2017 Interim LEGISLATIVE Volume 30, No. 5 August 2017 * Read online at www.lrc.ky.gov/legislation.htm RECORD Lawmakers get crash course in highway safety by Jim Hannah the time of the meeting, 415 people had already LRC Public Information died on ’s roadways this year, according to the Kentucky State Police. During the same FRANKFORT – Calling it an econom- period last year there were 456 death, in 2015 ic and public health priority, Kentucky’s top there were 405 and in 2014 there were 347. highway safety official said she is determined Hunter, armed with a dizzying array of sta- to better use crash data to identify where tistics, said new data suggests that number will wrecks occur and what programs best reduce continue to rise. She said the increase is being highway collisions. driven by people not buckling up in addition to “The cost of collisions is a staggering distracted and impaired drivers. $17.7 billion in Kentucky,” Office of Highway “We recently expanded from two major en- Safety Executive Director Noelle Hunter said forcement campaigns – our well-known Click It at the Aug. 3 meeting of the Interim Joint or Ticket seat belt campaign and our Drive Sober Committee on Transportation. “Of course, the or Get Pulled Over campaign – to now include value of human lives cannot be quantified.” a speed campaign targeting aggressive driving,” Rep. , D-Louisville, comments before Kentucky’s traffic fatality rate is 1.6 times Hunter said. “The results of the expansion are the Aug. 3 meeting of the Interim Joint Committee higher than the national average, she said. At Continued on page 2 on Transportation. Lawmakers ponder future of public notices by Jim Hannah payer dollars. We have to find a balance between ties, said Kentucky’s public notice laws are sim- LRC Public Information all of those things.” ply out of date. Representatives from organizations rep- “The statutes that are currently in place FRANKFORT – To print, or, not to print? resenting Kentucky’s counties, cities and pub- keep us really reliant on forms of communica- That’s the question. lic schools all voiced concern about the cost of tion that are not always the most timely for the In the age of the internet, a group of state advertising financial statements, meeting dates, people or the press,” she said. “The explosion of legislators gathered recently to discuss whether pending ordinances and bid proposals in the lo- social media options … have changed the way to revise a decades-old law which requires pub- cal paper of record. information is released by not only the press but lic notice of official documents in local newspa- “City officials and city clerks, in particular, elected officials.” pers. don’t want to be mischaracterized as wanting to Rep. , D-Louisville, asked Ken- “I think everyone on this committee under- not give public notice,” said J.D. Chaney, deputy tucky Municipal Clerks Association President stands the need and importance of transparen- executive director of Kentucky League of Cities. Christine Upton what digital sites could be used cy,” said Rep. Michael Meredith, R-Oakland, at “We want to find the most efficient way to engage instead of printed newspapers. Upton, who is the July 26th meeting of the Interim Joint Com- our citizens and in the most cost-effective way also the Hopkinsville city clerk, said Facebook, mittee on Local Government. “I think everyone with taxpayer funds.” Twitter, Instagram and Snapchat in addition to on this committee also understands that there is Shellie Hampton, director of governmental a need for us … to be good stewards of local tax- relations for the Kentucky Association of Coun- Continued on page 2 THE KENTUCKY GENERAL ASSEMBLY 1 Safety, from page 1 more sustained law enforcement campaigns over a longer period of time and more opportunities for smaller law enforcement agencies to partici- pate in campaigns through mini grants.” She said she works with 171 law enforce- ment agencies including Kentucky State Police. “All of what I’ve shared with you are moving us forward in reversing the deadly trend of traf- fic fatalities and serious injuries in our beloved Kentucky,” Hunter said after outlining all the programs her office oversees. “To do so effective- ly, we must rely on data that illustrates the reality of the state of highway safety.” One of those programs she outlined was the Safety Assistance for Freeway Emergencies (SAFE) Patrol. It is a free roadside service that Interim Joint Committee on Transportation co-chairs Rep. , R-McKee, at left, and Sen. Ernie monitors Kentucky interstates, parkways and Harris, R-Prospect, talk after the committee’s August meeting. other major roadways from 6 a.m. to 10 p.m. sev- en days a week in mostly rural areas. SAFE Patrol has 22 truck and 24 operators. said. “Annually our operators make more than Hunter said funding prevents her from ex- 37,000 stops rendering aid to vulnerable motor- panding SAFE Patrol to the entire state. ists,” Hunter said. “Outside of urban areas com- “We certainly recognize the inherent ten- mercial roadside assistance is often unreliable or sions between rural versus urban communities delayed for motorists in disabled vehicles. Some- and distribution of scarce resources,” she said. times we are the only ones that can get to them Co-chair Sen. Ernie Harris, R-Prospect, in a timely manner.” praised Hunter’s approach with the limited Rep. Steve Riggs, D-Louisville, asked why amount of state tax dollars budgeted for her of- SAFE Patrol is not available, for example, in Jef- fice and the strings attached to the federal grants ferson County since the data shows metropolitan she does receive. areas have the most crashes. “I’ve been chairman or on the committee “Over the years I’ve noticed many bureau- for eight years and this is one of the most infor- crats here in Frankfort don’t come from those mative briefings I’ve received,” he said. “In fact, Rep. , R-Florence, makes a comment areas so they like to turn their back on giving us this is the first one to go into so much great de- following meeting testimony. the services we need to improve that data,” Riggs tail of your office.” Notices, from page 1 government websites could all be harnessed to revenue from public notice advertisements from disseminate public notices. a local school district while paying more than “I think we need to move along … in terms Shellie Hampton, director of $7,000 in school taxes. of reducing unfunded mandates because that is governmental relations for the “I would say that is a pretty good return on what this is,” said Rep. Jerry T. Miller, R-Louis- Kentucky Association of the investment for the school district to get 10 ville. “It is an unfunded mandate.” Counties, said Kentucky’s times in taxes than what the newspaper charged Sen. Wil Schroder, R-Wilder, said he was for publishing the financial statement,” Thomp- going a step further than Miller. public notice laws are simply son said. “I think it is a subsidy,” said Schroder, who out of date. He added people read online content differ- has previously introduced legislation amending ently than they do newspapers. Newspaper read- the public notice law. “We are subsidizing these ers aren’t necessarily seeking out public notices small newspapers as an expense to taxpayers.” when they open a newspaper, Thompson said, Kentucky Press Association Executive Di- tax-paying businesses and employers. He said, but they do read them in the course of browsing rector David Thompson said newspapers are for example, that one local paper receives $773 in the pages.

2 2017 Interim LEGISLATIVE RECORD Prison costs, victims rights eyed by panel by Rebecca Hanchett LRC Public Information

FRANKFORT—Kentucky had to dole out nearly $43 million in additional, non-budgeted funds last fiscal year to house state inmates. This “necessary governmental expense,” or NGE as the funds are called, is only a fraction of $140 million in NGEs the state has had to spend on corrections over the past six years in addi- tion to budgeted funds, Kentucky Public Advo- cate Ed Monahan told the August Interim Joint Committee on Judiciary. Unless corrections costs are controlled, Monahan said the state can expect to pay an additional $100 million on its prison population in the next two years. Telling lawmakers they need to realign corrections spending so that funds are used in a “smarter way,” Monahan suggested more money be invested in treatment. Increasing the threshold for felony theft, now set at $500, along with earned parole or lower penalties for some Rep. , D-Louisville, makes a comment during the Aug. 4 meeting of the Interim Joint Committee crimes are other ideas he shared. on Judiciary. “Change this long-term. There are good ideas… Seize them in this next biennium and Rep. , R-Lexington, said a start to change this financial outcome that is in- 25 percent reduction in crime is nothing to scoff evitable if nothing changes,” said Monahan. at. He said thousands of would-be victims were Those concerned with being tough on protected because of that reduction in the crime crime were reassured by Monahan that Ken- rate due to incarceration. tucky’s crime rate is falling, with violent crime “I think we need to maintain a very sharp plummeting 28 percent over the 30-year peri- focus on the victims—not only those (who) are od between 1985 and 2015. The issue is the rate ultimately victimized but those who are nev- of imprisonment has not fallen along with the er victimized because, in fact, the system does crime rate—instead nearly quadrupling over the work, many times. We simply cannot live in a same period. society in which everything is excused, where “For the first time in the history of the there is a rationale for every misconduct,” said Commonwealth, we have exceeded 24,000 peo- Benvenuti. ple in prison,” he said. “This is at great expense Also concerned for the victims, Rep. Jason compared to what you’ve budgeted.” Nemes, R-Louisville, said the state may also need In regards to the NGE funds, Judiciary to look at who it is incarcerating. Many inmates Committee Co-Chair Sen. Whitney Westerfield, remain in prison for several years while others R-Hopkinsville, asked why spending in some committing crimes roam free, he explained. years is greater than in others as the crime rate “I think we need to be a little smarter,” falls while incarceration costs rise. Monahan said Nemes. “The folks who commit crimes are said researchers have found that only 25 percent younger while our PFO (persistent felony of- of the reduction of the crime rate is due to incar- fender law) keeps people in prison while they ceration, while incarceration had “no measur- wouldn’t be a harm anymore, or at least that’s able effect” on the remaining 75 percent decline. what the numbers show.” “Their analysis is there are other things that Protection of crime victims was also advo- affect crime rates: policies, policing practices, cated by some lawmakers following a presenta- alternative (programs),” said Monahan. “But I tion before the panel by Kentucky Association of think what we know here is odds are high that Criminal Defense Attorneys legislative agent Re- Interim Joint Committee on Judiciary Co-Chair Sen. Whitney Westerfield, R-Hopkinsville, asks a question over the next four or five years the crime rate is becca DiLoreto after she referenced Marsy’s Law, during the August meeting. going to continue to decline, the number of cas- a victims’ bill of rights law that was first passed es in the system is going to continue to decline, in California and has been modeled by several but your incarceration rate is going to continue Continued on page 53 to increase.” 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

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

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2017 Kentucky General Assembly

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

6 2017 Interim LEGISLATIVE RECORD 2017 Kentucky LRC General Assembly Publications 2018 Price List

Jonathan Shell (71) Tommy Turner (85) Daily Record Pickup: $165.00 PO Box 138 175 Clifty Grove Church Lancaster, KY 40444 Somerset, KY 42501 Daily Record Mailed: $165.00 (plus (LRC) 502-564-8100 (LRC) 502-564-8100 (65) (Home) 606-274-5175 postage) 112 W 11th St Friday Record Mailed: $38.50 (plus Covington, KY 41011 (52) (LRC) 502-564-8100 PO Box 969 postage) (Home) 859-581-6521 Monticello, KY 42633 (Home FAX) 859-261-6582 (LRC) 502-564-8100 Individual Record Pickup: $2.75 (Work) 859-261-6577 (Home) 606-340-8490 John Sims Jr (70) Individual Record Mailed: $2.75 (plus 702 Capitol Avenue Annex Room 429C postage) Frankfort, KY 40601 (3) (LRC) 502-564-8100 4317 Pines Rd (Home) 606-748-1839 Paducah, KY 42001 Bills (LRC) 502-564-8100 Kevin Sinnette (100) (Home) 270-558-5139 Complete Set of Bills and Resolutions PO Box 1358 (35) Ashland KY 41105 1280 Royal Ave (Pick-up): $630.00 (LRC) 502-564-8100 Louisville, KY 40204 (Home) 606-324-5711 (LRC) 502-564-8100 Individual Bills Per Page: $.05 (Home FAX) 606-329-1430 (Work) 502-303-3732 (26) Amendments Per Page: $.05 Diane St. Onge (63) PO Box 6605 523 Kluemper Court Shepherdsville, KY 40165 Roll Call Votes: $.15 Per Page Fort Wright KY 41011 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-543-8209 (Home) 859-341-1231 III (86) Scott Wells (97) LRC Publications 545 KY 223 702 Capitol Avenue Flat Lick, KY 40935 Annex Room 413D 1-10 copies: Free to general public (LRC) 502-564-8100 Frankfort, KY 40601 (Home) 606-542-5210 (LRC) 502-564-8100 Larger numbers of free copies available (22) to schools and state agencies 1481 Jefferson School Road (79) Scottsville, KY 42164 PO Box 22778 (Copies over preapproved limits require (LRC) 502-564-8100 Lexington, KY 40522 (Home) 270-622-5054 (LRC) 502-564-8100 approval of LRC Director’s Office) (Work) 859-266-7581 Walker Thomas (8) (66) 702 Capitol Avenue PO Box 911 Annex Room 413F Burlington, KY 41005 Administrative Regulations (2017) Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Work) 859-525-6698 Bound Volumes: $253.12 (Home) 270-889-8091 (96) (Home FAX) 270-885-5335 PO Box 591 Administrative Register: $120.00 Grayson, KY 41143 Volumes and Register: $373.12 (LRC) 502-564-8100 James Tipton (53) (Work) 606-474-7263 8151 Little Mount Rd (Work FAX) 606-474-7638 Taylorsville, KY 40071 (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

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THE KENTUCKY GENERAL ASSEMBLY 7 Committee Meetings

Interim Joint Committee on approximately 50,000 students graduated from Index Appropriations and Revenue public high schools; of that total, about 60 Minutes of the 1st Meeting percent, or 30,000, students elected to attend A of the 2017 Interim some sort of postsecondary education. The Administrative Regulation Review Subcommittee, 37 June 7, 2017 remaining 40 percent elected not to enroll in Appropriations and Revenue, 8, 24, 27 Call to Order and Roll Call any form of postsecondary education after B The 1st meeting of the Interim Joint graduation. Banking and Insurance, 10 Committee on Appropriations and Revenue was Deputy Secretary Montell stated that in held on Wednesday, June 7, 2017, at 1:30 PM, December 2016, Governor Bevin allocated C at the Northern Kentucky Convention Center $16 million for the Work Ready Kentucky Capital Planning Advisory Board, 35 . Representative Steven Rudy, Chair, called the Scholarship Program to meet the increasing Capital Projects and Bond Oversight, 41 meeting to order, and the secretary called the demand for skilled workers in five of Kentucky’s H roll. fastest growing workforce industries; advanced Health and Welfare and Family Services, 11 Present were: manufacturing; business and information Members: Senator Christian McDaniel, Co- technology; construction trades; healthcare; and L Chair; Representative Steven Rudy, Co-Chair; transportation and logistics. The scholarship will Legislative Research Commission, 42 Licensing, Occupations, and Administrative Regu- Senators Ralph Alvarado, Danny Carroll, David pay up to 32 hours to reach the certification. This lations, 18 P. Givens, Stan Humphries, Gerald A. Neal, is a last dollar scholarship, which means that the Local Government, 20 Dennis Parrett, Wil Schroder, Brandon Smith, student would need to apply for the FASFA and Stephen West, and Max Wise; Representatives federal dollars first and then whatever was left M Rocky Adkins, Regina Bunch, Tim Couch, Ken over the state would fund out of this scholarship. Medicaid Oversight and Advisory Committee, 39 Fleming, Kelly Flood, David Hale, Brian Linder, In January there was a reorganization of N Suzanne Miles, Jason Nemes, Phillip Pratt, Jody the Office of Educational Technology offices. Natural Resources and Energy, 9, 24 Richards, Sal Santoro, Arnold Simpson, Jim There were originally 40 offices and now are Stewart III, James Tipton, Jim Wayne, Russell 12 hubs and eight satellite offices. The reason P Webber, Susan Westrom, and Jill York. for the reorganization was twofold—budgetary, Prefiled Bills, 48 Program Review and Investigations Committee, 32 Guests: , Deputy Secretary and because the office was running approximately a Public Pension Oversight Board, 43 Jessica Fletcher, Director of Communications, $5 million deficit; and the need to centralize staff Education and Workforce Development Cabinet; for better service to the Commonwealth. S John Bevington, Deputy Commissioner and Deputy Secretary Montell stated that in State Government, 16 Caroline Baesler, General Counselor, Cabinet for 2012 the Commonwealth was approximately $1

T Economic Development billion in debt to the federal government with Tobacco Settlement Agreement Fund Oversight LRC Staff: Jennifer Hays, Cynthia Brown, the unemployment insurance trust fund. As of Committee, 31, 47 Amit Shanker, Hannah Walker, and Jennifer June 2017, the Commonwealth had paid off the Tourism, Small Business, and Information Technol- Beeler debt and has a positive balance of $425.2 million ogy, 25 Work-Ready Initiative in the trust fund. Transportation, 29 Brad Montell, Deputy Secretary, Education In response to a question from Chairman V and Workforce Development discussed the McDaniel, Deputy Secretary Montell explained Veterans, Military Affairs and Public Protection, 15 Work Ready Skills Initiative. He explained that that dual credit scholarships are awarded to $98.9 million have been awarded to 40 projects schools that accept KEES scholarship money. expected to provide top of the line training to In response to a question from more than 47,000 Kentuckians annually in five Representative Wayne, Deputy Secretary Montell core sectors. With the $98.9 million awarded, explained that the work ready scholarship will an additional $146.2 million in matching funds not pay for remediation classes. The scholarship have been awarded. There are more than $500 pays for skills training. million in requests unfunded. Review of recent Economic Development Deputy Secretary Montell explained that awards in 2016 the legislature allocated approximately John Bevington, Deputy Commissioner, $15 million for each student within the Caroline Baesler, General Counsel, Cabinet for commonwealth to achieve up to two courses in Economic Development discussed the top three a postsecondary credit tuition free in the dual awarded Economic Development projects. credit program. The results show that before the Ms. Baesler stated that Governor Bevin dual credit scholarship there were only 17,732 has laid out the mission statement for the students enrolled, and after the scholarship there Commonwealth to become the hub of were 26,726 enrolled in the program. In 2016, engineering and manufacturing excellence.

8 2017 Interim LEGISLATIVE RECORD She explained that Secretary Gill and Governor Owner, Jackson Group, Rick Wolf, Director of impact. Bevin have travelled the United States and Engineering, Jackson Group, Reagan Taylor, The LIHEAP block grant findings of fact internationally to build and solidify relationships Madison County Judge/Executive. was approved by unanimous voice vote. with partners that are not located in Kentucky. LRC Staff: D. Todd Littlefield, Stefan Protecting Transportation Infrastructure Mr. Bevington explained that the Economic Kasacavage, and Janine Coy-Geeslin, and Susan Using Natural Stream Channel Design: Saving Development Cabinet has set numerous goals to Spoonamore and Rachel Hartley, Committee Money and Streams make the Commonwealth a successful business Assistants. Jeremy Jackson provided an overview of hub. The goals are to: surpass the highest level of Presentation and public hearing on the water resources including streams and lakes announced capital investment, which currently Low Income Home Energy Assistance Program where a significant percentage does not support is $5.1 billion, and announce more than 17,000 (LIHEAP) Block Grant Application – FY 18 fish consumption or habitat. The leading causes new jobs; move the Commonwealth into the Elizabeth Caywood provided an overview of of impairments are sediments, nutrients, and top quartile of business friendly state rankings; the Department for Community Based Services total suspended solids. The number one source establish a more integrated workforce delivery (DCBS), which is the largest organizational for sediment is urban and rural development. system within the cabinet, including talent, unit within the Cabinet for Health and Family Sediment pollution reduces revenue due to attraction and retention; and build out the Services with a budget over one billion dollars. decrease in recreational activities and impaired Commonwealth’s entrepreneurial community. LIHEAP is targeted towards households with aquatic resources while adding expensive Mr. Bevington stated that the three top the lowest income that pay a high proportion treatment and maintenance costs. Impervious investments this fiscal year are: Toyota - $1.3 of income for home energy. DCBS anticipates surfaces cause less water infiltration into the billion investment, which includes machines, Kentucky’s award will be $47.2 million for 2018. soil resulting in increased flooding at higher equipment, and retooling; and approximately DCBS maintains a contractual arrangement velocities. The favored solution is to straighten 7,800 jobs solidified; Amazon - $1.5 billion with Community Action Kentucky, Inc. (CAK) streams and build them wider which perpetuates investment, which includes a land lease and and the Kentucky Housing Corporation (KHC) to the problem because more sediment is produced building construction, and 2,700 jobs added; provide support, training, and monitoring. CAK due to erosion. The solution should be to slow and Braidy Industries - $1.3 billion investment and KHC have a sub-contractual arrangement the flow of water. for building construction, equipment, land, and with Kentucky’s Community Action Network Sediment causes problems with construction operation and 550 new jobs. that makes LIHEAP benefits available in all infrastructure including water line crossings, With no further business before the counties. pipeline line crossings, and bridge crossings. committee, the meeting was adjourned. Todd Trapp discussed benefits offered Conventional methods for repair include pouring by LIHEAP such as bill payment assistance, concrete along the banks, gabion baskets, and Interim Joint Committee emergency assistance, summer cooling, and riprap. Natural stream channel design can weatherization activities. improve stream stability and save money. There on Natural Resources and Roger McCann stated there are 23 are multiple designs including a W-shaped rock Energy community action agencies that together cover vane, cross vane, and J-hook vane. The economic Minutes of the 2nd Meeting all Kentucky counties. Each agency allows local benefit to these designs is increased recreation of the 2017 Interim control so specific needs can be met. CAK and fishing which will generate tourism revenue July 6, 2017 utilizes a continuous process for improvement and will decrease maintenance costs. There are Call to Order and Roll Call including data collection and analysis. also ecological benefits including decreased The 2nd meeting of the Interim Joint Todd Trapp summarized concerns bank erosion and increased aquatic habitat. Committee on Natural Resources and Energy presented during the June 16, 2016 meeting. It The problems with funding mechanisms was held on Thursday, July 6, 2017, at 1:00 PM, had been said that Louisville Metro Community include being underfunded, over-restrictive, and in Room 149 of the Capitol Annex. Senator Jared Action Partnership had not spend all of its a focus not at the county level. The proposed Carpenter, Chair, called the meeting to order, allocated funds. DCBS convened a workgroup approach includes a combination of using and the secretary called the roll. to research and discuss possible solutions. A natural stream channel design and greater access Present were: pilot program is proposed in Jefferson County to funds from various sources. Members: Senator Jared Carpenter, Co- that will allow applicants to qualify for the crisis In response to Senator Webb, Rick Wolf Chair; Representative Jim Gooch Jr., Co-Chair; component if they present a past due bill or a stated that problems can be prevented with good Senators C.B. Embry Jr., Ernie Harris, Ray S. disconnect notice. This should limit damage to bridge design. Jones II, Christian McDaniel, John Schickel, the applicant’s credit. In response to Representative Brown, Brandon Smith, Johnny Ray Turner, Robin L. In response to Representative Wayne, Roger Jeremy Jackson stated the design is not being Webb, and Whitney Westerfield; Representatives McCann stated that LIHEAP, weatherization, and used for Mountain Parkway bridge construction. John Blanton, Larry Brown, McKenzie Cantrell, the CSBG block grant are expected to be zeroed Documents distributed during the meeting Matt Castlen, Jeffery Donohue, Jim DuPlessis, out in President Trump’s proposed budget. Staff are available with meeting material in the LRC Daniel Elliott, Kelly Flood, Chris Fugate, Brian must be prepared in the event the budget is Library. There being no further business, the Linder, Marie Rader, Jim Wayne, and Jill York. passed and should educate constituents. There Guests: Todd Trapp, Assistant Director, are efforts in Washington to lobby for the grant. Division of Family Support, Department for Community Based Services, Elizabeth Caywood, In response to Senator Webb, Roger McCann Executive Advisor, Commissioner’s Office, stated Apprise Consulting is performing a Department for Community Based Services, national study to determine what impact rate Roger McCann, Executive Director, Community increases have on the marginalized population. Action Kentucky, Inc., Jeremy Jackson, President/ There is no data yet, but it may have a negative THE KENTUCKY GENERAL ASSEMBLY 9 meeting was adjourned. A state can set benchmark payments based on Representative Riggs said, as an agent, the higher of the health carrier’s contract rate he finds it complicated to track in-network Interim Joint Committee on or a percentage of the Medicare payment rate providers and consumers are expected to be Banking and Insurance for the same or similar services in the area. more sophisticated than they should have to be Minutes of the 1st Meeting Ms. Matthews outlined dispute resolution to navigate the system. of the 2017 Interim approaches used by other states. Key questions Referring to previous testimony, June 27, 2017 that arose include: defining an appropriate Representative Gooch said allowing Call to Order and Roll Call payment amount, whether to regulate provider policyholders to change policies solely to cover The 1st meeting of the Interim Joint rates, should dispute resolution be mandatory or upcoming medical procedures may be a part of Committee on Banking and Insurance was held voluntary, non-binding or binding, and whether the healthcare problem. on Tuesday, June 27, 2017, at 10:00 AM, in Room to have arbitration where the reviewer chooses Representative Meredith said a big issue is 149 of the Capitol Annex. Representative Bart one of the two parties’ final offers. services performed outside the doctor’s office Rowland, Chair, called the meeting to order, and Responding to Chairman Rowland’s such as laboratory or radiologic services. the secretary called the roll. question, Ms. Matthews said specific carriers Senator Girdler expressed concern about Present were: were not identified, however, Preferredpolicy holders increasing insurance plans to Members: Senator Tom Buford, Co- Provider Organizations were most often cover upcoming procedures. Chair; Representative Bart Rowland, Co-Chair; involved. Consumers choosing lower cost plans Representative Wuchner said there is a gap Senators Julie Raque Adams, Jared Carpenter, experienced more surprise billings due to out- in purchasing a plan and understanding what is Rick Girdler, Christian McDaniel, Morgan of-network services. no state has implemented covered. Hospitals are inundated with unpaid McGarvey, Dennis Parrett, Dorsey Ridley, the NAIC’s approach. Approximately nine states bills as a result. Responding to Representative Albert Robinson, John Schickel, and Dan have developed a resolution process. Most states Wuchner, Ms. Farnsley said she rarely sees “Malano” Seum; Representatives Will Coursey, look to New York’s resolution approach. precertification or shopping for less expensive Jim DuPlessis, Joseph M. Fischer, Jim Gooch Jr., Chairman Rowland noted the members’ services. Jeff Greer, Adam Koenig, Stan Lee, Chad McCoy, folders included a report from the National Credit Card Processing Fees Paid by Michael Meredith, Steve Riggs, Wilson Stone, Academy for State Health Policy titled Insureds Scott Wells, and Addia Wuchner. “Protecting Patients from Medical Debt: State Christi LeMay, Executive Vice President, Guests: Austin McKay; Jolie Matthews, Legislative Tools to Address Surprise Billing in Professional Insurance Agents of Kentucky, and National Association of Insurance the Health Care Industry.” David Thornton, Greater Lexington Insurance Commissioners; Greg Humkey, Christina Austin McKay, an insurance agent from explained that some insurance agents provide Heckathorn, and Mindy Farnsley, Kentucky Bowling Green and former president of Kentucky a payment service allowing clients to pay for Association of Health Underwriters; Christi Association of Insurance and Financial Advisers, their insurance in the agent’s office. If the agent LeMay, Executive Vice President, Professional spoke about surprise billing issues his clients chooses to accept credit card payment the agent Insurance Agents of Kentucky; David Thornton, have recently experienced. He said patients must absorb the 3 to 3.5 percent credit card fee Greater Lexington Insurance; Commissioner should be made aware when doctors working resulting in the loss of almost half their revenue to Nancy Atkins, Deputy Commissioner of Policy in hospitals are out-of-network or ensure that provide that service. Most agents find the 18 to 20 Patrick O’Connor, and Deputy Commissioner anyone working in a hospital is in-network. percent that finance companies charge onerous of Administration Tony Butcher, Kentucky Co-Chair Bufford suggested filingand will therefore accept credit card payment. Department of Insurance. legislation as a means to discuss the issue with Mr. Thornton asked that agents be allowed to LRC Staff: Sean Donaldson, Jessica Sharpe, hospital representatives. pass on the actual credit card company charge and Dawn Johnson. Responding to Representative Stone’s to the consumer instead of the agent having to Surprise Billing questions, Mr. McKay said any provider absorb the fee. Jolie Matthews, National Association of practicing in a hospital should have to accept Responding to Senator McDaniel’s Insurance Commissioners (NAIC), spoke on the the hospital’s networks. He said some insurance question, Mr. Thornton said an insurance agent NAIC’s Health Benefit Plan Network Access and plans are chosen based on the hospital the client is not allowed to accept additional fees and are Adequacy Model Act developed to address plan prefers. only allowed a set commission. Mr. Thornton issues including surprise medical billing. She Senator Seum noted that small communities explained that this refers to a specific segment of explained that surprise billing is the difference are limited in where they receive healthcare. the population who cannot produce the $2,000 between an insurer’s payment to a provider and Christina Heckathorn and Greg Humkey, to $5,000 insurance premium and would like to the provider’s charges which most often occurs Benefit Advisors with Employee Benefitpay via credit card. He noted that the average when a consumer receives services from out- Associates, Inc.; and Mindy Farnsley, Benefits premium through his agency is less than $2,000 of-network providers, whether intentionally Specialist with Preferred Benefits explained per year. or unintentionally. Ms. Matthews discussed some of the recent surprise billing issues their Responding to Representative DuPlessis, requirements for participating facilities with non- clients have experienced. Mr. Thornton said the Department of Insurance participating facility-base providers. The NAIC Representative DuPlessis questioned why does now allow agents to build in a percentage of report concluded that the best way to insulate consumers can be billed extravagant rates for the fees they are paid to cover such a transaction the consumer from the dispute was requiring some medical services such as $45,000 for air due to specifically defined sources of revenue. the carrier and the out-of-network provider to ambulance services. Representative Rowland Kentucky Department of Insurance settle a payment issue through arbitration or and Representative Greer said the air ambulance Newly appointed Commissioner Nancy other means. The carrier can elect to pay the billing issue is separate in itself and will be a Atkins, Deputy Commissioner of Policy provider’s bill as submitted or pay in accordance topic of discussion at July’s National Conference Patrick O’Connor, and Deputy Commissioner with an established benchmark set by the state. of Insurance Legislators. of Administration Tony Butcher introduced

10 2017 Interim LEGISLATIVE RECORD themselves and gave a brief overview of the Brown Glisson, Secretary, Kristi Putnam, Project a certified psychologist, licensed psychological department. Manager, and Jill Hunter, Deputy Commissioner, associate, candidate for licensure, or a credential Responding to Representative Greer’s Department for Medicaid Services, Cabinet for holder sanction by the board; question, Commissioner Atkins said the captive Health and Family Services; Scott Brinkman, 201 KAR 26:175 – establishes the continuing market is currently stable. Secretary of the Executive Cabinet; Adam Meier, education requirements for renewal of a license There being no further business to come Chief of Staff for Policy, Office of the Governor; by the Board of Examiners of Psychology; 201 before the committee, the meeting adjourned at Sarah S. Nicholson and Mike Rust, Kentucky KAR 26:180 – establishes the requirements for 11:40 AM. Hospital Association; Liz Shepherd, Kentucky licensure as a psychologist by reciprocity; 201 Justice Association; William Simpson, President, KAR 26:185 – establishes the requirements for and Ben Donaldson, Director of Government granting a license to an applicant who is licensed Relations, DisposeRx; Jennie Varrousek, in another state that does not have an agreement University of Louisville Pediatric Forensics; Steve of reciprocity with the Board of Examiners of Interim Joint Committee on Hart, Kentucky Board of Pharmacy; Cyndee Psychology; Health and Welfare and Burton, Matthew 25 AIDS Services; Phyllis Sosa 201 KAR 26:190 – establishes requirements Family Services and Kristi Gentry, Department for Aging and for supervised professional experience for Minutes of the Second Meeting Independent Living, Cabinet for Health and licensure as a psychologist; 201 KAR 26:200 of the 2017 Interim Family Services; Kim Hinkel, KIPDA, and Bob – establishes requirements for licensure as a July 17, 2017 Silverthorn, Office of Inspector General, Cabinet psychologist; 201 KAR 26:210 – establishes Call to Order and Roll Call for Health and Family Services. educational requirements for licensure as a The second meeting of the Interim Joint LRC Staff: DeeAnn Wenk, Ben Payne, Sarah psychological associate; Committee on Health and Welfare and Family Kidder, Heather Scott, and Gina Rigsby. 201 KAR 26:215 – establishes the Services was held on Monday, July 17, 2017, at Approval of the Minutes from the June 21, requirements for registering in Kentucky as 10:00 a.m., in Room 129 of the Capitol Annex. 2017 Meeting a nonresident psychologist; 201 KAR 26:225 Representative Addia Wuchner, Co-Chair, called A motion to approve the minutes of the – establishes the renewal and reinstatement the meeting to order at 10:07 a.m., and the June 21, 2017 meet was made by Senator Adams, processes by the Board of Examiners of secretary called the roll. seconded by Senator Alvarado, and approved by Psychology; Present were: voice vote. 201 KAR 26:250 – establishes the Members: Senator Julie Raque Adams, Consideration of Referred Administrative requirements for the employment of a licensed Co-Chair; Representative Addia Wuchner, Co- Regulations psychological associate; 201 KAR 26:280 – Chair; Senators Ralph Alvarado, Tom Buford, 201 KAR 2:074 – establishes requirements establishes the requirements for applicants for Danny Carroll, David P. Givens, Denise Harper for pharmacy services in hospitals or other licensure and the conditions for a temporary Angel, Alice Forgy Kerr, Stephen Meredith, organized health care facilities; 201 KAR license of a psychological associate; 201 KAR and Max Wise; Representatives Danny Bentley, 22:070 – establishes the requirements a foreign- 26:290 – establishes the requirements for George Brown Jr, Joni L. Jenkins, Mary Lou educated physical therapist shall satisfy to an applicant for licensure as a psychological Marzian, Kimberly Poore Moser, Melinda become credentialed in the state of Kentucky; practitioner; 201 KAR 32:050 – establishes the Gibbons Prunty, Steve Riley, and Russell Webber. 201 KAR 26:125 – establishes the code of ethics for licensed marriage and family Guests: Melissa L. Currie, MD, FAAP, requirements for the granting of designation therapists and marriage and family therapist Medical Director and Chief, Kosair Charities of health service provider for a licensed associates; 201 KAR 32:060 – establishes the Division of Pediatric Forensic Medicine, and psychologist who supervises a psychological requirements for continuing education and the Professor of Pediatrics, Department of Pediatrics, health care service; 201 KAR 26:130 – protects methods and standards for the accreditation of University of Louisville School of Medicine; Jill and safeguards the health and safety of the continuing education courses; 201 KAR 46:035 Seyfred, Executive Director, and Joel Griffin, citizens of Kentucky and provides procedures for – establishes uniform standards for the licensure Prevent Child Abuse Kentucky; Abby Carter filing, evaluating, and disposing of complaints of individuals who perform medical imaging and Emanuelson, Associate Vice President for by the Board of Examiners of Psychology; radiation therapy for diagnostic and therapeutic Advocacy and Activist Engagement, National 201 KAR 26:140 – establishes procedures for purposes while under the supervision of a Multiple Sclerosis Society; Keith Johnson, CPA, a hearing upon the filing of a grievance to the licensed practitioner of the healing arts; 201 Robbins Enterprises; Wesley R. Butler, Attorney, Kentucky Board of Examiners of Psychology KAR 46:040 – establishes requirements for Barnett Benvenuti & Butler PLLC; William C. alleging a violation of KRS Chapter 319; 201 licensure, renewal, and reinstatement for an Thornbury, Jr., MD, FAAFP, President, Kentucky KAR 26:145 – establishes a code of conduct for a advanced imaging professional, a medical Academy of Family Physicians, Kentucky Medical person practicing psychology; 201 KAR 26:155 imaging technologist, a radiographer, a radiation Association Board Member, and Chair of the – establishes the requirements for applicants for therapist, and a nuclear medicine technologist; Medicaid P&T Committee; Paula Schenk, MPH, licensure, and the conditions for a temporary 201 KAR 46:060 – delineates the RN, Executive Director, and Nathan Goldman, license as a psychologist; requirements for continuing education and General Counsel, Kentucky Board of Nursing; 201 KAR 26:160 – establishes the application prescribes methods and standards for the approval Mark Milner R.N., BA, MHA, MBA, Chief and renewal fees for credential holders by the of continuing education courses required by Nursing Officer and Vice President of Medical Board of Examiners of Psychology; 201 KAR the Board of Medical Imaging and Radiation Staff Services, Ephraim McDowell Regional 26:165 – establishes the requirements for Therapy; 201 KAR 46:070 – establishes uniform Medical Center; Dr. Jessica Estes, President, inactive status for a credential holder for a period enforcement procedures regarding the licensure Kentucky Coalition of Nurse Practitioners and of up to three consecutive years by the Board of of an advanced imaging professional, a medical Nurse Midwives; Mary Katherine DeLodder, The Examiners of Psychology; 201 KAR 26:171 – imaging technologist, a radiographer, a radiation Kentucky Home Birth Coalition; Vickie Yates establishes the requirements for supervision of therapist, a nuclear medicine technologist, or a THE KENTUCKY GENERAL ASSEMBLY 11 limited x-ray machine operator and penalties Kentucky providers have a compulsory burden disabled from maltreatment the first time the for violation of licensure requirements; 201 to build and maintain a physical plant. Studies child is abused and/or neglected. Any bruising KAR 46:090 – establishes, consistent with the conclude that if there is no payment parity, there of the torso, ears, or neck (TEN-4 exam) in requirements of KRS Chapter 13B, the procedures is no incentive for health providers to invest in a child four years of age or younger or any to be followed by the Board of Medical Imaging telehealth care versus in-office care. Seventy-five bruising, anywhere, on a non-mobile infant is and Radiation Therapy in hearing appeals of percent of healthcare dollars is from chronic not normal. Situations that trigger abuse include actions taken under the public health laws of the disease care delivery. Chronic disease care a crying baby, a child’s misbehavior, an argument Commonwealth; 902 KAR 20:053 – repeals 902 cannot be provided by different off site providers, or family conflict, toilet training, escalation of KAR 20:054, Health maintenance organizations; because a provider has to establish a relationship physical punishment, and parental stressors operations and services; 902 KAR 22:011 – with the patient. The benefits of telemedicine outside the home. The top risk factors for fatal repeals 902 KAR 20:010 and 902 KAR 20:030 as include 1) saving money, time, and resources; abusive injury include substance abuse, domestic these two administrative regulations establish 2) opening access, 3) leveling access to doctor; violence, criminal history, and undiagnosed or responsibilities for the Kentucky Board of Family 4) easing medical manpower shortages; and 5) untreated mental illness among adult caregivers Health Care Providers that is no longer active; provides better health outcomes, quality, and in the home. 902 KAR 55:076 – repeals 902 KAR 55:100, lower costs by staying with the same physician. Jill Seyfred, Executive Director, and Joel Laetrile manufacturing standards; 906 KAR In response to questions or comments by Griffin, Prevent Child Abuse Kentucky (PCAK), 1:081 – repeals 906 KAR 1:080 because the Office Senator Alvarado, Dr. Thornbury stated that stated that its mission is to prevent the abuse of Inspector General is no longer responsible for there is always a potential medical liability, and and neglect of Kentucky’s children. Kentucky is the certification of private review agents; 906 providers should be compensated for taking ranked second in the nation in 2015 for child KAR 1:091 – repeals 902 KAR 1:090 because more risks for on-line treatment. Documentation maltreatment. Lifetime cost for the 22,090 the Office of Inspector General is no longer always has to be provided to insurance confirmed victim in Kentucky for Calendar responsible for conducting audits to determine companies. It is not worth investing in telehealth Year 2016 is $4,639,165,080. The top risk factors allowable costs and reimbursement under technology if that physician is not reimbursed include substance abuse and family violence. Kentucky’s Medicaid Program for those services the same as other providers. Telemedicine can There are services available in all 120 counties. listed in 906 KAR 1:090, Section 3; and 910 KAR provide a more efficient delivery of care. There needs to be an increase in education 1:210 – establishes a statewide Long-term Care In response to questions by Senator Givens, and awareness of child abuse. PCAK currently Ombudsman Program. A motion to approve the Dr. Thornbury stated that Kentucky will move offers 14 different trainings on topics ranging referred administrative regulations was made by from a fee-for-service model to an outcome- from recognizing and reporting, internet safety, Senator Alvarado, seconded by Senator Adams, based model with a capitated fee. There needs to and working with families in substance abuse and approved by voice vote. be a certain amount of providers online to make recovery. PCAK staff can develop a training to Telehealth Care – 2017 Legislation healthcare more affordable. address a specific need or subject. Milestones Representative Steve Riley stated that In response to a question by Representative in PCAK’s prevention efforts include the in Kentucky, there is an extreme shortage Marzian, Dr. Thornbury stated that Kentucky development of on-line web-based trainings of physicians. House Bill 450 from the 2017 needs to do whatever is necessary to make access for child care, nursing, and physicians, and Regular Session would allow primary physicians to broadband services available to citizens in the training of over 37,000 child care staff, and to use technology to have visits with patients. rural and urban areas. Kentucky has no choice trained over approximately 4,000 social workers, Even though a person has an appointment, it but to find a solution. Representative Riley stated childcare staff, and professionals in face-to-face could take several hours to get back to see the that all stakeholders need to get together to make sessions. PCAK’s goal is to provide multiple doctor. Most people cannot wait long periods of this come to fruition. exposures to information parents need when time to see the doctor, so telehealth would be a Pediatric Head Abuse Trauma they most need to hear it. way for people to see the doctor without having Melissa L. Currie, MD, FAAP, Medical Hospital Peer Review to wait long periods of time for a diagnosis and Director and Chief, Kosair Charities Division Wesley R. Butler, Attorney, Barnett treatment. of Pediatric Forensic Medicine, and Professor of Benvenuti & Butler PLLC, stated that peer William C. Thornbury, Jr., MD, FAAFP, Pediatrics, Department of Pediatrics, University review is any process by which someone reviews President, Kentucky Academy of Family of Louisville School of Medicine, and Board- a peer’s clinical practice. Many times it focuses Physicians, Kentucky Medical Association certified child abuse pediatrician, stated that on clinical judgment, professional judgment and Board Member, and Chair of the Medicaid P&T infants with abusive head trauma (AHT) may skill to provide feedback to a practitioner for Committee, stated that the Kentucky Academy look completely normal and uninjured on the areas of improvement. There is no model peer of Family Physicians and the Kentucky Medical outside, but have serious injuries on the inside. review process that everyone can follow. Peer Association have passed a joint resolution The signs and symptoms can be hard to notice review is retrospective. The idea is to look back supporting the intent of HB 450. Kentucky has and easily mistaken for a less concerning problem and evaluate the case and the clinical judgments one of the most chronically ill populations in the and therefore missed and/or misdiagnosed made, and the skills used for the purpose of country, and there are not enough healthcare by medical professionals. AHT is the most improving future care. Peer review influences care providers. Many people are utilizing emergency dangerous and dearly form of child physical on future patients. It is not included in a patient’s rooms and not seeing their own primary care abuse. Legislation for mandatory recognition medical record and has no influence on a patient’s physician. HB 450 would require payment training was enacted by 2010 House Bill 285, care. Peer review is self-critical. It is intended to for like-kind services from private insurance 2014 House Bill 157, and 2015 Senate Bill 119. be an evaluative process about questioning how providers to Kentucky’s health provider if they Global brain injury is caused by rotational or care is provided and how to improve that care in have an established and ongoing care relationship angular forces that involves shaking, impact, or the future. Peer review is not an investigation but with a patient. The intent of the legislation is to both. It is not typically a one-time event. It is very an evaluation of the medical record to determine provide a fair market for telemedicine technology. rare for a child to die from or be permanently the clinical judgment behind a decision. Peer

12 2017 Interim LEGISLATIVE RECORD review is not a disciplinary process but a quality National Multiple Sclerosis Society, stated that developing one. Maryland and Louisiana have process intended to identify ways to improve most people with multiple sclerosis (MS) are established a tax incentive for livable homes. quality of care. If there are issues with the case diagnosed between the ages of 20 and 50 with at Having stable, affordable, and accessible housing that need to be referred to others, it goes through least two to three times more women than men not only increases quality of life and promotes a separate process for disciplinary action. All 50 being diagnosed with the disease. MS affects independence for people living with disabilities, states and the federal government have laws that more than 2.3 million worldwide and nearly but it allows them to remain actively engaged in are intended to encourage medical peer review. 6,000 in Kentucky. MS is an unpredictable, often the workforce and community, which benefits Kentucky has had peer review legislation since disabling disease of the central nervous system society as a whole. 1976. In 1977, there was a case that reviewed the that disrupts the flow of information within Keith Johnson, CPA, Robbins Enterprises, peer review legislation and determined that it the brain, and between the brain and the body. and Society Trustee for the Kentucky-Southeast violated Section 51 of the Kentucky Constitution As the disease progresses, severity and specific Indiana Multiple Sclerosis Society Chapter, because the bill’s title matches did not match symptoms may worsen which may require them stated that in 2006 he was diagnosed with a subject matter. In Kentucky, generally courts to need an aid, such as a cane or crutches, and relapsing and remitting MS, and in 2013 had to have ruled that a peer review has to be accessible some will use a scooter or wheelchair because start using a wheelchair full time. While he was to discovery. Peer review happens in a robust of fatigue, weakness, balance problems, or to able to afford to build a home with modifications, manner when it can be done confidentially. assist with conserving energy. Additionally, modifications to home can be expensive to In response to questions by Senator during the course of the disease, individuals may people on a fixed income. A tax credit incentive Alvarado, Mr. Butler stated that the way the be at risk to falls. People with MS typically fall managed by the Kentucky Department of Kentucky courts interpreted the law, the statute in or around their homes and neighborhoods, Revenue could be offered to help people who was to protect the peer reviewers and not the usually while doing basic activities like bathing cannot afford these modifications. A limitation peer review process even though the language and preparing meals. The cost of skilled nursing could be placed on the dollar amount that a says any civil action. There is no statute or in Kentucky is more than $6,000 per month person receives or on someone’s income level. protection that prohibits a plaintiff from the with the state potentially picking up a portion Midwifery Legislation in the facts of a case. Information and facts are always of those costs for some of these individuals. Commonwealth available through discovery. Peer review is about Falls are associated with loss of confidence, Mary Katherine DeLodder, The Kentucky opinions on how to improve patient care in the social isolation, curtailment of activities, and Home Birth Coalition, stated that it is not a matter future and not about the facts. fear of increased risk for more falls. One of the of midwives trying to advance their profession but In response to questions by Representative recommended responses to addressing falls is a matter of families asking for access to midwives Wuchner, Mr. Butler stated that the facts, the practical lifestyle adjustments, and the National who assist with home births. In the 1950s, the medical record, the practitioners, and the care MS Society believes a practical adjustment is an General Assembly passed legislation that providers involved in the case are always available accessible, livable home where individuals and required midwives to have a permit in order to for discovery. Kentucky is the only state that does their families can live safely and with greater practice. In 1975, the administrative regulations not protect the peer review process. confidence. relating to that legislation were amended to say Senator Meredith stated that the lack of Home modifications are changes made to that no new permits would be issued. The idea protection of the peer review is problematic for adapt living spaces to meet the needs of people was that nurse midwives, different from the rural communities, because doctors are reluctant with physical limitations so that they can certified professional midwives, would fill in to be involved in a peer review of a colleague. continue to live independently and safely. The the gaps. Currently, there are only four nurse The intent of the peer review is to improve the modifications may include assistive technology midwives who are attending home births, and the quality of care rendered to a community and or making structural changes to a home. For other 85 practice exclusively in hospitals. There not to be potentially required to testify against a individuals with MS, an accessible home with the are approximately 700 home births per year in colleague. It is to be engaged in true peer review necessary modifications can help them cope with Kentucky that are attended by other midwives and helping them become better practitioners. many of their symptoms, maintain independence who basically have to hide their participation Liz Shepherd, Kentucky Association, stated and live a high-quality life. Although critical for in the births while the medical community that the proposed legislation protects hospitals safety and independence, home modifications overlooks their participation. Concerns and nursing homes from telling the truth, can be expensive and place a large financial about the midwifery legislation introduced shields the facts of what really occurred, and burden on individuals with disabilities and during the 2017 Regular Session are that some encourages and prolongs litigation because facts their families. Costs range from $100 to $50,000 provisions included in the legislation could be are unavailable. depending on the scope of work. In 2015, the addressed better in regulation and that would In response to questions by Senator Kentucky median income of households that meet International Confederation of Midwives Alvarado, Ms. Shepherd stated that medical include any working-age people with disabilities global standards for midwifery education lawsuits are filed and won in other states. Some was $31,800. It is estimated that the cost of living requirements endorsed by the American College states have carved out exceptions. with MS and paying for the care that is required of Nurse Midwives and the American College of In response to a question by Senator Buford, is approximately $70,000 per year per person. Obstetricians and Gynecologists. Ms. Shepherd stated that her interpretation For a middle income wage earner, paying for In response to a question by Senator Adams, of the proposed legislation is the information accessibility modifications may be out of reach. Ms. DeLodder stated that there is unclear from an internal peer review would be shielded An incentive would be an opportunity for people language about the definition for a high-risk permanently from discovery even with the court to receive help paying for modifications. pregnancy, gestational diabetes controlled by order. Georgia, Illinois, Kansas, Louisiana, Maine, insulin or by diet, and limitations if someone had Livable Home Tax Credit Program Maryland, Missouri, New Hampshire, and a previous C-section birth. Abby Carter Emanuelson, Associate Vice Virginia have an existing home modification In response to a question by Senator Buford, President for Advocacy and Activist Engagement, tax credit program or are in the process of Representative Wuchner stated that legislation THE KENTUCKY GENERAL ASSEMBLY 13 that will be introduced in the 2018 Regular Buford, Mr. Milner stated that if a police officer, someone who shows up in the emergency room Session is the same language introduced during fireman, or anyone else assisted in a birth, it no matter what. the 2017 Regular Session. can be handled in ways that are consistent with In response to questions by Senator Representative Addia Wuchner stated other liability limitations. Director Schenk Adams, Director Schenk nor Mr. Milner had that the 2017 legislation would define certified stated that she did not have information on the the percentage of VBACs in hospitals that end professional midwife (CPM) and midwifery, cost of training and education of professional up being an emergency C-section. Mr. Milner create a Certified Professional Midwives midwives. Senator Buford stated that the stated that Ephraim McDowell Regional Medical Advisory Council under the Kentucky Board information could be given at a future meeting. Center refers individuals to facilities who have of Nursing (KBN), require CPMs to follow Mr. Milner stated the situation as outlined in additional resources required to perform a public health laws relating to reporting disease the proposed legislation in Section 7 creates a VBAC. Dr. Estes stated that high-risk multiple and recording vital statistics, require a CPM to provider relationship with a CPM. The hospital births in the western part of the state are sent to keep appropriate medical records, list required would be available for support and intervene as the University of Louisville, but not all multiple administrative regulations to be promulgated by appropriate. Representative Wuchner stated that births are high risk. the KBN, permit the KBN to require a criminal the language was put in the proposed legislation In response to questions by Senator Kerr, background investigation of a CPM applicant, that if something happened to a mother and/ none of the presenters were able to give the make it unlawful to provide midwifery services or baby while in the care of the CPM and after number of OB/GYNs available to perform without permit or operate a midwifery training consultation with hospital staff and then having home births in Kentucky. Dr. Estes stated that program or school without KBN approval, to be transferred to the hospital, the hospital staff the challenge with nurse midwives is there are require reporting of unlawful provision of would not be liable for something that took place limitations on collaboration that determine what midwifery services, provide religious exemption when the mother and/or baby were in the care of can or cannot be done including home births. for traditional birth attendants, list prohibited someone else. In response to questions by Senator Buford, pregnancy conditions for which a CPM may not Representative Bentley stated that liability is Director Schenk stated that if there is a complaint provide services, and provide immunity from a huge reason many doctors have quit delivering about a cultural or religious traditional birth liability for health care professionals from acts or babies. Small rural hospitals are struggling attendant practicing midwifery, the board omissions of a CPM. and even filing bankruptcy because allot more would investigate and ask the attendant for Paula Schenk, MPH, RN, Executive patients are on Medicaid which has a lower verification of the cultural or religious exception. Director, Kentucky Board of Nursing, stated reimbursement rate. Representative Wuchner stated that the birth that if it is the will of the legislature, the KBN Representative Wuchner stated that if attendant would serve only women and families is willing to take the responsibility of regulating someone is going to have a VBAC at home, within that distinct culture or religious group. permitted midwives. a hospital has to be set up and ready for that In response to questions by Senator Jessica Estes, President, Kentucky Coalition patient in case there are complications. Rural Meredith, Dr. Estes stated that nurse midwives of Nurse Practitioners and Nurse Midwives, hospitals cannot afford to keep medical staff on are already licensed and credentialed and have stated that it is appropriate for women to have standby 24/7 just in case there is an emergency. malpractice insurance to cover services. The alternatives to be able to choose how and when In response to questions by Senator CPMs would be an additional group of non- they want to give birth, but there are standards Alvarado, Dr. Estes stated that a VBAC is a high- nurses adding a license in Kentucky. Senator and criteria that must be met for the safety of risk delivery. Director Schenk stated that it is Meredith voiced his concern about who the mother and baby. All home birth deliveries out of the board’s prevue to determine medical would be financially responsible for liability if should be tracked appropriately, CPMs with negligence if a nurse midwife knows about a something went wrong and the CPM does not appropriate education and credentialing should VBAC and does not let anyone know and then have malpractice insurance. be licensed in Kentucky and graduate from there are complications. The incident would be Kentucky HEALTH 1115 Medicaid accredited midwifery programs. The coalition investigated, and the board could find that the Waiver: Summary of Changes cannot support vaginal births after a C-section case did constitute a violation of the standard of Vickie Yates Brown Glisson, Secretary, (VBACs), multiple births, or breech births that practice. Mr. Milner stated that if an OB/GYN Cabinet for Health and Family Services, stated occur in a home setting because they are high- wanted to perform a VBAC in a hospital, it is the that the original 1115 Medicaid waiver was filed risk and at-risk for additional complications. hospital’s obligation to have an operating room with the Centers for Medicaid and Medicare Given the number of CPMs that may exist in and team available and on standby because it is Services (CMS) in June 2016. Revised waivers Kentucky, it is not a financially feasible model such a high-risk birth. Critical access hospitals were filed with CMS in August 2016 and July to have a separate board, but oversight could fall have one operating room and one operating 2017. under a board that already is in existence. room team, so staff would be available for the Kristi Putnam, Project Manager, Cabinet Mark Milner R.N., BA, MHA, MBA, Chief birth, because if there are complications, the for Health and Family Services, stated that Nursing Officer, Ephraim McDowell Regional timeframe is critical. Death could occur if implementation of Kentucky HEALTH Phase Medical Center, and the District Director of the someone does not receive medical help ASAP. #1 will begin January 1, 2018; Phase #2 on April Kentucky Organization of Nurse Leaders, stated Senator Alvarado stated that the liability 1, 2018, and Phase #3 on July 1, 2018. Kentucky that CPMs should have oversight from the KBN, for police officers and any layperson does not HEALTH does not include traditional Medicaid CPMs should be credentialed appropriately, qualify under the definition of the bill and is recipients (aged, blind, and disabled) or former there should be oversight for high-risk births, outside its purview. If there is no protection from foster youth up to age 26. Kentucky HEALTH focus needs to be on public safety, CPMs should liability for a hospital and its staff, advice will covers non-disabled adults and children covered be accountable for the care they deliver as in any not be given over the phone. The hospital staff before the expansion, pregnant women, children, health profession, records need to be clear and would tell the midwife to bring the person to the and the adult expansion population. shared, and there needs to be public reporting. hospital and the hospital would take care of the Adam Meier, Chief of Staff for Policy, In response to questions by Senator patient. Hospitals are required to take care of Office of the Governor, stated that proposed

14 2017 Interim LEGISLATIVE RECORD modifications to the original 1115 waiver community engagement requirement on July 1, Myron Dossett, Jim DuPlessis, Chris Harris, application include static community engagement 2018. All the other counties will be phased in Mark Hart, Dan Johnson, DJ Johnson, Ruth Ann hours, lock-out period for failure to report a after that date. Palumbo, Brandon Reed, Rob Rothenburger, change in circumstances, and maintenance In response to a question by Senator Dean Schamore, and Walker Thomas. of current presumptive eligibility sites. Alvarado, Mr. Meier stated that there is a three- Guests: The Adjutant General, Major Modification to community engagement hours mouth phase in for any new member before General Stephen R. Hogan, KYNG; Michael were proposed to avoid confusion for members that recipient would have to meet the 20- Dossett, Director, Division of Emergency by aligning the community engagement hours hour requirement. Ms. Putnam stated that, if Management; Jarred Ball, Board Administrator, with the Supplemental Nutrition Assistance someone meets SNAP requirements, that person Reorganization of the 911 Services Board; Mike Program (SNAP) requirements for non-exempt is considered meeting the requirements for Sunseri, Legislative Liaison, Kentucky Office of individuals. Non-exempt individuals will Medicaid services. It is not a dual requirement. Homeland Security; and J.D. Chaney, Deputy receive detailed communications and formal In response to questions by Representative Director, Kentucky League of Cities. notices prior to the roll-out in their region. Marzian, Mr. Meir stated that approximately 50 LRC Staff: Erica Warren, Jessica Zeh, The information will include the initial three- percent of Medicaid recipients are employed. The Jonathan Philpot, and Rhonda Schierer. month period and subsequent community cabinet tried to have geographical diversity for the Chairman Robinson moved to adopt the engagement requirement. Even if a member voluntary public forums to get feedback from the June 8, 2017, meeting minutes. Senator Parrett enters a lock-out period, early re-entry will be public. There should be a $20 million savings from seconded the motion. The minutes were adopted. offered through completing a Health Literacy moving from kynect to healthcare.gov to help Pledge of Allegiance or Financial Literacy course and obtaining an pay for changes in Kentucky HEALTH. Secretary Co-Chairman Tim Moore led the committee updated certification of eligibility. Members Brinkman stated that there are approximately members and guests in the Pledge of Allegiance. will be notified of their responsibility to timely 850,000 individuals on the traditional Medicaid Distinguished Veteran report changes at application and recertification roles. Kentucky HEALTH has nothing to do with The Adjutant General, Major General periods through the rights and responsibility traditional Medicaid. Of the 440,000 Medicaid Stephen R. Hogan was recognized and given documents. The expansion of presumptive expansion recipients, approximately 200,000 the distinguished veteran coin in recognition of eligibility is not necessary to ensure timely are able-bodied individual not medically fragile his outstanding service to the country and the enrollment into Kentucky HEALTH. Fast Track and unemployed. If a recipient works 20 hours, Commonwealth. provides individuals an alternative opportunity the recipient is not subject to the community Kentucky National Guard and Department to expedite enrollment by pre-paying their engagement requirement. The MCOs will work of Military Affairs premium obligations and activating coverage with physicians to make decisions on who is General Hogan gave a PowerPoint as early as the first of the month of application. considered medically fragile. presentation on the vision, mission, lines of effort, Waiver modifications can be found at http://chfs. In response to a question by Senator Danny and mobilizations of the Kentucky National ky.gov/kentuckyhealth. The public comment Carroll, Mr. Meier stated that so far, there is no Guard, (KYNG) and the Kentucky Air National period closes on August 2, 2017 at 11:59 p.m. healthcare legislation that has been proposed by Guard, (KYANG). KYNG fully postures leaders In response to questions and comments the federal government that would stop Kentucky and units to respond to a complex catastrophe for by Senator Meredith, Mr. Meier stated that from pursuing the 1115 waiver. the worst night in the Commonwealth. KYNG Kentucky ranks 47th in workforce participation Adjournment delivers a sense of purpose, worth, and well-being rates. Forty percent of health outcomes are There being no further business, the meeting to guardsmen, their families, and employers. determined by socio-economic situations, and it was adjourned at 12:55 p.m. The mission of the KYNG is to provide relevant, is important to take an approach that does not ready forces prepared to respond to federal and just enroll people in Medicaid, but focuses on Interim Joint Committee on state missions. how to get people better health outcomes. The Veterans, Military Affairs, General Hogan discussed current unit focus is to move people out of Medicaid not kick and Public Protection mobilizations and stated that there are 197 Army them off the roles. Everyone who has access to Minutes of the 2nd Meeting guard and four Air guard members deployed. services today, will still have access to services if of the 2017 Interim General Hogan announced that the Derby the Medicaid waiver is approved. July 13, 2017 City National Guard Association of the United th In response to a question by Representative Call to Order and Roll Call States 139 Conference and Expo will be th Jenkins, Mr. Meier stated that the income The 2nd meeting of the Interim Joint September 7-10 in Louisville. Attending will requirement is not a new requirement. If there Committee on Veterans, Military Affairs, and be approximately 3,200 National Guard officers is an unreported income change, the case would Public Protection was held on Thursday, July 13, from all 54 states and territories and over 300 be referred to the Office of Inspector General 2017, at 1:00 PM, in Room 154 of the Capitol defense industry representatives. This event will by the DCBS caseworkers. The OIG will then Annex. Senator Albert Robinson, Chair, called have an economic impact of approximately $9 determine, dependent on resources, whether the meeting to order, and the secretary called the million. to pursue civil or criminal charges. Because the roll. In response to a question from lock-out mechanism for an eligibility change was Present were: Representative Burch, General Hogan stated that part of the original 1115 waiver, IT capabilities Members: Senator Albert Robinson, Co- the National Guard has excellent dialogue with have already begun. Taking a class to re-enroll Chair; Representative Tim Moore, Co-Chair; other countries. will create an automatic trigger into the eligibility Senators Julian M. Carroll, C.B. Embry Jr., Denise In response to a question from system to show if someone is eligible again. There Harper Angel, Ernie Harris, Dennis Parrett, Wil Representative Rothenburger, General Hogan is already a rights and responsibility document Schroder, Whitney Westerfield, Mike Wilson, stated that guardsmen have had a 72 hour available at enrollment. Some regions will be and Max Wise; Representatives Regina Bunch, training and preparation, and a focus on subject to SNAP employment requirement and Tom Burch, Will Coursey, Jeffery Donohue, firefighting and partnering with other civilians THE KENTUCKY GENERAL ASSEMBLY 15 in case any emergency arises during the eclipse Mike Sunseri spoke on the Executive Brian Linder, Reginald Meeks, Phil Moffett, Tim watching event in Hopkinsville. Reorganization Order 2017 – 298. Jarred Ball Moore, C. Wesley Morgan, Jason Nemes, Sannie In response to a question from was at the meeting to help answer any questions Overly, Jason Petrie, Rick Rand, Jody Richards, Representative Harris, General Hogan explained members might have. Mr. Sunseri briefly Bart Rowland, Attica Scott, Tommy Turner, three venues that guardsmen can use to provide discussed the executive reorganization order and Ken Upchurch, and Scott Wells. (Representative water in an emergency situation. The venues said that it is administrative in nature and does David Osborne also attended and sat with the they can use are taking raw water and purifying not change any funding structure. members.) it, having it in tanks, or providing bottled water. J. D. Chaney with the League of Cities spoke Guests: William M. Landrum III and Proactive Planning for Major Events: in opposition of the executive reorganization Pamela Trautner, Finance and Administration Solar Eclipse order and stated that a reorganization via Cabinet; William May, Huston Wells, and Laura Michael Dossett, Director, Division of legislation just went into effect last year for the Ross, City of Frankfort; Hank Hancock; and Don Emergency Management, shared a video of the purpose of adding more local elected officials for Stosberg. pathway of the total eclipse of the sun that will representation and the League of Cities hopes LRC Staff: Judy Fritz, Karen Powell, Kevin occur on August 21, 2017, across the United that when codification of the executive orders Devlin, Michael Callan, Roberta Kiser, and States. Hopkinsville is the global ground zero for does happen, local officials will have a voting Peggy Sciantarelli. the eclipse. There has not been a total eclipse in role. Mr. Chaney expressed disappointment Approval of Minutes 99 years, and it will be 375 years before one will that more local officials are not members of the The minutes of the June 28, 2017, meeting be seen again. With Hopkinsville being the global 911 Services Board but said that the League of were approved without objection, upon motion best spot for the event, there will be an influx of Cities will continue to work with the Office by Senator Bowen. over 100,000 people. He outlined a year’s worth of of Homeland Security to hopefully come to a Recognition of Guests preparation for state services through meetings. resolution. Senator Thayer recognized Lexington The agency has polled all 21 counties in the path Chairman Robinson asked for a motion to Catholic High School student Austin Hamelback; of the total eclipse to see what they will need to take no action on the Executive Reorganization Representative Graham recognized members keep safety a top priority. The counties that are Order 2017 – 298. Senator Embry moved to of Frankfort city and county government; and not in the zone for the eclipse have volunteered take no action on the Executive Reorganization Senator Alvarado recognized a constituent who to have their aircraft in the area to help. FEMA Order 2017 – 298. Senator Parrett seconded the works in children’s services. took note that this is a national event. FEMA’s motion. The motion passed with a voice vote. “Capitol Tower Footprint” – Capital Plaza normal exercises for preparation of an event as Redevelopment large as the eclipse to typically take six months, Other Business William M. Landrum III, Secretary, Finance but it has created it in only 60 days for this event. Co-Chair Tim Moore announced that the and Administration Cabinet, discussed plans for The longest total eclipse view will last 2 minutes Veterans, Military Affairs, and Public Protection the redevelopment of Frankfort’s Capital Plaza and 40 plus seconds in the Hopkinsville area. Committee’s August meeting would be on area. Pamela Trautner, a member of his staff, The path will be 96 miles in the Commonwealth. August 25th at the Radcliff Veterans’ Center and assisted with the slide presentation. A main issues will be transportation when all of stated that committee staff will send out more Secretary Landrum said that the state owns the people begin leaving the Hopkinsville. All of information soon. 44 office buildings with 2.6 million square feet the main roads will be watched for safety issues. There being no further business, the meeting and leases 71 office buildings in Franklin County Mr. Dossett said that the agency will was adjourned. with 1.5 million square feet. The Capital Plaza have crowd control, towing services, portable complex arose from urban renewal 45 years ago, signage, communications, public works, water Interim Joint Committee on and now the state has an opportunity to give the system, firefighting, a mobile command center, State Government property back to the people of Frankfort and shelter locations, cooling centers, bottled water, Minutes of the 2nd Meeting reduce the footprint of the state. The Capital Plaza emergency POD’s, hand sanitation, portolets, of the 2017 Interim is a state-owned crumbling infrastructure with emergency bus transportation, hospital centers, July 26, 2017 multiple spaces and building code violations. EMS, medevac assets, first aid stations, tent Call to Order and Roll Call Structural integrity of the elevated plaza slab and or mobile food vendors, permit inspections, The second meeting of the Interim Joint the drainage system has deteriorated beyond HazMat teams, and social messaging to help Committee on State Government was held on repair. Deferred maintenance in Franklin make this a successful and safe event. Wednesday, July 26, 2017, at 1:00 PM, in Room County alone amounts to more than $194 In response to a question from Senator 154 of the Capitol Annex. Representative Jerry million. Secretary Landrum said he reviewed a Westerfield, Mr. Dossett explained that local T. Miller, Chair, called the meeting to order, and 2007 facility survey of the complex and 2009- people being patient will be most helpful because the secretary called the roll. 2011 feasibility studies by Sherman Carter of the large number of visitors. No threat was Present were: Barnhart and national consultant Tom Minter. been identified thus far relating to the event. The Members: Senator Joe Bowen, Co-Chair; Between 2010 and 2015, state and local officials, event will have a large benefit to the community’s Representatives Jerry T. Miller, Co-Chair, and community and business leaders, and others economy. Kenny Imes, Co-Chair; Senators Ralph Alvarado, have been involved in numerous discussions but In response to a question from Denise Harper Angel, Christian McDaniel, failed to form a consensus or establish a course of Representative Dan Johnson, Mr. Dossett stated Morgan McGarvey, Dorsey Ridley, Albert action. The state has a crumbling infrastructure that there should be no issues with satellite or cell Robinson, and Damon Thayer; Representatives in the middle of historic Frankfort, but it is not phones and that the total eclipse will take one Lynn Bechler, , Tom Burch, John the fault of city leaders. The plan is to move and one-half hours to cross the Commonwealth. Carney, Will Coursey, Jim DeCesare, Joseph forward in partnership with the city, the county, Reorganization of the 911 Services Board, Fischer, Derrick Graham, Richard Heath, and the people of Frankfort. Executive Reorganization Order 2017 - 298 Dennis Horlander, Dan Johnson, DJ Johnson, In FY 2017, 53 events were scheduled at the

16 2017 Interim LEGISLATIVE RECORD convention center. Usage rate was approximately begin on December 13, 2017. Demolition of the last August to a budget review subcommittee, 14.5 percent, and venue revenue was $266,644. Mero Street overpass is scheduled for January 12, he asked when the scope of the project started Tenant revenue was $374,634. About 19,000 2018. Demotion of the Capital Plaza tower and to expand beyond demolition of the tower. square feet was leased to state agencies and tower parking garages will start on January 27, Secretary Landrum said the original focus was approximately 8,000 square feet to the private 2018. Demolition of the Fountain Place shops is on the tower and realignment of utilities. He sector. Most of the tenants have left. FY 2017 scheduled for April 16, 2018. Construction of the began expanding the scope of the Capital Plaza net revenue for the convention center and shops new state office building is scheduled to begin redevelopment about eight or nine months ago. (-$154,681) was over 200 percent lower than in April 12, 2018. The project is estimated to be In talking with the people in downtown Frankfort FY 2016 ($54,900). According to data provided complete by March 2020, but it could be sooner. and the government entities that occupied the by the Tourism, Arts and Heritage Cabinet, the Parcel B—the area now occupied by plaza shops, and after reviewing studies he had estimated direct and indirect economic impact the convention center and plaza shops—has not seen before, he began to question whether of convention center events in Franklin County potential for a P-3 (public-private partnership) the original plan would really work for Frankfort. increased only six percent from 2009 ($16.3 project, based on community vision and He knows the decision to expand the scope was million) to 2016 ($17.3 million), while total planning. The property will probably be available not well received, but in walking the grounds tourist spend increased 36 percent (from $138 in about two years. Once the YMCA relocates during the Expo festival he saw safety violations million to $187.6 million). and once the riverfront becomes available, it is and was even concerned about people being on There have been no upgrades to the intended to return those properties to the city. the elevated pad. He viewed the expansion as Frankfort convention center since it opened in Secretary Landrum said he has offered to partner a new opportunity for the city and the state to 1971. It was originally designed for sporting with the city and the county to assist in the P3 come together and for Frankfort to pursue its events and exhibitions, but the majority of process. In May he met with local legislators, the own vision for the plaza area. He confirmed that bookings are now not sports related. The space mayor, county judge, government and private the new Transportation Building is on a separate design is not well suited for meetings. The finishes tenants, Marc Stone (hotel), and Keith Gallagher power grid. Renovation of the hotel façade are worn and dated. There are no sprinkler or (YMCA). An op-ed was published in the State will be at state expense, and the hotel has been smoke evacuation systems. ADA accessibility is Journal on July 2. There has been ongoing promised to not have any down time during the deficient, and the fire alarm, data, voice, and air community outreach with civic groups and other construction period. conditioning/ventilation systems are outdated. members of the community. When Representative Graham asked Safety is a concern. The building code has been Secretary Landrum said he understands the whether any developers had initially expressed grandfathered since 1971. It would cost $3.3 emotional attachment to the Frankfort convention interest in the area, Secretary Landrum said million to reroute utilities for the convention center, but it is unsafe by today’s building code. that when the state put the property up for center and $18.9 million to bring it into code He believes the plaza redevelopment is a “win” sale there were no responses. He offered to compliance. It would cost an additional $12.3 for the city, the county, and the people who live almost give it away to the city, and there was no million to renovate and expand the center to and work in Frankfort. It will enable them to response—which is understandable, considering meet current needs and market requirements. focus their vision and imagination on a better the negative value of the property. Now that the Secretary Landrum said he appreciates Frankfort. property will be developer-ready, there have that Senate Bill 238 (2017 RS) provided the Senator Thayer commended Secretary been 44 requests for an RFP. Representative authorization for the renewal of the Capital Landrum for his effort and the time he has Graham said his greatest fear is that a new state Plaza. He reviewed a sketch of the proposed devoted to the redevelopment. He urged him to government administration in the future might redevelopment, which includes a new state office elaborate on his personal background. Secretary ask the city and the county to relinquish the area. building and parking garage, plus demolition of Landrum said he served 30 years in the Army, Secretary Landrum said by March 2020 he will the office tower, the convention center, and the taking care of soldiers during times of peace convey the land to the developer for the purpose shops. The hotel would receive a façade upgrade, and war and making decisions that affected of executing the plan of the city, the county, and its parking garage would be relocated. both them and their families. With the rank of and the people of Frankfort. This will put the The YMCA garage would also receive a façade colonel, he retired as the Assistant Secretary of property on the tax rolls, and the city will be in upgrade. The Mero Street and Clinton Street the Army for Finance Operations worldwide. He control of the property. The deed of conveyance overpasses would be demolished. The city would was responsible for the direct support of the First will provide co-ownership. have the opportunity to open up Washington Tank Division and, later on, for moving money Responding to questions from Street from Broadway to Mero Street if the and reestablishing the banking system in Iraq. He Representative Wells, Secretary Landrum said YMCA property becomes available in the future. also worked in Washington, D.C., and is a small the state owns the Kentucky International Secretary Landrum reviewed the planned business owner in a small town. He does not take Convention Center and another convention timeline for the project. The dates are subject his decisions regarding the plaza redevelopment center which the state is refurbishing for $207 to modification. State agencies are scheduled to lightly. Having inspected many barracks while million in Louisville. State-owned buildings vacate the Fountain Place shops by September 29, in the military, he believes that the state’s and are not exempt from building codes. The doors 2017, and private tenants by December 13. The Frankfort’s infrastructure needs to be brought up have been kept open at the Frankfort convention last event at the convention center will be October to standard. Senator Thayer thanked him for his center because it was “grandfathered.” It has 31, and salvage operations will start at that time. service to the country. Representative Miller also received no upgrades since 1971. Rerouting of Conveyance of the property to the developer and commented on Secretary Landrum’s exemplary the convention center’s utilities would require lease signing are scheduled for December 13. It service. a complete upgrade of the building, at which will be a lease back from the developer, and the Representative Graham commended point the Department of Housing, Buildings state will make a one-time payment. Demolition Secretary Landrum for working with local and Construction would have to ensure that of the Clinton Street overpass, the convention officials in an open and willing manner. Recalling the building is code compliant. With respect to center, and the plaza horseshoe is estimated to the Secretary’s testimony regarding the project conveyance of property, the state has worked THE KENTUCKY GENERAL ASSEMBLY 17 with local governments in other communities to testify. facts and figures presented at today’s meeting and many times. Judge/Executive Wells thanked the study them, drive through the plaza area, and Representative Carney said he believes it committee and expressed appreciation to imagine the vision they would want projected to will be a huge win for the local school districts Secretary Landrum for his thoughtfulness and the visiting public. He thanked the members for when the property goes back on the city tax rolls. help in working with the community. He said their service to the Commonwealth and wished Secretary Landrum said absolutely. Given the this is a tough time for everyone because change them good luck in whatever decisions they make. opportunity and the timing, his vision is that the is difficult but that the city and the county are Don Stosberg, a local citizen, voiced his redevelopment can eventually expand to include excited about the opportunity provided by the concern about the planned demolition of the the current YMCA property and also utilize redevelopment. convention center. He stated that the cooperation the great potential of the river as a resource to Representative Nemes questioned why between the state and local officials occurred increase tourism in the city and county. Frankfort would not have to pay anything for the only after the decision on the Capital Plaza The next speakers were William May, property when it is returned to the city. He also redevelopment had already been made. It is his Mayor of Frankfort, and Huston Wells, Franklin asked how much the state’s payment to the city understanding that for over 30 years the city and County Judge/Executive. Laura Ross, city in lieu of property tax would be reduced. Mayor county and Kentucky State University paid about attorney, assisted in the slide presentation. May said that when the capital plaza project was 100 percent of the debt service for construction Mayor May said the city has been asked to begun the city contributed about $1.5 million of the convention center. That should allow them develop a strategy for redevelopment of the to the project. The state’s payment in lieu of standing with respect to its disposal. Tearing Capital Plaza area, including the site of the taxes has also been substantially less than a tax down the convention center will have a great existing convention center. The city is working that is based on square footage of the buildings. impact on the community. A 2004 report during to design a community engagement process for a He noted too that the city had provided fire the administration of Governor Fletcher included multiphase redevelopment strategy that includes and police protection for the complex and had a recommendation for a convention center the Capital Plaza area, greater downtown, and to purchase more than the typical amount of annex. It is widely believed that the convention adjacent corridors, including the Kentucky River. necessary equipment. center would have had more bookings if it offered The project team consists of representatives of Representative Graham said he learned meeting rooms. This could be accomplished by the city, fiscal court, Downtown Frankfort Inc., from the city’s finance director that the state had rehabbing the existing center or adding an annex Frankfort/Franklin County Tourism, and the contributed $1.5 million toward construction of to the building. Instead of tearing it down, it Kentucky Capital Development Corporation. The the Capital Plaza and that the county, including could be turned over to the city. goals are to have an executable vision designed Kentucky State University, had also contributed Mr. Stosberg questioned the credibility of by the citizens that will help transform Frankfort; about $800,000. The city and the county have the cost estimates provided in the convention to build upon existing plans and market studies, contributed toward maintenance and also to center analysis. He said he had just spoken with including the 2012 Riverfront Development settle the construction debt for the convention a developer who said that the estimate to reroute Plan, 2014 Cultural Asset Inventory, and the 2017 center. Payments began in 1970 and continued utilities was much too high. He recommended Downtown Market Study; and by December until 2000. He also noted that when the new that the committee thoroughly examine all of 2017, to deliver a public input plan to the state Transportation Building was built, the city had to the numbers and that that all options for the Finance and Administration Cabinet. There will pay in the millions of dollars for a new fire truck convention center be considered. He questioned be public forums to allow citizen input in the that would be capable of elevating the ladder to whether SB 238, which authorized renewal process. the top of the building. of the Capital Plaza complex, also authorized Mayor May said that, with the assistance of Representative Morgan asked whether there demolition of the convention center. He advised Secretary Landrum, Secretary of the Executive are any plans to renovate the hotel. Marc Stone, everyone to look at the redevelopment project Cabinet Scott Brinkman, the city partnered with who was present in the audience, said there are carefully to avoid 50 years from now possibly the Coast Guard, the Kentucky River Authority, plans for some renovation and that there will be having to tear down something else that was not state agencies, and others in a recent project significant work done on the hotel façade. well conceived. to remove abandoned houseboats along the Citizen Testimony Kentucky River. The city paid for the project, C. M. “Hank” Hancock, a local citizen and Other Business which came in under budget by several thousand former state legislator, spoke about the 21 years Representative Miller announced that the dollars. He thanked all the partners on that he served in the House of Representatives. He next meeting would be a joint meeting with the project. He said, hopefully, the redevelopment said that during those years the legislators he Interim Joint Committee on Local Government strategy will also provide an opportunity to served with worked toward the best outcome on August 23 in Richmond, Kentucky, at 10:00 remove outdated structures that need to be for the Commonwealth. There may have been a.m. at the Department of Criminal Justice replaced and that the Frankfort community will disagreement, but the effort by all was sincere. Training. A luncheon and tour will be available. be supportive of the strategy. Today the committee is discussing some drastic With business concluded, the meeting was Mayor May said the city will pay a substantial decisions involving millions of dollars of state adjourned at 2:15 p.m. amount to a consultant for the redevelopment, property. When he came to the legislature in hopefully in partnership with fiscal court. The 1974, the Capital Plaza project had just gone Interim Joint Committee on city does not have the internal expertise to into “full swing.” It was a true bipartisan effort, Licensing, Occupations, and determine what the community would support begun during the term of Democrat Governor Administrative Regulations if a new multi-use facility is built. It could be Ned Breathitt and finished during the term of Minutes of the 2nd Meeting a sports arena, a performing arts center, or a Republican Governor Louie Nunn. He urged of the 2017 Interim convention center that could be utilized for the members, as they deliberate the needs of the July 14, 2017 meetings and state employee training purposes. Commonwealth, to also consider the needs of Call to Order and Roll Call He thanked the committee for the opportunity the capital city. He suggested that they take the The 2nd meeting of the Interim Joint

18 2017 Interim LEGISLATIVE RECORD Committee on Licensing, Occupations, and the licensing board had an experience clause. The bottom five. The four year training program Administrative Regulations was held on Friday, clause required the builder to acquire three or meets guidelines of federal standards. July 14, 2017, at 10:00 AM, at Country Boy more signatures stating that he or she had been Carolyn Reynolds, owner of United Brewing Company, 108 Corporate Boulevard, working as an electrical contractor for 5 or more Industrial Services, Louisville KY, said if the Georgetown KY. Senator John Schickel, Chair, years before the board would issue a license. This bill reduces the standards of training there will called the meeting to order, and the secretary clause no longer exists. Another issue during the not be anyone who knows her line of business. called the roll. 1970s was lack of required liability insurance. The reason for licensing was to regulate safety Present were: Now liability insurance in the amount of five and efficiency. No one who was grandfathered Members: Senator John Schickel, Co- million dollars is common. in was tested, but only had to prove they had Chair; Representative Adam Koenig, Co-Chair; Presently, each company is required to been working as an electrician for five years. This Senators Joe Bowen, Jimmy Higdon, Christian have an electrical contractor’s license, obtained dilutes the industry’s skill set of requirements to McDaniel, Dan “Malano” Seum, and Damon through a test relating to business. Each be a master electrician. Current requirements Thayer; Representatives Al Gentry, Dennis company must have an electrician master’s for a journeyman license are 600 hours of Keene, Chad McCoy, Jerry T. Miller, C. Wesley license, obtained by passing a test related to the education, four years of on the job training, and Morgan, Kimberly Poore Moser, David Osborne, National Electric Code. Each company must a proficiency test. Most states do not reciprocate Ruth Ann Palumbo, Phillip Pratt, Sal Santoro, have at least one licensed electrician on every with Kentucky because of the grandfather clause. Arnold Simpson, Diane St. Onge, and Walker job site. That license can only be obtained by Electricians who work for her in multiple states Thomas. passing a test related to the National Electric have commented that the Kentucky test is the Guests: Representative Lynn Bechler; Mark Code. Electricians and state electrical inspectors easiest to pass. Gary, Holland Electric, Mark Kramer, Townsley are better educated today. In response to a question from Electrical Contractors, Robert Weiss, Executive The industry is safer today; however, Representative Koenig, Ms. Reynolds said there Director, Kentucky Home Builders Association, requirements are more stringent than necessary, are two tests, a journeyman and a masters, the Troy Corrigan, Corrigan Electric, Carol Reynolds, which is creating a crisis in the electrical first test is less complicated. Journeyman, after United Industrial Services; Jeff Hinckley, HVAC workforce. The bill that will be proposed for the passing the proficiency test and working in the Services, Glasgow, KY, Jerry Douglas Price, 2018 Regular Session basically keeps the same field two more years, can take a more difficult Big Sandy Heating and Air, Prestonsburg, KY, rules but will lessen training time, so that if a test and become a master. Mr. Carrigan said Leonard Heuser, ACCO, Louisville, KY; Daniel person worked four years, the person is eligible that Experior conducts the proficiency test, Harrison, Partner, Country Boy Brewing, to take the electricians test, or two years in a two- adding that the problem with the attrition of Adam Watson, Against the Grain Brewing, The year approved training program. Ohio is taking electricians was the grandfathering, and those Kentucky Guild of Brewers. Kentucky’s electricians across the river to work electricians now leaving because of their lack LRC Staff: Tom Hewlett, Bryce Amburgey, because its law does not require a journeyman to of knowledge. Mr. Kramer said the change he is Jasmine Williams, Melissa McQueen, and Susan have a license; only a master electrician must be asking for is to shorten the requirements for the Cunningham licensed for a job. journeyman test. The journeyman is working for Welcome Mark Gary, Holland Electric Company, Inc. a master electrician who plans the design and Senator Damon Thayer, and Representative Hopkinsville, KY, said in 2003, 4,203 electricians circuitry layout. Reciprocity is a problem in part Phillip Pratt, along with Daniel Harrison, were grandfathered a license for electrical due to Kentucky grandfathering and because of Country Boy Brewing, welcomed committee work. Similarly, 17,183 master electricians Kentucky’s stringent rules for licensing. members to the new brewery and tap room. Mr. were grandfathered. Current data on renewed In response to a question from Representative Harrison added that he appreciated the support electrical license applications is 5,805, with Pratt, Mr. Corrigan said there is a shortage in of the legislature in expanding the micro brewing only 2,220 active. Master electrician renewal the electrical workforce. One problem is getting industry. applications totaled 19,561; active today are people trained to state and federal standards. Mr. Minutes 9,117. With half of the workforce gone, the Kramer added that the younger work force is put The minutes of the June 7, 2017 meeting electrical industry needs help. off by the amount of training required to become were approved without objection. Bob Weiss, Executive Director, Home an electrician. Licensure for Electricians Builders Association of Kentucky said there In response to a question from Representative Sal Santoro explained that is a severe workforce shortage in the industry. Representative Keene, Mr. Kramer said everyone Senator Whitney Westerfield would be the Two of the local chapters have schools teaching has a different type of work they prefer, some primary sponsor for the bill that was being electrical, plumbing, heating and cooling and excel at residential work while others prefer discussed today, but Senator Westerfield had carpentry. He said safety is the main goal. If industrial work. another obligation so Representative Santoro shortening the number of years required to In response to a question from Senator was filling in. become a journeyman electrician helps grow the McDaniel, Mr. Corrigan said in order to hold Mark Kramer, President of Townsley workforce, his industry will support the idea. a state license for a journeyman a person must Electrical Contractors in northern Kentucky, Troy Corrigan, Corrigan Electric, have four years of experience, and six years for said he started his business in 1970. When he Louisville KY, representing the Independent a master license. Ms. Reynolds said that it is started, there was no apprenticeship program or Electrical Contractors Association said he was possible to learn to wire a house in two years. requirement for electrical licensure. There were against changing the training to two years. The However, in two years it is not possible to also a few areas that required a master electrician to association does not believe the National Code learn how to work in the industrial side of the have a license, with all other employees working electrical requirements can be learned in two electrical work. under that license. Prior to 2003, the master’s years. Kentucky is recognized as one of the top In response to a question from license served as the contractor’s license in five states for electrical safety. Reducing the Representative St. Onge, Ms. Reynolds said a Kentucky. In the 1970s, in some areas of the state, training to two years will put Kentucky in the person with extensive knowledge of the National THE KENTUCKY GENERAL ASSEMBLY 19 Electrical Code could possibly pass the written in Kentucky. The Tap room experience with special product test without working experience. Leonard Heuser, ACCO, Inc., Louisville, releases and collaborative beers and special Senator Bowen said that this situation was a said he was a licensed HVAC contractor with 39 events such as the Kentucky Fest of Ales and reflection of the problem in society today. There years of experience. He said he is a small business CraftBash help boost the tourism economy. are many fields with the same set of problems. owner. Over the years property management The Guild will have a legislative request for Younger people have little interest in careers companies have been using unlicensed employees consideration during the 2018 General Assembly. other than technology. to transition from simple maintenance tasks to Items they wish to address are privileges or HB 236 (17RS BR 1011) – AN ACT making major repairs to HVAC equipment and prohibitions among producers, and changes relating to organ donation. then bill property owners. HB 519 clarifies the to enhance craft brewers ability of compete Representative Lynn Bechler said that this definition of routine maintenance and repair with craft brewers in bordering states as well as bill passed the House during the 2017 Regular work and who performs this work. nationally. Also, to align statutory provisions Session. Organ donation is supported in Another component of this bill is with modern business practices. Their priorities Kentucky by asking people who have a driver’s establishing a 180 day grace period in the are to attract and grow business, broaden the tax license to become organ donors. People who event of the death of a company license holder. base, and generate revenues. agree have their choice designated on their Currently if a license holder dies, that company Senator Seum said in 1966, at his restaurant, driver’s license. Hospitals are required to contact is immediately operating as an unlicensed he had home grown Louisville beers on tap such the Kentucky Organ Donor Affiliates, or KODA, contractor. This will also apply to licensed master as Oertles ’92, Falls City, Fehrs, Wiedemann’s, if someone has indicated they want to donate plumbers and electricians. Sterling, Hudepohl, and many others. One at a organs. But coroners and medical examiners In response to a question from Senator time the bigger companies bought these smaller are not held to this requirement. Time is of the Higdon, Mr. Heuser said there could be changes ones, and people who worked in those breweries essence in organ transplant, there is only a 24 to make the definition of major repair less vague. in the neighborhood lost their jobs. Now there are hour window. HB 236 will require a coroner or Jerry Price, Big Sandy Heating & Cooling, 18 small breweries in Jefferson County because medical examiner to notify KODA. Paintsville, KY, stated that he, as a small business of this industry and the legislative changes. In response to a question from Senator owner, was present to support this legislation Administrative Regulations Seum, Representative Bechler said penalties as a representative of the Kentucky Association 201 KAR 34:020, 201 KAR 34:030, and 201 would be the same for coroners and medical of Master contractors. He told the members KAR 34:050. examiners as they are for hospitals. that if he died today, 18 employees would be Marcus Jones, attorney for the board, said Licensure for the Building Trades. out of work. Having 180 days would give his that the board is now going to offer a continuing Jeff Hinkley, HVAC Services, Glasgow, journeyman time to take the test and keep the education to licensees and to Art Therapists said HB 519 from the 2017 regular session business open. Supervisors. Therefore the board has created a allows people from out-of-state, with military The Microbrewery Industry in Kentucky. fee to process the examination. The exam will experience of 5 years that is equivalent to a master Adam Watson, one of the owners of be given on paper as well as online. The online HVAC licensure experience requirement in Against the Grain Brewery in Louisville KY and exam will be maintained by the state with a $10 Kentucky to test for a HVAC license. This clause President of the Kentucky Guild of Brewers, as per credit hour fee assessed for each examination leaves out the people that are Kentucky residents well as Daniel Harrison, co-founder of Country up to three credits. Mary Beth Orton, Chair of who want to pass their business on to their Boy Brewing and Vice-President of the Kentucky the Board of the Kentucky Board of Licensure children who have worked in the family business Guild of Brewers thanked the members of the for Professional Art Therapists said there would their entire life and have on-the-job training. committee for their support in the growth and be new training based on the creation of the Similarly, a person who has run a company for success of the industry. continuing education exam. multiple years, but has not worked in the field, Mr. Watson said growth in the craft brewing Representative Koenig was recognized cannot sit for a master’s test because they do industry is nationwide. The economics of craft to announce that the August meeting would not have five years of working experience or a brewing in Kentucky are examples of small be moved from its regular date, August 11th to journeyman license. This legislation will allow a businesses creating jobs and expanding the tax August 18th and 10:00 AM in Room 129 of the parent to pass a business to a child by letting the base. The craft beer industry made up more Annex. child take the test. than 424,000 jobs nationwide in 2016. Kentucky There being no further business to come Also, regarding transferring a business, now has 53 licensed craft breweries and 19 before the committee the meeting was adjourned Kentucky law currently states that a master additional brewery locations in the planning at 11: 17 AM. contractor is allow to own one business. stage. Kentucky craft brewers directly employ Therefore if an owner wanted to sell his business, more than 600 people. Brewers partner with the a prospective buyer who is already in business Kentucky Department of Agriculture; Tourism, Interim Joint Committee on would not be able to buy the second business and Arts, and Heritage Cabinet; and the Economic Local Government operate it as a separate business, retaining its old Development Cabinet. Currently Kentucky Minutes of the 2nd Meeting th name that customers identify with. Instead, the ranks 46 in breweries per capita. The industry of the 2017 Interim buyer would be required to incorporate it into his has a ripple effect across the state benefiting July 26, 2017 or her existing business. This could potentially manufacturing, construction, transportation, Call to Order and Roll Call harm the business by reducing its name affiliate industries, and service industries The second meeting of the Interim Joint recognition in the area. The language proposed supported by the craft beer industry. Committee on Local Government was held in the bill would allow a contractor to own more Craft breweries are locally owned and on Wednesday, July 26, 2017, at 10:00 AM, in than one business with restrictions included to support local economies, businesses, charities, Room 154 of the Capitol Annex. Representative require at least a 25 percent ownership in each tourism, and farmers. Tap rooms and festivals Michael Meredith, Chair, called the meeting to firm and require the contractor to be domiciled draw a positive economic impact for Kentucky. order, and the secretary called the roll.

20 2017 Interim LEGISLATIVE RECORD Present were: the public. More individuals in Kentucky have ordinances; audits; and notice of public hearings. Members: Senator Joe Bowen, Co-Chair; access to the internet than who subscribe to the While the means by which counties carry out Representative Michael Meredith, Co-Chair; local newspaper. The newspaper in Hopkinsville, their duties continue to evolve, statutes keep Senators Ralph Alvarado, Denise Harper with a population of 32,000, has 6,500 subscribers counties reliant on forms of communication that Angel, Christian McDaniel, Morgan McGarvey, some of which do not live in the city. In the first are not always timely for the people or the press. Dorsey Ridley, Albert Robinson, Wil Schroder, six months of 2017, the City of Hopkinsville’s The explosion of social media options, including Dan “Malano” Seum, and Damon Thayer; website has been accessed by over 53,000 users Facebook and Twitter accounts operated by Representatives Danny Bentley, George Brown and has had almost 163,000 page views. It seems newspapers, have changed the way information Jr, Ken Fleming, Kelly Flood, Toby Herald, DJ it is not only more economically feasible to notify is released by not only the press, but also by Johnson, Kim King, Adam Koenig, Stan Lee, the public via the governing body’s website, but elected officials, and has changed the way it is Brian Linder, Jerry T. Miller, Robby Mills, Phil it also provides notification to a larger audience. absorbed by the public. Moffett, Steve Riggs, Rob Rothenburger, Attica The public is beginning to expect cities to use Counties are not suggesting that they Scott, and Arnold Simpson. their website, as well as other social media should turn solely to digital forms of public Guests: Representative Dan Johnson, House avenues, to inform the public. notice. A deeper look into the blending of both District 49; J.D. Chaney, Kentucky League of Each 8.5 x 11 printed page of an ordinance published and digital content would recognize Cities; Christine Upton, Kentucky Municipal costs the City of Hopkinsville approximately current and future trends and practices of public Clerks’ Association; Shellie Hampton and Rich $200 to publish. Most ordinances are more than information consumption, while maintaining Ornstein, Kentucky Association of Counties; Eric one page. Because of this cost, cities often elect good stewardship of tax dollars entrusted Kennedy, Kentucky School Boards’ Association; to publish ordinances in summary which gives to county governments. During the last few Robin Kinney and Tracy Goff-Herman, Office of a more narrow scope of the law to the public legislative sessions, attempts have been made the Commissioner of Education; Jody Maggard, than publishing the full ordinance. The City of to do that blending. In 2014, SB 101, sponsored Perry County School System; Commissioner Hopkinsville averages $15,000 a year in required by Senator McDaniel, would have allowed for Sandra Dunahoo and Neil Cornett, Department publication expenses, which may not seem like the option to post public notice content online for Local Government; Commissioner Terry a lot of money compared to the city’s overall instead of purchasing newspaper space. Senate Manuel, Jim Cundy, and David Kirkpatrick, budget, but to smaller cities it is. Bill 101 would have required one ad detailing Department for Libraries and Archives; David Regarding the statutes that address rates the subject matter, noting the website where Thompson and Ashley Pack, Kentucky Press that newspapers can charge for publication of the full document could be viewed, and listing Association; Marc Wilson, Top Shelf Lobby; public notices, KRS 424.150 indicates public a phone number of the local government for Commissioner Steve Milby, Duane Curry, and agencies shall be charged the lowest rate generally any questions. The website would have been David Startsman, Department of Housing, charged for advertising, KRS 424.160 indicates maintained by the local government or a third Buildings and Construction; Jack Couch, KIPDA; the rate shall not exceed the lowest non-contract party under contract to provide electronic Vince Lang, Kentucky County Judge/Executives classified rate paid by advertisers. Additionally, notices. The ad on the website would have been Association; Bill May, Kentucky County Clerks’ volume discounts given to commercial available for a set amount of time, and the bill Association; and Judy Taylor, Lexington-Fayette customers shall be extended to public agencies. would have required proof of the posting. Urban-County Government. Since newspapers’ records are confidential, there KACo is ready to work with the stakeholders LRC Staff: Mark Mitchell, John Ryan, Joe is no way to verify that newspapers are charging to continue to provide timely public notice in Pinczewski-Lee, and Cheryl Walters. their lowest rates as required by statute. The City hopes of engaging its constituents at the local Approval of Minutes of Hopkinsville often receives publication proofs level. Upon the motion of Representative Flood, and quotes that seem excessive in cost compared Mr. Eric Kennedy, Director of seconded by Representative Rothenburger, to other publications it has had in similar size. Governmental Relations with the Kentucky the minutes of the June 28, 2017 meeting were It is not unless the city points that out that it is School Boards Association (KSBA), said that the approved. offered a lower rate. cost of publishing notices in the newspaper is a Local Publication Requirements The purpose of KRS Chapter 424 is to provide concern for KSBA because it represents school Mr. J.D. Chaney, Deputy Executive Director notice to the public of legislative activities. There boards, which are elected to manage the affairs of the Kentucky League of Cities (KLC), said are no cities opposed to providing the public of the communities’ schools. Among the most that the League is interested in finding the notice, and KMCA fully supports transparency. important duties of school board members is to most cost efficient and effective way for local KMCA would like to do it in the most cost properly, effectively, and transparently use the governments to publish required notices and efficient and effective way. state funds appropriated by the General Assembly appreciates working with Mr. David Thompson Representative Meredith said that the and to provide educational opportunities to of the Kentucky Press Association. There must Program Review Committee’s report could be children. To supplement state support, school also be an effective way to engage the public and viewed on LRC’s website, or staff could send a boards also have tax levying authority to raise find the right balance. The Program Review and copy upon request. additional funding locally. Investigations Committee compiled a report on Ms. Shellie Hampton, Director of Since 2008, the split between local support the costs and policy considerations for state- Government Relations with the Kentucky and the SEEK formula has shifted significantly. mandated local public notices. He encouraged Association of Counties (KACo) said that the While the SEEK has been largely protected from members to read the report. areas for which a county is mandated to publish budget reductions, school costs have increased Ms. Christine Upton, President of the in a newspaper include financial statements; causing local school boards to increase local Kentucky Municipal Clerks Association budgets; bids, leases, and non-professional school taxes to generate the necessary funds. (KMCA), said that the KMCA feels strongly contractual services; local administration Pension costs will increase next year, and that KRS Chapter 424 should be updated to regulations; taxes; election ballots; delinquent absent comprehensive tax reform that brings in incorporate modernized strategies for informing property tax lists; invitations to bid on bonds; additional revenues, KSBA understands that all THE KENTUCKY GENERAL ASSEMBLY 21 government programs will be faced with budget of Finance and Operations with the Kentucky The Kentucky Infrastructure Authority’s cuts, possibly even SEEK. Department of Education, said that the (KIA) State Revolving Funds (SRF) meets the The KSBA supports 2017 SB 118, a proposal flexibility for publishing annual school financial Environmental Protection Agency’s public which the KSBA hopes will pass the next session statements afforded in budget language was the awareness requirements by identifying approved of the General Assembly. SB 118 would have right thing to do. It was efficient and satisfied the projects on the website. SRF environmental codified what was the practice for over a decade local constituents. The vetoed budget language reviews requiring public notice must comply through budget language, which was to allow required returning to the previous standard of with KRS Chapter 424. Public comment on the annual financial statement to be posted on newspaper publication. environmental review are conducted on the the school district website in lieu of newspaper Mr. Jody Maggard, Finance Officer for the Kentucky’s Division of Water website. SRF publication. A survey of school district expenses Perry County School System, noted a sharp borrowers are required to bid projects for no less before and after the budget language was vetoed decline in unmined minerals tax revenue. than seven days and no more than 21 days in the for last year, demonstrated that publishing the The Kentucky Association of School Business local newspaper of largest circulation. information in newspapers cost school districts Officers (KASBO) conducted a survey of the In response to a question from statewide almost $600,000 more. In light of the school districts to obtain the cost of publication Representative Meredith, Mr. Cornett said DLG “perfect storm” of financial stress districts are of financial statements from 2015 to 2016. In houses budgets and financial statements of local under, this money simply must be used in the 2015, school districts paid a total of $28,945.38 governments. classroom. to advertise the school district’s financial Regarding Special Purpose Government The KSBA is asking the legislature to help information which is an average of $174.37 per Entities (SPGEs), failure to submit information or as school district leaders find every possible district. In 2016, school districts paid a total of submission of noncompliant information results efficiency that can be used to free up every cent $267,284.22, an average of $1,610.15 per district in a published notice subject to KRS Chapter it can to provide educational services. KSBA not including Jefferson County. Publishing the 424. Dissolution of an SPGE must be published has met with the Kentucky Press Association financial statements will cost Jefferson County subject to KRS Chapter 424. Commissioner (KPA) to find ways to make the annual reports school district in excess of $500,000 in 2017. Dunahoo added that there is public internet costs as low as possible. The KSBA is grateful for School districts are in no way advocating for access to DLG’s database. KPA’s help and has sent KPA’s suggestions to all a lack of transparency. Each school district has a Commissioner Terry Manuel of the school districts for the reports that will soon be website, uses social media, and has open board Kentucky Department for Libraries and Archives appearing in the local newspapers. meetings, with availability for the public to speak (KDLA), said that KDLA does not publish the At the same time, KSBA believes in taxpayer on any matter that is of concern. The Program same types of notices as other entities but is transparency over use of tax dollars. Many issues Review Committee’s report found that 85 percent interested in the issue from an archives and that are possibly of concern with internet notice of Kentucky households have a computer. management perspective. only are not as much of an issue for schools. Commissioner Sandra Dunahoo of the Mr. Jim Cundy, Branch Manager of KDLA’s Every school district in the state has a website, Department for Local Government (DLG), Archives and Records Management Division, which follows a standardized web address format said that DLG provides guidance to local said that new and various ways of distributing and is subject to state and federal restrictions for governments and special purpose government information have become legion with the accessibility. Many types of legal information are entities. DLG also serves as a conduit for federal advent of widespread computer networks. For already required to be posted on the websites, monies to local governments and oversees the example, newspapers are online, and social and, in fact, the annual financial report is also state implementation of those federal programs media sites such as Facebook have become posted online now along with monthly detailed which involves advertising. Sometimes in order standard communication tools. Young people financial information. The posting online is in to meet federal and state requirements, two are increasingly going online for news, while addition to newspaper publication. If school advertisements must be submitted. DLG is neighborhood and local agency websites provide districts are allowed to present information committed to accountability and transparency. avenues to reach the public quickly and, literally, on the internet, it will allow for adequate and Mr. Neal Cornett, Executive Assistant where they live. Clearly, this presents local transparent public notice just as it did during to the Commissioner’s Office of DLG, said government agencies with opportunities to reach the many years it was allowed through budget that under the Office of State Grants, the Area their constituents in a much more efficient and language. Development Fund’s and the Joint Funding cost-effective manner than in the past. Senate Bill 1, which passed unanimously Administration’s advertising requirements are However, this presents many issues from an during the 2017 session of the General Assembly, limited to purchases of goods and services under archives and records management standpoint. contained a similar provision that was codified the Model Procurement Code (MPC). Coal and First, public notices distributed via digital media into law for the school report card, which mineral severance expenditures are likewise and maintained in digital formats are public until that time was also to be published in the governed by the MPC. The Local Government records. Public records, such as legal notices, newspaper but was subject to the same budget Economic Assistance Fund (LGEAF) requires a are subject to archives and records management provision allowing for internet posting. School public hearing that must be advertised pursuant requirements as established in KRS 171.410- districts were required to publish the report to KRS Chapter 424. 171.740. One of these requirements is that these card in the newspaper for last year, but KSBA is Regarding the Office of Federal Grants, materials have a records retention period that grateful for SB 1’s provision for the full report to the Community Development Block Grant is approved the State Archives and Records be posted on the internet. Senate Bill 1 will allow (CDBG) Program guidelines require local Commission and applies to the information school districts to save money to be used for the governments to follow state and federal law on in the record, regardless of its format. Local students in the classroom, and KSBA hopes a public advertisements. Public meetings for local agencies must be able to make records accessible similar change will be made for annual financial governments applying for the Recreational Trails for the entire life of the record in order to reports and other notices. Program and the Land and Water Conservation meet obligations such as documenting agency Ms. Robin Kinney, Associate Commissioner Fund may be done online or in a local newspaper. business, protecting the rights of citizens, and

22 2017 Interim LEGISLATIVE RECORD responding to open records requests. the KSBA and gave them suggestions about they are not making money. Notices are already A legal notice is a permanently valuable how school districts can decrease the cost of aggregated and placed online by the Kentucky record because it provides proof that local publishing their financial statements. In KRS Press Association. agencies have complied with the terms of KRS 424.220, school districts are required to list In response to a question from Chapter 424. If records are disseminated via only payments of $1,000 or more to vendors. Representative Scott, Ms. Upton said examples digital media, it is reasonable to assume that local Each vendor is listed but one time with the of social media for publication include websites, agencies have created them digitally and will total amount paid to that vendor for the year. Facebook, Twitter, Instagram, and Snap Chat. want to retain them in a digital format as well. However, KPA discovered that many school Representative Linder commented that he In the case of legal notices published by local districts did not limit the financial statement to was going to talk to his constituents in his district government agencies, this means preserving $1,000 or more. Most listed all vendors and total to see what they prefer in regard to internet a digital record permanently. Changes in payments. KPA told the KSBA to make sure its publication options. It should be left up to the technology and the susceptibility of these records members do not list payments of less than $1,000 taxpayers. to be altered electronically present challenges to total to any vendor. In discussing that with KPA’s In response to a question from Representative preserving them. Board of Directors, KPA has already approved its King, Mr. Thompson said publishing is not just The Archives and Records Management support to increase that minimum threshold to printing but putting the newspaper together for Division care deeply about and take very seriously $5,000. distribution. the proper management of local government The KPA also suggested that KSBA have its In response to a question from records in a digital environment. school districts provide the statement in a text or Representative King, Mr. Kennedy said that he Mr. Mark Wilson with Top Shelf Lobby word document format so that newspapers can envisioned active notifications in the near future and representing The Gannett Company, said easily take out any extraneous white space and for the receipt of public notices, such as “push” newspapers offer an active readership, and the also reduce the point size. Unfortunately, several notifications to alert subscribers of certain media public is more likely to see the advertisement in school districts last year provided portable of the existence of notices online. one rather than on a website as noted in LRC’s document format (PDF) files of their financial Senator Schroder encouraged members study. Also noted in the study is that less than 1 statements and it was impossible for newspapers to review the list of school districts and their percent of a local government’s budget is spent to make the necessary adjustments. publishing costs. He said he would be filing SB on public notices. Gannett stands ready to look There have been attempts in other states 118 again for the 2018 session. The taxpayers are into solutions to provide transparency in a more to move notices to the web. One state—either subsidizing newspapers. School money is being cost efficient manner as it pertains to public Wyoming or Utah—is the only state to pass it used for notifications, too. notice advertising. legislatively but that was reversed soon after Consideration of Referred Kentucky Mr. David Thompson, Executive Director when it became obvious it was not workable. Administrative Regulation of the Kentucky Press Association (KPA), said Open government or transparency is a The committee considered referred that discussing public notice advertising has three-legged stool. One leg is open meetings, Administrative Regulation 815 KAR 7:120, been at the forefront of KPA’s preparations every one is open records, and one is public notices. promulgated by the Department of Housing, legislative session since 2005 when talk about Without all three, there is no balance for Buildings and Construction (HBC), which moving notices to government websites started. government transparency. established the uniform Kentucky Building In September of 2005, KPA sat down with Representative Meredith commented that Code. Commissioner Steve Milby, Mr. David KLC, KACo and county commissioners and the committee understands that there needs to Startsman, General Counsel, and Mr. Duane magistrates’ representatives to see what could be uniformity and balance between government Curry, Director of Building Code Enforcement be changed in KRS Chapter 424. KPA, on its transparency and cost. represented the Department and discussed the side, knew that concessions had to be made In response to a question from Senator changes relative to greenhouse structures and to reduce the costs to governments. Over two McDaniel, Mr. Kennedy said that in the Jefferson plans review fees therefrom. months, groups discussed particular segments County Public School’s case, the veto of the In response to a question from of KRS Chapter 424 and worked on language budget provision took everyone by surprise, and Representative Riggs, Mr. Curry responded that that was agreeable to all. It was then presented that a PDF formatted notice was used. The cost HBC was working with Senator West during to each respective board, got their support, and for the school had they advertised fully would the session on the subject encompassed in the came in 2006 with a rewrite of the Public Notice have been $360,000. regulation. Advertising Law. In the end, the concessions In response to a question from Senator Representative Meredith stated that a that KPA made resulted in about a 32 percent McDaniel, Mr. Thompson said that the written report of the review would be submitted decrease to the costs to public agencies. During qualification of a newspaper is keyed on where to the LRC. the 2006 session of the General Assembly, HB the newspaper’s main office is located. The type Representative Meredith announced that 171 passed, co-sponsored by Representatives Lee of mailing permit and paid circulation play a the next meeting will be August 23rd at the and Riggs. role, too. Department of Criminal Justice Training in Last year, KPA worked with the LRC’s Representative Miller commented that Richmond. Program Review Committee staff on the local publication requirements constitute an There being no further business, the meeting previously mentioned study. The results of that unfunded mandate and need to be modernized. was adjourned at 11:40 a.m. study found that, generally, the expenses for In response to a question from Senator public agencies to meet the requirements in KRS Bowen, Mr. Thompson stated that it could be five Chapter 424 and publish their notices in local years at the earliest estimate to ten to 15 years newspapers amounted to about one percent of a before everything is done only online. Some local public agency’s budget. newspapers will never be only online. Newspaper The KPA talked with a representative of online subscriptions are not that expensive so THE KENTUCKY GENERAL ASSEMBLY 23 rooms and campsites. Group is developing renewable fuel sources Interim Joint Committee on In response to a question from Senator to reduce the environmental impact of energy Appropriations and Revenue Wise, Commissioner Holland said that no state production. One of the projects focuses on using Budget Review Subcommittee on Economic parks have Kentucky craft beer on tap. microalgae to reduce carbon dioxide emissions. Development, Tourism, and Environmental There being no further business before the There is a pilot facility at East Bend Power Station Protection subcommittee, the meeting was adjourned at to research how to use microalgae to capture Minutes of the 1st Meeting 11:37 AM. carbon dioxide and use solar energy to convert it of the 2017 Interim to other products. China is utilizing this licensed July 27, 2017 Interim Joint Committee technology for the production of food using Call to Order and Roll Call on Natural Resources and algae as a food additive. Algae are very high in The first meeting of the Budget Review Energy protein and carbohydrates. Subcommittee on Economic Development, The Clean Fuels and Chemicals Group is an Tourism, and Environmental Protection of the Minutes of the 3rd Meeting of the 2017 Interim internationally recognized open access testing Interim Joint Committee on Appropriations and August 3, 2017 facility for gas to liquid catalysis. Petroleum Revenue was held on Thursday, July 27, 2017, at Call to Order and Roll Call companies use this site for their testing. 10:00 AM, in Room 169 of the Capitol Annex. The 3rd meeting of the Interim Joint The Organic (carbon-based) Electronics Representative Jill York, Chair, called the meeting Committee on Natural Resources and Energy Group is researching low-cost solutions for to order, and the secretary called the roll. was held on Thursday, August 3, 2017, at 1:00 energy harvesting. One project focuses on Present were: PM, at the UK Center for Applied Energy utilizing organic solar cells, which are similar Members: Senator Rick Girdler, Co-Chair; Research (CAER). Representative Jim Gooch to paint materials. This can be used to retrofit Representative Jill York, Co-Chair; Senators Jr., Chair, called the meeting to order, and the buildings for solar energy production. Perry B. Clark, Denise Harper Angel, Alice secretary called the roll. In response to Senator Smith, Mr. Andrews Forgy Kerr, and Max Wise; Representatives Toby Present were: stated that scenedesmus is the type of algae being Herald, Steve Riggs, Diane St. Onge, and Tommy Members: Representative Jim Gooch Jr., used for testing since it is fluid and floats. They Turner. Co-Chair; Senators C.B. Embry Jr. and Brandon are using naturally-occurring algae rather than Guests: David A. Dickerson, Secretary, Smith, Representatives Larry Brown, McKenzie introducing a new organism. Public Protection Cabinet (PPC); Gail Russell, Cantrell, Matt Castlen, Jeffery Donohue, Jim In response to Representative DuPlessis, Deputy Secretary, PPC; Elizabeth Kuhn, DuPlessis, Daniel Elliott, Chris Fugate, Dennis Mr. Andrews stated that their focus is on Communications Director, PPC; Donnie Keene, Reginald Meeks, Suzanne Miles, and Jill collaboration with industry, since about one- Holland, Commissioner, Department of York. third of their funding comes from industrial Parks, Tourism, Arts, and Heritage Cabinet Guests: Rodney Andrews, CAER, Director; sources, and they work with industry to leverage (TAHC); Rob Richards, Deputy Commissioner, Michael Portwood, Minova, President; Bob federal funding for projects. Department of Parks, TAHC; William H. Novak, Jewell, CAER, Research Program Manager; High Value Cementitious Materials from Director, Facilities Management, Department of Matt Weisenberger, CAER, Associate Director; Coal Ash Parks, TAHC; and Representative Dan Johnson. and Jack Groppo, CAER, Principal Research Bob Jewell stated that the task of the LRC Staff: Seth Dawson, Greg Troutman, Engineer, UK Mining Engineering Faculty. Cementitious Materials Group is to find ways to and Benjamin Thompson. LRC Staff: Stefan Kasacavage and Janine use coal combustion byproducts for beneficial Overview of the Public Protection Cabinet Coy-Geeslin, and Susan Spoonamore and Rachel utilization. Their primary push is for low-energy, Secretary Dickerson provided a brief update Hartley, Committee Assistants. low-carbon dioxide cement and concrete. This on the budget of the Public Protection Cabinet Overview and Introductions cement can be used for ultra-high performance (PPC). Rodney Andrews provided a brief overview fiber-reinforced concrete. This sprayable In response to questions from Representative of the research focuses of CAER, which included concrete can be used for critical infrastructure Johnson, Secretary Dickerson stated that PPC environmental protection, utilization of coal and repair and military purposes. currently provides training for charitable gaming ash waste, expanding the use of renewable energy, Kentucky consumed approximately 34 licenses on Facebook live. Secretary Dickerson energy reliability, efficiency gains in electric million tons of coal for electric power in 2015, noted that charitable gaming ventures raise generation, energy security, and economic and which produced 7.7 million tons of coal ash. several hundred million dollars for the state. workforce development. Coal ash is utilized at a rate of 21 percent, with Overview of the Department of Parks and The CAER Power Generation Group’s the remaining deposited into landfills or ponds. update on “Refreshing the Finest” mission is to develop technologies for continuous The national rate of utilization of coal ash is 52 Commissioner Holland provided a brief use of fossil resources with a primary focus on percent. There is growing demand for coal ash, update on the budget of the Department of removing carbon dioxide from coal production. and Kentucky is well-positioned to help meet Parks as well as an update on the status of the The Carbon Management Research Group is a this demand because of its many coal ash ponds Department’s “Refreshing the Finest” program. consortium of utilities and the Electric Power that contain reclaimable coal ash material. In response to questions from Chair York, Research Institute that supports this work The largest volume of concrete is used in Commissioner Holland noted that there are now at CAER. Kentucky has invested $8 million the transportation construction market. One- twelve state resort parks and two golf courses that in CAER for an overall economic impact of fourth of the interstate highway system is paved allow alcohol sales. Alcohol sales in state parks $78 million. A $4 million investment was just in concrete. Fly ash in concrete increased from have generated $539,000 in profit for the state in received from the Department of Energy, and two 13.1 million tons in 2014 to 15.7 million tons the last year. Commissioner Holland confirmed funding opportunities in carbon management in 2015. Kentucky consumes approximately 1.1 that the Department of Parks had to update are expected in the near future. million tons of Portland cement annually, which equipment prior to allowing online bookings for The Biofuels and Environmental Catalysis equates to approximately 418,000 tons of fly ash.

24 2017 Interim LEGISLATIVE RECORD Fly ash concrete (FAC) increases durability thickness. TekCrete is a cheaper and stronger heavier rare earth elements are more prevalent and decreases expense, since roads constructed material. in coal layers. with it need to be repaired less often. The life In response to Representative Castlen, Mr. The DOE-solicited projects for processing span for concrete with fly ash is 30 to 60 years, as Portwood stated the concrete spray shrinks more fly ash and enriching coal ash are currently under opposed to concrete without fly ash, which lasts than it expands. review for Phase 2 funding with $6 million over only 20 to 25 years. The estimated savings are In response to Representative York, Mr. 48 months. $25 billion over 20 years if all concrete roadways Portwood stated that concrete structures can be In response to Representative DuPlessis, Mr. were designed with FAC to last 35 years, and created for military use and refugee camps. The Groppo stated there are bins at local hardware savings could amount to $33.5 billion over 20 structures are created quickly in the event of a stores to deposit used batteries and the recycling years with a 40-year life span. catastrophic disaster. rate is very high. There needs to be more public In response to Representative DuPlessis, In response to Representative Miles, Mr. awareness on how to recycle electronic waste. Mr. Jewell stated fly ash is an amorphous Portwood stated the material is not easily In 2008 China decided to no longer export raw material that is primarily silica. They are using destroyed. It is similar to concrete in the way it materials, but will export the products. dry scrubbers instead of wet scrubbers, so they would need to be removed. In response to Representative Donohue, Mr. do not have to manage a waste water component. Coal to Carbon Fiber Groppo stated he recycles plastic. In Jessamine In response to Representative Gooch, Matt Weisenberger stated that the method County it is separated from other materials, Mr. Jewell stated that ultra-high-performance he is researching to create carbon fiber involves which makes it easy to recycle. The problem is materials are highly-engineered materials, and removing the hydrocarbon from coal. The idea when the public is too cheap to pay for recycling they are used for specialty applications. If the is to create a highly versatile product from coal. pick-up, they will use the community recycle performance is high, then there is no reason to Carbon fiber material is very lightweight. It is bins. The solution is public education and limit the amount of coal ash in concrete. Instead, used in the automotive industry to design cars awareness, not a mandate. performance standards should be set, and any with higher fuel efficiency. Other applications of The next meeting of the Interim Joint concrete meeting those standards should be the product include aerospace and outer space Committee on Natural Resources and Energy will permitted, regardless of its coal ash composition. design to create lightweight planes and satellites. be at Kentucky American Water in Lexington, In response to Representative Brown, There is significate value to transforming Kentucky on September 7, 2017. Documents Mr. Jewell stated roads made with coal ash are coal into fiber. Coal (for coke) is valued at distributed during the meeting are available in chemically more resistant, particularly on bridge $100/ton and fiber is valued at $2 million/ the LRC Library. decks. ton. Mitsubishi in Japan is currently using this There being no further business, the meeting Minova technology. was adjourned. Michael Portwood stated Minova is a The project is a collaboration between the subsidiary of Orica Mining Services which is CAER and the University of Utah with funding Interim Joint Committee on one of the largest manufacturers of explosives from the Department of Commerce Economic Tourism, Small Business, and products. It is a 135 year old company that Development Authority. Total funding for the Information Technology supports the mining industry. Collaboration project is $1.58 million over three years. Minutes of the 2nd Meeting between universities and the private sector to In response to Representative Gooch, of the 2017 Interim create a commercial product is critical to its Mr. Weisenberger stated there are only three July 5, 2017 success. machines in the world that make the fiber, and Call to Order and Roll Call The Department of Homeland Security that one is at CAER. The 2nd meeting of the Interim Joint reached out to the University of Kentucky to Rare Earth Elements from Domestic Coal Committee on Tourism, Small Business, and create a rapid-hardening cement that is a spray and Coal Byproducts Information Technology was held on Wednesday, application. If a terrorist attack occurred, the Jack Groppo stated that rare earth elements July 5, 2017, at 10:30 AM, in Room 131 of the spray can be applied on any surface to create a (REE) are actually very common; however, they Capitol Annex. Senator Alice Forgy Kerr, Chair, structure that acts like a steel beam, which would are rarely found in high concentrations. REE are called the meeting to order, and the secretary allow first responders to enter the building utilized in magnetics, phosphors, metal alloys, called the roll. within fifteen minutes. The product has been catalysts, ceramics, glass, and defense. Present were: commercialized as TekCrete Fast, and the patent China has a worldwide monopoly on REE Members: Senator Alice Forgy Kerr, Co- was granted in March 2016. The product will that gives them the opportunity to dictate the Chair; Representatives Diane St. Onge, Co- expand into more markets including bridge and price. The United States had minor production a Chair, and Tommy Turner, Co-Chair; Senators dam repair, as well as underground mining. couple of years ago while production in Australia Perry Clark, Rick Girdler, Ernie Harris, Stephen TekCrete Fast has multiple product families is increasing. Since China controls the supply, the Meredith, Wil Schroder, Reginald Thomas, and including TekCrete Armor. This is an application United States is turning to coal where REE can Max Wise; Representatives John Blanton, Matt that the Department of Defense can utilize. If a form to hopefully increase domestic production. Castlen, Jeffery Donohue, Chris Fugate, David runway is bombed it can be repaired in twenty The Department of Energy (DOE) considers Hale, Chris Harris, Angie Hatton, Toby Herald, minutes using the concrete spray. A helicopter neodymium, europium, terbium, dysprosium, Dan Johnson, Kim King, Michael Meredith, Russ pad can be created in twenty minutes by spraying and yttrium to be critical elements to renewable Meyer, Robby Mills, , Sannie Overly, concrete on any surface, including grass. The energy development. John Sims Jr., and Jill York. product acts more like a steel than a cement. The Fire Clay Seem in eastern Kentucky Guests: Don Parkinson, Secretary of Ky. In response to Representative Miles, Mr. has been mined for the last 40 years. A volcanic Tourism, Arts, and Heritage Cabinet; Regina Portwood stated shotcrete is currently being eruption in the Yucatan deposited a tonstein Stivers, Deputy Secretary of Ky. Tourism, used in the mines and creates a six-inch thickness layer that is rich in REE phosphate minerals. Arts, and Heritage Cabinet; Donnie Holland, opposed to TekCrete that creates a two-inch REE are more concentrated in rock layers, while Commissioner, Ky. Department of Parks. THE KENTUCKY GENERAL ASSEMBLY 25 LRC Staff: John Buckner, Chip Smith, and and lakes around the state. The department is Development Finance Authority, which focuses Emma Mills. also entirely self-funded through fishing and on economic development. In the last year the Tourism, Arts and Heritage Cabinet FY hunting licenses. Among the challenges facing Authority has worked on 10 projects, $157 2016-17 Performance Highlights the Department of Fish and Wildlife is dealing million invested with a $900 million economic Don Parkinson, Secretary of the Kentucky with Asian Carp, an invasive species of fish impact to the state. The Authority has helped Tourism, Arts and Heritage Cabinet spoke about increasingly found in Kentucky waterways. with financing of visitor centers at breweries and the cabinet, its agencies, and the challenges of Regina Stivers, Deputy Secretary of Ky. distilleries around the state, the Ark Encounter the cabinet. In overview, he thinks last year was Tourism, Arts, and Heritage Cabinet discussed facility and is active in developing the film a good year. All of the state funded agencies the Kentucky Travel and Tourism Agency, the industry in Kentucky. within the cabinet did better than budgeted and marketing arm of the state. Tourism is the 3rd Some of the most substantial improvements will give back $3.5 million to the state general largest revenue producing industry in Kentucky this year in the state has been to the park system. fund primarily due to improvement in parks. with $14.5 billion in economic impact in 2016. Secretary Parkinson reviewed the results of an The cabinet met the goal of a 9 percent overhead Tourism provides 193,000 jobs, generates $3.1 $18 million state investment to the park system. cut and has improved customer satisfaction billion in wages and supplies $1.4 billion in tax For FY17, the state sold 9,000+ more hotel rooms scores. He introduced members of his staff and revenue. Deputy Secretary Stivers discussed than in 2016 and increased revenue by $2.1 highlighted the accomplishments and hard work about Kentucky diverse tourism options, from million over 2016 with a total economic impact of the employees of the cabinet’s various agencies. outdoor recreation to horses to faith based of $889 million despite having two of the largest Secretary Parkinson discussed the private/ tourism destinations such as The Ark. The fastest lodges closed for renovations. public partnerships (P-3), which enable the growing segment of tourism is international Kentucky State Parks $18 Million state and cities to secure capital to get projects tourism to Kentucky, which the cabinet has “Refreshing the Finest” Update completed. Kentucky was the last state in the aggressively sought. Donnie Holland, Commissioner of region to have P-3 legislation. There are 11 active The deputy secretary reviewed the Heritage Kentucky Department of Parks, continued the projects, including two private RFPs (Request for Council, emphasizing the impact of the Historic presentation with an overview of state parks. In Proposal) which would enable private partners Preservation Tax Credit. Since instituting the review, there are 49 state parks, 17 resort parks, use and maintain state property, generating tax credit ten years ago, Kentucky has seen 14 golf courses, 785 full-time staff with a $93.1 income for the state. $900 million in private investment in historic million generated in tax revenue. Commissioner In regards to development in Jefferson properties around the state. She pointed out that Holland discussed the $240 million in deferred County, the secretary mentioned the approved 2015 saw $300 million in investments due to the maintenance costs over the years. The state name change of the Kentucky State Fair Board Enhanced Tax Credit that applied to Jefferson granted the park system $18 million to help to Kentucky Venues to help solicit new business and Fayette counties only. The Heritage Council with safety and aesthetic upgrades of which 69 from around the country and updated on the recently moved to the Barstow House, adjacent percent has been used. Examples are upgrades to Louisville International Convention Center’s to the Thomas Clarke history center. The move Barren River (electrical repairs, lodge upgrades, $207 million renovation and expansion, which provides income for the Historical Society and pool upgrades), Blue Licks Battlefield (pool will re-open in July of 2018. This has spurred better access to preservation and security of upgrades, new museum roof), and Buckhorn the development of many hotels in the Jefferson historic documents from across the state. In Lake (upgrade to Convention Center interior, County. Secretary Parkinson also mentioned the addition, the cabinet will be looking for future support beams and roof work, cottage repairs) Kentucky Exposition Center and highlighted funding to digitize documents that the Heritage amongst other various upgrades. Jenny Wiley some of the events that took place there this past Council oversees. State Park and Greenbo Lake State Park were year. The Historical Society has seen a 28 percent shut down to upgrade facilities. The secretary went on to discuss the increase in revenue, mostly due to facility The Department of Parks is trying to Kentucky Horse Park. Revenue is up 5.6 percent rentals, proactive marketing, the Local History invigorate foundations or friends investments at the park and $450,000 ahead of budget. In Trust Fund and revenue from historical markers. groups. In the last year and a half, friends’ the future, the park is looking to own events in Currently the Historical Society has a new exhibit groups have raised and invested $1.4 million for addition to renting out to outside events such as called “The People of Kentucky” to celebrate park and marina upgrades. For example, Lake the Rolex event. The United States Equestrian Kentucky’s 225th anniversary. The Society, Malone’s marina needed to be condemned due Federation signed a 40-year ground lease on three amongst other projects, is embarking on a state- to lack of state funding to be able to maintain the acres of land. The lease allows the Federation wide listening tour to listen to stories about what marina. A local group raised enough money to to construct a two-story, approximately 35,000 residents think about Kentucky; the tour will build a new marina without needing to use state square-foot office building; construction will also visit Governor’s scholars at Murray state, funding. begin in late 2017. Northern Kentucky University and Morehead to With regards to Return on Investments, The secretary spoke about the Kentucky speak with students in the program. Commissioner Holland pointed to 9,000+ more Department of Fish and Wildlife. The emphasis Deputy Secretary Stivers discussed updates rooms sold in fiscal year 2017 over 2016, and of the department is not only hunting and to the Kentucky Artisan’s Center in Berea. New customer satisfaction scores have increased 90 fishing but also conservation. An example of the management under Todd Finley, who is helping percent in the same time period with $50 million conservation work done by the department is to provide income to over 700 small businesses in revenue for the state. Commissioner Holland the elk herd expansion in eastern Kentucky. The in the region. The center has 60 annual feels that none of these improvements could have department began with a small herd 20 years demonstrations and events throughout the year, been done without the $18 million investment ago which is up to 10,000 elk now, which will has seen a 38 percent increase in group tours, by the state. be a big draw to Eastern Kentucky. Besides elk, and provides $1.57 million in revenue. The department also partnered with the the Kentucky Department of Fish and Wildlife Continuing with the presentation, Secretary internet site Expedia.com to improve lodge stocks six million fish per year in ponds, rivers Parkinson discussed the Kentucky Tourism room sales this year. Room sales improved

26 2017 Interim LEGISLATIVE RECORD roughly 8 percent almost immediately with this know what the long term effects to the state’s Park course and the locations of the stand-alone partnership. Commissioner Holland indicated tourism would be, but acknowledged that if the courses in the state are Mineral Mound, Yatesville plans to expand the department’s presence on trend continued it could be a problem for state Lake, Grayson Lake, Lincoln Homestead, and the internet in the near future. Along with an tourism since the industry is so reliant on the My Old Kentucky Home. expansion on the internet, Holland pointed to convention center in Louisville. In a response to Representative Meredith’s the hiring of hotel management professionals In response to a question from Senator query about the status of federal assets that who brought in up-to-date management ideas Schroder about transient room tax and Airbnb had been passed to Fish & Wildlife in Western and practices as an additional reason for the and who enforces collection, Secretary Parkinson Kentucky, Commissioner Greg Johnson with uptick in room sales across the state. said the Department of Revenue would enforce Kentucky Fish & Wildlife updated the committee those laws. on the plans for these decommissioned dams in Commissioner Holland points out that Responding to a follow-up question about question. Green River dam number 6 has been though there have been a number of much the cancelled conventions asked by Senator removed and is undergoing a feasibility study. needed repairs made to park structures, there Schroder asked, Secretary Parkinson confirmed Announcements are still problems that need to be addressed. The the two conventions were cancelled specifically Per Co-Chair Turner, the next meeting cost of deferred maintenance for state parks now because of SB17. of the Interim Joint Committee on Tourism, sits at $234 million. For example, Fort Harrod In response to a question from Senator Small Business and Information Technology will conference center has been shut down due to Thomas, Secretary Parkinson discussed the be August 18th, 2017 at 1:00 p.m. at the Knott rotted wood, mold and leaks, and the My Old naming rights regulations that had just taken County Sportsplex, pending approval. Kentucky Home amphitheater is in bad shape effect June 30th, 2017. He said there have been no Adjournment as well. Currently, the state holds $391 million discussions about individual naming rights for There being no further business, the meeting in insured assets in the park system. Holland buildings, but the cabinet is not in the business of was adjourned at 11:59 a.m. recommends that an annual rate of 2.20 percent renaming parks, rivers, or roads. He emphasized be put aside for annual maintenance costs in the it was more about renaming lodges or events but Interim Joint Committee on future. will expect to see progress on this in the next Appropriations and Revenue Looking ahead to FY2017, Commissioner three months. Minutes of the 2nd Meeting Holland is upbeat about trends and events Commissioner Holland, responding to a of the 2017 Interim affecting the state park system. In August 2017, question from Representative Hale, confirmed July 27, 2017 thousands of tourists are expected in western there were 9,000+ additional room sales for Call to Order and Roll Call Kentucky to experience the full solar eclipse. The FY2017 over FY2016 at state run lodges. The The 2nd meeting of the Interim Joint parks expect strong bookings and occupancy average rate for a room went up $5.00 to an Committee on Appropriations and Revenue rates at lodges around the state. Along with the average daily rate of $99.00 around the state was held on Thursday, July 27, 2017, at 1:00 expansion of sponsorships/naming rights as (rates vary by season). PM, in Room 154 of the Capitol Annex. Senator well as the expansion of using online booking Representative Hale followed up with a Christian McDaniel, Chair, called the meeting to options. Commissioner Holland also pointed out question regarding the usage of golf courses order, and the secretary called the roll. how impressed he has been with the employees around the state. Commissioner Holland Present were: of the park system since starting with the park explained that capacity at a golf course would be Members: Senator Christian McDaniel, system last year. 40,000 rounds per year; My Old Kentucky Home Co-Chair; Representative Steven Rudy, Co- Responding to a question from course averages 21,000 rounds per year, the most Chair; Senators Ralph Alvarado, Danny Representative Donahue regarding golf courses in the state. Carroll, Morgan McGarvey, Dennis Parrett, around the state, their self-sufficiency or In response to a question from Wil Schroder, Brandon Smith, Robin L. Webb, continued economic viability, Commissioner Representative King about the demographics of and Max Wise; Representatives Rocky Adkins, Holland acknowledged the state loses about $3 park visitors, Kristin Branscomb, Commissioner Regina Bunch, Myron Dossett, Ken Fleming, million a year on the state’s 14 golf operations. of Tourism, indicated that the cabinet’s target Jeff Greer, David Hale, Brian Linder, Donna Two golf courses have been closed in the last year demographic is women, ages 25-54, household Mayfield, Suzanne Miles, Jason Nemes, Ruth due to low utilization (2 percent utilization); a income of $75,000+. Women in this group Ann Palumbo, Phillip Pratt, Jody Richards, Sal third will be closed due to 7 percent utilization tend to make the traveling plans for families. Santoro, Arnold Simpson, James Tipton, Ken as well. Given the national downward trend of Additional visitor profiles are available from the Upchurch, Jim Wayne, Russell Webber, Susan interest in golf as a sport, the park system is commissioner upon request. Westrom, and Jill York. closely evaluating each individual remaining golf In response to a question regarding The Guests: Secretary Vickie Yates Brown course. The Department of Parks is putting more Ark Encounter from Representative Blanton, Glisson, Cabinet for Health and Family Services; resources into golfing, including a Director of Secretary Parkinson felt the park is exceeding Jamie Ennis Bloyd, President, Kentucky Golf to attempt to revitalize interest in the state’s the expectations of the owners, though he did Pediatric Cancer Research Trust Fund; Katie golf courses. not have any numbers available. Commissioner Anne Doggett Lester, Mother of Bennett Lester; Representative Donahue mentioned Branscomb noted that Grant County (location of Dr. Lars Wagner, M.D., Chief, University of newspaper articles regarding cancelled the park) had 128 percent increase in economic Kentucky Hematology/Oncology; Dr. Ashok Raj, conventions with the Louisville International impact from the first six months of the park’s M.D., Interim Chief, Division of Hematology/ Convention Center due to passage of SB17 and opening. Oncology and Bone Marrow Transplant, queried the panel about the cabinet’s plans to Responding to a questions from University of Louisville School of Medicine address possible loss of tourism and conventions. Representative Meredith, Commissioner and Norton Children’s Cancer Institute; John E. In response, Secretary Parkinson confirmed two Holland says that the third golf course in the Chilton, State Budget Director; Janice Tomes, cancelled conventions due to SB17 but didn’t state slated to close is the Kincaid Lake State Deputy State Budget Director; Kevin Cardwell, THE KENTUCKY GENERAL ASSEMBLY 27 Deputy State Budget Director; Greg Harkenrider, establish a cutting-edge cellular therapy Tomes, Deputy State Budget Director; Kevin Deputy Executive Director, Governor’s Office of laboratory to support clinical mission, and Cardwell, Deputy State Budget Director; and Economic Analysis. embrace emerging technologies to develop novel Greg Harkenrider, Deputy Executive Director LRC Staff: Jennifer Hays, Cynthia Brown, cellular therapies for tomorrow. for Economic Analysis, reviewed the budget Amit Shanker, Hannah Walker, Charlotte Dr. Lars Wagner explained that in Kentucky and revenues for Fiscal Year 2016-2017 and the Quarles, and Jennifer Beeler. brain tumors are the leading cause of childhood financial outlook for Fiscal Year 2017-2018. Approval of the Minutes cancer death. Even patients who are successfully Director Chilton said that actual general Representative Rudy made a motion, treated are at high risk for chronic life-affecting fund receipts for FY 17 were less than the official seconded by Senator Alvarado, to approve the complications, such as academic, physical, and estimate by 1.3 percent, with a revenue shortfall minutes of the November 21, 2016 and June 7, psychosocial limitations. Astrocytomas are the of $138,526,126. The shortfall in receipts was 2017 meetings. The motion carried by voice vote. most common type of pediatric brain tumor. driven primarily by the corporate income tax Pediatric Cancer Research Trust Fund There has been an increase in Appalachia, where and sales tax. These taxes provide the most elastic Secretary Glisson gave brief remarks the incidence of astrocytoma is greater than in sources of revenue. regarding the Pediatric Cancer Research Trust the rest of the state. Mr. Harkenrider reported that many of fund as an active board member of the Pediatric There has been some investigation as the remaining general fund revenue sources Cancer Trust Fund Board. She explained that the to why there is an increased rate of pediatric fell during the year. The underproducing areas board had held four quarterly meetings in the past astrocytomas. The research has found that included individual income, coal severance, and year, elected officers, hosted a Pediatric Cancer spatiotemporal assessment has identified a cigarette taxes. awareness event, and developed regulations to zone of 40 contiguous counties in which the The overall General Fund revenue growth establish a competitive grant program. incidence of pediatric brain tumors is far higher rate for FY 17, compared to the prior year, was Katie Anne Lester, mother of Bennett Lester, than what would be expected by chance. This 1.3 percent. Even with that overall growth, the who died of a pediatric brain tumor, shared her will be investigated further by looking within General Fund revenue sources, other than story and described the critical importance of individual counties for higher concentrations of individual income, LLET and sales taxes, fell a pediatric cancer research. Without pediatric tumors, and looking at more specific subtypes collective $62.6 million. cancer research, doctors will not have adequate of pediatric brain tumors. This work is ongoing Sales tax growth in FY 17 was 0.7 percent knowledge of the many forms and differences with the University of Kentucky in conjunction following a 6 percent growth in FY 16 and a 4.4 of pediatric cancer as compared to cancers in with the Kentucky Cancer Registry. percent growth in FY 15. Kentucky’s top two adults. Due to changes in chromosomes and genes revenue sources, sales tax and individual income Dr. Ashok Raj explained that childhood that affect the development of tumors, it is logical tax, generate 75 percent of the General Fund cancer is the leading cause of death due to to look at the genetic makeup of tumors that revenues. Those two taxes underperformed disease in the United States. On average, 2,275 are occurring more frequently than expected. relative to the last two fiscal years. Individual children per year die due to some form of Identification of new mutations within tumors, income tax revenue contributed $111.8 million childhood cancer. There are several forms of or finding a higher rate of known mutations than of the total $138.9 million in nominal General childhood cancer, but in Kentucky brain cancer expected, could provide important cues as to Fund growth. The sales tax contributed $22.5 is the leading form of cancer diagnosed. why children in Appalachian Kentucky are more million of the total $138.9 million in General There has been extraordinary progress in likely to develop these tumors. Fund growth. survival rates for childhood cancer. In the 1960s, To better understand the higher incidence Director Chilton explained the FY 17 a child three to five years of age diagnosed with of brain tumors occurring in certain parts of General Fund revenue shortfall totaled $138.5 leukemia had no chance of survival. In 2016, the Kentucky, Dr. Wagner has been performing million. There were some expenditures that survival rate of leukemia is approximately 90 molecular testing on previously stored tumor were greater than appropriated at a total of percent. samples from pediatric brain tumor patients $13.7 million, which created a General Fund The goal in precision cancer medicine is treated throughout the state. There is a budget shortfall of $152.2 million. Adjustments to improve cure rates and decrease toxicities hypothesis that this information will provide to various accounts were made to cover the by identifying the specific genes, proteins, important clues about why an increased number shortfall amount and balance the budget. and pathways responsible for malignant of Kentucky children are afflicted with this Director Chilton stated that the beginning transformations or progression of individual disease. This information will also further the balance of the Budget Reserve Trust Fund was cancers, utilizing therapies to target these features understanding of the genetic causes of pediatric $235.8 million, after paying FY 17 NGEs of $85.3 that distinguish cancer cells from normal cells, brain tumors, which are now the leading cause of million the ending balance to carryover to FY 18 and reducing the number of side effects that a death from childhood cancer. totaling $150.5 million. child could develop due to the types of cancer In response to a question from Senator Janice Tomes discussed how in FY 17 the treatments. Wise, Dr. Wagner explained that screening for Department of Corrections budget makes up Dr. Raj hopes to build a strong and pediatric cancer has been very difficult and there approximately 50 percent of the total NGEs. innovative pediatric hematology/oncology/stem are few identifiable causes of cancer at this time. In FY 17, $42.8 million was spent due to more cell transplant and cellular therapy program Some patients who have underlying genetic inmates, higher medical and staffing costs, and through compassion and teamwork, and with syndromes, such as Down syndrome, have a local correctional design fees. the help of emerging technologies. higher incidence of leukemia. Unfortunately, Director Chilton discussed tobacco fund The plan to reach that goal is to enhance for the majority of patients there are no clear revenues for FY 17, which the budgeted amount clinical excellence in pediatric hematology/ triggers as to the development of childhood totaled $87 million and including the current oncology/stem cell transplant therapy for cancer, which makes screening a challenge. year appropriation and additional receipts the children, expand participation in new clinical Fiscal Year 2016-2017 Close Out FY 17 total revenue was $93,415,538. The budget trials and bring in innovative cellular therapies, John Chilton, State Budget Director; Janice bill sets forth how the additional receipts will

28 2017 Interim LEGISLATIVE RECORD be allocated, with 50 percent to the agricultural Director for the Office of Highway Safety and $492,000 from the state. The Division of development fund, 36 percent to early childhood, (KOHS), Kentucky Transportation Cabinet Incident Management, which includes incident and 14 percent to the healthcare improvement (KYTC), Michael Schwendau, Assistant Director, management and SAFE patrol, is fully funded fund. Office of Highway Safety, KYTC, and Erin Eggan, by the state at $4,305,000. Within the Division Mr. Harkenrider testified on FY 17 road Communications Grants Administrator, Office of Highway Safety Programs, Grants Branch, the fund revenues, which had a surplus of $51.1 of Highway Safety, KYTC; Jim Howell, Vice DOT Section 402 and 405 program funds are million, or 3.5 percent above the revised President of Marketing and Sales for LifeSaver administered by NHTSA. The KOHS uses these estimate. The road fund actually increased over App, Kevin Corman, Jessamine County Sheriff, funds to enhance traffic enforcement statewide, the projected estimate of $1,456,900,000 and President, Kentucky Sheriffs Association, Robin utilizing traffic enforcement programs such as totaled $1,508,003,421. Brewer, Executive Director for the Office of Click it or Ticket, Drive Sober or Get Pulled Mr. Harkenrider stated that the motor Budget and Fiscal Management, Kentucky Over, and speed week. Section 402 includes vehicle usage tax receipts were up in FY 17, with Transportation Cabinet. planning and administration, motorcycle safety, revenues totaling $499.8 million. Motor fuels LRC Staff: John Snyder, Brandon White, occupant protection, police traffic services, tax came in slightly higher than the estimate at Dana Fugazzi, and Christina Williams. impaired driving, high visibility advertising, $760 million, and motor vehicle license revenues Operations of KYTC’s Office of Highway and community traffic safety. Section 405 covers decreased with actual revenues at $111.9 million. Safety occupant protection, traffic records, impaired Kevin Cardwell explained that the road fund Dr. Noelle Hunter, Executive Director, driving, distracted driving, and motorcycle had a surplus of $51.1 million, which statutorily Office of Highway Safety, KYTC, Michael safety. is required to be deposited into the state highway Schwendau, Assistant Director, Office of Highway The Education Branch within the Division of construction account. Safety, KYTC, and Erin Eggen, Communications Highway Safety educates on occupant protection Director Chilton discussed the outlook Grants Administrator, Office of Highway Safety, utilizing different presentations including child for FY 18. The consensus forecasting group in KYTC discussed the operations of KYTC’s passenger safety as well as rollover simulators. December called for growth of 2.4 percent, but Office of Highway Safety. Dr. Hunter stated The branch educates on the dangers of impaired due to receipts not meeting the revenue estimates the mission of KOHS is to reduce Kentucky’s driving by utilizing a 3D simulator to show the in FY 17 growth needed to hit the FY 18 estimate, highway crashes, serious injuries, and fatalities effects of drunk and drugged driving. They rises to 3.8 percent. through a data driven outcomes based approach also use ghost outs, mock crashes, and other Director Chilton explained that the in which they seek to drive down traffic safety presentations such as a distracted driving Kentucky Permanent Pension Fund had 50 problems, through innovative program delivery, simulator. The branch presented 147 school percent of FY 16 surplus amount totaling $26.4 high visibility law enforcement, traffic safety programs and 50 non-school programs for million and FY 18 transfer from Public Health marketing, and robust incident management corporate offices and government agencies Insurance Trust fund totaling $125 million. The initiatives. Together, there are several divisions between 2015 and 2017. The Education Branch funds on the expenditure side are budgeted to be within the KOHS that provide safety education, uses a data collection analysis where they assess no more than $3 million and to date $1 million enforcement, incident management and public attitudes on driving safety and promote has been spent. response in relation to Kentucky’s highways. An changes in driver behavior. The Education Branch With no further business before the organizational chart was provided to illustrate also monitors and guides ignition interlock committee, the meeting was adjourned. where each division falls within the Department device (IID) installations and inspections, they of Highways, and more specifically, the Kentucky certify IID vendors and educate judges and law Interim Joint Committee on Office of Highway Safety. The Division of Incident enforcement on IID requirements. Transportation Management includes the 24/7 Transportation The Division of Incident Management, Minutes of the 3rd Meeting Operations Center and the Roadway Assistance Roadway Assistance Branch has 21 operators, of the 2017 Interim Branch. The Division of Highway Safety three secretary support staff, two support staff, August 3, 2017 Programs includes the Safety Education Branch and five vacant staff slots. The Traffic Operations Call to Order and Roll Call as well as the Grants Management Branch. Dr. Center (TOC) consists of four staff members for The 3rd meeting of the Interim Joint Hunter stated KOHS runs on strong partnerships the first shift, four staff members for the second Committee on Transportation was held on with over a dozen law enforcement and safety shift, three staff members for the third shift, and Thursday, August 3, 2017, at 10:00 AM, in Room agencies and organizations. She stated the three support staff. The budget for the Division 149 of the Capitol Annex. Senator Ernie Harris, cabinet is guided by the strategic highway safety of Incident Management consists of $902,222 Chair, called the meeting to order, and the plan, a consensus driven sustainable plan which for personnel costs for TOC, $1,997,778 for secretary called the roll. The minutes from the outlines measurable strategic opportunities to personnel for Incident Management and SAFE July 6, 2017 meeting were approved. reduce traffic fatalities and serious injuries. The Patrol, $1,314,000 for trucks and equipment, and Present were: most recent federal highway funding bill (the $35,900 for supplies. Members: Senator Ernie Harris, Co-Chair; FAST Act) requires states aligned core safety The Transportation Operations Center is Representative Marie Rader, Co-Chair; Senators measures in the highway safety improvement a 24/7 point of contact for KYTC. The center Paul Hornback, Albert Robinson, Brandon plan and the highway safety plan in cooperation coordinates and disseminates information on Smith, and Johnny Ray Turner; Representatives with metropolitan planning organizations. traffic issues, road closures, and weather events. Lynn Bechler, Tim Couch, Ken Fleming, Chris Dr. Hunter stated the KOHS budget The center dispatches for SAFE patrol and Fugate, Al Gentry, Chris Harris, Toby Herald, consists of the Education and Grants Funding incident management coordinators, and also Dennis Horlander, Kenny Imes, Donna Mayfield, division funded with $5,561,000 from supports KYTC district incident management Suzanne Miles, Steve Riggs, Sal Santoro, John the National Highway Traffic and Safety teams. The TOC has three shifts with 11 operators. Sims Jr, Jim Stewart III, and Scott Wells. Administration (NHTSA), $1,470,450 from SAFE patrol consists of 26 highway safety patrol Guests: Dr. Noelle Hunter, Executive the Federal Highway Administration (FHWA), officers with 13 crews with three sections. The THE KENTUCKY GENERAL ASSEMBLY 29 average yearly activity consists of 37,000 stops, and collectively. Dr. Hunter stated motor future. There is data available on alcohol related which averages to approximately 1,400 stops vehicle deaths can be observed by county accidents under and over the legal limit of 0.08. per operator per year. There are three section of occurrence, home-county of the patient, In response to a question asked by supervisors one for the East region, one for the inpatient hospitalization and emergency room Representative Santoro concerning the possibility West region and one for the Central region. visits. These data points allow for cross reference of KYTC looking into closing railroad crossings SAFE Patrol assists with special events such as internal county ranking systems overlaid with which could help reduce accidents involving the Kentucky Derby and Oaks, and Thunder traffic records data, and feedback and experience trains, Dr. Hunter stated she is unaware if that over Louisville. The safety administrators for in the field to address the traffic safety problems has been looked into. Wayne Gentry sits on the three regions (east, west, and central) cultivate in a holistic way. The cost of traffic collisions in Governor’s Executive Committee for Highway federal, state, and local responder partnerships, Kentucky is approximately $17.7 billion, with Safety and is very concerned about railroad and respond to major incidents. The Division fatalities costing almost $6.9 billion, nonfatal crossings. Dr. Hunter will confer with him of Incident Management has an incident action injuries costing almost $10 billion, and property concerning that issue. plan put in place for the 2017 solar eclipse that damage costing almost $1 billion. In response to a question asked by Co-Chair includes partnerships with KYTC, KYEM, In response to a question asked by Rader, Dr. Hunter stated KOHS discourages any KY Fire Commission, and the Department of Representative Wells, Dr. Hunter stated the fundraising activities that involve standing in Aviation. There will also be a mobile operations linear model has been used since the highway roads or intersections, due to safety concerns. center provided. safety plan has come into place, and that there is Representative Riggs stated more accidents Dr. Hunter stated that more than $1.16 a requirement to have a specific formula for how seem to be occurring in metropolitan areas, million support national campaigns developed fatalities and serious injuries are determined so therefore the services that are provided should by the National Highway Traffic Safety counter measures can be assigned appropriately. be provided in metropolitan areas as well as Administration such as Click it or Ticket, Drive She added that this is the first year that the office urban areas in order to improve accident data. Sober or Get Pulled Over, Motorcycle Safety has worked closely with the highway safety Chairman Harris stated the use of cable Awareness Month, and Distracted Driving improvement program. The FAST Act requires barrier and signage are cost effective ways to Awareness Month. There are also statewide that the alignment of three core measures; reduce accidents and he appreciates KYTC sponsorships such as the University of Kentucky, fatalities, fatality rates, and serious injuries. following through with both of those things. the University of Louisville, Morehead State When KOHS started to do that, they found that Chairman Harris also encouraged the continued University, Kentucky Speedway, and different the NHTSA model artificially showed a lower visitation of schools in order to educate local radio shows that target most at risk fatality rate than what the data says should exist. students on the prevention of accidents and demographics. The department is shifting the But when a polynomial model was used, there how to improve roadway safety. In response to a communication strategies away from a was greater confidence in the data, unfortunately question asked by Chairman Harris concerning statewide approach to combat message fatigue showing the number of fatalities will increase TOC and the use of cameras, Dr. Hunter stated to personalize these local and lifesaving safety over time. Dr. Hunter is confident that the some of the cameras in the TOC are focused on messages particularly on seatbelt use. Local intervention methods that are used over time major interstates and roadways, but Tri-Mark is Heroes is one example of the shifting strategy, will drive those rates down. a partner with KYTC in which cameras are also which compliments the local Click it or Ticket In response to a question by Representative used and information is obtained through them campaign with local imagery, PSAs, cable Fleming, Dr. Hunter stated Mr. Schwendau, serves as well. television, print media that sends the message on an autonomous vehicle work group that is Lifesaver Application for mobile from law enforcement which would much rather studying how AVs will affect safety on Kentucky’s electronic devices write a ticket than make a death notification. roadways. She added the concerns for Kentucky Jim Howell, Vice President of Marketing Dr. Hunter stated it shows that law enforcement are several. There is an older fleet of vehicles, so and Sales for LifeSaver App, and Kevin Corman, officers care about their communities. even as autonomous vehicle technology begins Jessamine County Sheriff, President, Kentucky Dr. Hunter stated all of which had been to become more prevalent in Kentucky, it may Sheriffs Association, testified about the Lifesaver shared is a move towards reversing the trend of be decades before most of the driving public Application for mobile electronic devices. Mr. traffic fatalities and serious injuries in Kentucky. could acquire or afford such technology. There is Howell stated the Lifesaver application is an To do so effectively, data must be relied upon concern on how AVs will affect law enforcement. application that when placed on a mobile device that effectively illustrates the realities of highway Kentucky is hosting a National Highway Safety prohibits phone use while driving, sends a safety. The data collected indicates an increase conference in September in which panels will be notification when the driver has arrived safely in fatalities. There has been a move away from held to discuss such issues. to their destination, and sends notifications the liner model because it artificially lowered In response to a question asked by if a driver attempts to override the use of the expected fatalities and injuries over the Representative Bechler concerning how the cost Lifesaver. Lifesaver is often used by parents next five years. Instead, a polynomial approach of traffic collisions in Kentucky of approximately or fleet management. Mr. Corman stated the has been adopted that does indicate an upward $17 billion is determined, Dr. Hunter stated there Kentucky Sheriffs Association voted to support trend in crash fatalities, but the activities of the is a complex formula that is used. Representative the Lifesaver application. Mr. Howell stated in department will ultimately reverse that trend. Bechler requested someone contact him to go 2016 there were 427 fatalities in Kentucky due to The department is working with Kentucky over the formula as he is somewhat skeptical of motor vehicle accidents and to date in 2017 there Injury Prevention and Research Center (KIPRC) the cost that has been derived. In response to a have already been 387 fatalities due to accidents. to observe the problems differently such as second question asked by Representative Bechler, It is the goal of Lifesaver to help reduce texting through heat maps of unbelted collisions in Dr. Hunter stated there is no data on impaired and driving in hopes of reducing accidents and counties. It is the hope that each individual driving differentiating between alcohol-related fatalities or serious injuries. Mr. Howell added county will be observed through such maps to or drug-related impairment, however she would that State Farm Insurance reports a $7 billion see where changes need to be made individually like to see data concerning the difference in the operating loss on auto insurance in 2016, an

30 2017 Interim LEGISLATIVE RECORD increase of 63 percent from $4.4 billion loss in million in FY 2017, a reduction of 1.4 percent. Agreement Fund Oversight Committee was 2015. Allstate Insurance reports a net income The motor vehicle usage tax estimated to be held on Wednesday, July 5, 2017, at 10:00 AM, decline of 25.8 percent and Kentucky Farm received in FY 2018 is $485.7 million compared in Room 129 of the Capitol Annex. Senator C.B. Bureau reports a loss ration increase of 4 percent to the actual revenues received of $499.8 million Embry Jr., Chair, called the meeting to order, and in 2016. He added that just as Mothers Against in FY 2017, a reduction of 2.8 percent. the secretary called the roll. Drunk Driving (MADD) led the charge to Ms. Brewer stated historically, the motor Present were: reduce drunk driving fatalities by more than 50 fuels tax revenues have gone from $563.5 million Members: Senator C.B. Embry Jr., Co- percent since 1980, it is the bold goal of Lifesaver in FY 2007 to $760.5 million in FY 2017, with Chair; Representative Myron Dossett, Co-Chair; to reduce distracted driving by 50 percent within peak numbers of $886.2 million in FY 2014. She Senators Stephen Meredith, Dennis Parrett, and five years’ time. The Oregon Department of provided a graph to demonstrate the volatility of Whitney Westerfield; Representatives Kim King, Transportation has paired with Lifesaver in order the motor fuels tax revenue over the last decade. Phillip Pratt, and Brandon Reed. to combat distracted driving. Mr. Howell asked A chart was also provided to show the road fund Guests: Warren Beeler, Executive Director, members to encourage the use of the Lifesaver daily cash balance. The chart demonstrated that and Bill McCloskey, Deputy Executive Director, application in order to help reduce automobile the road fund daily cash balance has dramatically Governor’s Offce of Agricultural Policy, Dave accidents and save lives. decreased from January 2013 to the projected Maples, Executive Vice President, Kentucky In response to a question asked by April of 2019. Cattlemen’s Association, Becky Thompson, Representative Harris concerning how the In response to a question asked by Director, Kentucky Beef Network, and Cary application differentiates between the driver Senator Hornback, Ms. Brewer stated there are King, Chairman, Kentucky Beef Network. and the passenger trying to use their phone, Mr. approximately 30,000 registered hybrid vehicles LRC Staff: Lowell Atchley, Kelly Ludwig, Howell stated there is a passenger bypass button on Kentucky roadways. Senator Hornback and Susan Spoonamore and Rachel Hartley, on the application. requested that, in the future when Road Fund Committee Assistants. Road Fund update - FY 2017 report and amounts and other budgets are decided, the The June 7, 2017 minutes were approved budget reduction update upward trend towards fuel efficient and hybrid by voice vote, without objection, upon motion Robin Brewer, Executive Director for vehicles be taken into consideration. made by Represenative Reed and seconded by the Office of Budget and Fiscal Management, Ms. Brewer gave a short update on AVIS Representative King. Kentucky Transportation Cabinet, testified about as requested by Representative Imes. The Governor’s Office of Agricultural Policy the Road Fund and the FY 2017 report and budget cabinet continues to try to recover any costs Report reduction. The official enacted revenue estimate from insurance companies when citizens have Warren Beeler described the Agricultural for FY 17 was $1, 456.9 million, however the accidents that involve state property such as run- Development Board’s approved projects actual revenues collected were $1,508.0 million, ins with guardrails, signs, or other state property. and future projects under the program. Bill therefore KYTC ended up exceeding the estimate Ms. Brewer stated the general fund McCloskey highlighted programs including by $51.1 million for the year, approximately 3.5 reduction order 17-02 was filed on July 19, 2017 County Agricultural Investment Program, percent over the official enacted estimate. As far which resulted in $62,300 being cut from KYTC’s Deceased Farm Animal Removal Program, as the motor fuels component of the Road Fund, budget for FY 2017. Those funds were from the Shared-use Equipment Program, Youth- the official enacted revenue estimate was 747.3 Office of Transportation Delivery and are used Agriculture Incentives Program, and Kentucky million, the actual received revenue was $760.5 for state match on federal public transit grants Agriculture Development Fund. million resulting in a surplus of $13.2 million. for public transportation. Additionally, the The projects discussed were: The motor vehicle usage tax was estimated at excess and unappropriated amount of $900,000 TerrePURE Kentucky Distillers, Inc., $469.5 million and what was actually received cash in three restricted fund accounts was approved for up to $300,000 in State and County was a record collection of $499.8 million, transferred to the general fund for the shortfall funds to construct feedlot facilities for managing leaving a surplus of $30.3 million over what was from the following accounts: $100,000 from the distillery by products. estimated. motor boat titling fund, $200,000 from the Avis In response to a question from Senator Ms. Brewer compared the actual revenues replacement account, and $600,000 from the Parrett, GOAP officials stated any farm or of FY 2017 to FY 2016. In total, $1,508 million county clerk IT improvement account. individual can bypass county and request funds was received in FY 2017 and $1,482.5 million In response to a question asked by directly from state. was received in FY 2016, an increase of 1.7 Representative Fleming, Ms. Brewer stated City of Mt. Sterling, approved for up to percent. The motor fuels tax received in FY 2017 the revenue projections are derived from the $130,000 in State and $10,000 in Montgomery was $760.5 million compared to $750 million in findings of the Consensus Forecasting Group, County funds for the construction of a farmer’s FY 2016, an increase of 1.4 percent. The motor led by Greg Harkenrider from the Governor’s market structure. vehicle usage tax received in FY 2017 was $499.8 Office for Economic Analysis. Fleming County Board of Education, million, in FY 2016 $484.4 million was received, With no other information to come before approved for $50,000 in State and $5,000 in an increase of 3.2 percent. the committee, Chairman Harris adjourned the Fleming County funds for the construction of a Ms. Brewer compared the FY 2018 official meeting at 11:30 A.M. farmer’s market pavilion. enacted revenue estimates to the FY 2017 actual Victory Hemp Foods, LLC, approved for up revenues. In total, $1,478.2 million was estimated Tobacco Settlement to $296,002 in State and County funds to update to be received in FY 2018 compared to the actual Agreement Fund Oversight commercial scale processing plant. revenues received in FY 2017 of $1,508, resulting Committee Henderson County Fair, Inc., approved for in a shortfall of $29.7 million and a change of Minutes $5,000 in Henderson County funds to build a -2 percent. The estimated motor fuels tax to be July 5, 2017 livestock pavilion. receive for FY 2018 us $749.8 million compared Call to Order and Roll Call Baesler Farms, denied request for $97,522 to the actual received motor fuels tax of $760.5 The 5th meeting of the Tobacco Settlement in State funds and $15,000 in Fayette County THE KENTUCKY GENERAL ASSEMBLY 31 funds to produce CBD oil. were also unmet, usually because of budget Beef Industry Report Program Review and limitations. Agencies rated funding needs as the Dave Maples discussed Kentucky beef Investigations Committee greatest challenge to improving technology. industry assets including millions of acres of Minutes At the time of the report, the executive branch fescue, water, and marketing structure. KCA 2017 Interim was undertaking a technology infrastructure produces additional funds through membership July 13, 2017 consolidation to bring all infrastructure assets, fees, monthly publications, and concession stand Call to Order and Roll Call along with all related support personnel, under at the state fairgrounds. Funds between two The Program Review and Investigations direct management of the Commonwealth organizations, the KCA and the Beef Network, Committee met on Thursday, July 13, 2017, at Office of Technology (COT). New infrastructure are separate. 10:00 AM, in Room 131 of the Capitol Annex. purchases were to be made through COT, and KBN training programs include Beef Quality Senator Danny Carroll, Chair, called the meeting only COT could hire infrastructure support staff. Assurance, Cattle Handling and Care, Certified to order and led the audience in the Pledge of All IT personnel actions required approval by Pre-Conditioned for Health, and Integrated Allegiance and a prayer, the secretary called the the Finance and Administration Cabinet (FAC). Traceability Solutions Process Verified Program. roll. Agencies paid COT a monthly fee for the cost Integrated Reproductive Management was Present were: of equipment, software, and support services. created to enroll farms from eastern Kentucky Members: Senator Danny Carroll, Co- COT’s entire budget consisted of payments from with a goal to change producer behavior. He said Chair; Senators Perry B. Clark, Wil Schroder, other agencies. the pregnancy rate increased from 83 percent Dan “Malano” Seum, Reginald Thomas, Stephen COT had begun to intercede with agencies’ to 89 percent which increased revenue by 24 West, and Whitney Westerfield; Representatives plans for their own business applications, percent. Brian Linder, Rob Rothenburger, Arnold attempting to ensure standard development The University of Kentucky offers master Simpson, and Walker Thomas. methods, to share common solutions among series programs including Master Cattlemen, Guests: Mark Bunning, Deputy Secretary, agencies, and to improve sharing of data among Master Stocker, Applied Master Cattlemen, Finance and Administration Cabinet; Tom agencies. Some agencies expressed frustration and Master Grazer. Eden Shale Farm in Owen Stephens, Secretary, Personnel Cabinet; and with COT’s billing process for infrastructure County is utilized as an educational farm with Cynthia Gaskill, Professor, Department of services, other aspects of infrastructure the barn as a classroom. Veterinary Science, University of Kentucky. consolidation, and the process of developing new As part of the project, consumer research LRC Staff: Greg Hager, Committee Staff business applications. The report recommended conducted concluded longer shelf life is needed. Administrator; Chris Hall, Van Knowles, Jean that COT address these concerns. Styrofoam will no longer be used for packaging Ann Myatt, Brandi Norton, William Spears, Many agencies reported difficulty hiring products. Shane Stevens, Joel Thomas; Dexter Horne, and and retaining IT professionals. Partly as a result, Kroger approached the KBN to create a Eve Wallingford, Graduate Fellows; and Kate much of the state government IT workforce project for its stores. Beef Solutions, LLC formed Talley, Committee Assistant. consisted of contractors. The state might be able to act as a middle man between Kroger and Minutes for June 8, 2017 to save money by making changes to attract, farmers. Upon motion by Representative Thomas hire, and retain IT employees rather than The Yards is a new project which will and second by Senator Clark, the minutes for contractors. The report recommended that the function as a classroom environment with a June 8, 2017 were approved by voice vote. Personnel Cabinet, in consultation with FAC lobby that will resemble a museum. Public will Overview of staff report Information and other agencies, conduct a classification and be invited to stockyard. Technology In Kentucky State Government compensation study assessing the overall cost In response to a question by Representative (Adopted November 13, 2014) of equalizing IT compensation with private King, Becky Thompson explained certification Van Knowles summarized the 2014 industry compared to the cost of continuing to and equipment needed before a product roll out. Program Review staff report. use IT contractors. The goal is to enroll cattle in September and have Information technology (IT) infrastructure Some large capital IT projects suffered product ready for distribution in October. consists of computers, servers, networking from cost overruns and delays. Some problems In response to a question by Senator Parrett, hardware, phone systems, operating systems, and appeared to arise from the procurement process Dave Maples stated there are no other states productivity or utility software. Infrastructure and others from project management. Agencies creating this type of project and the number of provides the building blocks for business were not required to consult with COT when jobs created will depend on success of project. applications such as eMARS, KHRIS, or KAVIS. developing their procurements. Each agency Ms. Thompson stated it will reinforce existing Program Review staff surveyed agency was responsible for its own project management jobs to keep them in the state. leaders and staff about the state’s IT assets. with no direct oversight. Improved procurement In response to a question by Representative Overall, state agencies rated their IT assets as and project management procedures might Dossett, Ms. Thompson stated the amount of better than average, but not excellent. Some reduce losses on large projects. The report revenue the beef industry puts into the state is older business applications still worked well but recommended that FAC and COT ensure that over a billion dollars. suffered from various weaknesses. all agencies consult with COT at the earliest The chair stated the next meeting is August Agencies reported numerous instances of stages of considering new or updated business 4, 2017. Documents distributed during the major IT applications that were difficult to use, applications and that all agencies develop their meeting are available with meeting material in and some needed imminent replacement. Several procurement and project designs with input from the LRC Library. There being no further business, applications that needed replacement were COT and the cabinet’s Office of Procurement the meeting was adjourned. very large projects costing millions of dollars. Services. The report also recommended that FAC Agencies often submitted multiple requests for and COT, at their discretion, should ensure that replacement that went unfunded for multiple all agencies employed certified or experienced capital planning cycles. Some smaller IT needs project managers for capital IT projects. COT

32 2017 Interim LEGISLATIVE RECORD should actively review and measure the progress and personnel systems. Accounting for IT business relationship managers, each of whom of such projects and maintain records to develop expenditures on goods and services was should have intimate knowledge of every evidence-based best management practices. improving but still imprecise. It seemed likely that application at his or her designated cabinet. This Attacks on IT systems are increasing in IT accounting would improve greatly if agencies past biennium, four agencies proposed IT capital frequency and sophistication across the private better understood the use of object codes that projects to develop document management sector and government. Although Kentucky had describe the purpose of purchases in eMARS. applications.. If COT had central authority for not reported any major security breaches, the The report recommended that FAC produce and applications, this type of redundancy could Auditor of Public Accounts found IT security maintain a document explaining the intended be eliminated if one project could meet all the vulnerabilities. HB 5, enacted in 2014, included use of each object code in eMARS. The cabinet needs. provisions for reporting security breaches. Ten should implement an ongoing process to verify Recommendation 2.5 concerned security agencies reported breaches that would have that agencies were using object codes correctly initiatives, communication, and training to required reporting under HB 5. IT security is and take corrective action when needed. safeguard information. The chief security not necessarily the province of specialists— The amounts spent for IT staff could not information officer makes regular presentations agency leaders and staff must be aware of be determined using available information in to TAC to explain exposures and risks. potential threats for effective security across the eMARS and KHRIS. The report recommended COT hopes to realize savings with oversight enterprise. The report recommended that COT that COT work with FAC and the Personnel of applications. It may be helpful if the state ensure that all agencies prioritize technology Cabinet to develop a means to calculate the adopted a program like the federal IV&V security initiatives and maintain continuing full-time equivalents and personnel costs of [independent verification and validation] communication and training for their staff on information technology work by state employees. process. Recommendation 2.4 would be met evolving threats and best practices to safeguard Response to recommendations in staff if COT could structure its budget in the next sensitive information in their keeping. report Information Technology In Kentucky budget cycle to handle oversight of applications. Program Review staff examined four State Government COT has 520 staff who deal with specific business applications: the statewide Mr. Bunning said COT can lower annual infrastructure: 360 state employees and 160 accounting system (eMARS), the statewide IT costs by $50 million. The two primary areas contract employees. There are 887 state employees human resources system (KHRIS), the public of focus in the COT budget are infrastructure (33 in COT) and 573 SDS contract employees assistance eligibility system (KAMES), and the and application development. COT spends $100 (29 in COT) who work on applications. motor vehicle information system (AVIS). million on infrastructure and $20 million on Recommendation 4.2 concerned a means The two enterprise applications were more application development. These revenues are to calculate the full-time equivalents (FTE) up to date but received a greater number of generated through charges to other agencies for and personnel costs associated with IT work by complaints than the two agency applications. rated services and enterprise assessments. state employees. These are known for the SDS However, eMARS and KHRIS serve many Recommendation 2.1 of the report was that contract, which is through COT. COT is unaware different agencies, making them visible to COT address concerns about costs and billing. of FTEs of contracts outside COT. All agencies more users with differing needs. EMARS COT has reimplemented the Technical Advisory would have to cooperate to do a comprehensive is a comprehensive package that serves all Council (TAC), which meets monthly. There are FTE count. Identifying non-merit IT staff could state agencies. Some deficiencies were found, three tiers of monthly billing to each cabinet. be an issue. most notably its inability to serve all the Recommendation 4.1 was that eMARS For COT to reach its savings target, it accounting needs of all agencies. Many agencies object codes be clearer. The codes are clear for needs to finish I3 [IT Infrastructure Initiative] supplemented the accounting system with their the $120 million of COT spending. consolidation, strengthen IT applications own business applications or manual procedures, IT spending for the state is close to $500 oversight, remove legacy systems, and move creating extra work. The report recommended million annually. Spending by COT is $120 toward optimizing phases. that COT work with the Office of the Controller million, IT operating expenditures by executive In response to a question from Senator Clark, and agencies that use the statewide accounting agencies are $200 million, and IT capital projects Mr. Bunning said he was unsure if legislation system to find out all the extra procedures and are $180 million. The $50 million reduction or a change to regulations was necessary to business applications that agencies use to meet target is a 10 percent reduction in cost. By give COT authority over applications to reduce their accounting needs. The offices should consolidating IT equipment and personnel into redundancy. identify the reasons that agencies need these COT, costs have been cut by $12 million to $15 In response to a question from Senator additional procedures and applications and million annually. Carroll, Mr. Bunning said every cabinet has its then develop solutions so that agencies may use TAC is looking at the $380 million budgets own budget and there is a lack of oversight at a eMARS more efficiently. for capital projects and operating expenses to cut higher level to reduce redundancies. For example, Agencies rated KHRIS less highly than costs on about 2,400 agency applications. Each five cabinets bought the same software before eMARS, but KHRIS was newer and had less time agency owns and manages its own applications, COT realized it. COT established an enterprise to mature and achieve acceptance. but consolidation may lead to savings. TAC has relationship for the software at the same price. It KAMES and AVIS, the agency applications, done an inventory of applications to categorize was then available to all cabinets. were decades old and in the process of being and consolidate to reduce redundancies. Mr. Bunning said that COT needs to: replaced. Both were reported as performing their TAC will need to review statutes to make sure finish I3 consolidation, which would save basic functions well but being difficult to modify consolidation is compliant with requirements approximately $25 million; when needed. They suffered from the same for data handling. COT is looking at trying to continue to collapse and optimize licensing inefficiencies as other outdated applications. reduce legacy systems. and hardware, including leasing hardware and It was not possible to determine accurately Recommendation 2.3 was that COT be using cloud-based solutions; the total annual cost of technology in state involved at the outset of agencies’ large IT strengthen oversight on IT applications government using the statewide accounting projects. COT is improving in this area. It has and have a centralized view on IT spending on THE KENTUCKY GENERAL ASSEMBLY 33 applications, operating budgets, capital projects, adopted the report and its recommendations hired someone who left after 2 weeks to the and agency staffing; and in November 2014. A current staff person who private sector for double the salary. focus on reviewing and measuring progress worked in the cabinet at the time told him that 2016 Study of Current Conditions of of projects to develop best management practices someone from the governor’s office called to say Kentucky County Animal Shelters and Degree as suggested in recommendation 2.4. TAC is that the study should not be done. In general, of Compliance with Kentucky Animal Shelter starting to do this, but it will be a long process. the benefit structure for the state is costly. It Laws (University of Kentucky) Recommendation 2.2 is that a study should is difficult to maintain the type of workforce Ms. Gaskill said that 10 years ago she be done to compare the cost of IT compensation needed in COT. Turnover is a challenge. learned that the animal shelter in her county with private industry. This is challenging because In response to a question from Senator was an old barn. In 2004, legislation was some of the legacy system applications in use are Carroll about developing IT talent, Mr. Stephens enacted requiring that each county set up its so old that employees who know them are hard said Labor Cabinet Secretary Ramsey is an own shelter program or contract with another to find. advocate for internship programs, but available county. Shelter standards are minimal. There are COT needs to adopt a mentality of buy funding is lacking. no requirements for adoption programs, spay/ versus build, which would typically be less In response to a question from Senator neuter programs, or prophylactic veterinary expensive. COT could help agencies share Carroll, Mr. Bunning said COT evaluates each care. By 2007, counties were supposed to be in existing solutions. TAC is working on a request decision to determine whether outsourcing is compliance of the 2004 legislation, but there are for proposals that will allow COT to bid on turn- appropriate. It depends on cost. no enforcement provisions. key solutions. In response to questions from Senator The University of Kentucky, Morehead State Standard platforms need to be established Thomas, Mr. Stephens said that the state has a University, and Lincoln Memorial University statewide. Utilizing the cloud is secure with compensation and classification system in place, provided funding for a study of conditions of lower upfront cost. COT oversight will help but the salary scale has not been adjusted in over county shelters. Veterinary students from Lincoln focus on enterprise-wide solutions rather than 10 years. If funds were available to adjust salary Memorial University visited each county shelter. just cabinet solutions. IV&V will help to achieve scales, the state could compete with the private There are 92 county shelters that serve the 120 this goal. COT is preparing a reorganization to sector for IT workers. counties. Overall, 12 percent of shelters followed include business relationship managers who will In response to questions from Senator West all parts of the law, 27 percent violated one or be liaisons with cabinets. In summary, central and Senator Westerfield, Mr. Stephens said that two parts of the law, and 57 percent violated COT oversight of applications would help save he will determine the origin of the compensation three or more parts of the law. Four percent were money. study request. A compensation study like the classified as undetermined. Shelters of different In response to questions from Senator West, one requested would take 6 to 9 months to levels of compliance are spread across the state. Mr. Bunning said COT manages the hardware complete. Mr. Bunning commented that he was Shelters were also measured on a general for the AVIS system, but information on the also unaware of the report until recently when grading system for good, modern, standard system update would need to come from the he received the request to respond to the report’s shelter practices but that are not required by law. Transportation Cabinet. If COT gets involved recommendations. Overall, 21 percent of shelters were good quality, in enterprise solutions, statutes that restrict data Senator Carroll read recommendation 2.2 42 percent needed improvement in a few areas, may need to be addressed and cooperation from from the Program Review report and clarified and 36 percent needed improvement in many all cabinets will be needed. COT hopes to present that this is the recommended compensation areas. One percent of shelters were classified as legislation in the 2018 regular session that would study in question. undetermined. address statutes relating to data sharing. This In response to a question from Senator Nearly one-half of county shelters do requires identifying all relevant statutes for COT Thomas, Mr. Stephens said the commissioner not have quarantine areas, 75 percent are not and each cabinet. of the Department of Human Resource adequately sized, and 25 percent do not accept In response to questions from Senator Administration in the current and previous cats. About a third of the shelters that accept cats Carroll, Mr. Bunning said that agencies have administration said that she was told by Mary are in deplorable condition. Some shelters were approximately 50 methods to collect fees. COT Lassiter, secretary of the Governor’s Executive never open to the public and over half did not should be looking for an enterprise solution to Cabinet, not to perform the compensation study. have impervious building materials. accommodate all the ways to collect fees. Cloud There is nothing in writing about this. The major problems identified by shelter storage is automatically backed up. Using cloud In response to questions from Representative workers were a lack of funding, lack of low-cost storage also changes spending from capital to Simpson, Mr. Stephens said it is challenging to spay/neuter programs, and lack of education for operating, which is more consistent over time. obtain and retain talent for the Department of shelter staff and the public. Over 50 percent of Senator Carroll asked for a comment on Corrections, largely due to locations in rural county shelters still have problems in complying Deloitte and asked whether the experience areas. The cabinet has looked at several initiatives with current standards. In 2004, $3 million was with Deloitte had been studied sufficiently. Mr. to obtain personnel, including accepting military made available to counties to improve shelters, Bunning said that COT uses many great outside service to offset training requirements in but no additional money has been made available. vendors. Each application is unique. A good correctional positions. In some other professions, Self-regulation by counties is not working. structure in the beginning and knowing the it is difficult to provide services because of the Enforcement is necessary if all counties are to desired result will determine the success of a lack of qualified personnel. For example, it has come into minimum regulatory compliance. project. Communication would be better with not been possible to hire HVAC personnel for In response to questions from Senator COT having oversight of all IT spending and the LEED-certified Sower building. Ultimately, Schroder, Ms. Gaskill said the undetermined staffing. there is a lack of funds to be competitive. measurements were shelters that were closed for Mr. Stephens said that he only recently In response to a question from legal purposes or in the process of being built. became aware of Recommendation 2.2, that a Representative Simpson about the frustration There are some requirements in statutes for compensation study be done. The committee of hiring for COT, Mr. Bunning said he recently humanely euthanizing injured or sick animals. If

34 2017 Interim LEGISLATIVE RECORD a shelter does not have an adoption program, the Eastern Kentucky University; Sue Hodges Moore, funded, maintenance pool funding is utilized to minimum hold time is 5 days. The students did Senior Vice President for Administration and the extent possible to fix small projects. not evaluate euthanization as part of the study. Finance, Mary Paula Schuh, Director of Campus In response to a question from Representative Many shelters participate in interstate adoption and Space Planning, and Syed Zaidi, Assistant Vice Johnson, Mr. Marks replied that KCTCS projects programs to address overpopulation. After the President for Facilities Management, Northern are solely funded with state funds, and there is study was published, many shelters asked for Kentucky University; Kevin Appleton, Senior no match from local sources. Mr. Marks said help on ways to improve. Vice President for Finance and Administration, through the BuildSmart Initiative, they have Representative Linder commented that this and Joseph Gronefeld, Senior Project Manager, reached out to local communities to help, and is a good example of how government should Kentucky State University; Lee Smith, Chief they have stepped up. work. While he worked on the Grant County Operating Officer, and Jim Sears, Associate Vice In response to a question from Senator Fiscal Court, many local groups asked for President for Facilities Management, University Humphries regarding KCTCS’ deferred improvements to the local shelters. of Louisville; Angela Martin, Vice President maintenance needs, Ms. Adkins said in the 2016- Senator Carroll agreed that many of the for Financial Operations, Chief Budget Officer, 2022 Capital Plan, KCTCS requested $20 million problems can be helped at the local level. Based and Mary Vosevich, Vice President for Facilities for a deferred maintenance pool, and in the on visiting Lebanon and seeing the amount of Management, Chief Facilities Officer, University current capital plan, the request is $31.6 million. industry in the area, Senator Carroll said that of Kentucky; Rick Linio, Assistant Vice President Mr. Followell said KCTCS’ could not afford to for the next committee meeting he would like to for Facilities, and Beth Patrick, Chief Financial fund its total deferred maintenance needs, which see how the Cabinet for Economic Development Officer and Vice President for Administration, amounts to over $100 million. Each KCTCS presents packages to prospective companies Morehead State University; Bryan Russell, Chief college was asked to present its top priority to looking to locate in Kentucky and see statistics Facilities Officer, and Dr. Michelle Trawick, include in the pool request. The projects focus on on the past 10 years. Associate Dean of the Gordon Ford College of roof replacement projects, HVAC, and electrical Representative Simpson commented that he Business, Western Kentucky University; Dr. repairs. would like to include information on incentives Robert O. Davies, President, and Jackie Dudley, Eastern Kentucky University offered and whether there are mechanisms to Vice President for Finance and Administrative David T. McFaddin, Ed.D, Vice President, assure performance. Reports are not received on Services, , Sherron Office of Engagement, Regional Stewardship and what happens with the incentives. Jackson, Senior Fellow Finance and Budgets, Government Relations, Paul Gannoe, Associate The meeting adjourned at 12:06 PM. and Ron Carson, Senior Fellow and Legislative Vice President, Facilities Services and Capital Liaison, Council on Postsecondary Education. Planning, Capital Construction and Project LRC Staff: Shawn Bowen, Julia Wang, and Administration, and Ryan D. Green, Executive Capital Planning Advisory Jennifer Luttrell. Director, Budgeting and Financial Planning, Board Approval of Minutes discussed the university’s capital needs. The Minutes of the 3rd Meeting A motion to approve the minutes of the university’s capital plan, for the six-year of the 2017 Calendar June 20, 2017 meeting was made by Senator period, included 47 proposed projects totaling July 18, 2017 Westerfield, seconded by Representative$863,707,000. Call to Order and Roll Call Johnson, and approved by voice vote. In response to a question from Senator The 3rd meeting of the Capital Planning Consideration of Agency Plans Westerfield, Dr. McFaddin said the unmanned Advisory Board was held on Tuesday, July 18, The Capital Planning Advisory Board aircraft program is not yet part of the Eastern 2017, at 9:30 AM, in Room 131 of the Capitol received testimony regarding 10 state agency Kentucky University Aviation Program, however, Annex. Senator Stan Humphries, Chair, called capital plans: Kentucky Community and it will be included in the future. The FDA is the meeting to order, and the secretary called the Technical College System (KCTCS), Eastern writing regulations for such a program at this roll. Kentucky University, Northern Kentucky time. Present were: University, Kentucky State University, University In response to a question from Senator Members: Senator Stan Humphries, Co- of Louisville, University of Kentucky, University Humphries, Dr. McFaddin explained that Chair; Representative Daniel Elliott, Co-Chair; of Kentucky Hospital, Morehead State University, “aeroready” refers the ability to move products, Senator Whitney Westerfield, Representative Western Kentucky University, and Murray State goods, and services via flight. He said EKU is DJ Johnson; Charles Byers, Carole Henderson, University. The testimony included discussion “aeroready” to export products from Kentucky. William Landrum, Dan Markwell, Mark of capital construction, information technology, The Aviation Program has 140 students enrolled Overstreet, Kaelin Reed, and Katie Shepherd. and equipment needs for the period 2018-2024. and the program is growing quickly. Guests: Wendell Followell, Vice President, Kentucky Community and Technical In response to a question from Mr. Reed Ken Marks, System Director, Facilities Support College System concerning the Model Laboratory, Dr. McFaddin Services and Capital Projects, and Sandy Wendell Followell, Vice President, Ken said EKU is the only model school left in the state. Adkins, Director of Capital Projects and Marks, System Director, Facilities Support There are 750 students, kindergarten through Budgeting, Facilities Support Services, Kentucky Services and Capital Projects, and Sandy Adkins, grade 12, and the students are predominantly Community and Technical College System; Director of Capital Projects and Budgeting, from Madison County. Constructed in 1962, the David T. McFaddin, Ed.D, Vice President, Office Facilities Support Services, gave a brief overview building is greatly in need of capital investment. of Engagement, Regional Stewardship and of the KCTCS capital plan. For the six-year The school also serves as critical laboratory space Government Relations, Paul Gannoe, Associate period, the KCTCS capital plan included 132 for the university’s students to hone their skills Vice President, Facilities Services and Capital proposed projects totaling $1,120,200,000. and be productive members of their profession. Planning, Capital Construction and Project In response to a question from Mr. Landrum, In response to a question from Representative Administration, and Ryan D. Green, Executive Mr. Followell stated that KCTCS has very limited Johnson, Dr. McFaddin stated the university’s Director, Budgeting and Financial Planning, resources, and when capital projects are not top strategic priority is the College of Education THE KENTUCKY GENERAL ASSEMBLY 35 Complex project, which will include either the VFA Study concluded that capital renewal project basis. Postsecondary institutions select renovation or new construction. The university’s needs for the Life Science, Natural Science, and and rank their projects based on three priority second priority is the lease aviation project, Chemistry buildings totaled over $42 million. areas: asset preservation, construction of new/ which will be co-located with KCTCS partners University of Kentucky expanded education and general research in Ashland, Jeffersontown, Owensboro, and Angela Martin, Vice President for facilities, and information technology initiatives. Somerset; and the infrastructure/maintenance Financial Operations, Chief Budget Officer, and Each institution submits a project list to CPE in pool is the third priority. Mary Vosevich, Vice President for Facilities order to be eligible to receive an allocation of Northern Kentucky University Management, Chief Facilities Officer, presented funds, and the institutions must agree to meet Sue Hodges Moore, Senior Vice President the capital plan for the University of Kentucky. a certain balance of the expenditures on asset for Administration and Finance, Mary Paula The university’s capital plan, for the six-year preservation. Schuh, Director of Campus and Space Planning, period, included 288 proposed projects totaling This multi-biennia funding approach and Sayed Zaidi, Assistant Vice President for $7,089,800,000. The University of Kentucky provides a balanced investment as recommended Facilities Management, gave a brief presentation Hospital plan contained a total of 67 proposed by the VFA Study; allowing more flexibility for of Northern Kentucky University’s six-year projects totaling $3,822,000,000. institutions to implement capital projects; allow capital plan. The university’s capital plan, for the In response to a question from Senator campuses to better plan for construction; and six-year period, included 44 proposed projects Westerfield, Ms. Vosevich stated that the Facilities provides for stronger protection of state-owned totaling $683,600,000. Renewal and Modernization project will include assets. Mr. Landrum asked if there are significant renovation of the Grehan building. While the Morehead State University safety concerns associated with the Repair building is being renovated, the College of Rick Linio, Assistant Vice President for Structural Heaving Landrum/Fine Arts project, Communication and Information (located in Facilities, and Beth Patrick, Chief Financial the Replace Underground Gas Mains project, Grehan), will be relocated to another facility on Officer and Vice President for Administration, and the Replace Underground Water Mains campus. Ms. Vosevich said the new location for presented the university’s capital plan. The project that should be addressed immediately. the College of Communication and Information university’s capital plan, for the six-year Mr. Zaidi stated that NKU has hired structural has not been determined yet. She stated that the period, included 59 proposed projects totaling engineers to perform evaluations, and remedial Colleges of Communication and Information $720,762,000. steps have been taken to address safety issues. and Psychology are two of the university’s largest In response to a question from Mr. He added that there is no immediate threat, but growing programs and they expect the growth to Markwell about the decrease in project scope long-term solutions to the problems are needed. continue. for the Bert T. Combs Building, Mr. Linio said Kentucky State University In response to a question from Mr. Reed the university staff worked with the architect to Kevin Appleton, Senior Vice President about future use of the theological seminary, Mr. re-evaluate the renovation costs. He added that for Finance and Administration, and Joseph Vosevich stated no decision has been made yet the scope of work was reduced, and the project is Gronefeld, Senior Project Manager, discussed as to the use of this building other than to use it now more focused on asset preservation to keep the university’s capital needs. The university’s as swing space. the building functioning. Ms. Patrick added they capital plan, for the six-year period, included 18 Senator Humphries asked Sherron Jackson, came estimated the current project by using proposed projects totaling $244,587,000. Senior Fellow Finance and Budgets and former the CPE formula to lower the project funding In regard to the Construct Health Sciences board member, and Ron Carson, Senior request. [The project scope has decreased from Center project, Senator Humphries asked where Fellow and Legislative Liaison, Council on $45,050,000 in the 2016-2022 capital plan to the new building will be sited. Mr. Gronefeld Postsecondary Education, to brief the members $31,761,000.] said there was discussion about locating the on the VFA Study. In April 2007, the Council In response to a question from Senator facility off campus, and there was an opportunity on Postsecondary Education entered into a Humphries regarding the Repair Camden- for some funding for an off campus location, but contract for a study of the state’s postsecondary Carroll Library Facade project, Ms. Patrick stated it did not work out. He added that there is land education facilities. The study was undertaken that the university used its own funds to address on campus, and with the funding from the state, by Vanderweil Facility Advisors Inc. (VFA) of the stonework problems with the library. She there will not be any restrictions on locating the Boston, Massachusetts. Mr. Jackson said since said there has been no help from the Department building on campus. the completion of the VFA Study, CPE has sought of Library and Archives or the National Register University of Louisville to implement a process that blended VFA’s of Historic Places. Lee Smith, Chief Operating Officer and recommendations of asset preservation, major Western Kentucky University Jim Sears, Associate Vice President for Facilities renovations, and construction of new/expanded Bryan Russell, Chief Facilities Officer, and Management, discussed the university’s capital education and general facilities to meet the Dr. Michele Trawick, Associate Dean of the plan. The university’s capital plan, for the six- needs of postsecondary institutions. The VFA Gordon Ford College of Business, discussed year period, included 87 proposed projects Study estimated that by 2021 there would be a Western Kentucky University’s capital plan. totaling $1,405,190,000. $12 billion need for asset preservation if the state The university’s capital plan, for the six-year In response to a question from Senator did not address its postsecondary institution period, included 52 proposed projects totaling Humphries about the Upgrade-STEM deferred maintenance needs. $831,900,000. There were no questions regarding Instruction Building project (priority #1, $50 Mr. Jackson said CPE has developed an the university’s plan. million), Mr. Sears said the project scope was approach and model to address the capital Murray State University formulated by in-house staff focusing on critical needs of postsecondary institutions. The model Dr. Robert O. Davies, President, and and deficient spaces in eight different buildings. recommends that a pool of funds be established Jackie Dudley, Vice President for Finance and He said 65 percent of the project budget will be and administered by CPE, and funding be done Administrative Services, gave a brief overview invested in mechanical, electrical and plumbing in terms of an allocation of dollars to each of Murray State University’s capital plan. upgrades in buildings over 50 years old. He said postsecondary institution, rather than on a per- The university’s capital plan, for the six-year

36 2017 Interim LEGISLATIVE RECORD period, included 65 proposed projects totaling In response to a question by Co-Chair through 4, and 6 to comply with the drafting and $576,397,000. Harris, Mr. Pauw stated that he was unable formatting requirements of KRS Chapter 13A. In response to a question from Senator to respond to inquiries regarding actuarial Without objection, and with agreement of the Humphries concerning the gas explosion in New assumptions. agency, the amendments were approved. Richmond College and the need for additional A motion was made and seconded to FINANCE AND ADMINISTRATION funds to repair this building, Dr. Davies said the approve the following amendments: (1) to amend CABINET: Office of the Secretary: Purchasing incident took place in a facility that was built the RELATES TO paragraph to correct citations; 200 KAR 5:081. Repeal of 200 KAR 5:081. in 2009 and it was most likely a gas explosion. and (2) to amend Sections 5, 7, and 8 to comply Gwen Pinson, general counsel, represented the The repairs will be covered by state insurance with the drafting and formatting requirements of office. proceeds. KRS Chapter 13A. Without objection, and with GENERAL GOVERNMENT CABINET: Senator Humphries stated the August agreement of the agency, the amendments were Board of Nursing meeting will conclude the review of all capital approved. 201 KAR 20:070. Licensure by examination. plans. At that meeting, there will also be two 4 KAR 1:040. Limitation of benefits. Morgan Ransdell, staff attorney supervisor, and presentations – the state debt report and the A motion was made and seconded to Paula Schenk, executive director, represented the Council on Postsecondary Education will present approve the following amendments: (1) to board. its project report on all postsecondary institution amend Section 1 to add one definition; and (2) In response to questions by Senator Clark, capital projects and capital IT projects. to amend the NECESSITY, FUNCTION, AND Ms. Schenk stated that she was unaware of Adjournment CONFORMITY paragraph and Sections 3 and any specific efforts to recruit nurses from The next meeting is scheduled for Tuesday, 5 to comply with the drafting and formatting Puerto Rico. Puerto Rican nursing program August 15, 2017, in Room 129 Annex starting at requirements of KRS Chapter 13A. Without requirements did not comply with those of the 9:30 AM. There being no further business, the objection, and with agreement of the agency, the rest of the U.S.; therefore, the board required meeting was adjourned at 11:55 a.m. amendments were approved. applicants to complete the visa-screening process 4 KAR 1:050. Code of professional conduct. with an evaluation of their nursing program Administrative Regulation A motion was made and seconded requirements. Review Subcommittee to approve the following amendments: to A motion was made and seconded to approve Minutes of the July Meeting amend the NECESSITY, FUNCTION, AND the following amendments: to amend Section July 11, 2017 CONFORMITY paragraph and Sections 1 1 to comply with the drafting requirements of Call to Order and Roll Call through 6 to comply with the drafting and KRS Chapter 13A. Without objection, and with The July meeting of the Administrative formatting requirements of KRS Chapter 13A. agreement of the agency, the amendments were Regulation Review Subcommittee was held on Without objection, and with agreement of the approved. Tuesday, July 11, 2017, at 1:00 PM, in Room agency, the amendments were approved. 201 KAR 20:110. Licensure by endorsement. 149 of the Capitol Annex. Senator Ernie Harris, OFFICE OF SECRETARY OF STATE: A motion was made and seconded to Chair, called the meeting to order, and the Certifications approve the following amendments: to amend secretary called the roll. 30 KAR 2:010. Certification of vacancy Sections 1 through 3 to comply with the drafting Present were: in nominations. Margaret Walton, director of requirements of KRS Chapter 13A. Without Members: Senator Ernie Harris, Co-Chair; business, represented the office. objection, and with agreement of the agency, the Representative Ken Upchurch, Co-Chair; A motion was made and seconded to amendments were approved. Senators, Perry B. Clark, and Alice Forgy Kerr; approve the following amendments: (1) to amend 201 KAR 20:225. Reinstatement of license. Representatives Mary Lou Marzian, Jason Petrie, Section 2 to specify examples of documentation 201 KAR 20:480. Licensure of graduates of and Tommy Turner. that can be submitted to substantiate a vacancy foreign nursing schools. Guests: Alan Pauw, Judicial Retirement due to death; and (2) to amend the NECESSITY, TOURISM, ARTS, AND HERITAGE Systems; Margaret Walton, Secretary of State; FUNCTION, AND CONFORMITY paragraph CABINET: Department of Fish and Wildlife Gwen Pinson, Finance and Administration and Sections 1 through 3 to comply with the Resources: Game Cabinet; Morgan Ransdell, Paula Schenk, Board drafting requirements of KRS Chapter 13A. 301 KAR 2:222. Waterfowl hunting of Nursing; Amber Arnett, Steve Beam, Karen Without objection, and with agreement of the requirements on public lands. Amber Arnett, Waldrop, Department for Fish and Wildlife; agency, the amendments were approved. attorney; Steve Beam, wildlife division director; Amy Barker, Terry Manuel, Department of 30 KAR 5:060. Search requests and reports. and Karen Waldrop, deputy commissioner, Corrections; Beth Milburn, Kevin Osborne, In response to questions by Co-Chair Harris, represented the department. Department for Libraries and Archives; Ms. Walton stated that financing statements 301 KAR 2:225 & E. Dove, wood duck, teal, Andy Hightower, Beth Kuhn, Department of were filed with the Office of Secretary of State and other migratory game bird hunting. Workforce Investment; Laura Begin, Jeffery against both individuals and property. Generally, In response to a question by Co-Chair Sparks, Office of Vital Statistics. financing statements were filed against movable Harris, Ms. Waldrop stated that wetland and LRC Staff: Sarah Amburgey, Stacy Auterson, objects, such as vehicles, crops, and construction water-fowl areas prohibited lead shot from being Emily Caudill, Betsy Cupp, Ange Darnell, Emily or farm equipment. Liens against property were used. This administrative regulation expanded Harkenrider, Karen Howard, and Carrie Klaber. usually filed with the clerk’s office, rather than the areas and the species covered. Lead shot was FINANCE AND ADMINISTRATION with the Secretary of State. Bankruptcies were not prohibited for squirrel hunting. CABINET: Judicial Form Retirement System not usually filed with the Secretary of State. JUSTICE AND PUBLIC SAFETY 4 KAR 1:010. General compliance with A motion was made and seconded CABINET: Department of Corrections: Parole federal tax laws. Alan Pauw, attorney with Reed to approve the following amendments: to Board Weitkamp Schell and Vice, represented the amend the NECESSITY, FUNCTION, AND 501 KAR 1:030 & E. Determining parole system. CONFORMITY paragraph and Sections 2 eligibility. Amy Barker, assistant general counsel, THE KENTUCKY GENERAL ASSEMBLY 37 represented the cabinet. 901 KAR 5:061. Repeal of 901 KAR 5:060. 401 KAR 8:040. Laboratory certification. In response to a question by Senator Clark, Laura Begin, regulation coordinator, and Jeffrey 401 KAR 8:075. Consumer confidence Ms. Barker stated that time-served requirements Sparks, administrative section supervisor, reports and public notification. were established as percentages based on when represented the division. 401 KAR 8:100. Design, construction, and each crime was committed. The most current 901 KAR 5:120. Induced termination of approval of facilities and approval timetable for percentage was twenty (20) percent. pregnancy reporting. 401 KAR Chapter 8. In response to questions by Co-Chair In response to a request by Representative 401 KAR 8:250. Inorganic and organic Harris, Ms. Barker stated that the change in this Marzian, Ms. Begin provided a copy of the chemical sampling, analytical techniques, administrative regulation was in response to Report of Induced Termination of Pregnancy maximum contaminant levels, radionuclides, Louisville’s incarceration overcrowding problem, form to Representative Marzian. In response to and secondary standards. thus necessitating the emergency administrative a question by Representative Marzian, Ms. Begin Division of Waste Management: Solid Waste regulation. 501 KAR 6:140 addressed a mini- stated that Vital Statistics did not require similar Planning mum-security facility, Bell County Forestry reporting for other healthcare procedures, such 401 KAR 49:011. General provisions relating Camp. as a colonoscopy or eye surgery. Representative to area solid waste management plans. A motion was made and seconded to Marzian stated that it was interesting that many 401 KAR 49:080. Solid waste grant funds and approve the following amendment: to amend the Kentuckians were opposed to government solid waste collector and recycler registration. RELATES TO paragraph to correct a citation. intrusion; however, this administrative 401 KAR 49:091. Repeal of 401 KAR 49:040, Without objection, and with agreement of the regulation required government reporting on 401 KAR 49:090, and 401 KAR 49:210. agency, the amendment was approved. the most personal private decisions made by JUSTICE AND PUBLIC SAFETY Office of the Secretary Kentuckians. Representative Marzian requested CABINET: Department of Juvenile Justice: Child 501 KAR 6:140. Bell County Forestry Camp. to be recorded as voting in opposition to this Welfare A motion was made and seconded to approve administrative regulation. 505 KAR 1:130. Department of Juvenile the following amendments: to amend Section A motion was made and seconded to Justice Policies and Procedures: juvenile services 1 and the material incorporated by reference approve the following amendments: to amend community. to comply with the drafting requirements of Sections 2 and 3 to comply with the drafting and TRANSPORTATION CABINET: KRS Chapter 13A. Without objection, and with formatting requirements of KRS Chapter 13A. Department of Vehicle Regulation: Division of agreement of the agency, the amendments were Without objection, and with agreement of the Driver Licensing: Administration approved. agency, the amendments were approved. 601 KAR 2:030 & E. Ignition interlock. EDUCATION AND WORKFORCE Other Business: Co-Chair Harris introduced EDUCATION AND WORKFORCE DEVELOPMENT CABINET: Department of a new administrative regulations analyst, Stacy DEVELOPMENT CABINET: Department of Libraries and Archives Auterson. The Subcommittee welcomed Mr. Workplace Development: Office of Employment 725 KAR 2:070. Certification renewal of Auterson. and Training: Unemployment Insurance public librarians. Terry Manuel, commissioner; The following administrative regulations 787 KAR 1:070. Reasonable time for Beth Milburn, division director; and Kevin were deferred or removed from the July 11, 2017, protesting claim. Osborne, attorney, represented the department. Subcommittee agenda: PUBLIC PROTECTION CABINET: In response to a question by Senator Clark, EDUCATION AND WORKFORCE Department of Alcoholic Beverage Control: Mr. Manuel stated that the workshop, lecture DEVELOPMENT CABINET: Education Licensing series, and training program references pertained Professional Standards Board: Teaching 804 KAR 4:230. Extended hours to continuing education. Certificates supplemental licenses. A motion was made and seconded to 16 KAR 2:020. Occupation-based career Local Administrators approve the following amendments: to amend and technical education certification. 804 KAR 10:010. Appointment notification Section 4 to comply with the drafting and Educator Preparation of local administrator. formatting requirements of KRS Chapter 13A. 16 KAR 5:020. Standards for admission to Without objection, and with agreement of the educator preparation. Department of Insurance: Health and Life agency, the amendments were approved. Advanced Certification and Rank Division: Health Insurance Contracts Department of Workforce Investment: 16 KAR 8:040. Ranking of occupation- 806 KAR 17:575. Pharmacy benefit Employment Services based career and technical education teachers. managers. 787 KAR 2:040 & E. Local workforce GENERAL GOVERNMENT CABINET: CABINET FOR HEALTH AND FAMILY development area governance. Andy Hightower, Board of Pharmacy SERVICES: Office of Health Policy: Certificate senior policy advisor, and Beth Kuhn, 201 KAR 2:076. Compounding. of Need commissioner, represented the department. ENERGY AND ENVIRONMENT 900 KAR 6:125. Certificate of need annual A motion was made and seconded to CABINET: Department for Environmental surveys. approve the following amendments: to amend Protection: Division of Water: Public Water Data Reporting and Public Use Data Sets Sections 5 and 6 to comply with the drafting and Supply 900 KAR 7:030. Data reporting by health formatting requirements of KRS Chapter 13A. 401 KAR 8:010. Definitions for 401 KAR care providers. Without objection, and with agreement of the Chapter 8. 900 KAR 7:040. Release of public data sets agency, the amendments were approved. 401 KAR 8:011. Repeal of 401 KAR 8:070, for health care discharge data. CABINET FOR HEALTH AND FAMILY 401 KAR 8:101, 401 KAR 8:550, and 401 KAR Department for Public Health: Division of SERVICES: Department for Public Health: 8:600. Public Health Protection and Safety: Radon Division of Epidemiology and Health Planning: 401 KAR 8:020. Public and semipublic 902 KAR 95:040. Radon Contractor Vital Statistics water systems; submetering; general provisions. Certification Program.

38 2017 Interim LEGISLATIVE RECORD Department for Medicaid Services: Division Representative Moser as House co-chair. A contracts are an extension of the original Request of Policy and Operations: Medicaid Services motion was made by Representative Gooch, for Proposal (RFP) that contain five MCOs. The 907 KAR 1:041E. Repeal of 907 KAR 1:018 seconded by Representative Gibbons Prunty, and department would like to maintain consistency and 907 KAR 1:019. approved by voice vote that nominations cease and would need to clarify with CMS before it Payment and Services and Representative Moser be elected House co- could do away with any of the MCOs because 907 KAR 3:206E. Repeal of 907 KAR 3:205. chair by acclamation. that could generate an open enrollment process Outpatient Pharmacy Program Approval of the Minutes from the October for those members. 907 KAR 23:001 & E. Definitions for 907 19, 2016 Meeting In response to questions from Representative KAR Chapter 23. A motion to approve the minutes of Benvenuti, Deputy Commissioner Cecil stated 907 KAR 23:010 & E. Outpatient pharmacy the October 19, 2016 meeting was made by DMS does step back from the administration of program. Representative Benvenuti, seconded by Senator the MCOs day to day operations. 907 KAR 23:020 & E. Reimbursement for Meredith, and approved by voice vote. In response to questions from outpatient drugs. New Medicaid Managed Care Representative Moser, Deputy Commissioner The Subcommittee adjourned at 1:30 p.m. Organizations (MCOs) Contracts with the Cecil stated she could provide a report regarding until August 14, 2017, at 1 p.m. Commonwealth the timeline for credentialing providers. She Veronica Cecil, Deputy Commissioner, stated the MCOs require credentialing within 45 Medicaid Oversight and Department for Medicaid Services, Cabinet for days of a complete application for a behavioral Advisory Committee Health and Family Services, stated the latest health provider. For a regular provider it is 90 Minutes MCOs’ contracts became effective July 1, 2017 days and the department monitors that the July 17, 2017 and will continue until December 31, 2017. reports are reflecting that number. There will be Call to Order and Roll Call The MCOs’ contracts added language that outliers but DMS does write letters of concern The Medicaid Oversight and Advisory requires the MCOs to participate in and pass if the MCOs are outside of that number of days Committee meeting was held on Monday, July a readiness review for the Kentucky HEALTH and the MCOs are not addressing the issue. The 17, 2017, at 1:00 PM, in Room 131 of the Capitol 1115 Waiver in order to be eligible for any future department’s fiscal agent utilizes a subcontractor Annex. Senator Ralph Alvarado, Chair, called contract extension. The contracts require the to do all utilization management. the meeting to order, and the secretary called the MCOs to provide one credentialing process to In response to questions from Senator roll. satisfy credentialing for the MCOs and any of Alvarado, Deputy Commissioner Cecil stated Present were: its subcontractors, if permitted under National prior to July of 2016, the department set a risk Members: Senator Ralph Alvarado, Co- Committee for Quality Assurance (NCQA) corridor for our Affordable Care Act (ACA) Chair; Representative Kimberly Poore Moser, requirements. The Department for Medicaid Medicaid expansion population, with a MLR Co-Chair Designate; Senators Julie Raque Services (DMS) has added clarifying language between 82 percent and 92 percent. If MCOs Adams, Danny Carroll, Morgan McGarvey, to the contracts stating the external independent were below 82 percent it had a premium refund. and Stephen Meredith; Representatives Robert third party provider appeal applies to emergency Prior to 2016, the only premium refunds have Benvenuti III, Jim Gooch Jr., Joni L. Jenkins, and room services. The entire Pharmacy Benefit been on the ACA population which is all federal Melinda Gibbons Prunty. Section was amended to incorporate changes dollars. The premium refunds for calendar Guest Legislators: Representatives Danny required by Section 1927 of the Social Security year 2014 was $97,023,465.00 and for calendar Bentley, Ken Fleming, Russell Webber, and Act as well as clarify language in the contracts. year 2015 was $42,444,039.00. The department Addia Wuchner. In the contracts, additional language required will not see the results of the new requirement Guests: Veronica Cecil, Deputy the MCOs to maintain an adequate behavioral implemented in July of 2016 until a year after the Commissioner, Department for Medicaid health network for continuum of care upon close of the 2016 calendar year. DMS hopes the Services, Cabinet for Health and Family Services; decertification at a certain level of care. Future new provider appeal process will aid providers in Pat Smith, RMC RMM, Chief Financial Officer, managed care contracts will contain specific getting substantiated services through the claim Owner, MD Billing Services, LLC; Rosmond J. Kentucky HEALTH 1115 Waiver requirements, process and push MCOs to change behavior and Dolen, Kentucky Association of Health Plans; changes to quality measures, increased financial cover services once an appeal is settled. Lynn Tanner, Vice President Payer Strategy and reporting and a focus on encounter quality. In response to questions from Senator Operations; Krista Matlock, Senior Director Payer In response to questions from Senator Alvarado, Deputy Commissioner Cecil stated Contracting, KentuckyOne Health, Kentucky Meredith, Deputy Commissioner Cecil stated the department could compare commercial Hospital Association; Mike Downing, President the Centers for Medicare and Medicaid Services insurance appeal ratios to Medicaid appeal RSVP Homecare, Kentucky Medical Equipment (CMS) requires a minimum of two MCOs ratios. The top three appeal requests have been Supplier Association; Sarah S. Nicholson and for the State but having at least three MCOs for; air and ambulance, inpatient stays primarily Carl Herde, Kentucky Hospital Association; gives the Department of Medicaid Services the psychiatric, and anesthesia. The MCOs have a Christina Bowlen, Norton Healthcare; and Matt opportunity to shift members to other MCOs Healthcare Effectiveness Data and Information Corbin, Maxim Healthcare. if something happened to one of the MCOs. Set (HEDIS) incentive. The MCOs contracts DMS has not evaluated if going from five to reference providing physician incentive LRC Staff: Ben Payne, Becky Lancaster, and three MCOs would reduce administrative costs. payments. DMS is involved in an innovations Heather Scott. DMS would continue provide oversight and grant with CMS to look at value based purchasing. Election of Committee House Co-Chair compliance to the MCOs. The first order of business was election of In response to questions from Senator MCOs Billing Practices the committee House co-chair. A motion was Carroll, Deputy Commissioner Cecil stated the Pat Smith, RMC RMM, Chief Financial made by Representative Gibbons Prunty and current MCOs’ contracts have the requirement Officer, Owner of MD Billing Services and MD seconded by Representative Gooch to nominate of a 90 percent Medical Loss Ratio (MLR). The Consulting Services, LLC, stated her companies THE KENTUCKY GENERAL ASSEMBLY 39 provide consulting and billing services for more were implemented the MCOs were not ready. be given to the committee. Ms. Dolen than 350 providers, many are in under-served Ms. Smith stated the biggest issue with MCOs recommended discussions between Ms. Smith areas of Kentucky. Since the inception of the is credentialing. The physicians have the and the individual MCOs to talk about general Medicaid MCOs her companies have experienced impression that MCOs are slow to get them issues that may be impacting her claims process. extreme difficulties in getting claims paid for the credentialed because it saves the MCOs money As of June 30, 2017, there have been 204 requests providers. She has increased her management to not pay for services provided while physicians that have been received for 3rd party review. The staff by three people to follow up with MCOs. Her wait for credentialing. external independent third party review and companies are waiting four to six months to get MCOs Billing Processes administrative hearing appeal process is a free a new provider credentialed and effective dates Rosmond Jones Dolen, Kentucky process available to every provider after they are never backdated. The extended timeframe Association of Health Plans (KAHP), presented exhaust their plan remedies. puts a financial hardship on providers. She a high level, overview of the claims process by In response to questions from Representative recommended MCOs be contractually bound the MCOs. The process is as follows; a provider Gibbons Prunty, Ms. Dolen stated that MCOs are to backdated effective dates for all providers to submits the claim via electronic data interchange allowed different criteria for prior authorizations the one year regulation that has always been a (EDI), paper or web portal, validation of Strategic because each of the MCOs has the ability to Medicaid regulation. MCOs should be required National Implementation Process (SNIP) edits, employ its own medical management tools. She to properly staff the provider enrollment team so validation of recipient data, validation of provider is not sure why MCOs are not non-profit. There applications could be processed within a 30 day data, validation of reference data, validation of is mix of memberships of profit and nonprofit timeframe. Benefit Provider Administration (BPA) rules, MCOs in Kentucky. She does not identify that as Ms. Smith continues to have problems with prior authorization (PA) if required, perform something that needs to change, it is the structure taxonomy codes and provider specialties not editing that includes checking for adherence to of the companies operating in Kentucky. being loaded correctly. The claims are denied National Correct Coding Initiative (NCCI) edits In response to questions from Representative and her companies are told it could take from and specific state requirements, perform pricing, Fleming, Ms. Dolen stated any claims paid after 30 to 60 days to correct the codes. Once codes perform an audit, recognize claim disposition as 30 days, 12 percent interest is added, after 60 are corrected MCOs are requiring her business pay, deny or hold, and finally to send the provider days it goes up to 18 percent, and anything over to send additional information as a special an Explanation of Payment (EOP). Ideally, this 90 days is 21 percent. Interest should be added project only to then have to wait another 60 to would happen in a 30 day period, however automatically when claims are paid. MCOs have 90 days for that special project to be processed Kentucky Department of Insurance (DOI), does a 95 percent adjudication requirement. by the MCOs. Ms. Smith shared several specific not require 100 percent standard on this issue. In response to questions from Representative examples of how processing and payments were DOI is aware some claims are being pulled for Jenkins, Ms. Dolen stated providers have delayed by MCOs. She has assisted in closing reviews. She is not aware of any MCOs that are different contracts with MCOs and the rate for many practices that were providing medical under corrective action with DOI relating to services provided would be negotiated between care to Medicaid patients in under-served areas. claims processing. the provider and the MCOs. A provider has The practices could not financially continue In response to questions from Senator 30 days from receiving the notice of denial to due to not being able to have their claims paid Adams, Ms. Dolen stated the timeframe for the appeal the decision. If the provider disagrees, the in a timely manner by the MCOs. She is aware claims process is 30 days. She does not have a appeal can go to the prompt pay appeals process, of many providers who refuse to see Medicaid specific number of claims the MCOs receive that which involves an independent review entity. patients due to the difficulty of working with are considered a clean claim, however millions of After that appeal, the provider can request a MCOs. Ms. Smith asked for support to enforce claims do get processed. state hearing. An individual appeal predates the stricter regulations on MCOs for the sake of In response to questions from Representative provider appeal process. She does not know how Medicaid patients who deserve to have access to Benvenuti, Ms. Dolen stated the claims flow many fraudulent claims are being discovered by medical care. process presented has elements of prepayment the appeal processes. Fraud, waste, and abuse In response to questions from Representative review, specifically when performing the audit, continue to be a problem. The MCOs have steps Fleming, Ms. Smith stated that her companies’ to make sure claim is priced accurately. The and validations to check and recheck to deter guidelines are so the accounts receivable (AR) term “clean claim” means a properly completed fraud, waste, and abuse. runs no more than 18 percent of primary claims billing instrument. The claim must be in a In response to questions from Senator and no more than 25 percent of secondary claims nationally accepted Health Insurance Portability McGarvey, Ms. Dolen stated she could send him past 90 days. She stated she has not done a cost and Accountability Act (HIPPA) format, along the number of children in the Early and Periodic analysis for time, labor, or materials spent while with standard coding guidelines with no further Screening, Diagnosis and Treatment (EPSDT) working with MCOs but she has employed three information, adjustments, or alteration in order program. Ms. Dolen responded that she would full-time people to deal with the MCOs issues. to be processed and paid by the health plan. need to speak with other KAHP members before Her companies’ profit margin has gone down 15 Statutorily prescribed interest will attach if the giving suggestions on further legislation to to 20 percent since dealing with MCOs. claim goes beyond 30 days. The rate approaches get MCOs to pay claims properly and on time. In response to a question from 21 percent if the claim is over 90 days. She would like to see the conversation be more Representative Jenkins, Ms. Smith stated all five In response to questions from Senator collaborative and cooperative. KAHP would like MCOs are doing a bad job at process claims. Meredith, Ms. Dolen recommended a to discuss what can be done to help providers In response to questions from Senator conversation between the Senator and individual who are struggling with billing issues. Alvarado, Ms. Smith stated her businesses MCOs about the efforts made to set equal and MCOs Payment Processing cover practices in Kentucky, Maine, Maryland, fair payments for rural providers as opposed to Mike Downing, President, RSVP Homecare, Ohio, West Virginia, Missouri and Hawaii. urban providers. She stated she could not speak Kentucky Medical Equipment Supplier In her experience, Kentucky is having more for the MCOs as to whether they would support Association, stated it frustrating that the coverage problems with MCOs because when MCOs a bill that would require payment information guidelines for Durable Medical Equipment and

40 2017 Interim LEGISLATIVE RECORD Supplies (DME), are quite varied. In regards to appeal processes given so DMS is more aware of report that amount to the committee before DME, his company has been asked to follow the issues. DMS wants to partner with providers funds can be expended for availability payments. Medicare guidelines, Medicaid guidelines, and and MCOs to create a better system. Information Items CMS guidelines by the MCOs, however they Adjournment Ms. Halloran reported one information are all different. He is asking for consistency There being no further business, the meeting item which was comprised of the statutorily among the MCOs on the requirements. MCOs was adjourned at 3:20 PM. required quarterly capital projects status use two sets of coverage guidelines, Interqual or reports provided by the Administrative Office Milliman. Both are based on inpatient systems Capital Projects and Bond of the Courts; the Commonwealth Office of but not as much for DME and home care. He Oversight Committee Technology, as they report separately from is asked by the MCOs to wait until the request Minutes the Finance and Administration Cabinet; the is denied, and then MCOs will tell him what is July 18, 2017 Finance and Administration Cabinet; and the required. Guidelines are supposed to be posted Call to Order and Roll Call universities that manage their own capital but they are not or vary between the MCOs. The The Capital Projects and Bond Oversight construction programs: Eastern Kentucky MCOs may authorize the equipment on the date Committee met Tuesday, July 18, 2017, at University, Morehead State University, Murray of service, however their systems are not updated 1:00 PM, in Room 131 of the Capitol Annex. State University, Northern Kentucky University, fast enough and the claim is not paid. He does Representative Phil Moffett, Chair, called the University of Kentucky, University of Louisville, not recall receiving interest payments on unpaid meeting to order, and the secretary called the and Western Kentucky University. claims. If a claim is adjudicated, it does not mean roll. Representative Moffett said that he the claim was paid correctly. Present were: would like members to consider processes MCOs Billing Procedures Members: Senator Stan Humphries, Co- for monitoring public-private partnerships as Krista Matlock, Senior Director Payer Chair; Representative Phil Moffett, Co-Chair; well as the recent appropriation allocated to Contracting, KentuckyOne Health, Kentucky Senator Rick Girdler; Representatives Larry Commonwealth Seed Capital. Representative Hospital Association, stated KentuckyOne Brown, Will Coursey, and Steven Rudy. Moffett said that it has been his experience with Health is an integrated healthcare delivery Guests: Mr. Andrew McNeill, Deputy public-private partnerships in other states that system, it operates in 17 hospitals throughout State Budget and Policy Director, Ms. Katie if they are not properly monitored, then things Kentucky and has approximately 1481 providers Smith, Director, Office of Financial Services, tend to founder for the taxpayers. including physicians, physician assistants, Cabinet for Economic Development; Ms. Natalie Project Report from the Universities nurse practitioners, and licensed medical social Brawner, Assistant Director, Real Properties; Ms. Halloran reported one equipment workers (MSW). She stated 25 percent of the Ms. Ashley Adams, Financial Analyst, purchase in excess of $200,000 for the business is Medicaid, however, approximately Kentucky Infrastructure Authority; Mr. Ryan University of Louisville, which was a computed 75 percent of administrative costs go towards Barrow, Executive Director, Office of Financial microtomography (micro-CT) scanner for pursing payments from MCOs. KentuckyOne Management; and Mr. Lewis Diaz, Bond the Speed School’s Industrial Engineering Health has several issues with MCOs such as Counsel, Dinsmore & Shohl. Department. The micro-CT scanner will be the untimely loading of rates causing untimely LRC Staff: Katherine Halloran, Committee only one on campus used to analyze micro-scale payments, non-compliance with the prompt Staff Administrator; Julia Wang, Legislative internal structures. No action was required. payment law once errors are corrected, loading Analyst; and Jenny Wells Lathrem, Committee Project Report from Finance and codes, insuring the code sets are loaded properly, Assistant. Administration Cabinet finger-pointing between MCOs and their Approval of Minutes (June 20, 2017) Mr. McNeill reported two projects in excess contractors, and inconsistent interest payments. A motion was made by Representative of $600,000 in the Laurel Creek Gorge area of Lynn Tanner, Vice President Payer Strategy Rudy to approve the minutes of the June 20, Elliott County on behalf of the Tourism, Arts & Operations, KentuckyOne Health, Kentucky 2017 meeting. The motion was seconded by and Heritage Cabinet/Department of Fish and Hospital Association, testified there are added Representative Brown and approved by voice Wildlife Resources from the Fees-In-Lieu-of steps involved when adjudicating a claim when vote. (FILO) Stream Mitigation Projects Pool. an MCOs’ outsourced entity is included in the Representative Moffett referenced $1,223,950 was appropriated for the Mart process. Interest payments to providers are correspondence from Representative Jim Wayne Whitt Fork project to preserve and restore over not automatic. Payers are making profits in thanking staff and members for the resolution 15,300 linear feet of streams and $1,358,592 healthcare, not providers. presented to him at the June 20, 2017 meeting. was appropriated for the Laurel Creek Gorge #2 In response to questions from Representative Representative Moffett welcomed Ms. (Green-Johnson tracts) project to rehabilitate Gooch, Ms. Tanner stated Medicaid payments Katherine Halloran to the committee as the new and enhance over 9,200 linear feet of stream. generally do not cover costs. Payment depends Committee Staff Administrator. Both projects are funded from a restricted fund on regulations and provider services but it may Correspondence Items (Kentucky Wetland and Stream Mitigation Fund cover 75 to 90 percent of the cost. Ms. Halloran reported one correspondence - KRS 150.255). The FILO program is governed In response to questions from Senator item from the Finance and Administration by an agreement with the U.S. Army Corps of Carroll, Deputy Commissioner Cecil stated with Cabinet regarding unexpended debt service to Engineers. No action was required. each of the new MCOs’ contracts, DMS has tried support availability payments required by the Project Report from the Cabinet for to create better practices and higher compliance Kentucky Communications Network Authority’s Economic Development standards. MCOs have received letters of public-private partnership contract. The Ms. Smith reported one project in excess concern, corrective action plans, or sanctions. biennial budget bill requires the Secretary of the of $600,000 for the Office of Entrepreneurship She requested providers make DMS aware if Finance and Administration Cabinet to certify that was approved by the Kentucky Economic there are providers outside the credentialing the amount of debt service appropriations not Development Finance Authority. This was requirement. She asked that providers use the needed to satisfy debt service obligations and for a transfer in the amount of $15,000,000 THE KENTUCKY GENERAL ASSEMBLY 41 from the High-Tech Investment Pool to the refunding bonds (Series C) will advance refund Housing Corporation Tax-Exempt Conduit Economic Development Partnership for a capital an existing taxable series and a series that was Multifamily Housing Revenue Bonds (Riverport contribution to Commonwealth Seed Capital. already advance refunded; and the tax-exempt Family Apartments Project), Series 2017A, No action was required. revenue refunding bonds (Series D). Mr. Barrow $14,500,000; and Series 2017B, $4,900,000. The Lease Report from Finance and said that market conditions will determine if all project, a component of a campus including Administration Cabinet refunding candidates included in the preliminary senior housing and a Family Scholar House, is Ms. Brawner reported one lease modification amounts for Project No. 117 are included in the comprised of 240 units in Louisville, Kentucky. for the Cabinet for Health and Family Services, upcoming transaction. The estimated net present The bond issue was previously approved and no PR-5260 - Calloway County. Two quotes for the value savings is $3.5 million for taxable revenue further action was required. renovation were received and the low quote of refunding bonds and just under $6 million for New Local School Bond Issues with $85,360 was accepted. the tax-exempt revenue refunding bonds. 100 Percent Locally-Funded Debt Service A motion to approve the lease modification Mr. Barrow next reported the Kentucky Participation was made by Representative Rudy, seconded Housing Corporation (KHC) Tax-Exempt Ms. Halloran reported one local school by Representative Brown, and approved by Conduit Multifamily Housing Revenue Bonds bond issue for Hopkins County. The issue had unanimous roll call vote. (Lincolnshire Portfolio Project), Series 2017, 100 percent local debt service support, involved Reports from the Office of Financial to be issued in an amount not to exceed no SFCC participation, and required no tax Management $13,000,000. The project is comprised of 280 increase. All disclosure information had been Ms. Adams reported four Kentucky units in Owensboro, Kentucky. filed and no action was required. Infrastructure Authority loan requests: In response to a question from Representative Updated Debt Issuance Calendar Lexington-Fayette Urban County Government Rudy regarding forgone property tax revenue, Also included in members’ folders was the - Midland/East Main Sanitary Trunk Sewer Mr. Diaz referenced the distinction between debt issuance calendar. No action was required. Replacement project/Town Branch Commons projects in which equity is contributed by for- With there being no further business, the project’s green infrastructure (Fund A -Clean profit entities, typically to receive tax credits; in meeting was adjourned at 1:20 p.m. Water State Revolving Fund (CWSRF) - which private activity bonds would be issued and $9,969,585); City of Stanton (Powell County) - projects involving 501(c)(3) non-profit entities, Legislative Research Sanitary Sewer Service Area Expansion Phase I exempt from property taxation, with no equity Commission project (Fund A - $1,095,462); City of Bowling contribution from for-profit entities; in which Subcommittee on 2018-2020 Budget Green f/b/o Bowling Green Municipal Utilities qualified 501(c)(3) bonds would be issued. The Preparation and Submission (Warren County) - Water Treatment Expansion project under consideration is the former: a Minutes of the 1st Meeting Plant project’s engineering costs (Fund C facility subject to property taxation that will be of the 2017 Interim - Governmental Agencies Program Fund - financed by tax-exempt private activity bonds. July 10, 2017 $3,800,000); and City of Stanford (Lincoln For the latter, KHC facilitates an agreement Call to Order and Roll Call County) - Water System Upgrade project (Fund between the county and the developer in which The first meeting of the Subcommittee on F - Drinking Water State Revolving Fund the developer pays taxes. Mr. Barrow reiterated 2018-2020 Budget Preparation and Submission (DWSRF) - $2,690,000). All are twenty year that this particular transaction is a traditional of the Legislative Research Commission was loans with a 3 percent interest rate for the Fund tax-exempt bond issue and that the project held on Monday, July 10, 2017, at 1:00 PM, in C loan, a 1.75 percent interest rate for the Fund should be subject to property taxation. Room 131 of the Capitol Annex. Representative A loan for Lexington-Fayette Urban County Mr. Barrow reported six new School Steven Rudy, Chair, called the meeting to order, Government, and a .25 percent interest rate for Facilities Construction Commission (SFCC) and the secretary called the roll. the Fund A and Fund F loans for Powell and school district bond issues for Anderson, Boyle, Present were: Lincoln Counties, respectively. Fleming, Hopkins, Nicholas and Pikeville Members: Representative Steven Rudy, Representative Rudy made a motion to Counties, for total SFCC annual debt service Co-Chair; Senators Ralph Alvarado, David P. roll the KIA loans into one vote. The motion of $482,656. The bond issues will refund Givens, Stan Humphries, Morgan McGarvey, was seconded by Representative Brown, and outstanding bonds, finance school construction, and Max Wise; Representatives Regina Bunch, approved by voice vote. and school improvements. There were no local Ken Fleming, Jody Richards, and James Tipton. A motion was made by Representative tax increases associated with these projects with Guests: Janice Tomes, Deputy State Budget Rudy to approve the KIA loans, seconded the exception of Boyle County, which had a tax Director, Office of State Budget Director (OSBD); by Representative Brown, and approved by increase necessary to fund the construction of and, Kevin Cardwell, Deputy State Budget unanimous roll call vote. the middle school project. Director, OSBD. Mr. Barrow reported two new bond issues. Representative Rudy made a motion to roll LRC Staff: John Scott, Jenny Bannister, and The first bond issue reported was State Property the two new bond issues and the SFCC bond Spring Emerson. and Buildings Commission (SPBC) Project No. issues into one vote. The motion was seconded Janice Tomes, Deputy State Budget Director, 117; which will be a negotiated General Fund by Representative Brown, and approved by voice OSBD, and Kevin Cardwell, Deputy State Budget supported transaction in an amount not to vote. Director, OSBD, presented an overview of the exceed $305 million. The taxable revenue bonds A motion was made by Representative Draft Budget Instructions for the 2018-2020 (Series A) will fund a $15 million economic Brown to approve the two new bond issues and Fiscal Biennium. development project authorized by the 2017 the SFCC bond issues, seconded by Senator In response to questions from Chair Rudy, General Assembly; the tax-exempt revenue Girdler, and approved by unanimous roll call Mr. Cardwell said having the agencies work bonds (Series B) will finance an additional $100 vote. with the OSBD to report contributions on each million of the capital projects authorized by the Mr. Barrow presented one follow-up report retirement system by fund source is something General Assembly since 2005; the taxable revenue for a previously approved bond issue: Kentucky that could be considered, although it would not

42 2017 Interim LEGISLATIVE RECORD be easy to pull together due to fund source splits “Mac” Jefferson. to be mandatory or an opt-out plan. Also, if new among the different retirement systems as well Guests: Larry Totten, State President, employee retirement contributions are put into as different contribution rates. Separating the Kentucky Public Retirees; Jim Carroll, Co- personal accounts, funds would no longer be a incremental change of the Actuarially Required Founder, Kentucky Government Retirees; T.J. part of the employee contributions going into Contribution (ARC) from the balance of defined Gilpin, Kentucky Association of Transportation Kentucky Retirement System (KRS) and over time calculations will also be considered. The coding Engineers/Kentucky Transportation Employee would become an increasingly large hole in the for each retirement system can be made readily Association; Joe Baer, President, Kentucky funding stream for the current retirement plans. available and added to the personnel runs. Ms. Professional Firefighters; Nicolai Jilek, Kentucky Mr. Totten stated that both PFM Consulting and Tomes added that Necessary Governmental Fraternal Order of Police; Stephanie Winkler, Milliman appear to be recommending that KRS Expenses will be removed from the baseline, as President, Kentucky Education Association; abandon its current level-percent-of-payroll well as one-time programs. Romanza Johnson, President, Kentucky Retired amortization, which is required by statute, in In response to questions from Representative Teachers Association; Dr. Tom Shelton, Executive favor of a level dollar amortization plan. While Fleming, Ms. Tomes said agency expenditures Director, Kentucky Association of School this will cost considerably more immediately, are governed by statutes and regulations, and Superintendents; Shellie Hampton, Director of the unfunded liability is reduced quicker and the agencies can perform surveys to compare Government Relations, Kentucky Association overall dollars expended over the amortization with other state governments. Agencies have of Counties; Bryanna Carroll, Government period are billions less than with the level- guidelines to follow for a strategic plan, as set Affairs Manager, Kentucky League of Cities; percent-of-payroll method. by the priorities of the administration, which David McFaddin, Eastern Kentucky University On the issue of the County Employees provides an overarching broad direction for Vice President, Office of Engagement, Regional Retirement System’s (CERS) separation from policies and how agencies move forward. Stewardship and Government Relations; Tony KRS, Mr. Totten stated that the Kentucky Public Senator Givens said that agencies coming Glisson, Western Kentucky University, Director Retirees believe a thorough third-party review before the budget review subcommittees should of Human Resources; Beth Patrick, Morehead of the administrative requirements and actuarial provide performance metrics, evaluating past State University, Chief Financial Officer and costs of such a split is needed before any action performance and indicating goals for future Vice President for Administration; and John is taken. performance. This should be provided along Gohmann, Regional President, PNC Bank and Mr. Totten stated that while tax reform may with the agency budget request. Chair of the Kentucky Chamber Pension Task be difficult, it can be constructed from several A motion was made by Senator Wise to Force. different areas, such as, raising the sales tax. direct the co-chairs to work with LRC staff to LRC Staff: Brad Gross, Jennifer Black Hans, Based on last year’s collections, each penny of finalize the 2018-2020 Budget Instructions and Bo Cracraft, and Angela Rhodes. the existing sales tax has a value of over $500 formally present them to the LRC for adoption. Approval of Minutes million. Any reform must also review the array The motion was seconded by Senator Humphries Representative Kay moved that the minutes of tax expenditures that costs the state $12 to $13 and passed by roll call vote. of the May 22, 2017, meeting be approved. billion in revenue each year. A motion was made by Senator Humphries Senator Parrett seconded the motion, and the Kentucky Government Retirees to direct LRC staff to send out Defined minutes were approved without objection. Jim Carroll, Co-Founder of the Kentucky Calculations letters to specific agencies before In his opening remarks, Representative Government Retirees (KGR) testified that KGR 2018-2020 Budget Instructions are finalized. The Linder stated that Co-Chair Bowen and he is a section 501(c)(5) labor organization and motion was seconded by Senator Alvarado and thought it necessary to give those most affected an advocacy group representing 9,700 retired passed by roll call vote. by pension reform an opportunity to express and active KRS members. In the second report, There being no further business before the their thoughts and ideas on pension reform. PFM concluded that Kentucky Employees subcommittee, the meeting was adjourned at The Public Pension Oversight Board (PPOB) Retirement System (KERS) was in good shape 1:18 PM. has investigated and discussed the many reasons a decade ago with a funding level of nearly 75 responsible for the great task the Commonwealth percent and that the huge decline in funding Public Pension Oversight is now facing. In the coming months, the was caused mostly by employer underfunding Board PPOB will work from the suggestions of the and back loading along with unfunded cost-of- Minutes stakeholders, PFM, the Governor’s Office, living adjustments (COLA). He stated that PFM June 26, 2017 public pension constituents, and the taxpayers actuaries determined that the benefit structure Call to Order and Roll Call of Kentucky to craft reform legislation that will of KRS had no impact at all in the cash crisis. The 6th meeting of the Public Pension hopefully set Kentucky’s public pensions back on KRS’ own actuary did a similar analysis for the Oversight Board was held on Monday, June 26, a course of sustainability. years 2008-2014. The primary cause has been 2017, at 1:00 PM, in Room 154 of the Capitol Kentucky Public Retirees underfunding, and benefits were completely Annex. Representative Brian Linder, Chair, Larry Totten, State President of the Kentucky irrelevant to driving up liabilities. called the meeting to order, and the secretary Public Retirees (KPR), testified that the language KGR believes there are two critical issues called the roll. contained in the first section of KRS 61.692 has relating to pensions. First is the inviolable Present were: served as the bedrock for public pension policy contract: KGR will strongly oppose any attempt Members: Senator Joe Bowen, Co-Chair; for decades and has been the foundation for the to reduce the benefits of any member of the Representative Brian Linder, Co-Chair; Senators expectations that retirees and active employees defined-benefit plans and believes the state has Christian McDaniel, Gerald A. Neal, Dennis have regarding their pensions. Mr. Totten stated a legal and moral obligation to pay the benefits Parrett, and Wil Schroder; Representatives Ken that another element that requires comment is that have been and will be earned. Second, Fleming, James Kay, Jerry T. Miller, Arnold the potential shift to 401(k) accounts becoming if a transition into a 401(k) savings plan is Simpson, and Russell Webber; J. Michael Brown, the primary retirement savings instrument. If considered: KGR has deep concerns about the John Chilton, Mike Harmon, and James M. adopted, Mr. Totten would like the participation fiscal impact that such a transition would have THE KENTUCKY GENERAL ASSEMBLY 43 to the legacy plans. If a 401(k) plan for new hires Second, legislators should switch into the state Joe Baer, President of the Kentucky is adopted, it will only reduce long-term costs employee retirement fund to show solidarity Professional Firefighters (KPFF), discussed how compared to the legacy plans, and the long-term with state employees. Third, the cigarette tax most firefighters do not participate in Social savings will be only incremental compared to the should be raised and dedicated to the pension Security, and therefore, CERS is their only hybrid plan. The hybrid plan reduces employer underfunding. Fourth, opioids that come into source of retirement and that a 401(k) would risk because future benefits in the hybrid plan the state should be taxed and directed to the not provide a reasonable monthly income. are not guaranteed and the General Assembly pension problem, then once the pension system Those who participate by working a secondary can lower the employer contribution rate at will. is relieved, directed to treatment options for job are penalized under the federal Windfall Under a 401(k) option, there would be no new those battling addiction. Fifth, state employees Elimination Provision. Mr. Baer stated that contributors putting money into the system. should be given raises that would increase since the implementation of Tier 3, many fire KGR’s position on the CERS separation is contributions into the pension obligation departments are seeing a decline in the total the concern of the administrative burden that without adding unfunded liability. Sixth, state number of applicants and recruitment and will be placed on KRS. KRS is experiencing high employee pension buyouts should be considered. retention have been a problem. turnover and is understaffed. KGR would like Also, putting cash generating public assets into The KPFF supports separation of CERS from to see a full accounting of the transition costs the pension fund should be evaluated. Lastly, KRS. CERS is the only plan under KRS that has including staffing demands. an innovative policy option to consider is to always paid their annual required contribution. Mr. Carroll stated in regards to tax reform, appropriate money to Kentucky’s infrastructure, Kentucky Fraternal Order of Police it is essential that the General Assembly enact tax which would fund local, county and state road Sherriff Burrell Perdue, President of the reform that provides more revenue to address projects to help crumbling roads, bridges, and Kentucky Fraternal Order of Police (FOP), stated pensions. highways, and then match those with pension that police officers and deputy sheriffs from all Senator McDaniel asked Mr. Totten and assets, so the pension system can earn what state over the state were in attendance because they Mr. Carroll if either of them support benefit employees and state government is paying out to were concerned about their future pensions. adjustments for current employees, retirees, and those outside of state government. Sheriff Perdue stated their major issues and future hires or raising employee contribution Kentucky Association of Transportation concerns are the protection of the inviolable rates. Mr. Totten did not think his group would Engineers/Kentucky Transportation Employee contract. Pension changes have made recruitment support reducing benefits for retirees, and Association and retention a problem in Sheriff Perdue’s small anything else would have to be discussed. Mr. T.J. Gilpin, from the Kentucky Association office of 14 people. All offices, large and small, Carroll stated that the inviolable contract means of Transportation Engineers (KATE), discussed have gone from having hundreds of applications benefits cannot be altered and sees no basis for Governor Bevin’s plan to call a special session to a handful, and some have had to alter their increasing employee contributions or cutting to address tax reform and pension reform. Mr. requirements in order to get applicants. Sheriff benefits for retirees or those under Tier 1 and Gilpin stated that his group believes that tax Perdue stated that the FOP is in favor of the Tier 2. reform is the key to making the pension systems CERS separation. Senator McDaniel asked Mr. Totten and Mr. solvent again. Kentucky brings in roughly $10 Nicolai Jilek, Louisville Metro Police Carroll if they would rather raise taxes or cut billion in revenue and provides over $12 billion Officer, said whether it is on the streets, in government. Mr. Totten responded that he was in tax incentives, tax breaks, and tax exemptions neighborhoods, courts, jails and prisons, most not a believer that revenue cannot be increased. each year. More money walks out the door each people would never consider being a police Mr. Carroll responded that he agreed with Mr. year than what is brought in as revenue. He said officer. Mr. Jilek stated there was a time that Totten and stated that there are more demands the PFM group estimates that an additional $700 being willing to put your life on the line for for services and benefits then a capacity to get million each year is needed on top of what is a stranger was taken into consideration and revenue. already being paid to the pension system. that many earned sub-professional wages and Senator McDaniel asked Mr. Carroll if the Mr. Gilpin said his members have concerns benefits with the option of retiring at 20 years. entire administrative burden were to go to CERS over rumors and speculation that their pension He further stated that the erosion of benefits, for the cost of separation would KGR oppose benefits may be reduced, suspended, or taken which are described by benign terms of Tier 1, separation. Mr. Carroll responded that the away and that he has advised them to contact Tier 2, and Tier 3, have divided men and women administrative burden that he is talking about their legislators. He discussed a 1995 Kentucky in uniform as they work shoulder to shoulder deals with the effort KRS staff will have to engage Supreme Court case, Jones v. Board of Trustees, having the exact same job and duties with very in for the next 4 years. and stated the Supreme Court of Kentucky different compensation. Senator McDaniel asked Mr. Totten and Mr. acknowledged that the General Assembly can Mr. Jilek stated that Kentucky was recently Carroll if either of their groups support legalizing take no action to reduce the benefits promised ranked in a comprehensive national study as medical marijuana or approving casino gaming to participants and that KERS members have a one of the worst states to be a police officer. The as a potential revenue source to pay for pension contractual right to the benefits promised upon study organized by Wallethub.com, a reputable obligations. Mr. Totten and Mr. Carroll said their retirement. financial website, examined all 50 states and the groups had not discussed the issue. Senator McDaniel asked if the Kentucky District of Columbia across various dimensions. Representative James Kay commented Association of Transportation Engineers/ Overall, Kentucky is in the bottom 5 when it that he had some possible solutions that could Kentucky Transportation Employee Association comes to number of officers per capita and last help simplify the investment strategy and cut supported taxing the sale medical marijuana when it comes to state and local police protection out expensive Wall Street fees and charges. and/or legalizing gaming. Mr. Gilpin responded expenses per capita. As of 2015, the most recent First, he stated that the PFM Group looked at that his groups have not discussed those matters year with comprehensive statistics, the average all systems pooling assets together to leverage and reaffirmed that his group believes that the starting salary for a Kentucky officer was just better investment deals in the market, and he issue of tax reform is needed. over $28,000 with at least 17 agencies that started believes that suggestion should be considered. Kentucky Professional Fire Fighters their officers at $20,000 or less.

44 2017 Interim LEGISLATIVE RECORD Mr. Jilek discussed that various communities Bowen, Ms. Winkler said KEA did not have an and long-term funding of the ARC to develop across the Commonwealth have seen dramatic opinion on CERS separation. and/or maintain an actuarially sound system upticks in crime, namely in homicides, gun Kentucky Retired Teachers Association while structural changes are made over time. and gang related violence, and the opioid Romanza Johnson, President, stated that Representative Linder asked for the states crisis. Kentucky needs to invest properly in Kentucky Retired Teachers Association (KRTA) average tenure of a superintendent before front line defenders and first responders, who includes over 30,000 retired educators, who retirement. In response, Mr. Shelton stated the will inevitably be the ones carrying much continue to serve Kentucky students and families. average tenure for a superintendent is less than of the physical and emotional burden of the This year alone, retired educators volunteered 4 years. Mr. Shelton explained that this average government’s efforts. more than 946,000 hours across the state by has been declining every year, and that the issue Senator McDaniel asked Mr. Baer and Mr. reading in classrooms and filling backpacks with is being studied by KASS. Perdue if their groups were in support of taxing food and supplies for low income students. Senator McDaniel stated that Mr. Shelton the sale of medical marijuana. Both groups said Most retired teachers depend on their referenced the notion of shared responsibility they had not discussed the matter. modest but stable pension to make ends meet between members and making certain that Budget Director John Chilton wanted to because they do not receive Social Security. The the ARC is funded. Senator McDaniel believes make a clarification that the State Police are average annual pension benefit for a full-time the statutory construct for TRS is actually a under a separate pension system even though teacher working nearly 30 years is $36,000. set percentage of payroll, not an ARC. The some may be members of the FOP. Ms. Johnson stated that it would be a percentage of payroll has always been met. He Representative Miller asked Mr. Jilek if mistake for policymakers to consider switching asked Mr. Shelton if he was proposing changing there was a large number of police retirements teachers from defined benefit pension plans to TRS to an ARC-based system like KRS. Mr. planned within the next three months. Mr. Jilek a 401(k) type program. It will harm Kentucky’s Shelton answered he was simply making the answered that retirements had doubled from this ability to recruit and retain qualified teachers. recommendation that the system be fully funded. time last year. Switching from one type of retirement plan to In response to Senator Bowen, Mr. Shelton Kentucky Education Association another does not close funding gaps, generates stated that KASS has not taken an official position Stephanie Winkler, President of the no new money coming into the plan, and does on capping the calculation of a superintendent’s Kentucky Education Association (KEA), noted not eliminate underfunding. pension in order to help enhance a teacher’s that KEA represents more than 44,000 active, Ms. Johnson discussed recommendations pension. student, and retired members. The KEA agrees moving forward to stay the course and fund Mr. Chilton asked whether some of the with the board and others that the state is faced the actuarially required contribution (ARC) assumptions should be changed in the TRS with challenges relating to funding status and until the Teachers’ Retirement System (TRS) is system. Mr. Shelton stated that in his own dedication of revenue to the state’s defined benefit fully funded and keep TRS as a defined benefit personal opinion as a former chair and member pension plans. These retirement benefits provide retirement plan to protect taxpayers, teachers, of the TRS, the actuarial assumptions that have education employees with post-employment and education. been used are well-tested and properly evaluated income security that is critical to the growth Kentucky Association of School and are consistently used in many other major and maintenance of a well-trained and stable Superintendents pension systems. As a member of KASS, he workforce in Kentucky’s public schools. Dr. Tom Shelton, Executive Director, believes that revising the actuarial assumptions Ms. Winkler stated that CERS is well-funded stated that the Kentucky Association of School should be part of the conversation. because the employee and employer participants Superintendents (KASS) represents the 173 Kentucky Association of Counties are legally required to make their contributions public school superintendents of Kentucky. These Shellie Hampton, Director of Government and cannot postpone or sidestep those financial school districts include, 42,000 teachers, nearly Relations, stated Kentucky Association of obligations. 8,800 other certified staff (counselors, librarians, Counties (KACO) once again joins the Kentucky KEA believes, as in 2010, when they worked and administrators), and nearly 47,000 classified League of Cities (KLC), the Kentucky School in a bi-partisan manner to achieve the shared staff members (bus drivers, custodians, food Boards Association (KSBA), and the Kentucky responsibility plan to help fund retiree health service, office staff, instructional systems, and Professional Firefighters (KPFF) in voicing insurance, that it can also be a partner in this support program staff). continued support of SB 226, championed by work to achieve solutions to pension issues. KASS recognizes and understands the Chairman Bowen and 13 other co-sponsors, Solutions are going to take good communication, problems of both the underfunded liability and during the regular session. At this time, KACO an open dialogue, paradigm shifts in thinking, the ongoing cost of the ARC and KASS wants remains very supportive of SB 226. The majority and a willingness to compromise for the good of to be a part of the solution and to participate of county employees are members of CERS the whole. in ongoing conversations. KASS implores the and 2.5 out of 10 KACO affiliates are Kentucky KEA is ready and willing to step up to the General Assembly to not negatively impact Employees Retirement System (KERS) members. plate to help make smart and sound financial current retirees or their beneficiaries and to KACO has a vested interest in both systems. Ms. decisions that will continue to attract and retain not negatively impact the benefits earned and Hampton stated it should be noted that their high-quality employees for Kentucky public expected by current employees under the legislative committee unanimously voted to school students. inviolable contract. support the inviolable contract over and above These employees are doing what is expected Some considerations for solving these issues separation. KACO wants separation of CERS, of them by dedicating themselves to their work, are new revenue via tax reform, aligning state but not at the expense of the inviolable contract. insuring the educational success to students, and law with the Internal Revenue Code, and/or The inviolable contract, as it exists with Tier 1 contributing to the future of the Commonwealth. removing tax exemptions. Further, the legislature and Tier 2 employees, has a finite number of Ms. Winkler stated that employees deserve and should consider shared responsibility between members at this time and eventually will cease have earned the benefits promised to them. members of the retirement systems, such as to exist. In response to a question from Senator recent changes made to the Missouri state plan, Kentucky League of Cities THE KENTUCKY GENERAL ASSEMBLY 45 Bryanna Carroll, Government Affairs Kentucky employees are better compensated that Representative Linder asked when a Manager, for the Kentucky League of Cities private sector employees. Mr. Chilton asked the professor takes a sabbatical do they continue to (KLC) and KLC Board member Wayne Turner, panel if given a choice, would they recommend receive benefits. Ms. Patrick answered yes. Bellevue Police Chief testified regarding their increasing salaries or increasing benefits. Ms. Representative Linder asked what recommendations. Ms. Carroll stated that she Carroll stated that KLC is not completely percentage of the faculties at all institutions are wanted to restate KLC’s unwavering support opposed to a 401(k) plan, but that such a plan on sabbatical. Mr. McFadden answered that for the separation of CERS. She stated the list of should provide an opt-out for mayors. it is a very small percentage and for those that other groups that are supportive of the measure Senator Bowen made the statement that, in are participating in TRS (except Northern KY including: KACO, KSBA, Kentucky Professional his argument for the separation of CERS, KRS University), the institutions are moving those Firefighters Association, Kentucky Association of would benefit just as much as CERS. positions to the optional 403(b) plan. The ratio Chiefs of Police, FOP, Kentucky Magistrates and University Employers is about 50/50 and declining between those who Commissioners Association, Kentucky County David McFadden, Eastern Kentucky choose to be in TRS and those who are choosing Judge Executive Association, Kentucky Sheriff’s University Vice President, Office of Engagement, the optional retirement or the 403(b) path. Association, Kentucky Association Circuit Regional Stewardship and Government Mac Jefferson asked in regards to KRS and Court Clerks, Kentucky Corners Association, Relations, stated that only the comprehensive the lack of payroll growth, has there been any Kentucky Jailors Association, Kentucky Black universities and Kentucky Community and data provided that would help quantify the scale Caucus of Local Elected Officials Association, Technical College System (KCTCS) participate of the outsourcing in the universities. Ms. Patrick Kentucky City County Management Association, in KRS. The comprehensive universities include stated that such a study had not been done, but Kentucky County Clerks Association, Kentucky Eastern Kentucky University, Western Kentucky the information could be provided. Government Finance Officers Association, University, Northern Kentucky University, In response to a question from John Kentucky Municipal Clerks Association, Morehead University, Murray University, Chilton, Mr. McFadden stated that exempt staff Kentucky Occupational License Association, KCTCS, and Kentucky State University. Mr. (bachelor’s degree or higher) must participate in Kentucky Recreation and Park Society, McFadden stated that his group represents the KERS. Those who can choose between TRS and Municipal Attorneys Association of Kentucky, only agencies that do not have a line item in the the 403(b) are about 50/50, but it continues to and the Kentucky Association of Fire Chiefs. budget bill for their pension obligation. Those decline with more people choosing the optional Ms. Carroll explained that CERS is 62 obligations are born by the institutions, which retirement plan. percent funded and the remaining KRS plans, then have to resolve those payments to KRS on a Kentucky Chamber of Commerce the State Police Retirement System (SPRS) and regular basis. John Gohmann, Regional President, PNC KERS, are 24 percent funded. CERS has 73 In 2007/2008, the gross tuition and fee Bank and Chair of the Kentucky Chamber percent of the assets and covers 63 percent of the revenue was 57 percent and the net general fund Pension Task Force, stated that the Kentucky administrative cost of KRS. Since the passage of appropriations was 43 percent. In 2015/2016, Chamber has been speaking out publicly about SB 2 in 2013, CERS has a higher funding ratio. the gross tuition and fee revenue was 71 percent the state’s public pension challenges for more In response to Senator Schroder, Ms. Carroll and the net general fund appropriation was 29 than ten years. During that time a number of stated that if CERS were to fail after separation, percent. The professional staff and faculty are reports and legislative testimony have been the contract does not change, and CERS would in the Teachers’ Retirement System (TRS), and produced highlighting the negative impact of be responsible for any liability. the non-exempt/hourly employees participate in rising benefit costs on other important areas of Senator McDaniel asked KACO and KLC if KERS. From 2008 to 2016, there was exponential state spending, especially education. Further, they were fine with any administrative costs of growth in the employer contributions for these past reports advocate changes to make the separation being completely born by the CERS both of those systems, topping at nearly $90 retirement systems more sustainable. system. Ms. Hamilton stated KACO has not million by 2016. Meanwhile, the net general With the business community paying a discussed this issue. Ms. Carroll stated KLC is fund appropriation continued to erode. The significant amount of taxes in Kentucky, the fine paying their fair portion. cumulative net impact in 2016 was nearly $145 growing pension debt and financial uncertainty Senator McDaniel asked what would prevent million. Mr. McFadden stated that 28 percent is not good for business. Not only does the the KRS Board from voting to combine the assets of their total budget is committed to pension crisis take away needed dollars from education, of all plans. Ms. Hamilton stated that would be a obligations. transportation, and economic development, huge cause for concern, and KACO would seek Tony Glisson, Western Kentucky University, it provides less of an attractive environment in legal counsel. Ms. Carroll stated she believed Director of Human Resources, discussed how the which to operate. there is nothing to prevent KRS from combining 49.47 (as of July 1, 2017) percentage of pension For the Chamber, the general view is public assets and that there already are investments that contribution along with the health contributions, retirement benefits should reflect those available are commingled. life insurance, plus miscellaneous benefits totals in the private sector as much as possible. Private John Chilton stated that it was his nearly 76 percent to 80 percent of salary, which is sector employees primarily depend on 401(k) understanding that funds are not commingled, not sustainable to the organizations. plans and Social Security and must work longer that sometimes similar investments are made to Beth Patrick, Morehead State University, than public employees before retiring. achieve a break in the investment fee and take Chief Financial Officer and Vice President for The Chamber believes the best way to advantage of economy of scale, but the funds Administration, stated that trying to set a budget develop a clear and certain path forward is have been and always will be separate. moving forward with the growth seen in this through a combination of additional financial Representative Fleming and Mr. Chilton expenditure category was nearly impossible. The investments in the retirement system and benefit separately inquired about the relative importance unpredictability of the growth layered on top of changes that are legally sustainable. of salary or benefits in the attraction of new the reductions seen in state appropriations has The Chamber also agrees with the Governor talent. Mr. Chilton cited the PFM finding that made it almost unsustainable as an institution to that additional revenue will be required to meet with the combination of both salary and benefits, be able to accommodate these benefits. the Commonwealth’s financial obligations, both

46 2017 Interim LEGISLATIVE RECORD for pensions and other important areas such as and KERS cannot afford this when it is only 13 Corporation (KAFC) education funding. Kentucky needs to focus on percent funded. The Commonwealth will have to Mr. McCloskey stated there are benefits to a tax system that improves competitive position pay more because of the years of underfunding. farmers using KAFC loan programs. There is a and provides for growth in revenue. Ms. Johnson stated that a dedicated funding fixed rate of 2.75% with no prepayment penalty. In response to questions from Senator stream is needed to provide the funding that is The application originates at the lender, and they McDaniel, Mr. Gohmann answered that the critical to paying the unfunded liabilities and will forward KAFC their portion. Chamber has no position on legalizing medical sustaining the growth of the KERS pension plan. The loan programs discussed were: marijuana at this point and gaming has not been Senator Schroder asked the groups that Agricultural Infrastucture will provide discussed for some time and not in relation testified to offer their suggestions and solutions access to below market financing for the to the pension situation. When discussing to the board. acquisition, renovation, and construction of more revenue towards pensions, it was their With no further business, the meeting agricultural structures. understanding that it was the Governor’s plan to was adjourned. The next scheduled meeting is Agricultural Processing will provide loan combine both the pension conversation with tax Monday, July 31, 2017. opportunities to individuals and companies conversations and, because of that, it is a function interested in adding value to Kentucky grown or of the new tax plan that will be proposed as to Tobacco Settlement raised agricultural commodities. what the pension resources will be. In the big Agreement Fund Oversight Beginning Farmer will assist individuals picture, the Chamber wants Kentucky to be a Committee with farming experience to establish, expand, or viable place to do business. With that goal in Minutes buy into a farming operation. The applicant must sight, the Chamber does not want to advocate August 4, 2017 develop a business plan and cannot have owned for pension reform that cripples other areas of Call to Order and Roll Call a farm longer than 10 years. the economy. The 6th meeting of the Tobacco Settlement Diversification through Entrepreneurship in Public Comment Agreement Fund Oversight Committee was held Agribusiness will assist entry level entrepreneurs Ron Richmond, American Federation on Friday, August 4, 2017, at 1:00 PM, in Room to establish or purchase into a business that of State, Municipal, and County Employees 129 of the Capitol Annex. Representative Myron provides agricultural products or services. (AFSCME), stated he represents over 6,000 Dossett, Chair, called the meeting to order, and Large/Food Animal Vet will assist members and that the organization represents the secretary called the roll. individuals to construct, expand, equip, or buy teacher assistants, diet and nutrition workers, Present were: into a veterinary practice that services farm sanitation workers, correctional officers, zoo Members: Senator C.B. Embry Jr., Co- animals. keepers, revenue clerks, auditors, and library Chair; Representative Myron Dossett, Co-Chair; In response to a question from Senator workers. Senators Stephen Meredith and Dennis Parrett; Parrett, Mr. McCloskey stated three loans have AFSCME includes current and retired Representatives Phillip Pratt and Brandon Reed. been submitted to KAFC to date. employees who took public positions because Guests: Bill McCloskey, Deputy Executive Beth Herbert Mobley provided a breakdown of the promise of retirement security through a Director, Governor’s Office of Agricultural Policy of their loan programs. Poultry and turkey pension. Many jobs are not high paying and many and Beth Herbert Mobley, Director of Loan comprise 42 percent of the total loan balance. have to work second and third jobs to support Programs, Governor’s Office of Agricultural Tobacco Settlement Scam their families. AFSCME is dedicated to public- Policy. The Attorney General, Andy Beshear, is sector employment because there is a future LRC Staff: Tanya Monsanto and Kelly warning against a scam that claims Kentuckians with a retirement that they have contributed to Ludwig, and Rachel Hartley, Committee can receive tax-free monthly payments from the throughout their careers. Assistant. Tobacco Master Settlement Agreement. These pensions ultimately ensure that they Governor’s Office of Agricultural Policy The next meeting of the Tobacco Agreement will remain productive members of society Report Oversight Committee will be September 6, 2017. after retirement. AFSCME has no control over Bill McCloskey described the Agricultural Documents distributed during the meeting are the decision of their elected officials to fund or Development Board’s approved projects available in the LRC Library. There being no divert funds earmarked for the pension system. and future projects under the program. Mr. further business, the meeting was adjourned. AFSCME looks to their elected officials to keep McCloskey highlighted programs including the promise to those who have dedicated their County Agricultural Investment Program, lives to the public. Deceased Farm Animal Removal Program, and Julie E. Johnson, Vice President, Kentucky Shared-use equipment. Association of State Employees stated that Mr. Closkey stated Trigg and Campbell she is a current state employee with over 24 County are requesting additional funds of $48, years of service in state government and she is 403 and $20, 237 respectively. Henry County representing both current and retired members. requested an additional $35,000; however, the As state employees, these members have paid funding will be used for other projects. into their pension with every paycheck and The projects discussed were: have kept their part of the contract. It is up to Taylor County Cattlemen’s Association, Inc. the legislature to keep their part of the inviolable was approved for $10,000 for its beef and dairy contract. heifer chain program. Tax reform will be critical because KERS Monreo County Extension District Board must have more revenue to avoid insolvency. TH was approved for $56,297 for a certified test Creating a 4 Tier by putting new employees in kitchen. a 401(k) plan will starve the current legacy plans, Kentucky Agricultural Finance THE KENTUCKY GENERAL ASSEMBLY 47 2018 Prefiled Bills

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

48 2017 Interim LEGISLATIVE RECORD beneficiary shall be eligible for the benefits Create a new section of KRS state or political subdivision thereof; provide provided by this Act; EMERGENCY. Chapter 277 to require two-person crews on that no taxpayer may claim a total amount (Prefiled by the sponsor(s).) trains or light engines used in connection of credit that exceeds his or her tax liability; with the movement of freight; establish civil allow the Department of Revenue to report tax BR38 - Senator John Schickel penalties for failure to have a two-person crew. credit information to the Legislative Research (5/15/2017) (Prefiled by the sponsor(s).) Commission; amend other sections to conform; EFFECTIVE August 1, 2018. AN ACT relating to Kentucky school BR64 - Senator Johnny Ray Turner (Prefiled by the sponsor(s).) bus drivers. (6/1/2017) Create a new section of KRS BR114 - Representative Chris Harris, Chapter 2 to designate and observe May 1 of AN ACT relating to vacating Representative Rocky Adkins, Representative every year as “School Bus Driver Day.” convictions for reckless homicide. Angie Hatton, Representative Rick Nelson, (Prefiled by the sponsor(s).) Amend KRS 431.073 to allow Representative Kevin Sinnette convictions for reckless homicide to be vacated (6/30/2017) BR39 - Representative Sal Santoro and expunged if the offender has first been (5/16/2017) granted a partial pardon by the Governor. AN ACT relating to the Public Service (Prefiled by the sponsor(s).) Commission. AN ACT relating to Kentucky school Create a new section of KRS bus drivers. BR91 - Representative Regina Bunch Chapter 278 to require the Public Service Create a new section of KRS (7/25/2017) Commission to reconsider previously issued Chapter 2 to designate and observe May 1 of orders that involve multistate transactions if every year as “School Bus Driver Day.” AN ACT relating to suicide prevention the orders involve a multistate transaction (Prefiled by the sponsor(s).) training. that requires approval from another state Amend KRS 156.095 to require public utility commission and the out-of-state BR40 - Representative Kenny Imes two hours of in-person suicide prevention public utility commission fails to approve the (6/27/2017) professional development training every transaction or utility plan; require the Public other school year for middle and high school Service Commission to review its previous AN ACT proposing to amend Section principals, guidance counselors, and teachers; order and determine whether the order is still 29 of the Constitution of Kentucky relating to require a newly hired staff member to receive in the public interest of Kentucky ratepayers; administrative regulations. a packet of information on suicide prevention provide that the provisions of this Act shall Propose to amend Section 29 of when the person is hired in a year training is apply retroactively to all Public Service the Constitution of Kentucky to permit the not provided; amend KRS 158.070 to delete Commission orders issued on or after July 1, General Assembly or an agency or committee requirement for two hours of self-study review 2013. it creates to review, approve, or disapprove for suicide prevention training. (Prefiled by the sponsor(s).) any administrative regulation of the executive (Prefiled by the sponsor(s).) branch during or between regular sessions of BR115 - Representative Chris Harris, the General Assembly; submit to the voters BR97 - Representative George Brown Jr Representative Rocky Adkins, Representative for approval or disapproval; supply ballot (7/12/2017) Angie Hatton, Representative Rick Nelson, language. Representative Kevin Sinnette (Prefiled by the sponsor(s).) AN ACT relating to criminal histories (6/30/2017) of job applicants. BR41 - Representative Kenny Imes Create a new section of Direct the Public Service (6/6/2017) KRS Chapter 344 to prohibit employers Commission to reexamine the electric rates from considering or requiring disclosure of charged to certain ratepayers to determine if AN ACT proposing to amend Section prior criminal history as part of the initial job they remain fair, just, and reasonable. 95 of the Constitution of Kentucky relating to application; title the Act “Ban the Box - The (Prefiled by the sponsor(s).) the election of state officers. Criminal Record Employment Discrimination Propose to amend Section 95 Act.” BR165 - Representative Jim Wayne of the Constitution of Kentucky to hold the (Prefiled by the sponsor(s).) (8/8/2017) election of the Governor, Lieutenant Governor, Treasurer, Auditor of Public Accounts, Attorney BR102 - Representative Suzanne Miles, AN ACT relating to firearms. General, Secretary of State, and Commissioner Representative Jason Nemes Create a new section of KRS Chapter of Agriculture, Labor and Statistics in even- (6/29/2017) 527 to prohibit the unlawful storage of a numbered years, every four years, beginning in firearm. 2024; provide transitional calendar; submit to AN ACT relating to the natural (Prefiled by the sponsor(s).) the voters for ratification or rejection; provide resources severance and processing tax. ballot language. Amend KRS 143A.010 to BR182 - Representative Rick Nelson (Prefiled by the sponsor(s).) amend the definition of “processing” to include (8/17/2017) the act of loading or unloading limestone that BR54 - Representative Jeffery Donohue has not otherwise been severed or treated in AN ACT relating to electric utility (6/8/2017) the Commonwealth; amend KRS 143A.035 billing. to allow a credit for substantially identical Create a new section of KRS AN ACT relating to railroads. severance or processing taxes paid to another Chapter 278 to place a cap on the amount that

THE KENTUCKY GENERAL ASSEMBLY 49 an electric utility can bill for a basic service B Teachers charge. Boats and Boating Transportation (Prefiled by the sponsor(s).) C Treasurer Children and Minors W BRs by Sponsor Circuit Clerks Wills and Estates Civil Procedure * - denotes primary sponsorship of BRs Civil Rights BR Index Senate Commendations and Recognitions Constitution, Ky. Aeronautics and Aviation Schickel, John County Clerks Aircraft, property tax, reporting requirements BR38* Courts, Circuit - BR15 Turner, Johnny Ray Crimes and Punishments Drone surveillance or use of armed drones by BR64* Criminal Procedure certain entities, prohibition - BR2 D Deaths Agriculture House E Adkins, Rocky Commissioner of, time of election, change to Economic Development even-numbered years - BR41 BR114, 115 Education, Elementary and Secondary Brown Jr, George Inherited property, agricultural valuation of Effective Dates, Delayed - BR15 BR97* Elections and Voting Bunch, Regina Emergency Medical Services Attorney General BR91* Energy Burch, Tom Time of election, change to even-numbered F years - BR41 BR14*, 15 Firearms and Weapons Donohue, Jeffery G Auditor of Public Accounts BR15, 25*, 54* General Assembly Harris, Chris Time of election, change to even-numbered Governor years - BR41 BR114*, 115* H Hatton, Angie Highways, Streets, and Bridges Boats and Boating BR114, 115 L Imes, Kenny Federally documented vessels, reporting Labor and Industry requirements for property tax - BR15 BR40*, 41* Lieutenant Governor Jenkins, Joni L. M Children and Minors BR15 Military Affairs and Civil Defense Marzian, Mary Lou Child dependency, neglect, or abuse, Minerals and Mining requirement to report - BR14 BR15 Motor Vehicles Meeks, Reginald School O Bus Driver Day, designatiing May 1 as - BR15 Occupations and Professions Miles, Suzanne BR38 P Bus Driver Day, designating May 1 as - BR39 BR102* Peace Officers and Law Enforcement Miller, Jerry T. Unlawful storage of a firearm, prohibition of Personnel and Employment - BR165 BR1* Police, City and County Nelson, Rick G. Police, State Circuit Clerks BR114, 115, 182* Prosecutors Nemes, Jason Felony expungement, reckless homicide - Public Officers and Employees BR64 BR102 Public Safety Santoro, Sal Public Utilities Civil Procedure BR39* R Scott, Attica Felony expungement, reckless homicide - Railroads BR64 BR15 Retirement and Pensions Sinnette, Kevin Retroactive Legislation BR114, 115 Civil Rights S Employment discrimination, requirement St. Onge, Diane Safety BR2* of criminal history on job applications, Secretary of State prohibition - BR97 Wayne, Jim Short Titles and Popular Names BR15*, 165* Restoration, felony expungement, reckless State Agencies homicide - BR64 T Index Headings Taxation Commendations and Recognitions Taxation, Income--Corporate School A Taxation, Income--Individual Bus Driver Day, designatiing May 1 as - Aeronautics and Aviation Taxation, Inheritance and Estate BR38 Agriculture Taxation, Property Bus Driver Day, designating May 1 as - BR39 Attorney General Taxation, Sales and Use Auditor of Public Accounts Taxation, Severance

50 2017 Interim LEGISLATIVE RECORD prohibition - BR97 Constitution, Ky. Administrative regulations, General Assembly, Energy Police, City and County final approval or disapproval of - BR40 Public Service Commission, reconsideration of Warrantless drone surveillance or use of armed Drone surveillance or use of armed drones by orders, multistate transactions - BR114 drones by certain entities, prohibition - BR2 certain entities, prohibition - BR2 Election of statewide constitutional officers, Firearms and Weapons Police, State change to even-numbered years - BR41 Drone surveillance or use of armed drones by Warrantless drone surveillance or use of armed certain entities, prohibition - BR2 drones by certain entities, prohibition - BR2 County Clerks Unlawful storage of a firearm, prohibition of Election of statewide constitutional officers, - BR165 Prosecutors change to even-numbered years - BR41 Felony expungement, reckless homicide - General Assembly BR64 Courts, Circuit Administrative regulations, final approval or Felony expungement, reckless homicide - disapproval of, constitutional amendment Public Officers and Employees BR64 - BR40 Election of statewide constitutional officers, change time to even-numbered years - BR41 Crimes and Punishments Governor Retirement, adjustment of line-of-duty death Child dependency, neglect, or abuse, Election, change time to even-numbered years benefits - BR25 requirement to report - BR14 - BR41 Felony expungement, reckless homicide - Felony expungement, reckless homicide, partial Public Safety BR64 pardons - BR64 Unlawful storage of a firearm, prohibition of Obstructing an emergency responder - BR2 - BR165 Unlawful storage of a firearm, prohibition of Highways, Streets, and Bridges Warrantless drone surveillance or use of armed - BR165 Bicycles overtaken on roadway, distance to drones by certain entities, prohibition - BR2 Warrantless drone surveillance, prohibition maintain - BR1 - BR2 Public Utilities Labor and Industry Electric Criminal Procedure Employment discrimination, requirement rates, reexamination of rate proceedings - Felony expungement, reckless homicide - of criminal history on job applications, BR115 BR64 prohibition - BR97 utilities, limit basic service charge - BR182 Unlawful storage of a firearm, prohibition of Public Service Commission, multistate - BR165 Lieutenant Governor transactions - BR114 Warrantless drone surveillance, prohibition Election, change time to even-numbered years - BR2 - BR41 Railroads Civil penalties, violation of two-person train Deaths Military Affairs and Civil Defense crew requirement - BR54 Estate tax, calculation of - BR15 Drone surveillance by certain entities, military Train crews, two-person requirement - BR54 training exemption - BR2 Economic Development Retirement and Pensions Tax credits, sunset of - BR15 Minerals and Mining Line-of-duty Natural resources severance tax, definition of death benefits, adjustment of - BR25 Education, Elementary and Secondary “processing” - BR102 death benefits, surviving spouse as default School beneficiary - BR25 Bus Driver Day, designatiing May 1 as - Motor Vehicles BR38 Bicycles overtaken on roadway, distance to Retroactive Legislation Bus Driver Day, designating May 1 as - BR39 maintain - BR1 Felony expungement, reckless homicide - Suicide prevention training, requirement for BR64 - BR91 Occupations and Professions Public Service Commission, reconsideration of School orders, retroactive to July 1, 2013 - BR114 Effective Dates, Delayed Bus Driver Day, designatiing May 1 as - Natural resources severance tax, August 1, 2018 BR38 Safety - BR102 Bus Driver Day, designating May 1 as - BR39 Bicycles overtaken on roadway, distance to maintain - BR1 Elections and Voting Peace Officers and Law Enforcement Constitutional Child dependency, neglect, or abuse, Secretary of State amendment, election of statewide requirement to report - BR14 Election, change time to even-numbered years constitutional officers - BR41 Warrantless drone surveillance or use of armed - BR41 amendment, General Assembly, approval or drones by certain entities, prohibition - BR2 disapproval of administrative regulations Short Titles and Popular Names - BR40 Personnel and Employment Ban the Box-The Criminal Record Employment Employment discrimination, requirement Discrimination Act - BR97 Emergency Medical Services of criminal history on job applications, Citizens’ Freedom from Unwarranted Obstructing an emergency responder - BR2 Surveillance Act - BR2 THE KENTUCKY GENERAL ASSEMBLY 51 maintain - BR1 State Agencies School Cabinet for Health and Family Services, child Bus Driver Day, designatiing May 1 as - dependency, neglect, or abuse, requirement to BR38 report - BR14 Bus Driver Day, designating May 1 as - BR39 Kentucky Retirement Systems, adjustment of Train crews, two-person requirement, penalties line-of-duty death benefits - BR25 for violation - BR54 Public Service Commission, reconsideration of Treasurer orders, multistate transactions - BR114 Election, change time to even-numbered years Service Commission, reexamination of - - BR41 BR115 Wills and Estates Taxation Estate tax, seperation from the federal tax - Comprehensive tax reform - BR15 BR15 Film industry credit, nonrefundable tax credit - BR15 Motor fuels tax, minimum rate, changing of - BR15 Natural resources severance tax, definition of “processing” - BR102 Tobacco taxes, rates, increase of - BR15

Taxation, Income--Corporate Domestic production activities deduction, disallowing - BR15 Tax haven, taxation of any transfer of income to - BR15 Unitary method, use for determining taxable income - BR15

Taxation, Income--Individual Earned income credit, creating - BR15 Itemized deductions, establishing maximum amount of - BR15 Rates imposed, changes to - BR15

Taxation, Inheritance and Estate Estate tax, seperation from the federal tax - BR15

Taxation, Property Real property, fixed tax rate, establishing - BR15 property tax rate, recall provision, removal of - BR15

Taxation, Sales and Use Services, imposition of tax on selected - BR15

Taxation, Severance Natural resources severance tax, credit for taxes paid to another state - BR102 resources severance tax, definition of “processing” - BR102

Teachers Suicide prevention training, requirement for - BR91

Transportation Bicycles overtaken on roadway, distance to

52 2017 Interim LEGISLATIVE RECORD Judiciary, LRC Publications from page 3 Research Reports states, including Illinois and Ohio. The reaction 446_U Program Review and Investigations Motor Fuel Taxes And came from co-chair Westerfield after DiLoreto said that Marsy’s Law, which requires a consti- Reformulated Gasoline In Kentucky 2016 tutional change, could negatively affect criminal defendants. 434 Office of Education Accountability Kentucky District Data Pro- “There is absolutely nothing in Marsy’s Law that stamps the accused as guilty,” said Wester- files School Year 2016 field, who, along with Rep. Benvenuti, attempt- ed to pass Marsy’s Law in Kentucky last session. 433 Program Review and Investigations Number, Cost, And Policies “There’s nothing in Marsy’s Law that tramples Related To Non-Merit Employees on, or even could be argued as indirectly tram- pling on, the presumption of innocence… It does 432 Program Review and Investigations Assessment Of Farmland however create rights for victims in our constitu- tion where they don’t currently exist,” he said. For Property Taxation In Kentucky (2016) Westerfield said there are courts where vic- tims aren’t valued, and he believes they should 431 Program Review and Investigations Cost And Policy Consider- be. Victims should be “afforded a small number ations For State-Mandated Local Public Notices of procedural, common sense, no-duh rights,” he said. 430 Program Review and Investigations State Inmates Housed In County Jails In Kentucky (Revised 5/24/17) 429 Office of Education Accountability Overview Of Achievement Gaps In Kentucky Schools 428 Program Review and Investigations State Funding Of The Blue- grass Water Supply Commission 427 Office of Education Accountability A Review Of The Safe Schools Program 426 Program Review and Investigations Medical Care for Kentucky Inmates In Community Medical Facilities: Feasibility And Savings Are Uncertain 425 Office of Education Accountability Special Education Update 2016 424 Office of Education Accountability Kentucky District Data Pro- files School Year 2015 423 Program Review and Investigations Kentucky’s Community Mental Health System Is Expanding And Would Benefit From Better Planning And Reporting: An Update 422 Program Review and Investigations Kentucky Child Fatality And Near Fatality External Review Panel THE KENTUCKY GENERAL ASSEMBLY 53 Scott Oldham 17 Bourbon 26 27

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

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

Bullitt Gallatin Hardin Madison Grant Pendleton

Jefferson Co. Detail Fayette Co. Detail Northern KY Detail

23 Boone KentonCampbell 11

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

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

54 2017 Interim LEGISLATIVE RECORD Scott 59 Oldham

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

Jefferson Co. Detail Fayette Co. Detail Northern KY Detail

Boone KentonCampbell

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

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

THE KENTUCKY GENERAL ASSEMBLY 55 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 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. Public Information Officer Dorsey Ridley Dennis Keene Paper subscriptions are MINORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN free upon request. Contact the Joe Cox Jimmy Higdon Kevin D. Bratcher LRC Public Information Office, Publications and Printing Officer MAJORITY WHIP MAJORITY WHIP Capitol Annex, Frankfort KY, Julian M. Carroll Wilson Stone 40601 at 502-564-8100, ext. Rebecca Mullins MINORITY WHIP MINORITY WHIP 307 to subscribe. Hanchett Editor, Typography and The Kentucky Legislative Research Commission is a 16-member committee of the majority and minority leadership of The Interim RECORD can Design the Kentucky Senate and House of Representatives. Under Chapter 7 of the Kentucky Revised Statutes, the LRC constitutes also be read online at www. the administrative office for the General Assembly. Its director serves as chief administrative officer of the Legislature when lrc.ky.gov/legislation.htm. If Public Information Staff: it isn’t in session. you have a paper subscription Stephanie Newberg and would like to end your Jeff Fossett The Commission and its staff, by law and by practice, perform numerous fact-finding and service functions for members Steve Gatewood of the Legislature, employing professional, clerical and other employees required when the General Assembly is in session subscription and read the and during the interim period between sessions. These employees, in turn, assist committees and individual legislators Interim RECORD online only, Bruce Phillips Bud Kraft in preparing legislation. Other services include conducting studies and investigations, organizing and staffing committee please contact the LRC Public meetings and public hearings, maintaining official legislative records and other reference materials, providing information Information Office at 502-564- Keith Krey Jim Hannah about the Legislature to the public, compiling and publishing administrative regulations, administering a legislative intern 8100, ext. 307. Stories and Susan Kennedy program, conducting orientation programs for new legislators, and publishing a daily index and summary of legislative photographs may be reprinted actions during sessions. without permission, although The LRC is also responsible for statute revision, publishing and distributing the Acts and Journals following sessions, credit is appreciated. and for maintaining furnishings, equipment and supplies for the Legislature. It also functions as Kentucky’s Commission on Interstate Cooperation in carrying out the program of the Council of State Governments as it relates to Kentucky. Printed with state funds

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56 2017 Interim LEGISLATIVE RECORD