 35:020 – establishes tion Services, Cabinet for Health and in-depth review and monitoring of the important for the child to have a perma- an initial certification fee and renewal fee Family Services, and the Honorable Karen child’s health needs; 3) individual advo- nent placement as soon as possible. The by the Board of Certification of Alcohol Thomas, Chief District Judge, Campbell cacy by one volunteer per case; 4) advo- department tries to place the child with a and Drug Counselors; 201 KAR 35:040 County. The subcommittee also had an cacy for a safe, permanent home for each family member if at all possible. Approxi- – establishes the requirements for con- update on the newly established Office child. Volunteers are required to fin- mately 74% of the children are returned tinuing education for certified alcohol of Minority Health within the Cabinet for ish their cases and seldom does a child to the family. The longer a child stays in and drug counselors and prescribes Health and Family Services from Dr. Ruth switch a CASA. Children with a CASA foster care, the more chances they will methods and standards for the accredi- Ann Shepherd, Division Director, and Joy volunteer, when compared to children in be in placed in several foster homes. tation of continuing education courses; Hoskins, Assistant Division Director, Di- like circumstances without a CASA vol- Commissioner Wilson stated that ap- 201 KAR 35:050 – identifies the areas vision of Maternal and Child Health, De- unteer, will spend significantly less time proximately 70% of the children do not of study that will satisfy the require- partment for Public Health, Cabinet for in foster care, have fewer disruptions in move in the first month of placement. ment for certification as an alcohol and Health and Family Services. placement, and have fewer numbers of Approximately 45% of children will stay drug counselor; 201 KAR 35:060 – es- A gave an update on the missions placement. Currently only Kentucky and in the same foster care home within a tablishes procedures for the filing, evalu- and goals of Kentucky CASA (Court Ap- West Virginia receive no state dollars for 12-month period, and 20% with a 24- ation, and disposition of administrative pointed Special Advocate) was given by CASA. month period. complaints by the Board of Certification Alex Blevins, Executive Director, CASA Representative Owens asked if the Commissioner Wilson stated that of Alcohol and Drug Counselors; 201 of Kentucky, Judge Elise Givhan Spain- children who have a CASA also has a so- there has been an increase in the number KAR 35:070 – establishes the standards hour, Bullitt County Family Court, an cial worker. Judge Spainhour stated that of babies coming into the foster care sys- for the accumulation of the required su- Judge Sheila Nunley Farris, Henderson because social workers have a large case- tem. The department has been awarded pervised work experience with a certified County Family Court. Judge Farris ex- load, they utilize the help of a CASA. a 5-year, $2 million grant to work on alcohol and drug counselor who has at plained that there is a difference be- While a social worker may carry 20-25 diligent recruitment of foster parents. least two years of postcertification ex- tween a CASA and a Guardian Ad Litem cases, a CASA takes care of only one There are approximately 500 children in perience; 900 KAR 6:050 & E – estab- (GAL). A judge appoints a CASA for the child at a time. She stated that not all of foster care that are aggressive, low func- lishes the requirements necessary for the child, who then becomes the advocate or the 120 counties have CASA. Judge Far- tioning, have sexual issues and/or have orderly administration of the Certificate voice of that child for the duration of the ris said that if there are no prior offenses substance abuse who are difficult to of Need Program; 902 KAR 45:150 – es- case, no matter how long it takes. A GAL at home, a judge may contact a CASA handle. She stated that placing children tablishes uniform standards for schools gets the cases back on the docket when while the social worker tries to take care in foster care is a statewide, not just in a and includes sanitary standards for op- necessary. Judge Spainhour stated that a of the child’s physical needs. A CASA few geographical areas. The department

20 2008 Interim LEGISLATIVE RECORD tries to do what is in the best interest of service worker of any child determined state. The legislation will not: 1) create would only be in the scope of practice the child, so approximately 90% of chil- to be medically fragile. Children born in a shortage of surgical technologists; 2) for certified technicians. Ms. Dees stat- dren with sibling(s) are maintained in Kentucky have their hearing tested be- put existing surgical technologists out of ed that most hospitals do use certified the same foster home whenever possi- fore going home from the hospital. The work; 3) force existing surgical technolo- personnel over non-certified personnel. ble. It is very important to keep children staff in the Early Hearing Detection & In- gists to return to school; and 4) impinge Senator Denton asked if facilities in Jef- together. There are approximately 7,100 tervention (EHDI) program can help find on the right of any other duly licensed or ferson County only used certified techni- children in the foster care system, but it services for more testing and resources credentialed professional in the state to cians. Ms. Dees stated that hospitals are does not have to hinder children from if a child has a hearing loss. The Foster practice. trying to hire from accredited programs becoming the best person they can be. Care Support Program has a CCSHCN Dr. Kaebnick stated that he is in fa- because the technicians already have Representative Owens asked about nurse consults in each of the nine DCBS vor of the legislation. Surgical technolo- the necessary training. Senator Denton the difference between out-of-home care service regions statewide. The nurse con- gists are a part of the surgical team, but asked if any lawsuits had been filed as and kinship care. Commissioner Wilson sultants are available to all social service are the only ones not certified. The main a result of non-trained technicians. Ms. stated that there are approximately 9,000 workers at any time for matters concern- thing is have quality patient care. Ms. Nicholson stated that she was not aware children in kinship care. The children in ing children in or at risk of out-of-home Smith stated that she supports the legis- of any that have been filed. Ms. Dees kinship care are not in the custody of placement, not just those determined to lation because it would benefit patients asked why we would want two stan- the cabinet and guardians are paid from be medically fragile. by having highly trained people in the dards of care, urban or rural, because ev- TANF funds. The difference in out-of- Ms. Cecil stated that in collabora- operating room. ery patient gets the same quality of care. home care and kinship care payments is tion with the University of Kentucky, Senator Denton asked if the legisla- Senator Denton asked about the state- several hundred dollars a month. Repre- CCSHCN maintains a primary pediatric tion mandated hospitals had to use cer- wide shortage of surgical technicians Ms. sentative Owens stated that foster care care clinic staffed by professionals famil- tified surgical technologists. Ms. Smith Howard stated that surgery technology has different restrictions than kinship iar with the unique culture of foster care. said there are credentialing schools avail- will continue to have openings. There is care, therefore, kinship care would seem An array of assessment and care provi- able statewide. Senator Denton asked an 80% employability rate after gradu- to be a better option if possible. sion/coordination services are available if it would be satisfactory if there was ation. Senator Denton asked about the Representative Watkins asked about to children in the welfare system. Tran- voluntary certification. Ms. Smith stated cost. Ms. Howard stated the cost is $121 the age children leave foster care. Com- sition planning and parent consultants that this is already being done. The main per credited hour times 35 plus the cost missioner Wilson stated age 18 unless help children and families plan and pre- goal is quality patient care. Senator Den- of perquisite classes. a child wants an extension or for other pare for changes as the children grow. ton asked why it is necessary to study Senator Harper Angel asked if cer- circumstances such as school. Represen- A presentation on proposed legisla- anatomy and physiology. Ms. Smith said tified technicians want higher pay. Ms. tative Watkins asked how DCBS handles tion of the Kentucky State Assembly of that surgical technologists have to an- Howard stated that her hospital has a low functioning children who age out of Surgical Technologists was given by Peg- ticipate what tools the surgeon need and surgical level where when you finish all foster care. Commissioner Wilson stated gy Howard, Surgical Technology Director, are also required to do retraction. the necessary training you get a raise. they remain with DCBS in a different ca- Kentucky Community and Technical Col- Senator Roeding asked who op- There being no further business, the pacity. lege System (KCTCS), Owensboro, Her- posed the legislation, and they said they meeting was adjourned at 3:26. A presentation on Apraxia was man Kaebnick, M.D., Vascular Surgeon, did not know. Ms. Smith stated that they given by Christine Gelding, parent of Sandra Smith, RN, BSN, Surgery Edu- are advocates for patients’ safe care in INTERIM JOINT COMMITTEE Lara, a child with Apraxia, and Leslie cator. Ms. Howard stated that the leg- the hospital and operating room. ON JUDICIARY Bean and Tin Radford, family members islation has two objectives: 1) improve Sarah Nicholson and Kim Dees of Minutes of the 3rd Meeting of Lara. Ms. Beam stated that Apraxia is patient safety by ensuring all surgical the Kentucky Hospital Association tes- of the 2008 Interim a developmental disorder where a child technologists employed in Kentucky tified in opposition to the legislation. September 16, 2008 cannot pronounce words. She was ad- healthcare facilities in the future have Ms. Nicholson stated that the Kentucky The third meeting of the Interim ditional speech therapy available. Ms. demonstrated and documented compe- Hospital Association is in the process Joint Committee on Judiciary was held Radford stated these children belong in tency as entry-level practitioners, and of surveying members in 126 hospitals on Tuesday, September 16, 2008, at the least restrictive environment. She 2) increase the professionalism and re- statewide about the legislation. She said 10:00 AM, in West Liberty, Kentucky. said that some children with speech and gard for Certified Surgical Technologists that surgical technicians are not avail- Senator Robert Stivers II, Chair, called communication problems could be diag- amongst their peers. She stated that the able in all rural areas. There are only two the meeting to order, but delayed the call nosed with Apraxia. Each child should KCTCS currently has nine statewide ac- states that mandate technicians have to of the roll until later; a quorum was not have their needs met. Ms. Gelding stated credited Surgical Technology programs be certified. Ms. Dees stated that the as- present. Chairman Stivers recognized that allot of parents do not have family providing associate degree and diploma sociation would support the legislation Bob Nickell, mayor of West Liberty, Tim support systems. She stated that her education. The programs include basic if it is done in a safe fashion. She said Conway, County Judge/Executive of Mor- daughter needs intense therapy that is courses to prepare the student, followed that the hospitals establish and maintain gan County, and Joanne Tobin with the not available at this time. by eleven months of intensive classroom competency of all employees on an an- MSU Center at West Liberty, who each An update on the Commission for and clinical study. Students will success- nual basis. There are no current studies spoke and welcomed the committee to Children with Special Health Care Needs fully complete 13-22 General Education that state not having certified techni- the locality. (CCSHCN) was given by Rebecca Ce- credits coupled with 34 additional col- cians was detrimental to patient safety. Present were: cil, Executive Director. Ms. Cecil stated lege credit hours in surgical technology Hospitals need to be able to maintain Members: Senator Robert Stivers II, that since 1924, the commission has studies. She said that Surgical Technol- flexibility when staffing surgical suites. Co-Chair; Representative Kathy W. Stein, provided care for children with physical ogy practice has a vast potential to im- The association supports education and Co-Chair; Senators Perry B. Clark, Carroll disabilities. There are thirteen regional pact patient care negatively, and there- voluntary credentialing, but hospitals Gibson, Ray S. Jones II, Dan Seum and offices statewide where staff help get fore, requires formal training in anatomy, should not have to have mandatory cer- Katie Stine; Representatives Joseph M. care their children’s needs. A child can physiology, and surgical procedures that tification. Fischer, Derrick Graham, Darryl T. Ow- receive services if the child is a resident cannot be readily obtained with basic Senator Buford asked if there were ens, Arnold Simpson, Greg Stumbo and of Kentucky, younger than 21, has a on-the-job training. enough qualified surgical technicians, Robin L. Webb. medical condition that usually responds The legislation: 1) creates a route- and Ms. Dees said yes. He asked about Guests: J. Michael Foster, President- to treatment and is covered by the pro- of-entry to the profession of surgical the number of technicians are needed. Elect, Kentucky Association of Counties, gram, and meets financial guidelines. Pa- technology after a date certain in the Ms. Dees said there is no documentation Brucie Moore, President of the Kentucky tients remain eligible until they reach the future; 2) creates a hospital credential- that verifies a difference between certi- County Attorneys Association and Tom age of 21, have gained maximum benefit ing rule via legislation that requires that fied and non-certified technicians. Sena- Crawford from the Dept. of Revenue who from treatment, choose to obtain servic- hospitals hire Certified Surgical Technol- tor Buford asked if the association had later joined the panel. Rebecca K. Phil- es in another setting, or they no longer ogists to serve in surgical technologist conducted a survey about the difference, lips, Circuit Judge from the 37th Judicial comply with a treatment plan or pro- positions in the operating room; 3) de- and Ms. Dee stated not yet. Circuit was the final guest speaker. gram guidelines. In the Medically Fragile fines the practice of surgical technology; Senator Denton asked if certifica- LRC Staff: Norman W. Lawson, Foster Care Program, one of the licensed and 4) grandfathers existing practitioners tion of technicians would preclude non- Committee Staff Administrator; Ray De- registered nurses serve as consultants to avoid a shortage of available surgical certified technicians from being able bolt, Jon Grate, Joanna Decker and Caro- to foster parents and the assigned social technologists for surgical patients in any to be in the operating room because it lyn Gaines, Secretary.

THE KENTUCKY GENERAL ASSEMBLY 21 Chairman Stivers moved to the first eliminate unnecessary steps in the sys- to be a good investment vehicle that the Sen. Stivers next called Rebecca K. presentation on the agenda, which relat- tem, and to make the system more tax- taxpayers could benefit from instead of Phillips, Circuit Judge from the 37th Ju- ed to property tax bills. The two invited payer friendly with additional consumer private third party purchasers. Mr. Foster dicial Circuit, who presented the com- speakers were J. Michael Foster, Presi- protection systems built into the sys- did not know how the $25 million cap mittee with information on the forma- dent-elect of KACO, and Brucie Moore, tem. As an example, one change would had been arrived at, and agreed that the tion and operation of the new drug court President of the Kentucky County Attor- be to eliminate the sheriff’s sale of the bills could be a good investment for the in that circuit and with information on neys Association. Tom Crawford from delinquent bills, and just place the bills state. Sen. Seum finished by observing the operation of drug courts generally. the Dept. of Revenue later joined the with the county clerk. Another would that the system’s current design made Judge Phillips informed the commit- panel. be the creation of some type of vetting things unnecessarily complicated for or- tee that the local drug court had been in Mr. Foster began his presentation process for the third party purchasers. dinary citizens. operation in one county in the circuit for by noting that county offices in Ken- Mr. Foster informed the committee that Rep. Owens inquired about the less than two years, and that it was in the tucky are fee based, with fees generated the hope was to have legislation ready problems created by multiple potential process of expanding into the remaining in the course of that office’s business be- for the upcoming session of the General third party purchasers attempting to two counties. The judge stated that in ing used to support the operation of the Assembly. purchase the same set of tax bills. Mr. dealing with criminal defendants, part of office as it provides services to the citi- Rep. Stumbo asked about the de- Foster stated that the legislation being her philosophy had to center on the idea zens. Also, in relation to tax bills, when gree of latitude given to local officials drafted would clarify how that situation of exacting punishment for a crime and the county attorney works to collect a when collecting delinquent property tax would be resolved. in protecting society from future crime. bill, the county attorney does so pursu- bills, with the response being that lati- Rep. Simpson shared his experience In terms of protection, the judge stated ant to a contract with the Revenue Cabi- tude exists with regard to penalties and from Northern Kentucky, that being that that incarceration may not always be the net, and receives a commission for that interest but not as to the amount of the contact problems with third party pur- best solution because of a lack of treat- work. Mr. Foster related that the collec- actual tax itself. Rep. Stumbo asked the chasers are rare because the companies ment programs, or that the person’s sen- tion of unpaid property tax bills has tra- same question in regard to third party want the contact to occur so that they tence may be too short to qualify them ditionally provided fee and commission purchasers, with the response being can be paid. He also alerted the commit- for treatment while incarcerated. income for county attorneys, county that latitude also exists there as to all tee to a statute that gives a purchaser In terms of treatment, Judge Phillips clerks, and sheriffs, but that increasingly amounts, but that it is seldom used. from a prior year a preference in purchas- informed the committee that drug court the tax bills are being purchased and col- Sen. Jones related that a problem he ing the bill for the same property the next participants undergo testing far more lected by private third party purchasers. sees has to do with purchasers of a new year, since that process bypasses many frequently than would occur in a typical By removing the tax bills from the public property not receiving the tax bill for the of the local fees that would otherwise be probation or parole situation, with test- officers’ collection process, those offi- property when it is purchased mid-year. imposed on the new tax bill. Lastly, Rep. ing taking place even on holidays and cers are being deprived of the fee revenue Further, when the new owner attempts Simpson also expressed displeasure in weekends. Drug court treatment also that has been traditionally generated by to contact a third party purchaser of the regard to the process of having relatively tries to address post-treatment support the collection of those tax bills. Mr. Fos- tax bill to pay it, there is a great deal of small bills became rather large in a short issues to help prevent relapse. Part of this ter related his belief that the tax bills are difficulty in having the phone answered. amount of time, stating that the proper- process can focus on lifestyle choices of being purchased by private third party Sen. Jones offered that perhaps a better ty tax bill process was never intended to the participants, with one example being purchasers due to the fact that they car- system of notifying new property pur- become an investment vehicle for large persons who have never held employ- ry 12% interest, and that the purchaser chasers of existing tax bills would be of corporations. ment. Drug court requires employment may also collect penalties and fees, in- assistance, and that the state may want Rep. Stumbo confirmed with the or the active seeking of employment. cluding an attorney fee. He also related a requirement that third party purchas- guests that eliminating the sheriffs’ sale Participants also regularly journal and that he understands that while many ers actually communicate with prop- of delinquent bills is part of the legisla- do homework assignments as a means of these purchasers are legitimate busi- erty owners. In response to Sen. Jones’ tive package being developed and further of education and learning to self-identify nesses who operate reasonably, he has question regarding fees and consumer suggested looking at ways to have more problems and solutions. heard that a number of the purchasers protection, Mr. Foster reiterated that the collection done at the local level with An additional emphasis in drug fail to work with or even communicate ongoing drafting process was looking at those officials being perhaps given a court is requiring honesty from the par- with the delinquent taxpayer in the hope all fees and that they desired to build little more latitude in the process of col- ticipants, with penalties for dishonesty of prolonging the time of the indebted- consumer protection provisions into the lecting. being as severe as those for using drugs. ness with an eye toward maximizing the legislation. Sen. Jones confirmed that even if The judge stated that being honest can time that the 12% interest runs. In response to committee concerns, the sheriffs’ sale is eliminated that the be a new experience for participants, Mr. Foster further informed the Mr. Foster stated that third party pur- bills would still be offered for sale, just at who have led a life of making excuses committee that recent legislation allows chasers had to wait 12 months before the county clerk’s office. Sen. Jones also to avoid responsibility. Another aspect the Commonwealth to purchase delin- they could begin the process of initiat- expressed his hope that the legislation of treatment has to do with identifying quent property tax bills. This allows the ing a sale of the property. Ms. Moore also would balance the need of local govern- mental or emotional triggers for drug Commonwealth to benefit from the 12% informed the committee that legislation ment to collect taxes needed by the gov- use. The judge stated that many partici- interest, although the state is limited to coming into effect this year requires that ernment for public services with fairness pants used drugs as a way of dealing with holding a maximum of $25 million in de- deeds contain information as to who will to local residents. these issues, such as boredom, anger, linquent tax bills at any one time. be responsible for the property tax bill. A Sen. Stivers asked about the fees depression, etc. Drug court tries to teach Mr. Foster also spoke to a developing non-compliant deed will be non-record- currently allowed, and factors that people to deal with these issues through problem that is occurring as the number able. drove the amount due on a delinquent some means other than drug use. of third party purchasers increases. That Rep. Webb stated her desire to have tax bill. Ms. Moore went over the fees The judge informed the committee problem centers on determining who the committee hear from the Attorney chargeable, including various adminis- that the drug court in her circuit had not may purchase the tax bills when there General and the Dept. of Revenue in re- trative fees, attorney’s fees, and inter- run long enough to say if it had been a are competing prospective purchasers. gard to the property tax issue. est. With regard to fees charged by local success, but that it looked like it would There is little statutory guidance as to Sen. Seum asked if a mortgage com- public officials in the collection process, turn out that way as they had people who the bills should be sold to if mul- pany gets notified of unpaid tax bills. Ms. Moore pointed out that with fund- who were succeeding in the program, tiple purchasers appear at the same time Mr. Foster replied that the answer was ing cuts made by the General Assembly, and that drug court in Kentucky as a to purchase the bills. legally no, but that some county attor- those fees are more important now than whole has been a success. To illustrate In light of the foregoing, Mr. Foster neys made that contact to assist in col- before if those offices are to continue to the point, the judge informed the com- informed the committee that Kentucky lection. Sen. Seum offered the thought provide the same level of service. mittee that Kentucky now had 411 drug Association of Counties, the Dept. of that perhaps that contact should be re- Sen. Stivers stated that the issue of free babies born to drug court partici- Revenue, and other interested stakehold- quired in light of HB 182 which requires property tax bill collection was an im- pants; babies that would have otherwise ers were engaged in an ongoing effort to that consideration be given to “in care portant issue, and thanked the witnesses been born to a drug using parent. develop a comprehensive reform of the of” addresses. Sen. Seum then asked for the quality of their presentation and In terms of needs, the judge related property tax bill process currently in about the calculation of the $25 million their effort in coming across the state to that in her area the biggest problem was place. The goals of the legislation are to cap imposed on the state’s purchase of make that presentation before the com- transportation. Her circuit is comprised retain fee funding for county offices, to property tax bills, since they would seem mittee. of three rural areas, and many partici-

22 2008 Interim LEGISLATIVE RECORD pants do not have a driver’s license, and Harper Angel, Jerry P. Rhoads, Richie merce, and the medical and legal profes- permanent impairment rating under the do not have access to buses or taxis. She Sanders, Jr., and Ken Winters; Repre- sions. Commissioner Lovan said that he AMA Guides and has a complete and also thought that more treatment op- sentative Mary Lou Marzian, Co-Chair; has met with an informal study group in- permanent inability to perform any type tions and more capacity at existing drug Representatives John A. Arnold Jr., Will volving representatives from each of the of work. treatment programs would be of assis- Coursey, Myron Dossett, C. B. Embry categories and information developed Administrative Law Judge will con- tance. Jr., Bill Farmer, Charlie Hoffman, Dennis by this group was presented at the June sider workers’ age, education level, med- The judge also addressed a percep- Horlander, Joni L. Jenkins, Rick G. Nel- meeting of the Interim Joint Commit- ical restrictions, and prior work experi- tion that drug court might be something son, Tom Riner, and Brent Yonts. tee on Labor and Industry. The purpose ence. of a “get out of jail free” card. With pro- Guests: Dwight Lovan, Commis- of the presentation at this meeting was Calculated using 2/3 of workers’ av- gram participants beginning their day at sioner, Department of Workers’ Claims; to further update the committee, as the erage weekly wage (subject to statutory 5:30 AM, being required to work, having Donna Terry, Chief Administrative Law final report is due to the Legislative Re- maximum cap of $670.02 for 2008). to actively engage in treatment programs Judge, Department of Workers’ Claims; search Commission by January 5, 2009. Payable until worker qualifies for and drug court activities, and then hav- John Gardner, Workers’ Compensation Commissioner Lovan said the sixth edi- old-age Social Security benefits. ing an 8:00 PM curfew, the judge’s opin- Board; Judy Lawrence; Lucretia Johnson, tion will likely go into effect on the regu- 3. Permanent Partial Disability ion was that a participant’s daily life was Department of Workers’ Claims; Tom lar effective date for bills passed during (PPD) Benefits not an easy one. Grace; Jerry Coomes; Representative the 2009 General Assembly, unless find- Based upon a permanent disability At the conclusion of the judge’s Fred Nesler; Rusty Cress; Tyler Campbell, ings prove earlier adoption would mate- rating calculated by multiplying a perma- remarks, Rep. Webb recognized and KY Chamber of Commerce; Ronnie L. rially enhance the welfare of Kentucky’s nent impairment rating under the AMA thanked the judge and audience mem- Boggs; Ched Jennings; Bruce Roberts; Le- workers. Guides by a statutory grid factor con- ber David Flatt, the Commonwealth’s roy Meadon; Don Sammons; Scott Miller; Commissioner Lovan explained the tained in KRS 342.730. Attorney for the judge’s circuit, for the David Hall; Donna Brown; Bob McWil- rating system currently used by the De- Calculated at 2/3 of workers’ aver- hard work that they do in operating the liams; Laurent Rawlings; Brenda Hern- partment of Workers’ Claims to assess age weekly wage (subject to statutory drug court and working to get appropri- don; Anton Cunningham; J.R. Wilhite, permanent partial disability and perma- state maximum PPD cap of $502.51 per ate people placed into the program. Rep. KY Education Cabinet; Richard P. Mull- nent total disability. The permanent im- week for 2008). Webb reiterated her view that drug court ins, Ky. Education Association; Owen C. pairment rating means the percentage of Payable for 425 weeks; if disabil- in Kentucky has proven to be a success. Tucker; Lori Torres; and Richard Meyer. whole body impairment caused by the ity rating is over 50%, award is for 520 Sen. Jones shared with the com- LRC Staff: Linda Bussell, Melvin injury or occupational disease as deter- weeks. mittee his experience gained from 14 LeCompte, Adanna Hydes, and Betsy mined by the AMA Guides. The perma- Example: Average Weekly Wage = years of practice that drug abuse is an Bailey. nent disability rating means the perma- $600, AMA Guides impairment rating ever increasing problem. He stated that Rep. Mary Lou Marzian welcomed nent impairment rating selected by an 10%. Permanent disability rating = 8.5% he was looking forward to the work of members and guests and expressed the administrative law judge times the fac- (10% x .85 factor). $400 (2/3 of $600) x the penal code subcommittee regarding committee’s appreciation to those who tor set forth in the table that appears at 8.5% = $34 per week. the drug problem given the fiscal and facilitated the meeting during the Labor- KRS 342.730(1)(b). Commissioner Lo- Judge Terry said that PPD benefits human costs of drug addiction. Finally, Management Conference at Kentucky van said that Chief Administrative Law will be most affected by the adoption he expressed hope that attention could Dam Village State Resort Park. Rep. Mar- Judge Donna Terry would further explain of the sixth edition of the AMA Guides. be given to catching people earlier in the zian recognized legislators and other of- the math used to determine the weekly She explained that for PPD benefits addiction cycle, such as when a person is ficials in the audience, including: House payment to individuals with permanent only, there are “multipliers” available. A charged with driving under the influence Speaker Jody Richards, Rep. Darryl Ow- total and permanent partial disabilities. worker who does not retain the physi- of a drug. ens, Rep. Jon Will Stacy, Rep. Fred Nesler, Commissioner Lovan said that de- cal capacity to perform the type of work In response to a question from Rep. and Secretary J.R. Gray and Deputy Sec- pending upon the impairment rating as- performed on the date of injury receives Graham, the judge stated that almost retary Mark Brown of the Labor Cabinet. signed, a statutory factor is multiplied three times (3x) the basic weekly benefit. all of Kentucky’s circuits now had drug She recognized and congratulated Ray by the rating. For example, an impair- A worker who returns to work post-inju- courts operating in them. In response to Crider who was recently appointed to ment rating of 10% under the AMA ry at the same average weekly wage, but further questioning, the judge informed the Unemployment Insurance Commis- Guides would result in a disability rating who subsequently earns less is entitled Rep. Graham that drug testing is done sion, and recognized members of the La- of 8.5%, because the impairment rating to 2x the basic weekly benefit during any in the drug court’s offices, and that the bor-Management Conference Board. Sen. (10%) would be multiplied by the statu- period of lesser earnings. The 2x benefit circuits did collaborate on best practic- Alice Forgy-Kerr also expressed apprecia- tory factor (.85) to determine the disabil- applies regardless of the reason for the es. Each of the circuits uses a standard tion to those who facilitated the com- ity rating. He presented a table of impair- cessation of earning the same wage level model with required protocols, but that mittee meeting during the conference. ment ratings under the AMA Guides and and whether the reduction is temporary local adaptations are encouraged to fit Rep. Marzian introduced Dwight Lo- the corresponding factors or multipliers or permanent. She further explained that the needs and preferences of the com- van, Commissioner of the Department of set forth in KRS 342.730. age and education are factors in the dis- munity. Workers’ Claims, and Donna Terry, Chief Judge Terry explained that the job of ability benefit determination. If a worker The meeting was adjourned at 12:05 Administrative Law Judge for the De- the administrative law judge is to apply lacks the physical capacity to return to PM. partment of Workers’ Claims. She called the statutory benefit scheme to deter- the same type of work, he or she may on Commissioner Lovan to update the mine disability benefits. She explained be entitled to additional benefits based committee on the feasibility of adopting that there are three types of disability upon advancing age or limited educa- THE INTERIM JOINT the sixth edition of the American Medi- benefits: tion. COMMITTEE ON LABOR AND cal Association (AMA) “Guides to the 1. Temporary Total Disability Ben- Commissioner Lovan presented INDUSTRY Evaluation of Permanent Impairment” efits (TTD) some preliminary comparisons of impair- Minutes of the 3rd Meeting for Workers’ Compensation as required Awarded during a period of recovery ment ratings under the fifth and sixth of the 2008 Interim by SB 199. from an injury or surgery. editions of the AMA Guides. He focused September 9, 2008 Commissioner Lovan addressed the Appropriate for so long as worker on impairment ratings for the upper and The 3rd meeting of the Interim Joint committee on the requirements of SB has not reached maximum medical im- lower extremities and the spine, which Committee on Labor and Industry was 199, which was signed by the Gover- provement (MMI) and is unable to return account for approximately 70% of Ken- held on Tuesday, September 9, 2008, nor as an emergency act in early April of to his customary employment. tucky’s workers compensation claims. at 2:30 PM Central Time, in Room A of 2008. The bill required the commissioner Calculated at 2/3 of worker’s aver- The most significant preliminary differ- the Convention Center at Kentucky Dam to direct a study on the feasibility and age weekly wage (subject to the statuto- ences in impairment ratings appear to Village State Resort Park. Representative advisability of adopting the sixth edition ry state maximum TTD (cap of $670.02 involve the lower extremities, especially Mary Lou Marzian, Presiding Chair, called of the AMA Guides to the Evaluation of for 2008). for total knee, hip, and ankle replace- the meeting to order, and the committee Permanent Impairment, or retaining us- Example: Average Weekly Wage = ments, and there are major differences assistant called the roll. age of the fifth edition of the Guides. In $600, TTD = $400 per week. relating to cervical and lumbar fusions. Present were: conducting the study, SB 199 required 2. Permanent Total Disability (PTD) The sixth edition contains impair- Members: Senator Alice Forgy Kerr, the commissioner to seek input from Benefits ment ratings for some conditions, such Co-Chair; Senators Julie Denton, Denise groups representing labor, industry, com- Awarded to a worker who has a as those relating to psychiatric disorders

THE KENTUCKY GENERAL ASSEMBLY 23 and pain that do not exist in the fifth. Commerce Clause, and currently the de- responded that they are aware of the sit- The sixth edition also contains a signifi- partment in not enforcing that section uation and will have a legislative propos- cant change in the methodology used by INTERIM JOINT COMMITTEE of the KRS. Gen. Arflack said that this al to address the issue. Representative physicians to determine impairment rat- ON LICENSING AND decision is still in litigation. Moore said that as a UPS common carrier ings. OCCUPATIONS Regarding out-of-state wine sales he is not allowed to transport alcoholic Commissioner Lovan explained that Minutes of the 3rd Meeting and licensing small farm wineries, Gen. beverages. Representative Jenkins asked Kentucky is not unique in not immediate- of the 2008 Interim Arflack said Kentucky has licensed 46 where the department was on the issue ly adopting the sixth edition of the AMA September 12, 2008 in-state small farm wineries and there regarding minors on the premises where Guides. Several states do not specify a The 3rd meeting of the Interim Joint are seven applications pending. He said alcohol is served. Gen. Arflack said the particular edition, several states have Committee on Licensing and Occupa- Kentucky has licensed 13 out-of-state department has clarified certain venues state specific impairment recommenda- tions was held on Friday, September 12, small farm wineries and has only one designated as concert venues that meet tions, and the majority of states are cur- 2008, at 10:00 AM, in Room 129 of the application for an out-of-state winery certain criteria to allow minors on the rently using the fifth or fourth editions. Capitol Annex. Representative Joni L. pending. There is an average of eight premises. New Hampshire, Vermont, Tennessee, Jenkins, Chair, called the meeting to or- consumer inquiries a month regarding Next on the agenda, Jeffery Rus- and New Mexico have delayed adoption der, and the secretary called the roll. out-of-state wine shipments, with a sell, M.S., C.Ac., from Bluegrass Chinese of the sixth edition, but Alaska has of- Present were: slightly higher number of calls from out- Medicine in Louisville; representing the ficially adopted it. Members: Senator Gary Tapp, Co- of-state wineries regarding out-of-state State Advisory Committee on Acupunc- Rep. Marzian thanked Commission- Chair; Representative Joni L. Jenkins, Co- shipments. ture, gave an update on the status of er Lovan and Judge Terry for their pre- Chair; Senators Tom Buford, Julian M. Senator Carroll asked if the ruling by acupuncture certification in Kentucky. sentations and asked why there are such Carroll, Perry B. Clark, Julie Denton, Ray Judge Simpson had been appealed. Gen. Mr. Russell said prior to the passage of radical differences in the impairment rat- S. Jones II, Bob Leeper, and Dan Seum; Arflack said it had been remanded back. House Bill 17 in the 2006 legislative ses- ings between the fifth and sixth editions Representatives Larry Clark, Ron Crimm, LaTasha Buckner, General Counsel for the sion, most people in Kentucky did not and if the AMA had provided any expla- Tim Firkins, Dennis Horlander, Dennis department, added that the department understand acupuncture. He testified nation for the differences. Keene, Adam Koenig, Charles Miller, Tim is currently not a party to the suit. Sena- that with the passage of the acupunc- Commissioner Lovan responded Moore, Ruth Ann Palumbo, Carl Rollins tor Carroll also asked if the department ture legislation Kentucky rose to the that, based on information he has gath- II, and Ron Weston. was giving consideration for changes same level of professionalism and public ered from physicians, the sixth edition’s Guests: Brigadier General Norman E. to accommodate the World Equestrian protection as the 43 other states that ratings are based more on physical re- Arflack, Commissioner, LaTasha Buckner, Games. Gen. Arflack said the depart- regulate acupuncturists. The passage of sults from treatments rather than spe- General Counsel, and Danny Reed, Malt ment was currently working with the this legislation allows for laws and regu- cific medical procedures. The other ratio- Beverage Administrator, Department of Horse Park to ensure that the venue was lations that permit qualified acupunc- nale provided was that the fifth edition’s Alcoholic Beverage Control; Jeffery Rus- fully serviced. Danny Reed, Malt Bever- turists to work as independent practitio- impairment ratings were too high. sell, M.S., C.Ac., and Oliver Barber, State age Administrator, added that some of ners. He said that when the legislation Sen. Rhoads asked if the system of Advisory Committee on Acupuncture; the Horse Park’s boundaries were in was passed, 18 people applied and were rating impairment could be described as and Todd Leatherman, Executive Direc- Scott County, which is a dry county, so certified, and there are now 41 certified a “one-size fits all” approach. Commis- tor and Kevin R. Winstead, Assistant the department would have to address acupuncturists in Kentucky. He noted sioner Lovan agreed that was a fair state- Attorney General, Office of Consumer that issue. Senator Carroll asked if the that the Kentucky Board of Medical Li- ment. Impairment rating does not take Protection. department would address revenue is- censure (KBML) has issued nine letters into consideration the worker’s occupa- LRC Staff: Tom Hewlett, Bryce Am- sues. Gen. Arflack responded that the to cease practice to non-licensed prac- tion. Sen. Rhoads asked if the disparity burgey, and Susan Cunningham. department is looking at fee adjustments. titioners with little or no response due in ratings between the fifth and the sixth Representative Jenkins called the Senator Leeper asked what the consum- to the minor penalties that result from editions regarding cervical and lumbar meeting to order and asked for a motion er’s options were to order out-of-state non-compliance. Mr. Russell noted that fusions would result in a further dispari- to adopt the minutes from the August wine today. Gen. Arflack said that with House Bill 17 requires an acupuncturist ty in the final analysis when applying the 22, 2008, meeting. There was a motion the court ruling, consumers could order to notify the patient’s treating physician multipliers. Commissioner Lovan agreed and a second, and the minutes were ad- wine over the phone or purchase via the if one of ten specific health conditions is that it would. opted by voice vote. internet. Senator Buford asked if there noted on the initial office consultation. Sen. Harper Angel asked why Ten- First on the agenda, Brigadier Gen- had been any violations since Senate Bill Notification must be made before per- nessee initially adopted the sixth edition, eral Norman Arflack, Commissioner of 82 had been enacted. Ms. Buckner re- forming acupuncture treatments, even but later returned to the use of the fifth. the Department of Alcoholic Beverage sponded that the only violation would be though approval from the treating phy- Commissioner Lovan explained that the Control, Danny Reed, Malt Beverage Ad- if an out-of-state winery shipped wine sician is not required. If the physician Tennessee statute put the sixth edition ministrator, and LaTasha Buckner, Gen- into Kentucky without a Kentucky small does not respond after a second notice into effect before adequate copies of that eral Counsel, gave an update on the U.S. farm winery license. Senator Buford also the acupuncturists may proceed with edition were distributed. Tennessee’s At- Supreme Court’s decision on interstate stated that he has been told that some treatment. Mr. Russell said it is general- torney General issued an opinion stating wine shipments, and potential issues for retailers are discontinuing local winery’s ly felt that this regulation is unnecessary that it was unconstitutional to use the the 2009 General Assembly. Gen. Arflack labels if the winery wasn’t siding with and a burdensome barrier to treatment latest edition available rather than a spe- said one item that the department was them against larger retail chains obtain- for both patients and the practitioners, cific edition. concerned about is how potential legis- ing the right to sell alcoholic beverages. since there are no medical contraindi- Rep. Farmer asked if the National lation would impact special events such Gen. Arflack and Mr. Reed both respond- cations or negative implications related Council on Compensation Insurance as the World Equestrian Games in 2010. ed that the department had not received to using acupuncture on the ten health (NCCI) used the fifth or sixth edition He said that the department was work- any complaints of this nature. Senator conditions. Mr. Russell stated that the when it made the recommendation to ing with the Public Protection Cabinet Buford asked if the Small Farm Winery Acupuncture Advisory Committee is in- lower workers’ compensation rates. and the Governor’s Office to ensure that Distribution Fund had been exhausted. terested in revising three issues. He said Commissioner Lovan said that the recent regulations would be in place and that Virginia Davis responded that the fund the committee would like to change the NCCI loss cost filing that recommended people from around the world visiting was set up in the Department of Agricul- current penalty for non-physicians prac- a decrease was based upon the fifth edi- Kentucky would want to return. Gen. ture. Senator Tapp said he did not know ticing acupuncture without certification tion. Arflack said, regarding the Granholm de- the balance of the fund and suggested from a misdemeanor to a felony; elimi- Rep. Marzian announced that pend- cision allowing out-of-state wineries to that the Department of Agriculture come nate the requirement to notify physi- ing LRC approval, the October meeting ship into Kentucky, the department was to the committee’s November meeting cians of patients who are being treated of the Interim Committee on Labor and complying with the attempt to level the to give an update on the entire program. for any of the ten medical conditions Industry will be held October 23rd in playing field. He said that Judge Charles Representative Jenkins said that staff re- listed in KRS 311.680 who are seeking Lexington jointly with the Interim Joint Simpson upheld the majority of changes ported to her that consumers are calling acupuncture treatment; and to change Committee on Economic Development implemented with the passage of Sen- to say that common carriers such as UPS acupuncturist from certified to licensed. and Tourism. There being no further ate Bill 82 in the 2006 General Assem- and Federal Express do not understand Mr. Russell told the committee that li- business, the meeting was adjourned. bly. However, Judge Simpson ruled that the status of wine shipments and are re- censure would help patients with insur- the “in-person requirement” violates the fusing to transport wine. Gen. Arflack ance coverage that limited payments to

24 2008 Interim LEGISLATIVE RECORD licensed practices. Currently they have stead Assistant Attorney General, on working to determine the most appropri- seconded by Representative Crimm, the to travel to other states; Indiana, Ohio the implementation of Senate Bill 57, the ate course of action in dealing with the minutes of the June 25, 2008 meeting and Tennessee, that license acupunctur- “Christine Talley Act.” The act related situation. were approved. ists for treatment to be covered by insur- to personal emergency response systems Chairwoman Jenkins asked if there The first order of business was dis- ance. and was passed by the 2008 General As- was other business to come before the cussion of city classification. Chairman Representative Keene asked if pierc- sembly. Mr. Winstead said the office has committee. Representative Crimm said Thayer recognized Representative Jimmie ing the skin was considered a medical a simple plan for implementing the act, that, approximately one month earlier, Lee to address the committee. Represen- procedure. Mr. Russell said that prior beginning with educating the industry the Jefferson County Delegation had been tative Lee told the committee that the to the legislation that definition was a and the consumers on how the new leg- invited to meet with different levels of General Assembly has never acted on gray area, but House Bill 17 clarified the islation affects the Personal Emergency Bingo operators in Jefferson County. He Section 156A of the Constitution, which definition. Representative Miller asked Response System (PERS). He said that said that during the meeting they were was to devise a new system of city clas- how other states’ guidelines affected a questionnaire would be distributed to told disturbing stories regarding their sification. He noted that a lawsuit has Kentucky’s acupuncture statutes. Mr. associations and companies that provide Bingo operations. Representative Crimm been lodged against the City of Eliza- Russell said that in Tennessee, Ohio, the service in Kentucky and to commu- asked if staff from the Office of Charitable bethtown challenging the appropriate- West Virginia, and other surrounding nity organizations as well as state agen- Gaming could return to the committee ness of its current status as a city of the states, licensing acupuncturists allow cies such as the Department for Aging for questions to determine the validity fourth class when it has the population the practitioner to bill insurance compa- and Independent Living. He stated the of the complaints. Chairwoman Jenkins to be classified as a city of the second nies and receive reimbursement without office will also distribute its publication, responded that she would discuss the class under the present classification questioning his or her credentials. Mr. Helping Seniors. Mr. Winstead said that, matter with the Senate Chairman and system. Representative Lee stated that Russell added that there was no reciproc- beginning in January, all county attor- thanked Representative Crimm for at- he sponsored a resolution during the ity from state to state for practitioners. neys will have enforcing authority and tending the Bingo meeting with herself 2008 session that would create a task Representative Koenig asked if patients that the Prosecutors’ Advisory Council and Representative Firkins. force to study city classification. He said who had insurance coverage currently will support education and enforcement There being no further business to that the resolution failed to pass. could apply for reimbursement for acu- procedures for the county attorneys. He come before the committee the meeting Representative Wayne asked why puncture treatments, and if the certifi- said, at the appropriate time the Attor- was adjourned at 11:55 a.m. cities are classified. Representative Lee cation was changed to licensure would ney General’s Office will have press re- replied that is one of the questions that the insurance company be required to leases to advise consumers and increase INTERIM JOINT COMMITTEE needs to be answered. He said it his hope pay a claim. Mr. Russell responded that visibility concerning the bill and how the ON LOCAL GOVERNMENT that by creating a task force to study city the variance was among policies rather industry and consumers can comply. Mr. Minutes of the 2nd Meeting classification, that those types of ques- than companies depending on the policy Winstead said that while the bill was ef- of the 2008 Interim tions can be answered. and benefits granted. A claim could be fective now, there is no requirement for September 24, 2008 Representative Simpson comment- denied because the practitioner was only action by the companies until January 1, The second meeting of the Interim ed that classification is a relic of the past certified rather than licensed. Senator 2009. He said that after this date the Joint Committee on Local Government and should be scrutinized and reviewed. Jones asked what the requirements were contracts with the companies are re- was held on Wednesday, September 24, He commended Representative Lee’s ef- to become an acupuncturist and if a pa- quired to provide certain provisions to 2008, at 10:00 AM, in Room 171 of the forts. He noted that different classes of tient could seek acupuncture treatment make sure that the consumers using the Capitol Annex. Senator Damon Thayer, cities can enact different kinds of taxes. without a referral from a treating physi- service can list 911 as the first number Chair, called the meeting to order, and Representative Montell commented cian. Mr. Russell said that acupunctur- called when they signal an emergency. the secretary called the roll. that he thought it was a good idea to ists were a standalone profession, and did Mr. Winstead said that for any contracts Present were: study city classification. not require a physician referral. He said; in effect prior to this date, the compa- Members: Senator Damon Thayer, Chairman Thayer pointed out that however, that he had developed relation- nies must send out a notice to the con- Co-Chair; Representative Steve Riggs, a similar situation has occurred in his ships with internists, D.O.’s, and Gener- sumers allowing them to make changes Co-Chair; Senators Julian M. Carroll, and Representative Hoffman’s district al Practitioner’s as well as surgeons and to their call list. He said companies and Ernie Harris, Elizabeth Tori, and Johnny where the leaders of the City of Sadieville some of them referred patients to him. consumers should receive this informa- Ray Turner; Representatives Ron Crimm, sought reclassification as a city of the Mr. Russell said that to be certified in tion by the end of September, allowing Mike Denham, Ted Edmonds, David Floyd, fifth class but does not have the required Kentucky you must attend a school ac- ample time to make necessary changes. Derrick Graham, Richard Henderson, population. He continued to say that the credited by the National Commission Mr. Winstead said that beginning in Jan- Charlie Hoffman, Dennis Keene, Adam City of Georgetown has the population for Certification of Acupuncture and uary the office would begin the normal Koenig, Tom McKee, Brad Montell, David to be reclassified as a city of the second Oriental Medicine (NCCAOM) and com- process of resolving complaints, taking Osborne, Arnold Simpson, Ancel Smith, class but is not interested in being re- plete a course of training comparable to legal action when necessary. He said Ken Upchurch, and Jim Wayne. classified. a four-year Master’s degree. Chairman this would include enforcing compliance Guests: Representative Jimmie Lee; Chairman Thayer next recognized Tapp asked how many of the 43 states or obtaining civil penalties when appro- Matt Wyatt, Bill Bennett, Steve Atcher, Mr. J. D. Chaney with the Kentucky had licensure versus certification. Mr. priate. The maximum penalty could be Rudy Mays, and Tim Walker, Elizabeth- League of Cities (KLC). Mr. Chaney told Russell responded that he was unsure $10,000 for a knowing violation. He said town citizens; Ken Warden and Jim the committee that the League support- but thought approximately 80% were that all complaints are tracked, allowing Schack, Northern Kentucky Association ed Representative Lee’s resolution dur- licensed. Senator Leeper asked if a medi- the office to have information with re- of Realtors; James Sharp, Kentucky As- ing the 2008 session. He explained that cal doctor was required to have training gards to changes that would be made to sociation of Realtors; Richard Moloney, classification has gone by the wayside. to practice acupuncture and if insurance educate and enforce the bill. Bill Swope, George Mann, Rose Baker, Mr. Chaney stated that the League con- companies would reimburse medical Senator Buford thanked the office and Dawn Bellis, Department of Hous- tinues to support Representative Lee’s doctors who practice acupuncture. Mr. for their work in implementing the legis- ing, Buildings & Construction; David efforts. Russell said he was aware of only a small lation, saying that prior to this act there Willmoth, Mayor, City of Elizabethtown; Chairman Thayer asked if the League number of M.D.’s practicing acupuncture was no protocol for a company when an Larry Klein, City of Covington; J. D. had a proposal or recommendation on because they are not trained, adding that alarm came in with no response. Sena- Chaney and Bert May, Kentucky League what should be done regarding city clas- he did know of doctors who had taken tor Clark asked if the Helping Seniors of Cities; J. David Carter, AIA Kentucky; sification. Mr. Chaney replied that Rep- the Joseph Helm’s Course for M.D.’s in booklet was printed and available. Mr. Ned Sheehy and Bill O’Mara, Lexington- resentative Lee’s efforts will stimulate Berkley, California. Mr. Russell also said Winstead responded that there was a Fayette Urban-County Government; Tom some lively discussion among the mem- that Dr. Moureen Flannery in Berea was version available; however, these provi- Troth, Kentucky Association of Counties; bers of KLC. He said the League has no now practicing only acupuncture; how- sions have not been added. Greg Engleman, City of Erlanger; and Jeff formal proposal, but that classification ever, she was not using her credential as Chairwoman Jenkins asked if there Bechtold, Northern Kentucky Area Plan- should probably be done away with, and a physician to collect insurance. were further questions. Senator Leeper ning Commission. cities should be able to use their home The final item on the agenda was a asked Mr. Leatherman if he was aware of LRC Staff: Mark Mitchell, Joe Pinc- rule powers. report from Todd Leatherman, Executive rumors of gas prices rising in response to zewski-Lee, John Ryan, Dave Nicholas; Representative Simpson comment- Director of the Attorney General’s Office Hurricane Ike. Mr. Leatherman said they Jack Kennedy, and Cheryl Walters. ed that any kind of proposals should of Consumer Protection, and Kevin Win- were beginning to receive calls and were Upon the motion of Senator Harris, start with KLC.

THE KENTUCKY GENERAL ASSEMBLY 25 Chairman Thayer suggested that the judge to place an injunction against David Willmoth, City of Elizabethtown. system, he said local municipalities can KLC should come before the legislature the restaurant tax and to direct Eliza- Mayor Willmoth told the committee that receive their funds within 48 hours of with recommendations. bethtown to reclassify as a city of the the citizens should know what other payment. Chairman Thayer next recognized second class. The judge ruled she could regulations are out there for other cities Mr. Warden explained that the sys- Mr. Steve Atcher, Mr. Bill Bennett, and not enjoin the tax because she found before we have classification legislation. tem would be available for audit by lo- Mr. Matt Wyatt, citizens of the City of that only the General Assembly could He said cities and counties should have cal jurisdictions, and the realtors believe Elizabethtown. Mr. Bennett told the com- resolve a city classification matter. So, it flexibility. Mayor Willmoth stated that it would reduce tax collection costs for mittee that they were present because really is up to the General Assembly to the City of Elizabethtown sees the res- local jurisdictions and encourage filing the General Assembly failed to act upon fix the city classification system of this taurant tax as an economic tool to bring by more businesses. He said the cost of the requirements of Sections 156a and Commonwealth to prevent further oc- commerce to the community. creation and maintenance of this system 156b of the Constitution that the vot- currences of events like what happened The next order of business was could be offset by a file fee, saving in- ers of Kentucky approved in 1994, thus in Elizabethtown. discussion of occupational license fees. dependent business people tremendous leaving Section 156 intact and still the Mr. Wyatt asked the committee if Chairman Thayer recognized Mr. Ken paperwork and preparation expense. Mr. law of the land concerning city classifi- cities can just pick and choose between Warden, Chair of the Northern Kentucky Warden pointed out that the realtors are cation. He noted that it is the unpopular classifications, how can a citizen of any Association of Realtors. Mr. Warden currently working with Kenton County restaurant tax that the Elizabethtown city in the Commonwealth understand first provided the committee with a brief to improve that county’s system and it city government passed, under the guise under which laws their city government background and update on where the re- is the realtors’ hope that their efforts can of tourism, which has precipitated their must operate. He said the entire Com- altors are with this issue. He emphasized be expanded to the entire state. actions. monwealth is open to controversy and that realtors strongly believe in paying Representative Simpson asked if Mr. Bennett stated that their re- the abuse of municipal laws if this situ- all business and payroll taxes owed in a Kenton County’s system could be used search concerning the classification ation is allowed to continue. Mr. Wyatt timely and accurate manner, and are not as a model for other counties. Mr. War- laws of Kentucky have shown that Eliza- recommended that the General Assembly attempting to exempt themselves from den replied that it would be part of the bethtown, with a population of almost do two things: (1) amend KRS 81.032 what they lawfully owe. Mr. Warden said solution, but that it still goes back to do- 25,000, is masquerading as a city of the to require cities to reclassify immediately they do, however, feel that the current ing everything with paper. fourth class when in actuality, based on to the classification they belong to, per method of paying occupational taxes Mr. Jim Schack, President of the population, Elizabethtown is a city of Section 156 as of this date; and (2) com- could easily be improved. Northern Kentucky Association of Real- the second class. He said it is their hope plete the work mandated to the Ken- Mr. Warden told the committee that tors, told the committee that this sys- that the legislation of the Common- tucky General Assembly by Section 156a occupational license. tax issues impact tem is just not for realtors, but for small wealth holds Elizabethtown and other of the Kentucky Constitution by defining businesses throughout Kentucky. He businesses as well. He said the process cities across Kentucky accountable with a mandatory city classification system to noted that in Northern Kentucky, where needs to be simplified so more people regard to the classification laws. How- which every Kentucky city must adhere, the assessment of occupational licens- can be in compliance. ever, Mr. Bennett noted that this can- in order to eliminate any future city from ing taxes is predominant, it has become Representative Simpson suggested not be done until the General Assembly cherry-picking whatever classification it a very complex and difficult system for that the realtors work with the local of- finishes what it started, which would be wants. most businesses to comply with. Mr. ficials. crafting clear and concise classification Representative Riggs told the panel Warden pointed out that this system Representative McKee asked what laws based on population, and not on that they need to be in front of the city must be simplified, especially as more the opposition to the system was. Mr. the whims of local elected city officials council or run for city council and mayor. and more municipalities adopt this type Warden replied that people thought the and tourism boards. He said that under current law the leg- of system. He explained that the way money would go to Frankfort and never Mr. Atcher told the committee that islature cannot change Elizabethtown’s taxes are collected varies from city to city make it back home. three city councilmen and the mayor of classification unless the city council tells and county to county as well as varying Senator Carroll suggested that en- Elizabethtown were able to exploit mu- them too. tax rates, filing deadlines, and who is re- abling legislation be passed for coopera- nicipal restaurant tax law due to the in- Mr. Atcher suggested that the leg- quired to file. To further complicate the tive effort. completion of the work assigned to the islature change the classification law to matter, Mr. Warden said each municipal- Representative Keene stated that he General Assembly in 1994. He added make it clearer. ity has a different tax rate and reporting sees their frustration. He asked if Camp- that there is another ramification of the Senator Tori commended the panel form. He added that in many instances, bell County Judge/Executive Pendery unfinished work of Section 156a. By re- for its efforts and stated that city clas- the cost of having the tax forms prepared was in favor of the system. Mr. Warden fusing to reclassify Elizabethtown from sification is a very complex issue. She is more than the tax due. replied that they have met with Judge a city of the fourth class to a city of said she feels sure that a resolution can While there has been some progress Pendery, but it goes nowhere. the second class in accordance with its be made to solve this problem. Senator in their communities to work together The last item of business was re- population, Mr. Atcher pointed out that Tori agreed that there should be clear-cut and get each county use one form, Mr. view of Kentucky Administrative Regu- Elizabethtown’s mayor may continue to rules and guidelines for classification. Warden stressed that with 120 counties lations 815 KAR 7:070, relating to the run for an unlimited number of consecu- She suggested that the panel talk to the in Kentucky, this simply is not the so- Kentucky Certified Building Inspector tive terms of office, whereas as a mayor legislature when it has a proposal. lution. He mentioned that in Northern Program, and 815 KAR 7:125, relating a city of the second class city may serve Representative Simpson suggested Kentucky, many of their businesses work to the Kentucky Residential Code. Chair- only three consecutive terms. He added that the panel urges its leaders to revise across several city and county lines and man Thayer introduced Mr. Richard Mo- that Elizabethtown’s mayor is now in his KRS 81.032, which relates to the re- are required to file with each local gov- loney, Commissioner, Mr. George Mann, third consecutive term. quirements for reclassification. ernment where they conduct business. Deputy Commissioner, Division of Build- Mr. Atcher explained that on June Representative Henderson stated Mr. Warden told the committee that last ing Codes Enforcement, and Ms. Dawn 1, 2007, a group of Elizabethtown citi- that the legislature is reluctant to get in- year, the realtors proposed legislation Bellis, General Counsel, Department of zens petitioned the mayor and the city volved in local control. that would establish an online reporting Housing, Buildings and Construction. council to reclassify Elizabethtown prop- Representative Graham suggested system for all municipalities that would Representative Riggs recommended erly as a city of the second class. In spite that the panel work with their local of- allow businesses who conduct their that the panel consider language to be of this petition, he said the mayor and ficials. He said this issue should be re- business on a multi-jurisdictional basis included in the 815 KAR 7:070 to re- city council again refused to reclassify solved at the local level. to go to one website and complete their quire the appropriate surety bonding of properly. Mr. Atcher stated that in Oc- Senator Carroll asked each member return. He noted that there was some inspectors in order to protect the prop- tober of 2007, three city councilmen and of the panel if they would support giving misconception to that bill in that people erty owners. The panel agreed to review the mayor of Elizabethtown voted to im- cities of the second class the ability pass thought that all of the money would go the language recommended by Repre- pose a restaurant tax ordinance only au- a restaurant tax. When asked to provide to Frankfort and some of the munici- sentative Riggs. thorized for cities of the fourth and fifth a “yes” or “no” response, Mr. Atcher did palities would not receive the money to Representative Edmonds thanked classes in a city that has the population respond affirmative or negatively. Mr. which they were entitled. Mr. Warden the panel for all of the help they have to qualify as a city of the second class. Bennett replied that the voters should emphasized that centralized collection given him to in turn help his constitu- He pointed out that this action gener- be given the opportunity. Mr. Wyatt re- can accomplished by having the funds ents. ated a lawsuit against the city by a group plied, “No.” automatically distributed to the appro- Representative Denham asked if of Elizabethtown citizens. The suit asked Chairman Thayer recognized Mayor priate local bank accounts. Through this there was a change in the fee schedule

26 2008 Interim LEGISLATIVE RECORD listed in the building code. Mr. Mann for a fallen soldier, Second Lieutenant Mr. Craig stated that they currently have charges, abolishing chaplain positions, replied that there was no change and Howard C. “Cliff” Enoch Jr., who died four full-time employees. Mr. Craig added reducing non-nursing staff, and reducing that the fee schedule was already in the on March 19, 1945, when flying a World that the newly passed Post 9/11 GI Bill or eliminating travel in field operations. building code. War II combat mission over Germany. His created a sound base for funding state Gen. Beavers continued the pre- Regarding 815 KAR 7:125, Repre- remains were discovered and identified approving agencies in the future. sentation and discussed key operational sentative Riggs requested that the min- by the United States Army on April 19, Mr. Craig shared information about cost increases of up to $632,114 due to utes reflect that the fire protection com- 2008. Co-Chair Pullin asked the commit- the GI Bill and its impact on veterans and the rising cost of supplies, food, medica- munity is concerned that the regulation tee to observe a moment of silence to other eligible persons in Kentucky. He tions, utilities, and fleet. Gen. Beavers would hamper their efforts at providing honor his memory and also for all those stated that in 2007 veterans and other stated that the daycare services would for fire safety. who remain missing in action. eligible persons received $46,140,000 in cease September 19, 2008, for the fa- Chairman Thayer announced that Co-Chair Pullin recognized a special education and veteran’s rehabilitation cilities staff for the Thompson-Hood, the next meeting of the committee guest, Brigadier John Heltzel, the new benefits for the year. Mr. Craig added the Eastern Kentucky, and Western Ken- would be held on October 17th in Lou- Director of Emergency Management for Post 9/11 GI Bill payment of benefits will tucky Veterans Centers. He stated that isville at the Kentucky League of Cities’ Kentucky. begin for training pursued on or after Au- 21 employees will lose their positions annual convention. gust 1, 2009. He noted that individuals in daycare but KDVA is trying to place There being no further business, the Co-Chair Pullin introduced Keith will remain eligible for 15 years after dis- them within the agency as positions be- meeting was adjourned at 12:00 p.m. Kappes, Vice President for University charge. The new bill will also pay tuition come available. 14 employees have been Relations Institute at Morehead State and fees, monthly housing allowances, placed into positions already. INTERIM JOINT COMMITTEE University and asked him to tell the and a stipend for books and supplies. Gen. Beavers stated that the Veter- ON SENIORS, VETERANS, committee about the Eagle Monument Mr. Craig concluded that this bill not ans Service Organization (VSO) training MILITARY AFFAIRS, AND Veterans Memorial. He shared with the only addresses readjustment into civilian grant allocation for FY08 is $67,500 and PUBLIC PROTECTION committee what their institution is do- life, but also contains stipulations that $100,000 for FY09. Minutes of the 3rd Meeting ing to honor veterans and to encourage promote retention and reenlistment. Rep. Riggs asked Gen. Beavers about of the 2008 Interim them and their families to take advan- Administration of the new GI Bill will be the disparity of the number of veterans September 4, 2008 tage of higher education. He stated that outsourced. field representatives per region popula- The 3rd meeting of the Interim Joint the first project in their efforts is to hon- Co-Chair Pullin asked whether there tion. General Beavers stated that staffing Committee on Seniors, Veterans, Military or Captain William E. Barber, USMC, of was ever a VA education office in Ken- is based on access, travel distance, num- Affairs, and Public Protection was held Morgan County; by installing and dedi- tucky. Mr. Craig stated that there was an ber of claims in each region, and time for on Thursday, September 4, 2008, at 1:00 cating a marker for alumnus Captain Bar- Education Liaison Representative only the veteran to get to the field office or PM, in Room 169 of the Capitol Annex. ber on Veteran’s Day. Captain Barber’s and that the VA is consolidating offices veterans service organization. Gen. Bea- Representative Tanya Pullin, Chair, called name and achievements during WWII around the country, and Kentucky’s con- vers stated that veterans can file a claim the meeting to order, and the secretary and the Korean War will be displayed on tact is now in Nashville, TN. online; Gen. Beavers noted that there called the roll. the University’s Eagle Monument. Co-Chair Tori asked about the out- can be a $6,000 positive difference in an Present were: Co-Chair Pullin introduced Art sourcing of the administration of the award for a veteran who has an advocate Members: Senator Elizabeth Tori, Craig, Director of the State Approving new GI Bill. Mr. Craig stated that the with expertise filing claims and providing Co-Chair; Representative Tanya Pul- Agency for Veterans Education for the Education Service in the VA office and representation; which is crucial for the lin, Co-Chair; Senators Perry B. Clark, Kentucky Community Technical Col- their staff have started the process. Mr. veteran. Carroll Gibson, Denise Harper Angel, lege System (KCTCS). Mr. Craig shared Craig stated that it has to be before Au- Sen. Stine asked about the gover- Joey Pendleton, Jerry P. Rhoads, Dorsey KCTCS’s role in veterans’ education and gust 1, 2009. He added that the VA Cen- nor’s 4.5% cut reduction and if there Ridley, Dick Roeding, Katie Stine, and training. He stated that when the legis- tral Office staff claims it would take an was an explanation for it. Gen. Beavers Jack Westwood; Representatives Larry lature approved the creation of the com- additional 1000 staff to administer the stated that it shows their portion based Belcher, Tom Burch, Dwight D. Butler, munity and technical college system, it program and that is why they are out- on revenue shortfalls. Senator Stine Larry Clark, Tim Couch, Ron Crimm, Bill provided a vehicle and environment that sourcing it. Co-Chair Tori commented asked about dental services for veterans. Farmer, David Floyd, Jeff Greer, Jimmie allowed their agency to best fulfill their that she feels when the new GI Bill is put Gen. Beavers stated that the VA does not Lee, Tim Moore, Rick G. Nelson, Fred role and responsibilities in the approval in place and troops are informed about provide dental services. Co-chair Pullin Nesler, Steve Riggs, Tom Riner, Carl Rol- of programs eligible for GI Bill benefits. benefits, it will swell enrollment in the suggested that the Veteran’s Benefits lins II, Steven Rudy, Sal Santoro, Charles Mr. Craig stated that their missions KCTCS system. Officer might be aware of dental clinics Siler, Dottie Sims, and Ancel Smith. primary function is that of an approval Co-Chair Pullin called on General for veterans’ dental needs. Guests: Keith Kappes, Vice Presi- agency of programs eligible for GI edu- (Ret.) Les Beavers, Commissioner, Da- Rep. Nelson asked about the cut- dent for University Relations Institute; cation benefits. They provide technical vid Worley, and Marty Pinkston, Deputy ting of $100,000 for chaplain services Art Craig, Director, Kentucky Commu- assistance, evaluate application infor- Commissioner, Kentucky Department and if the KDVA is spending any mon- nity and Technical College System, Ken- mation, conduct inspection visits, and of Veterans’ Affairs (KDVA). Gen. Bea- ey on chaplain services. Gen. Beavers tucky Approving Agency for Veterans notify public and private schools and vers gave a presentation on the KDVA’s stated that the chaplains had not been Education; Larry Cook, Executive Vice training establishments of their approval budget and legislation passed during eliminated yet, but the $100,000 cut is President for Health Affairs, and Shan- or disapproval. Mr. Craig stated that in the 2008 Regular Session. Gen. Beavers programmed on the basis that the KDVA non Turner, Assistant Vice President for order for our veterans to receive educa- stated that the general fund in FY08 would eliminate the services and seek Health Affairs, University of Louisville. tional assistance benefits while in the Actual was $17,813.800 and the re- assistance from nearby pastors. LRC Staff: Erica Warren, CSA, Mu- training phase of their employer, the stricted funds for FY08 are $26,643.100. Sen. Roeding stated that Kentucky stapha Jammeh, Andrew Coyle, Clint agency approves on-the-job apprentice- He stated that the cost break down in has lost 74 soldiers in the Iraq and Af- Newman, and Rhonda Schierer. ship training in business and industry, the nursing homes is roughly 1/3 by the ghanistan Wars and wanted to know Co-Chair Pullin asked members to joint apprenticeship training councils, state general fund, 1/3 by the federal how many Kentucky soldiers were lost in take note of the minutes from the Au- and in the public sector. government, and 1/3 by the veterans Vietnam and in Korea. General Beavers gust 18, 2008 committee meeting. After Mr. Craig stated that state approv- themselves. Gen. Beavers stated that the stated Kentucky lost 1,100 in Vietnam a motion and a second, the minutes ap- ing agencies are both the face and gate- only other operational offset they get and 90,000 served in Korea but he was proved by a unanimous voice vote. keeper of the GI Bill at the state level. is a $300 plot interment allowance for unsure of the total of losses. Co-Chair Pullin mentioned that Ser- The U.S. Department of Veterans Affairs every veteran that is buried. The FY09 Rep. Floyd asked how long it took geant Keith Cooper was recently killed in Education Service no longer maintains a revised shows that there is a 6% cut for the KDVA to go through the process Iraq and there would be a resolution at presence in the Commonwealth of Ken- which amounts to over $1 million. Gen- of changing an administrative regulation. our next meeting. She asked members to tucky. Without the presence of Veterans eral Beavers gave a projected reduction Gen. Beavers stated it took approximate- keep his family in their prayers. Co-chair Affairs (VA) staff in Kentucky, the Ken- plan of $1,834,000 to include reductions ly 90 days. Rep. Floyd asked Gen. Beavers Pullin also mentioned that the National tucky Approving Agency for Veterans in personnel through attrition, reduction if they would like to keep the maximum Guard had been deployed to the hurri- provides services mandated in federal in printing, fleet, outreach, contracting charge for nursing home services speci- cane zone in Louisiana. legislation as well as value added servic- pharmacy services, eliminating daycare fied by regulation or prefer more flexible Co-Chair Pullin read a resolution es that benefit the veterans of Kentucky. for staff, increasing maximum resident language. Gen. Beavers stated it was

THE KENTUCKY GENERAL ASSEMBLY 27 only recently that they had to go to a the 724 employees includes all the nurs- 2008, for the Veterans Program Trust INTERIM JOINT COMMITTEE KAR because their legal authority to set ing home employees such as administra- Fund was included in their folders and is ON SENIORS, VETERANS, a rate was challenged. tive people, maintenance people, and the a part of this record. MILITARY AFFAIRS, AND David Worley discussed specifics nursing care employees. He added that a Mr. Pinkston asked Carlos Pugh, PUBLIC PROTECTION on the Kentucky veterans homes. Mr. lot of nursing homes contract out their a member of the board who represents Minutes of the 4th Meeting Worley stated that the Thompson-Hood maintenance such as grass cutting, food, the VFW, to talk about the Honor Flight, of the 2008 Interim Veterans Center in Wilmore, Kentucky cooking, etc. but the VA employs all of which is a new program for the veterans. October 2, 2008 is the largest veterans center, Western these. Rep. Nelson asked how many of Mr. Pugh stated that there have been two The 4th meeting of the Interim Joint Kentucky Veterans Center stays at full the 724 employees are caregivers. Mr. Honor Flights, in which WWII veterans Committee on Seniors, Veterans, Mili- capacity with a waiting list, and East- Worley stated that 68% of their employ- got to go to Washington, D.C. to see the tary Affairs, and Public Protection was ern Kentucky Veterans Center is at full ees are direct care nursing staff. WWII Monument. The cost is $250 for held on Thursday, October 2, 2008, at capacity with the exception of 2 rooms Mr. Worley moved forward with each WWII veteran which is covered by 1:00 PM, in Room 154 of the Capitol An- due to residents with contagious issues. the presentation to their Capital Proj- the trust fund. Along with the 40 WWII nex. Senator Elizabeth Tori, Chair, called Mr. Worley pointed out that the federal ects which included a 3-unit renovation veterans there are 15 caretakers that go the meeting to order, and the secretary government and the VA helped in get- and installing elevators to the Thomp- on the flight who pay their own way. called the roll. ting 2 new community-based outpa- son-Hood Veterans Center, expansion at He added that there are 33,000 WWII Present were: tient clinics opened in Owensboro and Western Kentucky Veterans Center, and veterans living in the state of Kentucky Members: Senator Elizabeth Tori, in Grayson County and they are working the new Central Kentucky Veterans Cen- today and expressed his desire to get as Co-Chair; Representative Tanya Pullin, on getting clinics in Berea, Maysville, and ter in the Hardin County area. Mr. Wor- many on the Honor Flight as possible. Co-Chair; Senators Perry B. Clark, Carroll Hopkinsville. ley ended with discussing the U of L Ro- Next representation from the Uni- Gibson, Denise Harper Angel, Vernie Mc- Mr. Worley stated that Kentucky bot Project and stated that Dr. Remmel versity of Louisville (UofL) gave an update Gaha, Joey Pendleton, Dick Roeding, Dan averages 510 residents in all 3 veterans and U of L have looked at the estimate of on the Veterans Nursing Homes Quality Seum, and Katie Stine; Representatives nursing homes on a daily basis. Cur- how much installing wireless access at Enhancement Program. Shannon Turner, Sheldon E. Baugh, Tom Burch, Dwight rently 282 residents receive free medica- nursing homes was going to cost COT. Assistant Vice President for Health Af- D. Butler, Mike Cherry, Larry Clark, Tim tion from the VA. He pointed out that That estimate was put as $40,000. He fairs stated that Dr. James Ramsey at Couch, Ron Crimm, Bill Farmer, David federal regulation was recently changed added that U of L is gathering data for a UofL is very excited to be working with Floyd, Jeff Greer, Jimmie Lee, Tim Moore, for any veteran with a 70% service con- comprehensive proposal. Co-chair Pullin the veterans nursing homes and working Rick G. Nelson, Fred Nesler, Steve Riggs, nected disability or higher to have their added that in the state budget there is a towards getting the new VA hospital in Tom Riner, Carl Rollins II, Steven Rudy, daily regular care paid by the VA. He veterans service improvement trust fund Louisville. Ms. Turner turned the presen- Sal Santoro, Charles Siler, Dottie Sims, added that effective July 1, 2008, the VA and that is an effort to help the VA to tation over to Dr. Larry Cook, Executive John Tilley, and Alecia Webb-Edgington. stopped charging those qualified for any keep monies found to remain for veter- Vice President for Health Affairs, UofL. Guests: Trey Grayson, Secretary of cost of care and the VA will retroactively ans services instead of going back into Dr. Cook stated that there is a great de- State; Major General Edward W. Tonini, pay for those residents eligible back to the general fund hopefully to assist with mand for the 3 current facilities and that Adjutant General, Kentucky Department March 22, 1987. some of the budget cuts the KDVA will each is currently at capacity with exten- of Military Affairs; Thomas L. Preston, Co-Chair Pullin asked Mr. Worley endure. Mr. Worley stated that it was sive waiting lists for services. He added Executive Director, Kentucky Office of if the residents eligible for free medicine greatly appreciated. that part of the reason that UofL is in- Homeland Security. from the VA can possibly be paid for by Gen. Beavers continued by brief- volved is to provide the veterans nurs- LRC Staff: Erica Warren, CSA, Mu- Medicare Part B or by private health in- ing the committee on the state veterans ing homes access to 24/7 specialty care stapha Jammeh, Andrew Coyle, and surance. Mr. Worley stated that Medi- cemeteries. He stated that the Kentucky such as neurology, geriatrics, and geri- Rhonda Schierer. care Part B only pays for some supplies Veterans Cemetery (KVC) West facility atric psychiatry. Use of the RP-7 robot Co-Chair Tori asked committee but not for medication. Co-Chair Pullin was opened in March, 2004, and has enables the highest quality of care to be members to review minutes from the asked if they bill private health insurance. 27,600 burial sites with a total of 914 delivered to even the most remote areas September committee meeting for ap- Mr. Worley said no, the VA pays and it interments, KVC Central has 6,100 buri- of the Commonwealth. The RP-7 robot proval, which were approved by unani- cannot bill the private health insurance al sites and there have been 546 inter- enables remote delivery of health care mous voice vote upon a motion and a due to the way the laws are set up for ments, and KVC North was dedicated and they have currently deployed a robot second. the nursing homes. Co-Chair Pullin stat- on August 22, 2008, and had a burial to 12 hospitals throughout Kentucky. He Co-Chair Tori welcomed members ed that if something can be changed in capacity of 5,736. He added that a KVC stated that the quality of interaction be- and called on Rep. Siler to read a resolu- the law to make it possible to bill private is being designed for the Northeast in tween the referring physician, patient, tion for a fallen soldier, Sergeant David health insurance for some of the medica- Greenup County and the master plan for and UofL specialists at the home base is Keith Cooper, who lost his life in the tions that the general fund is now paying this project will be submitted on October amazing. Dr. Cook explained that one of global war on terrorism. She asked the for, she would like to help work with Mr. 20, 2008. Gen. Beavers added that they the instrumental concerns for the veter- committee to stand in a moment of si- Worley to get that accomplished. Mr. are looking at land in Leslie County for ans nursing homes was the lack of access lence in honor of the fallen soldier. The Worley said that the VA bills a flat rate the 5th cemetery. Gen. Beavers spoke on to psychiatric care so they have added it. resolution was unanimously adopted by at the veteran’s ability to pay. the Burial Honors Program stating that Dr. Cook added that the next step will voice vote. Rep. Clark asked if the VA encour- in FY08 there were nearly 2000 burial be to work with the KDVA to determine Co-Chair Tori welcomed Secretary ages and assists families enrolling people honors. which wireless option best suits their of State, Trey Grayson, to the meeting. into the nursing homes. Mr. Worley said Marty Pinkston, Deputy Com- needs and that UofL has planned to ap- Sec. Grayson discussed voting programs they help with paperwork and whatever missioner, KDVA and Trust Fund board prove up to $50,000 of their grant to for military and overseas voters for the they need. He added that they simply member to spoke next on the Veterans provide the wireless capacity. Co-Chair 2008 general election. Sec. Grayson cannot bill their insurance company. Program Trust Fund. Mr. Pinkston is the Pullin thanked him for their generosity. briefed the committee on the Federal Sen. Westwood stated that last Secretary of the Board, which is com- Dr. Cook concluded his presentation and Voting Assistance Program (FVAP); the year they had a program called “Help Is posed of two statutorily named mem- said that the partnership between KDVA special federal voter registration and On the Way” where a bus went through bers, KDVA Commissioner and KDVA and UofL will make Kentucky the nation- request for absentee ballot form (FPCA the state of Kentucky offering help with Deputy Commissioner, and eight ap- al leader in providing quality health care form); the special federal write-in ab- pharmaceuticals for those who would pointees by the Governor. services to our veterans and that UofL is sentee ballot (FWAB) for federal races qualify. He asked Mr. Worley if the veter- Mr. Pinkston introduced 6 other pleased to help provide leading edge care only; and the 2006 general election data ans homes are taking advantage of what members of the board in attendance. Mr. to those who have served our nation. compiled from post-election reports. He that group offers. Mr. Worley stated that Pinkston gave several sources of income There being no other business, the discussed delivery options for absentee they had not because they get all their for the Veterans Program Trust Fund. meeting adjourned. ballots, including U.S. mail, secure fax- medications straight from the VA. He added that its purpose is to provide ing, or secure email. Secretary Grayson Rep. Nelson inquired about there services or assistance to veterans that concluded with a discussion on the state being 510 residents and 724 employees is not otherwise provided. Mr. Pinkston board of elections (SBE) website tools for and if the 724 employees included field told the committee that the Annual Re- military, their dependents, and overseas representatives. Mr. Worley stated that port from July1, 2007, through June 30, voters.

28 2008 Interim LEGISLATIVE RECORD Co-Chair Pullin asked about the Gen. Tonini gave an update on the ability, cooperative ventures with federal dent volunteer group of professionals for Voting in Honor of a Veteran Program Armed Forces Reserve Centers. The Pa- and state agencies and first responders, consideration and the KOHS is currently (VHVP) and what counties are not set ducah Airport site is 80% complete with critical infrastructure issues involving looking at revising the current numeri- up for the VHVP program. Sec. Grayson a final inspection scheduled for mid-De- the DHS, and multiple administrative cal system in place. Sen. McGaha asked stated that 4 counties were not partici- cember 2008; and the Bluegrass Army responsibilities including verification of how many FBI agents are stationed at pating in FVAP and he would send that Depot site is 20% complete with final equipment purchases and recipient ca- the Fusion Center. Mr. Preston stated information to committee members. He completion estimated for May 2009. pabilities for KOHS funded projects. Mr. that there is 1 FBI full-time Intelligence stated that the VHVP program was de- Gen. Tonini stated that under the Preston discussed the Buffer Zone Pro- Analyst. Mr. McGaha asked if the 19 em- signed 2 years ago and that it encour- KYNG Tuition Assistance Program; tu- tection Program and stated that it as- ployees at the Fusion Center included ages voting by reminding citizens that it ition is paid up to or equal to the in-state sesses certain critical infrastructure and both merit and non-merit positions. Mr. is a right soldiers fight to uphold. “full- or part-time” tuition rate in sup- key resource sites in KY. Preston said yes. Rep. Farmer asked how a county port of a member of the KYNG to attend Mr. Preston stated that the KOHS Co-Chair Tori thanked Mr. Preston clerk knows when they have an emailed an in-state public or private postsecond- only administers flow through grants for his presentation and with there be- absentee ballot request. Sec. Grayson ary educational institution. He added such as the Urban Areas Security Ini- ing no further business, the meeting ad- stated that the county clerks offices are that the FY 09 budget is $4,744,500 tiative, Emergency Management Perfor- journed. asked to go online several times a day to with $2,738,051 obligated to date which mance Grant, and Metropolitan Medical look for requests. includes only the fall semester. He stated Response System. He stated that on one Sen. Gibson asked how long absen- that they could possibly be out of money time only grants, the largest part of the tee ballots are kept at the county clerk’s for FY 10. Public Safety Interoperable Communi- office. Sec. Grayson stated that they are Gen. Tonini stated that the Blue- cations goes to Kentucky State Police INTERIM JOINT COMMITTEE kept for about 2 years. grass Challenge program was established for badly needed communication tow- ON STATE GOVERNMENT Rep. Rudy expressed his concern in 1999 and has a wonderful track record ers and related equipment. Mr. Preston Minutes of the 2nd Meeting with the FWAB as voters may not realize for getting people their GED’s and get- stated that KOHS received 244 applica- of the 2008 Interim that they are denied their vote for state ting them into productive service. tions from 95 counties which totaled September 24, 2008 and local races. Sec. Grayson stated that Rep. Webb-Edgington asked about nearly $66 million and KOHS was able The second meeting of the Interim a write-in should be viewed as a last re- the current FEMA relief for the recent to provide partial funding to 84 counties. Joint Committee on State Government sort and it is not extended to state and windstorm in Kentucky and the current Co-Chair Pullin asked Mr. Preston if she was held on Wednesday, September 24, local races for concerns of voter fraud. status. John Heltzel, Director of Emer- could get a list of the grants awarded by 2008, at 1:00 PM, in Room 154 of the Co-Chair Tori called on Major Gen- gency Management, stated they closed KOHS for the past year by county. Mr. Capitol Annex. Senator Damon Thayer, eral Edward W. Tonini and Col. (Ret.) out with FEMA and have documented Preston stated that he would get the list Co-chair, called the meeting to order, Mike Jones, Executive Director, Kentucky with them $17.1 million in damages. to her. and the secretary called the roll. Department of Military Affairs to give an He added that all counties that declared Rep. Webb-Edgington expressed Present were: update on the KY Department of Mili- emergencies met the requirement ex- her concern and reservation in regards Members: Senator Damon Thayer, tary Affairs. Gen. Tonini also introduced cept for Hardin and LaRue. Rep. Webb- to the fact that there were no homeland Co-Chair; Representative Mike Cherry, Maj. Gen. (Ret.) Steve Collins, Direc- Edgington asked when uniform soldiers dollars awarded to state agencies as we Co-Chair; Senators Walter Blevins, Jr., tor of the Bluegrass Station Effort, Rick were added to assist with the program currently have 4 areas that are currently Julian Carroll, Carroll Gibson, Dan Kelly, Flynn, Budget Analyst, Military Affairs, and who coordinated them in their ef- certified by the FBI which have bomb and Ed Worley; Representatives Eddie and John Heltzel, Director of Emergency forts. Mr. Heltzel stated that this year squad authority in Louisville, Lexington, Ballard, Sheldon Baugh, Johnny Bell, Management in Kentucky. Gen. Tonini was the first time and they felt training Owensboro, and the KY State Police and Dwight Butler, Tim Couch, Will Coursey, stated that there has been a 92% reduc- guardsmen would be the fastest way to she felt it would benefit our state to con- Tim Firkins, Joseph Fischer, Danny Ford, tion of violence in Iraq and spoke on the assist people. The guardsmen assisted in tinue to fund these instead of new agen- Jim Glenn, Derrick Graham, Mike Har- bravery and dedication of all troops and paperwork for damage assessment and cies looking to build additional bomb mon, Melvin Henley, Jimmy Higdon, specifically the 450 KY soldiers of the they worked as guard teams with the lo- squads. Mr. Preston stated they will not Jimmie Lee, Mary Lou Marzian, Lonnie 201st who serve in Afghanistan to clear cal emergency manager in conjunction make any awards unless a new agency Napier, Sannie Overly, Tanya Pullin, Tom roads of landmines. He added that out of with the County Judge Executive. is certified by the FBI and at this point Riner, Carl Rollins II, John Will Stacy, 450, 38 soldiers have received the Purple Sen. Roeding asked about the state there has been no further certification. Greg Stumbo, Tommy Thompson, John Heart awards. threshold for FEMA relief. Mr. Heltzel Sen. Roeding asked about the grant Tilley, Jim Wayne, Alecia Webb-Edging- Gen. Tonini gave a PowerPoint pre- stated that the state threshold for public process and stated that in the past first ton. sentation on the Kentucky Guard in ac- assistance in Kentucky is $5,011,000. responders could only request com- Guests: Sandy Gruzesky, Ken- tion in Iraq and Afghanistan; hurricane Co-Chair Tori asked how many munications equipment. He asked if tucky Division of Water; Jeff Eger and support in Gustav and Ike; and current guardsmen have lost their lives in road- this focus has changed and will there Jack Bender, Sanitation District No. 1 of Kentucky National Guard (KYNG) per- side bombs. Gen. Tonini stated that be other things that can be requested Northern Kentucky; Bob Miller and John sonnel deployed. there have been 16 national guardsmen besides that type of equipment. Mr. Cole, city of Ryland Heights, KY; Har- Gen. Tonini then spoke on the KY that have died in combat in Afghanistan Preston stated that every local govern- old Parks, city of Fairview, KY; Timothy Yellow Ribbon Program and gave specifics and Iraq. He stated that he did not know ment and local agency has a list of what Longmeyer, Fred Nelson, and Joe Cowles of the before, during, and after program how many have died specifically from is available and what can be requested - Personnel Cabinet. procedures and trainings for soldiers and roadside bombs but would provide that from the KOHS and in addition to that LRC Staff: Joyce Crofts, Brad Gross, their families. Gen. Tonini stated that al- information. they are going to increase the number of Alisha Miller, Karen Powell, Greg Woos- though they rely heavily on volunteers Co-Chair Tori introduced Thomas seminars to help improve grant applica- ley, and Peggy Sciantarelli. to run the program they now have full- L. Preston, Executive Director, KY Of- tions and grant requests. He stated that Discussion of storm water fees was time federally paid individuals who man- fice of Homeland Security (KOHS) and there is a wide range of items that can be first on the agenda. Senator Thayer said age the program. asked him to give an update on KOHS. purchased. Sen. Roeding asked how the he represents two unincorporated cities Gen. Tonini briefed the committee Mr. Preston gave a PowerPoint presen- Fusion Center is being staffed and if Mr. in northern Kentucky (Ryland Heights on the Military Family Assistance Trust tation on KOHS missions. Mr. Preston Preston could explain the partnership and Fairview in Kenton County) that are Fund; stating that it is a safety net of last discussed the responsibilities to include: between the Fusion Center staff and the required to pay storm water fees—some- resort for Kentucky’s military families. counter-terrorism assessments and pre- FBI. Mr. Preston stated that the Fusion times referred to as a “rain tax”—with- He stated that the balance of the Trust paredness, grant management, public in- Center has Transportation Department out receiving the services that other, Fund as of June 30, 2008, was $520,660 formation/education, intelligence analy- employees monitoring very specific ar- more suburban areas receive. He went and that the Board’s next meeting is sis support, community readiness, and eas using 450 cameras on highways and on to say that he introduced a bill in the scheduled for October 15th. first responder training and support. Mr. bridges. 2008 regular session (SB 229) to exempt Gen. Tonini stated that the North- Preston stated that other directions and Sen. McGaha asked what method persons in areas not served by a sani- ern Kentucky Readiness Center site has tasks of the KOHS included: fusion center the KOHS is using to determine grant tary system from the storm water fees been selected in Boone County and con- operations and coordination with essen- funding. Mr. Preston stated that all charged by that system. The legislation struction is to begin October 1, 2010. tial partners, communications interoper- grants are reviewed first by an indepen- generated some controversy, and he

THE KENTUCKY GENERAL ASSEMBLY 29 promised those on both sides an oppor- exempted at a later date. Mayor Parks program. Cities have no choice but to not receive storm water service. Mr. Eger tunity to discuss the issue with the State said he has evidence that residents of implement these programs throughout said he does not believe they can be ex- Government Committee. Fairview who refused or were unable their jurisdictional area and then find the empted but said, too, that he is also not The first speakers were Bob Miller, to pay the fee have been threatened means to fund them. sure that the District is not providing Mayor of Ryland Heights (Kenton Coun- with having their water service shut off, Mr. Bender said that there will al- them a service. He added that although ty); John Cole, city commissioner, Ryland though this has been denied by Mr. Eger. ways be people who believe they are Fairview has challenged whether it has Heights; and Harold Parks, Mayor of Fair- He contended that another Fairview resi- utilizing less of a service than someone an obligation, its residents do reside in view, (Kenton County). Mayor Miller and dent was threatened with having a lien else. He went on to say that part of the the service area. Mr. Cole provided the Committee with a placed on his property. He said he appre- problem with respect to the fee systems Representative Harmon asked about packet of 2003 correspondence contain- ciates being heard today and hopes that is how to differentiate—how to establish the fee structure relative to roads and ing letters from James D. Giattina, U. S. Senator Thayer’s legislation will again be who benefits most from a construction driveways, for example, with pervious Environmental Protection Agency (EPA); considered. permit program in one part of a coun- rather than impervious surfaces. Mr. Darren Eyre, Center Line Engineering & The next speakers were Jeff Eger, ty that improves water quality there, if Eger said that nonresidential customers Surveying; John Lyons, Sanitation Dis- General Manager of Sanitation District that is an area where more construction implementing such best practices can trict No. 1; U. S. Senator Jim Bunning; No. 1, and Jack Bender, the District’s takes place. There is some unfairness in apply for water quantity or water quality and several items of correspondence outside counsel from the firm of Greene- this system, but municipalities need the credits. In certain instances they might generated by Mayor Miller. baum Doll & McDonald. They provided flexibility to comply with the unfunded also be eligible for potential grant fund- Mayor Miller said that he and Mr. the Committee with copies of Mr. Bend- mandates of these programs and apply ing from the District. Cole are appearing today in order to er’s February 2008 conference presenta- the programs across industrial, commer- Representative Henley asked to seek justice for the residents of Ryland tion entitled “Storm Water Planning and cial, residential, and even rural areas as whom fees collected by the District are Heights, who feel that the “rain tax” Enforcement.” required by EPA. being expended, and for what purpose. is being unfairly imposed on them. Mr. By way of background, Mr. Eger ex- Senator Thayer commented on Mr. Eger said those funds are used for im- Cole read a prepared statement explain- plained that Sanitation District No. 1 is the randomness of the compliance area provement of the storm water infrastruc- ing the city’s position that it should not a special district chartered under KRS boundaries and questioned how they ture in northern Kentucky. Representa- be subject to the fees, based on the fact Chapter 220. He went on to say that in were decided. Mr. Eger said that could be tive Henley asked whether the District that the city does not own or operate a 1994 the statute was amended to allow answered better by the Energy and Envi- would have to pay if the Transportation municipal separate storm sewer (MS4) all local governments in northern Ken- ronment Cabinet but that he believes the Cabinet or a county billed the District for system. He noted that the city has been tucky to turn over their sanitary sewer boundaries were based on EPA guideline maintenance of roadside ditches within seeking exemption since 2003. In sum- systems to the District, which all did standards of population density. He said the service area. Mr. Eger said no—that mary, he said that Sanitation District No. except the city of Florence. In 1998, the the boundaries were drawn according to the ditches are not the responsibility 1 contends that ditches alongside the local governments asked the General As- watersheds, so that all of the waters in- of the District, that the Transportation city’s state and county roads are consid- sembly to amend Chapter 220 to allow side the boundaries flow within the af- Cabinet has its own permit to comply ered storm water systems. Neither Mark the Sanitation District to take over re- fected populated area. He then reviewed with, and that the District does not re- Mitchell of the EPA nor Johnny Gonzales sponsibility for the storm water systems PowerPoint slides showing maps of the ceive any money from the Transportation of the Kentucky Department of Water throughout northern Kentucky. As the northern Kentucky storm water permit Cabinet. could produce paperwork in which the District was implementing the takeover compliance area, watersheds, and desig- Representative Webb-Edgington EPA stated that the ditch lines are or of ownership and maintenance, the EPA nated storm water outfalls, plus relevant asked whether state law or regulation are not considered storm water drains. promulgated the Phase II regulations and aerial and land photos. would allow an exemption for churches Ryland Heights is a sixth class city with named all three counties and all of the Mr. Eger noted that the sanitation or schools. Mr. Bender said that the regu- a population of approximately 800. Its local governments in northern Kentucky, districts have recently negotiated a con- lations would not exempt them from the residents are not hooked up to a storm with the exception of Walton, as hav- sent decree, which is very unique, that program requirements within an MS4 sewer system but are paying the same ing to comply with the unfunded federal employs a comprehensive, watershed- area. He said that any facility—whether fees as those in the large cities who ac- mandate to develop a storm water Phase based approach. He went on to say that state, federal, or a church—is required tually receive services in return for their II program. Sanitation District No. 1 does in the northern Kentucky regional Phase to comply. The issue of whether or not money. The relief that Ryland Heights is not own any storm sewer system but II program there are more than 8,000 a church or somebody else would be ex- seeking is that either the Division of Wa- does own the sanitary sewage systems, storm water outfalls which the District is empt from the storm water fee is strictly ter should redraw the boundaries of the both separate and combined, in the river required to monitor on a regular basis— a local government issue. Responding storm water service area to exclude Ry- city. under the KPDES (Kentucky Pollutant to another question from Representa- land Heights, or that legislation should Mr. Bender discussed storm water Discharge Elimination System) permit— tive Webb-Edgington, he said that the be passed in 2009 to exempt the city’s planning and enforcement in general, and that the storm water outfalls are definition of “municipal separate storm residents from paying the fees. noting that the requirements for storm well outside the sanitary sewer areas. He sewer system” includes road ditches and Mayor Parks said that the city of water control that are being imposed on explained that an outfall is an area where culverts and not just traditional under- Fairview had never signed an agreement municipalities in Kentucky are growing a storm water system is discharging into ground storm sewers. He explained that with Sanitation District No. 1 and does and evolving. He went on to say that a culvert, stream, creek, or pond. storm water might fall in Ft. Wright but not have any storm sewer drains. He re- Kentucky has approximately 100 Phase Senator Thayer asked Mr. Eger to end up in Covington, for example. For ferred to a quarterly bill of $231.99 in II communities and two Phase I commu- comment on the fees that are being that reason, the District is charged with storm water fees that had been received nities—Louisville and Lexington—that charged to persons living in unincorpo- managing the storm water. He added by a small church in Fairview and stressed are subject to EPA storm water program rated areas that do not receive services that it is difficult for one municipality that it is a hardship for Fairview’s citi- requirements. The ultimate goal of these from the sanitary sewer system. Mr. Eger to manage the storm water coming from zens—many of whom are elderly—to MS4 programs is to require municipalities said it is his responsibility to implement another municipality, whether coming pay the fees, particularly when no storm to implement best management prac- the program according to the established from a ditch, creek, or a pipe system. sewer services are received in return. He tices. The goal of the best management boundaries and that the law requires him Representative Rollins asked wheth- showed the Committee a small leaflet, practices is to ensure that storm water to charge an equal, level fee throughout er the District would consider funding a “Three Steps to Cleaner Water,” and said runoff coming from urban areas through the service area. He added that construc- proposal from a county government for the city was told that their payments are the MS4 systems—which can include tion oversight is also the District’s re- an improvement that would prevent used to fund this educational material, road ditches, retention basins, and cul- sponsibility. Mr. Eger explained that the creek erosion. Mr. Eger said that the is- even though the city already sends out verts—meets stringent in-stream water residential fee is the same for everyone sue is complicated. He went on to say this type of literature. quality standards. The trend across the in the service area—about $4.12/month. that when the Sanitation District became Mayor Miller noted that Ryland country today is that the requirements The nonresidential fee is a factor of every the regional storm water utility in 1998, Heights had originally signed an agree- imposed under the MS4 programs will 2,600 square feet of impervious areas as it began mapping the entire storm ment under threat of being fined ap- become more and more stringent. All such as roof space, driveways, and park- water system in northern Kentucky, the proximately $25,000. He said the city Phase I and Phase II MS4 communities ing lots. Senator Thayer asked Mr. Eger unfunded mandates came down from felt it had no recourse but to comply, but are required to implement a comprehen- whether it is his opinion that the District EPA to require the District to develop with the option of opting out or being sive storm water quality management cannot voluntarily exempt areas that do programs for public education and in-

30 2008 Interim LEGISLATIVE RECORD volvement, illicit discharge detection and asked whether other states allow a tier- and the Lexington-Fayette MS4 program ies without storm water systems would elimination, construction management, ing of fees for households based on age and consent decree. (A copy of Ms. Gru- be charged lesser fees than those in the and pollution prevention (good house- of the residence—adding that this idea zesky’s presentation is on file with LRC’s larger urban areas. Discussion conclud- keeping). The District had to develop and might be worth exploring. Mr. Eger said State Government Committee staff.) ed, and Senator Thayer thanked all the is now implementing a program for all of he is not aware of any. He went on to say Ms. Gruzesky explained that the speakers. the municipalities, including the three that the District uses GIS imaging system storm water fees are funding the fol- Discussion of the 2009 Kentucky county governments. Funds collected mapping to determine impervious areas. lowing activities required of Sanitation Employees Health Plan (KEHP) was next are used for implementation of that pro- To do it for each residence would be very District No. 1: public education and out- on the agenda. Guest speakers from the gram. Under an interlocal agreement costly, so the decision was to charge all reach; public involvement and participa- Personnel Cabinet were Tim Longmeyer, with each local government, the District households the same fee of $4.12, which tion; control of construction storm wa- Deputy Secretary; Fred Nelson, Commis- agreed to fund—up to 50 percent—any is within the national average. A recent ter runoff and illicit discharge, including sioner of the Department of Employee upgrade of the storm water systems un- national study by the engineering firm inspection and enforcement; post-con- Insurance; and Joe Cowles, General til the District assumed ownership. The Black & Veatch indicates that storm wa- struction storm water management; and Counsel for the Department of Employee District is now in the process of revising ter fees range from 70 cents/house to pollution prevention. Insurance. The meeting materials in- the interlocal agreement and by this time $70.00/house per month. Mr. Eger also Representative Webb-Edgington cluded the Cabinet’s “Benefits Selection next year should have full ownership re- noted that, for the most part, the im- asked about the quality of water in urban Guide”; copies of Mr. Longmeyer’s and sponsibility of the storm water system. paired streams in the District’s service areas compared to less developed areas Mr. Nelson’s PowerPoint presentation, When finalized, the District will imple- area are in rural areas. of the state where there are straight lines “Briefing on 2009 Rates and Benefits”; ment the necessary controls, funded en- Representative Wayne said that in running into streams. Ms. Gruzesky said and a letter to the General Assembly tirely by the storm water fees, to remedy the past he has introduced legislation that in parts of the state where straight from Crystal Pryor, the Cabinet’s Chief situations such as creek erosion. several times to permit local governments pipes are an issue—particularly eastern of Legislative Affairs. Representative Rollins asked wheth- to impose impact fees on new develop- Kentucky—waters are also impaired. She Mr. Longmeyer discussed the chal- er the District works with city and coun- ment, and each time the home builders said that urban storm water involves a lenges faced by the Cabinet when devel- ty governments as they develop regula- and realtors lobbied to defeat the legis- different kind of pollution but that there oping the health plan for 2009. He said tions to control storm water. Mr. Eger lation. He said he believes this type of is impairment for a variety of reasons that health plan inflation continues. The said yes—that the District is also work- legislation would be a partial remedy, statewide. Representative Webb-Edg- 2008 employee contributions were arti- ing with planning and zoning agencies because any new residential or commer- ington asked whether there are any taxes ficially lowered, which created a shortfall to revise rules and regulations for sub- cial development would then be required or fees, other than for enforcement, that in overall trust funds that could be used divisions and commercial developments. by the developer to pay to the District a are imposed on people in areas that run in developing the new plan year benefits. The District also has the ability to imple- certain amount of up-front money. That straight pipes. Ms. Gruzesky said she is The benefits had not changed in years, ment its own regulations relating to de- would, in turn, keep fees lower for ex- not aware of any. and the highly used plans lacked diver- tention. From the audience, Mayor Parks isting homeowners and businesses. Mr. Representative Henley asked wheth- sity. About 98 percent of participants said that Fairview officials have asked the Eger said that the District charges a “ca- er he should contact the Division of Wa- chose two of the four plans that were District what the city should do in or- pacity connection” fee for new develop- ter when he receives a complaint about offered. This created consumer compla- der to be relieved of the fees but that the ment and that this fee has increased by septic system runoff that cannot be ad- cency, and most were not really aware of District has not given the city any direc- 50 percent since 1994. He said this is, in dressed by the local health department. their benefits or whether they were en- tion. Mr. Eger pointed out that granting essence, a kind of impact fee. Ms. Gruzesky said yes—that the Division rolled in a plan that best met their needs. Ryland Heights or Fairview an exemption Representative Fischer asked what receives that type of calls frequently and There was no meaningful wellness plan, may not exempt them from the federal percentage of the storm water fees are will send an inspector to investigate and though not for lack of trying. Many well- requirement to implement the Phase II derived from areas not served by storm follow up. Representative Henley asked ness efforts had been made, but there program. He went on to say that the Dis- sewers. Mr. Eger said he believes it is whether MS4 systems are responsible for was little utilization. There was also trict’s agreement with Ryland Heights is about two or three percent of the annual post-construction management of pipes little utilization of the HRA (health re- to implement the program on the city’s fee received from the nonsanitary sewer and ditches, for example. Ms. Gruzesky imbursement account) plan—otherwise behalf. If nonsanitary customers were to customers. Representative Fischer said, said yes. She said that sedimentation known a consumer-driven plan—which be exempted from the fee, the interlo- then, that if those areas were exempt structures occasionally must be cleaned many companies, corporate entities, and cal agreement says that if the District from the fees, it would be necessary to out in order to remain effective. Repre- states are moving toward in order to in- cannot charge the fee to implement the raise other customers’ fees by that same sentative Henley asked whether commu- crease the level of consumer awareness. program, the local government would percentage. Mr. Eger said that is correct. nities could submit a bill for cleanup if Mr. Longmeyer said that those chal- then be responsible unless released from Senator Thayer thanked Mr. Eger and a road ditch maintained by a county or lenges were met with certain principles compliance with the Phase II EPA regu- Mr. Bender. The next speaker was Sandy the state becomes full of sediment. Ms. in mind. The goal was to provide uniform lations through an agreement with the Gruzesky, Director of the Division of Wa- Gruzesky said that the state of Kentucky coverage across the Commonwealth; en- Kentucky Division of Water ter, Energy and Environment Cabinet. Ms. has its own permit and is required to do courage wellness and healthy lifestyles; Representative Stumbo asked Gruzesky provided the Committee with a the cleanup in urbanized areas for state- provide preventive care at little or no whether the statute allows latitude to 3-page handout entitled “Population for owned roads. Representative Henley said cost; improve chronic disease care; edu- distinguish between older residences Storm Water Entities as Defined by the it seems, then, that there is a duplication cate members about plans appropriate and those established after land devel- 2000 Census” [Source: Federal Register]. of services and that fees should be re- to their health needs; provide plan alter- opment led to a problem with storm It lists the Kentucky communities identi- duced for the small unincorporated cities natives accessible to retirees; provide a water runoff. He said it seems there fied by the federal government that are that do not operate a storm water sys- quality PPO option; provide an improved should be equity involved in levying the required to be covered under the Phase II tem, since all of their infrastructure is al- subsidy for family and dependent cover- fees—for example, charge a higher fee for storm water program. ready being maintained by other parties age; and provide plans with unlimited the post-development households and Ms. Gruzesky gave a PowerPoint that pay for the maintenance. Ms. Gru- lifetime maximums. He said that due to exempt the older households. Mr. Eger presentation entitled “Storm Water MS4 zesky pointed out that the storm water the great effort of the Department of Em- said that would not be allowed under Permitting Issues.” She noted that Phase is coming from private property. She said ployee Insurance—and after many meet- the statute. He pointed out that it is not II of the program went into effect in 2003 the Transportation Cabinet will clean out ings with vendors, experts, stakeholders, always development that causes impair- and Phase I in 1992. She spoke at length the ditches but that the material in the employees, the Group Health Insurance ment. It could be the result of bad septic on the following topics: history of the ditches came from parking lots and other Board, and the best practices Committee systems, agricultural runoff, animal pol- storm water program; purpose of storm impervious areas. chaired by Secretary Jonathan Miller—he lution, etc. Representative Stumbo noted water regulation; impervious cover; wa- Representative Higdon said that ev- believes those challenges have been met that the Sanitation District was created tershed issues; storm water permits; def- eryone agrees on the need for clean wa- and the guiding principles have been because northern Kentucky was a high inition of MS4 systems; MS4 storm water ter and the other goals of the Clean Wa- maintained. development area. He said it seems to categories; northern Kentucky impaired ter Act. He disagreed with the “one size Mr. Nelson reviewed details of the him that commercial developers should rivers/streams/lakes; minimum controls fits all” approach taken by the sanitation four plans being offered for 2009: Com- bear more responsibility because, tech- for Phase II storm water programs; time- district and suggested looking for a solu- monwealth Standard PPO, Common- nically, they created the situation. He line for Phase II MS4 permit reissuance; tion whereby the folks in the small cit- wealth Capitol Choice, Commonwealth

THE KENTUCKY GENERAL ASSEMBLY 31 Optimum PPO, and Commonwealth for single coverage. The single cover- will be sent to the insurance coordina- quit or who complete a smoking session Maximum Choice. He discussed the new age monthly premium for the Optimum tors for agencies and school systems so program to qualify for the nonsmoker rate Capitol Choice plan, which is a “hybrid” PPO plan will be only $5 more than the that they can contact those persons and during the plan year and not just at open plan that combines features of a mod- premium for 2008’s Commonwealth assist them with enrollment. Mr. Long- enrollment. The Cabinet is also looking ern, consumer-driven plan with features Premier. Premiums for comparable de- meyer said that the Cabinet is sending at more aggressive methods such as po- of a traditional PPO plan. He went on to pendent coverage will increase by five out letters and e-mails to employees and tential prosecution or requiring affidavits explain that the plan features a single percent or less, compared to an increase will try to be as liberal as possible in ad- but hopes that the option to change co-payment of $100 for all in-network of six percent for dependent coverage in ministering open enrollment. smoker status during the plan year will hospitalizations. Another unique feature 2008. Concluding his presentation, Mr. Senator Carroll said he thinks the encourage people to get involved in the is a $500 up-front benefit allowance per Nelson said that the 2008 premium sur- Cabinet has done an excellent job. He smoking cessation program. family member, which would provide charge for smokers is about $16 for sin- suggested that they consider having an Representative Graham said he 100 percent coverage for certain in-net- gle coverage, or $32 for dependent cov- automatic “default enrollment” for em- hopes the Department will emphasize work services before payment of the de- erage; the 2009 surcharge will increase ployees who are currently in the health in its publicity that the HRA plan is still ductible. to about $21 for single coverage, or $42 plan but fail to enroll for 2009. Mr. Nel- being offered and that the unused funds Mr. Nelson went on to explain that for dependent coverage. son said that they have considered that can be rolled over from one plan year to the new Commonwealth Optimum PPO Representative Bell, citing personal but that it will not be possible under the the next. Mr. Nelson noted that the HRA plan merges features of the 2008 Com- experience, expressed dissatisfaction new computer system KHRIS (Kentucky and its rollover benefit are discussed in monwealth Enhanced and Common- with the difficult process for obtain- Human Resource Information System) the “Benefits Selection Guide.” Subse- wealth Premier plans. Commonwealth ing KEHP approval to cover certain pre- that goes into effect January 1. Senator quent discussion touched on the Octo- Maximum Choice is a consumer-driven scribed medications in lieu of generic or Carroll said that default paper enroll- ber benefit fairs and the 90-day prescrip- plan that includes a health reimburse- alternative drugs. He said he and a lot ment perhaps could be completed by tion mail-order benefit. ment account (HRA) and will offer the of his constituents feel that the current insurance coordinators for employees Representative Cherry asked the same benefits as 2008’s Commonwealth policy is not working. Mr. Nelson said who neglect to enroll or respond when amount of the employer contribution for Select plan. The Commonwealth Standard that generally the plan follows a doctor’s notified that they are not enrolled. Mr. 2009 for employees who waive coverage. PPO plan will offer the same benefits as recommendation, although prior autho- Nelson said that they will give some Mr. Longmeyer said it will be $175—the the 2008 Commonwealth Essential plan. rization and step therapy programs may thought to that idea. same as 2008. Mr. Nelson pointed out that 40 percent require an individual to first substitute Representative Stacy asked how The health insurance discussion of KEHP members have annual phar- a generic drug. Representative Bell said the amount of the smoker surcharge is concluded and Senator Thayer thanked macy and medical expenses of $1,000 or he understands that. He added that his determined. Mr. Longmeyer said that the speakers. He then read the subcom- less. Commonwealth Maximum Choice, doctor submitted the required informa- there is a limitation of up to 20 percent mittee report for the Task Force on Elec- which includes $1,000 in an HRA ac- tion to get his prescription approved but of overall premium, according to HIPPA tions, Constitutional Amendments, and count for single coverage, would totally that it was a fruitless effort. Mr. Nelson (Health Insurance Portability and Ac- Intergovernmental Affairs, which met on cover costs for members choosing single said he believes that in most situations countability Act) regulation. He went on September 23. The report was approved coverage under that plan. Twenty-eight the pharmacy benefit manager will agree to say that 14 percent of members cur- without objection, upon motion by Rep- percent of plan members have annual to what a doctor prescribes if he can rently report that they smoke, while it is resentative Firkins. medical and pharmacy expenses of $500 justify its use. He said the Department known that the actual number of smok- Business concluded, and the meet- or less; the new Capitol Choice hybrid would be happy to assist anyone who is ers in the Commonwealth is closer to 28 ing was adjourned at 3:25 p.m. plan would be ideal for them. having a problem in this regard, and Mr. or 30 percent. It is apparent that quite a Mr. Nelson said that some pharma- Longmeyer said that they will follow up few are not reporting that they smoke. INTERIM JOINT COMMITTEE cy co-payments will increase slightly in with Representative Bell. The surcharge is an important deterrent ON STATE GOVERNMENT 2009. He noted that at the beginning of Senator Thayer acknowledged Per- and encourages people to enter smoking Task Force on Elections, 2006, the member cost share for overall sonnel Cabinet staffer Charles Wells in cessation programs. The 2009 surcharge Constitutional Amendments, and pharmacy benefits was 19 percent, and the audience and advised the Committee reflects an increase of 25 percent, which Intergovernmental Affairs KEHP paid 81 percent. Since 2006, be- that Mr. Wells is a designated contact represents an overall increase of about Minutes of the 1st Meeting cause of medical and pharmacy inflation, person to help members of the General 33 since the surcharge was first put in of the 2008 Interim the plan has been picking up a higher Assembly who have questions about the place a few years ago. Kentucky is one September 23, 2008 percentage of that cost. The 2009 adjust- health plan. of only about a half dozen states that The 1st meeting of the Task Force ment in pharmacy co-pays returns mem- Representative Pullin commended have a smoking surcharge. The 2009 $42 on Elections, Constitutional Amend- bers to the 19 percent share that they the Cabinet for its hard work in devel- smoker surcharge for dependent cover- ments, and Intergovernmental Affairs were paying at the beginning of 2006. Mr. oping the health plan. She asked what age is believed to be the highest in the of the Interim Joint Committee on State Nelson also briefly touched on the phar- can be done to help persons who believe nation. The goal was to increase it in Government was held on Tuesday, Sep- macy mail-order benefit, the specialty they have correctly enrolled on line, only such a way as not to encourage people tember 23, 2008, at 1:00 PM, in Room drug management program, the addition to find out after open enrollment ends to falsely open enroll but still serve as an 171 of the Capitol Annex. Senator Da- of some medications to the step therapy that they did not get enrolled. Mr. Nel- incentive for smoking cessation. mon Thayer, Chair, called the meeting to and prior authorization programs, the son said that this year, for the first time Representative Firkins also compli- order, and the secretary called the roll. 75-prescription reduced co-pay benefit, in many years, there will be a mandatory mented the Cabinet. He said that he had Present were: the VirginHealth Miles walking program, active enrollment. He went on to say that not been able to get approval for a medi- Members: Senator Damon Thayer, and the improved disease management the Department is aware of the potential cation because of the step therapy re- Co-Chair; Senators Carroll Gibson, Ernie program. He noted that KEHP currently for problems and is committed to being quirements and had finally agreed to use Harris, Alice Forgy Kerr, and Elizabeth has a little more than 150,000 employee as flexible and liberal as possible. Grace the drug okayed by the pharmacy benefit Tori; Representatives Kevin D. Bratcher, and retiree members; the addition of de- periods will be allowed in order to assure manager. He encouraged the Cabinet to Mike Cherry, Larry Clark, Tim Firkins, pendents raises the total membership to that people get enrolled. After the first of look into this problem and suggested it Mike Harmon, Melvin B. Henley, Mary approximately 260,000. the year, it will probably be necessary for may be more prevalent than thought. Mr. Lou Marzian, John Will Stacy, Kathy W. Mr. Nelson reviewed the non-smok- employees to file a grievance if they failed Nelson said they will be glad to intercede Stein, and Greg Stumbo. er premium rates for 2009. He said that to complete the enrollment process, but on behalf of plan members who are expe- Guests: Trey Grayson, Secretary of the rate-setting process faced daunting it is the Department’s goal to be liberal riencing problems. State; Sarah Ball Johnson, State Board of challenges because of the overall budget in granting the grievances, which has not Representative Riner asked whether Elections; Sarah Jackson, Emily Dennis, situation and medical inflation, and be- necessarily been the case in the past. there are incentives for people to answer and Rhonda Farmer, Kentucky Registry cause the previous administration had Representative Pullin asked whether the the smoker question honestly. Mr. Long- of Election Finance. used $50 million from the trust fund Department will notify employees who meyer said the main incentive is that giv- LRC Staff: Judy Fritz, Bill VanArs- to buy down premiums. He said that, have neglected to enroll. Mr. Nelson said ing a false answer is fraud. He went on to dall, and Terisa Roland. with the exception of the Optimum PPO that reports will be generated to current say that there has not been an effort to First Senator Thayer announced four plan, the other three plans being offered members who did not enroll online, and prosecute so far. Instead, the 2009 plan new members to the Task Force: Sena- will have a zero employee contribution their names and social security numbers will include an option for smokers who tors Ernie Harris, Johnny Ray Turner, and

32 2008 Interim LEGISLATIVE RECORD Ed Worley. same in the urban and rural areas. There er handout in the folder of an upcoming of the projects, a marina encompass- Secretary of State Trey Grayson, would be some transitional issues. Year meeting of the Council on Governmen- ing 200 boat slips. He said that there and Sarah Ball Johnson, Executive Direc- to year there may be some issues with tal Ethics Laws which will be in Chicago was a growing population of boaters and tor of the State Board of Elections, gave the service they would receive. There later this year. that there were very few marinas in the updates on the 2008 Primary, and the is tension between state and local and Business concluded, and the meet- Owensboro’s immediate area in which distribution to the counties of the re- training. There are currently three types ing was adjourned at 2:00 p.m. to purchase gasoline/diesel. He com- maining Help America Vote Act (HAVA) of machines. mended the city on its foresight in taking funds. Sarah Ball Johnson discussed federal advantage of this growing population’s Secretary Grayson spoke about the money. The next is an update on HAVA needs. 2004 General Election as well as the dollars. The current balance of HAVA The next person to offer testimony 2008 General Election. He said the 2004 dollars from the $32 million there is $19 was Mr. Bruce Kunze, Daviess County Primary was a history making primary. million left counting the interest that is INTERIM JOINT COMMITTEE Commissioner. Commissioner Kunze Secretary Grayson reported that there kept. The board committed to spending ON TRANSPORTATION said that there are approximately 56,000 was record voter participation for the $15.8 million of the remaining dollars Minutes of the Fourth Meeting citizens within the city’s limits and an- 2008 Primary. He noted that though the on getting the money to the counties of the 2008 Interim other 37,000 citizens just outside the final numbers were not yet available, the for reimbursement of voting machines, if September 26, 2008 city limits. There are 550 miles of county turnout was approximately 32% or high- they so purchased. There has been $37 The fourth meeting of the Interim roads and 342 miles of state roads. er. He stated that he expects the same million reimbursed to the counties who Joint Committee on Transportation was Commissioner Kunze stated there for the General Election in November. have purchased new machines and met held on Friday, September 26, 2008, at are five major projects that need fiscal The other notable thing from the Primary the MOA. Reimbursements are required 10:00 AM, at the RiverPark Center in support on the already tight Daviess was seven counties all phased out their by state law. That leaves $12 million to Owensboro, Kentucky. Senator Brett County Fiscal Court budget. Those proj- older voting systems and replaced them pay out which leaves approximately $7 Guthrie, Chair, called the meeting to or- ects are: with optical scanned balloting, similar million which is committed to voter edu- der, and the secretary called the roll. The roundabout at KY 56 & KY 81. to what Jefferson County has used for cation and for funding other mechanisms Present were: He said that fiscal court may need to about twenty years. Secretary Grayson such as on-line voting for absenteeism. Members: Senator Brett Guthrie, consider funding a portion to complete has a chart by county of voter turnout in Another item that will be paid from the Co-Chair; Representative Hubert Collins, the Worthington Road alignment if ad- member folders. extra $7 million is to move from main Co-Chair; Senators David E. Boswell, Bob ditional federal funding does not mate- Representative Clark asked for his frame to web based. (Spread sheet for Leeper, R.J. Palmer II, Dick Roeding, Rich- rialize. prediction for the upcoming primary for Voting Equipment and Update on HAVA ie Sanders Jr., Brandon Smith, and Gary Widen Southtown Blvd. to four voter turnout. Secretary Grayson said it Disbursements in folders.) Tapp; Representatives John A. Arnold Jr., lanes between Frederica and Carter was a little early but he believed it would Senator Thayer asked when they Eddie Ballard, Larry Belcher, Jim DeCesare, Roads. This corridor is between a busy be a little higher than four years ago anticipated counties to be reimbursed Melvin B. Henley, Arnold Simpson, Ancel commercial district and Apollo High which was almost 65% statewide. and the project completed. Ms. Johnson Smith, and Greg Stumbo. Non member School, with proposed residential devel- Representative Clark asked how said the current MOA’s run for the entire legislators attending the meeting were: opment involved. At the moment this many new registered voters was there biennium. The Board of Elections is com- Senator Dorsey Ridley and Representa- project is totally dependent on state were this year. Secretary Grayson said mitted to the counties that if they don’t tives Dwight Butler, Jim Glenn, Tommy funding and the state’s priority is to fund there are more democrats in raw num- spend the money in two years they will Thompson, and Don Pasley. state projects that have federal matching bers registering. He said over the past do another MOA to hold it for them. It Guests Appearing Before the Com- monies. five to ten years, Republicans have been will be New Year money every year with mittee: Tish Correa-Osborne, Chair, Glover Cary Bridge renovation. This gaining ground, relatively speaking, over no deadline for it to be spent with the and Jody Wassmer, President, Greater renovation is budgeted at $2.6 million a period of time there were more Repub- interest. Owensboro Chamber of Commerce; Tom for 2010; however, new estimated cost licans than Democrats registering. That Secretary Grayson made an an- Watson, Mayor, City of Owensboro; is now $8.2 million, including cleaning, changed a couple of years ago to more nouncement to the members to let their Bruce Kunze, Commissioner, Daviess painting, and deck work. Democrats registering. constituents know that Kentucky is County Commissioner; Stephen John- Extend Fairview Drive from dead- Representative Bratcher mentioned only one of a few of states that is doing son, Owensboro Medical Health System; end at the Downs subdivision to Pleasant the KYSOS website and stated how fas- a couple of things to help our military Nick Cambron, Chair, Chamber Leader- Valley Road (five miles). This should be cinating it is. He asked who designed and oversees citizen’s vote. This year as ship Initiatives for Northwestern Ken- a top priority for traffic flow between KY this. Secretary Grayson gave credit to in 2004 and 2006 they are participating tucky; and Mike Hancock, Chief of Staff 54 and Pleasant Valley Road, especially John Brown but said they are working to in a program that helps using the De- and Ted Merryman, Chief District Engi- with the new hospital construction. make this site more users friendly. Rep- partment of Military secure email sys- neer, District 2, Kentucky Transportation Widen KY 54 from mile 4.5 to 8.0. resentative Bratcher asked if every single tem that emails a secure voting ballot Cabinet. Heavily traveled east-west route from vote had a paper trial. Secretary Grayson thus cutting the turnaround time in half. LRC Staff: John Snyder, Jim Roberts, Owensboro to Whiteville and east Da- said that is false. It can trace as voter There are only six states that are doing Brandon Smith, and Linda Hughes. viess County. verifiable – but there is not a “paper tri- this. He said the members gave them the Ms. Tish Correa-Osborne, Chair, Commissioner Kunze stated that al.” Secretary Grayson trusts this system ability to do this and thanked them for Greater Owensboro Chamber of Com- Owensboro is currently developing a that we currently use. their help. They are also partnering with merce’s welcomed the Committee to downtown comprehensive plan for future Secretary Grayson said the cur- a non partisan group called the Oversees Owensboro. She said that Owensboro residential, commercial, and public de- rent numbers for mid September are Vote Foundation which gives oversees is the third largest city within the state velopment. This plan will include a new 1,656,242 Democrats and 1,049,459 citizens and military can fill out online with its airport having the second largest hotel, convention/multi-purpose center, Republicans, and 188,598 others (can a voter registration or absentee ballot runway in the state. She also empha- as well as the possibility of an outdoor be broken down, but not on-line) for a request. There is a federal form for this. sized that there is much room for growth events center. The city is investing sig- total of 2,894,299. In 2004, there were There are only five states that are doing citing the fact that Owensboro does not nificant dollars into this planning pro- about 2,794,000 overall voters. As of this. They want this to be used as much have a state university or an interstate cess. He cautioned that one issue that now there are already up about 100,000 as possible. within its boundaries. must be addressed in this revitalization registered voters and are up 37,000 from Chairman Thayer mentioned the Mayor Tom Watson, City of Ow- plan is traffic flow and traffic patterns. the primary. handouts from Ms. Johnson and asked ensboro, discussed the city’s riverfront Second Street is currently a one-way Representative Stumbo asked about Secretary Grayson to comment on cam- development efforts with the committee westbound route that carries a heavy standard machines statewide and the paign contributions. He said they need and presented a slideshow of a number concentration of semi-truck traffic. possibility of this and the cost would more electronic filing and need one more of projects the city envisions developing Jody Wassmer, President, Greater be a savings to the state for an election. report for disclosure. They need to pass in the future. One in particular project Owensboro Chamber of Commerce, Secretary Grayson said the ability to have the bill that would address this. A draft was a new hospital in which, Mayor commented on several projects that pro- an internet connection does not matter, of this is in the fourth session. The com- Watson commented would be discussed posed transportation improvements for but accessibility for voters does matter. mittee has heard of it many times. more thoroughly later in the meeting. the Owensboro region. Those projects He said technically, they could all be the Chairman Thayer mentioned anoth- Senator Smith commented on one were: Interstate 69, Interstate 66, and

THE KENTUCKY GENERAL ASSEMBLY 33 U.S. 60 East Bypass. Mr. Wassmer said of Staff and Ted Merryman, Chief District interstate standards. He said that while of the state office building concerning that he believed that Kentucky’s fore- Engineer, District 2, Kentucky Transpor- it is true that Congress has designated the movement of state agencies. Since sight to build parkways years ago paves tation Cabinet. Before their testimony I-69’s route through Kentucky, it has yet that time, there has been a study on the the way for them to become interstate Co-chairman Collins asked Mr. Hancock to designate I-66’s route. Mr. Hancock condition of the Capital Plaza Tower and spurs. He said that these spurs allow to briefly explain the controversy over said the I-66’s expansion program has surrounding complex. He stated that he counties touched by spurs to tell com- the distribution of truck registration fees not been completed at this date. thought it appropriate to come back to panies they are essentially on an Inter- to counties under the revenue sharing With no further business before the talk about what has happened with the state, thus helping to bring industry into provisions of KRS 47.020. This statute committee, the meeting adjourned at state offices in that period of time; and a county that does not actually have an appropriates 30 percent of all commer- 12:15 p.m. to provide the members with an update interstate within its boundaries. He said cial truck registration fees to be distrib- of the assessment of this facility and that having an interest within 25 miles uted equally among all 120 counties. some of the recommendations that have is very crucial in drawing industry to an In August, counties were notified been made. Those recommendations will area. And, research shows that on aver- that their share of these funds were be- CAPITAL PLANNING ultimately come back before the Board age a county’s per capital income is 30 ing reduced due to the passage of HB ADVISORY BOARD for review. Item IV covers the long-range percent higher than a county that does 535 of the 2006 Regular Session, which Minutes of the 2nd Meeting plans and an update on projects which not have an interstate. eliminated the 6,000 pound commercial of the 2008 Calendar have been completed or are underway. Stephen Johnson, Owensboro Med- vehicle plate and reduced the state fee September 23, 2008 There is also a chart that updates the ical Health System, discussed the need for the 10,000 plate from $24 to $12. The 2nd meeting of the Capital Plan- utilization of the state-owned vs. leased for the U.S. 60 Bypass project in East Mr. Hancock stated that after meet- ning Advisory Board was held on Tuesday, facilities. This information is important Daviess County. He said that the Ow- ing with LRC staff, the Cabinet had September 23, 2008, at 10:00 AM, in the as the Board looks at the conditions of ensboro Medical Health System (OMHS) undertaken an in-depth review of the Auditorium at the Capital Plaza Tower in facilities and what renovations might be decided in 2007 to move forward with reasons for the reduced county share. Frankfort, Kentucky. Senator Jack West- needed to house state agencies in the a $350 million new hospital construc- According to the Cabinet review, the wood, Chair, called the meeting to order, future. 2008 House Bill 2 makes changes tion project along the proposed U.S. 60 total county share declined $7.6 million and the secretary called the roll. in how buildings financed at least 50% bypass extension corridor. OMHS is the between FY 07 and FY 08, a reduction of Present were: by state funds will be built or renovated; 22nd largest employer in the state which $63,329 per county. This reduction can Members: Senator Jack Westwood, the energy needs of state-owned build- services nine Kentucky counties and two be attributed to four factors: Co-Chair; Representative Larry Belcher, ings; and changes in the standards for Indiana counties, with an annual payroll IRP/Ad Valorem Issue – In FY 07, Co-Chair; Representative Ron Crimm, buildings. 2008 Senate Bill 189, spon- of approximately $107 million. the Cabinet began collecting Ad Valorem David Buchta, Ben Fletcher, John Hicks, sored by Chairman Westwood and en- Mr. Johnson said that OMHS is an taxes on International Registration Plan Bill Hintze, Mary Lassiter, and Doug acted in the last legislative session, re- international player in plant made phar- (IRP) vehicles, vehicles that travel in Teague. lates to developing funding strategies to maceutical research and biotechnology more than one state. The Ad Valorem Guests: James Abbott, Commis- address capital maintenance needs. The using tobacco plants. Its cancer research collections were incorrectly included in sioner, Department for Facilities and Finance Cabinet, Governor’s Office for program is a joint venture with the Uni- the revenue sharing calculation in FY 07, Support Services; Steve Sherman, AIA Policy and Management, and the Coun- versity of Louisville. And it is the owner resulting in a $3 million overpayment to and Randy Richardson, Sherman-Cart- cil on Postsecondary Education are to of Kentucky BioProcessing, the world’s counties which was recouped this year at er-Barnhart; Clayton Farmer, Architect, report on possible funding strategies by only commercial bioprocessing facility of a cost of $24,490 to each county (38.7 Greystone Architects, Incorporated; December 1. The last item on the agenda its kind in the world. percent of total reduction). Glenn Mitchell, Deputy Cabinet Secre- is the instructions for the 2010-2016 Mr. Johnson said that the nation’s A decline in IRP Registrations – Due tary, Finance and Administration; John Capital Plans. While the instructions baby boomers are reshaping the nation’s to the economic downturn, IRP collec- Hicks, Deputy State Budget Director, are similar to the last version, Mr. Mul- health care industry. He said that the tions were down in FY 07. The total Office of State Budget Director; Dr. John lis reviewed some changes. Very spe- over 65 population will nearly double county share of this decline was $2.15 Hayek, Vice President for Finance, Coun- cific language has been added to make today’s population with six out of ev- million or $17,920 per county (28.3 per- cil on Postsecondary Education; and sure agencies understand that some of ery ten managing more than one chronic cent). Sherron Jackson, Assistant Vice Presi- the information in the capital plan will condition. And one out of every four se- Commercial Vehicle Coding – The dent, Equal Employment Opportunity be transferred into the capital budget; nior citizen will be diabetic. He said that elimination of the 6,000 pound plate ex- and Finance, Council on Postsecondary how that works; what is transferred; and by year 2030 baby boomer will account posed a problem in that some non-com- Education. what is not. The information required for for more than twice as many hospital mercial vehicles with 6,000 pound plates LRC Staff: Don Mullis, Nancy Os- recently completed/ongoing projects will admissions as they do today and there were being coded as commercial vehicles borne, Shawn Bowen, Kristi Culpepper, be taken from the quarterly capital proj- will be over four million more visits to an and the resulting registration fees were and Jennifer Luttrell. ects status reports. Space needs/space emergency room. being improperly revenue shared. This Chairman Westwood thanked ev- reduction forms have been converted to Mr. Johnson said that OMHS Emer- error amounted to a reduction in the eryone for attending and expressed his a text only format requesting only gen- gency Department is the most visited total county share of $2.2 million, or appreciation for being able to meet in the eral information. Appendix B is modified single emergency department in the $18,668 per county (29.4 percent). Capital Plaza Tower so that the commit- to reflect state agency reorganizations state, with 66,000 visits annually. And HB 535 – The impact of HB 535 tee members could see firsthand some with the addition of the Energy and En- without a question, the new facility is reduced the total county share by of the aspects of the Capital Plaza Com- vironment, Health and Family Services, much needed in the area and thus the $216,000, or $1,800 per county (2.8 plex. He stated that there would be a and Labor cabinets. These cabinets will U.S. 60 Bypass extension plays a signifi- percent). presentation that focuses on a recent re- report as a single entity. The Public Pro- cant role in meeting Owensboro’s daily Following the explanation of the port by the Finance and Administration tection cabinet will report as a multiple as well as future health care needs. revenue sharing issue, Mr. Hancock Cabinet that makes recommendations reporting entity. Appendix C is included Mr. Johnson said that the U.S. 60 discussed highway projects in High- concerning the Capital Plaza Complex. for use in estimating future costs. The Bypass extension will be the north-south way District 2, including I-69 and I-66. There will also be an update on the sta- Board is attempting to get the best esti- four-lane corridor between I-64 and I- With regards to U.S. 60, Mr. Hancock tus of the long-range plans for housing mate for the planning process. 65. It will help ease the future traffic said that it was the Cabinet’s position state facilities with the movement of John Hicks commented that inte- and safety concerns when OMHS has to construct the western portion of the offices to newly renovated state office grating the quarterly status report into completed its 24/7/365 facility in 2012. Bypass, which offers access to the new buildings and its impact on other agen- the capital planning system is just an- He commented that he recently heard hospital facility, as quickly as possible. cies. He asked Don Mullis to review this other example of how the Board contin- that Fort Knox is closely monitoring this He said that the eastern portion of the information. ues to improve the system. That infor- bypass for future military and emergency Bypass would be constructed at a later Don Mullis thanked Chairman mation is reported by the three branches management perspectives should natural date. Mr. Hancock said that there are Westwood. He gave a brief summary of and the Capital Projects and Bond Over- disaster or a terrorist attach incapacitate still major hurdles to cross before I-66 or the long-range plan to house state agen- sight Committee gathers it on a quar- bridges in Louisville and Evansville. I-69 can be constructed. These hurdles cies. He reminded the members that last terly basis. This shows the interlocking The last persons testifying before include federal and state appropriations year the committee discussed some of relationship between reporting and what the committee were Mike Hancock, Chief and upgrading parkways to meet federal the things planned after the completion the Board does in the planning process.

34 2008 Interim LEGISLATIVE RECORD The staff is doing a good job of taking in- assigned to those structures and compo- would be accommodating employees chart depicting the state’s Frankfort formation that is relevant to the process nents. The majority of the buildings fit who are currently housed in the Tower, based needs. The Fantus Study indi- and integrating it in a way that makes within the 35 to 55 range which required or could new space be created for staff cated that the state needed to have an it accurate. Chairman Westwood agreed over 50% of the replacement cost to be housed in other leased space or substan- ideal balance of 15% leased vs. owned that this approach benefits all parties in- expended to renovate these buildings. dard state facilities. space. The Commonwealth has reduced volved and gives a better picture of what Several fell within the 35 category which James Abbott stated that op- this balance from a high of 31% to 22% are the state’s needs. means they were on the verge of demoli- tion could go either way. The Finance since 1980 when there was 750,000 SF Moving to the topic of long-range tion. The second phase was to determine Cabinet’s six-year capital plan has con- of leased space. The Commonwealth plans for housing state agencies Senator the needs, costs, and priority rankings. sistently included building another sig- is up to almost a million square feet of Westwood said the Board might recall At that point, the process and report nificant state office building such as on leased space, but when one looks at the that the renovation of the State Office took a different perspective. When the Sower Boulevard next to the Central Lab. amount of state-owned space that has Building has been discussed over several cost was determined, they started ana- To consider this new Capital Plaza Com- been brought online, it is on the right planning cycles. When the Transporta- lyzing whether it was better to reno- plex approach would give the state the track. With the current budget short- tion Building was completed, it allowed vate facilities or take another approach. option to build such a building in the falls of the Commonwealth and the re- that project to be completed as well. Based on that, Sherman-Carter-Barnhart downtown community and provide one- tirements that are occurring, there are Several state agencies have been relo- determined recommendations in terms stop shopping starting at the State Of- a number of state agencies that have cated to the State Office Building and of scope, the budget, and the schedule fice Building, Transportation Cabinet Of- contacted his department in regards to this created opportunities to move other for implementation. A copy of the pre- fice Building, and the new building that wanting to reduce the amount of state- state agencies. The Finance Cabinet and sentation was provided in the members’ could be in this complex. A fourth build- owned and leased property. This is in- its consultants are here today to update folders. ing could be built on the future develop- creasing the Commonwealth’s utilization the Board on those changes and the pos- Mr. Sherman went through the as- ment site created under this option. The of state-owned property to the point of sible impact of changes to the Capital sessment of each area pointing out spe- structure that Mr. Sherman and his team reducing our leased footprint. The state Plaza Complex on the number and use of cific needs to be addressed. Each area have proposed would replace the tenant is also looking at two significant moves state facilities. was rated based on the same scale. spaces in the Tower and the Fountain at 209 St. Clair and 319 St. Clair. These Glenn Mitchell, Deputy Secretary of Recommendations for each component Place Shops with some additional area, buildings are approaching 20,000 SF in the Finance and Administration Cabinet, of the complex were discussed. To sum- but one could create a taller building total. The state is looking to move that stated that in the mid-90’s, state gov- marize, the price would be $134.7 mil- than the four-story proposed building footprint to the Cabinet for Human Re- ernment did a study known as the Fantus lion to renovate all facilities. $156 mil- depending on the future development sources complex. The old surplus prop- Study that analyzed state government’s lion, approximately 15% more in cost, a needs of the Commonwealth. erty building on Barrett Avenue has been use of buildings in the Frankfort area. The new parking garage could be built with John Hicks asked if the Board had renovated to provide a usable warehouse basic conclusion was that state govern- a longer life that would be tied into the heard any more about the master plan- of about 35,000 SF for some of the state ment was leasing too much space and it Transportation Cabinet’s garage and the ning and the use of the land on Sower agencies occupying the renovated State would be more economical for it to own tower could be demolished and a new of- Boulevard and additional sites for any Office Building. more buildings. This caused the Finance fice building constructed. The plaza and new state office building construction. Mr. Abbott said the last piece of and Administration Cabinet to start fountain shops could be demolished and He stated that the rating system present- this puzzle has always been to construct looking at building a major office build- a new public green plaza and building ed was very helpful in trying to decide if one major office building which will get ing. The Transportation Building was the site created. To renovate the convention the buildings should be rehabilitated or the state closer to the goal of the 15% first major office building that was con- center it would cost $23.3 million. built new instead. balance. He mentioned that in Jefferson structed, starting in the late 90’s. With Phase 1 would be to construct the James Abbott replied that before County, the state-owned L and N build- the completion of that sizeable building, new garage and then demolish the old the State Office Building was remodeled, ing was recently remodeled and staff it allowed the State Office Building to garage and plaza. The overpasses/plaza about 800 staff were housed in that fa- from leased property have been moved be vacated and renovated. Other state could be demolished at any time. The cility. Due to the renovation of the floor to this three-story 90,000 SF building. government agencies are now consoli- YMCA garage addition could be done at space and by utilizing modular furniture, An energy saving performance contract dated in the facility. The next domino any time. Once the new garage is built 1,200 staff are currently housed in that was utilized to bring this building back to fall in the long-range planning is the and the garage and plaza is demolished, building. Because of the way the core of online. It is all a matter of funding and Capital Plaza Tower. After this building, a shell of the office building could be the Tower is designed, the ability to in- time, but the state is making headway. the Finance and Administration Cabinet constructed. Phase II includes the office crease the occupancy level of this build- In response to Chairman West- plans to move to the CHR building on building fit-up, demolishing the tower ing does not exist. wood’s question about other buildings East Main, which is the last major office and the fountain shops, and creating the In response to Chairman West- that might be vacant right now because building in Frankfort that needs to be ad- new plaza. The footprint would be only wood’s question about the convention they need remodeling, Mr. Abbbot stat- dressed. 20 or so feet shorter than the length of center and whether vendors have turned ed that at Northpoint Training Center, Steve Sherman, Sherman-Carter- the new four-story building. With the away from using this building because of the Department of Corrections has been Barnhart introduced Randy Richard- street level plazas, one could look right its condition, Mr. Abbott replied that it using federal money to remodel the old son and Clayton Farmer, Architect, across to Mero Street while driving down is a challenging parking situation when hospital building on the grounds. That Greystone Architects, Incorporated. He Clinton. Phase III would be the renova- there is a large convention at that site work has not moved forward at a very stated the original goal of the project tion of the convention center. during the same operational hours of rapid pace, but the state is trying to re- was to develop recommendations that James Abbott added that the new the Commonwealth. The proposed ad- model and bring the building up to code, would allow the state to extend the building would be built to LEED certifica- dition to the YMCA parking would add which could be used to address over- life cycle of the Capital Plaza Complex tion therefore the utility costs of the new capacity to the current garage and would crowding in the prison population. John some 25 years. Additionally, they were space would be much less than the cost make it a more rentable facility. The im- Hicks added that their most pressing asked to develop standards that would of the existing space. Artificial light must provements mentioned are needed to at- need is for women’s prison space. meet all current building codes, Leader- be maintained 24/7 in the overpasses in tract customers. He stated that Clayton Chairman Westwood stated that ship in Energy and Environmental Design order to provide safety for pedestrian Farmer has looked at putting a front on he appreciated the report. He then stat- (LEED), and Energy Star qualifications and vehicular traffic. That is expensive to the convention center because it looks ed that HB 2 was enacted by the 2008 for the structures that were to be reno- maintain. Without the overpasses, it is the same on all four sides. The green area General Assembly to add new provisions vated. The components to be evaluated less expensive and provides a nice entry- between the convention center and the dealing with energy efficient buildings. were the tower, the plaza, the garage way to the downtown area. hotel could be planned for further de- The Finance Cabinet was given the re- complex, the Frankfort Convention Cen- Bill Hintze added that the previous velopment for convention-type space. sponsibility to develop and implement ter, and all the related shops around the commissioners before James Abbott had Meeting rooms that are not present now a number of provisions relative to state complex. Physical and functional assess- always criticized the lack of efficiency could be added. The green space could owned and leased facilities. One of those ments were conducted for all facilities, and functionality of the Capital Plaza also be used for other public events, is the creation of the High Performance and recommendations were developed Complex. Looking into the long-range such as fairs or other gatherings either at Buildings Advisory Committee which for each. The buildings were analyzed on plan of greater reliance on state-owned the hotel or the convention center. held its first meeting on September 17, a room by room basis and ratings were vs. leased space, he asked if the state Mr. Abbott then discussed the 2008. He asked Mr. Jim Abbott to pro-

THE KENTUCKY GENERAL ASSEMBLY 35 vide an update on the status of imple- tions. He believes the issue of coming up in 1997. Over the last 12 years, the state ing no further business, the meeting ad- mentation of those requirements. with the budget mechanism for creating has provided about $65 million of state journed at 11:58 AM. James Abbott provided the members a way to fund these needs falls directly General Fund moneys through bonds, information that included brief resumes on the OSBD. etc. that has been matched by the insti- CAPITAL PROJECTS AND for the ten public members of the High John Hicks gave a brief background tutions to address those issues. BOND OVERSIGHT Performance Building Advisory Com- of the Board’s emphasis of concentrating The study groups held their first COMMITTEE mittee. He stated that the construction on the deferred maintenance of the capi- meeting on SB 189 on July 31, 2008, to Minutes standards need to be improved upon. tal facilities in the Commonwealth. He begin to think about what can be done September 16, 2008 The current building code made a signifi- stated that 2008 SB 189 brings light to to create a process that can be put in The Capital Projects and Bond Over- cant jump relative to the construction this issue. The Executive Branch brings place in collaboration with the state sight Committee met on Tuesday, Sep- across the industry not only in commer- the institutional responsibility of de- to address the deferred maintenance tember 16, 2008, at 2:00 PM, in Room cial, but in residential construction as veloping good information for decision or capital asset preservation aspect of 169 of the Capitol Annex. Senator Eliza- well to build in a green manner. Mr. Ab- makers to address the issue of funding postsecondary education. The groups beth Tori, Chair, called the meeting to or- bott discussed the handout information deferred maintenance. He stated that also met in August with OSBD to outline der, and the secretary called the roll. concerning Energy Savings Performance the Board should look at how other state what might be a reasonable approach Present were: Contracts, E-SELF Green Pilot Program, governments approach the problem and with input from others to address this Members: Senator Elizabeth Tori, Natural Gas Procurement, and a number who is most successful at this process. issue. Further meetings are planned later Co-Chair; Representative Mike Denham, of other ongoing initiatives. The Depart- He stated that they would look at Ken- this month and in October, with a draft Co-Chair; Senators Tom Buford and Jer- ment of Facilities and Support Services is tucky’s history and use information from of a document to be ready in November. ry Rhoads; and Representatives Steven responsible for 5.2 million SF which gen- the Finance and Administration Cabinet The final document would be available Rudy and Jim Wayne. erate $8 million in annual utility costs. on the condition of building systems. to the Legislative Research Commission Guests testifying before the Com- The cumulative impact of these initia- CPE has shown that renovation and re- (LRC) by December 1. mittee: Brent Antle and Tom Howard, Of- tives is expected to reduce that cost by habilitation of buildings has as much to John Hicks stated that one of the fice of Financial Management; Rainer An- 18 % or more. There are similar opportu- do with how the building is utilized as things that Chairman Westwood men- drews, Summit Asset Management; John nities for the postsecondary educational to how old the roof is, both of which are tioned was the opportunity cost of not Egan, Bond Counsel to King’s Daughters institutions. important points. He stated that OSBD improving the investment in these areas. Medical Center; John Hicks, Governor’s John Hicks added that one of the is interested in correctional facilities, This is part of the challenge. The issue Office for Policy and Management; Jim key components of the capital planning juvenile justice facilities, mental health is large and there is a need to maintain Lane, Department of Fish and Wildlife process and the budget process is the and mental retardation facilities and the use of the facilities rather than bear Resources; Nancy Brownlee, Finance and operating costs of a new building. These hospitals. For each physical plant, the the greater cost of investing in replace- Administration Cabinet; Katie Smith, costs should be seen in future requests. conditions need to be updated because ments. He stated that Mr. Jackson sum- Economic Development Cabinet; and James Abbott commented that it is the foundation of information from marized it well and he looks forward to Sandy Williams, Kentucky Infrastructure the implementation of HB 2 will set the which the deferred maintenance needs working with the institutions and with Authority. Commonwealth on a much straighter are determined. This issue has to have the Council. LRC Staff: Nancy Osborne, Shawn path relative to greening Kentucky. The a good body of information to be able to Chairman Westwood stated that he Bowen, Kristi Culpepper, Don Mullis, benefits will be tremendous. compete with other demands on state liked the phrase “capital assets preser- and Jennifer Luttrell. James Abbott stated that the Ken- resources. Ryan Green of GOPM has been vation.” It summarizes all of the Board’s Representative Denham made a tucky Community and Technical College assisting Mr. Hicks and they are working goals to preserve our capital assets. He motion to approve the minutes of the System has a building that is being de- with Mr. Mitchell and Mr. Abbott’s de- thanked the presenters. Turning to the August 18, 2008, meeting. The motion signed to meet LEED requirements. Also, partment to assess facilities. Separately, Instructions and Forms, 2010-2016 was seconded by Senator Rhoads and the existing central utility plant that is they will be working with Dr. Hayek and Agency Capital Plans, Senator Westwood approved by voice vote. located behind the State Office Build- Mr. Jackson as it relates to postsecond- noted that under KRS 7A, the Board is to Senator Tori announced that due ing has the capability to supply chilled ary facilities. prescribe the format for agencies to use to the potential loss of the Committee’s and steam water for the proposed new Chairman Westwood expressed his to submit their capital plans every two quorum later in the meeting, agenda buildings downtown. Kentucky has re- appreciation for this information. He years. A draft of the complete set of in- items requiring action would be dis- ally made a concentrated effort to look added that it may cost a little bit more, structions and forms is before the Board cussed first. She then introduced Tom at the future of its buildings. but in the long run it has huge savings. for action today. Howard, Executive Director, Office of Chairman Westwood thanked Mr. Sherron Jackson added that an out- Doug Teague asked about the signif- Financial Management (OFM), and Brett Abbott for his presentation. He also line of activities has been developed icant dates of the Agency Capital Plans. Antle, Deputy Executive Director, OFM, stated that this Board in SB 189 direct- to put the report together. He noted Don Mullis responded that April 1, to discuss new bond issues. ed that the Finance and Administration that in May 2007, CPE reported to the 2009, is the submission date. The Board Mr. Antle reported three new State Cabinet work with GOPM to recommend Board that postsecondary education is required to make its recommendation Property and Buildings Commission a process to fund the capital maintenance had contracted with VFA, Incorporated for the 2010-2016 Statewide Capital Im- (SPBC) bond issues. The first bond issue, and renovation needs of state facilities. of Boston, Massachusetts and assessed provements Plan on November 1, 2009. SPBC Revenue and Revenue Refunding The Council on Postsecondary Education approximately one-half of the 29 mil- The Board’s goals are to open the Capi- Bonds Project 90 (General Fund), in an (CPE), along with GOPM, is required to lion SF of education space that is in tal Planning system up for practice by amount not to exceed $375 million, will deal with education facilities to develop critical condition and needs upgrading, Thanksgiving, but this may be pushed to be used to provide permanent financing the same information. He then intro- renovation, and remodeling. The index December 1. for $270.1 million of General Fund sup- duced Glenn Mitchell, Deputy Secretary code was found to be at 22%, which is Representative Crimm made a mo- ported projects authorized in the 2005, of the Finance and Administration; John much greater than the national average tion to approve the minutes from the last 2006, and 2008 Regular Sessions of the Hicks from GOPM, Dr. John Hayek, Vice in postsecondary education. If left un- two meetings. The motion was seconded General Assembly. Project 90 will also President for Finance for CPE; and Sher- checked the percentage would increase by John Hicks and passed by unanimous redeem approximately $100 million of ron Jackson, Assistant Vice President for to about 36% in five years. He said CPE vote. outstanding Project Notes issued by the EEO and Finance, CPE. developed a budget recommendation Representative Crimm made a mo- Kentucky Asset Liability Commission Glenn Mitchell stated that this is that infused funds into the process on tion to approve the 2010-2016 Agency (ALCo) for interim financing of autho- essentially a budget issue. He noted that a regular basis. For the 2008-10 budget Capital Planning Instructions and Forms. rized capital projects, refund outstand- Chairman Westwood had the foresight to process $90 million was requested, but The motion was seconded by John Hicks ing bonds from the SPBC Project No. include the Office State Budget Director only $13.9 million was appropriated to and passed by unanimous roll call vote. 60, and restructure outstanding debt (OSBD) with both the Finance Cabinet address the deferred maintenance issue Chairman Westwood stated that and use capitalized interest to provide for expertise relative to state buildings to be matched by the institutions. There the next meeting would be at Western $50 million in budgetary relief for Fiscal and CPE which has the responsibility for is more work that needs to be done to Kentucky University in November, but Year 2009, as directed by the 2008-10 universities’ buildings. He stated that bring postsecondary education up to a that the specific date was not set and budget. Approximately $42.7 million of he sees their role as providing raw data minimum standard that supports the that Mr. Mullis would work this out with previously issued SPBC bonds will be upon which to base these recommenda- goals and objectives established in HB 1 the Board and university. With there be- restructured. Approximately $7 million

36 2008 Interim LEGISLATIVE RECORD of capitalized interest is included on the hanger project and, consistent with that predictable. In response to another question new money component. prior bond issue, the moral obligation of Representative Wayne asked why from Senator Tori, Mr. Egan said the Representative Wayne asked how the state had been pledged in case of a the SPBC Project 92 bonds are being sold purpose of this bond issue is to refund the principal and interest payments for revenue shortfall. as a taxable issue. Mr. Howard explained outstanding bonds in the amount of this bond issue are structured. Mr. How- Representative Denham asked why that Bluegrass Station leases its property $130,000,000. He said the remainder, ard responded that the current principal Project 91 and Project 92 include the to private business enterprises that have $15,000,000, is new money for renova- and interest obligations that are com- moral obligation pledge of the Com- operations there so these bonds will be tions to the Heart and Vascular Center ing due immediately are pushed out to monwealth. Mr. Howard said the moral supported by private funds for a private and for a new data center. No new beds a later date. obligation provision may essentially ap- purpose. The federal government also will be added. Senator Rhoads made a motion to ply to those entities that are part of the leases space at Bluegrass Station and Representative Denham observed approve the SPBC Project 90. The mo- state budgetary process. The pledge re- federal law does not allow tax-exempt that this project is particularly important tion was seconded by Representative quires the Secretary of the Finance and bonds to be issued when federal funds to residents in the counties of Greenup, Denham and passed unanimously by roll Administration Cabinet to include in his are involved in a repayment under a con- Carter, and Lewis, and parts of Mason. call vote. budget request for the next legislative tract. He said with these stipulations, He said as a heart attack survivor and The next bond issue Mr. Antle dis- session an appropriation either to re- there is no other alternative than to fi- a survivor of open heart surgery, this is cussed was SPBC Revenue and Revenue plenish the debt service reserve fund in nance the projects except on a taxable an important project for his area of the Refunding Bonds Project 91. This is an the case of the Kentucky River Authority basis. state. agency fund transaction to provide per- (KRA), or to request funding of the debt Representative Rudy made a motion Representative Wayne made a mo- manent financing for approximately $14 service payments in the case of the Blue- to approve SPBC Revenue Bonds Project tion to approve the KEDFA bond issue. million of the $33.2 million in Kentucky grass Station, which would be a stronger 92. The motion was seconded by Rep- The motion was seconded by Represen- River Authority Agency Bonds autho- moral obligation. resentative Denham and passed by roll tative Rudy and passed unanimously by rized by the 2006 session of the General Mr. Howard said the KRA transac- call vote. Representative Wayne voted roll call vote. Assembly. This financing will redeem the tion includes a rate stabilization fund no based on the purpose and use of the Mr. Howard discussed KEDFA Vari- Project Notes issued by ALCo in 2007 whereby KRA has pledged some resourc- bond proceeds. able and Fixed Rate Demand Solid Waste that provided the initial funding for con- es to smooth out its revenue streams. The next new bond issue reported Disposal Revenue Bonds (Republic Ser- struction of the new Dam 9 project in This fund reduces the likelihood that by Mr. Howard was Kentucky Housing vices, Inc. project), Series 2008 in the Jessamine County. The pledge of security the debt service reserve fund would be Corporation Multifamily Housing Rev- amount of $18,025,000. Mr. Howard for this transaction is the Tier Two fees utilized and that a request for an ap- enue Bonds, Series 2008 (Watterson said the proceeds from this conduit bond charged by the Kentucky River Authority propriation would be made. The revenue Lakeview project), $6,170,000. He said issue will fund improvements at existing on water withdrawals. This will be the streams at Bluegrass Station are much the purpose of this bond issue is to pro- landfills in Williamstown, Beaver Dam, first permanent financing issued for the tighter and access to the marketplace vide conduit financing for the acquisi- Louisville, Nicholasville, Stanford, and Kentucky River Authority’s capital proj- would not be possible without the moral tion, rehabilitation, and equipping of the Sulphur, Kentucky. ects. The par amount on this transaction obligation. This is particularly true in the Watterson Lakeview Apartment project Senator Rhoads made a motion to is $16.7 million, of which $1.35 million current market environment. The project located 3703 West Wheatmore Drive in approve the KEDFA bond issue. The mo- will be used to fund a debt service re- would not be funded because of the lack Louisville, KY. tion was seconded by Representative serve. A rate stabilization fund has been of credit enhancement and because bond In response to a question from Rep- Rudy and passed unanimously by roll put in place as part of this transaction insurance is no longer a viable business resentative Wayne, Mr. Rainer Andrews, call vote. that will be funded through existing model. who represented the developer, Summit Mr. Antle presented two new cash-on-hand by the Kentucky River Representative Denham asked what Asset Management, said the property school bond issues with School Facilities Authority. happens if the General Assembly declines is located in the southwest quadrant Construction Commission (SFCC) debt Mr. Howard said these bonds will to appropriate the funds. Mr. Howard re- of Louisville near the airport and Dixie service participation: Barren County and be a moral obligation of the Common- sponded that if the debt service is not Highway. He said this property is being Bell County. wealth, as has been done in the past paid, the bonds would be in default. rehabilitated and upgraded and does not Representative Rudy made a motion with agency restricted fund bond issues Representative Denham asked why include new construction. to approve the school bond issues. The when the revenue streams are weak or the Project 92 bonds are being issued by Representative Denham made a motion was seconded by Representative could potentially become weak given SPBC, and not the Asset Liability Com- motion to approve the KHC bond issue. Wayne and passed unanimously by roll the amount of leverage that is being em- mission (ALCo). Mr. Howard said the The motion was seconded by Senator call vote. ployed. He noted that the state’s moral bonds for Bluegrass Station improve- Rhoads and passed unanimously by roll Ms. Osborne next discussed cor- obligation pledge applies not only to this ments could be issued under either of call vote. respondence and information items in- transaction, but also to the SPBC Rev- these two agencies. Both are eligible to Mr. Howard next discussed Ken- cluded in members’ folders. Correspon- enue Bonds Project 92 relative to the finance appropriation-supported proj- tucky Economic Development Finance dence was received from the Finance and Department of Military Affairs, Bluegrass ects. In this case, it is just a matter of Authority (KEDFA) Revenue Bonds (Ash- Administration Cabinet reporting plans Station, which will be discussed next. convenience since there are two other land Hospital Corporation d/b/a King’s by the Department of Military Affairs Representative Rudy made a motion SPBC issues being marketed simultane- Daughters Medical Center Project), Se- to use the design-build project delivery to approve SPBC Revenue Bonds Project ously. He said the combined issue would ries 2008 A, 2008B, and 2008C in the method to build unheated storage build- 91. The motion was seconded by Sena- have a market advantage because the of- amount of $147,380,028. The proceeds ings at the Shelbyville and the Leitchfield tor Rhoads and passed unanimously by fer includes state General Funds as one of the bond issue will provide finance to Readiness Centers. roll call vote. option and a dedicated revenue source refund outstanding variable rate bonds, Ms. Osborne briefly discussed Mr. Antle next discussed SPBC Rev- as a second option. There is also a small and to improve the fourth floor of the items included in the Staff Update. She enue Bonds Project 92 (Taxable Agency amount of taxable bonds so investors Ashland Hospital’s Heart and Vascular said the Louisville Arena Authority has Fund), Department of Military Affairs, will have an opportunity to purchase a Center and vacated space. completed a deal to sell $349.2 million Bluegrass Station. The proceeds from variety of state credits at various rates, Senator Tori asked if a Certificate of in bonds to finance the construction of this bond issue will provide permanent which is attractive, particularly since the Need (CON) was required for this proj- a new downtown Louisville Arena. The financing for the $4.4 million in agency tax carries a state exemption. He said in ect. John Egan, Bond Counsel for King’s bonds were sold in September and a fol- bonds authorized in the 2008-10 budget today’s markets, the spreads would be Daughter’s Medical Center, said this issue low-up report is anticipated for the Oc- to upgrade the fire suppression, drinking wider than investors can get on a num- as to whether a CON was needed arose tober Committee meeting. She noted Jim water, and electrical systems at Blue- ber of other products, particularly US two years ago when the hospital sought Host, Chairman of the Louisville Arena grass Station located in Lexington. Treasuries. financing for new construction bonds. It Authority, will be asked to attend the Mr. Antle said the debt service Representative Denham asked if the was later determined that no CON was meeting. pledge in this transaction will be the projected all-in true interest cost for this needed because the hospital was not in- Included in the Staff Update was lease revenues from tenants at Blue- bond issue of 6.76% will remain con- creasing the number of beds or expand- an article noting the Kentucky Supreme grass Station. There was an original stant considering current market condi- ing the type of facilities from what was Court has ruled that the University of transaction for Bluegrass Station under tions. Mr. Howard responded that it may already offered by King’s Daughters. He Louisville Foundation (U of L) must make this credit issued in 2005 to fund a new be closer to 7%, but the market was un- said a CON is still not needed. public its list of donors. The court has

THE KENTUCKY GENERAL ASSEMBLY 37 ruled that the U of L Foundation is a $4,916,100 for the City of Hopkinsville, and that the $3.00 fee has been in place 0.25% at today’s rates. public entity. The Staff Update also noted Christian County. The loan proceeds will since summer 2007. The bond issues were approved at that Tom Howard, Director of the Office be used make various surface and storm Representative Wayne made a mo- a previous Committee meeting, and no of Financial Management, has been ap- water improvements. The loan will be at tion to approve the KIA loan. The motion further action was required. pointed as a public representative to the 2% for 20 years. was seconded by Senator Rhoads and Mr. Howard said Committee mem- Municipal Securities Rulemaking Board Representative Wayne made a mo- passed unanimously by roll call vote. bers’ folders also included the Annual effective October 1, 2008. tion to approve the KIA loan. The motion Ms. Williams next reported various Report of Bonds Outstanding. He said John Hicks, Deputy Budget Director, was seconded by Senator Rhoads and coal/tobacco development grants that from June 30, 2007, the state had ap- Governor’s Office for Policy and Man- approved unanimously by voice vote. were funded through line-item appropri- proximately $9.6 million of appropria- agement (GOPM), presented the project In response to a question from Sen- ations from the 2005 General Assembly. tion and moral obligation debt outstand- report submitted by the Finance and Ad- ator Tori, Kasi White, Financial Analyst, These projects were authorized pursuant ing and at the end of June 30, 2008 the ministration Cabinet. Mr. Hicks reported KIA, clarified that there is no automatic to the 2004-06 budget and no further Commonwealth had approximately $11 a $46,500 project scope increase for the annual adjustment to the $3.00 per resi- action was necessary. billion outstanding. He said there was Terry’s Branch – Knott County Stream dential customer storm water assess- Ms. Katie Smith, Deputy Commis- approximately $2.8 billion in authorized Mitigation project that had been pre- ment fee associated with this loan. In sioner for the Department of Financial but unissued debt. viously reported in January 2006. The its staff analysis, KIA had projected that Incentives, Cabinet for Economic Devel- Senator Tori said the Committee’s scope increase will cover costs associ- revenues – not the amount of the fee opment, said enclosed in members’ fold- next meeting is scheduled for October ated with a change in the design con- - would increase by 1% annually based ers was the Cabinet’s Annual Report on 21 in Room 169 of the Capital Annex. tract due to increased five-year monitor- upon projected population. She noted Economic Development Bond Pool (EDB) With there being no further busi- ing requirements stipulated by the U.S. the fee was set by ordinance effective Program – Monitoring of Jobs Creation / ness, Representative Rudy made a mo- Department of Army Corps of Engineers. August 2007. Payback Requirements. tion to adjourn the meeting. The motion The project will be administered by the Senator Tori asked if the assess- Representative Wayne noted that was seconded and the meeting adjourned Department of Fish and Wildlife Re- ments are paid into a separate fund that the ABC Automotive Systems EDB at 3:00 p.m. sources in the Tourism, Arts, and Heri- will be used to pay off the Fund A loan. grant was approved in July 2004, but tage Cabinet. Ms. White responded that this was cor- it was only recently finalized. He asked ADMINISTRATIVE Senator Tori asked what the moni- rect and said the City of Hopkinsville what caused the over four-year delay. REGULATION REVIEW toring requirements for this project are. formed the surface and storm water util- Ms. Smith said in the process of final- SUBCOMMITTEE Jim Lane, Kentucky Department of Fish ity by ordinance in December 2005 to izing the first draft of the agreement, the Minutes of the September Meeting and Wildlife Resources, said the project address flooding and future development name of the company was changed and September 9, 2008 will be monitored for five years. As the needs. an amendment had to be executed. The The September meeting of the Ad- permit holder for this project, the De- Representative Wayne asked Ms. company was also trying to get a letter ministrative Regulation Review Subcom- partment must show a successful stream Williams to explain the new interest rate of credit, which was a condition of the mittee was held on Tuesday, September restoration project has been completed. structure KIA has adopted for Fund A grant. 9, 2008, at 10:00 AM, in Room 149 of This involves going out and taking water loans. Ms. Williams said the new struc- In response to a question from Rep- the Capitol Annex. Representative Rob- quality samples and monitoring the fish ture adopted at the August KIA Board resentative Wayne, Ms. Smith agreed ert R. Damron, Chair, called the meeting and bugs that live in the stream. Also, meeting identifies a standard rate of 3% that the grant took a long time to pro- to order, and the secretary called the the state must show that the stream and two non-standard rates of 2% or cess. She said during this time there was roll. is stable and that vegetation is estab- 1% depending upon the utility’s median also a transition from the previous dep- Present were: lished. household income. Consideration for the uty commissioner to her. No action was Members: Senator Dick Roeding, The revised project scope for the non-standard rate is also given for re- required for this report. Co-Chair; Representative Robert R. Terry’s Branch – Knott County Stream gional projects and any project that has Mr. Howard next reported two Damron, Co-Chair; Joey Pendleton, and Mitigation project is $658,500. No ac- a legal action, such as a consent decree follow-up reports for previously ap- Gary Tapp; Representatives Danny Ford, tion is required for allocations from a or an agreed order issued through the proved bond issues: Turnpike Author- and Ron Weston. pool. court, the state Division of Water, or the ity of Kentucky Economic Development Guests: Mike Carr, Alicia Sneed, Next, Nancy Brownlee, Director of U. S. Environmental Protection Agency. Road Revenue Bonds (Revitalization Dr. Marilyn Troupe, Education Profes- the Division of Real Properties, reported Senator Rhoads asked what kind of Projects), $195,665,000; and Kentucky sional Standards Board; Richard Dobson, a lease modification for the Energy and public process these loans go through. Higher Education Student Loan Corpo- Ricky Haven, Department of Revenue; Environment Cabinet (EEC), Division Ms. Williams this loan went through the ration Student Loan Revenue Bonds, John Covington, Kentucky Infrastructure of Abandoned Mine Lands in Franklin city council and there was the proper $50,000,000. Authority; Jeff Boler, Jim Grawe, Gerald County. The agency plans to install a due process, including public meetings Mr. Howard noted that with the Hoppman, Perry Wornall, Board of Vet- new exterior automatic door at the main with the storm water utility. She added Turnpike Authority bond issue, four years erinary Examiners; Nathan Goldman, entrance of its leased facility at 2521 Old this project will help eliminate flooding of principal were delayed to manage the Board of Nursing; Margaret Hazlette, Lawrenceburg Road. Ms. Brownlee said in the area and some of the environmen- amortization of the Road Fund debt to Board of Social Work; Ryan Halloran, the cost of the proposed improvement is tal concerns associated with the runoff. get it more in line with the state’s lon- Terry Reams, Board of Certification of $3,515 and will be amortized over the Senator Tori said she was aware of ger-term policy goals of between 25%- Alcohol and Drug Counselors; Steven remaining lease term (through June 30, areas in Hopkinsville that had flooding 30% in five years and between 55%-60% Dobey, David McChesney, Darin Moore, 2009). problems, as well as new development in ten years. There is no capitalized in- Melany Taylor; Department of Fish and In response to a question from Sen- areas that have drainage problems. She terest associated with the transaction. Wildlife Resources; Jory Becker, Barry El- ator Tori, Ms. Brownlee said she did not asked Ms. White to please provide the He added that OFM is pleased with the more, Peter Goodmann, Alan Grant; San- anticipate many requests for improve- Committee with a copy of the ordi- market reception for these bonds and it dra Gruzesky; Abigail Powell, Tom Vana- ments to state leased or owned facili- nance. represents one of the Commonwealth’s rsdall, Division of Water; John Carrico, ties in the future. She noted last year the In response to questions from Sena- lower cost of financing. Mark Mangeot, Morgain Sprague, Stacy Finance Cabinet received many agency tor Buford, Ms. White said KIA requires Relative to the $50 million bridge Warnecke, Department of Kentucky requests. However, in light of budgetary a replacement reserve of $12,250 to be financing for the Kentucky Higher Edu- State Police; Dana Fugazzi, Doug Sutton, issues, requests for improvements have funded annually and this amount is in- cation Student Loan Corporation, Mr. Cindy Vanhoose, Department of Vehicle declined sharply. No action is required corporated into the current $3.00 per Howard noted that this was a private Regulation; James Cundy, Mark Myers, for lease modifications of less than household fee. No additional fees will placement with the Commonwealth of Department for Libraries and Archives; $50,000. be charged. She said this reserve will be Kentucky that closed August 20, 2008, Tamela Biggs, Larry Moore, Department Senator Tori asked Sandy Williams, used to cover any kind of expenses nec- and matures November 14, 2009. The for Workforce Development; Brenda Park- Kentucky Infrastructure Authority (KIA), essary to maintain the project. variable interest rate is equal to 91-day er, Melia Rivera, Kentucky Department of to come to the table. Ms. Williams pre- Senator Buford asked if the residents commercial paper plus 50 basis points, Insurance; Carrie Banahan, Jeni Cracraft, sented one KIA Fund A (Federally-As- of Hopkinsville are aware of the project which is at 2.97% today. The Common- Cabinet for Health and Family Services; sisted Wastewater Revolving Loan Fund) and the associated fees. Ms. Williams wealth is earning 3.5%, compared to Guy Delius, Vonia Grabeel, Department loan for the Committee’s approval for said there has been public discussion, U.S. Treasuries, which are earning about of Public Health; Stephanie Brammer-

38 2008 Interim LEGISLATIVE RECORD Barnes, Wendy Fletcher, Jan Gould, Brad 103 KAR 30:091. Sales to farmers. plant that was damaged after a vehicle to approve the following amendments: Hall, David Hopkins, Van Ingram, Sharon In response to a question by Sena- collided into it. The project maximum (1) to amend the RELATES TO and STAT- Eli Mercer, Jeffrey Osman, Beth Partin, tor Pendleton, Mr. Dobson stated that was $500,000 and the current bond pool UTORY AUTHORITY paragraphs to cor- Sadiqa Reynolds, Dave Sallengs, Stan agents for hormone enhancement for the total fund was $3.4 million. rect statutory citations; (2) to amend Salyards, Matt Thomerson, Lloyd Vest, production of milk were tax exempt. In response to a question by Co- the NECESSITY, FUNCTION, AND CON- Gary Williamson, Paula York, Office of In response to questions by Co- Chair Roeding, Mr. Covington stated that FORMITY paragraph to clearly state the Inspector General; Stuart Owen, Depart- Chair Roeding, Mr. Dobson stated that the board approved funding for a project necessity for and function served by this ment for Medicaid Services; Elizabeth KRS 139.480 described aquatic organ- and then sent the matter to the Capital administrative regulation, as required by Caywood, Justin Dearinger, Department isms, including prawns and catfish. Cat- Projects and Bond Oversight Committee. KRS 13A.220; and (3) to amend Sections for Community Based Services. fish farms were exempt from Kentucky In response to a request by Co-Chair 1 through 3 to comply with the drafting LRC Staff: Dave Nicholas, Donna sales tax. A single certification sufficed Roeding for the authority to send a copy and format requirements of KRS Chapter Little, Sarah Amburgey, Emily Harken- for on-farm repairs such as repairing a of this administrative regulation to lo- 13A. Without objection, and with agree- rider, Laura Milam, Emily Caudill, Jennifer fence or expanding a pond but that, if cal governments, Mr. Covington stated ment of the agency, the amendments Beeler, and Laura Napier. a contractor was involved, the certifi- that the authority’s intent was to send were approved. The Administrative Regulation Re- cation had a specific time frame for the it to agencies that could benefit from the Board of Social Work: Board view Subcommittee met on Tuesday, repairs or construction. This administra- program, such as the area development 201 KAR 23:015. Temporary permis- September 9, 2008, and submits this tive regulation provided examples, rather districts. sion to practice. Jim Grawe, assistant at- report: than an exhaustive list of sales and use In response to a question by Co- torney general; Margaret Hazlette, board Administrative Regulations Re- tax provisions for sales to farmers. Chair Damron, Mr. Covington stated that chairperson; and Gerald W. Hoppmann, viewed by the Subcommittee: A motion was made and seconded the current bond pool total fund was director, represented the board. EDUCATION PROFESSIONAL to approve the following amendments: $3.4 million. Co-Chair Damron stated In response to a question by Sena- STANDARDS BOARD: Administrative (1) to amend the RELATES TO paragraph strong opposition to an executive branch tor Tapp, Ms. Hazlette stated that four Certificates to add a statutory citation; (2) to amend agency distributing funding since distri- (4) to five (5) temporary permits to prac- 16 KAR 3:050. Professional certifi- the NECESSITY, FUNCTION, AND CON- bution of funds was under the jurisdic- tice social work were issued yearly and cate for instructional leadership - school FORMITY paragraph to clearly state the tion of the General Assembly. that the intent of this administrative principal, all grades. Mike Carr, director necessity for and function served by this A motion was made and seconded regulation was to allow recent graduates of certification; Alicia A. Sneed, director administrative regulation, as required by to approve the following amendments: to become employed while waiting for of legal services; and Dr. Marilyn Troupe, KRS 13A.220; (3) to amend Section 1 (1) to amend the RELATES TO; STATU- licensure processing. director of the Division of Educator Prep- to add definitions for “crops”, “farmer”, TORY AUTHORITY; and NECESSITY, A motion was made and seconded aration, represented the board. “farm machinery”, and “person”; (4) to FUNCTION, AND CONFORMITY para- to approve the following amendments: A motion was made and seconded amend Sections 1 to 13 to comply with graphs and Section 2 to correct statu- to amend Section 1 to: (1) comply with to approve the following amendments: to the drafting and format requirements of tory citations; (2) to amend the NECES- the drafting and format requirements of amend Sections 3 and 4 to comply with KRS Chapter 13A and to clarify exam- SITY, FUNCTION, AND CONFORMITY KRS Chapter 13A; and (2) provide 120, the drafting and format requirements of ples of farm-related items exempt from paragraph to clearly state the neces- rather than sixty (60), days for a tem- KRS Chapter 13A. Without objection, sales and use tax; and (5) to add Rev- sity for and function served by this ad- porary permit extension. Without objec- and with agreement of the agency, the enue Policy 51P360 to the list of policies ministrative regulation, as required by tion, and with agreement of the agency, amendments were approved. rescinded by this administrative regula- KRS 13A.220; (3) to amend Sections 1 the amendments were approved. FINANCE AND ADMINISTRA- tion. Without objection, and with agree- through 3, 5 and 6 to comply with the 201 KAR 23:070. Qualifying edu- TION CABINET: Department of Revenue: ment of the agency, the amendments drafting and format requirements of KRS cation and qualifying experience under Forms were approved. Chapter 13A; (4) to amend Section 6 to supervision. 103 KAR 3:020. Sales and Tele- Office of Sales and Excise Taxes clarify that an eligible project shall be re- In response to a question by Senator communications Forms manual. Richard 103 KAR 31:200. Energy efficiency viewed by the Capital Projects and Bond Tapp, Ms. Hazlette stated that she could Dobson, executive director, and Ricky products. Oversight Committee; and (5) to revise not comment regarding whether or not Haven, director, represented the cabinet. A motion was made and seconded the REGULATORY IMPACT ANALYSIS five (5) years of work in another jurisdic- A motion was made and seconded to approve the following amendments: AND TIERING STATEMENT. Without ob- tion was comparable to the amount of to approve the following amendments: (1) to amend the title and Sections 2, 3, jection, and with the agreement of the time required by other states for qualify- to amend Sections 1, 2, and 3 to comply and 4 to comply with the drafting and agency, the amendments were approved. ing experience, but that the board had with the drafting requirements of KRS format requirements of KRS Chapter Board of Veterinary Examiners: applicants with twenty (20) and thirty Chapter 13A and to use the correct titles 13A; (2) to amend the RELATES TO para- Board (30) years of experience. She further of the forms incorporated by reference. graph and Section 1 to correct statutory 201 KAR 16:110. Prescriptions and stated that the applicants would still be Without objection, and with agreement citations; and (3) to amend the NECES- dispensation of drugs for animal use. Jim permitted to take the exam. of the agency, the amendments were ap- SITY, FUNCTION, AND CONFORMITY Grawe, assistant attorney general; Ger- In response to a question by Co- proved. paragraph to clearly state the necessity ald W. Hoppmann, director; and Perry W. Chair Roeding, Ms. Hazlette stated that 103 KAR 3:050. Miscellaneous Tax- for and function served by this admin- Wornall, board chairman, represented the national board would not give the es Forms manual. istrative regulation, as required by KRS the board. exam twice to the same applicant. In response to a question by Co- 13A.220. Without objection, and with A motion was made and seconded A motion was made and seconded Chair Roeding, Mr. Dobson stated that agreement of the agency, the amend- to approve the following amendments: to approve the following amendments: the forms relating to miscellaneous taxes ments were approved. (1) to amend the NECESSITY, FUNC- (1) to amend the RELATES TO paragraph were being updated as part of the annual GENERAL GOVERNMENT CABINET: TION, AND CONFORMITY paragraph to to add a statutory citation; (2) to amend update of this administrative regula- Kentucky Infrastructure Authority: Con- clearly state the necessity for and func- the NECESSITY, FUNCTION, AND CON- tion and that this administrative regula- tinuing education requirements tion served by this administrative regu- FORMITY paragraph to clearly state the tion updated forms relating to taxes for 200 KAR 17:090. Guidelines Ken- lation; (2) to amend Section 7 to clarify necessity for and function served by this health-care providers. tucky Infrastructure Authority Grants the role of the veterinary assistant in the administrative regulation, as required by A motion was made and seconded from Unobligated Bond Pool Funds. John dispensing of drugs; and (3) to amend KRS 13A.220; (3) to amend Sections 1 to approve the following amendments: E. Covington, III, executive director, rep- Sections 1 to 3 and 5 to 7 to comply with though 9 to comply with the drafting to amend Sections 1 to 15 to comply resented the authority. the format and drafting requirements of and format requirements of KRS Chapter with the drafting and format require- In response to questions by Senator KRS Chapter 13A. Without objection, 13A; and (4) to revise the contract incor- ments of KRS Chapter 13A and to use Tapp, Mr. Covington stated that the Un- and with agreement of the agency, the porated by reference. Without objection, the correct titles of the forms incorpo- obligated Bond Pool was for water and amendments were approved. and with agreement of the agency, the rated by reference. Without objection, sewer emergencies or needs between Board of Nursing: Board amendments were approved. and with agreement of the agency, the sessions of the General Assembly, such 201 KAR 20:410. Expungement of Board of Certification of Alcohol amendments were approved. as a package water or sewer plant that records. Nathan Goldman, general coun- and Drug Counselors: Board Sales and Use Tax; General Exemp- stopped working or was taken over by a sel, represented the board. 201 KAR 35:020. Fees. Ryan Hallor- tions public water supply system or a package A motion was made and seconded an, assistant attorney general; Gerald W.

THE KENTUCKY GENERAL ASSEMBLY 39 Hoppmann, director; and Terry L. Reams, requirements of KRS Chapter 13A; and ITY paragraph and Section 1 to make tion 3 to revise the fee system to remove board chairman, represented the board. (2) to revise the REGULATORY IMPACT technical corrections; and (2) to amend fees for the cost of processing applica- In response to a question by Co- ANALYSIS AND TIERING STATEMENT. the RELATES TO and NECESSITY, FUNC- tions for certifications impacting streams Chair Roeding, Mr. Reams stated that Without objection, and with agreement TION, AND CONFORMITY paragraphs up to 500 linear feet; (5) to revise the the alcohol and drug counselors had of the agency, the amendments were ap- to conform to the reorganization autho- REGULATORY IMPACT ANALYSIS AND been notified regarding the fees and that proved. rized by Executive Orders 2008-507 and TIERING STATEMENT; and (6) to add a they did not make comment. TOURISM, ARTS AND HERITAGE 2008-531. Without objection, and with FEDERAL MANDATE ANALYSIS COM- A motion was made and seconded CABINET: Department of Fish and Wild- agreement of the agency, the amend- PARISON, as required by KRS 13A.245. to approve the following amendments: life Resources: Game ments were approved. Without objection, and with agreement (1) to amend the RELATES TO and NE- 301 KAR 2:082. Transportation and Water Wells of the agency, the amendments were ap- CESSITY, FUNCTION, AND CONFORMI- holding of exotic wildlife. Steven Dobey, 401 KAR 6:001. Definitions for 401 proved. TY paragraphs and Sections 1 through 9 program coordinator; David McChesney, KAR Chapter 6. JUSTICE AND PUBLIC SAFETY CAB- to comply with the drafting and format program manager; Darin K. Moore, direc- A motion was made and seconded INET: Department of Kentucky State Po- requirements of KRS Chapter 13A; and tor; and Melany Taylor, attorney, repre- to approve the following amendments: lice: General Traffic (2) to revise the REGULATORY IMPACT sented the department. to amend Section 1 to comply with the 502 KAR 15:010 & E. Accident re- ANALYSIS AND TIERING STATEMENT. In response to a question by Senator drafting and format requirements of ports. John Carrico, lieutenant; Morgain Without objection, and with agreement Tapp, Mr. Moore stated that this admin- KRS Chapter 13A. Without objection, Sprague, attorney; and Stacy Warnecke, of the agency, the amendments were ap- istrative regulation only affected fairs. and with agreement of the agency, the DNA database supervisor, represented proved. A motion was made and seconded amendments were approved. the department. 201 KAR 35:040. Continuing edu- to amend Sections 5, 7, and 9 to com- 401 KAR 6:310. Water supply well A motion was made and seconded cation requirements. ply with the drafting requirements of construction practices and standards. to approve the following amendments: A motion was made and seconded KRS Chapter 13A. Without objection, In response to a question by Sena- (1) to amend the NECESSITY, FUNCTION, to approve the following amendments: and with agreement of the agency, the tor Tapp, Mr. Goodmann stated that jet- AND CONFORMITY paragraph to clearly (1) to amend the NECESSITY, FUNC- amendments were approved. ted wells and driven-point wells were state the necessity for and function TION, AND CONFORMITY paragraph 301 KAR 2:132. Elk depredation prohibited for public water supply use served by this administrative regulation, to clearly state the necessity for and permits, landowner cooperator permits, because the wells did not have a sanitary as required by KRS 13A.220; and (2) to function served by this administrative and hunts. seal and contaminates could migrate into amend Sections 1 to 6 to comply with regulation, as required by KRS 13A.220; In response to a question by Rep- the water supply. Mr. Goodmann stated the drafting and format requirements of (2) to amend Sections 1 through 11 to resentative Ford, Mr. Moore stated that that this was a public health concern. KRS Chapter 13A. Without objection, comply with the drafting and format this administrative regulation did not A motion was made and seconded and with agreement of the agency, the requirements of KRS Chapter 13A; and impact land owners’ ability to hunt on to approve the amendment to add a amendments were approved. (3) to revise the REGULATORY IMPACT their own land. statutory citation to the RELATES TO DNA ANALYSIS AND TIERING STATEMENT. A motion was made and seconded paragraph. Without objection, and with 502 KAR 32:010 & E. Centralized Without objection, and with agreement to approve the amendment to Section 4 agreement of the agency, the amendment database for DNA identification records. of the agency, the amendments were ap- to correct a minor drafting error. With- was approved. A motion was made and seconded proved. out objection, and with agreement of the 401 KAR 6:320. Certification of wa- to approve the following amendments: 201 KAR 35:050. Curriculum of agency, the amendment was approved. ter well drillers. (1) to amend the RELATES TO and STAT- study. 301 KAR 2:176. Deer control tags 401 KAR 6:350. Monitoring well UTORY AUTHORITY paragraphs to cor- A motion was made and seconded and destruction permits. construction practices and standards. rect citations; (2) to amend the NECES- to approve the following amendments: A motion was made and seconded A motion was made and seconded SITY, FUNCTION, AND CONFORMITY (1) to amend the RELATES TO; STATU- to approve the following amendments: to approve the following amendments: paragraph to clearly state the necessity TORY AUTHORITY; and NECESSITY, to amend Sections 2 and 5 to com- (1) to amend the RELATES TO paragraph for and function served by this admin- FUNCTION, AND CONFORMITY para- ply with the drafting requirements of to add a statutory citation; and (2) to istrative regulation, as required by KRS graphs to correct statutory citations; KRS Chapter 13A. Without objection, amend Section 4 to include requirements 13A.220; and (3) to amend Sections 1, and (2) to amend Sections 1 through and with agreement of the agency, the for flush-mount monitoring well sur- 2, 7, and 8 to conform to the drafting 4 to comply with the drafting and for- amendments were approved. face pads. Without objection, and with and format requirements of KRS Chapter mat requirements of KRS Chapter 13A. Wildlife agreement of the agency, the amend- 13A. Without objection, and with agree- Without objection, and with agreement 301 KAR 4:070. Scientific and edu- ments were approved. ment of the agency, the amendments of the agency, the amendments were ap- cational collecting permits. Water Quality Certification were approved. proved. A motion was made and seconded 401 KAR 9:020. Section 401 Water TRANSPORTATION CABINET: De- 201 KAR 35:060. Complaint proce- to approve the following amendments: Quality Certification fees. partment of Vehicle Regulation: Driver dure. (1) to amend Section 3 to delete email Co-Chair Roeding thanked the de- Improvement A motion was made and seconded addresses; and (2) to amend Section 4 to partment for exempting fees for appli- 601 KAR 13:070. KRS 159.051. to approve the following amendments: comply with the drafting requirements cations for certifications for impacts to Compliance verification for a minor. (1) to amend the RELATES TO paragraph of KRS Chapter 13A. Without objection, streams up to 500 linear feet. Dana Fugazzi, attorney; Doug Sutton, to correct statutory citations; (2) to and with agreement of the agency, the In response to a question by Co- assistant director; and Cindy VanHoose, amend the NECESSITY, FUNCTION, AND amendments were approved. Chair Roeding, Mr. Scott stated that du- director, represented the cabinet. CONFORMITY paragraph to clearly state ENERGY AND ENVIRONMENT plexes and triplexes would most likely Co-Chair Roeding thanked the de- the necessity for and function served by CABINET: Department of Environmen- fall into the exemption for impacts to partment for its hard work on this ad- this administrative regulation, as required tal Protection: Division of Water: Water streams up to 500 linear feet. ministrative regulation. by KRS 13A.220; and (3) to amend Sec- Quality A motion was made and seconded Co-Chair Damron thanked the de- tion 1 through 5 and 7 to comply with 401 KAR 5:012. Repeal of 401 KAR to approve the following amendments: partment and stated that it was his the drafting and format requirements of 5:040. Jory Becker, manager; Peter Good- (1) to amend the RELATES TO; STATU- understanding that the sponsor of the KRS Chapter 13A. Without objection, mann, manager; Sandra Gruzesky, execu- TORY AUTHORITY; and NECESSITY, legislation was in agreement with this and with agreement of the agency, the tive director; and Bruce Scott, commis- FUNCTION, AND CONFORMITY para- administrative regulation. amendments were approved. sioner, represented the department. graphs to correct citations; (2) to amend A motion was made and seconded 201 KAR 35:070. Supervision and 401 KAR 5:052. Requirements ap- the NECESSITY, FUNCTION, AND CON- to approve the following amendments: work experience. plicable to cooling water intake struc- FORMITY paragraph to make technical (1) to amend the RELATES TO and A motion was made and seconded to tures for facilities regulated by Section changes and to conform to the reorga- STATUTORY AUTHORITY paragraphs approve the following amendments: (1) 316(b) of the Clean Water Act, 33 U.S.C. nization authorized by Executive Orders to correct citations; (2) to amend the to amend the STATUTORY AUTHORITY 1326(b). 2008-507 and 2008-531; (3) to amend TITLE and NECESSITY, FUNCTION, AND and NECESSITY, FUNCTION, AND CON- A motion was made and seconded Sections 1 through 4 to comply with CONFORMITY paragraph to clearly state FORMITY paragraphs and Sections 1 to 4 to approve the following amendments: the drafting and format requirements the function served by this administra- to comply with the drafting and format (1) to amend the STATUTORY AUTHOR- of KRS Chapter 13A; (4) to amend Sec- tive regulation; (3) to amend Section 2

40 2008 Interim LEGISLATIVE RECORD to set forth all requirements for a minor the statutes pertaining to the standard Guy Delius, acting director, and Vonia for examination, certification, and re- driver license application and to delete plan and those changes necessitated Grabeel, supervisor, represented the de- certification of the advanced emergency the “School Compliance Verification for corresponding modifications to this ad- partment. medical technician. Driver Licensing Form” and replace it ministrative regulation. In response to a question by Rep- JUSTICE AND PUBLIC SAFETY CAB- with the “Driver License-ID Card Ap- 806 KAR 17:310. Prompt payment resentative Ford, Mr. Delius stated that INET: Department of Corrections: Office plication Form”; (4) to amend Sections of claims reporting requirements. this amendment applied tiering to small- of the Secretary 4 and 5 to clarify the process for notifi- In response to a question by Co- er, parochial schools and did not make 501 KAR 6:200. Comprehensive sex cation of compliance with KRS 159.051 Chair Roeding, Ms. Parker stated that it harder for schools to comply with the offender presentence evaluation proce- and notification of reapplication after this administrative regulation did not school sanitation requirements. dure. compliance is established; and (5) to add new requirements regarding pur- A motion was made and seconded Department of Kentucky State Po- amend Sections 2 to 6 to comply with chasing dental insurance but it did clar- to approve the following amendments: lice: Criminal History the drafting and format requirements of ify the requirement for prompt payment (1) to amend the STATUTORY AU- 502 KAR 30:060. Dissemination of KRS Chapter 13A. Without objection, of dental claims. THORITY paragraph to correct statu- criminal history record information. and with agreement of the agency, the A motion was made and seconded tory citations; (2) to amend the NECES- EDUCATION AND WORKFORCE amendments were approved. to approve the following amendments: SITY, FUNCTION, AND CONFORMITY DEVELOPMENT CABINET: Kentucky EDUCATION AND WORKFORCE (1) to amend the STATUTORY AUTHOR- paragraph and Sections 1, and 3 to 11 Board of Education: Department of Edu- DEVELOPMENT CABINET: Department ITY paragraph to delete a statutory cita- to comply with the drafting and format cation: School Terms, Attendance and for Libraries and Archives: Archives tion; and (2) to delete requirement lan- requirements of KRS Chapter 13A; and Operation 725 KAR 1:030. Scheduling pub- guage from the NECESSITY, FUNCTION, (3) to create a new Section 11 to incor- 702 KAR 7:065. Designation of lic records for retention and disposal; AND CONFORMITY paragraph. Without porate by reference the required School agent to manage high school interscho- procedures. James Cundy, manager, and objection, and with agreement of the Inspection Report form. Without objec- lastic athletics. Mark Myers, archivist, represented the agency, the amendments were approved. tion, and with agreement of the agency, School Terms, Attendance and Op- department. 806 KAR 17:360. Prompt payment the amendments were approved. eration A motion was made and seconded of claims. Department for Medicaid Services: 702 KAR 7:130 & E. Approval of in- to approve the following amendments: A motion was made and seconded Medicaid Services novative alternate school calendars. (1) to amend the RELATES TO and to approve the following amendments: 907 KAR 1:026. Dental services. PUBLIC PROTECTION CABINET: STATUTORY AUTHORITY paragraphs to (1) to amend the STATUTORY AUTHOR- Stuart Owen, regulation coordinator, Horse Racing Commission: Thorough- correct statutory citations; and (2) to ITY paragraph to delete a statutory cita- represented the department. bred Racing amend the NECESSITY, FUNCTION, AND tion; and (2) to delete requirement lan- A motion was made and seconded 810 KAR 1:012. Horses. CONFORMITY paragraph to clearly state guage from the NECESSITY, FUNCTION, to approve the following amendments: 810 KAR 1:015. Claiming races. the necessity for and function served AND CONFORMITY paragraph. Without to amend Sections 1 and 13 to com- CABINET FOR HEALTH AND FAM- by this administrative regulation, as re- objection, and with agreement of the ply with the drafting requirements of ILY SERVICES: Office of the Secretary: E- quired by KRS 13A.220. Without objec- agency, the amendments were approved. KRS Chapter 13A. Without objection, Health tion, and with agreement of the agency, 806 KAR 17:370. Standardized and with agreement of the agency, the 900 KAR 7:020. Kentucky e-Health the amendments were approved. health claim attachments. amendments were approved. Corporation. Department for Workforce Develop- A motion was made and seconded 907 KAR 1:626. Reimbursement of Office of Inspector General: Con- ment: Unemployment Insurance to approve the following amendments: dental services. trolled Substances 787 KAR 1:190. Recoupment and (1) to amend the STATUTORY AUTHOR- 907 KAR 1:911E. Repeal of 907 902 KAR 55:030. Schedule IV sub- recovery. Larry W. Moore, policy analyst, ITY paragraph to delete a statutory cita- KAR 1:013. stances. Stephanie Brammer-Barnes, represented the department. tion; (2) to delete requirement language Department for Community Based policy analyst; Sadiqa Reynolds, inspec- A motion was made and seconded from the NECESSITY, FUNCTION, AND Services: Child Welfare tor general; and Dave Sallengs, manager, to approve amendments to Section 1 to CONFORMITY paragraph; and (3) to 922 KAR 1:360 & E. Private child represented the office. comply with the drafting requirements of amend Sections 1 and 3 to comply with care placement, levels of care, payment. In response to questions by Co- KRS 13A.222(4)(a). Without objection, the drafting and format requirements of Elizabeth Caywood, policy analyst, rep- Chair Damron, Ms. Reynolds stated that and with agreement of the agency, the KRS Chapter 13A. Without objection, resented the department. stakeholders were aware that the office amendments were approved. and with agreement of the agency, the A motion was made and seconded did not plan to defer this administrative Employment Services amendments were approved. to approve the following amendments: regulation and that Arkansas also classi- 787 KAR 2:020. Confidentiality of CABINET FOR HEALTH AND FAM- (1) to amend the RELATES TO paragraph fied Tramadol as a scheduled drug. records of the office of employment and ILY SERVICES: Office of Health Policy: to correctly reference the 2008 bud- Co-Chair Roeding stated that Tra- training. Certificate of Need get bill, 2008 Ky. Acts ch. 127, Part 1, madol was abused and has withdrawal A motion was made and seconded to 900 KAR 6:050 & E. Certificate of H.10(3); (2) to amend Section 5(2) to effects. He further stated that, in 2005, approve the following amendments: (1) need administrative regulation. Carrie clarify how the index factor for median emergency room treatment pertaining to to amend the RELATES TO paragraph to Banahan, executive director, and Joni levels of care were established; and (3) Tramadol indicated a problem and that correct statutory citations; (2) to amend Cracraft, staff advisor, represented the to amend Sections 1 through 6, 11, and Kentucky was the leading state in pre- the NECESSITY, FUNCTION, AND CON- office. 12 to comply with the drafting and for- scription drug abuse. He was concerned, FORMITY paragraph to clearly state the Senator Tapp stated that he had mat requirements of KRS Chapter 13A. though, about involvement and commu- necessity for and function served by this been waiting six (6) years for this admin- Without objection, and with agreement nication during the amendment process. administrative regulation, as required by istrative regulation. of the agency, the amendments were ap- In response to a question by Co- KRS 13A.220; and (3) to amend Sections Representative Weston stated that proved. Chair Damron, Ms. Reynolds stated that 1, 3, and 4 to comply with the drafting this administrative regulation would as- The following administrative regula- the United States Drug Enforcement and format requirements of KRS Chapter sist with the needs for hospitals in ad- tions were deferred to the October 14, Agency and the Legislative Research 13A. Without objection, and with agree- jacent counties as well as the county 2008, meeting of the Subcommittee: Commission Program Review and In- ment of the agency, the amendments where the hospital will be located. GENERAL GOVERNMENT CABINET: vestigations Committee recommended were approved. A motion was made and seconded State Board of Examiners and Registra- scheduling Tramadol and that pharma- PUBLIC PROTECTION CABINET: to approve the following amendments: tion of Landscape Architects: Board cists’ statistics also indicated a problem. Department of Insurance: Health Insur- to amend Sections 1, 4, 7, 8, 12, 15, 17 201 KAR 10:050. Fees. Senator Tapp stated that members ance Contracts to 20, 23, 24, 27, and 29 to comply with Kentucky Board of Certification of of the subcommittee needed more ad- 806 KAR 17:180 & E. Standard the drafting and format requirements of Alcohol and Drug Counselors: Board vanced notice of the issues raised by this health benefit plan. Brenda Parker, man- KRS Chapter 13A. Without objection, 201 KAR 35:080. Voluntary inac- administrative regulation. ager, and Melea Rivera, health policy and with agreement of the agency, the tive status. Co-Chair Roeding stated his agree- specialist, represented the department. amendments were approved. INDEPENDENT ADMINISTRATIVE ment with Senator Tapp and stated that In response to a question by Co- Department of Public Health: Food BODIES: Kentucky Board of Emergency numerous professional boards and as- Chair Roeding, Ms. Parker stated that and Cosmetics Medical Services: Board sociations, as well as law enforcement the 2008 General Assembly amended 902 KAR 45:150. School sanitation. 202 KAR 7:330 & E. Requirements agencies, the Justice and Public Safety

THE KENTUCKY GENERAL ASSEMBLY 41 Cabinet, and lobbyists supported the the Textbook Commission and the se- what was covered in the textbooks and Department of Anthropology. scheduling of Tramadol. lection of textbooks that are eligible to what was covered on assessments. According to Section 106 of the A motion was made and seconded be placed on the State Multiple List. He Senator Harris asked whether there NHPA, the goals of the Section 106 to defer consideration of this administra- said schools are not required to report to is any state appropriation for middle and review process include identification, tive regulation until the subcommittee’s the division as to which textbooks they elementary schools. which is to determine if historic struc- October meeting. Ms. Reynolds stated purchase. Mr. Miller said that concern Mr. Miller said that there is an ap- tures or archaeological sites over 50 years that the department would agree to de- was raised at the committee’s August 14 propriation for kindergarten through old are located within a project’s area of fer this administrative regulation. With- meeting that some students do not have eighth grade textbooks. potential effect; evaluation, to determine out objection, and with agreement of the their own copies of textbooks for home- Senator Harris asked whether Mr. if historic structures or archaeological agency, this administrative regulation work or study purposes. He noted high Miller knew how many classrooms had sites listed in or eligible for listing in the was deferred. school textbooks are funded through lo- widescreen televisions and other tech- National Register of Historic Places will The Subcommittee adjourned at cal funds or other sources, not state ap- nology for instructional purposes. be adversely impacted by a project; and 11:30 a.m. until October 14, 2008. propriations. Mr. Miller said that he did not know mitigation, to avoid or minimize adverse Senator Seum said that he had but would provide the information. effects to significant historic structures PROGRAM REVIEW AND raised questions about textbooks be- Senator Seum suggested a program or archaeological sites. If mitigation is INVESTIGATIONS cause he knew of a school in Jefferson in which parents would pay a fee up- not an option, it is determined how the COMMITTEE County in which students must share front to rent textbooks for the year and adverse effects to these properties will Minutes textbooks and homework has to be di- would get their money back if books are be addressed, either through recording September 11, 2008 vided over two days. A high percentage returned. or documenting them or by excavation. The Program Review and Investiga- of the school’s students do not have Representative Meeks introduced Site identification coordinates tions Committee met on Thursday, Sep- home computers, so online access to the presentations on preservation of statewide surveys and maintains a com- tember 11, 2008, at 10:00 AM, in Room books would not help. He asked why Kentucky’s cultural resources by noting prehensive GIS inventory of prehistoric 131 of the Capitol Annex. Senator Ernie they cannot have textbooks for these that the Commonwealth has more pre- and historic sites located throughout the Harris, Chair, called the meeting to order, students. served sites of antiquities than any other state. The division coordinates planning and the secretary called the roll. Mr. Miller said those decisions are state and a nationally known staff who for agency programs and statewide pres- Present were: made locally. He said that textbooks are called upon to be resources for other ervation efforts, and nominates sites to Members: Senator Ernie Harris, Co- used by students on a rotating basis can states. the National Register of Historic Places. Chair; Representative Reginald Meeks, be efficient, for long-term projects and Mark Dennen, the acting Executive Mr. Dennen said Kentucky has Co-Chair; Senators Charlie Borders, Ver- for certain content areas where text- Director and State Historic Preserva- the fourth highest number of National nie McGaha, Joey Pendleton, Dan Seum, books are rarely used, but that the lack tion Officer with the Kentucky Heritage Register listings, more than 3,200, en- Brandon Smith, and Katie Stine; Repre- of textbooks can cause frustration in Council, gave a PowerPoint presentation compassing 41,000 districts, sites, and sentatives Dwight D. Butler, Ruth Ann other cases. about the Heritage Council and its role structures. Kentucky also has 30 Na- Palumbo, Rick Rand, Arnold Simpson, Senator Seum asked whether the in helping to protect and preserve Ken- tional Historic Landmarks, many of them and Ken Upchurch. state has any control over this. tucky’s historic and cultural resources. being archaeological sites. More than Guests: Michael Miller, Director, Di- Mr. Miller replied that the state Mr. Dennen said the National His- 94,000 prehistoric and historic sites and vision of Curriculum, Kentucky Depart- appropriates no money for high school toric Preservation Act (NHPA) of 1966 historic structures have been surveyed in ment of Education. Mark Dennen, Ken- textbooks. established the Section 106 process, all Kentucky counties through the Heri- tucky Heritage Council Acting Executive Senator Seum asked whether KDE the National Register of Historic Places, tage Council’s survey initiative. Director and State Historic Preservation gives districts guidelines concerning and provided a federal-state framework Site development oversees educa- Officer. Dr. Fred E. Coy, Jr., Co-author textbooks. for creating state historic preservation tion and training, incentives, and techni- of Rock Art of Kentucky. Dr. George M. Mr. Miller said the State Textbook offices. This led to the creation of the cal and design assistance to encourage Crothers, Director of William S. Webb Commission produces a list of textbooks Kentucky Heritage Commission in 1966, protection of and investment in historic Museum of Anthropology and Office of that meet the Kentucky standards. Dis- later renamed the Kentucky Heritage places. This includes administration of State Archaeology, University of Ken- tricts may choose to not purchase from Council. federal and state tax credit programs, tucky. Michael French, Senior Archaeolo- that list, in which case they need to sub- He said the council’s concept of his- the Kentucky Main Street Program, and gist Project Manager, AMEC Earth & En- mit an off-list notification form. toric preservation has changed over time. educational programs including training vironmental, Louisville. Dr. David Pollack, Senator Stine repeated her question Its original focus was on single buildings, in traditional craftsman and preservation Site Protection Program Administrator from the August 14 meeting about the but has evolved to include main streets, arts. and Director of the Kentucky Archaeo- relationship between textbook publish- roadside architecture, prehistoric and Mr. Dennen continued by saying logical Survey, Kentucky Heritage Coun- ers and ACT/SAT publishers. She asked historic archaeological sites, and cul- that the Kentucky Heritage Council initi- cil. David M. Waldner, Director, Kentucky whether it was possible that high per- tural and rural landscapes. Within state ated the Kentucky Main Street Program Transportation Cabinet’s Division of En- forming schools based on those tests governments, state historic preservation in 1979 and it is one of its most success- vironmental Analysis. are using textbooks from the same com- offices, (SHPO), are organized differently ful programs. Today the council works LRC Staff: Greg Hager, Commit- panies that create the tests. This would depending on the state. The Kentucky with more than 100 communities and tee Staff Administrator; Rick Graycarek; mean that students are learning what Heritage Council is an agency of the they are the oldest Main Street Program Christopher Hall; Colleen Kennedy; Van they need to answer the test questions. Tourism, Arts and Heritage Cabinet. It in the nation. He described the benefits Knowles; Jean Ann Myatt; Rkia Rhrib; Mike Clark said that, to his under- has 20 professional staff in many disci- of preserving historic buildings in down- Tara Rose; Cindy Upton; Stella Moun- standing, ACT and SAT are independent, plines. The SHPO is the official federal towns. tain, Committee Assistant; Program Re- nonprofit organizations and are not affil- liaison regarding historic preservation in He said Kentucky has successfully view and Investigations Committee Staff. iated with the publishers. He said some the state. utilized the federal historic rehabilitation Mike Clark, LRC Staff Economist. of the publishers develop assessments Mr. Dennen said the Heritage Coun- tax credit program for many years, and Upon motion made by Senator though. cil’s efforts are focused in three program the first round of Kentucky state historic Pendleton and seconded by Senator Mc- Senator Stine asked whether Mc- areas: site protection, site identification, preservation tax credits, which he de- Gaha, the minutes of the August 14, Graw-Hill is an example and whether and site development. Site protection scribed, were awarded in 2006. 2008 meeting were approved by voice there is a correlation between publishers includes Section 106 review, which re- Mr. Dennen said the agency contin- vote, without objection. of textbooks that are selected and as- quires that all federally funded, licensed, ues to emphasize diverse cultures’ con- Senator Harris noted that a repre- sessments. or permitted projects are reviewed by tributions to Kentucky’s history. Heritage sentative of the Kentucky Department of Mr. Clark replied that McGraw-Hill the State Historic Preservation Office to Council programs include providing staff Education (KDE) was present to address is a major publishing company that de- determine their effect on and potential and technical assistance to the Kentucky questions raised at the August 14 meet- velops a number of assessments. He said threats to historic properties. It also in- African American Heritage Commission, ing at which the report on school text- the Textbook Commission chooses text- cludes the agency’s archaeological com- the Kentucky Native American Heritage books was approved. books that match the requirements that ponent and the Kentucky Archaeologi- Commission, the Underground Railroad Michael Miller said that a role of Kentucky is expecting educators to meet, cal Survey, a partnership of the Heritage Advisory Council, and the Kentucky Mil- the Division of Curriculum is to organize so there would be a correlation between Council and the University of Kentucky itary Heritage Commission.

42 2008 Interim LEGISLATIVE RECORD Mr. Dennen said that 23,000 ar- for the listing in the National Register. panies or auctioneers who would auc- nicipal land. The office is also involved in chaeological sites with evidence of early Representative Simpson asked tion off artifacts, not knowing whether administering the Cave Protection Act, native cultures have been recorded, and whether cost is taken into account when they have been excavated in a legal man- which prohibits collecting archaeological only 4% of the state has even been sur- making decisions about moving historic ner. He asked whether there is a liability or paleontological materials from cave veyed. structures. He referred to the 12th Street if someone from another state purchases sites. He said the office is responsible Mr. Dennen mentioned that loot- project in Covington in which two struc- one and takes it across state lines. for locating historic and prehistoric sites ing of prehistoric sites continues to be a tures were being relocated at high cost. Mr. Dennen said it is a difficult ques- and identifying them. They issue about serious problem, and he gave examples. He said funds could be better employed tion because it depends on the strength 600 new archaeological site numbers per In the case of Indian Head Rock, last fall to provide roadway improvements, given of the laws and how one prosecutes the year and process about 400 new sur- a group from Portsmouth, Ohio, pulled that Kentucky’s road funds are low. laws and what evidence there is. veys, which entails identifying standing the rock from the Ohio River near South Mr. Dennen replied that cost is Senator McGaha suggested that historic structures and identifying ar- Shore in Greenup County. Three men taken into account. The costs of pres- the intent could play a role in how this chaeological resources. In cooperation have been indicted by a grand jury and ervation, rehabilitation, or relocation was interpreted. If someone at an auc- with the Kentucky Archaeological Sur- more indictments are expected. of the structure are balanced against tion buys something, the intent is not to vey, location information recently has Mr. Dennen said that existing legis- losing a structure. He said that for the do anything illegally but rather to legally been digitized and is in a geographical lation establishes public policy regarding 12th Street Corridor, buildings are being purchase something. information system. Because of looting the preservation of archaeological sites relocated to preserve as examples of the Dr. Pollack said he would suspect problems and of landowner private prop- and objects of antiquity. The Federal An- neighborhood. that that person would not be charged if erty concerns, the locations of archaeo- tiquities Act makes it a felony to disturb Dr. Pollack said that for the project, he cooperates with law enforcement and logical sites are not available to the gen- or destroy archaeological sites on public the Heritage Council, the Kentucky Trans- helps law enforcement track down the eral public. lands without a permit. The State Antiq- portation Cabinet, the Federal Highway guilty person. Dr. Crothers said that his office has uities Act prohibits the willful damage Administration, and agencies paying for Mr. Waldner, the Director of the Di- to respond to calls when discoveries are or destruction of archaeological sites on it must come to an agreement as to all vision of Environmental Analysis for the made during construction. He added lands owned or leased by the state, state the different components involved, and Kentucky Transportation Cabinet, said that the entire staff of the Office of the agencies, counties, or municipalities. price is taken into consideration. the cabinet conducts surveys for historic State Archaeology is 0.7 people, consist- The act requires anyone who discovers a Representative Simpson said that properties, both above ground structures ing of himself at 30% of his job duties site to report it to the University of Ken- he thought the system was broken. He and archaeological sites, on any project and one assistant director at 40% of her tucky Department of Anthropology. The said that he has been a resident of that in which there is federal involvement. job duties. Kentucky Cave Protection Act makes it neighborhood for most of his life, he The objective for all the building projects Representative Meeks asked wheth- illegal to disturb or damage cave surfaces knows the structures, and the cost of is to identify historic and archaeologi- er it is usual for a state to have 0.7 peo- or materials found inside caves, includ- relocation was not justified. cal resources as early as possible to ac- ple responsible for all the duties and how ing archaeological remains. It is a misde- Representative Butler asked how complish avoidance. When avoidance is are the other states structured. meanor to violate sections of these acts. trading and trafficking in Native Ameri- not feasible or cannot be achieved, and Dr. Crothers said that it varies by Mr. Dennen said there are thou- can artifacts is regulated. a project results in an adverse effect to state. In a number of states, the state ar- sands of burial grounds and cemeteries Dr. Pollack replied that if they were a historic property, mitigation of the ef- chaeologist is with a university. There is around the state; some are known to the obtained illegally, it is still illegal to trade fect is required. The mitigative measures usually some state appropriation for the local communities and some are uniden- in them. If artifacts are obtained legally, are determined in consultation among office, which varies. Some offices have a tified. Many cemeteries are inadvertently there are no penalties. If an artifact was parties, including the Transportation staff of 50 but that would include people discovered during construction, projects obtained illegally and it is taken across Cabinet, Federal Highway Administra- who do the mitigation and excavation. which could be avoided if developers state lines, it becomes a federal offense. tion, Kentucky Heritage Council, and if Dr. Coy said that his interest in would routinely check with local histori- Representative Butler asked how they choose to participate, the Advisory petroglyphs and pictographs of the cal societies and planners before initiat- they determine that. For example, an Council on Historic Preservation. Mitiga- American Indians was initiatived 45 ing projects. artifact might have been in someone’s tion costs range from thousands to mil- years ago when he was unable to locate Senator Harris asked whether the family for years or it came from a site lions of dollars. much information on reported finds in 94,000 identified sites are prehistoric that was not correctly handled. Mr. Waldner said the cabinet also Kentucky. He found only 16 sources that sites. Dr. Pollack replied that is part of the manages the Transportation and En- mentioned a petroglyph that had been Mr. Dennen said that they are sites problem for law enforcement, proving hancement Program that makes millions made prior to that time. Now in con- of all kinds, prehistoric and historic, ar- that something was obtained illegally. of dollars available to local communities. junction with the State Archaeologist chaeological and built. Representative Meeks asked Dr. Pol- Many of these funds are used to restore and the Kentucky Heritage Council, more Senator Harris asked how a site is lock to explain what is allowed on pri- and improve historic properties. than 70 rock art or petroglyph sites have defined and whether a site could be as vate property relating to the collection of Representative Simpson asked how been recorded in the state; 62 of them simple as finding a few arrow heads on a items and what is required of the prop- they define historic properties. are on the National Register, and these farm, which could be evidence of an In- erty owner. Mr. Waldner said that U.S. Depart- may be found online. About 12 years dian village. Dr. Pollack said it is permissible to ment of the Interior’s regulations outline ago, the Heritage Council published his Dr. David Pollack, Site Protection surface collect on private property with how historic properties are determined. book, which describes 62 of the rock art Program Administrator and Director of the permission of the landowner, which The cabinet has historic preservation sites in Kentucky. the Kentucky Archaeological Survey, can include looting an archaeological site professionals that determine whether or Dr. Coy said that the study of petro- Kentucky Heritage Council, said that of as long as one does not encounter buri- not properties within an area of influence glyphs and pictographs has developed those 94,000 sites, 70,000 of them are als. He said Representative Meeks has of a project might be considered historic. into a scientific discipline. He distributed buildings. There are 24,000 archaeologi- been involved with legislation to better That information is coordinated with the a handout listing problems involved in cal sites that would be potentially im- regulate this. Kentucky Heritage Council and it is then trying to save petroglyph sites. He said portant sites but not every site is con- Senator Seum asked whether the determined whether a structure meets that educating the public will help. sidered to be significant. He said the site two buildings moved in the Northern those standards for being considered eli- Dr. Pollack said that the Kentucky described by Senator Harris has potential Kentucky road expansion were desig- gible for the National Register and if so, Archaeological Survey, jointly adminis- and could be significant. nated historic buildings prior to the then the Section 106 protection mea- tered with the Department of Anthropol- Sen. Harris asked whether there was project. sures are enforced. ogy at the University of Kentucky, does a Web site that lists National Register of Mr. Dennen replied that they had Representative Simpson asked to be a great deal of public education. Grade Historic Places by county. been part of a national registered dis- provided with a copy of a definition of school students go through several of Dr. Pollack said that the National trict. historic properties if possible. their programs. They also produce edu- Register of Historic Places has a Web site Dr. Pollack noted that the agree- Dr. Crothers said the Office of State cational materials. They have completed that lists by state, but without much de- ment to move the buildings was signed Archaeology keeps the state records on a video series that can be viewed online. tail. The Kentucky Heritage Council can about 8 to 9 years ago. registered archaeological sites and issues They also produce curricula for schools provide more information like descrip- Senator McGaha asked whether permits for archaeological work or col- and offer teacher workshops under the tions, photographs, and the reasoning there is any liability to real estate com- lecting artifacts on state, county, or mu- national Project Archaeology program.

THE KENTUCKY GENERAL ASSEMBLY 43 Another part of his office’s duties is to 131 of the Capitol Annex. Senator Ernie rate. The department should measure able in prisons than in jails. deal with cemeteries that are being im- Harris, Chair, called the meeting to order, and report outcomes of the programs Ms. Upton said that Program Review pacted inadvertently by construction. and the secretary called the roll. and services provided to convicted fel- staff asked the department for the num- He said they do not have anybody who Present were: ons. The department provides work pro- ber of state inmates with jobs and pro- is solely dedicated to responding to such Members: Senator Ernie Harris, grams; academic, vocational, and techni- gram assignments, but the department calls and the number of calls their office Co-Chair; Senators Charlie Borders, R.J. cal education; sex offender treatment; was unable to provide this information receives is increasing. Palmer II, Joey Pendleton, Dan Seum, and substance abuse programs. Infor- because it is not routinely entered into Senator Stine asked Dr. Pollock and Katie Stine; Representatives Dwight mation on inmates who use these pro- KOMS. whether he knew if the Attorney Gen- D. Butler, Ruth Ann Palumbo, Rick Rand, grams and services is not entered in the Staff’s recommendation 3.1 is that eral’s Office has some oversight of cem- Arnold Simpson, and Ken Upchurch. Kentucky Offender Management System. the department should enter each in- eteries. Legislative Guest: House Speaker Thus, the department is unable to mea- mate’s job and program assignment in Dr. Pollack said that he knows they Jody Richards. sure and report systemwide outcomes of KOMS and update the information when often assist people with ingress and Guests: Kimberly Potter-Blair, Dep- its programs. an inmate’s work or program status egress, and that they also enforce the uty Commissioner for Support Services; She said that the Department of changes. cemetery laws that say that the person Al Parke, Deputy Commissioner for Adult Corrections, which is responsible for in- Ms. Upton said that from FY 2004 who owns a cemetery is responsible for Institutions; James Van Nort, Assistant carcerating persons convicted of felony to FY 2008, inmates earned more than maintaining it. Director of the Division of Mental Health; offenses, operates 13 state prisons and 4,400 vocational and technical certifi- Mr. French said that consulting Lee VanHoose, Director of the Division contracts with Corrections Corporation cates and more than 1200 diplomas, but firms that actively do archaeological in- of Probation & Parole; Mavis McCowan, of America to operate 3 additional pris- the department was unable to determine vestigations perform a full range of cul- Pre-release Coordinator; Wendy Hayden, ons. The department also contracts with how many persons earned them. tural resource services. The companies Branch Manager for Home Incarceration 75 local jails to house certain minimum Recommendation 3.2 is that the are hired, for example, by the Kentucky Program and Re-Entry Efforts; Depart- custody inmates and is responsible for department should enter each inmate’s Transportation Cabinet to identify what ment of Corrections. supervising persons released on proba- educational achievements in KOMS and known and previously owned cultural LRC Staff: Greg Hager, Committee tion and parole. update the information when an inmate’s resources, whether archaeological sites Staff Administrator; Rick Graycarek; Jim Ms. Upton said that from Fiscal Year educational status changes. or standing structures, might be located Guinn; Christopher Hall; Colleen Kenne- 1998 to Fiscal Year 2008, annual admis- Ms. Upton said the department of- within a project area. They also make as- dy; Van Knowles; Jean Ann Myatt; Tara sions to the department’s custody in- fers a Substance Abuse Program, but the sessments whether or not they believe Rose; Cindy Upton; Stella Mountain, creased 86 percent and annual releases number of inmates who qualify exceeds additional research is warranted, and Committee Assistant. increased 146 percent. During FY 2008, the department’s ability and resources whether or not sites are significant. They Upon motion made by Senator on average 42 persons were admitted and to serve them. The department was un- always operate in consultation with the Pendleton and seconded by Senator 46 released each day. The 16,915 persons able to provide the number of persons archaeologist on staff of the agency they Palmer, the minutes of the September released in FY 2008 had been convicted who had completed the program. are working for. 11, 2008 meeting were approved by of committing more than 38,000 felo- Recommendation 3.3 is that the Representative Meeks asked how voice vote, without objection. nies, nearly one-third of which were for department should enter each inmate’s many consultants there are in Kentucky. Senator Harris asked Representative violations of Kentucky’s controlled sub- acceptance into the Substance Abuse Mr. French said there are about 100. Simpson to speak in memory of Repre- stances statute. About one-fourth of the Program in KOMS and update the infor- There are four or five major firms. At sentative Larry Belcher. convictions were for burglary and theft. mation when the inmate completes or AMEC they have 30 full-time employees Cindy Upton presented the report Ms. Upton said that the depart- exits the program, including the reason on staff in Kentucky, and about another Reentry Programs for Felons Should Be ment’s information system, called the for exiting the program. 100 on-call seasonal employees who Improved and Outcome Measures Should Kentucky Offender Management System Ms. Upton continued by saying help with projects during the summer- Be Developed. (KOMS), has been in use since May 2007. that KRS 197.400 requires the depart- time. Ms. Upton said that the study had It has not been fully implemented, much ment to provide a Sexual Offender Treat- Representative Meeks asked wheth- two major objectives: describing the information is not routinely entered into ment Program for persons convicted of er some of these consultants could re- Kentucky probation and parole system the system, and local jails do not have sex crimes defined in KRS Chapter 510. spond to some of the needs and calls for and the current process for returning and the ability to add information to it. The Sexual offenders on probation or five- preservation that the state is getting. reintegrating incarcerated felons into lo- department requested funding to finish year conditional discharge are required Mr. French replied that most archae- cal communities; and evaluating the ef- the programming for the system, but the by KRS 532.045 to complete and pay for ologists will volunteer and help out as fectiveness of the current process for request has not yet been approved. a community-based treatment program. needed but it would really be difficult for returning and reintegrating felons into Ms. Upton continued that from FY She said the number of Sexual Offender a private consultant dedicated to full- local communities. 1998 to FY 2008, 71 percent of people Treatment Program completions is low time work to do that. Ms. Upton said that the report has entering prison had been convicted of compared to the number of persons Senator Harris announced that the two major conclusions. The first is that committing new felonies, and 27 per- incarcerated for sexual offenses. Since next committee meeting is on October the Department of Corrections’ reentry cent for violating the conditions of their 2001, the number of sexual offenders 9, with a scheduled report on reentry of programming should be strengthened. probation or parole. In FY 2008, of the has increased on average 5 percent each felons into society on the agenda. He The formal reentry program is not offered persons entering prison, 83 percent were year. Program Review staff asked the de- asked staff to pass out the list of sug- consistently among prisons and is not male; 72 percent were Caucasian and 26 partment for the recidivism rate for sex- gested study topics that have been re- available in jails. Department staff who percent were African American; 70 per- ual offenders, which is required by KRS ceived. present the program have additional job cent were 21 to 40 years old; and 72 per- 197.420. The department was unable to He asked for a moment of silence in responsibilities. The department should cent were single, divorced, or separated. provide the information. recognition of victims of the terrorist at- dedicate staff to work only on reentry Nineteen percent had graduated from Recommendation 3.4 is that the de- tacks in New York and Washington D.C. programming and to provide individual high school, 41 percent had not, and the partment should enter each inmate’s ac- in 2001. assistance to persons who need it. Staff educational status was unknown for 33 ceptance into the Sexual Offender Treat- The meeting was adjourned at also should be dedicated to work with percent. ment Program in KOMS and update the 11:50am. employers, housing owners and provid- Under the provisions of state law, information when the inmate completes ers, and other providers of services to most persons convicted of a Class D or exits the program, including the rea- identify specifically where a released fel- felony and some convicted of a Class C son for exiting the program. PROGRAM REVIEW AND on may be able to get a job, find a place felony will serve their sentences in lo- She said that prison inmates have INVESTIGATIONS to live, and/or obtain substance abuse or cal jails. The proportion of inmates in an opportunity to attend a pre-release COMMITTEE mental health treatment. These efforts county jails increased from 23 percent in program, commonly known as “Prison Minutes will smooth people’s transition from FY 1998 to 34 percent in FY 2008. In FY to the Streets.” Typical subjects include October 9, 2008 prison to the community. 2008, 67 percent of releases were per- preparing for job interviews, how to fill The Program Review and Investiga- The second major conclusion is that sons who had been convicted of Class out job applications, resume writing, tions Committee met on Thursday, Oc- the only outcome measure the depart- D felonies. This affects post-release suc- stress management, housing options, tober 9, 2008, at 10:00 AM, in Room ment currently reports is the recidivism cess because more programming is avail- and utilizing community resources. The

44 2008 Interim LEGISLATIVE RECORD components of the program vary among skill; obtaining transportation because programs, deal more with the conditions after 1998 has a 3-year conditional dis- institutions in terms of content and the released felon’s operator’s license of parole supervision. charge, or if after 2006, a 5-year condi- duration. Some prisons spend 16 to 20 may have expired or been suspended; Representative Palumbo asked for tional discharge. They then re-enroll in hours on reentry programming; others paying court-ordered restitution, fines clarification of technical parole viola- a treatment program in the community spend only 1 to 5 hours. The program and fees; and trying to get voting rights tions. with some adaptations necessary for the typically is not available to state inmates restored. She said that some challenges Ms. Upton said that technical viola- community. The department assists as in jails. are similar to those faced by much of the tions were for behaviors that would not best as possible with finding work and Recommendation 3.5 is that the population but some are not. For exam- be against the law otherwise, but were locating housing. department should require the use of a ple, persons with substance abuse con- violations of the conditions of parole, Representative Butler said that his standardized reentry program that fo- victions may be unable to obtain federal such as drinking alcohol. understanding was that there were wait- cuses on a person’s community knowl- education grants, loans, or work assis- Representative Palumbo asked ing lists for programs and asked whether edge and skills to enable released felons tance. Many restrictions are imposed for about percentages not accounted for on more staff were needed. to reenter society as smoothly as pos- housing assistance for ex-felons. Some the slide on reasons for release. Mr. Parke replied that more resourc- sible. The program should be of sufficient statutes for occupations and professions Ms. Upton replied that 5 percent es would be useful. Some prisons do duration to ensure adequate coverage of preclude felons from having licenses and absconded and 2 percent were released have a waiting list, others do not, so that required topics and should be offered in certificates or from being employed. for other reasons. becomes a transfer issue to try and dis- all prisons and county jails that house Ms. Upton said incarcerated fel- Representative Palumbo asked for tribute some inmates to other facilities. state inmates. ons would benefit from individualized clarification on how little opportunity Representative Simpson comment- Ms. Upton continued that one- pre-release and post-release assistance. prison staff have to work with individu- ed that he did not understand why the third of convicted felons return to prison However, each prison conducts its own als who are going to be released. statutory mandate noted by Senator within 2 years from being released, which version of the department’s reentry pro- Ms. Upton said that she was not Stine has been ignored. includes people returning to prison be- gram, and felons housed in county jails aware of a single prison that has one Dr. Van Nort said he did not know cause of new felony convictions and receive little or no reentry programming. person whose only task is working with where the system broke down or who technical violations of the conditions of This system not only fails to meet cer- people who are going to be released. stopped collecting data. probation or parole. tain inmates’ needs, but it also increases Senator Stine asked why the re- Representative Simpson requested Ms. Upton said that from FY 2007 pressure on probation and parole officers. quirement in KRS 197.420 (6) that the that the department report back to the to FY 2008, releases increased by 21 Incarcerated felons would benefit from department report the recidivism rate for committee about this breach of respon- percent. The number of releases is likely more and better-coordinated academic, sex offenders was not being met. sibility. He asked for members from the to increase because of provisions in HB vocational, and technical programs. Ms. Upton said that staff had not department present to comment on each 406 of the 2008 regular session of the Waiting lists for education and training been able to get that information. recommendation made in the report by General Assembly. As of September 11, prevent some inmates from participat- Senator Seum gave an example of LRC staff. 2008, 1,416 felons had been released in ing, although when inmates participate, someone who had committed a felony Senator Harris asked LRC staff to accordance with the temporary provi- they later find that many employers will a long time ago and has since finished prepare a letter for the co-chairmen to sions of HB 406. not hire convicted felons. Individualized nursing school and is looking for a job. sign that would direct a response from Ms. Upton said that HB 683 of the assistance and more programming may He asked whether state law prohibited the Department of Corrections by the 2008 regular session added two full-time require additional resources for a time; her from working in a nursing home or next committee meeting on the issue Parole Board members and allows the however, the department should later other health care facility. raised by Senator Stine and Representa- board to conduct file reviews of certain realize savings from reduced recidivism. Ms. Upton said that prohibitions tive Simpson as to why KRS 197.420 (6) Class C felons eligible for parole without Recommendation 4.1 is that the apply to nursing home-type facilities and is not being followed. holding a formal hearing. department should dedicate staff at that it would depend on the felony. Senator Seum asked whether Ms. Upton said offenders released each prison and staff to work with local Representative Butler asked for plumbing and electrical is taught in the to community supervision are classified jails to provide individualized assistance more details on the Arizona program de- prisons. into a supervision level based on their to persons with significant pre-release scribed in the report. Mr. Parke replied that they are in a probability for additional criminal activ- and post-release needs. The assistance Ms. Upton said that she could get few institutions. ity. In FY 2008, on average, 13 percent should include interaction with commu- more information for him. Senator Seum asked whether a per- of cases were classified as high risk, 46 nity providers to ensure that necessary Representative Upchurch asked son can get a license if he completes percent were moderate risk, 23 percent services are available to released felons. whether statistics were available on such training in the prison system, and were low risk, and 11 percent were on Recommendation 4.2 is that the which other felonies committed were whether he can work in the trades. administrative level of supervision. On department should dedicate staff to drug related. Mr. Parke replied that if the trades average, 680 new offenders entered the contact potential employers across the Ms. Upton said that the data used will accept that person, he can go to system each month awaiting classifica- state, assess the vocational and techni- in the report would not indicate this. work. tion. cal skills their employees must have, and Senator Harris asked about the Senator Seum asked whether they Ms. Upton continued that some encourage employers to hire released fel- implementation of KOMS and when it are prohibited for some reason. persons convicted of felony offenses ons who have those skills. The depart- would be fully operational. Mr. Parke said that to his knowledge serve part of their sentences on home in- ment should provide appropriate train- Ms. Potter-Blair replied that it they are not prohibited, but would de- carceration. In FY 2008, 1,093 offenders ing to inmates, encourage inmates to should be completed within two years. pend on the trades. were released to home incarceration. participate in it, and inform inmates of Senator Stine repeated her ques- Senator Seum expressed his concern Persons being released from incar- employers who have expressed a willing- tion as to why the requirement in KRS about all the stumbling blocks for people ceration face a number of challenges. ness to hire them. 197.420 (6) that the department report coming out of prison. Some challenges relate specifically to the Ms. Upton concluded with an over- the recidivism rate for sex offenders was Senator Harris asked for comments type of felony conviction. Compounding view of research on the effectiveness of not being met. by Department of Corrections staff on the problems, the department has no types of reentry programs and reentry No one from the department could the recommendations. statewide system for easing the transi- programs in other states. explain why the statute was not being Ms. Patter-Blair said they agree with tion from prison to the community. A Senator Harris asked whether there met. recommendations 3.1, 3.2, and 3.3, and probation or parole officer may help in- is any commonality among prisons in Representative Butler enquired will implement the changes into the dividuals, but with an average caseload their pre-release programs that are of- about treatment programs in the pris- Kentucky Offender Management System of 94 persons, the amount and quality of fered across the system or whether each ons. as funds are available. that help vary. prison has to come up with its own pro- Mr. Parke replied that treatment is Mr. Parke added that KOMS needs Challenges include obtaining mental gram and they are on their own. performed in a group format of about to be completely developed before that health and substance abuse treatment; Ms. Upton said there is a group of 8 offenders per group. The prison and data can be entered and collected. finding suitable housing and dealing topics, which normally covers things like community programs try to accept and Ms. Patter-Blair agreed with recom- with additional housing barriers for sex- filling out a job application and writing take in as many sex offenders as possi- mendation 3.4 and said that they are al- ual offenders; finding employment, even a resume. She said the most commonly ble. When they complete the treatment ready collecting that data in KOMS. if the released felon has a trade or job covered topics, especially for the shorter program in a prison, anyone convicted Ms. McCowan, responding to Rec-

THE KENTUCKY GENERAL ASSEMBLY 45 ommendation 3.5, said that “Prison to previous studies on the Medicaid Man- the Transportation Cabinet, the Cabi- roads, and that 32 states limit operation the Streets” has a standardized shell agement Information System and the net had agreed to changes to 601 KAR to roads with speed limits not exceeding that all of the institutions are required to highly skilled educator program. 13:070. Chairman Collins said that he 35 mph. He said that most of the states utilize. Some institutions have the op- The next meeting is scheduled for would therefore entertained a motion to make explicit reference to these low- portunity to enhance the program. The November 13. defer the regulation to the Committee’s speed vehicles having to comply with department is going to make sure that The meeting was adjourned at next meeting in order to address these the Federal standards. this is standardized in every institution. 11:45am. changes. Senator Roeding moved to de- Chairman Collins asked if the Cabi- Mr. Parke said that they have started fer Administrative Regulation 601 KAR net had any accident statistics on these developing a model for the re-entry pro- 13:070. Representative Lee seconded types of vehicles. Mr. Shipp stated that gram that will start when the offender INTERIM JOINT COMMITTEE the motion, which passed by voice vote. he did not, but would see that the Com- enters the prison system. It will be the ON TRANSPORTATION The next item on the Committee’s mittee received that information. major initiative to help prevent inmates Minutes of the Fifth Meeting agenda was a presentation on the regis- Committee members raised several from returning to prison. The department of the 2008 Interim tration of low-speed electric and alterna- questions regarding golf carts operating has just appointed a branch manager for October 7, 2008 tive vehicles, by Todd Shipp, Sr. Counsel on specified roadways where there were reentry. He commented that the Depart- The fifth meeting of the Interim and Special Assistant; and Dan Glass, no golf courses within the regulatory ment of Corrections cannot do this by Joint Committee on Transportation was Commissioner, and Willie Payton, Direc- five road mile radius. It was stated that itself but it will have to collaborate with held on Tuesday, October 7, 2008, at tor, Division of Motor Vehicle Licensing, some cities, without golf courses in their other state agencies. 1:00 PM, in Room 171 of the Capitol Kentucky Transportation Cabinet. Com- areas, have adopted city ordinances to Ms. Patter-Blair said they accept Annex. Representative Hubert Collins, missioner Glass said that the National allow for the use of golf carts on their recommendations 4.1 and 4.2. They cur- Chair, called the meeting to order, and Highway Traffic Safety Administration city roadways. Mr. Shipp stated that he rently do the home incarceration pro- the secretary called the roll. (NHTSA) defines low-speed vehicles as viewed these city ordinances to be in gram, but they need to help released Present were: any 4-wheeled motor vehicle whose top violation of state statutes, because the persons more in obtaining state iden- Members: Representative Hubert speed is greater than 20 mph, but not statutes state that golf carts are only al- tification. At present the classification Collins, Chair; Senators Charlie Borders, greater than 25 mph. He said there are lowed to travel on specified roadways and treatment officers under the home David E. Boswell, Bob Leeper, R.J. Palm- a number of states who have adopted that are within a five road mile radius of incarceration program are negotiating er II, Dick Roeding, and Damon Thayer; the NHTSA standards, which also re- a golf course. with different employers to hire convict- Representatives John A. Arnold Jr., Ed- quire head and tail lamps, as well as stop The next item on the Committee’s ed felons but a greater community effort die Ballard, Leslie Combs, Tim Couch, lamps; front and rear turn signals; red re- agenda was a presentation on hybrid ve- needs to be made. Jim DeCesare, Keith Hall, Richard Hen- flex reflectors; exterior/internal mirrors; hicle warning systems. Testifying before The report Reentry Programs for Fel- derson, Melvin B. Henley, Jimmie Lee, parking brake; windshield; vehicle iden- the Committee on this topic were Pamela ons Should Be Improved and Outcome Charles Miller, Lonnie Napier, Sannie tification number; and seatbelts. Roark Glisson, Executive Director, Inde- Measures Should Be Developed was ac- Overly, Marie Rader, Sal Santoro, Arnold Commissioner Glass drew the mem- pendence Place, Inc.; and Robert Stras- cepted upon motion by Representative Simpson, Ancel Smith, Jim Stewart III, bers’ attention to several motor vehicles sburger, VP Safety & Harmonization, Simpson and seconded by Representa- Greg Stumbo, Tommy Turner, and John that could pose difficulties when drafting and Judith Taylor, Alliance Automotive tive Rand, without objection by roll call Vincent. legislation for low-speed motor vehicles. Manufacturers. vote. Guests Appearing Before the Com- He stated that these vehicles were mo- Ms. Glisson stated that most vi- Representative Rand asked whether mittee: Pamela Roark Glisson, Executive torcycles, mopeds, golf carts, smart cars, sually impaired individuals operate by privately run facilities use a different in- Director, Independence Place, Inc.; Rob- Apteras, pocket bikes, spyders, and zap audible information processing. She formation management system than the ert Strassburger, VP Safety & Harmoniza- cars. He said that all of these cars have said because hybrids are so quiet they state does. tion, Alliance Automotive Manufacturer. characteristics that could cause difficul- cause safety issues not only to the blind Ms. Hayden said the private facili- Representing the Kentucky Transporta- ties in crafting statutes that adequately population but to other individuals as ties use a different system but they are tion Cabinet were: Mike Hancock, Chief define acceptable vehicles for highway well. Ms. Glisson stated that children required to have an interface with KOMS Highway Engineer, Todd Shipp, Sr. Coun- use. In naming a few, Commissioner are taught at an early age that when ap- or keep KOMS up to date. sel and Special Assistant, Dan Glass, Glass said that some motorcycles now proaching a street corner to stop, look, Representative Rand asked wheth- Commissioner, and Willie Payton, Direc- have what is called “training wheels” and listen for traffic before stepping out er their system is more advanced than tor, Division of Motor Vehicle Licensing, that are stationary on the bikes, chang- to cross the street. She said that with KOMS. Doug Sutton, Assistant Director, Driver ing that vehicle’s characteristics from a the hybrid cars, the noise factor has Ms. Hayden said she did not think Licensing, and John Wilcoxson, Branch 2-wheeled to a 4-wheeled vehicle; and been eliminated. so. Manager, Pavement Branch, Division of mopeds, which are characterized as a Ms. Glisson stated that according to Representative Simpson asked how Maintenance. motorized bicycle whose frame design a University of California, Riverside Press important it is to the department to fund LRC Staff: John Snyder, Jim Roberts, may include one or more horizontal Release “hybrid cars operating at very KOMS completely, how much they need, and Linda Hughes. crossbar, has the same characteristics as slow speeds must be 40 percent closer and whether they have asked for more Before opening the meeting to testi- a pocket bike, which the Cabinet states to pedestrians than combustion-engine funding. mony, Chairman Collins asked for a mo- should never be allowed on state roads vehicles before their location can be au- Ms. Patter-Blair said it is important ment of silence for State Representative because of safety. dibly detected. Those findings have im- to fund KOMS and it has been request- Larry Belcher, a Committee member, who Commissioner Glass stated that plications for pedestrians who are blind, ed in the past. She could not give the was killed in an automobile accident the last session’s Senate Bill 93 defined golf runners, cyclists, small children, and amount of funds still needed but could night before. carts as having a designed speed capable others.” obtain that information. Following the moment of silence of not more than 35 mph, and restricted Mr. Strassburger stated that auto- Mr. Parke said that KOMS is recog- and several members speaking on be- the operation of golf carts to roadways motive industries, worldwide, are deal- nized as one of the better offender man- half of Representative Belcher, Repre- within five road miles of an entrance to ing with this dilemma. A dilemma he agement systems in the U.S.A. and once sentative Arnold moved to approve the a golf course, and increased their wheel said that they did not foresee when de- funding has been received to complete Committee’s August 5, and September requirements to a minimum of four veloping the hybrid automobile. He said the system, it is probably going to be the 26, 2008 minutes, as submitted. Rep- wheels. Commissioner Glass cautioned that for the last 30 years, the automo- best system in the United States. resentative Miller seconded the motion, the Committee that some individuals tive industry has been researching ways Senator Harris said the committee which passed by voice vote. might interpret the NHTSA definitions of to offer a quieter vehicle. As a matter looks forward to continue to work with Deviating from the Committee’s low-speed motor vehicles to include golf of fact, he said that $25 of the price of the department and possibly looking at agenda, Chairman Collins referred the carts. He reminded the members that every new car sold today goes into the KOMS again in 2 years or so. Committee’s attention to Agenda Item golf carts are not currently required to be research for quieter cars. Senator Harris closed by saying that VI., a review of Administrative Regula- titled or registered. Mr. Strassburger said that with the at the next meeting the committee could tion 601 KAR 13:070, promulgated by Commissioner Glass ended his tes- soaring gasoline prices, the industry re- begin to choose topics it wants staff to the Transportation Cabinet. He stated timony by saying that 40 states now sponded by developing the hybrid auto- review. Consideration should be given to that there were concerns voiced regard- have statutory authority for low-speed mobile. However, with the development having staff do substantial follow-ups to ing this regulation and after meeting with vehicles to operate on certain types of of hybrids came an entirely new problem,

46 2008 Interim LEGISLATIVE RECORD the quietness, or lack of sound. The in- TOBACCO SETTLEMENT jelly, or salsa processors. riod under examination; and GOAP did dustry now finds itself, after 30 years of AGREEMENT FUND The $50,000 Buffalo Trace Area not have adequate documentation pro- research for a quieter vehicle researching OVERSIGHT COMMITTEE Development District project aimed at cedures in place to ensure project modi- ways to add sound to their hybrid vehi- Minutes hillside reclamation prompted Senator fications were properly noted and com- cles. He said that this in-depth research September 12, 2008 Gibson to ask about the use of federal municated to the ADB. has been underway for the last year and The meeting of the Tobacco Settle- funds in conjunction with the state to- The issue came to light as a result results should be available in the next ment Agreement Fund Oversight Com- bacco settlement funds. According to of a study being undertaken by the Uni- year to year and a half. Mr. Strassburger mittee was held on Friday, September 12, the GOAP officials, federal funds could versity of Kentucky that looked at the stated that the automotive industry un- 2008, at 8:30 AM, in the Weldon Room be used, but not as a part of the cost- efficiency and effectiveness of Rural De- derstands the Federation for the Blind’s at the E.S. Good Barn at the University share. Those applying for funds would be velopment Fund grants and loans, Mr. concerns and is working deligently to ad- of Kentucky. Representative Rick Rand, required to share the cost of reclamation Thomas said. Concerns were raised in dress those concerns. Chair, called the meeting to order, and work on a 50-50 basis. some areas, particularly regarding the Al- Representative Overly asked when the secretary called the roll. Following the projects review, Chair- lied contract. Mr. Thomas told the com- the general public could anticipate this Present were: man Rand recognized Senator Pendleton mittee that after he joined the GOAP in technology being incorporated into the Members: Senator Carroll Gibson, who asked about the rationale of the early January, agency staff began exam- hybrid automobile design. Mr. Stras- Co-Chair; Representative Rick Rand, ADB’s approval in June of $200,000 in ining the Allied contract. Eventually the sburger stated that the research should Co-Chair; Senator Joey Pendleton; Rep- state funds for the Kentucky Agricultural board asked the Auditor of Public Ac- be completed in another year to year and resentatives Royce W. Adams, James R. Council (KAC) to coordinate, implement, counts to review the contract. a half and then it would take another 18 Comer Jr., Charlie Hoffman, Tom McKee, and continue development of the “Stra- According to the GOAP official, in months or so for that technology to be and Tommy Turner. tegic Plan for Agriculture” over a two- hindsight the mistakes should not have designed and installed into the hybrid Guests: Dean Scott Smith, Dr. Nan- year period. According to the senator, been made, but the endeavor was a new automobiles. He said that there is no cy Cox, and Drew Graham, University of the funding would lead to the creation initiative aimed at addressing a need fast and easy solution to this problem Kentucky; Roger Thomas, Joel Neaveill, of a new entity and a new level of bu- in Kentucky, that of getting producers’ and that it would take time correct. Michael Judge, Angela Blank, Christi reaucracy. products to market. Mr. Strassburger closed by repeating Marksbury, Todd Harp, Jennifer Hudnall, Mr. Thomas gave some background The audit contained several recom- that the automotive industry is aware of and Diane Fleming, Governor’s Office on the creation of the plan, which was an mendations, most of which the agency the “lack of sound” problem with the of Agricultural Policy; Dennis Griffin, outgrowth of the Task Force on the Fu- agreed to. Mr. Thomas indicated that operation of hybrid vehicles and is work- Wayne Hunt, Rodney Dick, Sam Lawson, ture of Agriculture, and was made up of GOAP staff viewed the audit and result- ing diligently to correct the situation. and Troy Rankin, Agriculture Develop- a number of agriculture-related groups. ing recommendations as an opportunity The last item before the Committee ment Board; Dr. Jay Perman, M.D., Uni- The KAC administered the task force to improve the process. In particular, Mr. was the presentation on asphalt dura- versity of Kentucky School of Medicine, using staff support from the GOAP and Thomas discussed ways his staff would bility by Mike Hancock, Chief Highway Dr. Robert T. Means, Jr. M.D., Lewis Kelly, Department of Agriculture (KDA). Ac- be attempting to tighten up GOAP con- Engineer, and John Wilcoxson, Branch Ph.D.; Markey Cancer Center; John W. cording to Mr. Thomas, the KAC would tracts and legal agreements. He said Manager, Pavement Branch, Division of Eaton, Ph.D., Brown Cancer Center; Nick continue to guide implementation of there are over 200 non-model contracts Maintenance, Kentucky Transportation D’Andrea, University of Kentucky. the plan. The agricultural development that will need to be modified to meet the Cabinet. LRC Staff: Lowell Atchley, Stefan funds would be used to pay for profes- audit recommendations contained in the Mr. Hancock said that the per- Kasacavage, Susan Spoonamore, and sional services, interim management, audit. centage of interstate pavements in fair Kelly Blevins. administrative, and other expenses. He In committee discussion, Co-chair or better condition fell by 8 percent in The meeting began with welcoming said there was hesitancy in having the Rand complimented the agency for be- 2007, the second largest drop in the past remarks by Dr. Scott Smith, Dean of the group attached to the GOAP or KDA to ing proactive and asked about the cur- twenty years; while the parkway system University of Kentucky, College of Agri- not give the appearance of it being a po- rent status of the Allied contract. Mr. improved by 18 percent during that same culture. Minutes of the August 6, 2008 litical or state-driven effort. Thomas said the last contract expired on year. He said that pavements generally meeting were approved, without objec- The discussion revealed that appli- June 30 and was not renewed. Another last 12 to 14 years between resurfacing tion, by voice vote, upon a motion made cations were sought for an entity to take Allied application for funding has been treatments. by Senator Pendleton and seconded by on the on-going project. Also, terms for put on hold. Mr. Hancock commented that with Representative McKee. the second year of funding call for the In response to another question, Mr. the price of asphalt skyrocketing, the The presiding chair, Representative KAC to raise $25,000 in member dues. Thomas said he did not want to judge Cabinet used 1¼ inch of asphalt for their Rand, asked Mr. Roger Thomas, Execu- Senator Pendleton responded that the value of Allied’s work, rather wanted resurfacing of roads last year, as opposed tive Director, Governor’s Office of Agri- he thought the GOAP and KDA were ca- to wait until UK completes its evalua- to the 1½ inches it had used in past cultural Policy (GOAP), to report on the pable of seeing the project through. He tion. Although he did say that markets years. He said while this saved about projects considered for funding during asked about accountability if the project were opened to Kentucky producers that 1/6 of the tonnage used by the state, the the August Agricultural Development is not housed with the state executive would not have been opened, had it not increased cost of asphalt still raised the Board (ADB) meeting. Accompanying bodies. He subsequently said he would been for the Allied contract. One exam- overall price the state paid last year to him was Mr. Joel Neaveill, Chief of Staff, have no problem with someone with the ple cited was a deal to place Kentucky asphalt its roads. When asked, Mr. Wil- and Mr. Mike Judge, Director of Opera- GOAP or KDA overseeing implementa- producers’ products in Rempke grocery coxson stated that asphalt cost around tions. tion of the project. But Mr. Thomas said stores. $70 per ton in competitive areas and as Mr. Judge reviewed the county the GOAP did not have the staffing avail- Representative McKee commended much as $80 per ton in rural areas where model program list and the listing of able to carry forth the effort. Mr. Thomas and the board for recogniz- there is no competition. state projects receiving funding approv- Following that discussion, Mr. ing a problem and clearing the air on the Representative Smith asked if the al and denied funding at the previous Thomas turned to a recent Auditor of situation. What is important, the rep- Cabinet practiced milling (adding a por- ADB meeting. Responding to a question Public Accounts examination of con- resentative said, is to not let the Allied tion of old asphalt to the new asphalt from Representative Comer about the tracts awarded by the board to Allied incident tarnish the image of the GOAP mixture) when asphalting. Mr. Hancock Chaney’s Dairy Barn project, Mr. Judge Food Marketers West Inc., Louisville, for and the work being done to diversify said yes that the Cabinet did practice said that, because Chaney’s sought a a period of May 2005 to March 2008. Kentucky agriculture. this procedure. He said there was a per- second round of state funding, the board The board granted $4,891,561 in grants According to Mr. Thomas, they centage formula the Cabinet used for decided to approve the use of Warren and loans to the company. Findings in would be hard-pressed to find a program milling, but he did not have that infor- County funds on the project, but not to the audit included: the ADB’s contract anywhere comparable to Kentucky’s ag- mation with him. award state funds, instead direct the ap- with Allied was not sufficient to protect ricultural diversification program. With no further business before the plicant to other funding avenues. the Commonwealth’s interest in mul- As discussion continued, Senator Committee, the meeting adjourned at Mr. Judge pointed out to Senator tiple areas; a conflict of interest existed Gibson cautioned the agency to adhere 2:35 p.m. Gibson that a Jessamine County Fiscal in Allied’s second ADB contract; GOAP to the recommendations offered by the Court project would provide a place for did not have adequate monitoring pro- State Auditor. According to the senator, producers to safely and legally process cedures in place to detect or prevent similar problems in the future would in- their products. He gave examples of jam, grantee misappropriation during the pe- vite close scrutiny from the committee.

THE KENTUCKY GENERAL ASSEMBLY 47 Representative Comer mentioned ignation, which will be important once funds, but by the time it came to the that when the contract was first ap- achieved. state board for consideration, the local proved, he supported the concept, but In his remarks, Dr. Eaton, said the TOBACCO SETTLEMENT funds were exhausted. Representative the cost of the contract seemed exces- Brown Cancer Center continues to grow AGREEMENT FUND McKee asked about a project being de- sive. He said the endeavor may have and expand and has obtained a more OVERSIGHT COMMITTEE nied with a high priority from the local accomplished some good things, but than 200-fold growth in research funding Minutes level. According to Mr. Thomas, county asked if producers received sales com- since 1999. The speaker said state sup- October 1, 2008 councils will sometimes give a project parable to the value of the contract. Mr. port has been critical for the Brown Can- The 10th meeting of the Tobacco a high priority for funding, realizing the Thomas said he wanted to wait until the cer Center’s growth because of tobacco Settlement Agreement Fund Oversight state board may deny it because the UK study is complete before consider- funds appropriated to the Lung Cancer Committee was held on Wednesday, project does not comply with board’s ing the cost benefits. He reiterated that Research Program, appropriations to the October 1, 2008, at 10:00 AM, in Room goals and priorities. markets were opened up because of the Bucks for Brains program, revenues from 131 of the Capitol Annex. Representa- Next, Ms. Fleming spoke to the contract. a part of the cigarette excise tax, grant tive Rick Rand, Chair, called the meet- committee about the board and GOAP’s Responding further to Representa- funding from the Office of New Econo- ing to order, and the secretary called the continuing effort to comply with the rec- tive Comer, the witnesses said the Allied my, as well as new research space. He roll. ommendations contained in the August contract consumed about 10 percent of said the institution is using the funds to Present were: 15 audit of the Allied Food Marketer’s state agriculture development funds over leverage for additional funds. In return, Members: Representative Rick Rand, West project, which raised a number of the span of time it was in effect. It was he said, they have been able to develop Co-Chair; Senators Charlie Borders, Da- issues related to legal agreements, proj- later pointed out that the contract repre- an internationally recognized drug de- vid E. Boswell, and Joey Pendleton; Rep- ect management, and accountability. sented from 75 to 96 percent of Allied’s velopment program, including a cervical resentatives Royce W. Adams, James R. Ms. Fleming is reviewing and re- revenues in those years. cancer vaccine, have created a universi- Comer Jr., Charlie Hoffman, Tom McKee, vising existing contracts and is putting According to Representative Comer, ty-owned biotech company, to establish and Tommy Turner. standards into new contracts as per rec- the program may have made a difference, the Owensboro Research Program, to Guests: Roger Thomas, Joel Neaveill, ommendations by the State Auditor and but he noted it is the committee’s duty fund 10 state of the art multidisciplinary Diane Fleming, Sandra Gardner, and An- the Finance Cabinet. A memorandum to make sure the state gets its money’s clinics, laboratories for clinical research, gela Blank, Governor’s Office of Agricul- outlining what is being done was made worth. and to launch a “Manhattan Project” for tural Policy; Bill McCloskey III and Tim available to committee members. She The witnesses explained the conflict lung cancer diagnosis and prevention. Hughes, Kentucky Agricultural Finance estimated there are about 200 state con- of interest cited in the audit, that of an Following their remarks, Co-chair Corporation; and John Covington, Debby tracts, some dating back to 2001 that Allied employee also being involved with Rand turned to two final speakers, Ag- Milton, and John Herald, Kentucky Infra- will need to be revised, according to tes- a company being assisted by Allied. ricultural Development Board members structure Authority. timony. They will not be revising local, As the discussion ended, Represen- Mr. Dennis Griffin and Mr. Wayne Hunt. LRC Staff: Lowell Atchley, Tanya non-model contracts because they are of tative Turner asked if the issue would be Speaking first, Mr. Griffin said that Monsanto, Stefan Kasacavage, and Kelly a shorter duration. revisited once the UK study was com- from his many years of business experi- Blevins. Co-chair Rand referred to some pre- pleted. Co-chair Rand indicated it would. ence, he saw the need and value of au- Minutes of the September 12, 2008 vious testimony before the committee Mr. Thomas said he wanted to report dits. He said he favored the recent audit meeting were approved, without objec- by county council members, who were periodically on progress being made as of the Allied contract. But Mr. Griffin said tion, by voice vote, upon a motion made critical of the variations in non-model an outgrowth of the recommendations he was concerned about how the board by Senator Pendleton and seconded by contract reporting requirements. In re- contained in the audit. In addition, the was characterized by the State Auditor Representative Adams. sponse, Mr. Thomas described the chal- co-chair indicated that Allied represen- when the audit was made public. Mr. The presiding chair, Representative lenge of dealing with the many contracts tatives could be invited to an upcoming Griffin said he phoned the State Auditor Rand, asked Mr. Roger Thomas, Execu- with program administrators in 118 meeting. to express his displeasure. tive Director, Governor’s Office of Agri- counties of the state. He said it would be The next speakers were Dr. Robert Speaking next, Mr. Hunt first cultural Policy (GOAP), to report on the difficult to have a programmatic “tem- T. Means, M.D., Interim Director of the praised the legislation that established projects considered for funding during plate” that would fit every county. But Markey Cancer Center at the University the agricultural diversification program. the September Agricultural Develop- he said there are specific things that each of Kentucky, and John Eaton, Ph.D., Dep- Before entering into the Allied contract, ment Board (ADB) meeting. Accompa- program administrator has to abide by. uty Director of the Brown Cancer Cen- he said they had struggled to find a mar- nying him were Mr. Joel Neaveill, Chief On another issue, Mr. Thomas told ter at the University of Louisville. The ket for small farm-based producers. He of Staff, and Ms. Diane Fleming, General the committee that about $11 million two speakers updated the committee on said they did not enter into the contract Counsel. in state and county tobacco funds had progress made at the two institutions in lightly and believed they could do some Mr. Neaveill began by reviewing been set aside for the KARE agricultural lung cancer research. good. He indicated that about 187 pro- county model projects, and then turning drought relief effort. Preceding them was Dr. Jay Perman, ducers were assisted under the contract. to state projects approved for funding or Mr. Thomas next introduced Mr. M.D., Dean of the University of Ken- According to Mr. Hunt, they had wanted denied funding during the recent ADB Bill McCloskey and Mr. Tom Hughes of tucky School of Medicine. Dr. Perman to end the contract earlier, but could not meeting. the GOAP to give a presentation on the welcomed the committee to the univer- do so because of the legal agreement in Responding to a question from Co- Kentucky Agricultural Finance Corpora- sity and acknowledged the importance of place. chair Rand about an aquaculture educa- tion. According to Mr. McCloskey, 249 legislators in contributing to lung cancer As the meeting ended, Senator tion project for Lawrence County High loans totaling $26.5 million have been research. Pendleton said regardless of the number School, Mr. Neaveill observed that there approved under the program to date. He Speaking first, Dr. Means discussed of audits performed, one “bad actor” can seemed to be a growing interest in aqua- reviewed the purpose, interest rates, re- some of the components of the Lung create problems. Overall, according to culture in Kentucky high schools. Ac- quirements, and eligible loans available Cancer Research Program. He updated the senator, the agricultural diversifica- cording to Mr. Thomas, Kentucky State under four programs – Beginning Farmer the committee on the Marty Driesler tion program has a worthwhile record. University would be contributing its Loan Program, Agricultural Infrastructure Cancer Project, a lung cancer screen- Representative Comer said his pre- aquaculture expertise to the projects. Loan Program, Coordinated Value-Added ing study, on the Our Lady of Bellefonte vious remarks were not meant to be crit- A project denied funding prompted Assistance Loan Program, and Agricul- Hospital UK lung cancer screening study, ical of the board. But he said he thought some committee discussion. Underwa- tural Processing Loan Program. the solitary pulmonary nodule study at the Allied contract amounts were exces- ter Ranchers LLC was denied $21,500 Thus far, about $4.2 million has UK, the biospecimen core program at sive. in state funds. The company had sought been loaned under the Beginning Farmer the Markey Cancer Center, the Kentucky Documents distributed during the the funds to develop the state’s first red Loan Program, over $12 million under Clinical Trial Network, which has seen committee meeting are available with claw hatchery in Anderson County, but the Agricultural Infrastructure Loan Pro- an increasing number of Kentuckians meeting materials in the LRC Library. The was unsuccessful because of the lack of gram, over $976,000 under the Coor- participating, and on investigator-initi- meeting ended at approximately 10:10 Anderson County funds in the project. dinated Value-Added Assistance Loan ated research. Dr. Means listed a number a.m. Responding to Representative Program, and some $9.3 million in the of studies that could ultimately impact McKee, Mr. Thomas said the project was Agricultural Processing Loan Program. patients. He also said they continue to probably submitted to the local county Following their presentation, Mr. pursue National Cancer Institute des- council, which may have had available Thomas addressed some questions from

48 2008 Interim LEGISLATIVE RECORD Representative McKee, who asked about virtue of having 92 percent of the state to run sewer lines outside city limits be- statewide participation four years ago. the availability of loan funds and loan re- population with access to community cause they are not always assured that Representative Clark asked how quests. Mr. Thomas referred to the cur- water systems. customers will sign up for service. many new voters had been registered rent economic downturn and predicted Mr. Covington said future chal- Documents distributed during the this year. Secretary Grayson said that that, with the availability of affordabil- lenges for KIA include, continuing to im- committee meeting are available with there were more new Democrats in raw ity credit, the demand may be greater prove the drinking water and wastewater meeting materials in the LRC Library. The numbers registering. He said over the in the future than in the past. As the planning process, meeting wastewater meeting ended at approximately 11:30 past five to ten years, Republicans had program continues to grow, Mr. Thom- needs, and maintaining and upgrading a.m. been gaining ground, relatively speaking, as said, funds coming into the program existing infrastructure. but that currently more people are reg- through interest and principal payments Following the presentation, Senator INTERIM JOINT COMMITTEE istering as Democrats. Secretary Gray- will increase, but those moneys will not Borders asked about the possibility of ON STATE GOVERNMENT son said the numbers for mid September address the needs that are prevalent. In public water service increasing beyond Task Force on Elections, 2008, were 1,656,242 registered Demo- the short term, he said, funding will be the current 92 percent coverage. Ac- Constitutional Amendments, and crats; 1,049,459 registered Republi- stable, but later, the KAFC may seek an- cording to Mr. Covington, there are parts Intergovernmental Affairs cans; and 188,598 registered as “Oth- other set-aside of funds from the Agri- of Western Kentucky where less water Minutes of the 1st Meeting ers”, for a total of 2,894,299 registered cultural Development Board. service exists because ground water can of the 2008 Interim voters in Kentucky. In 2004, there were Representative McKee noted the be accessed with wells. However, there September 23, 2008 about 2,794,000 registered voters, so importance of the moneys being made are areas of Eastern Kentucky that do The 1st meeting of the Task Force voter registration has increased by ap- available through the KAFC loan pro- not have water service but are seeking it. on Elections, Constitutional Amend- proximately 100,000 registered voters. grams. Counties in those areas are seeing prog- ments, and Intergovernmental Affairs He stated that 37,000 persons have reg- Mr. Thomas recalled that during the ress made in extending service, accord- of the Interim Joint Committee on State istered since the Primary. crafting of HB 611 in the 2000 General ing to Mr. Covington. Government was held on Tuesday, Sep- Representative Bratcher compli- Assembly, access to capital was deemed Responding further to Senator Bor- tember 23, 2008, at 1:00 PM, in Room mented the secretary on the Kentucky to be an important aspect of the pro- ders, Mr. Covington said water lines gen- 171 of the Capitol Annex. Senator Da- Secretary of State (KYSOS) website. He gram. erally last longer than sewer lines. But mon Thayer, Chair, called the meeting to asked who designed the site. Secretary Senator Pendleton complimented at the same time, water lines placed in order, and the secretary called the roll. Grayson gave credit to John Y. Brown, III Mr. Thomas on the program and pre- areas of significant residential growth Present were: for spearing heading the project when dicted even more loan applicants will be will need to be replaced sooner. Loans on Members: Senator Damon Thayer, Mr. Brown was Secretary of State. He assisted. He commented on the impor- treatment plants are typically for 20-30 Co-Chair; Senators Carroll Gibson, Ernie added that the current KYSOS staff con- tance of restoring the $17 million shifted years, which usually represents the life Harris, Alice Forgy Kerr, and Elizabeth tinues to improve the site and to make from the Agricultural Development Fund a plant. Sewer lines are generally more Tori; Representatives Kevin D. Bratcher, it more user friendly. in the recent budget process. expensive to install than water lines, ac- Mike Cherry, Larry Clark, Tim Firkins, Representative Bratcher asked if ev- In his response, Mr. Thomas said he cording to Mr. Covington, who also said Mike Harmon, Melvin B. Henley, Mary ery single vote had a paper trial. Secre- believes the need remains for the agricul- the availability of sewer service tends to Lou Marzian, John Will Stacy, Kathy W. tary Grayson explained that the voting tural funding. increase the demand for water. Stein, and Greg Stumbo. system is voter verifiable – but that there Co-chair Rand said the KAFC is In continuing discussion, Represen- Guests: Trey Grayson, Secretary of is no “paper trial” per se. He opined that building a strong portfolio and indicated tative McKee emphasized the need to State; Sarah Ball Johnson, State Board of he has confidence in the current voting the program represents a “good invest- assure that watershed sources are suf- Elections; Sarah Jackson, Emily Dennis, systems used in the Commonwealth. ment.” ficient. and Rhonda Farmer, Kentucky Registry Representative Stumbo asked about In closing, Mr. Thomas recognized Representative McKee also asked of Election Finance. standardizing machines statewide and if Mr. Hughes as the first full-time staff about KIA funds that may be unused LRC Staff: Judy Fritz, Bill VanArs- such standardization would be possible, person who worked with KAFC in pub- as projects linger over time. Ms. Milton dall, and Terisa Roland. as well as, a cost saving to the state. licizing the loan program. said some communities wait through Senator Thayer announced three Secretary Grayson replied that currently Next, representatives of the Ken- one funding cycle into another in order new members to the Task Force; Sena- there are three types of machines used tucky Infrastructure Authority, John to obtain additional grant funding. The tors Ernie Harris, Johnny Ray Turner, and in the Commonwealth and that each is Covington, Executive Director, John speakers discussed how they review Ed Worley. supplied and serviced by a different com- Herald, Executive Assistant, and Debby projects that may linger in an attempt Secretary of State Trey Grayson, pany. Such standardization might save Milton, Financial Analyst, appeared be- to move them through the completion and Sarah Ball Johnson, Executive Direc- money but it would require transitional fore the committee to update members process. tor of the State Board of Elections, gave training for poll workers, and would be on the agency’s water and wastewater Responding to questions from Co- updates on the 2008 Primary, and the an effort that would require coordina- funding programs. chair Rand, Mr. Covington discussed how distribution to the counties of the re- tion, input, and cooperation among local The speakers reviewed the history one treatment plant may serve multiple maining Help America Vote Act (HAVA) officials. KIA and the General Assembly’s com- counties. He said they have encouraged funds. Sarah Ball Johnson, Executive Di- mitment of funds, in particular, tobacco regional projects. The speaker described Secretary Grayson reported that rector of the State Board of Elections settlement moneys. They discussed the KIA’s role as that of providing informa- there was record voter participation for (Board) discussed disbursement of fed- local and regional planning that goes tion for the planning process, and pro- the 2008 Primary. He noted that though eral HAVA money. She stated that from into projects, the current status of wa- viding data, but allowing local govern- the final numbers were not yet available, the original $32 million received by the terlines and water treatment plants in ments at the regional level to design for the turnout was approximately 32% or state, $19 million remains, including in- the state, local sources of water, waste- their own needs. maybe higher. He stated that he expects terest earned. She stated that the Board water treatment plants and sewer lines. The speakers responded to the the same for the General Election in No- has obligated $15.8 million to counties They also discussed funding made avail- co-chair that there are many inter-con- vember. to be reimbursed for the purchase of vot- able. According to their report, over the nected systems throughout the state. Secretary Grayson announced ing machines, of which $3.7 million has next biennium, an additional $225 mil- According to Ms. Milton, several budget that before the Primary seven counties already been spent. The remaining HAVA lion in grants will be made available for line items allowed for system intercon- phased out their older voting systems funds will be spent on: voter education; 598 projects. nections. and replaced them with optical scanned funding of on-line absentee voting; and They discussed the General Assem- Regarding the extension of sewer balloting, similar to what Jefferson an upgrade from a main frame data bly’s commitment of tobacco settle- lines, Mr. Covington responded to Co- County has used for twenty years. Sec- system to one that will be web based. ment funds to the agency in 2000, 2003, chair Rand that several factors are in- retary Grayson distributed a chart that (Spread sheet for Voting Equipment and 2005, 2006, and in the recent 2008 ses- volved in extending sewer service. He correlated voter turnout by county. Update on HAVA Disbursements in fold- sion, during which bond funding total- mentioned that the demand for sewer Representative Clark asked for Sec- ers.) ing $150 million was committed for 436 service is not as great as water. Also, retary Grayson’s prediction for the up- Senator Thayer asked when the projects in 83 counties. there are fewer sewer service providers in coming election for voter turnout. He counties reimbursements and other proj- The report also showed that Ken- rural areas. According to Mr. Covington, said it was a little early but he believed ect expenditures would be completed. tucky ranks in the top 5 nationally by municipalities are sometimes reluctant it would be a little higher than the 65% Ms. Johnson said the current Memoran-

THE KENTUCKY GENERAL ASSEMBLY 49 dums of Agreement (MOA) are in effect ment of Military’s secure email system online voter registration and absentee closure requirements. He asked Secre- for the entire biennium. However, she for voting purposes. Kentucky citizens ballot requests for overseas citizens and tary Grayson to comment on Kentucky’s clarified that the HAVA funds were dedi- and military personnel who are overseas, military persons. evaluation. The secretary said that Ken- cated and if the counties had not spent may vote via e-mail thus, cutting the time Chairman Thayer directed the mem- tucky needs additional electronic cam- the money during the timeframe speci- between when an absentee ballot is cast bers’ attention to two handouts distrib- paign finance filing requirements, and fied in the MOA, additional MOA would and when it is received. He said the Gen- uted to the Task Force from the Execu- one more mandatory disclosure report. be executed. She testified that there is eral Assembly had authorized this par- tive Director of the Kentucky Registry of He reminded the members that such a not a deadline when all of the HAVA dol- ticipation and that the Commonwealth Election Finance, regarding an upcoming bill had been proposed during the last lars must be exhausted. was appreciative. He further explained meeting of the Council on Governmen- four Sessions. Secretary Grayson announced that that the KYSOS is partnering with a non tal Ethics Laws to be held in Chicago Chairman Thayer concluded all Kentucky is one of only six states par- partisan group called the Overseas Vote later this year, and an evaluation of each Business and the meeting was adjourned ticipating in a program using the Depart- Foundation. The foundation facilitates state’s statutory campaign finance dis- at 2:00 p.m. 2009 Prefiled Bills

BR 21 - Representative Melvin ry candidate shall not be a registered habilitation tax credit for the amount physical activity in a minimum of 10 B. Henley (06/19/08) independent; amend KRS 117.125 paid to a nonprofit agency or work minute intervals incorporated into the to provide that electronic voting ma- center for work performed by indi- school day; permit the physical activity AN ACT relating to vol- chines be reprogrammed to allow a viduals who are legally blind or se- to include a combination of classroom- untary student expression of registered independent to vote for a verely disabled, define terms; amend based physical activity, structured re- religious viewpoints in public party’s candidates in a primary. KRS 141.0205 to establish the order cess, or other structured physical ac- schools. in which the credit shall be taken. tivities; require the Kentucky Board Amend KRS 158.183 (Prefiled by the sponsor(s).) of Education to promulgate adminis- to permit students to voluntarily To: Interim Joint Committee (Prefiled by the sponsor(s).) trative regulations to implement the express religious viewpoints in on State Government To: Interim Joint Committee physical activity requirement; amend school assignments free from dis- on Appropriations and Revenue KRS 160.345 to conform. crimination and organize prayer BR 28 - Senator Gary Tapp, Sena- groups, religious clubs, or other tor Dan Seum (07/07/08) BR 34 - Senator Tom Buford (Prefiled by the sponsor(s).) religious gatherings before, dur- (07/17/08) To: Interim Joint Committee ing, and after school to the same AN ACT relating to motor ve- on Education extent that students are permitted hicles. AN ACT relating to dona- to organize other noncurricular Amend KRS 186.010 to de- tions. BR 38 - Senator Joey Pendleton student activities and groups; cre- fine “low-speed electric vehicle” and Create a new section of KRS (10/09/08) ate a new section of KRS Chapter amend the definition of “motor ve- 367.170 to 367.300 to require for prof- 158 to require each board of edu- hicle” to include a low-speed electric it entities that collect donated items AN ACT relating to fuel etha- cation to adopt and implement a vehicle; create a new section of KRS for resale to affix a permanent sign on nol-blended gasoline. policy regarding voluntary student Chapter 189 to allow the use of low- the collection bins that states that the Create new section of KRS expression of religious viewpoints speed electric vehicles on highways collections are not charitable in nature 363.900 to 363.908 to define terms; and to establish a limited public with a posted speed limit of 45 miles and do not qualify for a charitable de- require that all fuel terminals that sell forum for student speakers at all per hour or less; require low-speed duction, and that provide the name and gasoline in Kentucky offer for sale, school events at which a student electric vehicles operated on a high- contact information for the entity; pro- in cooperation with position holders is to publicly speak, including way to be insured in compliance with vide that a violation of this section is and suppliers, fuel ethanol-blended graduation; designate procedure KRS 304.39-080, titled in accordance an unlawful act under KRS 367.170; gasoline, fuel ethanol, and unblended for selection of student speakers; with Chapter 186A, and registered as provide that the provisions may be en- gasoline; provide that terminals that require subject of speech to be a motor vehicle in accordance with forced by the Attorney General or the only offer for sale federal reformulat- relevant to event; require district KRS 186.050(3)(a); permit low-speed county attorney. ed gasolines shall be exempt from the disclaimer indicating nonendorse- electric vehicles to cross a roadway requirement to offer for sale unblend- ment of the content of voluntary with a posted speed limit of more than (Prefiled by the sponsor(s).) ed gasoline; permit all fuel retail fa- expressions by students. 45 miles per hour if the intersection is To: Interim Joint Committee cilities, wholesalers, distributors, and equipped with an electric traffic sig- on Judiciary marketers to purchase ethanol from (Prefiled by the nal. any terminal, position holder, fuel eth- sponsor(s).) BR 37 - Senator Katie Stine anol producer, fuel ethanol wholesaler, To: Interim Joint Com- (Prefiled by the sponsor(s).) (06/19/08) or supplier; permit biodiesel-blended mittee on Education To: Interim Joint Committee fuel to be freely mixed or co-mingled on Transportation AN ACT relating to the pro- with conventional diesel fuel and sold BR 24 - Representative Jimmy motion of physical activity in schools. at retail without any penalty, fine, pun- Higdon (08/29/08) BR 33 - Representative Jim Create a new section of KRS ishment, or regulatory impediment; Wayne, Representative Charles 160 to require the Kentucky Depart- and permit fuel ethanol-blended gaso- AN ACT relating to pri- Siler (07/28/08) ment of Education to promulgate an line to be freely mixed or co-mingled maries. administrative regulation to require with unblended gasoline and sold at Amend KRS 116.055 to AN ACT relating to tax cred- all public preschool to eighth grade retail without any penalty, fine, pun- permit a registered independent its for hiring legally blind or severely programs, no later than the 2009-2010 ishment, or regulatory impediment. to vote in the primary of one par- disabled individuals. school year, to implement 30 min- ty for each primary; amend KRS Create a new section of KRS utes per day or 150 minutes per week (Prefiled by the sponsor(s).) 118.125 to provide that a prima- Chapter 141 to create a community re- of structured moderate-to-vigorous

50 2008 Interim LEGISLATIVE RECORD BR 41 - Representative Addia a plan for the storage of nuclear waste tablish that the presumption of pater- (Prefiled by the sponsor(s).) Wuchner, Representative Tom rather than a means for permanent dis- nity is a rebuttable presumption, to To: Interim Joint Committee Burch (07/30/08) posal; define “storage”; amend KRS update the evidentiary language, and on Judiciary 278.610 to delete the requirement that permit an evidentiary showing that AN ACT relating to physical the Public Service Commission cer- a man other than the husband is the BR 68 - Representative Ron activity for children. tify the facility as having a means for father of the child to prove the child Crimm (08/12/08) Create a new section of KRS disposal of high-level nuclear waste; was born out of wedlock; amend KRS Chapter 156 to require the Kentucky change all references to the disposal of 406.021, to clarify how paternity may AN ACT relating to jury ser- Department of education to identify nuclear waste to the storage of nuclear be determined, to add references to vice. and disseminate model resources for waste; repeal KRS 278.605. Family Court, and to permit either Amend KRS 29A.010, relat- integrating physical activity during parent to petition the court for a par- ing to jury service, to define “calendar the school day; encourage schools to (Prefiled by the sponsor(s).) entage determination; amend KRS day”; amend KRS 29A.130, relating utilize certified physical education 406.035, relating to written paternity to limitations on jury service, to in- teachers in the development of physi- BR 49 - Representative Brent orders, to include references to Family crease the interval between eligibility cal activity plans; develop a reporting Yonts (07/18/08) Court judges; amend KRS 406.051 to for jury service from 24 months to five mechanism for schools containing include references to Family Court and years; change “court days” to “calen- grades K-5 to report on results of phys- AN ACT relating to clerks of clarify how an appeal is to be made; dar days” with regard to 30 days of ical activity and wellness programs; the circuit court. amend KRS 406.151, to include the service being required. require the Department of Education Amend KRS 30A.010 to re- county where the child resides as an to report no later than November 1 of quire that the salary of a clerk of the appropriate venue in paternity cases. (Prefiled by the sponsor(s).) each year to the Interim Joint Commit- circuit court be set according to the To: Interim Joint Committee tee on Education and the Interim Joint salary schedule used for local officials (Prefiled by the sponsor(s).) on Judiciary Committee on Health and Welfare; in KRS 64.5275; delay the salary pro- amend KRS 160.345 to require that visions until July 1, 2010. BR 60 - Representative Ron BR 69 - Senator Ray S. Jones II school council wellness policies pro- Crimm (09/04/08) (08/21/08) vide for at least 30 minutes of struc- (Prefiled by the sponsor(s).) tured moderate to vigorous physical To: Interim Joint Committee AN ACT relating to domestic AN ACT relating to the civil activity, 150 minutes per week or the on Judiciary relations and declaring an emergency. rights of deaf and hard of hearing per- equivalent per month; require school Amend KRS 403.200, relat- sons. councils to report progress data; re- BR 56 - Representative Steve ing to temporary orders, to permit a Amend KRS 163.510 to require quire that structured physical activity Riggs (09/02/08) court to provide for wage assignment the Commission on the Deaf and Hard be considered part of the instructional and automatic electronic transfer of of Hearing to advise the Commission day; prohibit exclusion from structured AN ACT relating to motor ve- funds for payment of spousal mainte- on Human Rights on adequate tech- physical activity as a form of disci- hicles. nance; amend KRS 403.270, relating nological means of providing closed pline; encourage schools with grades Amend KRS 186.010 to de- to custodial issues, to add the promo- captioning for motion picture theaters; 6-8 to adopt similar policies; amend fine “low-speed electric vehicle” and tion of a healthy relationship between amend KRS 344.130 to require movie KRS 158.6453 to require inclusion of amend the definition of “motor ve- the child and other custodian or par- theaters with five or more screens to physical activity and wellness data in hicle” to include a low-speed electric ent as a factor for the consideration of provide closed captioning for deaf and school report card; create the Healthy vehicle; amend definition of “motor- awarding custody of children; amend hard of hearing persons; amend KRS Kids Act. cycle” to exclude vehicles that are 3- KRS 530.050, relating to nonsupport 344.190 to require the Commission on wheeled and meet all the requirements and flagrant nonsupport, to add spouse Human Rights to review and approve (Prefiled by the sponsor(s).) of a low-speed electric vehicle; create and former spouse; EMERGENCY. available closed captioning technolo- To: Interim Joint Committee a new section of KRS Chapter 189 to gies and set the minimum numbers of on Education allow the use of low-speed electric ve- (Prefiled by the sponsor(s).) closed captioned showings of a movie hicles on highways with a posted speed To: Interim Joint Committee which must be offered at each covered BR 42 - Representative Melvin B. limit of 35 miles per hour or less; re- on Judiciary theater. Henley (08/05/08) quire low-speed electric vehicles op- erated on a highway to be insured in BR 61 - Senator Ray S. Jones II (Prefiled by the sponsor(s).) AN ACT relating to substance compliance with KRS 304.39-080, ti- (08/21/08) To: Interim Joint Committee abuse screening pilot programs for tled in accordance with Chapter 186A, on Judiciary public assistance recipients. and registered as a motor vehicle in AN ACT relating to driving Amend KRS 205.200 to cre- accordance with KRS 186.050(3)(a); under the influence. BR 73 - Representative Tom ate two pilot substance abuse screen- permit low-speed electric vehicles to Amend KRS 189A.010 to es- Burch (10/15/08) ing programs for recipients of public cross a roadway with a posted speed tablish a per se violation of the DUI assistance. limit of more than 35 miles per hour statute if the driver has at least a cer- AN ACT relating to video lot- if the intersection is equipped with an tain amount of a controlled substance tery terminals, making an appropria- (Prefiled by the sponsor(s).) electric traffic signal. in the blood; create a defense if the tion therefor, and declaring an emer- To: Interim Joint Committee person took the controlled substance gency. on Health and Welfare (Prefiled by the sponsor(s).) in compliance with a valid prescrip- Create new sections of KRS To: Interim Joint Committee tion; reduce the required alcohol Chapter 154A to establish video lot- BR 45 - Senator Bob Leeper on Transportation concentration for an aggravating cir- tery terminals at licensed racetracks (10/10/08) cumstance from 0.18 to 0.15; amend and in each county that authorizes BR 57 - Representative Darryl T. KRS 189A.105 to lower the alcohol video lottery terminals by a vote of the AN ACT relating to nuclear Owens (10/08/08) percentage from 0.18 to 0.15 for in- people of the county; direct the Lot- power. creased penalties; amend various other tery Corporation to purchase any vid- Amend KRS 278.600 to re- AN ACT relating to paternity. statutes to conform. eo lottery terminals utilized in Ken- quire that nuclear power facilities have Amend KRS 406.011, to es- tucky; require that persons wishing to

THE KENTUCKY GENERAL ASSEMBLY 51 operate video lottery games allotted prior approval from the corporation; will be utilized; require the commis- Create a new section of KRS to counties obtain a contract from the create an exemption to allow facilities sion to prepare an annual report de- Chapter 6 to require a legislative time- Lottery Corporation after having ac- developed for video lottery gaming tailing activities and expenditures of out period of 24 hours prior to a vote quired prior approval from the local activities to be considered permitted the compulsive gamblers assistance on an appropriation or revenue bill or governing board where the terminals uses for zoning purposes; maintain fund; encourage video lottery retailers amendment. will be located; place the oversight of other applicable zoning and building to cooperate with local business and the games under the jurisdiction of the codes; specify how the moneys earned community organizations to stimulate (Prefiled by the sponsor(s).) Lottery Corporation; limit the number from the conduct of video lottery the economy through tourism; make To: Interim Joint Committee of video lottery terminals to 25 at any games are expended; cap the amount the Lottery Corporation’s board mem- on Appropriations and Revenue one premises unless the premises is the corporation may spend on admin- bers, executive director, and employ- a racetrack or a qualifying hotel; set istrative and operating expenses to no ees subject to the executive branch BR 78 - Representative Jim Gooch qualifying hotels as those within five more than seven percent of net termi- code of ethics; amend KRS 154A.010; Jr., Representative Hubert Collins miles of a convention center or facil- nal income; pay the lesser of 0.25% 154A.030, 154A.040, 154A.050, (09/05/08) ity that seats 2,000 or more people; or $2,000,000 to the compulsive gam- 154A.060, 154A.063, 154A.070, allow these hotels to operate up to 75 blers’ assistance fund, and the lesser of 154A.080, 154A.090, 154A.110, AN ACT relating to motor ve- video lottery terminals; establish that 0.4% or $3,000,000 to develop testing 154A.130, 154A.400, 154A.420, hicle license plates. the three types of video lottery ter- methods to detect growth hormones 154A.650, 230.357, 230.550, 243.500, Create a new section of KRS minal allocation are racetracks, uni- and performance-enhancing or illegal 243.505, 525.090, 528.010, 528.100, Chapter 186 to establish an In God form county allotment, and county drugs in racehorses; allot the lesser of 154A.990, and 15.380 to conform; We Trust license plate as an alternate allotment based on population; limit 0.3% or $3,000,000 of the net termi- EMERGENCY. standard issue license plate; set forth racetrack allocation to a set formula, nal income from racetracks to conduct design characteristics and eligibil- uniform county allotment to 50 per post-race testing of racehorses for il- (Prefiled by the sponsor(s).) ity standards; amend KRS 186.240 county, and a total county population legal drugs; devote remaining mon- to conform; EFFECTIVE January 1, allotment to 6,000 video lottery ter- eys to education, Medicaid matches, BR 74 - Representative Jim DeC- 2010. minals distributed to the counties pro- prescription drug program for seniors, esare (08/01/08) portionate to population; establish the equine industry program, video lot- (Prefiled by the sponsor(s).) duties and responsibilities of the cor- tery retailers, budget reserve fund, AN ACT relating to writing To: Interim Joint Committee poration, its agents, and its employ- and county governments where video portfolios. on Transportation ees; prohibit ex parte communications lottery games are located; require the Amend KRS 158.6453 to re- between lottery board members and Auditor of Public Accounts to conduct move writing portfolios from the state- BR 79 - Representative Jimmy contract holders, licensees, and ap- an annual audit of the corporation’s wide CATS assessment program for Higdon (08/29/08) plicants for such contracts or licenses; disbursements and expenditures; cre- elementary school students; require allocate a base number of 500 video ate a committee to conduct a study on elementary schools to use writing AN ACT relating to auto- lottery terminals to each licensed video lottery games operating in the portfolios as an instructional tool for mated or recorded political telephone racetrack; grant additional video lot- state and their impact on the economy; continuous assessment of students. messages. tery terminals to each track based on indicate the committee’s membership; Create a new section of KRS the number of days of live racing held direct each county to conduct a local (Prefiled by the sponsor(s).) Chapter 367 to prohibit use of auto- at the track; set additional allotment option election on video lottery termi- To: Interim Joint Committee mated calling equipment or recorded at 15 video lottery terminals for each nals at the next general election that on Education political telephone messages from or race day run beyond 30 and up to 50 occurs more than 90 days after video by a political party or campaign; make race days, with an additional 10 video lottery terminals are authorized gener- BR 75 - Representative Jim use of such equipment for communi- lottery terminals for each race day be- ally; allow for subsequent elections on DeCesare, Senator Bob Leeper cating political messages by a political yond 50 race days; prohibit operation the issue after at least three years have (08/01/08) party or campaign a Class B misde- of video lottery terminals on race days passed since the last referendum; make meanor; provide that each prohibited at the track where the live racing is be- racetrack employee collective bargain- AN ACT relating to account- automated call or recorded political ing conducted from 30 minutes before ing agreements for nonsupervisory ing for the expenditure of state funds. message shall be punishable by a civil the post time of the first race of the day employees applicable to the track’s Create new sections of KRS penalty of not less than $5,000; pro- until after the last race of the day has video lottery terminal employees; Chapter 42 to require the Finance vide that an injured person may bring been run; allow a track to lease its ma- generate a list by which undesirables and Administration Cabinet to create a cause of action for damages up to the chines to another track located in the may be ejected or excluded from any a searchable Web site to provide cer- amount of actual damages or $1,000 same county; require tracks to run the premises where video lottery games tain information on the expenditure of whichever is greater. same number of race days as in 2008 are being conducted; set out criteria to state funds; provide that the new sec- to remain eligible for video lottery ter- be used in making a determination as tions shall be known as the “Taxpayer (Prefiled by the sponsor(s).) minals, with exemptions for extreme to whether or not such persons should Transparency Act of 2009.” To: Interim Joint Committee circumstances; prohibit any person be excluded or ejected; allow an indi- on State Government less than 21 years of age from being vidual to have himself or herself vol- (Prefiled by the sponsor(s).) on the premises or any portion of the untarily added to the exclusion list; To: Interim Joint Committee BR 82 - Representative Charles premises where video lottery games require the commission to notify a per- on State Government Siler (08/29/08) are conducted; establish qualifications son placed on the exclusion or ejection and responsibilities of video lottery list; establish a procedure by which a BR 76 - Representative Jim DeC- AN ACT relating to Kentucky retailers and licensees; list grounds by person ejected or excluded may appeal esare (08/01/08) State Parks. which a video lottery retailer or ap- the decision to eject him or her; define Create a new section of KRS plicant may have his or her contract the term “cheat” and establish penal- AN ACT relating to a legisla- Chapter 148 to provide qualified Ken- rescinded, revoked, suspended, or not ties for persons who cheat; create the tive time-out prior to voting on a floor tucky residents who are permanently renewed; permit the corporation to is- compulsive gamblers assistance fund; amendment or a free conference report and totally disabled veterans an ex- sue temporary licenses; prohibit the determine how expenditures from the related to an appropriation measure or emption from the relevant overnight transfer of licenses without obtaining compulsive gamblers assistance fund a revenue measure. accommodations rate at any Kentucky

52 2008 Interim LEGISLATIVE RECORD State Park, Sunday through Thursday ises where the injury occurred, the at- film production facility; provide for of each week; require the exemption tending veterinarian, and the horse’s a refund of the sales and use tax paid (Prefiled by the sponsor(s).) to apply to a maximum of three over- trainer; disclose on the report whether by an approved company on qualify- night stays per calendar year at lodge the horse has ever been given growth ing expenditures if used in the filming BR 147 - Representative Tanya rooms and campsites at any Kentucky hormones or anabolic steroids, corti- or production of a motion picture pro- Pullin (09/16/08) State Park; limit reservations during costeroids within 10 days of the injury, duction in Kentucky. peak months to ten consecutive days; any mental or physical changing med- AN ACT relating to income require the exemption to be subject to ications within 30 days of the injury, (Prefiled by the sponsor(s).) tax credits for small businesses. space availability; require the Depart- or had any corrective surgery or other Create new sections of KRS ment of Parks to promulgate adminis- techniques that could have altered the BR 106 - Representative Sal San- Chapters 141 and 154; amend KRS trative regulations relating to the proof horse from its natural birth configu- toro (10/10/08) 141.0205 to establish a small business of eligibility for persons entitled to the ration; make reports available to the tax credit. exemption. public upon request; penalize failure AN ACT relating to noncom- to report with a $500 fine for the first mercial swimming pools. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) offense and a six-month license sus- Amend KRS 67.083 to allow To: Interim Joint Committee To: Interim Joint Committee pension for each subsequent offense. counties to regulate above-ground on Appropriations and Revenue on Seniors, Veterans, Military Affairs, noncommercial pools. and Public Protection (Prefiled by the sponsor(s).) BR 162 - Representative Brent To: Interim Joint Committee (Prefiled by the sponsor(s).) Yonts, Representative Jody Rich- BR 84 - Representative Jimmy on Licensing and Occupations ards (09/26/08) Higdon (08/29/08) BR 109 - Representative Kevin D. BR 103 - Representative Mary Bratcher (09/23/08) A JOINT RESOLUTION re- AN ACT relating to jurisdic- Lou Marzian (10/15/08) storing the salary of the Legislative tional limits for Kentucky courts. AN ACT relating to postsec- Research Commission Director to an Amend KRS 24A.230 and AN ACT relating to the expan- ondary education finance. acceptable level. 24A.290 to increase the jurisdictional sion of the film industry in Kentucky. Amend KRS 164.7874 and Express sense of General As- limit of the small claims division of the Create new sections of KRS 164.7883 to clarify that an approved sembly regarding salary increase for District Court from $1,500 to $3,000 Chapter 148 to provide individual out-of-state institution at which eli- director of Legislative Research Com- for both claims and counterclaims. income tax, corporation income tax, gible students may use KEES scholar- mission; rescind Legislative Research limited liability entity tax, and sales ships must be located in a state contig- Commission action giving salary in- (Prefiled by the sponsor(s).) tax incentives for locating a film pro- uous to Kentucky or be a participant in crease to director; set salary at level of To: Interim Joint Committee duction facility in Kentucky or filming the Academic Common Market agree- position on August 31, 2008; require on Judiciary or producing a motion picture produc- ment. director to repay any increase in sal- tion in Kentucky; define terms; estab- ary; RETROACTIVE. BR 94 - Representative Tom lish qualifications including minimum (Prefiled by the sponsor(s).) Burch (09/04/08) capital investment and minimum (Prefiled by the sponsor(s).) qualifying expenditures and minimum BR 120 - Representative Rick G. AN ACT relating to horse rac- qualifying payroll expenditures, ap- Nelson (09/15/08) BR 163 - Representative Brent ing. plication and reporting requirements; Yonts, Representative Jody Rich- Amend KRS 230.260 to re- require the Kentucky Film Office to AN ACT relating to motor ve- ards, Representative Dottie Sims quire the Kentucky Horse Racing administer the incentive program; au- hicle license plates. (09/26/08) Authority to promulgate administra- thorize the Kentucky Film Office to Create a new section of KRS tive regulations compelling racetracks enter into a film industry tax incentive Chapter 186 to establish an “In God A RESOLUTION urging the to report to the authority and to the agreement; authorize the promulgation We Trust” license plate as an alternate Legislative Research Commission Di- horsemen’s associations their daily of administrative regulations by the standard issue license plate; set forth rector to reject his salary increase. on-track attendance and the daily on- Kentucky Film Office and the Depart- design characteristics and eligibil- Express sense of House re- track and off-track handle within 24 ment of Revenue; create a new section ity standards; amend KRS 186.240 garding salary increase for director hours after the last race on the day in of KRS 141 to create a motion picture to conform; EFFECTIVE January 1, of Legislative Research Commission; question; state that the report is to list film production nonrefundable income 2010. urge director to reject salary increase, moneys wagered on-track, off-track, tax credit for the construction of a new agree to a cost of living increase of 1%, through advance deposit wagering, film production facility or the renova- (Prefiled by the sponsor(s).) and repay any salary increase received and all other sources in the host track tion of an existing structure to become To: Interim Joint Committee as a result of the LRC’s September 24, wagering pool; indicate that the report a film production facility and amo- on Transportation 2008 vote. should also list how all wagering mon- tion picture production that is filmed eys retained by the track are credited or produced in Kentucky against the BR 142 - Senator Dan Seum (Prefiled by the sponsor(s).) to be paid to the state, the horsemen’s tax imposed under KRS 141.020 or (09/26/08) purse account, the relevant horse de- 141.040 and KRS 141.0401 for taxable BR 175 - Representative Mary velopment fund, and the track itself; periods beginning after December 31, A CONCURRENT RESO- Lou Marzian (10/21/08) direct that the Kentucky Horse Racing 2008; allow credit to be carried for- LUTION urging the United States Authority promulgate administrative ward 5 years; amend KRS 141.0205 to Congress to appoint an independent AN ACT relating to wage dis- regulations to mandate submission establish the order in which the credits counsel to investigate the issue of crimination. of a report to the authority any time may be taken; amend KRS 139.538 American prisoners of war and those Amend KRS 337.423 to pro- a racehorse, while training or racing to provide refund of the sales and use missing in action. hibit wage discrimination on the ba- in Kentucky, incurs a catastrophic, tax paid on the purchase of tangible Urge Congress to appoint an sis of sex, race, or national origin by race-career ending injury or an injury personal property that is permanently independent counsel to investigate the prohibiting wage differentials for requiring surgery; indicate that sepa- incorporated into a film production fa- issue of American prisoners of war employees who perform equivalent rate reports are to be filed by the prem- cility or is used to initially equip the and those missing in action. jobs; provide exceptions for wage dif-

THE KENTUCKY GENERAL ASSEMBLY 53 ferentials based on seniority or merit to the effect of the bill’s provisions Consumer Affairs systems, systems that measure wages after the bill’s effective date; EMER- Bratcher, Kevin D. Counties by quantity or quality of production, GENCY. BR109* County Clerks and factors other than sex, race, or na- Burch, Tom Courts tional origin; amend KRS 337.420 to (Prefiled by the sponsor(s).) BR41*, 73*, 94* Courts, Circuit define equivalent jobs as those that are Collins, Hubert Courts, District equal under the federal Equal Pay Act, BR 182 - Senator Ken Winters BR78 Crime Victims or jobs that are dissimilar but equiva- (10/13/08) Crimm, Ron Crimes and Punishments lent in skill, effort, responsibility, and BR60*, 68* Criminal Procedure working conditions; and amend KRS AN ACT amending 2008 DeCesare, Jim Disabilities and the Disabled 337.425 to require promulgation of Kentucky Acts Chapter 127, relating BR74*, 75*, 76* Diseases administrative regulations on or before to corrections, and declaring an emer- Gooch Jr., Jim Domestic Relations July 1, 2010 to specify criteria for de- gency. BR78* Drugs and Medicines termining jobs that are dominated by Amend 2008 Kentucky Acts Henley, Melvin B. Economic Development employees of a particular sex, race, or Chapter 127, the state/executive BR21*, 42* Education, Elementary and Second- national origin, and acceptable meth- branch budget bill, to delete language Higdon, Jimmy ary odology for determining equivalent pertaining to the calculation of proba- BR24*, 79*, 84* Education, Finance skill, effort, responsibility, and work- tion and parole credit and to the mini- Marzian, Mary Lou Education, Higher ing conditions; EFFECTIVE July 1, mum expiration of sentence required BR103*, 175*, 177*, 209* Effective Dates, Delayed 2011. for final discharge of prisoners;- in Nelson, Rick G. Effective Dates, Emergency clude noncodified provision relating BR120* Elections and Voting (Prefiled by the sponsor(s).) to the effect of the bill’s provisions Owens, Darryl T. Energy after the bill’s effective date; EMER- BR57* Environment and Conservation BR 177 - Representative Mary GENCY. Pullin, Tanya Fuel Lou Marzian (10/14/08) BR147* Gambling (Prefiled by the sponsor(s).) Richards, Jody General Assembly AN ACT relating to health BR162* Hazardous Materials care services provided in clinical trials BR 209 - Representative Mary BR163* Health and Medical Services for the treatment of cancer. Lou Marzian (10/21/08) Riggs, Steve Highways, Streets, and Bridges Create a new section of Subti- BR56* Historical Affairs tle 17A of KRS Chapter 304 to prohib- AN ACT relating to the Ken- Santoro, Sal Home Rule it a health benefit plan from excluding tucky Recreational Trails Authority. BR106* Housing, Building, and Construction coverage for routine patient healthcare Amend KRS 148.795 to add a Siler, Charles Insurance, Health costs that are incurred in the course of member of the Brain Injury Associa- BR33*, 82* Juries and Jurors a cancer clinical trial if the health ben- tion of Kentucky to the Kentucky Rec- Sims, Dottie Labor and Industry efit plan would provide coverage for reational Trails Authority. BR163 Legislative Research Commission the routine patient healthcare cost had Wayne, Jim Licensing it not been incurred in a cancer clini- (Prefiled by the sponsor(s).) BR33* Local Government cal trial; provide that nothing in this Wuchner, Addia Lottery section requires a policy to offer, nor BRs by Sponsor BR41* Mental Disability prohibit a policy from offering, cancer * - denotes primary sponsorship Yonts, Brent Mental Health clinical trial services by a participat- of BRs BR49* Military Affairs and Civil Defense ing provider; provide that nothing in BR162* Motor Vehicles this section requires services that are Senate BR163* Nuclear Energy performed in a cancer clinical trial by Occupations and Professions a non-participating provider of a pol- Buford, Tom Index Headings Parental Rights icy to be reimbursed at the same rate BR34* Parks and Shrines as those performed by a participating Jones II, Ray S. Administrative Regulations and Pro- Personnel and Employment provider of the policy. BR61*, 69* ceedings Pollution Leeper, Bob Agriculture Popular Names and Short Titles (Prefiled by the sponsor(s).) BR45* Alcoholic Beverages Poverty BR75* Amusements and Recreation Public Assistance BR 180 - Senator Jack Westwood Pendleton, Joey Animals, Livestock, and Poultry Public Officers and Employees (10/08/08) BR38* Appropriations Public Utilities Seum, Dan Attorney General Racing AN ACT amending 2008 BR28* Attorney, County Religion Kentucky Acts Chapter 127, relating BR142* Blind or Deaf Persons Reproductive Issues to corrections, and declaring an emer- Stine, Katie Budget and Financial Administration Safety gency. BR37* Charitable Organizations and Institu- Secretary of State Amend 2008 Kentucky Acts Tapp, Gary tions State Agencies Chapter 127, the state/executive BR28* Children and Minors Substance Abuse branch budget bill, to delete language Westwood, Jack Circuit Clerks Taxation pertaining to the calculation of proba- BR180* Civil Actions Taxation, Income--Corporate tion and parole credit and to the mini- Winters, Ken Civil Procedure Taxation, Income--Individual mum expiration of sentence required BR182* Civil Rights Taxation, Sales and Use for final discharge of prisoners;- in Commerce Teachers clude noncodified provision relating House Communications Tourism

54 2008 Interim LEGISLATIVE RECORD Trade Practices and Retailing Traffic Safety Community rehabilitation tax credit, Deaf and hard of hearing persons, Child custody determination, addi- Transportation created - BR33 movie theater access - BR69 tional factor for - BR60 Veterans’ Affairs Movie theater access, closed caption- Public assistance, substance abuse Circuit court clerks, compensation of Veterinarians ing - BR69 screening - BR42 - BR49 Waste Management Sex, race, or national origin, wage dis- Jury service, limitation on - BR68 Weights and Measures Budget and Financial Adminis- crimination prohibited - BR175 Maintenance orders for spouses, avail- tration ability of automatic payment methods BR Index Commerce - BR60 08 HB 406, state budget, corrections, Small claims division, jurisdictional Administrative Regulations amendment to - BR180, 182 Fuel ethanol-blended gasoline, re- increase - BR84 and Proceedings Bill or amendment containing appro- quirements for sale and use of com- priation, legislative time-out period modities - BR38 Crime Victims Physical activity, integration of - prior to vote - BR76 BR37 Expenditure of state funds, searchable Communications 08 HB 406, state budget, corrections, Racing Authority, creation of race- Web site - BR75 amendment to - BR180, 182 track handle and horse injury report- Video lottery terminals, net terminal Automated calling equipment or re- ing requirements by - BR94 income for state budget purposes, dis- corded political messages by a party Crimes and Punishments persal of - BR73 or campaign, use prohibited - BR79 Agriculture 08 HB 406, state budget, corrections, Charitable Organizations and Consumer Affairs amendment to - BR180, 182 Injured racehorses, duty to report pri- Institutions Automated equipment or recorded po- or surgeries or use of steroids or other Establish requirements for collection litical messages, use of subject to pen- drugs in - BR94 Establish requirements for collection of donated items by for profit entities alty and recover of damages - BR79 of donated items by for profit entities - BR34 DUI, Alcoholic Beverages - BR34 Small claims division, jurisdictional aggravating circumstances and in- increase - BR84 creased penalties, lower alcohol con- DUI, aggravating circumstances and Children and Minors centration for - BR61 increased penalties, lower alcohol Counties violation for controlled substance use concentration for - BR61 Custody determination, additional fac- - BR61 tor for - BR60 Home rule, allow for pool safety regu- Nonsupport and flagrant non-support, Amusements and Recreation Paternity, determination, evidence, lations - BR106 spouse and ex-spouse - BR60 and venue, clarification and updating Video lottery terminals, county refer- Deaf and hard of hearing persons, of - BR57 endum on placement of - BR73 Criminal Procedure movie theater access - BR69 Physical activity for children, requirement of County Clerks DUI, Animals, Livestock, and Poul- - BR41 aggravating circumstances and in- try activity, requirement of - BR37 In God We Trust license plate, estab- creased penalties, lower alcohol con- Religious viewpoints, student expres- lish as alternate standard issue plate centration for - BR61 Injured racehorses, duty to report pri- sion of - BR21 - BR78 violation for controlled substance use or surgeries or use of steroids or other License plate, “In God We Trust”, es- - BR61 drugs in - BR94 Circuit Clerks tablish as alternate standard issue plate Nonsupport and flagrant non-support, - BR120 spouse and ex-spouse - BR60 Appropriations Compensation, rate of - BR49 Registered Independents, primaries, participation in - BR24 Disabilities and the Disabled Bill or amendment containing appro- Civil Actions priation, legislative time-out period Courts Community rehabilitation tax credit, prior to vote - BR76 Child custody determination, addi- created - BR33 Expenditure of state funds, searchable tional factor for - BR60 Jury service, limitation on - BR68 Deaf and hard of hearing persons, Web site - BR75 Maintenance orders for spouses, avail- Paternity, determination, evidence, movie theater access - BR69 Video lottery terminals, net terminal ability of automatic payment methods and venue, clarification and updating KY Recreational Trails Authority, add income for state budget purposes, dis- - BR60 of - BR57 member of the Brain Injury Associa- persal of - BR73 Paternity, determination, evidence, Small claims division, jurisdictional tion - BR209 and venue, clarification and updating increase - BR84 Attorney General of - BR57 Diseases Small claims division, jurisdictional Courts, Circuit Establish requirements for collection increase - BR84 Cancer, clinical trials for treatment of, of donated items by for profit entities Child custody determination, addi- health plan - BR177 - BR34 Civil Procedure tional factor for - BR60 Circuit court clerks, compensation of Domestic Relations Attorney, County Paternity, determination, evidence, - BR49 and venue, clarification and updating Jury service, limitation on - BR68 Child custody determination, addi- Establish requirements for collection of - BR57 Maintenance orders for spouses, avail- tional factor for - BR60 of donated items by for profit entities Small claims division, jurisdictional ability of automatic payment methods Maintenance orders for spouses, avail- - BR34 increase - BR84 - BR60 ability of automatic payment methods - BR60 Blind or Deaf Persons Civil Rights Courts, District Paternity, determination, evidence,

THE KENTUCKY GENERAL ASSEMBLY 55 and venue, clarification and updating Elections and Voting ways - BR56 KY Recreational Trails Authority, add of - BR57 member of the Brain Injury Associa- Registered Independents, primaries, Historical Affairs tion - BR209 Drugs and Medicines participation in - BR24 Video lottery terminals, county refer- Prisoners of war and those missing in Military Affairs and Civil De- Cancer, clinical trials for treatment of, endum on placement of - BR73 action, urge Congress to authorize in- fense health plan - BR177 vestigation - BR142 DUI, violation for controlled sub- Energy Prisoners of war and those missing in stance use - BR61 Home Rule action, urge Congress to authorize in- Public assistance, substance abuse Fuel ethanol-blended gasoline, re- vestigation - BR142 screening - BR42 quirements for sale and use of com- Pool safety regulations by counties, State Park accommodations, exemp- Steroids and other drugs, duty to re- modities - BR38 allow - BR106 tion for disabled veterans - BR82 port prior use of in a racehorse after Nuclear power, construction morato- catastrophic injuries - BR94 rium, removal of - BR45 Housing, Building, and Con- Motor Vehicles struction Economic Development Environment and Conserva- DUI, tion Pool safety regulations by counties, aggravating circumstances and in- Film industry, tax credits - BR103 allow - BR106 creased penalties, lower alcohol con- Incentives, searchable Web site - High-level nuclear waste, storage plan, centration for - BR61 BR75 disposal of - BR45 Insurance, Health violation for controlled substance use Small business development - BR147 - BR61 Video lottery terminals, implementa- Fuel Cancer, clinical trials for treatment of, In God We Trust license plate, estab- tion as a tourist attraction - BR73 health plan - BR177 lish as alternate standard issue plate Fuel ethanol-blended gasoline, re- - BR78 Education, Elementary and quirements for sale and use of com- Juries and Jurors License plate, “In God We Trust”, es- Secondary modities - BR38 tablish as alternate standard issue plate High-level nuclear waste, spent fuel, Jury service, limitation on - BR68 - BR120 KEES, out-of-state institutions, re- storage plan for - BR45 Low-speed quirements - BR109 Labor and Industry electric vehicles, permit use of on Physical activity for children, require- Gambling highways - BR28 ment of - BR37; BR41 Wage discrimination, prohibited on electric vehicles, permit use on high- Religious viewpoints, student expres- Daily handle from on-track and off- basis of sex, race, or national origin ways - BR56 sion of - BR21 track sources, racetrack duty to report - BR175 Writing portfolios, remove from el- after each race day - BR94 Nuclear Energy ementary school CATS assessment Video lottery terminals, race track and Legislative Research Commis- - BR74 county placement of - BR73 sion Nuclear power, construction morato- rium, removal of - BR45 Education, Finance General Assembly Director, salary of - BR162; BR163 Occupations and Professions KEES, out-of-state institutions, re- Appropriations, legislative time-out Licensing quirements - BR109 period prior to vote on bill or amend- Video lottery terminals, occupational ment - BR76 Catastrophic injuries to racehorses, licenses - BR73 Education, Higher Legislative disciplinary action against racing li- Research Commission Director, salary censees who fail to report - BR94 Parental Rights KEES, out-of-state institutions, re- of - BR162 Video lottery terminals, license cat- quirements - BR109 Research Commission, salary of - egories for - BR73 Child custody determination, addi- BR163 tional factor for - BR60 Effective Dates, Delayed Local Government Paternity, determination, evidence, Hazardous Materials and venue, clarification and updating License plate, Transportation Cabinet, Home rule, allow for pool safety regu- of - BR57 establish alternate standard issue li- High-level nuclear waste, spent fuel, lations - BR106 cense plate - BR120 storage plan for - BR45 Video lottery terminals, county refer- Parks and Shrines Transportation Cabinet, establish al- endum on placement of - BR73 ternate standard issue license plate Health and Medical Services KY Recreational Trails Authority, add - BR78 Lottery member of the Brain Injury Associa- Wage discrimination, prohibited on Cancer, clinical trials for treatment of, tion - BR209 basis of sex, race, or national origin health plan - BR177 Video lottery terminals, lottery corpo- State Park accommodations, exemp- - BR175 KY Recreational Trails Authority, add ration oversight - BR73 tion for disabled veterans - BR82 member of the Brain Injury Associa- Effective Dates, Emergency tion - BR209 Mental Disability Personnel and Employment

BR Highways, Streets, and Bridges KY Recreational Trails Authority, add Wage discrimination, prohibited on 180 - BR180 member of the Brain Injury Associa- basis of sex, race, or national origin 182 - BR182 Low-speed tion - BR209 - BR175 Child custody, spousal maintenance electric vehicles, permit use of on - BR60 highways - BR28 Mental Health Pollution electric vehicles, permit use on high-

56 2008 Interim LEGISLATIVE RECORD High-level nuclear waste, spent fuel, expenditure of state funds on search- Video lottery terminals, implement ac- storage plan for - BR45 able Web site - BR75 tion as a tourist attraction - BR73 License plate, Transportation Cabinet, Popular Names and Short establish alternate standard issue li- Trade Practices and Retailing Titles cense plate - BR120 Physical Small claims division, jurisdictional “Taxpayer Transparency Act of 2009” activity for children, requirement of increase - BR84 - BR75 - BR41 activity requirement, administrative Traffic Safety Poverty regulations for - BR37 State Park accommodations, exemp- DUI, Public assistance, substance abuse tion for disabled veterans - BR82 aggravating circumstances and in- screening - BR42 Transportation Cabinet, establish al- creased penalties, lower alcohol con- ternate standard issue license plate centration for - BR61 Public Assistance - BR78 violation for controlled substance use - BR61 Eligibility, substance abuse screening Substance Abuse - BR42 Transportation DUI, Public Officers and Employees aggravating circumstances and in- Fuel ethanol-blended gasoline, re- creased penalties, lower alcohol con- quirements for sale and use of com- Wage discrimination, prohibited on centration for - BR61 modities - BR38 basis of sex, race, or national origin violation for controlled substance use In God We Trust license plate, estab- - BR175 - BR61 lish as alternate standard issue plate Public assistance, substance abuse - BR78 Public Utilities screening - BR42 License plate, “In God We Trust”, es- tablish as alternate standard issue plate Automated calling equipment or re- Taxation - BR120 corded political messages by a party Low-speed or campaign, use prohibited - BR79 Community rehabilitation tax credit, electric vehicles, permit use of on Nuclear power facility, construction created - BR33 highways - BR28 moratorium, removal of - BR45 Film industry, tax credits - BR103 electric vehicles, permit use on high- Refunds, rebates, or credits, search- ways - BR56 Racing able Web site - BR75 Tax credits, incentives for small busi- Veterans’ Affairs Reporting requirements, racetrack at- ness development - BR147 tendance and handle and major race- Prisoners of war and those missing in horse injuries - BR94 Taxation, Income--Corporate action, urge Congress to authorize in- Video lottery terminals, licensed race- vestigation - BR142 tracks, eligibility to operate - BR73 Community rehabilitation tax credit, State Park accommodations, exemp- created - BR33 tion for disabled veterans - BR82 Religion Film industry, tax credits - BR103 Veterinarians Religious viewpoints, student expres- Taxation, Income--Individual sion of - BR21 Catastrophic injuries to racehorses, Community rehabilitation tax credit, reporting requirements for attending Reproductive Issues created - BR33 veterinarians - BR94

Paternity, determination, evidence, Taxation, Sales and Use Waste Management and venue, clarification and updating of - BR57 Film industry, tax credits - BR103 High-level nuclear waste, spent fuel, storage plan for - BR45 Safety Teachers Weights and Measures Pool safety regulations by counties, Board of Education, physical activity allow - BR106 for children, reporting of - BR41 Fuel ethanol-blended gasoline, re- Religious viewpoints, student expres- quirements for sale and use of com- Secretary of State sion of - BR21 modities - BR38 Writing portfolios, remove from el- Registered Independents, primaries, ementary school CATS assessment participation in - BR24 - BR74

State Agencies Tourism

08 HB 406, state budget, corrections, KY Recreational Trails Authority, add amendment to - BR180, 182 member of the Brain Injury Associa- Finance and Administration Cabinet, tion - BR209

THE KENTUCKY GENERAL ASSEMBLY 57 Vehicles, 2009 LRC from page 3 LRC Publications Publications seatbelts, and a VIN number. Motorcycles, meanwhile, ex- Informational Bulletins Price List Daily Record Pickup.....$82.50 clude anything with a closed cab. ZAP 226 General Assembly Action, Regular Session 2008 Daily Record Mailed .....$82.50 (plus vehicles, which have three wheels, postage) electric power, and will be manufac- 225 Final Reports of the Interim Joint, Special and Statutory Friday Record Mailed ....$30.25 (plus tured in Simpson County, do not meet postage) either definition. Gov. Steve Beshear Committees 2007 Individual Record Pickup ...$2.75 announced this summer that regula- 224 Issues Confronting the 2008 General Assembly Individual Record Mailed ... $2.75 (plus postage) tions would soon be in place that al- 223 General Assembly Action, Regular Session 2007 low the vehicles on some roads. The Bills ZAP cars top out at 40 miles per hour, 222 Final Reports of the Interim Joint, Special, and Statutory Complete Set of Bills and Resolutions which makes them infeasible on some Committees 2006 Picked Up roads. $425.00 “For any of these to be legiti- 221 Issues Confronting the 2007 General Assembly Individual Bills mately on the road, we need legisla- 220 General Assembly Action, Regular Session 2006 Per Page ...$.05 tion or regulation that allows them,” Amendments 219 Final Reports of the Interim Joint Special and Statutory Com- Per Page....$.05 said committee co-chair Rep. Hu- Roll Call Votes bert Collins, D-Wittensville. He also mittees (2005) $.15 (per page) noted driver’s licensing issues, since motorcycles and cars have different 218 Issues Confronting the 2006 General Assembly Publications requirements. 217 General Assembly Action, Regular Session 2005 1-10 copies .... Free (plus postage, if mailed) Legislators also discussed rising 216 Final Reports of the Interim Joint, Special and Statutory Com- concerns about hybrid vehicles, espe- Copies over 10 .... ($1.00 per copy, plus postage if mailed) cially the danger they can present to mittees (2004) blind pedestrians because of their qui- 215 Issues Confronting the 2005 General Assembly, An Update of Administrative Regulations etness. Pamela Roark Glisson, with Bound Volumes.... $170.00 the National Federation of the Blind Information Bulletin No. 212 Administrative Register....$96.00 of Kentucky, noted that hybrids must 214 General Assembly Action, Regular Session 2004 Volumes and Register .... $250.00 be 40 percent closer before pedestri- ans can hear them. 213 Final Reports of the Interim Joint, Special and Statutory Com- Acts of the General Assembly Regular Sessions ... Price to be quoted “We don’t want to stifle -ad mittees (2003) after printing (on CD...$10) vancement in technology or conserv- 212 Issues Confronting the 2004 General Assembly (2003) Special Sessions .... Price to be quoted ing of energy… but people who are after printing (on CD...$10) blind want to be able to move about 211 General Assembly Action, Regular Session 2003 Journals our communities without the fear of 210 Constitution of the United States of America, being mowed down by one of these House and Senate Complete Set ... Price to be quoted after printing quiet weapons,” she said. She said Constitution of the Commonwealth of Kentucky House Set...Price to be quoted after manufacturers should consider devic- 209 Issues Confronting the 2003 General Assembly (2002) printing es on their vehicles so that pedestrians Senate Set ... Price to be quoted after would be more aware. 208 Final Reports of the Interim Joint, Special and Statutory Com- printing Rep. Jimmie Lee, D-Elizabeth- mittees (2002) All prices are subject to 6% town, noted that Chevrolet has ad- Kentucky Sales Tax dressed the issue with its all-electric 207 General Assembly Action, Regular Session 2002 Volt, which is being prepared for 206 Final Reports of the Interim Joint, Special and Statutory Com- manufacture. “It can’t be too obnox- mittees (2001) ious, but we’ve been used to hearing these sounds for a long time now,” he 205 Issues Confronting the 2002 General Assembly, Supplement said. to Issues Confronting the 2002 General Assembly Robert Strassburger with the Al- liance of Automotive Manufacturers 204 General Assembly Action, Regular Session 2001 noted that his group is investigating steps to measure how much sound cars produce so it can be replicated without becoming noisy to the public. “We also need to know the minimum noise needed for someone to detect the vehicle and detect it in time.” He noted the irony of automak- ers working for years to make vehi- cles more quiet and energy efficient, only to have accomplished the task too well.

58 2008 Interim LEGISLATIVE RECORD Senate Districts

House Districts

THE KENTUCKY GENERAL ASSEMBLY 59 David L. Williams Jody Richards SENATE PRESIDENT The Kentucky Legislative Research Commission HOUSE SPEAKER is a 16-member committee of the majority and Katie Kratz Stine Larry Clark minority leadership of the Kentucky Senate PRESIDENT PRO TEM SPEAKER PRO TEM and House of Representatives. Under Chapter Dan Kelly Rocky Adkins 7 of the Kentucky Revised Statutes, the LRC Majority FLOOR LEADER MAJORITY FLOOR LEADER constitutes the administrative office for the Ed Worley General Assembly. Its director serves as chief Jeff Hoover MINORITY FLOOR LEADER MINORITY FLOOR LEADER administrative officer of the Legislature when it isn’t in session. Dan Seum Charlie Hoffman MAJORITY CAUCUS CHAIRMAN MAJORITY CAUCUS CHAIRMAN The Commission and its staff, by law and by Johnny Ray Turner practice, perform numerous fact-finding and Bob DeWeese MINORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN service functions for members of the Legis- lature, employing professional, clerical and Carroll Gibson Rob Wilkey other employees required when the General MAJORITY WHIP MAJORITY WHIP Assembly is in session and during the interim Joey Pendleton Stan Lee period between sessions. These employees, in MINORITY WHIP MINORITY WHIP turn, assist committees and individual legisla- tors in preparing legislation. Other services 2008 Interim Bobby Sherman, Director include conducting studies and investigations, Legislative organizing and staffing committee meetings and LEGISLATIVE Research Commission public hearings, maintaining official legislative Robert Jenkins, Deputy records and other reference materials, provid- RECORD Director for Committee and ing information about the Legislature to the Staff Coordination public, compiling and publishing administrative Published monthly by Rob Weber regulations, administering a legislative intern the Legislative Research Public Information Officer Commission, the Interim program, conducting orientation programs for Mike Robinson new legislators, and publishing a daily index RECORD is designed to inform Printing and Publications and summary of legislative actions during the citizens of Kentucky of the Officer sessions. between-sessions work of the Rebecca Mullins General Assembly. The LRC is also responsible for statute revi- Editor, Typography and Design sion, publishing and distributing the Acts and Subscriptions are free upon Mike Sunseri Journals following sessions, and for maintaining request. Contact LRC’s Public Chief Photographer furnishings, equipment and supplies for the Information Office, Capitol Annex, Frankfort, KY 40601, Karen Bourne Legislature. It also functions as Kentucky’s Jeff Fossett Commission on Interstate Cooperation in car- phone 502-564-8100. Steve Gatewood rying out the program of the Council of State Stories may be reprinted Bruce Phillips Governments as it relates to Kentucky. Bud Kraft without permission, although Keith Krey credit would be appreciated. Jeanie Mitchell Scott Payton Chuck Truesdell Public Information Staff

2008 Interim Pre Sorted Standard U.S. Postage LEGISLATIVE PAID Kentucky General Assembly RECORD Frankfort, Kentucky 700 Capitol Avenue Permit Number 308 Frankfort, Kentucky 40601

60 2008 Interim LEGISLATIVE RECORD