2017 Interim LEGISLATIVE Volume 30, No. 3 June 2017 * Read online at www.lrc.ky.gov/legislation.htm RECORD Call renewed for state child abuse offender registry by Rebecca Hanchett to prevent other cases of abuse, spends much LRC Public Information of her time advocating for stricter child abuse laws. She and Sophie, now a toddler, appeared COVINGTON—Jennifer Diaz was at together before a meeting of the Interim Joint work the day before Thanksgiving 2014 when Committee on Judiciary in Covington on June she got a call that something was wrong with 7 to ask lawmakers to consider legislation that her little girl. would allow the names of convicted child abusers The young mother rushed home to find her in Kentucky to be made available to the public four-month-old daughter, Sophie, with injuries through a state-maintained online child abuse to her head and face. The babysitter, Desiree offender registry. Rankin, told Diaz that Sophie had been having “Sophie was very fortunate,” Diaz told the seizures. But a criminal investigation would committee. “She survived. But I think it is so find another reason for Sophie’s injuries: child important to have a registry to protect our abuse. children.” Rep. Chad McCoy, R-Bardstown, studies Rankin was charged in the case, took a A bill to create the registry passed the the issues during the June 7 Interim plea deal and was sentenced to some time Kentucky House last session but did not pass Joint Committee on Judiciary meeting in in jail. Diaz, determined to do what she can Continued on page 2 Covington. New transportation laws being rolled out by Jim Hannah June 6 meeting of the Interim Joint Committee reference to the extension request. “I don’t have LRC Public Information on Transportation. any reason at this time to feel uncomfortable One of the first updates state legislators about that.” Coming to Kentucky roads this year: surplus received was on House Bill 410. Known as the Taylor said Kentucky will begin soliciting military Humvees, three-wheeled vehicles REAL ID Bill, HB 410 was written to bring bids on Sept. 1 from companies able to produce dubbed autocycles and maybe even golf carts Kentucky into compliance with the federal REAL driver’s licenses that meet the federal security modified to deliver online purchases. ID Act by Jan. 1, 2019, and will by far affect more requirements. The goal is to have a company Legislation addressing these three types Kentuckians than the other transportation bills selected by Jan. 1, 2018. He added that will allow of vehicles were among the transportation- discussed at the meeting. time for the new licenses to be rolled out across related bills passed during this year’s regular Taylor said he expects to hear by July 10 the state’s 120 counties. session of the Kentucky General Assembly, said whether the Department of Homeland Security “We will ask you to keep us up-to-date as this Rick Taylor, the deputy commissioner of the will extend a waiver allowing Kentucky to remain progresses because we have all lived through this Department of Vehicle Regulation. He testified in noncompliance with the federal act until the controversy and the issues,” committee Co-chair on the progress of implementing these and other new state driver’s licenses are available. transportation-related bills into law during the “Everything has been positive,” he said in Continued on page 2

THE KENTUCKY GENERAL ASSEMBLY 1 Transportation, from page 1

Sen. Ernie Harris, R-Prospect, said in reference to a vigorous debate that took place about the best way to bring Kentucky into compliance.

The other transportation-related bills legislators received updates on include:

• House Bill 192 makes it easier for 16- and 17-year-olds in foster care to apply for driver’s permits and driver’s licenses. State officials have already drafted a nine-page application to ensure a child’s eligibility and a letter for foster parents to give local driver licensing clerks. Transportation officials said it will take a little longer to solicit bids for car insurance to cover children in the state foster-care system but who are not living with foster parents. Rep. Charlie Miller, D-Louisville, scans material outlining the state’s new transportation laws at the Interim • House Bill 404 creates a commercial Joint Committee on Transportation’s June 6 meeting. low-speed license plate for golf carts and other utility vehicles used for deliveries. It ensures that how autocycles, a type of three-wheeled vehicle law enforcement.) The state began getting the vehicles have commercial insurance on file growing in popularity, are to be licensed, taxed requests from civilians for such licenses after the with the state. Transportation officials hope to and insured. Transportation officials said the Pentagon started auctioning the camo-covered, have the license plates available by the middle guidelines should be finalized by July. husky, troop-transporting High Mobility Multi- of September so delivery companies can have purpose Wheeled Vehicles (HMMWV) to the golf carts ready to deploy during this year’s • Senate Bill 176 allows for Humvees civilians in 2014. holiday shopping season. and other demilitarized vehicles to be licensed Transportation officials said they are on for use on public roads by the general public. track to begin issuing the license plates for the • Senate Bill 73 lays out guidelines on (There is already an exception carved out for vehicles on July 1. Child abuse, from page 1 into law before session’s end. That legislation, years, she said, alternating between first and registry legislation for consideration in sponsored by House Health and Family Services second place in sheer numbers of child abuse 2018 drew comments from some committee Chair Rep. , R-Florence, and and neglect cases. members. Rep. , R-Louisville, said Rep. , R-Lexington, was House Bill 129, While the registry won’t be a cure-all for he’s like to know how long names would remain dubbed “Kylie Jo’s and Sophie’s Law” after both child abuse and neglect in the Commonwealth, on the registry, among other things. Sophie and Kylie Jo Sizemore, another little girl Wuchner said it will help. It would join other Rep. , D-Shively, said she hopes allegedly abused by her babysitter when she was child abuse prevention laws passed by the the bill stresses the importance of knowing only a few months old. General Assembly in recent years including a the background of potential hires. Current By passing legislation similar to HB 129 next law designed to prevent pediatric abusive head law requires that specific child care workers, year, Wuchner said Kentucky could become only trauma (also known as “Shaken Baby Syndrome”) including those in day care and foster care, the second state in the nation to create an online and HB 524 passed last session which clarifies, undergo a state background check before being child abuse offender registry for convicted child among other provisions, what constitutes serious hired to determine if there are any substantiated abusers. The first state to create such a registry? physical injury of a child under age 12. abuse or neglect cases against them. Indiana, which went live with its child abuse “We can’t make up for what happened to A presentation on the Campbell County offender registry this year. Sophie or other children,” said Wuchner. “But Detention Center’s Chemical Dependency “We are in the top 10” in child abuse and we can try to ensure that others do not have to Program was also shared before the committee. neglect cases, along with Indiana, Wuchner told go through what these parents and children have The relatively new program gives female inmates the committee. Kentucky and Indiana have led had to go through.” pathways to addiction treatment while in jail, the nation in child abuse and neglect over the How to structure child abuse offender followed by 18-24 months of outpatient care.

2 2017 Interim LEGISLATIVE RECORD Panel warns of tight budgets ahead by Jim Hannah authorities have advised his cabinet that the state LRC Public Information needs about $800 million in positive cash flow for a healthy fund. COVINGTON – The mainframe computer “Good things happen when our trust fund is processing all of Kentucky’s unemployment healthy,” he said. “We are reaping the benefits of insurance claims was built a decade before the those good things.” 1980s-era arcade game Pac-Man. Benefits have increased while employer “Think about that,” Deputy Secretary for contributions continue to fall, Montell said. The Education and Workforce Development Cabinet next reduction for employer contributions is said while testifying before the forecasted to take effect in January. Interim Joint Committee on Appropriations and In addition to upgrading the 44-year-old Revenue on June 7 at the Northern Kentucky mainframe, Montell said the state Office of Convention Center. “This thing is old. It’s slow. Vocational Rehabilitation needs an additional It’s not employer friendly at all. It runs from 7 $3.8 million in state tax dollars in order to receive a.m. to 7 p.m. and then it is done. It’s got to rest. the total amount of federal matching money It’s got to have time to think. And it will only run earmarked for the state. Montell said Kentucky five-and-a-half days a week. We got to shut her is losing about $10 million in federal tax dollars down for the weekend – literally.” because the state doesn’t fully fund its vocational Montell, who served seven terms in the rehabilitation office. He said the lack of money state House before joining the executive branch means the office tasked with finding jobs for in October, proposed upgrading the 1973 all Kentuckians with disabilities can only assist technology with a percentage of the employer persons with the most severe disabilities. contribution to the unemployment insurance “That is really a shame,” Montell said in trust fund. While he didn’t say what percentage reference to Kentuckians with disabilities who would be redirected, the minimum amount are turned away. needed to update the technology is estimated at After hearing Montell’s testimony, committee $35 million. Co-chair Christian McDaniel had a warning After the Great Recession plunged the trust for state cabinets and advocates of various fund into nearly $1 billion in debt by January causes: Any additional tax dollars for capital 2012, its coffers have since been replenished. projects should create enough savings within the The fund had a positive cash balance of $425.2 million as of June 1. Montell said federal Continued on page 39 Planning for state WWI centennial underway by Jim Hannah through the state fair,” said French Henry, a completing their term of service. LRC Public Information member of the Kentucky World War I Centennial “World War I is largely a forgotten war,” Committee. “It is the most excellent way to get French Henry said. “It’s been over 100 years. We FRANKFORT – More than 100,000 young the word and message out to the most diverse have no living World War I veterans.” men from across the United States trained at population that enters into any realm in the Kentucky’s last WWI veteran was Robley Camp Zachary Taylor in Louisville before being state.” Henry Rex of Louisville. shipped overseas to fight in the Great War. The United States officially entered WWI on “Even in his elderly years, he still had a great To highlight Kentucky’s contribution World April 6, 1917. Seven months later, the sprawling mind, could recognize faces,” French Henry War I, a life-replica of one of the camp’s barracks Camp Zachary Taylor training facility opened. said of Rex. “And he hugged about as tight as will be on display at the upcoming Kentucky It was the largest of 16 camps that dotted the anyone else I have ever hugged in my life. He State Fair, said Department of Veterans Affairs United States and contained more than 2,000 was a wonderful representative for us. But sadly, Deputy Director Heather French Henry while buildings that housed more than 40,000 troops. sometimes that history … goes by the wayside testifying before yesterday’s meeting of the “We had a profound effect on the servicemen when they are not among us.” Interim Joint Committee on Veterans, Military that were going overseas and really contributed Rex died four days before his 108th birthday, Affairs and Public Projection. The replica will to the great Allied victory of World War I,” in April 2009, at the veterans hospital in be part of an exhibit covering nearly a quarter French Henry said. Louisville, later renamed the Robley Rex V.A. acre that will also include a trench made of 480 The camp was auctioned off as 1,500 different Medical Center. sandbags, donated by Fort Knox, containing 20 parcels of land in 1921 and became the Camp Kentucky had more than 2,000 casualties tons of sand. Taylor neighborhood. Many of the parcels were during WWI, and French Henry’s department “There are over 600,000 folks that travel bought by the soldiers returning to the area after has a casualty list by county.

THE KENTUCKY GENERAL ASSEMBLY 3 General 2017 Assembly Senate

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

4 2017 Interim LEGISLATIVE RECORD 2017 Kentucky General Assembly House Rocky Adkins (99) PO Box 688 (90) Derrick Graham (57) Sandy Hook, KY 41171 PO Box 710 702 Capitol Avenue (LRC) 502-564-8100 Hyden, KY 41749 Annex Room 429J (Home) 606-738-4242 (LRC) 502-564-8100 Frankfort, KY 40601 (Work) 606-928-0407 (Home) (606) 672-8999 (LRC) 502-564-8100 (Work FAX) 606-929-5913 (Home FAX) 606-672-8998 (Home) 502-223-1769 (4) (27) 2359 Brown Mines Rd (6) PO Box 1007 Marion, KY 42064 285 Oak Level Elva Rd Brandenburg, KY 40108 (LRC) 502-564-8100 Symsonia, KY 42082 (LRC) 502-564-8100 (Home) 270-988-4171 (LRC) 502-564-8100 (Home) 270-422-5100 Danny Bentley (98) (Home) 270-851-4433 (Home FAX) 270-422-5100 702 Capitol Avenue Jim DeCesare (17) David Hale (74) Annex Room 329J PO Box 122 11 Hales Ln Frankfort KY 40601 Rockfield, KY 42274 Wellington, KY 40387 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-792-5779 (Home) 606-768-3474 III (88) (Work) 270-792-5779 Chris Harris (93) 2384 Abbeywood Rd (37) 719 Forest Hills Rd Lexington, KY 40515 PO Box 509 Forest Hills, KY 41527 (LRC) 502-564-8100 Fairdale, KY 40118 (LRC) 502-564-8100 (Home) 859-421-1464 (LRC) 502-564-8100 (Home) 606-237-0055 (Work) 502-439-6175 Mark Hart (78) John Blanton (92) (9) 702 Capitol Avenue 702 Capitol Avenue 491 E Nashville St Annex Room 316E Annex Room 329H Pembroke, KY 42266 Frankfort, KY 40601 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-475-9503 (Home) 859-654-4278 Jim DuPlessis (25) (94) Kevin D. Bratcher (29) 102 Utah Court 702 Capitol Avenue 10215 Landwood Dr Elizabethtown, KY 42701 Annex Room 429I Louisville, KY 40291 (LRC) 502-564-8100 Frankfort, KY 40601 (LRC) 502-564-8100 Daniel Elliott (54) (LRC) 502-564-8100 (Home) 502-231-3311 PO Box 2082 (2) Danville, KY 40423 438 Millers Chapel Rd Larry Brown (95) (LRC) 502-564-8100 Mayfield, KY 42066 702 Capitol Avenue (Home) 859-332-4204 (LRC) 502-564-8100 Annex Room 329I Joseph M. Fischer (68) (Home) 270-705-7539 Frankfort, KY 40601 126 Dixie Place (Work) 270-247-2210 (LRC) 502-564-8100 Ft Thomas, KY 41075 (Work FAX) 270-247-2304 (Work) 606-886-8132 (LRC) 502-564-8100 (91) George Brown Jr. (77) (Home) 859-781-6965 702 Capitol Avenue 424 E Fourth Street (Work) 513-794-6442 Annex Room 329 B Lexington, KY 40508 Ken Fleming (48) Frankfort, KY 40601 (LRC) 502-564-8100 702 Capitol Avenue (LRC) 502-564-8100 (Home) 859-312-7513 Annex Room 351D (83) (82) Frankfort, KY 40601 PO Box 985 179 Mountain St (LRC) 502-564-8100 Jamestown, KY 42629 Williamsburg, KY 40769 (LRC) 502-564-8100 (LRC) 502-564-8100 (75) (Home) 270-343-2264 (Home) 606-549-3439 121 Arcadia Park (Work) 270-343-5588 (30) Lexington, KY 40503 (40) 4012 Lambert Ave (LRC) 502-564-8100 1806 Farnsley Rd, Ste 6 Louisville, KY 40218 (Home) 859-221-3107 Shively, KY 40216 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-454-4002 (84) (Home) 502-447-2498 McKenzie Cantrell (38) 702 Capitol Avenue (Work) 502-447-9000 702 Capitol Avenue Annex Room 329G (5) Annex Room 424A Frankfort, KY 40601 4064 US 641 N Frankfort, KY 40601 (LRC) 502-564-8100 Murray, KY 42071 (LRC) 502-564-8100 (Home) 606-233-5660 (LRC) 502-564-8100 John Carney (51) (46) Joni L. Jenkins (44) 202 Southside Dr. 702 Capitol Avenue 2010 O’Brien Ct Campbellsville, KY 42718 Annex Room 432D Shively, KY 40216 (LRC) 502-564-8100 Frankfort, KY 40601 (LRC) 502-564-8100 (Home) 270-403-7980 (LRC) 502-564-8100 (Home) 502-447-4324 Matt Castlen (14) Dan Johnson (49) 7549 Iceland Road Jr. (12) 702 Capitol Avenue Maceo, KY 42355 714 N Broadway B2 Annex Room 413E (LRC) 502-564-8100 Providence, KY 42450 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-667-7327 (Home) 502-445-9355 (Work FAX) 270-667-5111 (Home FAX) 502-538-0877

THE KENTUCKY GENERAL ASSEMBLY 5 2017 Kentucky General Assembly

Melinda Gibbons Prunty (15) DJ Johnson (13) Jerry T. Miller (36) PO Box 411 702 Capitol Ave PO Box 36 Greenville, KY 42345 Annex Room 352B Eastwood, KY 40018 (LRC) 502-564-8100 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 Robby Mills (11) (89) James Kay (56) 702 Capitol Avenue PO Box 323 PO Box 1536 Annex Room 413C McKee, KY 40447 Versailles, KY 40383 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC/Home) 502-564-8100 (Home) 606-287-7303 Dennis Keene (67) (Work) 606-287-3300 1040 Johns Hill Rd Phil Moffett (32) (Work FAX) 606-287-3300 Wilder, KY 41076 812 Brookhill Rd (47) (LRC) 502-564-8100 Louisville, KY 40223 PO Box 273 (Home) 859-441-5894 (LRC) 502-564-8100 Bedford, KY 40006 (55) Tim Moore (18) (LRC) 502-564-8100 250 Bright Leaf Dr 417 Bates Rd (Home) 502-255-3392 Harrodsburg, KY 40330 Elizabethtown, KY 42701 (Work) 502-255-3286 (LRC) 502-564-8100 (LRC) 502-564-8100 (Work FAX) 502-255-9911 (Home) 859-734-2173 (Home) 270-769-5878 (24) (69) 702 Capitol Avenue 170 Herrington Ct #12 C. Wesley Morgan (81) Annex Room 402 Erlanger, KY 41018 702 Capitol Avenue Frankfort, KY 40601 (LRC) 502-564-8100 Annex Room 405D (LRC) 502-564-8100 (Home) 859-653-5312 Frankfort, KY 40601 (Work) 270-358-0868 Stan Lee (45) (LRC) 502-564-8100 PO Box 2090 (64) (20) Lexington, KY 40588 702 Capitol Avenue 817 Culpeper St (LRC) 502-564-8100 Annex Room 351C Bowling Green, KY 42103 (Home) 859-252-2202 Frankfort, KY 40601 (LRC) 502-564-8100 (Home FAX) 859-259-2927 (LRC) 502-564-8100 (Home) 270-842-6731 (61) (31) 16 Ridgeview Cir Rick G. Nelson (87) PO Box 24586 Dry Ridge, KY 41035 117 Gumwood Rd Louisville, KY 40224 (LRC) 502-564-8100 Middlesboro, KY 40965 (LRC) 502-564-8100 (34) (LRC) 502-564-8100 (LRC FAX) 502-564-6543 2007 Tyler Ln (Home) 606-248-8828 (23) Louisville, KY 40205 (Home FAX) 606-248-8828 702 Capitol Avenue (LRC) 502-564-8100 Jason Nemes (33) Annex Room 352C (Home) 502-451-5032 702 Capitol Avenue Frankfort, KY 40601 (73) Annex Room 416C (LRC) 502-564-8100 2059 Elkin Station Rd Frankfort, KY 40601 (Home)270-646-6821 Winchester, KY 40391 (LRC) 502-564-8100 Rob Rothenburger (58) (LRC) 502-564-8100 (59) 702 Capitol Avenue (Home) 859-745-5941 PO Box 8 Annex Room 351E Chad McCoy (50) Prospect, KY 40059 Frankfort, KY 40601 702 Capitol Avenue (LRC) 502-564-8100 (LRC) 502-564-8100 Annex Room 416B (Home) 502-228-3201 (Home) 502-633-5832 Frankfort, KY 40601 (Work) 502-645-2186 (LRC) 502-564-8100 Sannie Overly (72) (21) (80) 340 Main St PO Box 336 PO Box 121 Paris, KY 40361 Tompkinsville, KY 42167 Stanford, KY 40484 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-987-9879 (42) (1) PO Box 757 Darryl T. Owens (43) 350 Peppers Mill Drive Louisville, KY 40201 1018 S 4th St, Ste 100 Paducah, KY 42001 (LRC) 502-564-8100 Louisville, KY 40203 (Home) 270-744-8137 (Work) 502-741-7464 (LRC) 502-564-8100 (LRC) 502-564-8100 Michael Meredith (19) (Home) 502-584-6341 (60) PO Box 292 (76) 596 Walterlot Ct Brownsville, KY 42210 10 Deepwood Dr Florence, KY 41042 (LRC) 502-564-8100 Lexington, KY 40505 (LRC) 502-564-8100 (Work) 270-597-6049 (LRC) 502-564-8100 (Home) 859-371-8840 Russ A. Meyer (39) (Home) 859-299-2597 (Home FAX) 859-371-4060 106 Lone Oak Drive (16) Dean Schamore (10) Nicholasville, KY 40356 702 Capitol Avenue 120 Ball Park Rd (LRC) 502-564-8100 Annex Room 351B Hardinsburg, KY 40143 Suzanne Miles (7) Frankfort, KY 40601 (LRC) 502-564-8100 PO Box 21592 (LRC) 502-564-8100 Owensboro, KY 42304 (Home) 270-265-3163 (41) (LRC) 502-564-8100 (Home FAX) 270-265-3164 702 Capitol Avenue (62) Annex Room 432C Charles Miller (28) 702 Capitol Avenue Frankfort, KY 40601 3608 Gateview Cir Annex Room 316A (LRC) 502-564-8100 Louisville, KY 40272 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-937-7788

6 2017 Interim LEGISLATIVE RECORD 2017 Kentucky LRC General Assembly Publications Price List (71) Tommy Turner (85) PO Box 138 175 Clifty Grove Church Lancaster, KY 40444 Somerset, KY 42501 Daily Record Pickup: $82.50 (LRC) 502-564-8100 (LRC) 502-564-8100 (65) (Home) 606-274-5175 Daily Record Mailed: $82.50 (plus 112 W 11th St Covington, KY 41011 postage) (LRC) 502-564-8100 (52) (Home) 859-581-6521 PO Box 969 Friday Record Mailed: $30.25 (plus (Home FAX) 859-261-6582 Monticello, KY 42633 (Work) 859-261-6577 (LRC) 502-564-8100 postage) John Sims Jr (70) (Home) 606-340-8490 Individual Record Pickup: $2.75 702 Capitol Avenue Annex Room 429C Individual Record Mailed: $2.75 (plus Frankfort, KY 40601 (LRC) 502-564-8100 (3) postage) (Home) 606-748-1839 4317 Pines Rd Paducah, KY 42001 Kevin Sinnette (100) (LRC) 502-564-8100 PO Box 1358 (Home) 270-558-5139 Bills Ashland KY 41105 (35) (LRC) 502-564-8100 1280 Royal Ave Complete Set of Bills and Resolutions (Home) 606-324-5711 Louisville, KY 40204 (Home FAX) 606-329-1430 (LRC) 502-564-8100 (Pick-up): $425.00 (Work) 502-303-3732 Diane St. Onge (63) (26) Individual Bills Per Page: $.05 523 Kluemper Court PO Box 6605 Amendments Per Page: $.05 Fort Wright KY 41011 Shepherdsville, KY 40165 (LRC) 502-564-8100 (LRC) 502-564-8100 Roll Call Votes: $.15 Per Page (Home) 859-341-1231 (Home) 502-543-8209 III (86) Scott Wells (97) 545 KY 223 702 Capitol Avenue Flat Lick, KY 40935 Annex Room 413D Publications (LRC) 502-564-8100 Frankfort, KY 40601 (Home) 606-542-5210 (LRC) 502-564-8100 1-10 copies: Free (plus postage, if (22) 1481 Jefferson School Road mailed) Scottsville, KY 42164 (79) (LRC) 502-564-8100 PO Box 22778 Copies over 10: ($1.00 per copy, plus (Home) 270-622-5054 Lexington, KY 40522 (LRC) 502-564-8100 postage if mailed) Walker Thomas (8) (Work) 859-266-7581 702 Capitol Avenue Addia Wuchner (66) Annex Room 413F PO Box 911 Administrative Regulations Frankfort, KY 40601 Burlington, KY 41005 (LRC) 502-564-8100 (LRC) 502-564-8100 Bound Volumes: $253.12 (Home) 270-889-8091 (Work) 859-525-6698 (Home FAX) 270-885-5335 (96) PO Box 591 Administrative Register: $120.00 James Tipton (53) Grayson, KY 41143 Volumes and Register: $373.12 8151 Little Mount Rd (LRC) 502-564-8100 Taylorsville, KY 40071 (Work) 606-474-7263 (Work FAX) 606-474-7638 (LRC) 502-564-8100 Acts of the General Assembly

* Members of the Kentucky General Assembly may also be Regular Sessions: Priced after printing contacted by calling 502-564-8100. Special Sessions: Priced after printing

Journals House and Senate Complete Set, House Set, Senate Set: Priced after printing

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

THE KENTUCKY GENERAL ASSEMBLY 7 Committee Meetings

Interim Joint Committee on Veterinary Medicine Program and Optometry Index Appropriations and Revenue School Program. Kentucky pays the schools Minutes of the 6th Meeting the difference between in-state and out-of- A of the 2016 Interim state tuition for a pre-determined number of Administrative Regulation Review Subcommittee, 25 November 21, 2016 Kentucky Students. Kentucky Residents compete Appropriations and Revenue, 8 Call to Order and Roll Call for Kentucky’s reserved spaces. Those who are The 6th meeting of the Interim Joint awarded these spaces attend the institution and C pay the in-state tuition rate. Capital Projects and Bond Oversight, 23 Committee on Appropriations and Revenue was held on Monday, November 21, 2016, at He stated that recently Kentucky has funded E 1:00 PM, in Room 154 of the Capitol Annex. 164 veterinary medicine slots that were filled at Education, 9 Representative Rick Rand, Chair, called the Auburn University and Tuskegee University, and meeting to order, and the secretary called the 44 optometry slots that were filled at Southern G College of Optometry, Indiana University, Government Contract Review Committee, 34 roll. Present were: University of Alabama-Birmingham and most L Members: Senator Christian McDaniel, recently University of Pikeville. Legislative Research Commission, 16 Co-Chair; Representative Rick Rand, Co-Chair; Mr. Morgan explained that House Bill 303 Senators Danny Carroll, Chris Girdler, David P. specifies that CPE maintain the program’s FY N 2015-16 funding at $5.6 million in each year of Natural Resources and Energy, 19 Givens, Denise Harper Angel, Stan Humphries, Dennis Parrett, Brandon Smith, Robin L. Webb, the 2016-2018 biennium. In order to stay within P and Stephen West; Representatives John Carney, budget and maintain spaces CPE took necessary Program Review and Investigations Committee, Larry Clark, Ron Crimm, , Jeffery action and negotiated with SREB and partners 21, 24 a ‘hold’, which saved Kentucky approximately 6 Public Pension Oversight Board, 29 Donohue, Myron Dossett, Kelly Flood, Joni L. Jenkins, Terry Mills, Marie Rader, Steven Rudy, percent on tuition rate increases for most SREB T Sal Santoro, Dean Schamore, Arnold Simpson, spaces. This action funded all but one optometry Tobacco Settlement Agreement Fund Oversight Wilson Stone, Susan Westrom, and Addia space and all veterinary for FY 2016-17. For FY Committee, 38 Wuchner. 2017-18 CPE negotiated a lower rate for SREB Tourism, Small Business and Information Technol- Guests: Jay Morgan, Vice President, spaces and funded all but four optometry and ogy, 14 two veterinary spaces. Transportation, 11 Shaun McKiernan, Budget Coordinator, and Travis Powell, General Counsel, Council on Mr. Morgan explained that due to budget Postsecondary Education; Jack Couch, KIPDA. shortfalls CPE would need approximately LRC Staff: Jennifer Hays, Charlotte Quarles, $541,000 in order to recover the necessary funds Cynthia Brown and Jennifer Beeler to keep all contract spaces and recuperate CPE In honor of Eric Kennedy’s departure monies that were used out of its general fund from LRC and the Appropriations and Revenue budget. Committee, Chairman McDaniel and Chairman Rand proposed a resolution in his honor. The Other Business resolution was adopted by voice vote upon After the testimony at the October 27, 2016 a motion from Senator Parrett, seconded by meeting, Jack Couch, KIPDA presented before Representative Crimm. the committee regarding the formula dating back Approval of the Minutes to 1976 used to appropriate funds through the Representative Simpson made a motion, Joint Funding Administration (JFA). He stated seconded by Representative Stone, to approve that 70 percent of the JFA funds are divided the minutes of the October 27, 2016, meeting. evenly among the 15 Area Development Districts The motion carried by voice vote. (ADDs), 20 percent is the allocated based off Testimony on the Contract Spaces population, and the last 10 percent was used Program several different ways in the past. He explained Jay Morgan, Vice President, Shaun that this is the formula that the 15 ADDs have McKierman, Budget Coordinator and Travis agreed upon and discussed with the Department Powell, General Counsel of the Council on of Local Government in hopes to go back to this Postsecondary Education (CPE) gave a brief formula in the future. presentation on the Contract Spaces Program With no further business before the and how money is appropriated. committee, the meeting was adjourned. Mr. Morgan explained that Kentucky participates in the Southern Regional Education Board (SREB) Contract Spaces Program for

8 2017 Interim LEGISLATIVE RECORD Interim Joint Committee million in fiscal year 2018 compared to the $57 in due to poverty. No student is ever turned on Education million allocation in 2009. By statute, a maximum away from participating due to a lack of ability of three percent goes toward administrative to pay. Additionally, he has helped to facilitate Minutes of the 1st Meeting costs, and the remainder is divided among in-school field trips and academic assemblies of the 2017 Interim the 811 centers based on number of students by local museums which expose children to June 12, 2017 receiving free/reduced price lunch in the schools experiences with art and culture that they Call to Order and Roll Call the center services. There are minimum and might be prevented from due to lack of ability The 1st meeting of the Interim Joint maximum allocations to provide better equity to pay entrance fees or reliable transportation Committee on Education was held on Monday, among schools. Ms. Goins said that the per to museums. He encouraged members to visit a June 12, 2017, at 1:05 p.m., in Room 154 of the student allocation by year has declined while the local FRYSC, especially during one of the many Capitol Annex. Representative John Carney, number of students on free/reduced price lunch Back to School Bashes hosted by FRYSCs in the Chair, called the meeting to order, and the has increased resulting in a substantial need to fall, to get a better understanding of the excellent secretary called the roll. do more with less. As a result, many schools have and life-changing services they offer. Present were: requested waivers of the requirement to have a Chairman Carney thanked the presenters Members: Representative John Carney, Co- full-time center, rising from 47 schools in fiscal and stated his belief that wrap-around services Chair; Senators Danny Carroll, Alice Forgy Kerr, year 2012 to 114 in fiscal year 2018. such as those offered by FRYSCs to address Stephen Meredith, Gerald A. Neal, and Reginald Ms. Goins discussed the services provided the social issues affecting students are vital to Thomas; Representatives Danny Bentley, Regina by FRYSCs at the local level. Each is locally education and need continued funding. Bunch, Jim DeCesare, Mark Hart, Charles operated and form community partnerships To respond to a question from Representative Miller, Phil Moffett, Tim Moore, Rick G. Nelson, to provide programs, services, and referrals to York, Ms. Goins invited Maxine Reed, Regional Melinda Gibbons Prunty, Jody Richards, Steve students and their families. The goal of FRYSCs Program Manager, Eastern Kentucky to testify. Riley, Attica Scott, James Tipton, Russell Webber, is to meet the needs of all children and their Ms. Reed explained that personal safety programs and Jill York. families to enhance student academic success. range from information on bullying to internet Guests: Erin Klarer, Vice President of Largely, FRYSCs serve to connect children with safety for parents and children, self-defense, Government Relations, Kentucky Higher area programs and services such as backpack appropriate touches, and personal goal setting. Education Assistance Authority/Student Loan snack programs, dental health referrals, and The programs include how to identify safe places Corporation; ; Wayne Young, programming regarding personal health and and people you can trust. Many students that use Executive Director, Kentucky Association of safety. Ms. Goins specifically noted the rise in FRYSC services are in situations where they do School Administrators; and Bob Rowland, support and education for grandparents and not live at home and feel that any place is better Kentucky Retired Teachers Association. other guardians as a result of the large number than being homeless, and FRYSC staff try to help LRC Staff: Jo Carole Ellis, Janet Stevens, of incarcerated parents in Kentucky, almost them realize they have options that are safe. Joshua Collins, Yvette Perry, and Maurya Allen. double the national average. One of the goals of Representative Miller commented that in Representative DeCesare made a motion FRYSCs is to ensure that children have a stable, his personal experience FRYSCs are one of the to adopt the minutes of the January 30, 2017, loving home life in the face of the dramatic social best programs in schools and need continued meeting, seconded by Representative Hart. The issues they face, largely those of drug abuse and funding. Representative Carney spoke to this motion passed by voice vote. addiction. point and announced his intention to file a bill Family Resource and Youth Services Ms. Goins gave a snapshot of the establishing tax credits for businesses making Centers stakeholder survey performed in 2016. There donations to schools and school services. Melissa Goins, Director, Division of were over 25,000 respondents, of which 8,841 In response to a question from Representative Family Resource and Youth Services Centers were classroom teachers. Ninety-five percent of Scott, Mr. Reynolds agreed that some families (FRYSC), Kentucky Cabinet for Health and respondents agreed that FRYSCs meet needs that are in situations beyond the help of FRYSCs but Family Services and Graham Reynolds, FRYSC cannot be met in the classroom. Ninety-three that he always works to find any resources he can coordinator, LaGrange Elementary discussed percent agreed that FRYSCs are the catalyst for to assist them, whether at a local, state, or federal the valuable wrap-around student and family connecting services and resources with students level, even if it is not the specific assistance services provided by FRYSCs. Ms. Goins gave in need and that students in their communities they requested. He also works to reassure them a brief history of FRYSCs dating back to their were more in need of FRYSC’s programs than that they can come to the FRYSC to discuss or establishment as part of the historic 1990 ever before. seek assistance for anything, and he will try his Kentucky Education Reform Act (KERA). She Mr. Reynolds provided members with hardest to get them any help he can. explained the subtle but important difference some specific examples of services provided Responding to questions from between Family Resource Centers, Youth at the FRYSC that he coordinates in Oldham Representative Prunty, Mr. Reynolds said Services Centers, and Combined Centers and County. In the last year, his center has provided that his policy is to direct parents to services said there are 811 centers throughout the state. backpack snacks to over 200 students thanks to opportunities and then follow up with them However, many schools qualify to establish a a partnership with local churches, and provided to ensure they are accountable for actively center but do not have one, largely because of over 350 school supplies kits. The center also working toward getting the services they need, funding concerns. Also, many of the centers provides summer and spring break reading and outside of any barriers such as disability or serve multiple schools. All the centers share science programs that help to address academic lack of transportation. Ms. Goins added that common core components based on statutory loss and assist in remedial instruction. His by and large, FRYSCs are empowering agencies requirements, but each center also has unique center also provides opportunities for students that spend a majority of their time facilitating components that better reflect the needs of the to participate in activities and recreation, such connections with services instead of providing schools and communities that they serve. as basketball, archery, or scrapbooking, which direct handouts. Ms. Reed said that she wants to FRYSCs have an operating budget of $52.1 they would otherwise be unable to participate make sure that the needs of the children are met, THE KENTUCKY GENERAL ASSEMBLY 9 and that while it is disappointing, sometimes The instruction is intensive and accelerated of the Read to Achieve legislation was to parents are not going to be responsible for their so that children who are in the lowest levels of provide funds to every elementary school in children’s needs regardless of what services reading aptitude can catch up to their peers. Her the Commonwealth in an attempt to raise the they are directed to. She said that part of what role is to train teacher leaders in the theory and achievement level of the lowest performing FRYSCs do is provide training, especially to high clinical procedures of Reading Recovery and readers through direct services. She thanked the school students, in goal setting, making good provide leadership experiences to implement committee for their continued focus and support choices, and career preparedness to help break Reading Recovery in schools throughout the for this important work. the generational cycle of poverty. state. Teacher leaders provide the training to Ms. Foutch discussed the specific Representative Richards thanked the other teachers and become literacy leaders in experiences she has had as a teacher leader for presenters and FRYSC staff at large for their their regions. This makes Reading Recovery both Reading Recovery. She works in 14 school districts service. He felt that they were one of the most an early reading intervention model for students with 34 teachers in 32 schools. Her site services successful KERA programs and that he has visited as well as a professional development model for almost 300 students in Reading Recovery and many centers and is consistently impressed with in-service teachers. approximately 800 in small group interventions their programs and the hard working individuals The Read to Achieve program, which every year. She shared a story from a Reading who staff them. In his opinion, FRYSCs are one supports Reading Recovery, began in 1998 with Recovery teacher who told of a struggling first of the most cost effective services because they the passage of Senate Bill 186 of the 1998 Regular grade reader who could not read at kindergarten work with so many community partners. Session and the creation of the Early Reading level when she began the program, despite being Responding to a question from Senator Incentive Grant (ERIG) program. This provided a participant in a small group intervention. In less Meredith regarding accountability, Ms. Goins grants to schools to focus on implementation of than 11 weeks of intense instruction, the student answered that metrics currently used are college/ research-based reading models to address the moved 15 text levels and was slightly above her career readiness, kindergarten readiness, and test learning needs of primary students at low levels. peer average. Additionally, the program had scores but those are not easy to directly associate During the 2005 Regular Session, Read to Achieve changed the student’s perception of herself as with FRYSC programs. They also rely on the was formalized with the passage of Senate Bill a reader. The teacher shared that the child had stakeholder survey to know if their programs are 19. This focused on reading diagnostics and later been seen sitting quietly reading while the addressing the needs of the communities they intensive reading interventions for struggling rest of her classmates buzzed about her during serve. She said that feedback from that survey readers by stating that programs used by public the last days of school. Ms. Foutch said that every indicates they are. She said they are currently schools must be based on reliable, replicable Reading Recovery teacher has multiple stories of working on a program review and that it might research and offer short-term, intensive one-on- success about the impact they have on children. provide the accountability measures Senator one or small group instruction in the essential She encouraged members to visit a Reading Meredith is interested in. skills necessary to reach reading proficiency Recovery lesson because she knows it will have Representative Riley commented that taught by highly trained, certified teachers. an impact on them as well. She feels that teaching FRYSCs provide a valuable service throughout In the 20 years of the Read to Achieve children to read has the biggest impact on their the state providing not just physical goods like program, state average fourth grade scores lifelong success. food and warm clothes, but also the love and in reading on the National Assessment for Dr. Smith shared some of her personal support that so many students need and cannot Education Progress (NAEP) have risen from experiences with Read to Achieve and Reading get at home. 213 in 1992 (two points below the national Recovery. Her site was established in 2003 and Senator Neal said that he has heard only average) to 228 in 2015 (seven points above the provides support for Reading Recovery teachers good things about FRYSCs since their inception national average). In 1992, Kentucky ranked in 15 school districts. Thanks to the improved but that accountability data would be useful to twenty-seventh in the nation in fourth grade Read to Achieve funding in 2005, the number the legislature when making policy and budget reading at the start of Read to Achieve, but of Reading Recovery teachers in South Central decisions. in 2015 Kentucky was ranked ninth. More and Southeastern Kentucky was vastly increased Representative Bunch said that in her importantly, the lowest achieving students, those and provides services to exponentially more opinion, FRYSCs have an immeasurable impact scoring Below Basic, have seen improvement. children in need. Teachers affiliated with the on the whole child thanks largely to the love and The percentage of Kentucky students scoring Madison County site have served over 12,000 support that FRYSC staff are able to provide. Below Basic has dropped from 38 percent in of the most at-risk primary students. Every day, Read to Achieve 1998, to 25 percent in 2015. At the same time, teachers provide one-on-one Reading Recovery Dr. Lindy Harmon, Reading Recovery the percentage of students scoring in the highest lessons to first grade students and small group Trainer, University of Kentucky Center for category, Proficient/Advanced, has increased instruction to kindergarten to third grade Collaborative Literacy Development (CCLD); from 29 percent to 40 percent. Results of nearly students, averaging 30-40 students per teacher Teresa Foutch, Reading Recovery Teacher every statistical analysis performed by the CCLD every year. Leader, Washington County; and Dr. Amy Smith, in their evaluation of Read to Achieve has found Over the last five years, at least 80 percent Reading Recovery Teacher Leader, Madison that participants outscored non-participants. of students who participated in a full Reading County were present to speak to the committee Also, results are lower for students only served Recovery program reached an average reading regarding Read to Achieve and Reading Recovery. in second or third grade and for students who level. Dr. Smith said this is even more impressive Dr. Harmon said that Reading Recovery is a participate over multiple years. Results largely when you consider that the average number one-on-one, early reading intervention for first suggest that early, short-term intervention of half-hour lessons is 60. Thus, in only 30 grade children. It was developed by Dr. Marie provides the best opportunity for struggling instructional hours, children who started in the Clay of New Zealand over 30 years ago and readers. Eighty-five percent of students served lowest portion of their first grade class become brought to the United States by the Ohio State only in first grade scored at or above grade level independent readers. Reading Recovery also University. Currently, Reading Recovery has on the third grade ITBS exam. prevented the need for further, often costlier, been implemented in 45 states and 5 countries. Ms. Harmon said that the initial intent interventions in subsequent grades. More

10 2017 Interim LEGISLATIVE RECORD importantly, it set the stage for those children to program is such an early intervention model, LRC Staff: John Snyder, Brandon White, fully benefit from and succeed in school. many students have not had a dyslexia assessment Dana Fugazzi, and Christina Williams Dr. Smith said that Representative Shell, yet. The goal of Reading Recovery is to reach the Implementation of Legislation from the who had visited the Madison County site and lowest performers before they are considered for 2017 Session observed lessons, refers to Reading Recovery special education services to see if that will help Rick Taylor, Deputy Commissioner, as “magic.” If magic is defined as “something them “untangle themselves” before intervention Department of Vehicle Regulation, Kentucky having an extraordinary influence or power is needed. Transportation Cabinet, (KYTC) updated the to create, change, or transform,” then Reading Responding to questions from Chairman Committee on the implementation of 14 key Recovery is indeed magic in her opinion. It Carney, Dr. Harmon said that approximately pieces of legislation from the 2017 Session. builds the professional knowledges of teachers 20 programs had been cut since 2013. And Joining Mr. Taylor for an update on HB 192 and transforms the lives of children. In 2016, that the steering committee, which used to and HB 410 was Matt Cole, Director, Division the Madison County site collected testimonial collect that information, has been changed to of Driver Licensing. Director Cole stated that stories from over 250 former students, as well as an advisory council in a recent executive order HB 192 encompasses how a foster child may be parents, teachers, and administrators. She shared from the Governor and that the membership of able to proceed with getting a license or an ID. some of them as a video presentation to the the council will be changed from the statutory He stated that a hurdle that was once an issue committee. Dr. Smith closed with a testimonial makeup in Senate Bill 186 of the 1998 Regular was getting a court order that would make the from a parent which simply said, “Reading Session, also as part of the executive order. foster parents fiscally responsible, adding that Recovery saved my son.” She thanked legislators Chairman Carney thanked the presenters. HB 192 will open up two different paths to for supporting Read to Achieve on behalf of He also directed members to the tentative interim help with this process. One path will consist of parents, teachers, administrators, and children. schedule for the committee and announced the a foster child being evaluated with a nine page Read to Achieve and Reading Recovery are a next meeting of the committee would be July 10, form through the Cabinet for Health and Family critical piece of the collective solution for the 2017, at 1:00 p.m. in the Capitol Annex. With no Services (CHFS) to ensure eligibility to further future of the Commonwealth. further business to come before the committee, pursue the process. After that point, there will be Responding to a question from the meeting was adjourned at 2:30 p.m. a letter issued that the foster parent will fill out Representative Moffett, Dr. Harmon said the in conjunction with the parent/guardian form, scores used are from the NAEP test and that Interim Joint Committee which will allow a child to proceed with the the biggest way to accelerate improvement on Transportation process of obtaining their licenses. The second would be to expand the reach of the program. path, currently still being constructed, involves Minutes of the 1st Meeting It would be difficult to make Reading Recovery CHFS getting an insurance policy so a child who of the 2017 Interim the classroom standard, however, because it is is in the custody of the state but not under a June 6, 2017 designed as an intensive, one-on-one program. foster parent, can legally sign for themselves and Call to Order and Roll Call However, providing the Reading Recovery be protected under that insurance policy. The The 1st meeting of the Interim Joint training to more teachers helps them implement cabinet is currently developing an RFP to obtain Committee on Transportation was held on portions of the theory in their classrooms and this coverage. Until that path becomes viable, the Tuesday, June 6, 2017, at 1:00 PM, in Room 154 of become better aware of ways to help struggling foster parent form path will be the only option the Capitol Annex. Senator Ernie Harris, Chair, readers sooner. available. called the meeting to order, and the secretary In response to a question from In response to a question asked my called the roll. Representative Tipton, Dr. Harmon said that Chairman Harris, Director Cole stated that the Present were: data following the pathways of children from nine page document has been constructed by Members: Senator Ernie Harris, Co-Chair; first grade through high school graduation is CHFS, and KYTC has given feedback on the Representative Marie Rader, Co-Chair; Senators available, or can be gathered, but has not been document. Once it is complete KYTC will be Joe Bowen, Jared Carpenter, C.B. Embry Jr., published. Individual studies have been done, notified. The letter that is issued has also been a Jimmy Higdon, Paul Hornback, Gerald A. Neal, however, which show positive trends. Students collaborative effort between both cabinets. Albert Robinson, Brandon Smith, Johnny Ray who complete the program in first grade continue Mr. Taylor gave an update on HB 410 Turner, and Mike Wilson; Representatives Lynn to be successful students and reach higher goals stating that KYTC recently received a response Bechler, Tim Couch, Ken Fleming, Chris Fugate, than non-participant peers. from Department of Homeland Security, which Al Gentry, David Hale, Dennis Horlander, Kenny Responding to a question from issued a grace period to all states that are under Imes, Dan Johnson, James Kay, Donna Mayfield, Representative Prunty, Dr. Smith said that an extension set to expire June 4, 2017 in order to Suzanne Miles, Charles Miller, Robby Mills, Tim currently reading is taught as a combination of continue to review extension requests. The grace Moore, Rick Rand, Steve Riggs, John Sims Jr, Jim whole word and phonics methodologies, but that period lasts until July 10, 2017. The feedback has Stewart III, and Walker Thomas. the specifics are different in each school district. been positive and the cabinet does not anticipate Guests: Rick Taylor; Deputy Commissioner, In her opinion, Reading Recovery trained any issues. Circuit Court Clerks continue to be Department of Vehicle Regulation, KYTC; Matt teacher leaders have more expertise and bring front line actors, communicating with citizens Cole, Director of Driver’s License, KYTC; Brian those influences into their instruction in the on the issue, and KYTC has continued to meet Beaven, Director, Motor Carriers; Stephanie classroom, gradually bringing improvement for with them as the process has continued. The Williams, Director, Motor Vehicle Licensing; all students. However, not all students need the cabinet has also met with stakeholders such as all Mike Miller, Assistant Director, Customer same intensity. of the airports in Kentucky that have commercial Services, KYTC, Patty Dunaway, State Highway In response to further questions from flights, TSA, the Social Security Administration, Engineer, KYTC, Paul Looney, Deputy State Representative Prunty, Dr. Harmon answered Fort Knox and Fort Campbell, Kentucky State Highway Engineer, KYTC, and John Moore, that dyslexia assessments are not a part of Police, and the Kentucky Board of Elections. All Director of Planning, KYTC. the Reading Recovery program and since the of the stakeholders have been given an overview THE KENTUCKY GENERAL ASSEMBLY 11 of the legislation and communication has been Director, Division of Motor Vehicle Licensing, by July 1, 2017. He added KYTC will continue to established for the continuation of the process. testified on several key legislation affecting the work towards developing a regulation that needs Mr. Taylor stated the next deadline in the division. Mr. Taylor stated HB 27 is a speed title to be filed. Several issues that need to be placed process is July 10, 2017, in which the grace period bill, which moves the timeframe for review of a in the regulation have already been identified. ends. The Department for Homeland Security title from 24 hours to 48, giving staff adequate Senate Bill 189 involves placing a deaf or ensures that the cabinet will receive feedback time to review those title applications before hard of hearing indicator in the AVIS system from them on the status of the extension request. they are approved. House Bill 163 involving to notify law enforcement when someone is He added the cabinet has developed an RFP work salvage titles for insurance companies has stopped that the person operating that motor team; the deadline to issue the RFP is September been put into place with no foreseen issues. vehicle may be deaf or hard of hearing. That 1, 2017. The cabinet has a goal to select a provider House Bill 270 involves the process that allows cabinet is currently working on the system to get by January 1, 2018, which will give the provider manufactured homes that have been converted allow for the implementation of SB 189, which 12 to 15 months to roll out and fully implement to real property to receive a title by filing an the anticipated timeframe is August, 2017. the program. Mr. Taylor stated the last deadline affidavit of severance with the County Clerk. The Representative Moore inquired about that has been set is to gather information on state creation of the affidavit of severance is the key homeschooled children who have reached to state verification which will tackle after the piece that is needed for the implementation of 16 years of age that are told in order to obtain new system is rolled out. He added that the next this legislation. The County Clerk Association is a license they must first get proof of academic deadline for TSA and air travel is January 22, creating the document. House Bill 350 changes performance from a local school board, which 2018. If there is an extension, there is no change the eligibility requirements to obtain a Veteran has no knowledge of their academic performance. of process, and Kentucky citizens will be able to license plate for National Guard and Reserve Matt Cole stated that is addressed on a daily basis use their Kentucky Driver’s licenses as they do members from two years to 180 days of active with the no pass, no drive stipulation. He stated currently. duty time service. No issue has been anticipated all student drivers are required to meet that In response to a question asked by Senator on this legislation. eligibility and currently the gap is being bridged Embry, a citizen who wishes to fly commercially House Bill 404 allows golf carts and low between homeschooled, private, and publicly within the next several months will be able to speed utility vehicles to make commercial parcel schooled children. use their current Kentucky Driver’s licenses to deliveries. Mr. Taylor stated the cabinet has been Mike Miller, Assistant Director, Customer do so, as the first deadline does not occur until tasked with titling and registering such vehicles Services Division, addressed KYTC’s January, 2018. At that time Kentucky licenses and making sure that they have commercial communication efforts concerning the and ID cards may be used if the state receives the insurance on file, which will require some implementation of new legislation. Mr. Miller expected extension. programming efforts by KYTC. The cabinet has stated there are three different approaches In response to a question asked by been working on the programs needed, but the to informing the traveling public about new Representative Bechler concerning citizens who programs have not been completed. They are legislation. The Department’s frontline support have recently obtained their driver’s license, expected to be completed by mid-September call center assists customers, businesses, clerks, Director Cole stated there would be a prorated 2017. A commercial low speed vehicle license and other agencies. Agents at the call center use fee in place for those who wish to later receive a plate will then be issued. This should be an scripted knowledge articles (KAs) to provide REAL ID. acceptable timeframe because delivery services approved information to the public. The KAs Brian Beaven, Director, Division of Motor estimate that peak usage from these vehicles will reflect new or revised Department of Vehicle Carriers joined Mr. Taylor for update on HB 174, occur during the Christmas season. Regulation related laws and regulations. The HB 184, and HB 265. Mr. Taylor stated for both Senate Bill 73 will allow for the titling and website Drive.ky.gov is also a tool that is utilized. HB 174 and HB 265, there is no action needed registration of autocycles as motorcycles. The The website hits have increased 44 percent since by KYTC other than to have communication cabinet is creating a new category for statistical its go-live date with over 288,000 customers with commercial vehicle enforcement to inform and tracking purposes in the state registration helped last month alone. The website has been them of the changes in weight tolerance and system. They have also contacted the Kentucky the best source for informing and educating the the definition of non-divisible loads for state State Police to discuss updating of accident public. Social media platforms such as Facebook maintained routes from an 8 hour dismount report forms to add autocycles as a category or and Twitter are also utilized, with more social and disassemble to a 4 hour dismount and the possibility of marking autocycles in the other media platforms being launched. disassemble, which has been done. Mr. Beaven category. The cabinet anticipates being ready to In response to a question asked by updated the Committee on HB 184, the metal register and title autocycles beginning July 1, Representative Fleming concerning the plan commodity permit bill. He stated the permit will 2017. of action to address Governor Bevin’s request be a benefit to the growing aluminum and steel Senate Bill 122 involves allowing sons and for a 1 percent cut (approximately $113 industries in Kentucky. The cabinet is on target daughters of veterans to obtain a Gold Star million), Mr. Taylor stated the Department for for a July 1, 2017 roll out of the permit. It will be license plate. The effective date for this legislation Vehicle Regulation is always looking for ways available online via the Drive.Ky.Gov website. A will January 1, 2018. No issues are anticipated for to save money, and that effort will continue. map is also in the process of being developed of the rollout of SB 122. Representative Fleming also requested approved routes for the implementation of this Senate Bill 176 allowed for the titling and information for a five year trend of what type of legislation. registration of high mobility multipurpose vehicles have been registered. Senator Bowen, who stated he was in full military vehicles (HMMMVs). The cabinet has In response to a question asked by support of HB 184, raised awareness on the gathered and reviewed inspection forms from Representative Miles, Mr. Miller stated there are possible need to address other commodities, other states, as well as worked with other military links available on Drive.ky.gov to each division, such as the transportation of wood products, surplus owners to get their feedback, in order to and within each division, there are different having similar permits in the future. move forward with this legislation. The cabinet menus where customers can look up specific Mr. Taylor and Stephanie Williams, will be ready to title and register these vehicles information they are interested in such as truck

12 2017 Interim LEGISLATIVE RECORD weight information. SHIFT is needed. is in the process of calculating scores for the Chairman Harris congratulated and Ms. Dunaway stated the goal in implementing statewide model. He added that, in the upcoming thanked the cabinet, both previous and current SHIFT is to embrace a data-driven approach weeks, KYTC will be meeting with district offices administrations, for its thorough work and to guide transportation spending, establish to look at their projects. On June 22, the cabinet excellent professionalism. clear priorities, invite input at both the district will release its preliminary recommendations for Update on the status of the PAUSE 50 and local level, provide transparency, deliver the statewide project prioritization, as well as the initiative a reliable and dependable plan for businesses scores for the regional model. In early August, Patty Dunaway, State Highway Engineer, and citizens, and to create confidence for future KYTC will be meeting with each region to look KYTC, and Paul Looney, Deputy State Highway federal and state infrastructure investments. The at the projects and how those projects can be Engineer, KYTC updated the Committee on the top priorities in implementing SHIFT are to delivered. In late August final regional project status of the PAUSE 50 initiative which was put improve safety, preserve existing infrastructure, selections will be determined, with a target in place to help shore up the road fund following reduce congestion, fuel economic growth, and date of a September 1st deadline to have final the loss of the 6.5 cents on the motor fuels tax, spend tax dollars wisely- benefits versus cost. recommendations for statewide and regional as well as spending on projects over the previous In considering the first factor of safety, levels. few years. Ms. Dunaway stated KYTC had the cabinet plans to measure this by how many In response to a question asked by Senator planned to allot approximately $50 million of crashes and the frequency of crashes that there Hornback concerning the makeup of regions state funds for projects for all phases, including are on roadways, as well as how the roadway and each region receiving equal funding design, right-of-way, utility, and construction, design impacts the number and frequency of when the North Region contains the three for the second year in the biennium (FY 18.) crashes. When considering congestion, KYTC major metropolitan areas of the state, Ms. Currently, the cash balance of the cabinet will will be observing how many vehicles are on the Dunaway responded that there are two funding allow for that $50 million allotment. The road road daily, and how that volume impacts service categories both regional and statewide. The fund balance has also been positive, therefore levels. In considering economic growth, potential statewide funding would include the national more than the $50 million may be able to be job growth and the daily traffic volume, as well highway system and those major routes such invested towards projects. The amount of that as daily freight volume will be considered. In as interstates. She added the cabinet anticipates additional investment is unsure due to major making sure tax dollars are spent wisely, formula that the majority of the projects through the payments that still need to be made, but the measurements that are considered are how much statewide funding allocation are going to be in cabinet plans to evaluate those balances month travel time could be saved, what the financial the metropolitan areas. Ms. Dunaway added to month. Ms. Dunaway stated there is not yet value of time savings could be, how much could that after the statewide list of projects comes a list of projects that will be coming out in the be saved by reducing crashes, and what the out, remaining funding will be divided equally letting in July, or projects that will enter the project costs would be. Asset management is also amongst the regions, which would ensure that all design, and continuing in the utility and right- another factor to be considered, which includes districts and areas across the state would have an of-way phases. She added in the near future knowing what pavement repair and replacement opportunity to receive funding. KYTC plans to place projects on the website that costs would be, and what the condition of bridges In response to a question asked by will include what will be in the letting in July. and overpasses are. Representative Miller, Ms. Dunaway reiterated The cabinet will continue to communicate with The proposed statewide funding formula that the progress of the PAUSE 50 projects will each district to discuss which projects can be of five components are weighted as follows: be revealed in July, 2017 and will be updated on moved forward into the design, utility, and right- improve safety 25 percent, reduce congestion a monthly basis as far as which projects are in of-way phases. Chairman Harris reiterated that 20 percent, fuel economic growth 20 percent, which part of the process, once debt payments what the cabinet’s purpose is with the PAUSE spend tax dollars wisely 20 percent and preserve are made. 50 plan is to protect cash flow. He added August infrastructure 15 percent. The proposed regional In response to a question asked by Senator and September are two critical months for large funding formula has seven components, Wilson, Ms. Dunaway stated all 1,200 sponsored payments, therefore that tends to dictate what is weighted as follows: improve safety 20 percent, projects that received local input on are the ones being done within PAUSE 50. reduce congestion 10 percent, fuel economic that will be evaluated using the SHIFT formula. Strategic Highway Investment Formula growth 15 percent, spend tax dollars wisely 15 Representative Fleming expressed his for Tomorrow (SHIFT) percent, preserve infrastructure 10 percent, appreciation to KYTC for the quality of work Ms. Dunaway stated that for many years, district priorities 15 percent, and local priorities that it performs, especially through difficult Kentucky’s highway plan has been overpromised. 15 percent. processes such as PAUSE 50 and SHIFT. He There are currently more than 1,400 projects Mr. Looney informed the Committee of also requested a historical view of data driven in the highway plan. Of those 1,400, only half where KYTC is in the process of developing the past allocations of dollars compared to current are even partially funded, and they are funded highway plan. He stated KYTC first develops projects as well as future projects. mostly with federal dollars. This results in an an initial project list and then each district Senator Bowen stated his appreciation for undermining of public confidence due to not and local leaders identify needed changes. The the SHIFT plan. In clarification on funding of being able to count on projects that are in the cabinet then calculates scores for statewide projects of the SHIFT plan, Mr. Looney stated plan. She added that state projects are vastly and regional projects. District and local leaders the projects that can be federalized, will be exceeded funding. More than 90 percent of the provide input on regional projects. The Kentucky federally funded. Senator Bowen reiterated state-funded projects in the current highway Transportation Cabinet then develops a draft Senator Hornback’s comments concerning plan don’t have state dollars to pay for them. The highway plan for the Governor. The Governor federal dollars primarily being allocated to the current state funding in the current highway finalizes, and presents the plan to the General economic engines of the state, such as northern plan has $7.165 billion listed projects, with Assembly. The final step is when the General Kentucky, Louisville, and Lexington, and that anticipated funds available of only $690 million. Assembly and the Governor enact a highway perhaps the federal money should be allocated Therefore, the implementation of a plan such as plan. Mr. Looney added currently the cabinet to other areas of Kentucky that they too might THE KENTUCKY GENERAL ASSEMBLY 13 become economic engines. the tax rate falling, the gas tax should be raised UAS Engineer Department of Aviation, KY Representative Imes thanked KYTC for the approximately 5 to 7 cents per gallon. Chairman Transportation Cabinet; Jay Fossett, Principal, efforts that have been put forth in developing the Harris also reminded the Committee of the Strategic Advisers LLC; Eric Summe, President/ SHIFT plan. He asked for clarity in the reducing upcoming loss of toll credits. Mr. Looney stated CEO, MeetNKY/Northern Kentucky CVB; Jack congestion and fueling economic growth areas. the state has been fortunate enough to use toll Moreland, President, Southbank Partners. Mr. John Moore, Director of Planning, stated the credits for the state match on federal projects in LRC Staff: John Buckner, Chip Smith, and cabinet is evaluating economic growth in two the past. Those toll credits will be running out in Emma Mills different ways. He stated for statewide projects approximately 2020 to 2021. When that happens, Kentucky’s Angel Investor Tax Credit the cabinet modeled North Carolina’s process, more state dollars will need to be transferred Program which used an economic model called Tetris, to match in order to receive federal funding. Casey Barach, Director of Kentucky a commercially available software that uses the Kentucky receives approximately $700 million Innovation Network at Northern Kentucky projects potential improvement of travel time in state funds. He stated starting in 2019, the presented “Kentucky’s Angel Investor Tax Credit and mobility throughout the region, as well as state will be adding another $40 million in state Program – An Economic Development Success” the census and economic indicators of the area to funds to match and by 2020 and 2021 there will with a focus on the entrepreneurship benefits of predict what the economic impact of that project be an approximate match of $100 million to $150 the Angel Investor Tax Credit Program. Director will be. The regional process involves looking at million per year. Chairman Harris added that as Barach reviewed three tenants of successful the disadvantaged counties in the state and how a result of this, SP type projects will be shorted economic development: a project would impact the predominate routes by approximately $100 million. Attracting business to the region in those counties. In response to an inquiry by Representative Retention & Expansion of business Mr. Moore stated cost/benefit analysis is Fleming concerning different ways to possibly Entrepreneurship evaluated as commercially available software is calculate the gas tax, Ms. Dunaway stated the To foster a successful Entrepreneurship used. Factors that are evaluated include travel cabinet would be happy to meet with him Ecosystem, it is important to have key time savings and the anticipated improvement regarding different ways to do that. components: policy, finance, culture, supports, of mobility, as well as the safety benefit which Chairman Harris requested a monthly human capital, and markets. The Angel involves the anticipated number of accidents that update on the PAUSE 50 plan as projects are being Investor Tax Credit focuses on cultivating the would be reduced by the project, and that is the let. With no further business to come before the finance, or investment capital, component in benefit vs. overall cost. Committee, Chairman Harris adjourned the Kentucky. Director Barach noted that prior to Representative Bechler stated he appreciated meeting at 2:25 P.M. the enactment of the Angel Investor Tax Credit, that data driven work is being done to preserve Kentucky based businesses and start-ups tended the infrastructure. He argued with only a Interim Joint Committee on to leave the state in search of investment capital. statewide infrastructure score of 15 percent and Tourism, Small Business, and He feels the passage of the Angel Investor Tax a local score of 10 percent for infrastructure Information Technology Credit program in 2014 was a game changer for funding, that safety might be improved if there investment in Kentucky businesses. Minutes of the 1st Meeting were better bridges and roads. He encouraged Since 2014, Kentucky has developed a of the 2017 Interim the cabinet to look into the possibility of more vibrant and robust entrepreneurship ecosystem June 7, 2017 money going towards infrastructure, primarily throughout the Commonwealth. The purpose Call to Order and Roll Call bridges. Ms. Dunaway reiterated that there are of the Kentucky Angel Investment Tax Credit The 1st meeting of the Interim Joint separate pots for maintenance funding. Statewide program is to encourage qualified individual Committee on Tourism, Small Business, and maintenance funding, known in budget investors to make capital investments in Kentucky Information Technology was held on Wednesday, language as “Z various” accounts, are used for small businesses, create additional jobs, and June 7, 2017, at 10:30 AM, in Ballroom B of unexpected needs. She added the cabinet has a promote the development of new products and the Northern Kentucky Convention Center. responsibility to preserve the infrastructure and technologies. Qualified individual investors Representative Diane St. Onge, Chair, called the that it continues to focus on doing that. making qualified investments in qualified small meeting to order, and the secretary called the In response to a question asked by businesses may be eligible for incentives in this roll. Representative Miles, Ms. Dunaway stated if program. The Commonwealth, through Present were: projects are being let into the construction KEDFA (Kentucky Economic Development Members: Senator Alice Forgy Kerr, Co- phase, they would not be evaluated in the SHIFT Finance Authority), allocates the income tax Chair; Representatives Diane St. Onge, Co- category, but those that are in the design, right- credits to qualified investors. Chair, and Tommy Turner, Co-Chair; Senators of-way, or utility phases would need evaluation As evidence of the popularity of the Ernie Harris, Wil Schroder, Reginald Thomas, for the SHIFT category. program, Director Barach pointed to the and Max Wise; Representatives Larry Brown, Chairman Harris stated that the gasoline increase in pace of approved tax credits George Brown Jr, John Carney, Matt Castlen, tax dropped from approximately 32 cents by KEDFA. In 2015, $3 million in annual Jeffery Donohue, David Hale, Angie Hatton, per gallon to 26 cents per gallon, of which allocated tax credits were approved over a Richard Heath, Dan Johnson, Michael Meredith, approximately 1.4 cents is for underground span of eight months. In 2017, all $3 million Robby Mills, Melinda Gibbons Prunty, Steven storage. He added that every penny in fuel tax in tax credits were approved in one month. Rudy, and John Sims Jr. results in approximately $30 million in revenue. In addition, when the program started, Guests: Casey Barach, Director, Kentucky Ms. Dunaway added that fuel tax revenues are Director Barach said there were only a few Innovation Network at Northern Kentucky; shared at approximately a 50/50 split with cities, registered investing “Angels”, mostly in the Steve Parker, Commissioner, Dept. of Aviation, counties, and the rural secondary road program. Lexington area, but as of 2017 there are 380 KY Transportation Cabinet; Todd Bloch, Chairman Harris made the argument that in registered Angels investing in 85 companies Deputy Commissioner, Dept. of Aviation, KY order to get us back to where we were prior to with a total of 384 investments made. Some Transportation Cabinet; Glenn Anderson,

14 2017 Interim LEGISLATIVE RECORD companies benefitting from the program Morehead State University’s Space Science Center program in America. He brought up the problem include Wyzerr, Inc., an online survey has become an important center for research in of the National Air and Space Education Institute building company; Paper Water Bottle, nanosatellite technologies. In partnership with based out of Bowman Field that was an intrinsic an eco-friendly packaging company; and NASA, Morehead has developed a nanosatellite support to the Bexion Pharmaceuticals, a pharmaceutical with a research mission to find ice on the Moon. 37 high school aviation programs in company focusing on Cancer research. Commissioner Parker pointed out to the Kentucky. It had a financial model that was Director Barach believes the next step committee that the General Assembly and unsustainable and went out of business. for the program is educating people across Governor helped tremendously by allocating Commissioner Parker has been working the state. He would be willing to speak $10 million from the General Fund for fiscal year extensively with legislators and universities to to the success of the Angel Tax Credit 2017-2018. He notes by doing that, they have try to save the program by some other means. Program throughout the Commonwealth. changed the face of general aviation in Kentucky Additionally, in order to continue the for a decade. The $10 million helped catch up Responding to a question from program’s success, he would like to address deferred maintenance on the general aviation Representative George Brown regarding the program funding issue, which draws airports across the state. The Department of Bluegrass Airport in Lexington lagging from a pool of funds that may run out in Aviation will also be requesting an additional behind Northern Kentucky and Louisville, two years. He feels that annual funding $10 million per year until FY 2019-2020, which Commissioner Parker acknowledged some may be more appropriate. he believes could change general aviation in of the limitations of the airport, such as the In response to a question from Kentucky for a generation. inability to lengthen the runways or expand Senator Wil Schroder, Director Barach The Department of Aviation is responsible additional runways due to the location of the confirmed some investors in the program for 59 airports in Kentucky, 53 of which are airport. He did highlight other ways the airport do come from out-of-state, such as from general aviation airports. The department is also is progressing, such as a new fueling hangar and the Cincinnati area. Out-of-state investors responsible for 250 private airfields and heliports through education outreach programs. could then sell the resulting tax credit. in Kentucky. In relation to Unmanned Aircraft Riverfront Commons Story Map Responding to a question from Systems (UAS or drones), the department has also Updating the committee on the Northern Representative Angie Hatton on how to expand been designated the state government clearing Kentucky Riverfront Commons Story Map the program, such as to Eastern Kentucky, house for all drone related activity. In practical were Jack Moreland, President of Southbank Director Barach believes the best way to utilize terms, the department meets with a multi- Partners, Jay Fossett, Principal with Strategic the program is through educating investors cabinet working group that reviews aviation Advisers LLC, and Eric Summe, President/CEO throughout Kentucky about the program. issues around the state, builds drones in-house of the MeetNKY/Northern Kentucky CVB. Mr. Aviation is Rockin’ Kentucky! General to provide assistance other state departments Moreland welcomed the committee to Northern Aviation’s Impact on Economic Development and actively recruits UAS/drone related Kentucky and explained that Southbank Steve Parker, Commissioner, Department businesses to Kentucky. The department is also Partners is a non-profit organization that does of Aviation, KY Transportation Cabinet; Todd responsible for training state employees to fly economic development for six cities along the Bloch, Deputy Commissioner, Department of drones safely and successfully according to FAA Ohio River, Ft. Thomas, Dayton, Bellevue, Aviation, KY Transportation Cabinet; Glenn rules. The Commissioner’s goal is to have five to Newport, Covington and Ludlow with an inter- Anderson, UAS Engineer, Department of seven drone pilots and enough equipment in the local agreement to develop the riverfront in all Aviation, KY Transportation Cabinet presented department to provide drone aerial coverage to of these communities. Riverfront Commons is “Aviation is Rockin’ Kentucky! General Aviation’s state entities in need of assistance. One example intended to be an 11 mile walking and biking Impact on Economic Development” to highlight of new UAS/drone related opportunities coming trail along the riverfront lined with businesses Kentucky’s importance to the nation in aviation to Kentucky is the new USA Drone Port in the and shops to attract tourism to Northern innovation and expansion. Hazard area where companies can test and make Kentucky. A thorough explanation of the project Commissioner Parker discussed the drones. The port will also be used as a training was presented in a video to the committee. expansions taking place at CVG (Cincinnati/ facility to learn how to fly drones according to Following the presentation, Jay Fossett Northern Kentucky International Airport). FAA rules. reviewed the interactive website for the DHL’s recent $108 million expansion of its Commissioner Parker also wants to impress Riverfront Commons project (http:// cargo hub at CVG has resulted in 900 additional upon the General Assembly the need to pass nkyriverfrontcommons.com/). The website employees. Amazon, as well, recently announced responsible legislation regarding drones. He highlights existing trails, future trails and trails a $1.4 billion investment to build its primary hub notes there are a lot of states passing anti-drone under construction along with amenities in the with CVG, which will support more than 100 legislation branding them as unfriendly UAS- area, all of which will be interconnected. Prime Air cargo planes. Additionally, Southwest business states. The Commissioner advises to Eric Summe continued the presentation Airlines announced began offering 55 weekly not consider such legislation, but would advise with how this trail system will connect with flights from CVG in early June. He believes these the creation of an aviation caucus to advance the Northern Kentucky Convention Center expansions will be an economic boon for the Kentucky’s aviation enterprises. in attracting tourism and conventions to the greater Northern Kentucky area, similar to what In response to a question from area. He noted the Convention Center has happened in Louisville after the UPS expansion. Representative Carney, Commissioner Parker already booked a convention in 2024. The Additionally, the number one export from the discussed aviation education in the K-12 school interactive website acts as a useful tool to show state of Kentucky is aerospace aviation parts and system. He points out there are 37 high schools perspective convention planners what the components. in Kentucky teaching aviation as part of their Riverfront Commons will look like once the trail The Commissioner also highlightedcurricula. Kentucky has been recognized by construction is completed. Mr. Summe noted the aerospace initiatives being developed through the Aircraft Owners and Pilots Association as economic impact of a convention involving 300- state university education programs. For example, having the best high school aviation education 400 people for 3-4 days could bring in $500,000 THE KENTUCKY GENERAL ASSEMBLY 15 in visitor expenditures. The website will also be none, a roll call vote was taken, and the motion school bus drivers) to Education. updated as construction is completed. passed unanimously. The following items were Referral of administrative regulations to Adjournment approved, accepted, or referred. the following committees for secondary review There being no further business, the meeting The minutes of the October 5, 2016, meeting pursuant to KRS 13A.290(6): 907 KAR 1:065 was adjourned at 12:02 p.m. were approved. (Payments for price-based nursing facility STAFF AND COMMITTEE REPORTS services) to Appropriations and Revenue; Legislative Research Information requests for October, 16 KAR 6:020 (Assessment requirements Commission November, and December 2016, and January, for occupation-based career and technical February, March, April, and May 2017. education teachers to Education; 201 KAR Minutes of the 555th Meeting Committee Activity Reports for October, 20:056 (Advanced practice registered nurse June 7, 2017 November, and December 2016, and January, license and certification requirements), 201 Call to Order and Roll Call February, March and April 2017. KAR 20:057 (Scope and standards of practice The 555th meeting of the Legislative Report of the Administrative Regulation of advanced practice registered nurses), 900 Research Commission was held on Wednesday, Review Subcommittee meetings of October KAR 10:041 (Repeal of 900 KAR 10:040 and 900 June 7, 2017, at 3:30 PM, at the Northern 11, November 7, and December 13, 2016, and KAR 10:050), 902 KAR 2:060 (Immunization Kentucky Convention Center. Senator Robert January 17, February 10, March 6, April 11, and schedules for attending child day care centers, Stivers II, Chair, called the meeting to order, and May 11, 2017. certified family child care homes, other licensed the secretary called the roll. Committee review of the administrative facilities which care for children, preschool Present were: regulations by the Interim Joint Committee on programs, and public and private primary and Members: Senator Robert Stivers II, Co- Education during its meetings of October 10 and second schools) and 902 KAR 21:030 (Pediatric Chair; Representative Jeff Hoover, Co-Chair; November 14, 2016, and January 30, 2017. Cancer Research and Treatment Grant Program) Senators David P. Givens, Jimmy Higdon, Ray Committee review of the administrative to Health and Welfare and Family Services; S. Jones II, Dorsey Ridley, Dan “Malano” Seum, regulations by the Interim Joint Committee 501 KAR 6:040 (Kentucky State Penitentiary) and Damon Thayer; Representatives Rocky on Health and Welfare during its meetings of to Judiciary; 301 KAR 2:075 (Wildlife Adkins, Kevin D. Bratcher, Dennis Keene, David October 19, November 16, and December 14, rehabilitation permit); 301 KAR 2:083 (Holding Osborne, Jonathan Shell, and Wilson Stone. 2016, and January 18, 2017. and intrastate transportation of captive cervids) LRC Staff: David Byerman, Robert Jenkins From Senator Max Wise and Representative and 301 KAR 2:178 (Deer hunting on Wildlife and Christy Glass. Russ Meyer, Co-Chairs of the Government Management Areas, state parks, other public There being a quorum, Senator Robert Nonprofit Contracting Task Force:lands and federally controlled areas) to Natural Stivers called the meeting to order. Memorandum submitting a Preliminary Report Resources and Energy; 601 KAR 1:018 (Special At that time Senator Thayer welcomed new of the Government and Nonprofit Contracting overweight or over dimensional motor vehicle members to the Commission, and noted that this Task Force. load permits) to Transportation. is the first LRC meeting since Leader Hoover From Senator Jared Carpenter and From Senate President Robert Stivers became Speaker Hoover, and Republicans Representative Fitz Steele, Co-Chairs of the and House Speaker Gregory D. Stumbo: became a majority on the LRC for the first Federal Environmental Regulation Impact Memorandum updating the membership of the time in history. Senator Thayer welcomed the Assessment Task Force: Memorandum 2016 Free-Roaming Horse Task Force. five members of Republican leadership to the submitting Final Action of the Federal From Senate President Robert Stivers LRC, and he also welcomed new LRC members Environmental Regulation Impact Assessment and House Speaker Gregory D. Stumbo: Senator Dorsey Ridley, Representative Dennis Task Force. Memorandum appointing Kent Westberry Keene, and Representative Wilson Stone. From Senator Jared Carpenter and to replace Henry Stephens, Jr., as a full Senator Stivers asked that members Representative Fitz Steele, Co-Chairs of the Commissioner to the National Conference of look over the agenda, which was previously Free-Roaming Horse Task Force: Memorandum Commissioners on Uniform State Laws. distributed prior to the meeting, which are all the submitting the Final Report of the Free-Roaming From Senate President Robert Stivers and actions that were taken after the October 5, 2016, Horse Task Force. House Speaker Jeff Hoover: Memorandum meeting. The actions include President Stivers’ From Teresa Arnold, Deputy Director for authorizing and approving the organization of approval, as well as then Speaker Stumbo and Research and Communications: Report of the the Tennessee Valley Authority Caucus now Speaker Hoover. President Stivers explained 2016 Workers’ Compensation Task Force. From Senate President Robert Stivers and to the new members that they generally ask for From Teresa Arnold, Deputy Director for House Speaker Jeff Hoover: Memorandum a singular motion for ratification of the actions Research and Communications: Report of the appointing David Rust to the Local that he and the Speaker had approved. Government Nonprofit Contracting Task Force. Superintendents Advisory Council. President Stivers called for a motion to Committee Review of FY 2017 Small From Senate President Robert Stivers and approve the minutes of the October 5, 2016, Cities Community Development Block Grant House Speaker Jeff Hoover: Memorandum meeting; accept and refer as indicated items and Section 108 Loan Guarantee Program appointing Tony Goetz to the Kentucky A. through K. under Staff and Committee Application by the Senate Standing Committee Legislative Ethics Commission. Reports; refer prefiled bills and administrative on State and Local Government and the House From Senator Joe Bowen and Representative regulations as indicated and approve items A. Standing Committee on Local Government Brian Linder, Co-Chairs of the Public Pension through R. under New Business; and accept and during its meeting on February 15, 2017. Oversight Board: Memorandum requesting refer as indicated items 1. through 96. under NEW BUSINESS approval and authorization to Expend Funds to Communications. Referral of prefiled bills to the following Conduct an Actuarial Review/Audit Pursuant to A motion was made by Senator Givens committees: BR 38 (an act relating to Kentucky KRS 7A.250. and seconded by Representative Hoover. school bus drivers) and BR 39 (an act relating to From Senator Whitney Westerfield and Senator Stivers asked for discussion. Seeing

16 2017 Interim LEGISLATIVE RECORD Representative Joseph M. Fischer, Co-Chairs requesting approval to meet on August 24, in which lists all employers holding more than one of the Interim Joint Committee on Judiciary: conjunction with the Kentucky State Fair, rather state position Memorandum requesting approval to meet than the regular meeting date of August 29. From the Personnel Cabinet: Personnel on June 7, in conjunction with the Northern There are no apparent conflicts. Cabinet Quarterly Report as of September 30, Kentucky Chamber of Commerce event, rather From Senator Chris McDaniel and and December 31, 2016, and March 31, 2017 than the regularly scheduled meeting date of Representative Steven Rudy, Co-Chairs of the From the Kentucky Public Transportation June 2. There are six (6) potential conflicts. Interim Joint Committee on Appropriations and Infrastructure Authority: FY 2016 Operating From Senate President Robert Stivers and Revenue: Memorandum requesting approval and and Financial Statement House Speaker Jeff Hoover: Memorandum appointing membership to the Subcommittee on From the Cabinet for Economic authorizing and approving the 2017 Interim Joint 2018-2020 Budget Preparation and Submission. Development: FY 2016 Linked Deposit Loan Committee and Budget Review Subcommittee From Senate President Robert Stivers and Investment Program Annual Report. Alignments. House Speaker Jeff Hoover: Memorandum From the Kentucky Personnel Cabinet: From Senate President Robert Stivers and authorizing adoption of the jurisdiction of Executive Summary of the Kentucky Employees House Speaker Jeff Hoover: Memorandum Interim Joint Committees. Health Plan Annual Report. authorizing and approving the 2017 Interim COMMUNICATIONS From the Cabinet for Economic Joint Committee Regular Meeting Schedule. From Senator Danny Carroll and Development: Construction activity reports for From Senator Whitney Westerfield and Representative Lynn Bechler, Co-Chairs of the each loan approved as of the quarters ending Representative Joseph M. Fischer, Co-Chairs Program Review and Investigations Committee: September 30, December 31, 2016, and March of the Interim Joint Committee on Judiciary: Memorandum regarding opportunity for 31, 2017. Memorandum requesting approval to meet appointment of ex officio members for particular From the Cabinet for Health and Family on September 15, rather than the regularly studies. Services, Department for Community Based scheduled meeting date of September 1. There From the Office of the Attorney General: Services: Response to Citizen Review Panel 2016 are no apparent conflicts. Constitutional Challenge Report for the months Annual Report. From Senator Alice Forgy Kerr, of August, September, October, November and From the Finance and Administration Representative Diane St. Onge, and December 2016, and January, February, March Cabinet, Department of Revenue: FY 2016 Representative Tommy Turner, Co-Chairs and April 2017. Disaster Relief Sales and Use Tax Refund Totals. of the Interim Joint Committee on Tourism, From the Finance and Administration From the Finance and Administration Small Business, and Information Technology: Cabinet: Monthly Investment Income Report for Cabinet, Commonwealth Office of Technology: Memorandum requesting approval to meet the months of September, October, November Personal Information Security and Breach on June 7, in conjunction with the Northern and December 2016, and January, February, Notification Annual Report. Kentucky Chamber of Commerce event, rather March, and April 2017. From the Kentucky Higher Education than the regularly scheduled meeting date of From the Finance and Administration Assistance Authority: FY 2016 Annual Actuarial June 15. There are three (3) potential conflicts. Cabinet, Office of the Controller: Surtax Valuation of the Prepaid Tuition Trust Fund for The memorandum also is requesting approval to Receipts Statements for the Law Enforcement Kentucky’s Affordable Prepaid Tuition (KAPT). meet on July 5, rather than the regular meeting and Professional Firefighters Foundation Fund From the Cabinet for Health and Family date of July 28. There are three (3) potential Programs, which reflect activity for Accounting Services: FY 2016 Commission on Services and conflicts. Periods 3, 4, 5, 6, 7, 8, 9, and 10, and year-to-date Supports for Individuals with Intellectual and From Senator Alice Forgy Kerr and activity for the period of July 1, 2016, through Other Developmental Disabilities. Representative Jim DeCesare, Co-Chairs of April 30, 2017. From the Tourism, Arts and Heritage the Interim Joint Committee on Economic From the Kentucky Employers’ Mutual Cabinet, Kentucky Department of Fish and Development and Workforce Investment: Insurance Authority: 2017 Administrative Wildlife Resources: FY 2016 Annual Report on Memorandum requesting approval to meet Budget. Law Enforcement Division Training. on July 5, rather than the regularly scheduled From the Cabinet for Health and Family From the Cabinet for Economic meeting date of July 28. There are two (2) Services: 2016 Charitable Health Providers Development: FY 2016 Annual Reports. potential conflicts. Registered with the Cabinet for Health and From the University of Kentucky: FY 2016 From Senator John Schickel and Family Services. Kentucky Interagency Groundwater Monitoring Representative Adam Koenig, Co-Chairs of From the School Facilities Construction Network Annual Report. the Interim Joint Committee on Licensing, Commission: FY 2016 Report of the Emergency From the Cabinet for Health and Family Occupations, and Administrative Regulations: and Targeted Investment Fund’s activities. Services: 2016 Public Health Child Fatality Memorandum requesting approval to meet From the Department of Public Advocacy: Report. on June 7, in conjunction with the Northern FY 2016 Annual Litigation Report. From the Kentucky Employers’ Mutual Kentucky Chamber of Commerce event, rather From the Department for Local Government: Insurance Authority: Statement of Assets, than the regular meeting date of June 9. There 2017 Special Purpose Governmental Entities Liabilities, and Policyholder Equity; Statement are nine (9) potential conflicts Compliance Report. of Income; and Statement of Solvency as of From Senator Chris McDaniel and From the Teachers’ Retirement System of September 30, 2016, and March 31, 2017. Representative Steven Rudy, Co-Chairs of the Kentucky: FY 2016 Annual Report. From the Kentucky Employers’ Mutual Interim Joint Committee on Appropriations and From the Teachers’ Retirement System of Insurance Authority: Quarterly Statement Revenue: Memorandum requesting approval to Kentucky: FY 2016 In-State Investments Report. and Financial Status for the periods ending meet on June 7, in conjunction with the Northern From the Personnel Cabinet: Personnel September 30, 2016, and March 31, 2017. Kentucky Chamber of Commerce event, rather Cabinet Quarterly Report as of September 30, From the Cabinet for Health and Family than the regular meeting date of June 22; and and December 31, 2016, and March 31, 2017, Services: 2016 Annual Report of Kentucky Child THE KENTUCKY GENERAL ASSEMBLY 17 Victims of Human Trafficking. Heritage Land Conservation Fund. From the Cabinet for Health and Family From the Teachers’ Retirement System of From the Auditor of Public Accounts: Services: FY 2016 Kentucky Elder Abuse Annual Kentucky: FY 2016 Report of the Actuary on the FFY 2015 Independent Accountant’s Report Report. Annual Valuation of the Retiree Medical and Life on Applying Agreed-Upon Procedures to the From the Cabinet for Health and Family Insurance Plans, and Report of the Actuary on Kentucky Department of Education, Batten & Services: Social Service Worker Caseload the Annual Valuation. Batten, Inc. Averages Reporting. From the Kentucky Commission on Human From the Auditor of Public Accounts: From the Personnel Cabinet: Semi-Annual Rights: 2016 Annual Report. FFY 2015 Independent Accountant’s Report Reports, which lists all filled positions, as of From the Kentucky Council on on Applying Agreed-Upon Procedures to the September 30, 2016, and March 1, 2017. Postsecondary Education: 2016 Optometry Kentucky Department of Education, Crescent From the Kentucky Law Enforcement Report Hill Child Care, Inc. Council: 2016 Annual Report on Mandatory From the Kentucky Legislative Ethics From the Auditor of Public Accounts: Training (Reports attached.) Commission: FY 2016 Annual Report. FFY 2015 Independent Accountant’s Report From the Energy and Environment Cabinet: From the Department of Revenue, Division on Applying Agreed-Upon Procedures to the CY 2016 Waste Tire Program Report. of Corporation Tax: FY 2016 Energy Efficiency Kentucky Department of Education, Southside From Murray State University: 2016 Annual Products Credits Claimed Report. Christian Day Care. Financial Report. From the Department of Revenue, Division From the Auditor of Public Accounts: From the Finance and Administration of Corporation Tax: FY 2016 Energy Star Home Agreed-Upon Procedures Engagement of the Cabinet: Contract Workers reports for the and Energy Star Manufactured Home Credits Kentucky Office for the Blind’s Administration periods of July 1, 2014 through June 30, 2015, Claimed Report of the McDowell Center’s Adult Education Grant and July 1, 2015, through March 31, 2016. From the Energy and Environment Cabinet: for the Period July 1, 2014, through June 30, From the Court Appointed Special Technologically Enhanced Naturally Occurring 2015. Advocates for Children: 2017 Biennial Report. Radioactive Materials (TENORM) Associated From the Auditor of Public Accounts: FY From the Justice and Public Safety Cabinet: with Oil and Gas Activities. 2016 Report of the Audit of the Kentucky River FY 2016 SMART Program Annual Report. From the Commission on Small Business Authority. From the Auditor of Public Accounts: FY Advocacy: 2016 Kentucky Business One Stop From the Auditor of Public Accounts: FY 2016 Report of the Statewide Single Audit of the Portal Annual Report 2016 Report of the Audit of the Kentucky Artisan Commonwealth of Kentucky, Volumes I and II. From the Cabinet for Health and Family Center at Berea. From the Administrative Office of the Services: SWIFT Adoption Teams Report for the From the Auditor of Public Accounts: Courts: 2016 Citizen Foster Care Review Board third and fourth quarters of 2016, and the first Examination of Certain Policies, Procedures, Annual Report. quarter of 2017. Controls, and Financial Activity for the City of From the Finance and Administration From the Kentucky Retirement Systems: Irvine. Cabinet: 2016 Kentucky Comprehensive Annual FY 2015 and FY 2016 Financial Statements and From the Auditor of Public Accounts: Financial Report. Supplementary Information. Report of the Audit of the Kentucky Lottery From the Kentucky Employers’ Mutual From the Justice and Public Safety Cabinet: Corporation for the years ended June 30, 2015, Insurance Authority: Annual Statement and 2016 Child Fatality and Near Fatality External and June 30, 2016. Financial Status for the year ended December Review Panel Annual Report. From the Auditor of Public Accounts: 31, 2016. From the Office of the Attorney General: FY 2016 Report of the Audit of the Cabinet From the Louisville Firefighters Pension 2015-2016 County Attorney Traffic Safety for Health and Family Services Breast Cancer Fund: 2017 Actuarial Report. Program Annual Report. Research and Education Trust Fund. From the Cabinet for Health and Family From the Cabinet for Health and Family From the Auditor of Public Accounts: FYS Services: 2017 Kentucky Diabetes Report. Services, Department for Community Based 2015-2016 Report of the Audit of the Kentucky From the Louisville Policemen’s Retirement Services: 2016 Statewide Strategic Planning Public Employee Health Insurance Program. Fund: 2016 Actuarial Valuation and Report. Committee for Children in Placement Annual From the Auditor of Public Accounts: From the Auditor of Public Accounts: FY Report. FY 2016 Report of the Audit of the Kentucky 2016 Report on Compliance with Civil Rights From the Cabinet for Health and Family Department of Agriculture Spay and Neuter Laws Including Agency Title VI Implementation Services, Department for Community Based Program. Plans, Updates, and Compliance Reports. Services: 2016 Annual Report on Committed From the Auditor of Public Accounts: FY From the Cabinet for Health and Family Children. 2016 Report of the Audit of the Kentucky Judicial Services: 2016 Kentucky Traumatic Brain Injury From the Kentucky Personnel Board: FY Form Retirement System. Trust Fund Board of Directors Annual Report. 2016 Annual Report. From the University of Kentucky: Letter From the Kentucky Employers’ Mutual From the Kentucky Personnel Cabinet: 2016 providing the link to the 2016 Audited Financial Insurance Authority: 2016 Management’s Annual Report of the Kentucky Group Health Statements of the University of Kentucky and Discussion and Analysis with Supplementary Insurance Board. its affiliated corporations, http://www.uky.edu/ Schedules. From the Department of Education: FY EVPFA/Controller/finst.htm. From Kentucky Employers Mutual 2015-2016 Efficient School Design Annual From the Department of Criminal Justice Insurance: Statutory Basis Financial Statements Report. Training: 2016 Annual Carrying Concealed and Supplementary Information Report of From Northern Kentucky University: FY Deadly Weapons Report. Independent Auditors for the years ended 2015 Annual Financial Report. From the Cabinet for Health and Family December 31, 2016, and 2015. From the Auditor of Public Accounts: Services: FY 2016 Domestic Violence Batterer From the Kentucky Judicial Retirement FY 2016 Report of the Audit of the Kentucky Intervention Provider Program Report. System: Kentucky Judicial Retirement Plan

18 2017 Interim LEGISLATIVE RECORD GASB Disclosure Report as of July 1, 2016. Keene, and said he was not sure what he meant S. Jones II, Christian McDaniel, John Schickel, From the Kentucky Judicial Retirement by doing two letters of recommendation for staff Brandon Smith, Johnny Ray Turner, Robin L. System: Kentucky Judicial Retirement Plan – members. Webb, and Whitney Westerfield; Representatives Hybrid Tier GASB Disclosure Report as of July Representative Keene explained that the John Blanton, Larry Brown, McKenzie Cantrell, 1, 2016. staff members were trying to obtain other jobs Matt Castlen, Tim Couch, Jeffery Donohue, Jim From the Kentucky Legislators’ Retirement and to leave LRC. DuPlessis, Daniel Elliott, Kelly Flood, Chris Plan: Kentucky Legislators Retirement Plan President Stivers said he was not clear Fugate, Dennis Keene, Brian Linder, Reginald GASB Disclosure Report as of July 1, 2016. if they were recommendations to be hired at Meeks, Marie Rader, Jim Stewart III, and Jill From the Kentucky Legislators’ Retirement LRC or recommendations to take jobs in other York. Plan: Kentucky Legislators Retirement Plan – places. He said he appreciated the comment, Guests: Secretary Charles G. Snavely, Hybrid Plan GASB Disclosure Report as of July and thanked Representative Keene for bringing Energy and Environment Cabinet, Sean Alteri, 1, 2016. it to their attention. President Stivers said as to Director, Division of Air Quality, Energy and From the Auditor of Public Accounts: FY hiring—to make sure there is total impartiality, Environment Cabinet, and Rodney Andrews, 2016 Report of the Audit of the Kentucky Judicial and that there is not preference perceived either Ph.D., University of Kentucky, Center for Form Retirement System. to party or to chamber for the new members, Applied Energy Research. From the Cabinet for Health and Family that members prohibit themselves from being LRC Staff: D. Todd Littlefield, Stefan Services: FYS 2015-2016 Kentucky Health Care involved in those types of hiring decisions, and Kasacavage, Janine Coy-Geeslin, and Susan Improvement Authority Combined Annual that is why they have a Director through the Spoonamore, Committee Assistant. Report. respective people, because the last thing they Air Quality and Reformulated Gas From the Cabinet for Health and Family want to do is have someone to request something Secretary Charles G. Snavely, Energy and Services: 2016 Kentucky Spinal Cord and Head that is perceived as bias towards a chamber or Environment Cabinet introduced Sean Alteri, Injury Research Board Annual Report. towards a party. President Stivers stated that is Director, Division of Air Quality, Energy and From the Cabinet for Health and Family why he wanted to clarify what Representative Environment Cabinet to discuss air quality Services: 2016 Pediatric Cancer Research Trust Keene’s statement was. and reformulated gas. Mr. Alteri stated that the Fund Annual Report. President Stivers said he appreciates the fact mission of the Division for Air Quality is to protect From the Cabinet for Health and Family that they are in a new dynamic, and that they will human health and the environment by achieving Services: FY 16 Public Health Breast Cancer continue to operate as they have in the past. The and maintaining acceptable air quality through a Research and Education Trust Fund Report. next LRC meeting will be chaired by the Speaker. comprehensive air monitoring network; creating From the Kentucky Department of Agriculture: President Stivers stated that they really need to effective partnerships with air pollution sources 2017 Kentucky Equine Health and Welfare look at what they are doing in putting together and the public; timely dissemination of accurate Council Report. the LRC budget, considering the times they are and useful information and data; judicious use From the Finance and Administration in and the needs that they have to fulfil pension of program resources; and maintenance of a Cabinet, Department of Revenue, Office of obligations. He asked that over the next days, reasonable and effective compliance program. Property Valuation: 2017 Summary of Property weeks, and months, members look into how they Mr. Alteri said that Kentucky is currently Assessments Exempt from Taxation. can more efficiently run the legislative branch achieving all the ambient air quality standards From the Auditor of Public Accounts: of government. President Stivers stated that the with a few exceptions. Report of the Audit of the Louisville Arena Legislative Branch is a co-equal branch, and even Mr. Alteri said that the EPA has proposed to Authority, Inc. for the years ended December 31, though it is small in proportion, he thinks from a redesignate the Cincinnati/Northern Kentucky 2016, and 2015. perception standpoint that the members should Metropolitan Statistical Area as attained in the From the Auditor of Public Accounts: do what they can to show that they are serious 2008 ozone standard. He said that the Kentucky Report of the Audit of the Kentucky Department about resolving issues with the KERS, KTRS, and Division for Air Quality (KDAQ) is focusing on of Fish and Wildlife Resources for FY 2016, the CERS Pension Plans. the 2008 ozone standard and the control strategy along with Governance and Management There being no further business, the meeting currently being used to achieve that standard. Representation letter. was adjourned. According to the data collected from ambient Senator Stivers asked for discussion on any monitors, Kentucky’s air quality is improving. new business or anything that members want to Interim Joint Committee Mr. Alteri said the presentation would focus be brought before the LRC that is not currently on Natural Resources and on the control strategy of nitrogen oxide within the prior communications. Energy (NOx) and volatile organic compounds (VOC). The chair recognized Representative Keene. Reformulated gasoline (RFG) was implemented Minutes of the 1st Meeting Representative Keene said he appreciated the in the 1990’s to reduce NOx and VOC. Initially of the 2017 Interim President giving him the opportunity, and that there was a significant difference between June 1, 2017 he wanted to make a note of something that he conventional gasoline and reformulated gasoline. Call to Order and Roll Call had experienced. He said that he does recollect As a result of the RFG program, there was an The 1st meeting of the Interim Joint in his fourteen years of service that he has done initial emissions reduction of approximately 17 Committee on Natural Resources and Energy many recommendation letters for staff of LRC, percent. In the Cincinnati/Northern Kentucky was held on Thursday, June 1, 2017, at 1:00 PM, in but in the past several weeks he has written two Statistical area, the KDAQ encourages EPA to Room 154 of the Capitol Annex. Representative letters of recommendation at the request of staff. limit the scope of the non-attainment area to Jim Gooch Jr., Chair, called the meeting to order, He said that it seems LRC has a staff morale Boone, Kenton and Campbell counties which and the secretary called the roll. issue, and he wanted Commission members to have the largest emission rates. Present were: be aware of it. Mr. Alteri said that as of April 7, 2017, the Members: Representative Jim Gooch Jr., Co- President Stivers thanked Representative Chair; Senators C.B. Embry Jr., Ernie Harris, Ray THE KENTUCKY GENERAL ASSEMBLY 19 EPA removed Ohio’s requirements for the sale cost would be around $1,400. Secretary Snavely advanced combustion technologies. He pointed of reformulated gasoline. He said there are no explained that the presentation is dealing out that the vast majority of the United States counties in Ohio subject to the 7.8 volatility specifically with Northern Kentucky air quality. coal-fired electricity generating units are pre- requirement and dealers can sell conventional Each pollutant such as NOx and VOC has certain 1980. Some units are subcritical rather than gasoline year-round. Because of the retail criteria standards under the ambient air quality going to the higher temperature and pressure cost differential, Secretary Snavely petitioned standards. units that are more efficient. The heat rate for Administrator Pruitt of the EPA to opt-out of the In response to Representative Donohue, Mr. Kentucky’s fleets are clustered around the 10,000 RFG program in Northern Kentucky. In addition, Alteri stated that the petition to opt-out of RFG mark, which is typical for the U.S. fleet. If the the Energy and Environment Cabinet is in the requirements does not affect Louisville at this heat rates can be improved, then it would reduce process of revising the State Implementation time. the amount of carbon dioxide being produced. Plan (SIP) which will demonstrate that removing Mr. Alteri said that the Cabinet will provide Dr. Andrews stated that some technical RFG requirements will not interfere with any a State Implementation Plan (SIP) revision improvements such as, air ratio, stack gas Clean Air Act (CAA) requirement concerning to the Environmental Protection Agency temperature and steam conditions, could be attainment and reasonable further progress, or demonstrating that removing RFG requirements made to a power plant without ripping it apart maintenance, of any current National Ambient will not interfere with any CAA requirement and putting in a new boiler. The technical Air Quality Standards (NAAQS). concerning attainment and reasonable further improvements would help to increase the In response to Representative Flood, Mr. progress, or maintenance, of any current efficiency and therefore the amount of electricity Alteri stated that there have been significant NAAQs. The SIP revision will be made available produced per ton coal burned in an existing improvements in conventional gasoline. There is for public comment for 30 days and after all the plant. Increased temperatures and higher only a marginal difference in the emissions from comments have been evaluated, the SIP will then pressures in the plant improves the efficiency. reformulated gas and conventional gas. During be submitted to EPA for approval. The older subcritical units need to install newer the last few years, other states have made the In response to Senator Schickel, Mr. Alteri equipment. He said that by making the suggested same request because conventional gas is now so said he did not have information regarding improvements a plant could go from an efficiency much cleaner. The EEC feels comfortable with damage to small engines from using reformulated of about 36 percent all the way up to 40 percent. asking for the opt-out. gas. Dr. Andrews said that CAER was working In response to Representative Gooch, Mr. In response to Representative Linder, Mr. toward improving supercritical plants. By Alteri stated that there are several formulations Alteri said that the transport of emissions is a changing the operating parameters, increasing of boutique fuels. He said that in the past, some regional problem. the temperature and pressure cycle, it is possible areas have experienced shortages because a In response to Representative DuPlessis, to achieve 60 percent more efficiency. He stated refinery may not have been able to keep up with Mr. Alteri stated that the former governor that newer and better materials were needed to the demand. The Clean Air Act allows a ninety in 1993 mandated that the region opt-in for build plants so the plants could take the higher day transition period so the markets will not be reformulated gas. He said that using reformulated pressures and temperatures. Dr. Andrews said if disturbed – it cannot be an immediate change. gasoline served as an air pollution control the newer technical improvements were made to Representative Meeks stated that Jefferson measure and initially the RFG program reduced the plants, then the subcritical plants could be County has unique concerns with price NOx and VOC by 17 percent. In response to moved up to supercritical and see improvements fluctuation, which does not seem to occur Representative DuPlessis, Mr. Alteri stated that of reductions in fuel and emissions of up to elsewhere in the Commonwealth. He said that air quality does have an impact on health, but 20 percent. Modernizing and using the new citizens are concerned because of decisions he was not qualified to comment on what health technologies would have a profound impact by the local Air Quality Board to allow greater issues could be related. on the emissions and fuel use of the plants and flexibility to chemical plants. In response, In response to Representative DuPlessis, costs going forward. He noted that three of Mr. Alteri said the EEC has been tracking the Secretary Snavely stated that opting out of the the advanced combustion technologies are the fluctuation of gas prices in Louisville. He said RFG would not change the ambient air quality supercritical carbon dioxide cycle, pressurized it was hard to determine what market force was standards which are the numerical limits that oxyfuel or oxycombustion and the chemical driving the price fluctuation. He also noted that have to be met. looping combustion. the air quality in Louisville was continuing to In response to Representative Flood, In response to Representative Castlen, Dr. improve. Secretary Snavely states that the Cabinet is the Andrews said that pressure facilitates separation. Representative Meeks stated that even delegated authority that implements the Clean There is a lot of work being done in membrane- though the air quality seems to be improving, Air Act, which is a federal act. The numerical based technologies that will reduce the amount there are still issues related to the health of limits that are implemented are from the state of energy it takes to do the separation. children. There seems be a rise in cancer and plan. Dr. Andrews stated the Department of asthma. In response, Mr. Alteri said that their air Power Plant Efficiencies and Current Energy is looking at a CO2 cycle that would allow quality information comes from monitors which Developments the plant to use a different energy cycle than show continued improvement. Rodney Andrews, Ph.D. PE, Director, is done for straight combustion with oxygen. Representative Meeks asked from a policy University of Kentucky Center for Applied When this happens, it would allow efficient standpoint, how does Jefferson County interpret Energy Research discussed “Why power plant plants of a smaller size which will reduce capital those findings to the constituents who see very efficiency matters…” Mr. Andrews stated that costs. It would also allow plants to use lower real health related problems everyday with their power plants should be improved to lower temperatures and allow for the recovery of more children. In response, Mr. Alteri said that it boils emissions per kWh, less fuel per kWh, and heat. In looking at power plants for the future, down to the most cost-effective control strategy. lower cost per kWh. He said that there are two this cycle would allow for the reduction of water He said it would cost approximately $48,000 to methods to improve power plant efficiency: needed. remove a ton of NOx, but at a power plant the high-efficiency, low-emissions technologies and Dr. Andrews stated that in terms of higher-

20 2017 Interim LEGISLATIVE RECORD efficiency, the regulatory framework should research, development and demonstration negative balance. be based on increasing efficiency in older funding going to fossil energy particularly This is a transition year for SHIFT. Each plants. The technical roadmap, produced by toward advanced combustion gas technology. priority in the model includes different measures. the International Energy Agency (IEA), shows There being no further business, the meeting For example, one priority is economic growth, recommendations for high-efficiency, low- was adjourned. which includes measures of potential economic emissions coal-fired power generation (HELE). growth, which will vary depending on the local The IEA recommends increasing the average Program Review and area, and daily traffic and freight volume. efficiency by 4 percent by replacing older Investigations Committee The funding formula has two tiers: statewide units with more modern supercritical or ultra Minutes and regional. The priorities and weights for supercritical units, improving performance 2017 Interim the statewide formula are to improve safety of operating units and building new HELE May 11, 2017 (25 percent), reduce congestion (20 percent), state of the art power plants. The roadmap also Call to Order and Roll Call fuel economic growth (20 percent), spend tax recommends providing support for research, The Program Review and Investigations dollars wisely (20 percent), and preserve existing development, demonstration and deployment Committee met on Thursday, May 11, 2017, at infrastructure (15 percent). The priorities and of advanced combustion and gasification 10:00 AM, in Room 131 of the Capitol Annex. weights for the regional formula are improving technology including CO2 capture if necessary, Senator Danny Carroll, Chair, called the meeting safety (20 percent), reducing congestion (10 improving efficiency of all operating plants, to order, and the secretary called the roll. percent), fueling economic growth (15 percent), especially on lower rank coals and reducing the Present were: spending tax dollars wisely (15 percent), amount of water consumption. Dr. Andrews Members: Senator Danny Carroll, Co- preserving existing infrastructure (10 percent), stated that efficiency improvements for reducing Chair; Representative Lynn Bechler, Co-Chair; district priorities (15 percent), and local priorities CO2 from new coal plants can be achieved Senators Perry B. Clark, Wil Schroder, Reginald (15 percent). through more sophisticated power plant designs. Thomas, and Stephen West; Representatives Funding is allocated among four regions He said that the logical first step in reducing CO2 Chris Fugate, Brian Linder, Arnold Simpson, (east, west, north, and south), each of which would be higher efficiency plants. This is a lower and Walker Thomas. is divided into three districts. Any funding cost approach than carbon capture and storage. Guests: Greg Thomas, Secretary, Robin remaining after statewide priority projects are As an example, he said that today’s new units Brewer, Executive Director of the Office of Budget funded would be divided equally among the have 18 percent lower CO2 emissions than the and Fiscal Management, Transportation Cabinet; four regions. Within each region, 25 percent average existing unit. Jonathan Grate, Deputy Secretary, Brad Holajter, of its funding would be for projects awarded In response to Representative Flood, Dr. Budget Director, Matthew Niehaus, Legislative competitively for each district. The remaining Andrews said that the University of Kentucky Liaison, Justice and Public Safety Cabinet; 25 percent would be awarded competitively for does not produce its own electricity. It buys its Frank Jemley, III, Chief of Staff, Tourism, Arts, projects in the region. electricity. Representative Flood stated that from and Heritage Cabinet; Charles Bush, Deputy The cabinet will develop an initial list of 10 years ago, UK now uses 80 percent gas and 20 Commissioner, Department of Fish and Wildlife projects based on the current plan. District and percent coal. She said she is interested in other Resources; and Sergeant Rodney Milburn, Fish local leaders will be able to suggest changes. things that the CAER is using as a model. and Wildlife Resources officer and president of The cabinet will use the formula to score the Chairman Gooch stated that it was officers association. projects on the revised list. District and local important to be concerned about reliable power LRC Staff: Greg Hager, Committee Staff leaders may suggest moving up regional projects because some power sources being pushed are Administrator; Chris Hall, Colleen Kennedy, in the priority rankings. Based on these results not. Other countries are pursuing technology Van Knowles, Jean Ann Myatt, William Spears, and revenue estimates, the cabinet will develop for the ultrasupercritical units that have greater Shane Stevens, Joel Thomas, and Kate Talley, a draft plan for the governor. The governor will efficiency. Committee Assistant. finalize the plan and submit it to the General In response to Chairman Gooch, Dr. Minutes for December 13, 2016; February Assembly. Andrews said it could be possible once the 17, 2017; and March 15, 2017 In response to a question from Senator ultrasupercritical units reach 40 percent or more Senator Carroll opened the meeting by Schroder, Secretary Thomas said the Lexington, that the emissions could be closer to what natural leading committee and audience members in a Louisville, and northern Kentucky areas are in gas produces. prayer and pledge of allegiance. the same region because regions were developed In response to Representative DuPlessis, Upon motion by Representative Simpson along highway corridors. No matter how a region Dr. Andrews stated that, on stack gas, there are and second by Senator Clark, the minutes for fares under the statewide formula, each region programs that are seeking to improve air to air December 13, 2016; February 17, 2017; and will receive a fourth of the funding available via heat exchange. March 15, 2017 were approved by voice vote. the regional formula. In response to Representative York, Dr. Secretary Thomas spoke about the In response to a question from Andrews said that CAER is not doing work Strategic Highway Investment Formula for Representative Simpson, Secretary Thomas said indirectly on the materials necessary to withstand Tomorrow (SHIFT). Kentucky’s highway plan the regional formula is not based on population. increasing pressures. He said that CAER works is overpromised for many years. Only one-half In response to a question from Senator closely with the National Energy Technology of the 1,400 projects are even partially funded, Clark, Secretary Thomas said Kentucky’s gas tax Lab who is doing a lot of work in that area. He mostly with federal funding. There is money to is 24.6 cents per gallon. The cabinet needs more agreed that if alloys existed then there would pay for 10 percent of the $7.1 billion of projects revenue to keep up with demand. be discussion about retrofitting some existing promised with state funds in the plan. In 2016, In response to a question from Senator plants. the Transportation Cabinet initiated its Pause-50 Carroll, Secretary Thomas said there is a backlog In response to Chairman Gooch, Dr. plan when the road fund was threatened with a of 3,700 miles for resurfacing, growing at a rate Andrews stated that CAER advocates for of 500 miles per year. The cabinet has an internal THE KENTUCKY GENERAL ASSEMBLY 21 working group on ways to increase revenue. For which includes $5 million to carry forward. He Police Officer Professional Standards (POPS) every penny the gas tax is increased, revenue described DOCJT’s deferred maintenance needs, certified but cannot be included in KLEFPF. increases by $30 million. This revenue is which total $6.1 million. The department does not receive general fund divided approximately in half between the rural In response to questions from Senator dollars; it is fee-based, like a sheriff’s office. The secondary program and the road fund. Carroll, Mr. Holajter said the Department of department is a state agency that follows state In response to questions from Representative Fish and Wildlife Resources (FWR) is requesting personnel guidelines. Bechler, Secretary Thomas said rural secondary that 133 FWR officers be included in KLEFPF. In response to questions from Senator funding for needs other than roads will be within This would cost $658,000 annually. Given Carroll, Mr. Bush said there is currently a $25 each region. SHIFT is a work in progress. If the the growing needs of the training program million fish and game fund balance, which is cabinet succeeds, it will take care of the entire statewide, additional funds would be needed to average. A balance must be maintained to cover state and all regions. The cabinet will prioritize cover adding the new officers and allow a balance costs because of funding variation during peak among projects. When the cabinet presents the forward for solvency. Mr. Grate said the cost of seasons. In the 2013-2014 biennial budget, the plan and list of projects to the General Assembly, training the FWR officers receive from DOCJT is department mirrored the KLEFPF stipend. The legislators will still control the funding of covered by KLEFPF, as is any other officer across starting pay for new officers is approximately projects. In the past, there was significant over- the state. Mr. Holajter said the cost to DOCJT of $29,000. Officers are allowed overtime pay programming in relation to funding. For the bringing FWR officers into KLEFPF, but paying beyond the 37.5 hour work week. next budget, the cabinet will be transparent the stipend out of the Fish and Wildlife Resource In response to a question from Senator about which programs are most cost effective. Department’s budget, would be minimal. Carroll, Mr. Jemley said the Tourism, Arts The appeal to the General Assembly will be that In response to a question from Senator and Heritage Cabinet, in consultation with the if something is added to the budget, something West, Mr. Holajter said money for capital Personnel Cabinet, is considering a 40-hour should be removed. improvements was earmarked in the last budget. work week for officers. In response to questions from Senator West, In response to a question from Senator In response to a question from Senator Secretary Thomas said the area development Clark, Mr. Holajter said the interest for this Carroll, Mr. Bush said FWR cannot transfer districts and metropolitan planning organizations budget was estimated at $50,000. money to KLEFPF because federal funds are will receive regional and district input. The chief In response to a question from Senator involved. The department is willing to continue district engineers will also ask legislators for Carroll, Mr. Grate said statute precludes paying the stipend as it does now. input. After fulfilling statewide priorities, the FWR officers from being hired by other law Mr. Jemley said the Tourism, Arts and rest of the funding will be distributed equally enforcement agencies after retirement because Heritage Cabinet supports moving FWR officers among the four regions. The cabinet will score they are not part of KLEFPF. The Justice and into KLEFPF as long as the stipend continues to the projects within each region. Public Safety Cabinet would be amenable to be paid by FWR. In response to a question from Senator removing the impediment. In response to questions from Senator Carroll, Secretary Thomas said there is a delay In response to a question from Carroll, Mr. Bush said FWR officers’ last pay with the request for proposals for Beaver Dam Representative Bechler, Mr. Grate said the State raise was in the early 2000s. He will provide Rest Stop. Information on the project will be sent Police Department has renewed a mechanism more specific information. FWR has been unable to Senator Carroll. that allows FWR officers to act as peace officers to raise salaries due to the structure of the state Senator Carroll recognized the Fish and with general jurisdiction. personnel system. Wildlife Resource Officers in attendance. There Senator Carroll commented that Kentucky In response to questions from Senator West, was a Kentucky Law Enforcement Foundation ranked 47th in a recent ranking of the best states Mr. Bush said the fees-in-lieu-of funding balance Program Fund (KLEFPF) bill in this year’s in which to be a law officer. It is important that is currently $90 million. There is $25 million session to codify language in the budget bill Kentucky make law enforcement an attractive in reserves. He said that the authority to raise bringing additional law enforcement into the job for young people. salaries would be with the Tourism, Arts and fund. Fish and Wildlife Resource Officers met Representative Fugate noted that FWR Heritage Cabinet and the Personnel Cabinet. Mr. the requirements to be part of KLEFPF, but officers have assisted the state police greatly in Jemley asked for clarification from Personnel there were concerns on how the department was solving cases. He supports making FWR officers Cabinet staff who were in the audience. They funded. These concerns could not be resolved via part of the KLEFPF. said that the two cabinets and state budget office conference committee. Mr. Grate commended FWR officers that would be involved. Mr. Holajter said KLEFPF is funded graduated recently from DOCJT Academy. He Senator Carroll said that one option is through a 1.8 percent surcharge on casualty invited the committee to come to DOCJT to see to enact a statute to allow FWR officers to be insurance premiums for property that is at risk. how the system works. rehired by other law enforcement departments The Department of Criminal Justice Training In response to a question from Senator after retirement. Another option is to move FWR (DOCJT) program and the law enforcement Carroll, Mr. Grate said no state trains its law officers into KLEFPF, retaining the stipend from program of KLEFPF get 72 percent of those enforcement officers more or better than does FWR, which would allow for rehiring based on receipts. This portion of DOCJT’s budget is Kentucky. existing statutes. approximately $60 million. A balance forward Senator Carroll commented that he also In response to a question from Senator of approximately $5 million is planned each thought there were problems with the ranking Carroll, Mr. Bush said FWR officers want to be in year to cover operating expenses and training list. The number of applicants to the state police KLEFPF because of the pride attached to being stipends prior to receiving the first payment has been declining. treated similarly to other POPS-certified officers of the year. Last year, there was an $11 million Representative Simpson said Kentucky’s low and to allow for rehiring. transfer from the fund. DOCJT was appropriated ranking would make a good Program Review and Senator Carroll said that the initial hope approximately $71 million. It is projected to end Investigations Committee study in the future. was that the FWR stipend would come from with a balance of approximately $7.4 million, Mr. Bush said the FWR officers are KLEFPF, so FWR money could be freed up for

22 2017 Interim LEGISLATIVE RECORD raises and hiring more officers. In response to a question from Senator has indicated that general fund debt service of In response to a question from Senator Carroll, Sergeant Milburn said passing a law $188,000 annually for the Owsley County bond Carroll, Mr. Jemley said the Tourism, Arts and putting FWR officers in KLEFPF but having issue is derived from savings associated with a Heritage Cabinet would support funding for the the stipends come from the Tourism, Arts and Guaranteed Energy Savings Contract the school stipend coming from that cabinet as a permanent Heritage Cabinet would be supported by the may enter into to fund a portion of the project. solution. officers. FWR officers generate revenue for the There are no other general or federal funds Senator Schroder said that an issue with state from the arrests they make outside of FWR involved in this project. the funding in this year’s session was that the violations, but the department does not receive Project Report from the Universities funding was via a budget amendment, which did the revenue. Mr. Brummet reported two lease renewals not allow for sufficient time for legislators to get Senator Carroll commented that this issue for the Kentucky Community and Technical full information. boils down to FWR being fee based and having College System Jefferson Community and Sergeant Milburn said FWR officers are restricted funds. The cabinet structure needs to Technical College. The leases, located in Jefferson POPS-certified, in addition to the department’s be addressed. and Bullitt Counties, have an annual cost of own 12-week academy. Inclusion in KLEFPF is The meeting adjourned at 11:50 AM. $399,775 and $204,992, respectively. important because FWR officers are paid less The University of Kentucky submitted four than other state law enforcement officers. When Capital Projects and Bond items for the committee’s consideration: two there are storms or floods, FWR officers are Oversight Committee new leases, one for the College of Medicine in often the first to arrive with special equipment. Minutes Bowling Green, and one for the Barnstable Last year, 8,000 citations were written by FWR May 9, 2017 Brown Kentucky Diabetes and Obesity Center in officers, of which 15 percent were warrants for Call to Order and Roll Call Fayette County; a report of medical equipment criminals or drug abusers. The Capital Projects and Bond Oversight purchases; and a request for a $1.5 million scope In response to questions from Senator West, Committee meeting was held on Tuesday, May increase for the Renovate/Upgrade Athletics Sergeant Milburn said being promoted is the only 9, 2017, at 1:00 PM, in Room 169 of the Capitol Playing Fields 2 project. The scope increase is way to receive a raise. A Conservation Officer I Annex. Representative Phil Moffett, Co-Chair, 100 percent privately funded, and is needed to makes approximately $29,000; a Conservation called the meeting to order, and the secretary complete the project as redesigned. The revised Officer II makes approximately $32,000. The called the roll. project scope is $3.5 million, and the project force has approximately 130 officers, of whom Present were: will remain 100 percent privately funded. In 10 are captains 2 are majors, 1 is a colonel, and Members: Representative Phil Moffett, Co- accordance with committee’s policy regarding 9 or 10 are lieutenants. The rest are officers or Chair; Senator Rick Girdler; and Representatives the use of private funds for capital projects, the sergeants. Larry Brown and Steven Rudy. university provided assurances to staff that the In response to questions from Senator Guests: Mr. Chris Brummet, Director of private donations have been received. Carroll, Mr. Bush said moving to KLEFPF will Asset Management, Kentucky Community Lease Reports from the Finance and not change the status of funding from which and Technical College System; Ms. Elizabeth Administration Cabinet officers could be given raises. Baker, Planning Director, Budget Office, Mr. Aubrey reported four leases in Franklin Sergeant Milburn said FWR officers are University of Kentucky; Mr. Scott Aubrey, County will be renewed under the same terms leaving for other state law enforcement agencies Director, Division of Real Properties, Finance and conditions. The lease renewals include: because they already have the necessary training. and Administration Cabinet; Ms. Janice Tomes, Cabinet for Health and Family Services, Mr. Bush reiterated that restricted funds Deputy State Budget Director, Governor’s Office $1,127,854; Department for Local Government, in FWR cannot be used for raises because it for Policy Management; Mr. Deck Decker, $196,951; Labor Cabinet, $578,784; and Office of is constrained by how funding is allocated in Executive Director, Office of Administrative and the Attorney General, $482,563. its budget and authority for raises is with the Technology Services, Cabinet for Health and Mr. Aubrey reported one lease modification cabinet. Family Services; Ms. Ashley Adams, Financial for the Department of Corrections in Barren Representative Simpson said that the Analyst, Kentucky Infrastructure Authority; and County. The department plans to renovate its erosion of FWR talent as it loses trained officers Mr. Ryan Barrow, Executive Director, Office of leased space to accommodate three additional to other agencies is an issue. Another issue is that Financial Management. employees. Building modification costs of funding seems to be available but cannot be used LRC Staff: Shawn Bowen, Committee Staff $27,800 will be amortized over the remaining for raises. The General Assembly may be able to Administrator; Julia Wang, Legislative Analyst; lease term (through June 30, 2020). The take action to help increase salaries, but it is up and Jenny Wells, Committee Assistant. department’s monthly rental cost will increase to cabinet secretaries to help with raises for their Due to the lack of a quorum, Representative by approximately $751. employees. Moffett said that all agenda items would be In regard to the four lease renewal reports, In response to a question from Senator West, presented as information items only, and no roll Representative Moffitt asked why the state pays Mr. Bush said budget items are restricted and call votes would be taken. more than the average cost per square foot FWR cannot draw from them for officer salaries. Approval of Minutes (April 18, 2017) ($8.33) for leased space in Franklin County. Mr. The enacted budget is given to the department Due to the lack of a quorum, this item was Aubrey said the state pays above the average cost through the cabinet from the budget office. tabled until the June meeting. per square foot because there are not a lot of In response to a question from Senator Information Item properties in Franklin County that can provide Carroll, Mr. Bush said that excess funds cannot One item of correspondence was a sufficient amount of contiguous space to house be used by other cabinet areas. The department submitted by the School Facilities Construction these larger agencies. He added that the average must hold back a reserve of $13 to $14 million Commission (SFCC) in response to a question cost for leased space, which is updated annually, in case of emergencies such as chronic wasting raised at the committee’s May meeting. SFCC remains relatively low. disease and to maintain operating costs. In response to additional questions from THE KENTUCKY GENERAL ASSEMBLY 23 Representative Moffett, Mr. Aubrey said that Housing Corporation Multifamily Housing were approved by voice vote. he would gather more information for the Revenue Bonds, Series 2017 (Parkway Manor Alcoholic Beverage Control committee regarding the number of leases held Apartments Complex), $7,075,000. Ms. Trout said that, although both are in the by the Office of the Attorney General, the total New School Bond Issues with School Public Protection Cabinet, there is a distinction square footage of each lease, and the number of Facilities Construction Commission (SFCC) between the Alcoholic Beverage Control Board contract and permanent employees in the leased Debt Service Participation and the Department of Alcoholic Beverage space. Mr. Barrow reported two new SFCC school Control (ABC). The department’s primary Project Reports from the Finance and district bond issues for Anderson and Garrard statutory obligation is to prevent underage Administration Cabinet Counties, for a total of $1,231,139. Both issues drinking. It administers statutes and regulates Ms. Tomes reported two projects on behalf will refund outstanding bonds, and no tax matters involving alcoholic beverages; issues of the Department of Military Affairs and the increase was necessary to fund the projects. and renews licenses for distilled spirits, wine, Cabinet for Health and Family Services. The New Local School Bond Issues with 100 and malt beverages; educates licensees and Department of Military Affairs plans to initiate Percent Locally-Funded Debt Service the public; enforces statutes against those who a new unbudgeted capital project known as the Ms. Bowen reported three 100 percent violate alcoholic beverage laws; and prosecutes Paducah Armory Solar Panel Installation project. locally-funded school bond issues for Grayson, noncompliant licensees in an administrative The project will provide for the installation of Jefferson, and Webster Counties. The bond issues forum. The department is introducing a new IT- grid-tied solar panels and lighting upgrades total $42,485,000, and the scope of work includes related system. for the Field Maintenance Shop at the Paducah refunding outstanding energy conservation As of July 1, 2016, the department had a National Guard Armory. The project scope is bonds and renovations and improvements to personnel cap of 69 full-time positions, of which $727,800, and is funded with 87 percent federal district schools. The bond issues did not involve 65 were filled. One year later, the cap was 82 funds and 13 percent restricted funds. a tax increase. positions. Of 71 full-time positions, 54 were filled. The Cabinet for Health and Family Services With there being no further business, the All but one of the other 11 positions were interim submitted a request for a $5.1 million project meeting was adjourned at 1:25 p.m. employees: veterans hired as investigators under scope increase for the Eligibility Systems a US Food and Drug Administration grant. Integration Services project. This project will Program Review and Twenty-one employees have left the department integrate eligibility processing for various Investigations Committee since July 1, 2016. The budget for 2017-2018 is entitlement programs administered by the Minutes $7.7 million, up slightly from the previous fiscal cabinet, and replace the Kentucky Automated June 8, 2017 year. This includes $591,700 from the General Management and Eligibility System. The scope Call to Order and Roll Call Fund. increase is 100 percent federally funded, and will The Program Review and Investigations The department is partnering with the permit the cabinet to add certain elements to Committee met on Thursday, June 8, 2017, at Department of Parks to schedule monthly the new system required under federal law. The 10:00 AM, in Room 131 of the Capitol Annex. classroom training across the state. Employees revised project scope is $90,126,400. Representative Lynn Bechler, Chair, called the are being cross trained to teach Server Training In response to several questions from meeting to order and led the Pledge of Allegiance, in Alcohol Regulations (STAR) classes. Classes Representative Moffett, Mr. Decker said the and the secretary called the roll. will be tailored to the needs of licensees. Online cabinet is adding more tracking tools to the Present were: courses will be increased. system to reduce fraud and abuse. He said the Members: Senator Danny Carroll, Co- There are 15,825 licenses to sell alcoholic implementation of Benefind proceeded without Chair; Representative Lynn Bechler, Co- beverages at 10,055 sites. The average processing the Child Care Assistance Program management Chair; Senators Tom Buford, Perry B. Clark, time for an application for a license is now 20 due to an obligatory delay and changes to federal Wil Schroder, Dan “Malano” Seum, Reginald days. A year ago, the backlog was up to 300 requirements. The cabinet is now working with Thomas, and Stephen West; Representatives days for some applications. As of May 1, 2017, the Child Care Council on several different Brian Linder, Donna Mayfield, Ruth Ann it is possible to apply for a license online. The programs which involve training to meet current Palumbo, Rob Rothenburger, Arnold Simpson, department’s legal department provides legal federal laws. and Walker Thomas. advice and support, issues notices of violation, Report from the Office of Financial Guests: Christine Trout, Commissioner, and is involved with administrative hearings and Management Carol Martin, Malt Beverage Administrator, and open records requests. Ms. Adams reported three Kentucky Trina Summers, Distilled Spirits Administrator, The three members of the board are the Infrastructure Authority loans: Fund A loan, Alcoholic Beverage Control Board; Greg McCall, commissioner and the administrators for City of Benton, Marshall County, $1,780,000; Special Assistant, Rick Woodruff, Acting malt beverages and distilled spirits. The board Fund B loan increase, City of Bardstown, Nelson Executive Director of Office of Infrastructure promulgates regulations; conducts hearings on County, $1,281,000; and Fund B loan, City of Services, David Carter, Executive Director of alleged violations of alcohol laws; fines, suspends, Bardstown, Nelson County, $1,000,000. Security, Commonwealth Office of Technology. or revokes state licenses; and conducts hearings Mr. Barrow reported one new bond issue: LRC Staff: Greg Hager, Committee Staff on local license appeals. University of Kentucky General Receipts Administrator; Chris Hall, Colleen Kennedy, In response to a question from Bonds, 2017 Series C, $150,000,000. He then Van Knowles, Jean Ann Myatt, Brandi Norton, Representative Bechler, Ms. Trout will send provided a follow-up report on three previously William Spears, Shane Stevens, Joel Thomas; information regarding why the personnel cap approved bond issues for Eastern Kentucky Dexter Horne, and Eve Wallingford, Graduate increased. University General Receipts Bonds, 2017 Series Fellows; and Kate Talley, Committee Assistant. Senator Buford commended the department A, $46,140,000; State Property and Buildings Minutes for May 11, 2017 for providing good service. Commission Agency Fund Revenue Bonds, Upon motion by Senator Clark and second In response to questions from Senator Project No. 116, $60,135,000; and the Kentucky by Senator Buford, the minutes for May 11, 2017 Seum, Ms. Trout said there are three levels of

24 2017 Interim LEGISLATIVE RECORD investigators. The two higher levels must be POP Senator Buford commented that during process of being consolidated. Phase II should be certified. Division director Paul Vido’s leadership prohibition, drug stores were they only means completed in 12 to 24 months. Mr. Carter said has led to more professional enforcement. of purchasing alcohol. He pointed out that the there is availability through VPN [virtual private In response to a question from General Assembly can designate the classification network] to access the system remotely. Moving Representative Rothenburger, Ms. Trout said of a city. to Office365 will provide better security when a online STAR classes are available now. The Commonwealth Office of Technology personal device is used. Cell phones are provided diversity of online classes will increase over time. Mr. McCall said that a state technology to contractors and COT urges the use of these Some local ordinances that require training be agency has existed under different names, instead of personal devices. Access to systems done in person. The department has been holding beginning with the Bureau of Computer Services, are encrypted through VPN or other means, and a biannual summit with the Kentucky League of which was created to consolidate computer email is encrypted by the client. Cities, Kentucky Association of Counties, and infrastructure in the 1970s. COT’s mission is to In response to a question from Senator organizations of local ABC administrators. The provide quality services affordably. COT, whose Seum, Mr. McCall said first responders should summits are meant to communicate information operations are funded by agency receipts, has work with the state police or the Office of and provide transparency. 400 staff and 175 contractors. Its enacted budget Homeland Security to ensure compatibility Representative Palumbo commended the is $132 million per year, but it rarely approaches of equipment. The radio systems used by first department for doing a good job. this amount. He discussed four major COT responders is outside of COT’s purview. First In response to questions from Senator initiatives. Under the IT Infrastructure Initiative Net is an initiative to level the playing field for Carroll, Ms. Trout said the biggest changes that (i3), executive branch infrastructure has been first responders. The Kentucky Early Warning have taken place have been in education and consolidated, centralization has been completed System is managed by COT. information technology. Paper files have been for most agencies, and optimization is just In response to a question from replaced by electronic files. Cross training and underway. Beginning with FY 2015, annual Representative Thomas, Mr. Woodruff said COT consistency have improved efficiency. Regarding i3 annual savings have been approximately partners with the Kentucky Board of Elections turnover, 10 employees left state government, $12 million. The i3 approach has included regarding the transition to electronic tablets for six went to other state agencies, two retired, and engaging the Technology Advisory Council, voting registration. The tablets do not create any one co-op returned to school. There is no large which includes representatives of state agencies. undue risk. The Board of Elections has ownership scale concern about disgruntled employees. COT is now paid a monthly fee for hardware of the application. Applications and workload have increased, by agencies, replacing a system in which an In response to questions from Senator but efficiency has improved. The department agency’s spending varied greatly depending on Carroll, Mr. McCall said COT is actively working has developed an internal database system. It whether it was getting equipment upgrades. with the Cabinet for Health and Family Services is working to phase out using contractors as COT is responsible for refreshing hardware, to allow service providers to directly input data. instructors. Specific information on savings can and the agency’s spending is stable over time. Agencies request moving service applications to be provided in about 6 months. Responsibility for applications remains with the cloud to allow providers access. In response to questions from Representative state agencies. A challenge of i3 has been that In response to questions from Senator West, Simpson, Ms. Trout said the department is still consolidation has sometimes resulted in staff Mr. McCall said COT is involved in the platform using quotas, which are special licenses based with expertise in applications being moved from that the Automatic Vehicle Information System on population. These licenses are a challenge for agencies to COT. runs on. The Transportation Cabinet does most the department. Ms. Summers said quotas are The second initiative, which is nearly of the work on the application. COT has no not specific to our state. Restaurants do not need complete, is to consolidate print devices in the information on the cost of the application. quotas, only bars and liquor stores. executive branch. This has resulted in annual In response to a question from Representative Simpson said it is at the savings of nearly $4 million. The third initiative Representative Rothenburger, Mr. McCall said General Assembly’s discretion to modify the is the migration of Microsoft Office 365. This Chief Information Office Barnhart is working law regarding quotas, but expertise from the includes enhancing security features, moving directly with the KentuckyWired initiative. department is welcome. some applications to the cloud, and improving Representative Bechler would like COT to In response to questions from Representative management of mobile devices. Mr. Woodruff encourage the LRC IT department to implement Bechler, Ms. Trout said HB 183 should have said that there are approximately 1,000 early VPN access for the members of the General cleaned up any issues in statute regarding class adopters participating. Mr. McCall said that the Assembly. of cities. Statute dictates the age requirement of a fourth initiative is Kentucky Business One-Stop, The meeting adjourned at 11:40 AM. person selling alcohol. The department interacts which provides the tools needed to register and with the Commonwealth Office of Technology operate businesses. This is a cooperative effort Administrative Regulation (COT) daily. The working relationship is good. among multiple state agencies, with leadership Review Subcommittee In response to a question from Senator provided within COT. An executive director has Minutes of the May Meeting Thomas, Ms. Trout said the distilled spirits just been hired. May 11, 2017 industry has opposed selling liquor in grocery Mr. McCall concluded by saying the Call to Order and Roll Call stores. The Kentucky Distillers’ Association primary emphasis for COT going forward will The May meeting of the Administrative could provide more information. be security. Regulation Review Subcommittee was held on In response to questions from Senator In response to questions from Representative Thursday, May 11, 2017, at 1:00 PM, in Room Carroll, Ms. Martin said lawsuits over regulatory Bechler regarding phase II of i3, Mr. McCall 149 of the Capitol Annex. Senator Ernie Harris, license fees for cities are pending. Ms. Trout said said the Kentucky State Police, the Department Chair, called the meeting to order, and the the department does not have a strong position of Criminal Justice Training, the Council on secretary called the roll. to enforce the fees. The department would need a Postsecondary Education, State Fair Board, and Present were: specialized group if it were to get involved. a number of boards and commissions are in the Members: Senator Ernie Harris, Co-Chair; THE KENTUCKY GENERAL ASSEMBLY 25 Representative Ken Upchurch, Co-Chair; and David Wicker, general counsel, represented in this administrative regulation, but in the Senators Perry B. Clark, and Alice Forgy Kerr; the department. statute. The department needed to follow up Representatives Mary Lou Marzian, Jason Petrie, In response to questions by Co-Chair Harris, this amendment with another amendment and Tommy Turner. Mr. Jenkins stated that captive cervids subject to in the future to address HB 184 2017 GA Guests: Ben Boggs, Lisa Lang, Education rehabilitation were required to be released after changes to the overweight or overdimensional Professional Standards Board; Nathan Goldman, 180 days. Kentucky had not had a case of chronic vehicles transporting metal commodities. Board of Nursing; Gabe Jenkins, Kyle Sams, wasting disease. This administrative regulation included an David Wicker, Department of Fish and Wildlife A motion was made and seconded to amendment to address HB 265 2017 GA, Resources; Oran McFarlan, Department approve the following amendments: (1) to amend which revised the definition for “nondivisible.” of Corrections; Ann Dangelo, Rick Taylor, the RELATES TO paragraph to add citations; This administrative regulation also established Transportation Cabinet; Chandra Venettozzi, and (2) to amend Sections 2 through 5 to comply provisions for self-propelled specialized mobile DJ Wasson, Office of Health Benefit Exchange; with the drafting requirements of KRS Chapter equipment, such as self-propelled cranes. Laura Begin, Margaret Jones, Hollie Sands, 13A. Without objection, and with agreement of A motion was made and seconded to Department for Public Health; Brit Anderson the agency, the amendments were approved. approve the following amendments: to amend MD, Sheena Burch, Michelle Cardwell, Erika 301 KAR 2:083. Holding and intrastate Sections 2, 5, 6, 8, and 15 through 18 to comply Calihan, Bethany Clark, Jennifer Evely, Ashley transportation of captive cervids. with the drafting and formatting requirements of Kennedy, Tracy Kielman, Michelle Malicote, 301 KAR 2:178. Deer hunting on Wildlife KRS Chapter 13A. Without objection, and with Kara Meredith, Sally OBoyle, Mary Delodder, Pat Management Areas, state parks, other public agreement of the agency, the amendments were Purcell MD, Jonathan Sayat MD, Patty Swiney lands and federally controlled areas. approved. MD, Sue Violette, Jamie Bloyd, Pediatric Cancer A motion was made and seconded to approve CABINET FOR HEALTH AND FAMILY Research Trust Fund, Jill Hunter, Donna Little, the following amendments: (1) to amend Section SERVICES: Office of the Kentucky Health Steve Miller, Department for Medicaid Services. 6 to make a technical formatting correction; and Benefit and Information Exchange: Kentucky LRC Staff: Sarah Amburgey, Emily Caudill, (2) to amend Section 7 to remove Perryville Health Benefit Exchange Betsy Cupp, Ange Darnell, Emily Harkenrider, Battlefield State Historic Site from the list of 900 KAR 10:041. Repeal of 900 KAR 10:040 Karen Howard, and Carrie Klaber. state deer hunting opportunities in November. and 900 KAR 10:050. Chandra Venettozzi, health The Administrative Regulation Review Without objection, and with agreement of the data administrator, and D. J. Wasson, division Subcommittee met on Thursday, May 11, 2017, agency, the amendments were approved. director, represented the exchange. and submits this report: JUSTICE AND PUBLIC SAFETY Department for Public Health: Division Administrative Regulations Reviewed by CABINET: Department of Corrections: Office of of Epidemiology and Health Planning: the Subcommittee: the Secretary Communicable Diseases EDUCATION AND WORKFORCE 501 KAR 6:040. Kentucky State Penitentiary. 902 KAR 2:060. Immunization schedules DEVELOPMENT CABINET: Education Oran McFarlan, staff attorney, represented the for attending child day care centers, certified Professional Standards Board: As-assessment department. family child care homes, other licensed facilities 16 KAR 6:020. Assessment requirements for In response to questions by Co-Chair Harris, which care for children, preschool programs, occupation-based career and technical education Mr. McFarlan stated that this administrative and public and private primary and secondary teachers. Lisa Lang, general counsel, and regulation represented the annual amendment schools. Laura Begin, regulation coordinator; Benn Boggs, director of educator preparation to the Kentucky State Penitentiary policies. Margaret Jones, nurse service administrator; assessment internship, represented the board. Requirements among the different institutions and Hollie Sands, MPG, epidemiologist, GENERAL GOVERNMENT CABINET: were generally consistent; however, there represented the department. Brit Anderson, Board of Nursing were institution-specific requirements due to MD, pediatrician; Tracy Kiel-man, director, 201 KAR 20:056. Advanced practice differences in the populations and facilities. Kentucky Immunization Coalition; Stephanie registered nurse license and certification A motion was made and seconded to approve Lyndsey, CEO, Signature Healthcare of North requirements. Nathan Goldman, general the following amendments: to amend Section 1 Hardin; Michelle Malicote, registered nurse, counsel, represented the board. and the material incorporated by reference: (1) Madison County School District; Kara Meredith, A motion was made and seconded to to comply with the drafting requirements of KRS CEO, Signature Healthcare of North Hardin; Pat approve the following amendments: (1) to Chapter 13A; and (2) for consistency with other Purcell, MD, American Academy of Pediatrics: amend the RELATES TO; STATUTORY departmental policies. Without objection, and Kentucky Chapter; Jonathan Sayat, MD, AUTHORITY; and NECESSITY, FUNCTION, with agreement of the agency, the amendments pediatrician; and Patty Swiney, MD, Kentucky AND CONFORMITY paragraphs to correct were approved. Academy of Family Physicians, appeared in citations; and (2) to amend Sections 1, 6, and TRANSPORTATION CABINET: support of this administrative regulation. Sheena 7 to comply with the drafting requirements of Department of Vehicle Regulation: Motor Burch, citizen; Michelle Cardwell, parent; Erika KRS Chapter 13A. Without objection, and with Carriers Calihan, parent; Beth-any Clark, parent; Mary agreement of the agency, the amendments were 601 KAR 1:018. Special overweight or Delodder, parent; Jennifer Evely, parent; Ashley approved. overdimensional motor vehicle load permits. Kennedy, Kentucky Vaccine Rights Coalition; 201 KAR 20:057. Scope and standards of Ann D’Angelo, assistant general counsel, and and Sally O’Boyle, parent, appeared in opposition practice of advanced practice registered nurses. Rick Taylor, deputy commissioner, represented to this administrative regulation. TOURISM, ARTS, AND HERITAGE the department. In response to a question by Co-Chair CABINET: Department of Fish and Wildlife In response to questions by Co-Chair Harris, Ms. Begin stated this administrative Resources: Game Harris, Mr. Taylor stated that the fee related to regulation established immunization 301 KAR 2:075. Wildlife rehabilitation the overweight or overdimensional vehicles requirements for school and day care entry. The permit. Gabe Jenkins, deer and elk coordinator, transporting aluminum was established, not current version of this administrative regulation

26 2017 Interim LEGISLATIVE RECORD required a medical provider’s approval for a department further amended this administrative nurse of thirty-eight (38) years, the matter of parent or guardian’s religious exemption to regulation to delay the effective date until 2018. immunization was extremely important. When immunization. Less than one (1) percent of Dr. Purcell stated the American Academy of the first polio immunization became available, Kentucky children had a religious exemption; Pediatrics: Kentucky Chapter strongly supported many families rushed to have the immunization however, it was a serious issue that needed to be this administrative regulation. The immunization to prevent the serious and potentially deadly addressed. The department received three (3) against meningitis for sixteen (16) year olds was disease that was polio. Polio had been nearly main complaints that precipitated the proposed especially important to prepare students for the eradicated; however, polio was now making a amendments to this administrative regulation. socialization activities of adolescent high school comeback because of immunization exemptions. The complaints included requiring a medical and college life, such as sports and camping. There had been other incidents of outbreaks. For provider’s approval for what should have been In response to questions by Representative example, California had recently experienced the parent or guardian’s religious decision. The Petrie, Ms. Begin stated that the Commonwealth an outbreak of measles due to immunization requirement for a medical provider’s approval of Kentucky Parent or Guardian’s Declination on exemptions. The religious exemption provided a seemed to exceed KRS 214.036, which required Religious Grounds to Required Immunizations good balance, but the informed con-sent was an a written, sworn statement of religious objection form was the form incorporated by reference in important component of the exemption process. to immunization. Another complaint regarding this administrative regulation for the purpose of It was also important to remember that all drugs the required medical provider’s approval was that declining immunization. KRS 214.036 required a included potential side effects, even an aspirin. a co-pay for an appointment was often required written, sworn statement of religious objection to Immunizations had been carefully researched to obtain the medical provider’s consent. A immunization. KRS 214.036 did not require that and verified. third complaint was that it was difficult to find the written, sworn statement include language Co-Chair Harris explained the amendment a medical provider willing to consent to the regarding informed consent. The department that had been agreed to by the department. religious exemption to immunization. As a opted to include that language after the removal In addition to revision to the sworn oath, result of the complaints, the department formed of the requirement for a medical provider’s as already discussed, the amendment also a work group, consisting of individuals from the approval. The rationale was that the informed changed the informed consent language for Kentucky Immunization Program, the Division consent language would replace information that each immunization type. In lieu of “I have been of Maternal and Child Health, the Kentucky may have otherwise been provided by a medical informed that by not receiving this vaccine, my Department of Education, and school nurses. provider during the approval process. The child will be at increased risk . . .,” which may The work group developed amendments to this department agreed to amend this administrative be construed as self-incriminating language, the administrative regulation over a two (2) to three regulation at this Subcommittee meeting to amended language stated: “I acknowledge that (3) year period to address complaints related revise the notary language to include after there are increased risks associated if exposed to to the religious exemption to immunization. “sworn to,” “or affirmed under oath,” in order this disease. Serious symptoms . . .” include . . . After filing the proposed amendments, the to provide for individuals who may be morally Ms. Calihan stated that, as a mother of three department received 141 public comments. opposed to swearing an oath. The department (3) children, it was her responsibility to ensure In response to those public comments, the preferred a standardized form in order to that her children were cared for in the best way department proposed further amendments to relieve the administrative burden of different possible. She would not sign the Commonwealth this administrative regulation, which among forms of the sworn or affirmed statement. A of Kentucky Parent or Guardian’s Declination on other changes clarified that the Commonwealth parent or guardian with a religious objection Religious Grounds to Required Immunizations of Kentucky Parent or Guardian’s Declination on to immunization was required to submit this form, including with the amendments to the Religious Grounds to Required Immunizations form; however, there wasn’t language in this form made at this Subcommittee meeting, form may be obtained online, shall be completed administrative regulation that explicitly required because the form violated parents’ freedom of in the presence of a notary, and shall be submitted a school to accept this form, rather than another con-science in that it indicted the parent who upon enrollment to a school or day care. The written, sworn or affirmed statement. signed. God, not the state, established rights. revised declination form included a list of each In response to questions by Ms. O’Boyle, The form compelled self-incrimination by immunization so that a parent or guardian had Ms. Begin stated that the sworn statement in the requiring a sworn statement as to the risks of the option of only declining certain ones and presence of a notary included swearing that the disease exposure, without a similar statement included informed consent (risk of exposure) selected information on the form was truthful, regarding the risks of immunization; therefore, language about each type of immunization. not merely notarizing for the purpose of the form was unbalanced. The informed consent Confusion regarding the forms was most likely affirming identity of the parent or guardian. The language included on the form went above and related to the current effective version, versus department agreed to amend this administrative beyond what was required by KRS 214.036. the proposed version being amended at this regulation at this Subcommittee meeting to The form should be amended to either remove Subcommittee meeting. Once the final version revise the notary language to include affirmation, the informed consent language altogether or became effective, the discrepancies should end, as an option in lieu of swearing. counterbalance language regarding the risks and the form should be easily attainable. The In response to a question by Senator Clark, of exposure to disease with language regarding department also received public comments from Co-Chair Harris stated that Subcommittee Staff the risk of immunization. An example of some physicians who stated that the mandate indicated that the exemption due to religious language pertaining to the risks associated with to use the electronic immunization registry was objection was the only non-medical option for immunization, might include for example: “I too burdensome at this time; there-fore, the declining immunization be-cause that was the also understand that by vaccinating my child, I department further amended this administrative only reason authorized by KRS 214.036. Senator am injecting him or her with known toxins, as regulation to remove that requirement. There Clark stated that a parent or guardian should be well as aborted human DNA, and placing him or were public comments that it would be difficult able to decline for any conscientious objection, her at risk for side effects, such as but not limited to comply with this administrative regulation not only on religious grounds. to, as stated on the vaccine insert: the disease for during the current school year; therefore, the Representative Marzian stated that, as a which he or she is being vaccinated, encephalitis, THE KENTUCKY GENERAL ASSEMBLY 27 allergies, asthma, chronic arthritis, anaphylaxis, Ms. Clark stated that she could not blood – brain barrier and loosens tight junctions Guillain-Barre syndrome, death, etc.” While legally or morally sign the Commonwealth of allowing viruses to enter; and retroviruses, western medicine had made great strides for Kentucky Parent or Guardian’s Declination on the long-term effects of which were essentially humanity, our accomplishments had created in Religious Grounds to Required Immunizations unknown. After learning of some immunization us an arrogance. We exempted pharmaceutical form, including with the amendments to the components, Ms. Cardwell became opposed companies from lawsuits by children harmed form made at this Subcommittee meeting. She to some immunizations based on scientific, from immunization, which placed an onus on was authorized a religious exemption by KRS safety, and religious concerns. Immunizations parents to be vigilant regarding immunization. 214.036; however, this administrative regulation have been a benefit to humanity, but a one (1) Ms. Calihan asked the Subcommittee not to then coerced an agreement to language to which size-fits-all approach did not take into account allow this administrative regulation to trample she could not agree. individual medical situations. The large number parents’ God-given rights. Ms. Evely stated that she agreed with the of immunizations risked the effectiveness of the Ms. Delodder stated that she agreed with comments that had been made by other parents immunization system as a whole. The United all of the comments made by Ms. Calihan at this Sub-committee meeting. One (1) of her States was a democracy, not a paternalistic and had additional concerns regarding the daughters was in the process of overcoming an control state. It was important to ensure that Commonwealth of Kentucky Parent or injury from pediatric immunization, and another democracy through religious rights and the right Guardian’s Declination on Religious Grounds to daughter was battling leukemia. The informed to bodily integrity in the healthcare system. Required Immunizations form. The current form consent language in the declination form was Representative Petrie stated that, outside was available on the Department of Education’s incriminatory to the parent or guardian and did of the argument of whether immunization was Web site; however, there was also a form on the not include the risks of immunization, which beneficial or not, the relevant statues, among Cabinet for Health and Family Services Web were many. Because of her daughter’s leukemia, other provisions, established that a provider site. The two (2) forms were very different, and it was dangerous for either child to receive shall not be required to immunize a child if the there was confusion among parents, schools, and immunizations of live viruses, and the family parent or guardian has a religious objection. KRS health departments as to which form to use. opposed immunization on religious grounds. 214.036 required only a written, sworn statement Ms. O’Boyle stated that she agreed with the Ms. Malicote stated that there was a pertussis of religious objection to immunization. Informed comments made by Ms. Calihan. KRS 214.036 outbreak in Estill County, which had resulted in consent was not a component of the authorizing allowed parents or guardians, based on religious several cases in neighboring Madison County. statutes; therefore, this administrative regulation grounds, to decline immunization for children. This administrative regulation established the exceeded its statutory authority. A motion The statute required only a written, sworn mandatory immunization schedule for school was made by Representative Petrie to find this statement, not the informed consent language and day care attendance and allowed for religious administrative regulation deficient. There being or even a standardized form. This administrative exemption from immunization. Kentucky was no second to the motion, the motion to find this regulation should not require more than what finally following the Centers for Disease Control administrative regulation deficient failed. is required by the authorizing statute. If a form recommendations for a second meningococcal Co-Chair Harris stated that Kentucky should with informed consent was required, it should immunization for sixteen (16) year olds and a be proud to have recognized a religious exemption include language regarding the risks associated hepatitis A immunization. This administrative from immunization. The same principal of with immunization. In response to questions by regulation also established that eventually all parental decision making applied in the case of Ms. O’Boyle, Representative Petrie stated that a providers shall use the Kentucky Immunization religious exemption from immunization as it notary had at least two (2) possible functions. Registry. The registry has been an important applied to other issues, such as home schooling. One (1) function was to verify identity as resource to verify that all students have been This administrative regulation would move on to an official witness. Another function was to immunized. The registry was an important the second committee, which would most likely administer an oath, which was synonymous with tool for ensuring immunization coverage by be the Interim Joint Committee on Health and swearing. consolidating immunization information from Welfare. Ms. Burch stated that she appreciated the multiple providers. Immunization coverage was A motion was made and seconded to religious exemption to immunization. Informed necessary for protecting children from illness approve the following amendments: (1) to consent was the cornerstone of healthcare; and for healthy communities. amend Section 8 to up-date the edition date however, the informed consent language in the Ms. Cardwell stated that after one (1) of for the Commonwealth of Kentucky Parent or form should be more informative and objective her three (3) children was acutely injured by Guardian’s Declination on Religious Grounds and less accusatory and subjective. An example immunization, she educated herself regarding to Required Immunizations form; and (2) of language pertaining to the risks associated the related issues. The essential issue was a matter to amend the form to: (a) revise the notary with immunization, might include for example: of science. There were numerous peer-reviewed language to include after “sworn to,” “or affirmed “I have been informed of the benefits and the medical journals that raised concerns regarding under oath;” and (b) for each immunization serious risks that accompany vaccinations.” To immunization schedules. In an advanced type, in lieu of “I have been in-formed that by truly constitute informed consent, language pharmacology class, Ms. Cardwell learned that not receiving this vaccine, my child will be at should be included regarding the risks associated each patient should have a medical review to increased risk . . .,” insert “I acknowledge that with declining immunization as well as the determine appropriate medical decisions and there are increased risks associated if exposed risks of immunization. The Commonwealth of prescriptions. The pharmaceutical industry was to this disease. Serious symptoms . . .” Without Kentucky Parent or Guardian’s Declination on exempt from lawsuits regarding immunization. objection, and with agreement of the agency, the Religious Grounds to Required Immunizations The only other industry with these sorts of amendments were approved. form should be easily available, and the correct exemptions was nuclear waste disposal. Some Division of Prevention and Quality version of the form should be evident to avoid immunizations contained aborted diploid fetal Improvement: Programs for the Underserved the confusion that has occurred over availability cells; strains of viruses from monkey renal cells; 902 KAR 21:030. Pediatric Cancer Research and different versions. formaldehyde; polysorbate 80, which crosses the and Treatment Grant Program. Laura Begin,

28 2017 Interim LEGISLATIVE RECORD regulation coordinator, and Jamie Bloyd, shall take effect on July 1, 2017; and (b) urban qualifications for temporary licensure. president, Kentucky Pediatric Cancer Research to rural shall not take effect until July 1, 2018. Board of Medical Imaging and Radiation Trust Fund, represented the division. Without objection, and with agreement of the Therapy In response to a question by Co-Chair agency, the amendments were approved. 201 KAR 46:040. Medical imaging Harris, Ms. Bloyd stated that this administrative The following administrative regulations technologist, advanced imaging professional, regulation was the result of efforts that began in were deferred or removed from the May 11, radiographer, nuclear medicine technologist, the fall of 2014. This administrative regulation 2017, Subcommittee agenda: and radiation therapist licenses. was of personal importance to Senator Wise and GENERAL GOVERNMENT CABINET: 201 KAR 46:060. Continuing education Ms. Bloyd because both were the parents of sons Board of Pharmacy requirements. who survived neuroblastoma. This administrative 201 KAR 2:074. Pharmacy services in 201 KAR 46:070. Violations and regulation established the application process for hospitals or other organized health care facilities. enforcement. determining fund allocations. The fund raised Office of Occupations and Professions: 201 KAR 46:090. Complaint process and $13,000 in the first year, which was a small start Board of Psychology administrative hearings. but the fund had significant plans for the future. 201 KAR 26:125. Health service provider ENERGY AND ENVIRONMENT It was important in funding the research and designation. CABINET: Office of the Secretary: treatment of pediatric cancer to establish criteria 201 KAR 26:130. Grievance. Administration to ensure purposeful al-location of resources. 201 KAR 26:140. Procedures for disciplinary 400 KAR 1:001. Definitions for 400 KAR The fund’s criteria was aligned with the State hearings. Chapter 1. Cancer Action Plan. In Kentucky, approximately 201 KAR 26:145. Code of conduct. 400 KAR 1:031. Repeal of 400 KAR 1:030. 200 children each year were diagnosed with 201 KAR 26:155. Licensed psychologist: 400 KAR 1:090. Administrative hearings pediatric cancer. Most were male and averaged application procedures and temporary license. practice provisions. approximately six (6) years of age at diagnosis. 201 KAR 26:160. Fee schedule. 400 KAR 1:100. General administrative Kentucky had a nationally high incidence of 201 KAR 26:165. Inactive status. hearing practice provisions relating to matters pediatric cancers, especially central nervous 201 KAR 26:171. Requirements for brought under KRS Chapters 146, 149, 151, 223, system tumors and retinoblastoma. One (1) goal supervision. and 224. of the fund was to research why Kentucky had 201 KAR 26:175. Continuing education. Department of Environmental Protection: such a high incidence of these pediatric cancers. 201 KAR 26:180. Requirements for granting Division of Air Quality: Environmental Another goal was to get access for children licensure as a psychologist by reciprocity. Protection diagnosed with pediatric cancer to treatment 201 KAR 26:185. Requirements for granting 401 KAR 100:011. Repeal of 100:010. at Children’s Oncology Group Hospital because licensure as a psychologist to an applicant Department of Natural Resources: Division pediatric cancer patients treated in pediatric licensed in another state. of Mine Reclamation and Enforcement: Surface hospitals tended to have better outcomes 201 KAR 26:190. Requirements for Effects of Noncoal Mining than those treated in hospitals that were not supervised professional experience. 405 KAR 5:095. Administrative hearings, specifically equipped to treat children. Governor 201 KAR 26:200. Education requirements informal settlement conferences, and general Bevin, Kentucky’s First Lady, Senator Wise, and for licensure as a psychologist. practice provisions relating to a mineral many others were involved in the important 201 KAR 26:210. Educational requirements operation. efforts of the fund. The objective of the fund was for licensure as a licensed psychological associate. General Provisions pediatric cancer re-search and treatment that 201 KAR 26:215. Nonresident status. 405 KAR 7:092. Administrative hearings would be innovative and effective. 201 KAR 26:225. Renewal and reinstatement. and assessment conferences relating to matters A motion was made and seconded 201 KAR 26:250. Employment of a brought under KRS Chapter 350 relating to to approve the following amendments: to psychological associate. surface coal mining and reclamation operations, amend the NECESSITY, FUNCTION, AND 201 KAR 26:280. Licensed psychological and coal exploration operations. CONFORMITY paragraph and Sections 3 associate: application procedures and temporary 405 KAR 7:093. Repeal of 405 KAR 7:091. through 5 to comply with the drafting and license. EDUCATION AND WORKFORCE format-ting requirements of KRS Chapter 13A. 201 KAR 26:290. Licensed psychological DEVELOPMENT CABINET: Department of Without objection, and with agreement of the practitioner: application procedures. Workplace Development: Office of Employment agency, the amendments were approved. Board for Licensing for Marriage and and Training: Unemployment Insurance Department for Medicaid Services: Division Family Therapists 787 KAR 1:070. Reasonable time for of Policy and Operations: Medicaid Services 201 KAR 32:050. Code of ethics. protesting claim. 907 KAR 1:065. Payments for price- 201 KAR 32:060. Continuing education The Subcommittee adjourned at 2:30 p.m. based nursing facility services. Jill Hunter, requirements. until June 13, 2017, at 1 p.m. deputy commissioner; Donna Little, regulatory Board of Interpreters for the Deaf and Hard compliance senior policy advisor; and of Hearing Public Pension Oversight Steve Miller, commissioner, represented the 201 KAR 39:001. Definitions for 201 KAR Board department. Chapter 39. Minutes of the 5th Meeting A motion was made and seconded to 201 KAR 39:030. Application; qualifications of the 2017 Interim approve the following amendments: (1) to for licensure; and certification levels. May 22, 2017 amend Sections 1, 4, 6, 7, 8, and 11 to comply 201 KAR 39:050. Renewal of licenses, Call to Order and Roll Call with the drafting requirements of KRS Chapter extension of temporary licenses and The fifth meeting of the Public Pension 13A; and (2) to amend Section 5 to establish that reinstatement. Oversight Board was held on Monday, May 22, a change in designation from: (a) rural to urban 201 KAR 39:070. Application and 2017, at 1:00 PM, in Room 154 of the Capitol THE KENTUCKY GENERAL ASSEMBLY 29 Annex. Senator Joe Bowen, Chair, called the managing director, PFM Group; Sean McNeeley, Under the June 30, 2016, actuarial meeting to order, and the secretary called the Senior Managing Consultant, PFM Group; assumptions, KERS-NH was projected to decline roll. and Adam Reese, a principal with PRM from a 16 percent funded ratio, even with healthy Present were: Consulting Group and managing director of earnings, high payroll growth, and full required Members: Senator Joe Bowen, Co-Chair; PRM’s actuarial services division. Their 52-page funding. If the previous actuarial assumptions Representative Brian Linder, Co-Chair; Senators slide presentation—entitled “Commonwealth that were in effect prior to the most recent action Jimmy Higdon, Christian McDaniel, Gerald of Kentucky Pension Performance and Best of the KRS board were met, the plan would be A. Neal, Dennis Parrett, and Wil Schroder; Practices Analysis/Interim Report #2: Historical projected to reach only a 28.9 percent funding Representatives Ken Fleming, James Kay, Jerry and Current Assessment”—addressed the level in 2033 and would still be one of the worst- T. Miller, Arnold Simpson, and Russell Webber; following major areas: Magnitude of the funded plans in the nation. Slide 9 illustrates J. Michael Brown, John Chilton, Timothy Fyffe, Challenge, How Did We Get Here, Cash Flows an alternative “level dollar” funding approach, Mike Harmon, and Sharon Mattingly. and Solvency Analysis, Benefits Benchmarking, instead of the historical “percent of payroll” Guests: Mike Nadol and Sean McNeeley, and Investment Analysis. Mr. Nadol said that he approach. This alternative approach would PFM Group; Adam Reese, PRM Consulting and his colleagues are humbled by the importance improve the funding level over time but would Group; and Representative Derrick Graham. of the task at hand. They have approached it require higher contributions in the near term. LRC Staff: Brad Gross, Jennifer Black with seriousness and hope that their work will With a level dollar approach the funded ratio is Hans, Bo Cracraft, Michael Callan, and Peggy contribute constructively to positive steps going projected to reach 60.7 percent in year 2033. Sciantarelli. forward. Slide 10 focuses on general fund budget The minutes of the April 24, 2017, meeting Mr. Nadol discussed the magnitude of the estimates for the KERS-NH and TRS plans. were approved without objection. challenge. Kentucky’s unfunded pension liability Under the old actuarial assumptions, there In his opening remarks, Senator Bowen is approximately $33 billion under published would be steady growth in funding requirements stated that through the work of the Public actuarial rates of return/discount rates. There from 2019 to 2033. Progress toward covering the Pension Oversight Board (PPOB) members and is an additional $6 billion unfunded health care liability would be negative in the first few years others, it is now understood that many factors liability. The unfunded pension liability increases and modest in subsequent years. The level dollar contributed to the current critical underfunding significantly when measured by alternative approach is somewhat akin to a home mortgage, of the pension plans. It was primarily the work discount rates. The more conservative asset in that similar amounts would be paid every year. of PPOB members that led to the 2017 passage allocation approach better reflects the condition This approach would cost more in the near term; of Senate Bill 2—significant accountability of the funds. It assumes a 5.1 percent rate for the however, assuming other actuarial assumptions and transparency legislation which added Kentucky Employees Retirement System (KERS) are met, the contribution rate would be more investment specialists to pension boards, made and 6.0 percent for the other plans and projects stable and would eventually decline as the reporting requirements uniform and more the unfunded liability at $42 billion. This is liability is paid down. Slide 10 also illustrates transparent, made the pension plans subject consistent with the direction recently taken projected actuarial funding requirements under to the Model Procurement Code, provided for by the KRS board to use a more conservative lower assumed investment rates of return—rates Senate confirmation of board members, and set of assumptions. The Corporate Bond Index that are consistent with, although not identical gave the executive and legislative branches a discount rate of 3.87 percent for evaluating to, those recently adopted by the KRS board. larger role in management and oversight of private sector pension plans would project the Mr. McNeeley discussed the status of retiree the pension systems. Creation of the PPOB in unfunded liability as high as $64 billion. Under health care. (slides 11 and 12). Kentucky’s Other 2013 has enabled the legislature to be better the 30-year Treasury rate of 2.72 percent, the Post-Employment Benefits (OPEB) liabilities informed about the nature and extent of the liability would increase to $84 billion—more are relatively better-funded. The $6 billion pension funding crisis, and he looks forward to than seven times the recent annual General Fund unfunded liability is much lower than for working with everyone on a longtime solution to spending. According to Standard & Poor’s 2015 pensions. Employees contribute toward future the fiscal challenges. Senator Bowen noted that comparison of the five states with the worst- health care benefits, which is not typical. KRS the meeting folders include a Revised Quarterly funded pension ratios, Kentucky is the least implemented benefit reforms in 2003 and TRS Investment Performance Update by LRC staff well-funded in terms of the aggregate of state in 2010. Kentucky has done more to fund OPEB and that the next PPOB meeting is scheduled for liabilities. than most other states and ranks near the median June 26, 2017. The unfunded liability of Kentucky’s nationally, according to Standard & Poor’s data. Public Pension Performance Audit – two largest state pension systems—KERS- Only two states with a higher funding ratio than Interim Report #2 nonhazardous (NH) and Kentucky Teachers’ Kentucky—Ohio and Alaska—also have a higher Mr. Chilton said the Office of the State Retirement System (TRS)—has increased OPEB liability. Budget Director has been working on the audit dramatically since 2002. Despite increasing Senator Bowen questioned the rationale for with the PFM Group for several months. PFM state expenditures for these two systems, funded use of the level percentage of payroll funding produced Interim Report #1 in late December ratios have sharply declined (slide 6). Pension method. Mr. Nadol said the level percent of 2016, relating to transparency and governance. expenditures are growing much faster than payroll funding approach is common. It is a way Interim Report #2 (“Historical and Current revenue and are diminishing the capacity of to spread out costs over time in recognition that Assessment”) provides historical and current the state budget to address other needs. A past payrolls generally rise over time. There is some perspectives on the status of the various pension report by the major rating agency Moody’s thought that it provides greater intergenerational plans. Today’s presentation is a summary of the found that Kentucky’s net pension liability was equity because employees will be earning more full report, and both will be available on the 185 percent of total governmental revenue, in the future and can contribute more. Slide 16 website of the State Budget Director (http://osbd. compared to a national median of 60 percent. (Actuarial Backloading Illustrated) illustrates ky.gov). Pension expenditures are also high relative to that the level percent of payroll method used Guest presenters were Mike Nadol, salaries (slide 8). by Kentucky’s systems assumes funding

30 2017 Interim LEGISLATIVE RECORD contributions grow along with payroll. Principal assumptions (20 percent), poor investment liability increase. Each year TRS amortization payments are allocated heavily to the end of performance (20 percent), and “other” (25 payment amounts have been less than the interest the amortization period. In the early years of percent). After multiple inquiries, staff learned on the unfunded liability. While underfunding the period, payments may not be large enough that “other” referred to use of a percentage of of the ARC was a meaningful factor, actuarial to offset interest on the unfunded liability. The payroll versus a level dollar funding system. Mr. back-loading, changes in assumptions, and KERS-NH amortization period was reset to 30 Nadol said the audit’s update of past analyses investment performance compared to the 7.5 years in 2013, and the TRS period was reset every reveals a similar breakdown. He agreed that the percent discount rate were all larger causes of year until 2014. When the amortization period percentage of payroll funding method has been increase in the unfunded liability between 2005 is reset, payments do not progress to paying a major factor in the unfunded liability. Senator and 2016. Although TRS investment returns down the unfunded liability. KERS-NH actuarial Higdon complimented committee staff for their have been better than KRS returns, investment valuations assumed between 4 percent and 4.5 efforts in responding to his information requests. performance contributed more to the increase percent annual payroll growth since 2005, yet Mr. Nadol discussed components of the in unfunded liability for TRS in dollar terms covered payroll declined by a compound annual $25.3 billion increase in unfunded pension than it did for KERS-NH. TRS has a larger asset average of 1.1 percent. Negative amortization is liabilities for all the systems (slide 14 – How Did base; as a result, underperforming the valuation the technical term for actuarial backloading. We Get Here: Summary). Across all state systems assumption by 1 percent would have a greater Representative Miller asked whether a the largest cause (25 percent) of the increase was dollar impact. Mr. Nadol pointed out that TRS bifurcated funding method would be an option use of the level percentage of payroll funding has outperformed the market for much of the for Kentucky—using the percentage of payroll method (“actuarial back-loading” or “negative time period. However, the market as a whole method for current service and the level dollar amortization”). This was amplified by pay growth has performed below the expected TRS actuarial method for the historical unfunded liability. assumptions far higher than actual pay increases assumptions and assumed investment return Mr. Nadol responded affirmatively. He said that over the 11-year period since 2005. Changes rates. normal cost for current service would typically in actuarial assumptions (22 percent) and the Senator Bowen questioned whether be expressed as a percent of payroll, with a level benchmark investment market performance Kentucky’s response to the worsening unfunded dollar approach used for budgeting purposes. assumption (15 percent) were major factors. liability has been slow. Mr. Nadol said the audit Effectiveness of that approach would be a key Another major cause (15 percent) was employer has focused on what to do going forward. A consideration, given the stressed condition of funding of less than the actuarially recommended lot of market observers and systems have been the systems. Mr. Nadol explained that he is not rates—an issue for three of the six plans and a rethinking their approach and heightening their an actuary but that Mr. Reese is an experienced major cause of the increase in the KERS-NH scrutiny. The rating agencies have adopted more pension and health care actuary and is providing plan. Unfunded COLAs was the fifth major intensive methodologies for reviewing pension actuarial expertise and calculations for the cause (9 percent). Investment performance (8 liability. Governmental Accounting Standards audit. Their team has also been working with percent) and plan experience (6 percent) also Board (GASB) rules have been revised, and Cavanaugh Macdonald. contributed to the increase in pension liabilities. many systems have been revising their actuarial Representative Linder asked about Mr. Nadol said changes that were made to reflect assumptions. If judged slow to react, Kentucky projected funding levels for the next 15 years and actual investment return led to an increase in would not be alone. beyond, in relation to accrued liability by tier. reported liability. The majority of investment Senator McDaniel said that slide 15 Mr. McNeeley said the challenge relates more to underperformance has been due to the market indicates that TRS funded less than the ARC. It legacy than to the benefit being provided to Tier as a whole rather than individual performance is his understanding that the General Assembly 3 employees. Slide 51 shows that as of the most of the funds. In the earlier years of the review has a statutory obligation to the ARC for all recent valuation, the entire KERS-NH accrued period, some unfunded benefit improvements systems except TRS, which is governed by a unfunded liability is associated with Tier 1— added to the liability. Plan experience refers to strict percentage of payroll contribution. He at 76 percent for retired/inactive employees general assumptions such as mortality. feels it is important to note the distinction that and 23 percent for Tier 1 active employees. Mr. Reese reviewed slide 15, which charts the statutory obligation to TRS is to a particular The amortization method projects 100 percent the dollar amounts of the increase in unfunded percentage, since this would be reflective of TRS funding by the end of the amortization period. pension liability, by contributing factor, for each board structure and initial founding. He said that getting to 100 percent funding of the systems from 6/30/2005 to 6/30/2016. Senator McDaniel said the current funding is somewhat independent of the changing Reviewing slides 16-22, he explained the level situation has resulted from decisions made at composition between Tiers 1, 2, 3 over time. Tier percent of payroll method (actuarial back- every level, especially by poor performance 3 will help make the accrual of normal cost and loading). He said that underfunding the ARC of the actuaries, in his opinion. Mr. Reese said additional service cost more manageable. was the largest factor in the increase in unfunded that the audit recommends the establishment Responding to Senator Higdon, Mr. Nadol liability for KERS-NH. Both CERS plans funded of best practices. The recommendations of confirmed that when the KRS board recently the ARC during that period. The major cause actuaries need to meet certain standards of changed the payroll growth assumption from for the increase in those plans was actuarial practice, and boards may or may not accept the four percent to zero, that effectively moved the backloading, or negative amortization. In each of recommendations. plans to a level dollar approach. From PFM’s the 11 years, the interest on the unfunded liability Discussion followed regarding the meaning perspective, it was a prudent move that more for CERS-NH exceeded the ARC amortization of “interest on the unfunded liability.” Senator realistically funds the plans in line with actual payment. Over the period the aggregate amount McDaniel said he prefers to call it “discounted experience. Senator Higdon said that about was $1.3 billion. rate of return,” and Mr. Reese agreed that the a year ago KRS actuaries indicated that the For TRS, actuarial back-loading— terms are interchangeable. unfunded liability was caused by legislative attributable in part to the open/rolling Senator Higdon asked how increased benefit underfunding (20 percent), unfunded COLAs/ amortization period that was annually reset until factors for KERS-NH affected the liability. Mr. cost-of-living adjustments (15 percent), faulty 2014—was the primary factor in the unfunded Reese said that those updated multipliers were in THE KENTUCKY GENERAL ASSEMBLY 31 effect prior to the period covered by the audit. its life cycle. The recurring negative cash flows is projected to remain solvent, even with zero The only benefit change occurring during the of the magnitude projected for TRS indicate percent payroll growth. Other alternate scenarios review period is the COLA. If the review had the level of risk and stress associated with a project insolvency for KERS-NH in FY 2022, FY looked as far back as 20 years, an additional plan that is 55 percent funded. The negative 2028, FY2033, or FY 2037. Mr. Chilton explained component would have been included for plan cash flow would be greater in years where the that insolvency is defined as entire depletion of changes. earnings assumption is not met, payroll growth assets. Representative Linder asked how much is lower than assumed, and authorized funding Mr. McNeeley said that TRS is more stable emphasis should be put on investment levels are lower than the actuarially determined but also pressured. If the recommended employer performance during the past 10 years, in view contribution (ADC). contribution levels are fully achieved in FY 2019 of the 2008 great recession. Referring to slide 33, Mr. McNeeley said that public plans and thereafter—which would be the first time Mr. Reese said they were concerned about the continue to use the expected long-term rate of since FY 2004—and assets earn the revised asset limited look-back period of 11 years relative to return on investments when discounting the allocation return of 6.0 percent per year, the plan market performance. That is why they included value of future benefit payments to a present is projected to remain solvent. It could become a distinction between how investment return value liability figure (the discount rate). The size insolvent if the employer contribution reverts to compared to market and how the market of the liability and annual funding requirement pre-FY 2017 levels. The plan is also projected to compared to a much longer term. Slide 33 are therefore sensitive to the discount rate and become insolvent if the average of the FY 2016- illustrates how market downturns would increase other actuarial and economic assumptions. 18 budgeted amounts is maintained in future TRS future funding requirements. Mr. Nadol Private plans subject to the federal Employee years and payroll growth is initially a reduced 1 said that, hopefully, the 2008 recession was an Retirement Income Security Act (ERISA) percent to 2.5 percent per year. If assets earn the outlier, but the systems need to be mindful of typically discount liabilities for both reporting revised asset allocation return of 6.0 percent per risk exposure. Recovery has been tepid during and funding purposes, based on high-quality year, insolvency is estimated to occur in FY 2044; many of the years since the great recession, and corporate bond rates like the Corporate Bond insolvency is estimated to occur in FY 2036 if the capital market projections for investment return Index. The practice in public plans is to continue plan earns the Corporate Bond Index rate. are lower than most mainstream projections. to use the earnings rate for funding purposes. In addition to the solvency analysis, the Professional forecasts for the next decade are For reporting purposes, GASB statements 67 audit has modeled the impact of an immediate relatively modest. and 68—recently implemented by state and local economic downturn on the ADC funding Mr. McNeeley reviewed Cash Flows and pension plans and plan sponsors—adopt a hybrid requirement. Market downturns would increase Solvency Analysis (slides 24-33). From FY 2006 of the traditional earnings-based assumption future funding requirements. The asset base to FY 2016, KERS-NH had a negative cash flow and bond-based assumption. The FY 2015 and of KERS-NH is now so low that deviations of $4.2 billion, and TRS had a negative cash flow FY 2016 TRS and Judicial Form Retirement would not have a large, short-term impact on of $2.2 billion. (Cash flows excludes investment System (JFRS) reports used such a blended rate. contribution requirements or solvency. A market earnings.) The extent and severity of cash flow is a KRS is revising its asset allocation approach return of one standard deviation lower than concern. Only the County Employees Retirement to reflect the varying degrees of stress and the return assumption for TRS would raise the System-hazardous (CERS-H) plan had positive diminished assets of the plans. The audit ADC by $104 million, a 9 percent increase, after cash flow. Over the time period KERS-NH and report includes alternate return assumptions smoothing the losses. TRS had to routinely liquidate assets in order for a 10-year investment horizon and two Senator Bowen asked about sensitivity to pay benefits. KERS-NH and the State Police levels of increased liquidity positions generally studies and whether it would be beneficial to do Retirement System (SPRS) had a decline in net consistent with updated KRS policy. Under experience studies more often than every five position (net assets) during the time period. these assumptions, expected return for the most years. Mr. Reese said that five-year experience Although the net position of TRS and CERS-NH stressed systems is 5.1 percent and 6.0 percent for studies are in line with most states and provide increased in total, each had declines in net assets the less stressed systems. These assumptions were more reliability for resetting future assumptions. in five of the years. The increases in net position based on PFM Asset Management’s expected Sensitivity analysis is helpful to gauge which for KERS-H, CERS-NH, CERS-H, and TRS were 10-year return for a portfolio with increased assumptions are most important and ensure that significantly smaller than the offsetting increases allocation to short-term bonds and cash. These the decision makers have full awareness of those in liabilities. rates also apply to TRS and JFRS. assumptions. Based on the June 30, 2016, valuation and The KERS-NH and TRS plans were tested When Senator Parrett asked about the assumptions, KERS-NH is projected to continue under several alternate assumptions and potential effect of another great recession, Mr. to have negative cash flows until benefit payments scenarios to identify whether the plans would Reese said that would be a rare event. With a begin to level off as the amortization schedule be projected to remain solvent. The additional minus 28-30 percent return, the insolvency continues to increase. TRS is also projected to amounts appropriated for KERS-NH have had horizon would be foreshortened by several experience negative annual cash flows based on a significant benefit. If future funding of KERS- years. Mr. Nadol said a one-time quick fix cannot the assumptions, contribution requirements, NH reverted to the prior pre-FY 2016 pattern of solve all of the challenges. What is needed is a and amortization schedule of the June 30, 2016, funding roughly 60 percent of the ARC, assuming long-term commitment to make structural valuation. It is not uncommon for a mature zero percent payroll growth, the plan is projected adjustments to support the plans. system with a high retiree/active ratio to operate to become insolvent within four years, even with Mr. Nadol discussed benefits with negative cash flows and rely on investment 7.5 percent investment return. benchmarking. He said traditional defined earnings to offset changes in net position. The amounts appropriated in the FY 2017- benefit pensions are increasingly rare in the The National Association of State Retirement 2018 budget were significantly higher than the private sector, where a 401k style approach Administrators (NASRA) has commented that ADC. If these amounts are maintained and the is most prevalent. The Commonwealth has investment earnings will be the largest source of revised asset allocation or corporate bond index made significant strides toward making retiree revenues or inflows to a retirement system over rates are achieved every year on average, the plan health care more affordable, but that is a benefit

32 2017 Interim LEGISLATIVE RECORD hardly seen now in private industry. A recent favorable retirement eligibility. They are eligible been very positive. third-party study found that, for comparable to retire at age 55 with 27 years of service. In Concluding the presentation, Mr. Nadol positions, state employees in Kentucky have many states the benefits would be materially said that as work is underway to develop somewhat lower wages than their private sector reduced for retiring that early. Retiree benefits options and recommendations for Report #3, counterparts within the state but, because of in the KRS plans have a higher value than the it is important to note the difficult reality that the cost of benefits, have a higher overall total benefits offered by most of Kentucky’s largest the majority of accrued liability in the largest compensation cost. That is problematic. As private sector employers. Compared to the other systems is associated with members who are pension contribution requirements continue states, the TRS plan provides an above-average already retired or inactive (slide 51). Past reforms to rise and erode available resources for wage benefit, particularly through the employee so far have only addressed a small percentage increases, state and local governments will contribution—which is below average—and of the total challenge. Report #3 will present become less competitive. Retirement benefits the relatively generous retirement eligibility ideas and alternatives for improving the long- matter, of course, but when trying to get the provisions. Kentucky teachers may retire at any term security, sustainability, and affordability of best talent to meet the Commonwealth’s needs, age with 27 years of service, at age 60 with five Kentucky’s retiree benefit programs. salaries get more attention than retirement years, and at age 55 with 5-10 years (depending Mr. Nadol said they welcome input from benefits for most entrants into the work force. on the date of hire). The Illinois and Ohio plans everyone involved and are hopeful to learn Growth in benefit costs squeezes out not only do not even offer an unreduced benefit for from and incorporate the best ideas to help resources that serve the public but also resources retirement at age 62 with 30 years of service. A make their work better and more useful. Areas to develop and offer competitive pay packages comparison of Kentucky with 13 other states to be addressed include actuarial method and for state and local government workers. shows that Kentucky teachers earn full benefits assumptions, investment practices and approach, Mr. Nadol said that the full report early. If hired at age 22 they can retire with an benefit levels and risk exposure, and funding includes extensive benefit benchmarkingunreduced benefit at age 49; if hired at age 27, policy. In closing he stated that it has become information. The report includes information they can retire at age 54. This is well below the clear that the status quo is not sustainable. on past and current benefit provisions for the average of the states reviewed. Representative Kay expressed concern Kentucky systems, detailed in Appendix A. For about the high fees that have been charged comparison, it also includes information for Mr. Nadol discussed investment analysis. by investment managers and asked whether 20 other state systems for civilians, state police, He said KRS investment performance has lagged those fees are considered when determining teachers, and judges. This detailed information not only in the investment return assumptions investment return. Mr. Nadol said that the full is contained in Appendix B. The 20 states include but because of market performance as a whole. Report #2 includes some analysis of fees, and those contiguous to Kentucky, other states where Allocations to asset categories has led to they are also addressed to some degree in Report teachers are not in the Social Security system, underperformance as well as overall benchmark #1. In percentage terms, fees are not a big driver and other regional competitors or states with performance. As indicated on slide 44, KRS total in the underfunding. Of course, it is important relevant benefit provisions. Slide 37 summarizes performance falls in the bottom quartile for all to be mindful of those dollars, especially when plan structures. State civilian plans in the 20 other trailing periods provided and significantly lags the considering the current condition of the funds. states include 15 defined benefit (DB) plans for investment return assumption. Performance at Senator McDaniel spoke about the enormity new hires, four hybrid DB/defined contribution the asset class level has generally been in line with of the problem and said that whatever has to be (DC) plans, and one DC plan. The KERS- the relevant index for longer periods (10+ years), done will be difficult and will require action at NH employee contribution is at the median with the exception of real estate, indicating that every level. He thanked the speakers for a good for the plans reviewed. The review reflects a asset allocation rather than manager selection report, their guidance, and their contribution to trend toward cost containment. There is still a has been the primary detractor of performance. today’s meeting. prevalence of defined benefit plans for general (A detailed analysis of the investment allocation, Senator Schroder said today’s presentation state worker plans but also a trend to restructure performance, and risk profile of each of the has been helpful. He asked for an opinion about those to greater affordability and sustainability, Commonwealth’s retirement systems is included TRS investment levels in international equity with movement more toward hybrid or even in the Appendix to full Report 2.) He remarked and fixed income (slide 48). Mr. Nadol said he defined contribution approaches. State teacher that turnover in KRS investment leadership has believes the 19 percent increase in international plans in the states that were studied include 17 been a factor, but his team has observed that equity is relatively consistent with the national DB plans for new hires and three hybrid DB/DC the new investment committee members are median, but he is not comfortable discussing plans. The TRS employee contribution is below thoughtful and knowledgeable and laser-focused specifics regarding the quoted percentages. They the median for the plans in states where teachers on the issues. were compiled by the registered investment are not enrolled in Social Security. TRS also has Mr. Nadol said the TRS pension fund advisers, but he would be happy to follow up one of the earliest retirement ages observed in underperformed relative to market from a longer with anyone who has questions about details of the benchmark review. term perspective, but over the past decade TRS has the investment analysis. Mr. Reese reviewed the value of KRS and been a top quartile performer relative to market. Representative Miller said it appears to him TRS retiree benefits, compared with those of The system has not met actuarial assumptions from slides 9 and 10 that the difference between seven other states—Illinois, Indiana, Missouri, because the market has not generated returns as the level dollar and percentage of payroll Ohio, Tennessee, Virginia, and West Virginia strong as were seen in the actuarial evaluation. funding methods would require generation (slides 38-42). The KERS-NH Tier 3 cash Since adopting a more flexible approach to of an additional $700 million per year for the balance plan continues to provide a competitive investment categories, including international foreseeable future. Mr. Chilton said he believes benefit that is in line with the comparative states. equities, TRS has done well and hopefully will that amount is in the “ballpark” of the increase The KERS-NH Tier 1 plan accounts for most continue to do so. The plan has become more that would be needed in the General Fund. of the unfunded liability. Current employees in aggressive, with increasing levels of risk over Responding to Ms. Mattingly, Mr. Nadol that plan receive an above-average benefit and time. From this perspective the last decade has clarified how the negative numbers in the tables THE KENTUCKY GENERAL ASSEMBLY 33 for KERS-NH relate to the assumptions revised The Government Contract Reviewselected for further review by members of the recently by the KRS board and those that were Committee met on Tuesday, June 13, 2017, at committee. Senator Wise seconded the motion, quantified under the old assumptions. 1:00 PM, in Room 131 of the Capitol Annex. which passed without objection. Responding to questions from Representative Lee, Chair, called the meeting to Representative Fleming about factors affecting order, and the secretary called the roll. A motion was made by Senator Hornback poor investment performance by KRS, Mr. Nadol Present were: to consider as reviewed the Correction List. said that changes in leadership and investment Members: Representative Stan Lee, Co- Senator Wise seconded the motion, which staff led to shifts in the approach to investment Chair; Senator Max Wise, Co-Chair; Julian M. passed without objection. allocation. Turnover and transition and lack of Carroll, and Paul Hornback; Representatives a consistent investment philosophy had eroded Dennis Horlander, and Diane St. Onge. overall performance. It is the observation of Guests: Scott Brinkman, Adria Johnson, THE FOLLOWING PERSONAL his team and their colleagues with investment Stacy Phillips, Stephanie Craycraft, Stacy Cain, SERVICE CONTRACTS WERE REVIEWED expertise that the addition to the investment Amy Pastramo, Doug LeFevers, David Gordon, WITHOUT OBJECTION: committee of individuals with significant Roger Duvall, Jackie Cecil, Brenda Nolan, financial and investment experience has been Charlie Harman, Brigette Stacy, Bill Harris, and ADMINISTRATIVE OFFICE OF THE a positive step. Also, elements of enacted 2017 Bill Thro. COURTS legislation have provided for better oversight and LRC Staff: Kim Eisner, Jarrod Schmidt, and Landrum and Shouse, 1700002671. more transparency. Kim Smith. AUDITOR OF PUBLIC ACCOUNTS, Senator Bowen thanked the speakers for an A motion was made by Senator Wise to OFFICE OF THE excellent and informative report. He said that approve Minutes of the May 2017, meeting of the York, Neel & Associates, LLP, 1700001792; often the legislature has taken the brunt of the committee. Representative St. Onge seconded Dean, Dorton, Allen, Ford, PLLC, 1700001943. blame but had to act on the information that the motion, which passed without objection. was available. It is time to move beyond toward DEPARTMENT OF INSURANCE A motion was made by Senator Hornback resolution, and he invited input from PPOB’s Dinsmore & Shohl, LLP, 1700001319. constituents and those in attendance. Hopefully, to consider as reviewed the Personal Service Report #3 will be presented at the June meeting, Contract List, with exception of those items DEPARTMENT OF WORKPLACE since PPOB typically does not meet in July. Mr. selected for further review by members of the STANDARDS Chilton said they will target the June 26 date. committee. Senator Wise seconded the motion, Department of Corrections, 1700002100; They are currently working with calculations which passed without objection. Amteck, LLC, 1700002101; Interapt, LLC, 1700002102. provided by Cavanaugh Macdonald regarding A motion was made by Senator Hornback the potential effect of future changes to the to consider as reviewed the Personal Service EASTERN KENTUCKY UNIVERSITY benefits, both prospectively and retrospectively. Contract Amendment List, with exception Earl Alexander, 18-116; Mark French - It is also important to get feedback and input of those items selected for further review by Freelance Art Direction & Graphic Design, from all stakeholders, including employees and members of the committee. Senator Wise 18-137; BaldBaldwin Creative and Company, pensioners. seconded the motion, which passed without LLC d/b/a B63, 18-138; Multi, 18-147; Multi, Mr. Chilton said that last week the KRS objection. 18-149; Multi, 18-150; Multi, 18-151; Multi, 18- board did not make any decision regarding 153; Multi, 18-154; Multi, 18-155; Multi, 18-157; CERS assumptions. He understands that TRS A motion was made by Senator Hornback Multi, 18-158. will consider assumptions at the August board to consider as reviewed the Memoranda of meeting. He is not aware of any consideration Agreement List, with exception of those items EDUCATION, DEPARTMENT OF that the other two systems might undertake. The selected for further review by members of the TCB Consulting, LLC, 1700002283. focus of the KRS board last week was primarily committee. Senator Wise seconded the motion, on KERS. The context of the discussion today has which passed without objection. EDUCATIONAL TELEVISION, been somewhat different, since the focus was on KENTUCKY all the systems. He pointed out that the percent A motion was made by Senator Hornback Carla Gover Barnett, 1700002111. of payroll funding method is required in statute, to consider as reviewed the Memoranda of GOVERNOR, OFFICE OF THE and changing to a level dollar calculation would Agreement Amendment List, with exception Wyatt, Tarrant & Combs, LLP, 1700002263. require statutory change. He thanked PPOB of those items selected for further review by members of the committee. Senator Wise members for hearing the report and stated that INFRASTRUCTURE AUTHORITY seconded the motion, which passed without there is no happy way to solve the problem. It will Blue & County, LLC, 1700002107. be painful for everyone; therefore it is necessary objection. KENTUCKY COMMUNITY & to be thoughtful in suggesting the way forward. A motion was made by Senator Hornback TECHNICAL COLLEGE SYSTEM Business concluded and the meeting was to consider as reviewed the Film Tax Incentive Franklin Covey Client Sales, Inc., 701; adjourned at 3:41 p.m. List, with exception of those items selected for Horizon Group International, 702. further review by members of the committee. Government Contract Review Senator Wise seconded the motion, which KENTUCKY HOUSING CORPORATION Committee passed without objection. Hanna Resource Group, 2018-36; Goldberg Committee Minutes Simpson, LLC, 2018-37; Stierle and Rettig, A motion was made by Senator Hornback June 13, 2017 PLLC, 2018-38; Septtimous Taylor, PSC, 2018- to consider as reviewed the Film Tax Incentive Call to Order and Roll Call 39; McBrayer, McGinnis, Leslie & Kirkland, Amendment List, with exception of those items

34 2017 Interim LEGISLATIVE RECORD PLLC, 2018-40. VisionPoint Marketing, K17-243; APAX Carter Barnhart, 1500001025; Omni Architects, Software, K17-244; Dixon Hughes Goodman, 1500001238; Bender Associates Architects, KENTUCKY LOTTERY CORPORATION LLP, K17-245; Trifecta Media, LLC, K17-246; 1500001577; CMTA, Inc., 1500002374; Omni PDT Communications, Ltd., 18-10-027; Wyatt, Tarrant & Combs, LLC, K18-101; Sturgill, Architects, C-05256615. Software Information Systems, LLC, 18-10-053; Turner, Barker & Moloney, PLLC, K18-102; Gaming Laboratories International, LLC, 18-14- Stites & Harbison, PLLC, K18-103; Kriz, Jenkins, JUVENILE JUSTICE, DEPARTMENT OF 035; Clark Schaefer Consulting, Inc., 18-15-041; Prewitt & Jones, K18-104; Stidham & Associates, G4s Youth Services, LLC, 1600003266. Microsoft Corporation, 18-17-003. K18-105; Stoll Keenon Ogden, K18-107; Steptoe KENTUCKY COMMUNITY & MOREHEAD STATE UNIVERSITY & Johnson, PLLC, K18-108; Berkeley Research TECHNICAL COLLEGE SYSTEM Brailsford & Dunlavey, Inc., 17-053; Dr. Group, K18-109; Jeffries & Corigliano, LLP, K18- Sierra-Cedar Inc., 686; Summit 7 Systems, Brenda Wilburn, 18-001; Dean Dorton Allen 110; Nichols Walter, PLLC, K18-111. Inc., 687; eBusiness Advantage, Inc., 689. Ford, PLLC, 18-004. VETERANS AFFAIRS, DEPARTMENT OF KENTUCKY HOUSING CORPORATION NURSING, BOARD OF Symphony Diagnostics Services No.1, LLC, Stierle and Rettig, PLLC, Stierle FY2017:7. Landrum and Shouse, 1700002146. 1600001368-1. KENTUCKY STATE UNIVERSITY OFFICE OF INSPECTOR GENERAL WESTERN KENTUCKY UNIVERSITY Johnson Bearse, LLP, 17-02. Betty J. Branham, 1700001626. Multi, 171802; Community Action of Southern Kentucky, Inc., 171803. MOREHEAD STATE UNIVERSITY PERSONNEL-OFFICE OF THE Dr. Brenda Wilburn, 17-011. SECRETARY NORTHERN KENTUCKY UNIVERSITY Reed, Weitkamp, Schell & Vice, LLC, THE FOLLOWING PERSONAL SERVICE Walter DeSocio, 2017-170. 1700001563. AMENDMENTS WERE REVIEWED WITHOUT OBJECTION: POST SECONDARY EDUCATION, TRANSPORTATION CABINET COUNCIL ON GRW Engineers, Inc., 0800007043; CDP ALCOHOL AND DRUG COUNSELORS, Blue & County, LLC, 1700001711. Engineers, Inc., 1400002855; Strand Associates, BOARD OF CERTIFICATION OF Inc., 1500001578; St. Elizabeth Business STATE POLICE, DEPARTMENT OF Marisa Neal, 1600003514. Health, 1600002772; Logan & Gaines, PLLC, Terry Alexander, 1700002147; Johnny P. 1600003725; Tooms, Dunaway & Webster, PLLC, ATTORNEY GENERAL, OFFICE OF THE Begley, 1700002148; Donald R. Bowman Jr., 1700001152. Tichenor and Associates, 1700001046. 1700002149; Gregory L. Dukes, 1700002153; UNIVERSITY OF KENTUCKY Kelley Farris, 1700002155; Kevin B. Guier, AUDITOR OF PUBLIC ACCOUNTS, Staggs & Fisher Engineers, A161070; 1700002156; James Goble, 1700002157; Billy OFFICE OF THE Sherman Carter Barnhart, A161180; Ross Tarrant P. Hall, 1700002159; Isaiah Hill, 1700002161; Teddy Michael Prater CPA, PLLC, Architects, Inc., A171130; Commonwealth Darrell Hutchison, 1700002162; Dwayne Ison, 1600003522; RFH, PLLC, 1700000694; Tichenor Economic Partners, K17-129; McMasters Keith 1700002163; David R. James, 1700002164; and Associates, 1700000695. Joseph R. Johnson, 1700002166; Bruce Kelley, Butler, Inc., K17-170; Benson Law Offices, K17- 1700002167; Jerry M. Knight II, 1700002169; DEPARTMENT FOR COMMUNITY 174; Reminger Co. LPA, K17-175; The Sanchez David Lassiter, 1700002170; Ronald E. Long II, BASED SERVICES Law Firm, P.C., K17-176; Dinsmore & Shohl, 1700002172; Steven Todd Maggard, 1700002173; Dana N. Christensen, 1700001478. K17-179; Fulkerson, Kinkel & Marrs, K17-180; James A. Mitchell, 1700002174; Roy Pace Jr., Walther, Gay & Mack, PLC, K17-181. DEPARTMENT FOR INCOME SUPPORT 1700002176; Donald L. Perry, 1700002177; John Multi, 1600002427. UNIVERSITY OF LOUISVILLE L. Pratt, 1700002179; Michael Ray, 1700002180; Aon, 17-005; Pence & Ogburn, PLLC, 17- Jack Riley, 1700002181; Millard R. Root III, DEPARTMENT FOR MEDICAID 032. 1700002183; Trevor A. Scott, 1700002184; SERVICES Todd C. Simon, 1700002185; Harry J. Sowders, Milliman, Inc., 1700001102. WESTERN KENTUCKY UNIVERSITY 1700002186; Steve Thomas, 1700002188; James Thompson & Associates, 161716. Don Trosper, 1700002189; Steven Walker, DEPARTMENT FOR PUBLIC HEALTH 1700002190; Michael A. Wolfe, 1700002191; Multi, 1600002667; Multi, 1600002737; WORKFORCE INVESTMENT, OFFICE Robert Curtis Mouser, 1700002193; Thomas R. Thomas Joseph Hickey, 1700000375. OF Walsh, 1700002196; Stuart Recke, 1700002198; Maher & Maher, 1600002624; John EDUCATION, DEPARTMENT OF Kevin Rogers, 1700002199. Christopher Ingram, 1700001710. John Thompson, 1600001317; JKM TRANSPORTATION CABINET Training, Inc., 1600001569; Gail P. Binder, Michael Baker International, Inc., 1600001585; John Ellis, 1600002307; ACT, THE FOLLOWING MEMORANDA 1700001989; Neel Schaffer, Inc., 1700001990; 1600002317. OF AGREEMENTS WERE REVIEWED Aecom Technical Services, Inc., 1700002293; FINANCE AND ADMINISTRATION WITHOUT OBJECTION: Burgess and Niple, Inc., 1700002659. CABINET - DIVISION OF ENGINEERING AGRICULTURE, DEPARTMENT OF UNIVERSITY OF KENTUCKY Beaver Creek Hydrology, LLC, 1000000143; Kentucky Association of Food Banks, Inc., CMTA, Inc., A171140; Bell Engineering, Stantec Consulting Services, Inc., 1400000625; 1700001942. A171190; VisionPoint Media, Inc. d/b/a EOP Architects, PSC, 1400000675; Sherman THE KENTUCKY GENERAL ASSEMBLY 35 CABINET FOR HEALTH AND FAMILY of Education, 1700001638; Montgomery County Public Library, 1700001810; Madison County SERVICES Board of Education, 1700001640; Owensboro Public Library, 1700001811; William B. Harlan Office of Procurement Services, 1700001928. Independent Board of Education, 1700001642; Memorial Library, 1700001816; Russell County Christian County Board of Education, Public Library, 1700001817. CORRECTIONS, DEPARTMENT OF 1700001646; Montgomery County Board of Breckinridge County Jail, 1700001344; Education, 1700001647; Trigg County Board of MEDICAL LICENSURE, BOARD OF Christian County Jail, 1700001348; Daviess Education, 1700001654; Ohio Valley Education Kentucky Physicians Health Foundation, County Detention Center, 1700001349; Fulton Cooperative, 1700001655; Pulaski County Board Inc., 1700001735. County Jail, 1700001350; Grayson County of Education, 1700001656; Scott County Board of Jailer, 1700001352; Henderson County Jail, MILITARY AFFAIRS, DEPARTMENT OF Education, 1700001662; Madison County Board Kentucky Division of Water, 1700001419. 1700001354; Marion County Jail, 1700001357; of Education, 1700001665; Lincoln County Pike County Detention Center, 1700001359; Board of Education, 1700001666; Anderson OFFICE OF THE GOVERNOR, Shelby County Detention Center, 1700001456; County Board of Education, 1700001730; DEPARTMENT FOR LOCAL GOVERNMENT Three Forks Regional Jail, 1700001457; Hardin Dayton Independent Schools, 1700001734; Knox County Fiscal Court, 1700001960; County Jail, 1700001458; Fayette County Adair County Board of Education, 1700001738; City of Morehead, 1700001968; City of Guthrie, Detention Center, 1700001461; Kenton County Monroe County Board of Education, 1700001996; Muhlenberg County Fiscal Court, Detention Center, 1700001462; Laurel County 1700001739; Henderson County Board of 1700002109; City of Prestonsburg, 1700002141; Jail, 1700001466; Montgomery County Jail, Education, 1700001740; Hopkins County Board City of Gamaliel, 1700002375; Todd County 1700001467; Boyd County Detention Center, of Education, 1700001741; Madison County Fiscal Court, 1700002444. 1700001788; Oldham County Public Library, Board of Education, 1700001742; Science Hill 1700001988; Kenton County Jail, 1700001999; Independent School, 1700001743; Boyle County PARKS, DEPARTMENT OF Marion County Jail, 1700002007. Board of Education, 1700001744; Fayette County Breaks Interstate Parks Commission, 1700001435. DEPARTMENT FOR ENVIRONMENTAL Board of Education, 1700001745; Kentucky PROTECTION Valley Education, 1700001747; Department of TRANSPORTATION CABINET Sanitation District 1, 1700001586; Oldham Agriculture, 1700001748; Franklin County Board Kentucky Transportation Center, County Fiscal Court, 1700001832. of Education, 1700001749; Fayette County Board 1700001672; Elizabethtown Community and of Education, 1700001751; Scott County Board of Technical College, 1700001675; National DEPARTMENT FOR FAMILY RESOURCE Education, 1700001754; Owen County Board of Institute of Governmental Purchasing, Inc., CENTERS & VOLUNTEER SERVICES Education, 1700001755; Fayette County Board of 1700001794. Multi, 1700001830. Education, 1700001756; Franklin County Board of Education, 1700001760; Estill County Board WORKFORCE INVESTMENT, OFFICE EDUCATION PROFESSIONAL of Education, 1700001765; Hopkins County OF STANDARDS BOARD Board of Education, 1700001766; Newport UK Research Foundation, 1700001793. Washington County Board of Education, Independent Board of Education, 1700001770; 1700001890. Scott County Board of Education, 1700001821; EDUCATION, DEPARTMENT OF Bath County Board of Education, 1700001823; THE FOLLOWING MEMORANDA Breathitt County Board of Education, Scott County Board of Education, 1700001825; OF AGREEMENT AMENDMENTS WERE 1700001592; Hart County Board of Education, University of Kentucky Research Foundation, REVIEWED WITHOUT OBJECTION: 1700001596; Kentucky Valley Education, 1700001850; University of Kentucky Research 1700001598; Glasgow Board of Education, Foundation, 1700001910; Madison County ADMINISTRATIVE OFFICE OF THE 1700001599; Kentucky Valley Education, Board of Education, 1700002178. COURTS Adanta Group, 1600003933; Cumberland 1700001600; Green County Board of Education, JUVENILE JUSTICE, DEPARTMENT OF River Behavioral Health, Inc., 1600003939; Four 1700001603; Knox County Board of Education, Eastern Kentucky University, 1700001970; Rivers Behavioral Health Corporate Office, 1700001605; Henderson County Board of Eastern Kentucky University, 1700002136. Education, 1700001606; Leslie County Board 1600003940. of Education, 1700001607; Carter County KENTUCKY HOUSING CORPORATION AGRICULTURE, DEPARTMENT OF Board of Education, 1700001610; Leslie County University of Kentucky Research Multi, 1700001659; Multi, 1700001857. Board of Education, 1700001615; Scott County Foundation, KHC-MOU. Board of Education, 1700001616; Hopkins COMMISSION FOR CHILDREN WITH KENTUCKY RIVER AUTHORITY County Board of Education, 1700001618; Ft. SPECIAL HEALTH CARE NEEDS US Department of Interior Geological Thomas Independent Board of Education, Home of the Innocents, 1600002018; River Survey, 1700002420; University of Kentucky 1700001619; Pulaski County Board of Valley Behavioral Health, 1600002109. Education, 1700001621; Madison County Board Research Foundation, 1700002432. DEPARTMENT FOR AGING & of Education, 1700001622; Woodford County LIBRARIES & ARCHIVES, DEPARTMENT INDEPENDENT LIVING Board of Education, 1700001628; Newport FOR NKCES, 1600001933. Independent Board of Education, 1700001629; Elliott County Fiscal Court, 1700001445; Spencer County Board of Education, Lee County Public Library, 1700001481; Corbin DEPARTMENT FOR BEHAVIORAL 1700001630; Corbin Independent Board of Public Library, 1700001800; Henry County HEALTH, DEVELOPMENTAL AND Education, 1700001631; Hopkins County Board Public Library, 1700001804; Louisville Free INTELLECTUAL DISABILITIES of Education, 1700001632; Clay County Board Public Library, 1700001807; Larue County University of Kentucky, 1600001658; of Education, 1700001635; Pike County Board

36 2017 Interim LEGISLATIVE RECORD Chrysalis House, Inc., 1700000516; Transitions, Education, 1600002893; Fayette County Board THE FOLLOWING FILM TAX Inc., 1700000517; Lifeskills Industries, of Education, 1600002895; Glasgow Board of INCENTIVES WERE REVIEWED WITHOUT 1700000520; Seven Counties Services, Inc., Education, 1600002897; Greenup County Board OBJECTION: 1700000521. of Education, 1600002901; Henderson County Board of Education, 1600002902; Letcher TOURISM DEVELOPMENT CABINET DEPARTMENT FOR COMMUNITY County Board of Education, 1600002904; Runaway Production, LLC, 1700001559; BASED SERVICES Lincoln County Board of Education, Loos Change Films, LLC, 1700002066; Mail Audubon Area Community Services, 1600002905; Livingston County Board of Order Monster Movie, LLC, 1700002081; Post 1600001911; Big Sandy Area Development Education, 1600002906; McCracken County Time Audiovisual Services, Inc., 1700002274; District, 1600001912; Central Kentucky CAC, Board of Education, 1600002908; Monroe Red River the Film, LLC, 1700002275; Kitestring, Inc., 1600001913; Home of the Innocents, County Board of Education, 1600002909; Inc., 1700002395; Mountain Tech Media, LLC, 1600001922; Kentucky Association of Child Newport Independent Board of Education, 1700002563. Advocacy Centers, 1700001567. 1600002912; Owensboro Independent Board of DEPARTMENT FOR FAMILY RESOURCE Education, 1600002914; Spencer County Board CENTERS & VOLUNTEER SERVICES of Education, 1600002916; Wayne County Board THE FOLLOWING FILM TAX Northern Kentucky Cooperative for of Education, 1600002917; Whitley County INCENTIVE AMENDMENTS WERE Educational Services, Inc., 1600002777; Multi, Board of Education, 1600002918; Adair County REVIEWED WITHOUT OBJECTION: 1700000014. Board of Education, 1600002941; Harlan County Board of Education, 1600003060; Ludlow TOURISM DEVELOPMENT CABINET DEPARTMENT FOR MEDICAID Independent Board of Education, 1600003064; Post Time Audiovisual Services, Inc., SERVICES Pendleton County Board of Education, 1700002274. Kentucky Board of Nursing, 1600000319; 1600003066; Newport Independent Board of Multi, 1600000320; Department of Education, Education, 1600003182; Center for Assessment, 1600000322. 1700000080; Campbell County Board of THE FOLLOWING PERSONAL Education, 1700000276; Christian County Board DEPARTMENT FOR PUBLIC HEALTH SERVICE CONTRACTS WERE SELECTED of Education, 1700000277; Daviess County Board FOR FURTHER REVIEW: Kentucky Pharmacy Education and of Education, 1700000278; Jessamine County Research Foundation, Inc., 1600002278. Board of Education, 1700000282; Warren County CABINET FOR HEALTH AND FAMILY EDUCATION, DEPARTMENT OF Board of Education, 1700000287; Western SERVICES Ballard County Board of Education, Kentucky University Research Foundation, Red Buffalo Ventures, LLC, 1700002106. 1600002825; Bourbon County Board of 1700000386; Hazard Independent Board of Scott Brinkman, Adria Johnson, and Stacy Education, 1600002836; Boyd County Board of Education, 1700001535. Phillips discussed the contract with the Education, 1600002839; Boys and Girls Club, OFFICE OF INSPECTOR GENERAL committee. A motion was made by Senator Inc., 1600002843; Breathitt County Board Kentucky State Police, 1600002472. Wise to consider the contract as reviewed. of Education, 1600002847; Burgin Board of Representative St. Onge seconded the motion, Education, 1600002848; Russell County Board OFFICE OF THE GOVERNOR, which passed with Representative Horlander of Education, 1600002853; Fulton Independent DEPARTMENT FOR LOCAL GOVERNMENT voting to pass. Board of Education, 1600002856; Knott County Martin County Fiscal Court, 1700000666; Board of Education, 1600002859; Paducah Floyd County Fiscal Court, 1700000707; Leslie DEPARTMENT FOR BEHAVIORAL Independent Board of Education, 1600002861; County Fiscal Court, 1700001324; Floyd County HEALTH, DEVELOPMENTAL AND Todd County Board of Education, 1600002862; Fiscal Court, 1700001700. INTELLECTUAL DISABILITIES Wolfe County Board of Education, 1600002864; The Chyron Group, LLC, 1700001684. Christian County Board of Education, POST SECONDARY EDUCATION, Stephanie Craycraft discussed the contract with 1600002865; Hickman County Board of COUNCIL ON the committee. A motion was made by Senator Education, 1600002866; Metcalf County Board Eastern Kentucky University, 1600000432; Wise to consider the contract as reviewed. of Education, 1600002867; Nicholas County Collaborative for Teaching, 1700000585. Representative Horlander seconded the motion, which passed. Board of Education, 1600002868; Taylor County PROPRIETARY EDUCATION, STATE Board of Education, 1600002870; Campbellsville BOARD FOR DEPARTMENT FOR INCOME SUPPORT Independent Board of Education, 1600002871; Kentucky State Police Headquarters, Joel C. Stephenson, 1700001834. Stacy Cain, Eminence Independent Board of Education, 1600002146. Amy Pastramo, and Doug LaFevers discussed 1600002872; Floyd County Board of Education, the contract with the committee. A motion was 1600002874; Somerset Independent Somerset WORKFORCE INVESTMENT, OFFICE made by Senator Wise to consider the contract as School District, 1600002877; Lighthouse OF reviewed. Senator Carroll seconded the motion, Promise, Inc., 1600002881; Bullitt County Board Kentucky Revenue Cabinet, 1600001259; which passed. of Education, 1600002883; Campbell County Eastern Kentucky C. E. P., Inc., 1600001609; Board of Education, 1600002884; Casey County American Institutes for Research, 1600001793; DEPARTMENT OF REVENUE Board of Education, 1600002887; Clinton UK Research Foundation, 1600002135; Billy Whitaker, 1700002357. David Gordon County Board of Education, 1600002888; Corbin University of Kentucky College of Education, discussed the contract with the committee. Independent Board of Education, 1600002890; 1600002142; Greater Louisville Workforce A motion was made by Senator Hornback to Covington Independent Board of Education, Development Board, Inc., 1700000203. consider the contract as reviewed. Senator 1600002891; Cumberland County Board of THE KENTUCKY GENERAL ASSEMBLY 37 Carroll seconded the motion, which passed. County Board of Education, 1700002044; Hazard on Wednesday, June 7, 2017, at 10:00 AM, in Independent Board of Education, 1700002045; Room 129 of the Capitol Annex. Representative EASTERN KENTUCKY UNIVERSITY Henderson County Board of Education, Myron Dossett, Chair, called the meeting to Hardy, Carey, Chautin & Balkin, 18-136. 1700002047; Hickman County Board of order, and the secretary called the roll. Roger Duvall discussed the contract with the Education, 1700002048; Knott County Board of Present were: committee. A motion was made by Senator Education, 1700002050; Leslie County Board of Members: Senator C.B. Embry Jr., Co- Wise to consider the contract as reviewed. Education, 1700002051; Letcher County Board Chair; Representative Myron Dossett, Co-Chair; Representative St. Onge seconded the motion, of Education, 1700002052; Lincoln County Senators Stephen Meredith, Dennis Parrett, and which passed. Board of Education, 1700002054; Livingston Robin L. Webb; Representatives Phillip Pratt, KENTUCKY COMMUNITY & County Board of Education, 1700002055; Rick Rand, and Dean Schamore. TECHNICAL COLLEGE SYSTEM Ludlow Independent Board of Education, Guests: Warren Beeler, Executive Director, Myers McRae, Inc., 703; Association of 1700002057; McCracken County Board of and Bill McCloskey, Deputy Executive Director, Community College Trustees, Inc., 704. Jackie Education, 1700002059; Metcalf County Board Governor’s Office of Agricultural Policy, and Cecil and Brenda Nolan discussed the contracts of Education, 1700002061; Monroe County Kerri Verden, Program Administrator, Cabinet with the committee. A motion was made by Board of Education, 1700002062; Newport for Health and Family Services, Kentucky Representative Horlander to consider the Independent Board of Education, 1700002063; Tobacco Prevention and Cessation Program. contracts as reviewed. Senator Carroll seconded Nicholas County Board of Education, LRC Staff: Tanya Monsanto, Kelly Ludwig, the motion, which passed. 1700002064; Owensboro Independent Board of Janine Coy-Geeslin, and Susan Spoonamore, Education, 1700002065; Paducah Independent Committee Assistant. UNIVERSITY OF KENTUCKY Board of Education, 1700002068; Pendleton The May 31, 2017 minutes were approved Ware Immigration, K18-106. Bill Harris County Board of Education, 1700002069; by voice vote, without objection, upon motion and Bill Thro discussed the contract with the Russell County Board of Education, made by Senator Parrett and seconded by committee. A motion was made by Senator 1700002073; Somerset Independent School Senator Embry. Hornback to consider the contract as reviewed. District, 1700002075; Spencer County Board of Governor’s Office of Agricultural Policy Representative Horlander seconded the motion, Education, 1700002076; Taylor County Board of Warren Beeler and Bill McCloskey, which passed with Representative St. Onge Education, 1700002077; Todd County Board of Governor’s Office of Agricultural Policy, voting to pass. Education, 1700002078; Wayne County Board described currently approved projects and future of Education, 1700002079; Webster County projects under the program funding offered Board of Education, 1700002080; Whitley by the Agricultural Development Board. In THE FOLLOWING MEMORANDA County Board of Education, 1700002082. addition, they included several highlights from OF AGREEMENTS WERE SELECTED FOR Charlie Harman and Brigette Stacy discussed the Governor’s Office of Agricultural Policy FURTHER REVIEW: the contracts with the committee. A motion 2016 Annual Report. The programs highlighted was made by Senator Hornback to consider the in discussion included County Agricultural EDUCATION, DEPARTMENT OF contracts as reviewed. Senator Carroll seconded Investment Program (CAIP), Deceased Ballard County Board of Education, the motion, which passed. Farm Animal Removal Program, Shared-use 1700002003; Ashland Independent School Equipment Program, Beginning Farmer, On- EXEMPTION REQUESTS: District, 1700002004; Barren County Board of Farm Energy, Youth-Agriculture Incentives, and Education, 1700002005; Boone County Board of CABINET FOR HEALTH AND FAMILY Kentucky Agricultural Finance Corporation Education, 1700002008; Bourbon County Board SERVICES (KAFC). In May, $5 million was transferred to of Education, 1700002009; Boyd County Board The Cabinet for Health and Family KAFC accounts to be used for loans to Kentucky of Education, 1700002010; Breathitt County Services Kentucky Commission on Community farmers and agribusiness enterprises. Board of Education, 1700002013; Bullitt County Volunteerism and Services requested an After a question about the importance Board of Education, 1700002014; Burgin Board exemption from two year contracting restrictions to agriculture of the Murray State University of Education, 1700002015; Campbell County for AmeriCorps Program contracts; 100% Breathitt Veterinary Center, Mr. Beeler stated Board of Education, 1700002016; Campbellsville Federal funds. A motion was made by Senator that the diagnostic center is handling 40 percent Independent Board of Education, 1700002017; Wise to grant the request to August 31, 2018. of poultry work at the laboratory in Hopkinsville. Casey County Board of Education, 1700002019; Representative St. Onge seconded this motion, In response to a question about the lack of Christian County Board of Education, which passed without objection. inclusion of counties located east of Interstate 75 1700002020; Clinton County Board of Education, in the approved list of projects approved by the 1700002021; Cloverport Independent Board of There being no further business, the meeting Agricultural Development Board that is located Education, 1700002022; Corbin Independent adjourned at 2:33 P.M. east of Interstate 75, given that those counties Board of Education, 1700002024; Covington were tobacco-impacted areas, Mr. Beeler said that Independent Board of Education, 1700002027; Tobacco Settlement there is a lack of applications from that area and Crittenden County Board of Education, Agreement Fund Oversight it probably is in relation to the types of programs. 1700002029; Cumberland County Board of Committee Energy savings programs are available, and if Education, 1700002031; Eminence Independent Minutes of the 4th Meeting there was a demand for programs for energy Board of Education, 1700002032; Fayette County of the 2017 Interim generation, then he would take those requests to Board of Education, 1700002034; Floyd County June 7, 2017 the board. Board of Education, 1700002036; Glasgow Call to Order and Roll Call In follow-up, a member asked whether an Board of Education, 1700002039; Greenup The 4th meeting of the Tobacco Settlement application for horses would be approved, and County Board of Education, 1700002043; Harlan Agreement Fund Oversight Committee was held are there applications for beef cattle. Currently,

38 2017 Interim LEGISLATIVE RECORD there are no equine applications. A member There also is a decline in the youth smoking Ms. Verden said that policies are of central commented that the lack of applications before rate, which currently stands at one in six who importance. The state has a very low tax on the board for equine and beef is due to none smoke. The number of “100 percent Tobacco tobacco products in comparison to other states being written and that is something for the Free Schools” has increased, she reported. and research has shown there is a relationship University of Kentucky Cooperative Extension Schools have been improving their policies between taxes and smoking rates. Also raise the Service to work with county committees in to reduce the access to and normalization of purchase age to 21, she indicated, adding that developing applications. smoking. Roughly 37 percent of school districts most smokers begin smoking before age 21. Mr. McCloskey stated that some counties are currently listed among “100 percent Tobacco The chair stated the next meeting is July 5, roll over funding to the subsequent year before Free Schools,” but 22 school districts within that 2017. Documents distributed during the meeting making a grant. Also there are programs at the group still do not have policies on E-cigarettes are available with meeting material in the LRC University of Kentucky which provide cost- and vaping, according to the report. Library. There being no further business, the share dollars for limited resource producers in Ms. Verden presented a video about the meeting was adjourned. Eastern Kentucky. Also, there is also a small loan Russel County School District and the process program targeting the Appalachian counties. the school and community went through to These programs may be driving demand away develop their “100 percent Tobacco Free School from grant and loan programs available at the Policy.” GOAP. Mr. Beeler added that the CAIP program The state Retailer Underage Sales Training is done every other year. If there are ideas about Program is offered free of charge and over how to expand its usefulness to Eastern Kentucky 4,000 retailers have been trained in Kentucky Budget, counties, then those ideas can be taken to the since the program’s inception. Local grants board, the GOAP officials said. from the federal Centers for Disease Control from page 3 Mr. McCloskey highlighted several funds are used to enhance and expand local applications that came before the board. The initiatives. Those funds can be used for smoking budgeting cycle to pay for itself. approved project list including Beef Solutions, cessation, smoking awareness, and third-hand “The fact is, absent tax and pension reform, LLC, which is integrating the slaughter and smoke programs. All 61 health departments we can expect a double-digit cut in every sector processing of beef to create a consistent ground in Kentucky use the CDC national smoking of government,” said McDaniel, R-Taylor Mill. beef product to be sold to Kroger. It will be a way cessation campaign. Funds have been used for “The pension system has simply gotten into for the public to purchase verified Kentucky beef radio advertisements that describe the effects too bad of a state – been neglected far too long. and will enhance the Kentucky Proud program. of tobacco use. Ms. Verden then described the When pension and Medicaid in a decade go from Beef Solutions LLC received a grant of $127,196 QuitnowKentucky campaign. 18 percent to 38 percent of the commonwealth’s from the board. The partner with Beef Solutions, Local grants also support tobacco control budget it’s got to come from somewhere.” LLC is Creation Gardens. laws. The U.S. Department of Housing and Urban He said justice, social service and education One member commented on the importance Development (HUD) requires a national smoke- advocates all have an interest in keeping the state of a poultry education facility that will be located free housing policy by August 2018. In Northern pension systems solvent. in Ohio County near the Ohio-Daviess county Kentucky, a smoke free policy was implemented “You have skin in the pension game,” line. Another member added that the project is for public housing in 2015 and as a result, HUD McDaniel said. “You’ve had it for a long time, but very proactive, especially given the difficulties used the Northern Kentucky experience to create now a lot of long-term problems have to have animal agriculture faces from those in public a tool kit to help other public housing authorities very near-term solutions. It is going to be some who do not understand the nature of animal statewide. tight budgeting times.” farming and processing operations. In response to a question about policy with In other business, Cabinet for Economic In response to a member who discussed public assistance, Ms. Verden explained that Development Deputy Commissioner John a letter from the Governor asking for input on the policy is directed toward public housing Bevington also testified at yesterday’s meeting tax policy before July 15, 2017 and the need for authorities that are multi-family facilities. that his cabinet hopes to entice more businesses the committee members to defend agricultural One member expressed concerns that the to expand and locate in Kentucky to increase the tax policies that are beneficial to the industry, rule was rushed, given that there are questions tax base and ease the budget constraints. Mr. Beeler stated that placing certain taxes on about maintaining the program if CDC funds are Businesses have announced $5.8 million in agriculture will make Kentucky less competitive. cut. Department of Justice grants have stopped new investment forecasted to create more than In follow-up, a legislator commented on how and the opioid epidemic continues to draw 9,500 jobs so far this year, he said. The largest agriculture in Christian County was integral to program dollars away from smoking toward other of those investments is $1.3 billion to upgrade keeping the community and the local economy issues like drug control. Ms. Verden said that and retool of Toyota Motor’s assembly plant in going after losing a major company from the the impacts to program funding are unknown. Georgetown, $1.5 billion to locate Amazon’s air industrial base. However, there has been a reduction in grants, freight hub to Cincinnati/Northern Kentucky Kentucky Tobacco Prevention and and the CDC has said that how much or whether International Airport in Hebron and $1.3 billion Cessation Program funding will be available has not been decided for Braidy Industries to build an aluminum Kerri Verden, Program Administrator, due to questions about the federal budget funds. rolling mill in Greenup County. Kentucky Tobacco Prevention and Cessation Currently, the state Tobacco Prevention and “We want to surpass the highest level of Program, Cabinet for Health and Family Cessation Program gets 8 percent of its funding announced capital investment in the state’s Services, stated that there have been several from the CDC. history and announce more than 17,000 new achievements in Kentucky. There continues to be In response to a question about what are the jobs, “Bevington said of his cabinet’s goals. “We a decline in the smoking rate. Approximately one impediments to Kentucky’s success in reducing want to move the commonwealth into the top in four Kentuckians smoke. the state’s smoking rate to the national average, quartile of business-friendly state rankings.” THE KENTUCKY GENERAL ASSEMBLY 39 2017 Interim David A. Byerman, Robert Stivers Jeff Hoover LEGISLATIVE Director SENATE PRESIDENT HOUSE SPEAKER RECORD Legislative Research David Osborne Commission David P. Givens PRESIDENT PRO TEM SPEAKER PRO TEM Published monthly by Damon Thayer Jonathan Shell Robert Jenkins the Legislative Research Majority FLOOR LEADER MAJORITY FLOOR LEADER Deputy Director for Commission, the Interim Ray S. Jones II Rocky Adkins RECORD is designed to in- Committee and Staff Coordination MINORITY FLOOR LEADER MINORITY FLOOR LEADER form the citizens of Kentucky of the between-sessions work Dan “Malano” Seum David Meade Rob Weber MAJORITY CAUCUS CHAIrMAN MAJORITY CAUCUS CHAIRMAN of the General Assembly. 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