2012 Interim LEGISLATIVE Volume 25, No. 6 October 2012 * Read on-line at www.lrc.ky.gov/legislation.htm* RECORD

Veteran designati on now Calendar set for available on driver’s licenses 2013 Regular by Amy Rose Karr Session LRC Public Information The 2013 Regular Session of the Kentucky A new veteran designation is now being General Assembly is scheduled to begin on Jan. printed on eligible Kentucky driver’s licenses and 8 and will last 30 legislative days. state-issued photo identifi cation, members of the As usual during an odd-numbered year, Interim Joint Committee on Transportation heard in in which sessions are half as long as in even- an Oct. 2 meeting. numbered years, the session will have two parts. The designation, created by House Bill 221 The fi rst four days of the session – Jan. 8 to Jan. during the 2012 General Assembly, is available at 11 – will focus on organizational work, such no cost to anyone who has served in any branch of as electing legislative leaders, adopting rules the armed forces. It eliminates the need for veterans of procedure and organizing committees. The to provide additional proof of military service when introduction and consideration of legislation can receiving certain benefi ts, discounts and special also begin during this time. services. The second part of the session begins on HB 221 became effective on July 12, but Transportation Co-Chair Rep. Hubert Collins, D-Wittens- Feb. 5, with fi nal adjournment scheduled for programming that would allow circuit clerks to ville, talks with Rep. Tim Couch, R-Hyden at the commit- March 26. tee’s Oct. 2 meeting. print the new licenses wasn’t completed until Sept. Legislators will not meet in session on Feb. 24, Tom Zawacki, commissioner of the state’s 18 in observance of Presidents’ Day. Department of Vehicle Regulation, told lawmakers. said. The veto recess – the period of time when “I’m pleased to tell you we are now printing The Department of Vehicle Regulation is also lawmakers commonly return to their home licenses with the veteran designation on them,” he working with local circuit clerks to provide free districts to see which bills, if any, the governor said. reprints to veterans who renewed their licenses vetoes – begins on March 12. Lawmakers will According to Zawacki, many veterans are between July 12 and Sept. 24 and were unable to return to the Capitol on March 25 and 26 for the taking advantage of the new designation. More receive the designation, Zawacki said. fi nal two days of the session. than 700 licenses with a veteran designation were About 200 reprints have already been issued, The 2013 session calendar can be viewed printed during the fi rst week of implementation, he he said. online at http://www.lrc.ky.gov/sch_vist/13RS_

by RebeccaLawmakers Hanchett learnComer of gave Larryfuel Cox, the testingexecutive director lab’sToday, the progressbacklog is eliminated and sampling LRC Public Information of the department’s Offi ce for Consumer and amounts to one or two tests in a typical week, said Environmental Protection, authority to improve lab Cox, unless there is a problem reported with a barge A transportation fuel testing lab that state operations. That resulted in changes—including load of fuel or with fuel from a major supplier. Department of Agriculture offi cials say was losing sampling fuel based only on complaints beginning An excess amount of ethanol found in fuel from a around $900,000 a year under the department’s last about two months ago, said Cox. The lab was major supplier had to be handled by the department administration is on track to save roughly $400,000 unable to randomly test samples under its original early this year, said Cox. this year, according to department offi cials. concept, he said, creating a large backlog. Committee co-chairman Rep. Tom McKee, D- State Agriculture Commissioner James Comer “The visual and chemical elements of the Cynthiana, asked agriculture offi cials if sampling told the Interim Joint Committee on Agriculture analysis moved rapidly, but octane and cetane on a complaint basis is enough, or if more needs to on Oct. 10 that savings have come from reduced testing proved to be a choke point, making the be done. Right now, Cox said, the sampling process expenses on the project which Comer said was entire lab process unable to meet its promoted is working—although he said the department would billed as a “money maker” to lawmakers by objective of performing anywhere from 40 to 50 have to be prepared to do broader-based sampling the department when it was overseen by state tests per day,” Cox told the committee. “In fact, should the number of complaints rise. Agriculture Commissioner Richie Farmer. Farmer’s only 10 tests at most could be performed on an Talks with offi cials at the University of administration began construction of the lab in ideal day because of time required for the octane fi scal year 2007. and cetane tests.” Continued on page 2

THE KENTUCKY GENERAL ASSEMBLY 1 Fuel lab, from page 1 Task force finalizing proposed Kentucky about turning fuel testing recommendations for middle over to the university are also in the Rep. Ryan works, said Cox, who said Kentucky Quarles, school sports is burdened by its $200,000 annual R-George- rent on the lab building, a $3.1 town, asks by Rebecca Hanchett million investment in underutilized LRC Public Information a question equipment, underutilized staff, and A state task force that has spent months reviewing oversight of interscholastic testing costs that outstrip annual fees at the Oct. athletics at Kentucky’s middle schools is finalizing its recommendations of what collected from fuel outlets. 10 Interim changes, if any, need to be made to middle school sports. Cox said a testing partnership Joint Com- The 2012 Task Force on Middle School Interscholastic Athletics, created with UK would be one “in which the by state lawmakers during the 2012 Regular Session with the passage of House Depart- mittee on Concurrent Resolution 155, reviewed dozens of proposed recommendations ment of Agriculture on Oct. 15 after receiving testimony that day from the Kentucky High School Agri- Today, the backlog meeting in Athletic Association. Final recommendations are expected to be considered by the task force on Nov. 26. culture is eliminated and Frankfort. continues Some of the recommendations being considered include: sampling amounts  to carry Require all student athletes to undergo a pre-participation its to one or two tests in issues,” said Cox. physical examination each year;  statutory a typical week, said Sen. Paul Hornback, R- Require all sports to adhere to the KHSAA Heat Index rules and respon- Cox, unless there is a Shelbyville, asked what the benefit regulations;  sibility of working with UK would be over Require coaches and volunteers to complete first aid/CPR problem reported with training, and complete sports safety training similar to those offered by for regu- a barge load of fuel or farming out to private industry. State lation Agriculture department official Steve KHSAA for high schools coaches;  of fuel with fuel from a major Kelly said that was discussed during Require all school to use the same return-to-play guidelines used quality, supplier. a recent meeting of a state task force at high school level after a concussion, with impact testing implemented, if with looking into the fuel lab. An attorney possible;  the uni- representing the state Finance Cabinet Creation of a middle school athletic association that would serve versity performing all fuel testing at that meeting explained, said Kelly, as an umbrella organization for non-profit groups like the Kentucky Middle before providing results to the depart- that “if there was a possibility to School Football Association and the Kentucky Middle School State Wrestling ment for administrative action.” do something like this (with the Association;  “If we can work out this university) then it’s obviously much No state invention required; government oversight is already arrangement, and once again we’re faster and much cheaper. functioning well at the local level. According to HCR 155, oversight of middle school interscholastic athletics very early in those discussions, “And then from our point of is now mostly left to administrators and staff at each school while the KHSAA but if we can work them out, we view, if we can do something with the establishes best practices for high school interscholastic sports among its member can sharply reduce the cost of fuel university and its Center for Applied schools in the areas of athlete health and safety, coach training, length of seasons, testing to the Commonwealth, we Energy Research (CAER)—they’re and more. can place fuel testing in the hands of the experts in energy right now… We The task force has been working since July to study current oversight of a dedicated and respected research feel like if we can get it in someone’s interscholastic athletics in the state’s middle schools and look at possible options institution, and we can conduct hands like that, that we’re protecting for the creation of best practices at the middle school level, as well as support testing on a scale that is appropriate the consumer to the best of our for non-profits organizations designed to improve middle school athletics, the to current Kentucky fuel quality ability,” said Kelly. resolution states. KHSAA Commissioner Julian Tackett, a member of the task force who testified during the meeting, said a new state law passed in 2012 that requires middle school coaches to complete sports safety training already required for Roll Call Votes 2013 LRC $.15 (per page) high school coaches would likely cover concussion training. The 2012 law, which began as House Bill 281, sponsored by Rep. Joni Jenkins, D-Shively, will be fully Publications Publications phased in over the next year, said Tackett. 1-10 copies .... Free (plus postage, if Tackett said unequivocally in his testimony that the state should not wait to mailed) address safety in middle school sports. Price List Copies over 10 .... ($1.00 per copy, plus “We’ve had injuries, we’ve had deaths in middle school; Most of you postage if mailed) Daily Record Pickup.....$165 remember the kid who was hit in the chest in baseball in Campbell County—an eighth grade kid—and we’ve had some very unfortunate things that we should Daily Record Mailed .....$165 (plus Administrative Regulations postage) never let happen again,” he said. Bound Volumes.... $170.00 In the area of risk management, Tackett expanded on the proposed Friday Record Mailed ....$38.50 (plus Administrative Register....$96.00 postage) Volumes and Register .... $250.00 recommendation that the “(Kentucky) General Assembly … require limited Individual Record Pickup ...$2.75 practice and games in a week period for middle school athletics,” at the suggestion Individual Record Mailed ..$2.75 (plus Acts of the General Assembly of Task Force co-chair Sen. Mike Wilson, R-Bowling Green. Tackett said some postage) (on CD...$10) other states, specifically Tennessee and Illinois which have had individuals testify Regular Sessions ... Priced after printing before the task force, have such limits. Bills Special Sessions .... Priced after printing Complete Set of Bills and Resolutions “If it’s in the best interest of the students, it can be done,” said Tackett. (Pick-up) Proposed final recommendations will be drafted by the task force co-chairs Journals and sent to the task force members in the mail, said Sen. Wilson. A vote on the $630.00 House and Senate Complete Set, House Individual Bills proposed recommendations is expected at the task force’s last meeting on Nov. Per Page ...$.05 Set, Senate Set...all priced after printing 26—just in time for possible action by the 2013 Kentucky General Assembly, Amendments (all prices subject to 6% Kentucky sales tax, which begins meeting in regular session in January. Per Page....$.05 and subject to change)

 2012 Interim LEGISLATIVE RECORD Lawmakers hear of Louisville-Lexington alliance for job growth by Rob Weber year between the state’s two largest (with) 13 percent of the nation’s auto important to brand manufacturing as a LRC Public Information cities to boost economic development manufacturing right here.” good career. It’s not just a job anymore, by working cooperatively. The effort Developing the skilled labor force but a career.” MIDWAY -- Officials from is being assisted by the Brookings needed for advanced manufacturing Sen. Jack Westwood, R-Erlanger, Louisville and Lexington say their Institute, a nonprofit public policy jobs is a key challenge, Handmaker noted that lawmakers made headway efforts to work together on a regional organization based in Washington, said. in improving job skills of Kentuckians economic development plan will DC. “I’ve heard someone say that we by passing the “Career Pathways” produce benefits for the entire state. “The goal is jobs, higher wages don’t have an unemployment problem. bill earlier this year. The legislation “It’s more than about Louisville (and) higher value jobs for the future,” We have an employment problem,” seeks to provide a career and technical and Lexington and the region. It’s Gray said. Handmaker said. “The jobs are there. curriculum in the public school really about the whole state, lifting up Much of the effort focuses on We don’t have the people to fill the system. the water table,” Lexington Mayor Jim building upon strengths and assets the jobs. … The jobs that need to be filled “Help is on the way,” Westwood Gray told lawmakers during a joint region already possesses, particularly now require higher levels of skills.” said. The Career Pathways Bill “should meeting of the General Assembly’s in areas like advanced manufacturing. Sen. Alice Forgy Kerr, R- provide opportunities, when fully Economic Development and Tourism “From the start, the data that Lexington, said that’s a refrain implemented, to get some of these Committee and the Labor and Industry we collected suggested that a focus lawmakers commonly encounter. “We students on a path that will direct them Committee at Midway College on Oct. on advanced manufacturing as a hear this everywhere we go around the into an area where they can experience 19. common industrial cluster is the state. It’s a need that should be one of high quality education by integrating Gray testified alongside Margaret region we ought to focus on,” Gray the top two or three priorities of this project learning with high skilled Handmaker, director of Louisville’s said. “Manufacturing has a multiplier state.” coursework.” innovation delivery team, about the effect with each job supporting more Part of the challenge lies in Rep. Tom McKee, D-Cynthiana, Bluegrass Economic Advancement than two others. This is a core industry changing the perception of what a good said he hopes the benefits of the Movement, an effort announced last for our region and for Kentucky job is, Handmaker said. “We know it’s Continued on page 53 Kentucky in compliance with federal anti-teen smoking mandate

by Rebecca Hanchett 40 percent of its federal block grant LRC Public Information funding, he said. Kentucky’s compliance with a Even though its Synar rate is federal law requiring states to both relatively low nationally, Cambron pass laws prohibiting the sale and told the committee that Kentucky does distribution of tobacco products to have the highest youth smoking rate in persons under age 18 and enforce those the country. laws has been among the nation’s best “We know that these youth are in recent years. getting cigarettes from somewhere. That was the word on Oct. 3 to We know that a large part of that the legislative Tobacco Settlement probably comes from social access, Agreement Fund Oversight Committee and there probably still are stores that from Steve Cambron, the state’s federal unwittingly sell to minors, probably Synar Amendment coordinator for the because the clerks are not properly Kentucky Department of Behavioral trained,” Cambron said. Health, Development and Intellectual Results from a school survey, Disabilities. The federal amendment, called the Kentucky Incentive for passed in 1992, mandates that states Prevention Survey, last administered Rep. Royce Adams, D-Dry Ridge, asks questions during the October meeting of the Tobacco Settlement Agreement Fund Oversight Committee. enact and enforce laws aimed at by the state in 2010 among students decreasing youth access to tobacco in grades 6, 8, 10 and 12 show that products. obtaining cigarettes as an underage they are getting them from a parent were conducted last year, resulting in In 2009, the state’s rate—also youth in Kentucky is not really or a grandparent, or older sibling, 120 violations. Federal inspections are known as its “Synar rate”— for difficult. The results were gleaned that is giving them to them,” he said. conducted separately by the Food and noncompliance with the mandate was from student responses to a survey Pendleton said he thinks the survey Drug Administration. 3.5 percent, the third lowest rate in question that asked “How easy would question should be, “Where and how Committee co-chair Rep. Wilson the nation, Cambron said. Since 2004, it be for you to get some cigarettes?” are you obtaining the cigarettes?” Stone, D-Scottsville, asked if the Kentucky’s noncompliance rate has “What those youth tell us is that Aside from the Synar program, young investigative aides in state been around 5.6 percent, meaning for some of those grades, it’s still quite the state Department of Alcohol inspections have someone monitoring around 5.6 percent of stores inspected easy (to obtain cigarettes),” Cambron Beverage Control (ABC) inspects for them on-site, and Crain said they do. under the amendment’s protocols sold said. tobacco sales to underage youth. For He said an investigator follows the tobacco products to underage youth, Sen. Joey Pendleton, D- those inspections, an investigative aide aide for his or her safety. he said. Hopkinsville, said that he believes of age 16 or 17 will go into a store and “I think there are at least two Noncompliance must not exceed in most cases it is an adult who is attempt to purchase tobacco products, reasons to do that,” said Stone. “... the 20 percent under the mandate, purchasing for underage youth. And according to the ABC’s Josh Crain. first is the safety of that young person according to Cambron. Exceeding that, he explained, is not always easily If he or she is successful, a citation is who’s doing a service for all of us, and a noncompliance rate of 20 percent remedied. issued against the seller. the second is to make sure the results could result in a state losing up to “We cannot resolve the fact that Crain said 3,280 state inspections we get are verifiable.”

THE KENTUCKY GENERAL ASSEMBLY 

2013 Regular Session Calendar

 2012 Interim LEGISLATIVE RECORD House of Representatives

2012 Julie Raque Adams Ted Edmonds Adam Koenig Bart Rowland 213 S. Lyndon Ln. 1257 Beattyville Road Jackson 41339 3346 Canterbury Ct. Erlanger 41018 PO Box 336 Louisville 40222 Home 606-666-4823 Home 859-578-9258 Tompkinsville 42167 Home 502-744-9264 502-564-8100 KENTUCKY C.B. Embry, Jr. Jimmie Lee Royce W. Adams PO 1215 Morgantown 42261 901 Dogwood Drive Elizabethtown 42701 580 Bannister Pike Dry Ridge 41035 Work 270-765-6222 Steven Rudy Work 270-526-6237 3430 Blueridge Dr. W. Paducah 42086 Work 859-824-3387 Home 270-737-8889 Home 270-791-1879 Home 270-744-8137 Home 859-428-1039 Bill Farmer Stan Lee PO Box 2090 Lexington 40588 Sal Santoro Rocky Adkins 3361 Squire Oak Dr. Lexington 40515 596 Walterlot Ct. Florence 41042 PO Box 688 Sandy Hook 41171 Home 859-252-2202 Work 859-272-1425 Home 859-371-8840 General Work 606-928-0407 FAX 859-259-2927 Home 859-272-8675 FAX 859-371-4060 Home 606-738-4242 FAX 859-272-1579 FAX 606-929-5213 Mary Lou Marzian 2007 Tyler Ln. Louisville 40205 John Short PO Box 1133 Hindman 41822 Joseph M. Fischer Home 502-451-5032 Assembly John A. Arnold, Jr. 126 Dixie Place Fort Thomas 41075 Work 606-785-9018 Donna Mayfield PO Box 124 Sturgis 42459 Work 513-794-6442 Work 270-333-4641 2059 Elkin Station Rd. Arnold Simpson Home 859-781-6965 Winchester 40391 112 W. 11th Street Covington 41011 Linda Belcher Home 859-745-5941 Work 859-261-6577 Senate 4804 Hickory Hollow Lane Kelly Flood Home 859-581-6521 Shepherdsville 40165 Tom McKee Home FAX 859-261-6582 121 Arcadia Park Lexington 40503 1053 Cook Road Cynthiana 41031 Walter Blevins, Jr. Home 502-957-2793 Home 859-221-3107 Dennis Parrett Home FAX 502-957-4182 Home 859-234-5879 115 Hill N Dale Morehead 40351 731 Thomas Rd. Elizabethtown 42701 FAX 859-234-3332 Kevin Sinnette Work 606-743-1200 David Floyd Home 270-765-4565 Johnny Bell 102 Maywood Ave. PO Box 1358 Ashland 41105 Home 606-743-1212 Reginald Meeks Home 606-324-5711 FAX 606-743-1214 108 North Green St. Glasgow 42141 Bardstown 40004 PO Box 757 Louisville 40201 Joey Pendleton Home 502-350-0986 Home FAX 606-329-1430 905 Hurst Dr. Hopkinsville 42240 Work 270-651-7005 Work 502-741-7464 Joe Bowen Home 270-885-1639 Home 270-590-0110 2031 Fieldcrest Drive Danny Ford Rita Smart FAX 270-885-0640 Kevin D. Bratcher 419 W. Main Street Richmond 40475 Owensboro 42301 PO Box 1245 Mt. Vernon 40456 Michael Meredith 10215 Landwood Drive PO Box 292 Brownsville 42210 Home 859-623-7876 Home 270-685-1859 Work 606-678-0051 Jerry P. Rhoads Louisville 40291 Home 606-256-4446 Work 270-597-6049 Home 502-231-3311 John Will Stacy 9 East Center Street Jim Glenn Tom Buford PO Box 135 West Liberty 41472 409 W. Maple Nicholasville 40356 Madisonville 42431 PO Box 21562 Owensboro 42304 Charles Miller Home/FAX 606-743-1516 Home/FAX 859-885-0606 Home 270-825-2949 Regina Petrey Bunch Home 270-686-8760 3608 Gateview Circle Louisville 40272 1051 Old Corbin Pike Rd. Home 502-937-7788 Dorsey Ridley Williamsburg 40769 Jim Gooch Jr. Fitz Steele Jared Carpenter Home 606-549-3439 714 North Broadway B2 138 Legacy Drive 4030 Hidden Creek 176 Woodland Ave. Hazard 41701 Henderson 42420 Providence 42450 Terry Mills Home/FAX 606-439-0556 Berea 40403 695 McElroy Pike Lebanon 40033 Home 270-826-5402 Work 270-635-7855 Home 859-623-7199 Tom Burch Home 270-692-2757 Work 270-869-0505 4012 Lambert Ave. Home 270-667-7327 Jim Stewart III FAX 270-667-5111 Julian M. Carroll Work FAX 270-869-0340 Louisville 40218 Brad Montell 545 KY 223 Flat Lick 40935 Room 229 Capitol Annex Home 502-454-4002 Derrick Graham 543 Main Street Shelbyville 40065 Home 606-542-5210 Frankfort 40601 Dwight D. Butler Room 329F Capitol Annex Frankfort 40601 Work 502-633-7017 502-564-8100 John Schickel Home 502-633-7533 2147 Natches Trace Union 41091 PO Box 9 Harned 40144 Home 502-223-1769 Wilson Stone 502-564-8100 Home 270-756-0100 Jeff Greer Tim Moore 1481 Jefferson School Road Perry B. Clark PO Box 1007 Brandenburg 40108 417 Bates Rd. Elizabethtown 42701 Scottsville 42164 5716 New Cut Road Louisville 40214 Home 270-422-5100 Home 270-769-5878 Home 270-622-5054 Home 502-366-1247 Dan “Malano” Seum John “Bam” Carney Home FAX 270-422-5100 1107 Holly Ave. Fairdale 40118 341 Pembroke Way Home 502-749-2859 Lonnie Napier Greg Stumbo Julie Denton Campbellsville 42718 Sara Beth Gregory 302 Danville St., Lancaster 40444 Box 1473 108 Kassidy Drive 1708 Golden Leaf Way Home 270-465-5400 PO Box 1835 Monticello 42633 Work 859-792-2535 Prestonsburg 41653 Louisville 40245 Mike Cherry Home 606-348-9767 Home 859-792-4860 Home 606-886-9953 Home 502-489-9058 Brandon Smith 803 S. Jefferson Princeton 42445 Home FAX 606-348-3459 P.O. Box 846 Hazard 41702 Home 270-365-7801 Rick G. Nelson Home 606-436-4526 117 Gumwood Rd. Middlesboro 40965 Tommy Thompson Carroll Gibson Keith Hall PO Box 458 Owensboro 42302 Home FAX 606-436-4526 213 E. Fourth Frankfort 40601 Home/FAX 606-248-8828 PO Box 506 Leitchfield 42755 Larry Clark Home 270-926-1740 Home 270-230-5866 5913 Whispering Hills Blvd. 502-564-8100 Kathy W. Stein Michael J. Nemes FAX 270-685-3242 Louisville 40219 Mike Harmon 5318 Westhall Ave. Louisville 40214 John Tilley David Givens 364 Transylvania Park Lexington 40508 Home 502-968-3546 PO Box 12 Greensburg 42743 Work 859-225-4269 633 N. 3rd St. Danville 40422 Home 502-807-2423 126 Moreland Drive 502-564-8100 Home 859-252-1500 Home 859-238-7792 Hopkinsville 42240 Hubert Collins David Osborne Home 270-881-4717 72 Collins Dr. Wittensville 41274 Richard Henderson PO Box 8 Prospect 40059 Denise Harper Angel Katie Stine Home 606-297-3152 2521 Ransdell Ave. Louisville 40204 21 Fairway Drive Southgate 41071 3483 Grassy Lick Rd. Mt. Sterling 40323 Work 502-645-2186 Tommy Turner Home 502-452-9130 Home 859-781-5311 Leslie Combs Home 859-585-0886 Home 502-228-3201 175 Clifty Grove Church Road 245 E. Cedar Drive Pikeville 41501 Sannie Overly Somerset 42501 Ernie Harris Robert Stivers II Home 606-444-6672 Melvin B. Henley 340 Main Street Paris 40361 Home 606-274-5175 PO Box 1073 Crestwood 40014 207 Main Street Manchester 40962 1305 S. 16th Street Murray 42071 Home 859-987-9879 Ben Waide Home 502-241-8307 Work 606-598-2322 Home 270-753-3855 100 YMCA Dr., Ste. 5 Tim Couch Darryl T. Owens Madisonville 42431 Home 606-598-8575 Jeff Hoover Jimmy Higdon FAX 606-598-2357 PO Box 710 Hyden 41749 1018 S. 4th St., Ste. 100 Louisville 40203 Work 270-824-9227 Home/FAX 606-672-8998 PO Box 985 Jamestown 42629 Home 502-584-6341 Work FAX 270-824-9206 344 N. Spalding Work 270-343-5588 Lebanon 40033 Damon Thayer Home 270-343-2264 Home 270-692-6945 102 Grayson Way Georgetown 40324 Will Coursey Ruth Ann Palumbo David Watkins 10 Deepwood Dr. Lexington 40505 5600 Timberlane Dr. Henderson 42420 Home 859-621-6956 285 Oak Level Elva Road Dennis Horlander Home 859-299-2597 Home 270-826-0952 FAX 502-868-6086 Symsonia 42082 Paul Hornback 1806 Farnsley Rd., Ste. 6 Shively 40216 FAX 270-826-3338 6102 Cropper Rd. Shelbyville 40065 Home 270-851-4433 Work 502-447-9000 502-564-8100 Work 270-252-1278 Tanya Pullin Johnny Ray Turner Home 502-447-2498 1026 Johnson Lane South Shore 41175 Jim Wayne 849 Crestwood Dr. Prestonsburg 41653 Jesse Crenshaw Work 606-932-2505 1280 Royal Ave. Louisville 40204 Tom Jensen Home 606-889-6568 Brent Housman Work 502-451-8262 303 S. Main Street London 40741 121 Constitution Lexington 40507 Work 859-259-1402 465 Ashcreek Road Paducah 42001 Ryan Quarles Home 606-878-8845 Robin L. Webb PO Box 1001 Georgetown 40324 Home 859-252-6967 Home 270-366-6611 404 W. Main Street Grayson 41143 Home/FAX 270-442-6394 502-564-8100 Alecia Webb-Edgington Ray S. Jones II Home 606-474-5380 FAX 859-259-1441 1650 Chestnut Ct. Fort Wright 41011 PO Drawer 3850 Pikeville 41502 Marie Rader Home 859-426-7322 Ron Crimm Wade Hurt PO Box 323 McKee 40447 Work 606-432-5777 Jack Westwood PO Box 43244 Louisville 40253 4507 Bellevue Ave. Louisville 40215 Work 606-287-3300 Susan Westrom FAX 606-432-5154 209 Graves Ave. Erlanger 41018 Work 502-400-3838 Home 502-424-1544 Home 606-287-7303 PO Box 22778 Lexington 40522-2778 Home 859-344-6154 Home 502-245-8905 FAX 606-287-3300 Work 859-266-7581 Alice Forgy Kerr Joni L. Jenkins 3274 Gondola Dr. Lexington 40513 David L. Williams Robert R. Damron 2010 O’Brien Ct. Shively 40216 231 Fairway West Nicholasville 40356 Rick Rand Addia Wuchner Home 859-223-3274 PO Box 666 Home 502-447-4324 PO Box 273 Bedford 40006 PO Box 911 Burlington 41005 Home 859-887-1744 Burkesville 42717 Work 502-255-3286 Work 859-525-6698 Bob Leeper Work 270-864-5636 Dennis Keene Home 502-255-3392 229 South Friendship Paducah 42003 Home 270-433-7777 Jim DeCesare 1040 Johns Hill Road Wilder 41076 FAX 502-255-9911 PO Box 122 Rockfield 42274 Brent Yonts Work 270-554-9637 Home 859-441-5894 232 Norman Circle Greenville 42345 Home 270-792-5779 Home 270-554-2771 Mike Wilson Work 270-338-0816 Home FAX 888-275-1182 Jody Richards FAX 270-554-5337 635 Crossings Court Thomas Kerr 817 Culpeper St. Bowling Green 42103 Home 270-338-6790 Work 270-792-5779 Bowling Green 42104 5415 Old Taylor Mill Rd. Taylor Mill 41015 Home 270-842-6731 FAX 270-338-1639 Vernie McGaha 502-564-8100 Work 859-431-2222 Jill York Mike Denham Home 859-356-1344 4787 W. Hwy. 76 306 Old Hill City Road Maysville 41056 Steve Riggs PO Box 591 Grayson 41143 FAX 859-431-3463 PO Box 24586 Louisville 40224-0586 Russell Springs 42642 Ken Winters Home 606-759-5167 Work 606-474-7263 502-564-8100 Home 270-866-3068 1500 Glendale Road Murray 42071 Work FAX 606-474-7638 FAX 502-564-6543 Home 270-759-5751 Bob M. DeWeese Kim King 6206 Glenhill Rd. Louisville 40222 250 Bright Leaf Drive Harrodsburg 40330 Tom Riner Gerald A. Neal Home 502-426-5565 Home 859-734-2173 1143 E. Broadway Louisville 40204 Suite 2150 Meidinger Twr Home 502-584-3639 462 S. 4th Street Carl Rollins II Louisville 40202 Myron Dossett PO Box 424 Midway 40347 * Members of the 491 E. Nashville St. Pembroke 42266 Martha Jane King Work 502-584-8500 Home 859-846-4407 Kentucky General Assembly Home 270-475-9503 633 Little Cliff Estates Lewisburg 42256 Home 502-776-1222 Work 502-696-7474 may also be contacted by calling Home 270-657-2707 502-564-8100. FAX 502-584-1119 * Members of the FAX 270-657-2755 Kentucky General Assembly R.J. Palmer II may also be contacted by calling 1391 McClure Road Winchester 40391 502-564-8100. Home 859-737-2945

THE KENTUCKY GENERAL ASSEMBLY  Committee Meetings Interim Joint Committee animal science, biosystems, and equine. of farmers using pasture land to grow corn on Agriculture The most employable degree offered and soybeans due to high prices. Minutes of the 4th Meeting is agriculture economic development. Update on the Kentucky Livestock of the 2012 Interim Equine and animal science are the most Care Standards Commission September 14, 2012 popular programs for freshman. Seventy Dr. Robert Stout, Kentucky State Call to Order and Roll Call percent of the freshman class are women. Veterinarian, stated that the mission of The 4th meeting of the Interim Joint In response to Representative the Commission is to establish, maintain, Index Committee on Agriculture was held on McKee, Mr. Grabau stated that the College or revise standards governing the care Friday, September 14, 2012, at 10:00 of Agriculture is at its limit and cannot and well-being of on-farm livestock and A AM, at the E.S. Good Barn, University of accept any students. poultry. The commission has 16 members Administrative Regulation Review Kentucky, Lexington, Kentucky. Senator In response to Senator Givens, Mr. who have met ten times since October, Subcommittee, 32, 33 David Givens, Chair, called the meeting Grabau stated that not many students are 2010. The next meeting, scheduled for Agriculture, 6, 7 involved in production agriculture. September 28, will include a review of Appropriations and Revenue, 8 to order, and the secretary called the roll. Present were: Nancy Cox, Associate Dean for current draft of the standards and current B Members: Senator David Givens, Research, Director of Ag. Experiment scientific information. Banking and Insurance, 9 Co-Chair; Representative Tom McKee, Station, stated that the Research Department In response to Senator Givens, Dr. Co-Chair; Senators Joe Bowen, Paul offers the following programs: economics, Stout said that a draft of the new proposed C pasture management, environmental standards is available to the public through Capital Planning Advisory Board, 28 Hornback, Vernie McGaha, Dennis Parrett, Capital Projects and Bond Oversight, and Damon Thayer; Representatives Royce compliance, animal composition, and an open records request or can be found 30 W. Adams, Will Coursey, Jim DeCesare, equine. The department is conducting an on the KDA web site. The most current Mike Denham, Myron Dossett, Sara Beth equine study counting all horses in the document is dated July 19. E Gregory, Richard Henderson, Kim King, state. The equine reproduction team (20 Representative McKee stated that Economic Development and Tour- students) is in the process of working the no changes have been made to the animal ism, 9 Martha Jane King, Brad Montell, Ryan Education, 10, 13, 14 Quarles, Tom Riner, Bart Rowland, Steven Keeneland sales. cruelty statute. Rudy, Wilson Stone, and Tommy Turner. The UK President, Dr. Eli Capilouto, Informational Item G Guests: President Dr. Eli Capilouto, stated that he had toured extension offices No action was taken on 302 KAR Government Contract Review Com- around Kentucky and fully supported the 16:091. mittee, 35 University of Kentucky; Scott Smith, Dean, UK College of Agriculture; Extension Service. Student enrollment Meeting adjourned. H Drew Graham, Senior Assistant Dean, at the university is at its largest. UK is Health and Welfare, 16, 19 Director of Advancement, UK College of working hard to keep National Merit Interim Joint Committee Agriculture; Nancy Cox, Associate Dean Scholars in Kentucky and has expanded on Agriculture J the honors program. It is important Judiciary, 19, 21 for Research, Director of Ag. Experiment Subcommittee on Horse Farming Station, UK College of Agriculture; Larry that students graduate with a quality Minutes of the 1st Meeting L Grabau, Associate Dean for Instruction, educational degree. of the 2012 Interim Labor and Industry, 22 UK College of Agriculture; Kenny Drought Impact and Agriculture October 10, 2012 Licensing and Occupations, 23 Burdine, Extension/Livestock and Forage Economic and Tobacco Outlook Call to Order and Roll Call Specialist, UK College of Agriculture; Will Kenny Burdine, Extension/Livestock The 1st meeting of the Subcommittee M and Forage Specialist, stated that the lack Middle School Interscholastic Athlet- Snell, Professor, Agriculture Economics, on Horse Farming of the Interim Joint ics, Task Force on: 50 UK College of Agriculture; and Dr. Robert of rain and high heat had impacted grain Committee on Agriculture was held on N Stout, Kentucky State Veterinarian. and high quality hay prices, which in turn Wednesday, October 10, 2012, at 10:00 Natural Resources and Environment, LRC Staff: Lowell Atchley, Kelly has affected the equine, dairy, and beef AM, in Room 131 of the Capitol Annex. 24, 25 Ludwig, Stefan Kasacavage, and Susan industries. Beef prices are still strong. Senator Damon Thayer, Chair, called the Alternative feed sources are much more P Spoonamore, Committee Assistant. meeting to order, and the secretary called 2013 Prefiled Bills, 54 The August 23, 2012 minutes were expensive than hay. the roll. Program Review and Investigations, approved, without objection, by voice vote In response to Senator Bowen, Mr. Present were: 37, 40 upon motion made by Senator Bowen and Burdine said that the aging population of Members: Senator Damon Thayer, Public Pensions, Task Force on Ken- farmers and high feed prices has caused tucky: 45 second by Representative Stone. Co-Chair; Representative Susan Westrom, UK College of Agriculture many to sell dairy. Some new smaller Co-Chair; Senators David Givens, Dennis S Overview dairies are starting. Parrett, Joey Pendleton, and Robin L. 2012 SS HB1 Implementation and Scott Smith, Dean, UK College Will Snell, Professor, Agriculture Webb; Representatives Royce W. Adams, Oversight Committee, 42 of Agriculture, said the UK Extension Economics, stated that the Kentucky Sara Beth Gregory, Tom McKee, Michael State Government, 26, 27 Service is ranked fifth in the country. The agriculture economy has done fairly well. Meredith, David Osborne, Sannie Overly, Student Access to Technology Task Those areas with access to water have Force, 47, 48 Extension program has agent vacancies Tom Riner, and Wilson Stone. in some areas of the state but is working good tobacco crops. Tobacco contracts are Guests: John Ward, Executive T closely with local extension boards to up 5 cents, and the sale of dark tobacco and Director, Marc Guilfoil, Deputy Executive Tobacco Settlement Agreement Fund continue service. The Extension Service burley has remained fairly steady, bringing Director, Greg Lamb, Supervisor of Pari- Oversight Committee, 53 is constantly seeking ways to become in $350 million dollars. The overall Mutuel Wagering, Jamie Eads, Director, agriculture economy shows $5 billion in U a valuable part of the community by Breeders’ Incentive Programs, Dr. Unified Juvenile Code, Task Force keeping up with new demands, such as cash receipts. Kentucky’s net farm income Mary Scollay, Equine Medical Director, on: 49 economic development. The UK College will not reach the $1 billion mark due to Kentucky Racing Commission; Martha of Agriculture strongly supports the higher feeds costs. In the very near future, Murdock, Board Member, and Lance V extension systems. it will be hard for farmers to replace the Bowman, Kentucky Arabian and Half Veterans, Military Affairs, and Public tobacco buyout direct payments, which Protection, 28 Larry Grabau, Associate Dean for Arabian Breeders Alliance; and others. Instruction, UK College of Agriculture, will be ending soon. LRC Staff: Lowell Atchley and said that enrollment for the College of In response to Senator Givens Marlene Rutherford. Agriculture has increased by 21 percent. and Senator Hornback, Mr. Snell said Kentucky Horse Racing The programs include human nutrition, that there would be marginal impact on Commission agriculture in the next ten years as a result

 2012 Interim LEGISLATIVE RECORD Representatives of the Kentucky Westrom asked if the KHRC could could result in a positive test. Horsemen seat division, although the breeding has Horse Racing Commission (KHRC), provide a package of Ms. Eads’s horse need to exercise caution when they do not declined. Mr. Bowman said that the introduced by Marc Guilfoil, provided a industry information to help educate new have certainty of the content. Arabian is one of the few breeds accepted review of their respective divisions. Greg legislators elected in November of the Mr. Ward stated that with the into the warm blood registry. Lamb provided a brief overview of pari- information. initiatives by the legislature and KHRC In response to a question by mutuel wagering including the importance Co-Chair Thayer applauded the over the last few years in the selling of Representative Stone, Ms. Murdock said of the regulatory pari-mutuel oversight, a KHRC for the administrative regulation horses and the purity and trustworthiness the American Endurance Ride Conference function new to the Racing Commission. that allows Kentucky breeds raced of the “betting signal,” the industry has governs all approved endurance racing. Jamie Eads provided an update on the overseas to participate in the Thoroughbred had to change to be successful. As a Distance divisions include 25, 50, 75, Breeders’ Incentive Fund Program, which Breeders’ Incentive Fund. Kentucky is an result of changes, state officials are more and 100 miles, which is the maximum includes the thoroughbred, standardbred, export state in the thoroughbred business, aware of what is going on in the betting distance. Endurance racing is very popular and non-race breeds. Dr. Mary Scollay, the and continues to be the market share community than most other racing states. in South America. KHRC’s Equine Medical Director, talked leader in the country in terms of mares The next level to be addressed is security. In response to a question from Co- about the health and safety of horses and bred. Kentucky is holding its own in the The goal is for Kentucky to have a type of chair Thayer regarding the number of the programs developed to enhance those face of competition, and competitor-states horse racing that can be sold around the Arabian horses in Kentucky, Mr. Bowman initiatives. John Ward, Executive Director, are facing their own challenges. world as the premier product. indicated it is difficult to compile this discussed the current status of horse racing Dr. Scollay said that since Kentucky Co-Chair Thayer noted that treatment statistic because of the way the horses in Kentucky and elsewhere. hosts the most prestigious horse race in with Lasix will continue to be an issue, and are registered whether by the Kentucky Responding to Co-Chair Thayer the world in May (the Kentucky Derby), that the welfare and integrity issue will address or an address in another state. At regarding advance deposit wagering the public expects that races are conducted continue to define equine sports, racing, this time, there are over 8,000 Arabians. (ADW) reporting and transparency, Mr. with integrity, that the competition is fair, and showing. Also, $13,500 was the maximum received Lamb indicated that the third quarter that the outcome of races is not impacted In response to a question from from the Breeder’s Incentive Fund was complete and not all numbers were by illegal performance enhancing Representative Riner concerning the use of Program for the breed, and the total paid available, but in the second quarter of medications, that only healthy horses human medications on horses, Dr. Scollay out last year was just over $48,500. ADWs, Kentucky residents wagered compete, that races will be run safely, and said that some medications are okay when The meeting adjourned at about $47,663,022. Bettors are identified by that horses will be protected from injury. a horse is ill leading up to a race, but in 11:45 a.m. ZIP code when accounts are established Dr. Scollay described the race the interval closer to a race, the drugs for each ADW to determine whether the horse testing process in Kentucky, which are not permitted. There are medication Interim Joint Committee jurisdiction allows ADW. The type of involves random sampling and targeted guidelines. Some over-the-counter human on Agriculture betting is not legal in every state. KHRC sampling based on horses’ standings and pain medications are not approved for use Subcommittee on Rural Issues is working toward a new set of guidelines performances in races. KHRC utilizes HFL in horses. Amphetamines are stimulants Minutes of the 1st Meeting that would require ADW sites to track the Sport Science Laboratory in Lexington to and are strictly prohibited. of the 2012 Interim amounts wagered by Kentucky residents analyze samples. In closing remarks, Mr. Ward, noted October 10, 2012 through the system, plus other data. Representative Osborne encouraged that 2014 will be next year that Kentucky Call to Order and Roll Call Co-Chair Thayer asked when the subcommittee members to tour the can host the Breeder’s Cup in Louisville. The 1st meeting of the Subcommittee subcommittee and the Committee on operation of the HFL Sport Science The Commission will help pursue that on Rural Issues of the Interim Joint Licensing and Occupations could expect to facility, which provides drug surveillance, series of thoroughbred races. Committee on Agriculture was held on receive a summary of ADW data. Money doping control, and research for human Kentucky Arabian Horse and Half Wednesday, October 10, 2012, at 10:00 wagered at Kentucky races has a pari- and equine sports. Arabian Breeders Alliance AM, in Room 129 of the Capitol Annex. mutuel tax applied, with a portion of that In response to comments and Martha Murdock and Lance Bowman, Senator Vernie McGaha, Chair, called the tax benefiting the Kentucky Thoroughbred questions by Senators Pendleton and representatives of the Kentucky Arabian meeting to order, and the secretary called Development Fund (KTDF). The ADW Parrett, Dr. Scollay described how horses Horse and Half Arabian Breeders Alliance the roll. wager does not have a tax applied, and are sampled. All winners are sampled. A (KAHABA) discussed the Arabian breed Present were: therefore no money goes into the KTDF. A wild card sample comes from a steward association, the history and heritage of Members: Senator Vernie McGaha, breakdown of the numbers would provide special, which may be in response to the breed, uses of the horse, including Co-Chair; Representative Mike Denham, a more complete picture of how much a 1 particular information, a horse may run showing, endurance racing, and pleasure Co-Chair; Senators Joe Bowen, David or 1 1/2 percent surcharge could generate, better or worse than in past races, or riding, and characteristics of the breed; and Givens, Paul Hornback, Jim DeCesare, with the proceeds to be dedicated to the a trainer may have an unusually high talked about the Kentucky Quarter Horse, C.B. Embry Jr., Kim King, Tom McKee, KTDF. Co-Chair Westrom indicated it winning percentage. Dr. Scollay said Appaloosa and Arabian Development Terry Mills, Bart Rowland, and Tommy would be interesting to see how other stewards are required to select a minimum Fund, which was established about four Turner. states are benefitting from ADW. of one horse for a steward special. years ago through the Kentucky Breeders’ Guests: Brian Kiser and Dana Case, According to Ms. Eads, the Dr. Scollay explained Lasix has not Incentive Fund Program to promote, Commonwealth Office of Broadband thoroughbred market is in a flat year, with been outlawed. Rather, the Commission enhance, improve, and encourage Outreach and Development; Dr. Greg the number of mares to be bred estimated has withdrawn the use of adjunct bleeder breeding in Kentucky by providing Halich and Dr. Cory Walters, University at 15,000, compared to 15,918 last medications or medications that have supplemental purses for designated races. of Kentucky, Department of Agricultural year. Kentucky continues to lead North no substantial or scientific evidence to Money is allotted to breeders for showing, Economics. America in breeding statistics, according support their use. endurance, and racing. A total of 57 horses LRC Staff: Tanya Monsanto, Stefan to Ms. Eads. In addition, she discussed In response to a question by have been registered this year, an increase Kasacavage, Kelly Ludwig, and Susan the Standardbred Incentive Fund, the Representative Westrom, Dr. Scollay from 49 last year. A total of 52 horses Spoonamore. Kentucky Sire Stakes, and the Non-race said the use of nutraceuticals or are expected to earn points by the end of Broadband service to rural Incentive Fund, which had 11 participants supplements is evident in most equine this year, according to the speaker. Mr. Kentucky this year. disciplines, especially athletic horses, Bowman indicated that over 70 percent Senator McGaha welcomed Mr. Ms. Eads commented to Co-Chair and is problematic in the racing industry of the horses are sired by stallions in Brian Kiser, Executive Director, and Thayer that over $76 million has been because, since they are not regulated by Kentucky. Ms. Dana Case, Program Administrator, distributed back to successful breeders the U.S. Food and Drug Administration, In response to a question from Commonwealth Broadband Outreach and of winning thoroughbreds, and over $100 the content of the products is unknown Senator Webb, Ms. Murdock indicated that Development (CBOD). Mr. Kiser stated million combined has been distributed to and uncertified. There are risks for the KAHABA sets the rules and standards that all states struggle with the access, those involved with all three breeds. trainers administering them to race horses and is the umbrella organization for the availability, and awareness of broadband. Representative Overly asked if the being readied for races. The agency has breed in Kentucky. Adoption is the area in which most states Commission could provide the statistics attempted to convey that information to In response to a question by struggle. About 91.5 percent of Kentucky on breeders Ms. Eads referenced in her the trainers because of the quality control. Representative Osborne, Ms. Murdock households have access to broadband, presentation so that all legislators could Herbal supplements may vary from packet indicated that the national show horse and 58 percent have chosen to adopt it. be informed about the importance of the to packet in the percentage of active registry still exists and has a strong youth Kentucky needs affordable broadband industry to Kentucky. Representative ingredients, and the active ingredient program and program for the saddle- throughout the state as there are 400,000

THE KENTUCKY GENERAL ASSEMBLY  citizens without access. coverage levels depend on options trades, two choices of coverage and protection approve the minutes from the previous Mr. Kiser testified that Kentuckians and it is less flexible than the CME option levels. meeting as written. The motion was have options, but in most cases those as far as selling cattle early. The inability Dr. Walters explained premium seconded by Senator Leeper, and the options are inadequate. For example, to sell a policy back, and the fact that subsidies. Subsidy is applied as a motion carried by voice vote. phone line broadband is too slow, and LRP can only be exercised at expiration, percentage of premiums under most Northern Kentucky Convention 3G cell service is expensive, restrictive, is problematic. There is a lack of program policies. Premium is a functionality of Center and has poor signal quality. Satellite information available to most farmers and pricing. Subsidy money goes up or down Ms. Gretchen Landrum, Executive broadband is expensive and restrictive. most farmers are not aware the program based upon pricing. Director, Northern Kentucky Convention Rural areas struggle with high cost and exists. Dr. Walters explained the role that Center, discussed future convention expensive installation costs, and families Dr. Halich reported that most the Department of Agricultural Economics center expansion. The expansion proposal of low income and poverty levels cannot livestock farmers are too small to use the will play as it estimates indemnities to see is estimated to cost $35 million. Planned afford the high service or installation cost. tools of CME. Hedging other opportunities whether polices would have been available future expansions will bring an estimated There is no perceived value in adopting such as selling directly to feedlots or and purchased, take the lead on making $930,000 annually to the center, and an broadband. directly to an order buyer could increase missing products available to Kentucky additional potential $4.5 million per year In response to a question, Mr. Kiser potential in Kentucky. Few Kentucky stakeholders, and educate stakeholders to the local economy. There has been explained that broadband is defined as 768 livestock farmers use these tools because about risks involved. In addition to an overall economic loss to the region kilowatts per Federal Communications of the size of their operations. funding for the study, the department will of $50 million since 2005 due to the Commission (FCC) guidelines. CBOD Dr. Halich addressed the rainfall need to evaluate potential partnerships. lack of funding for the proposed 2005 meets monthly with ConnectKentucky, an index (RI), which is a USDA insurance There is a need for a political push to bring expansion plan. She requested that the organization created several years ago with program based solely on rainfall in a to Kentucky those programs that are being committee provide either $35 million for similar intent, to prevent duplication. grid area. It is designed for cattle and hay offered in other states. the convention center expansion, or $3 Mr. Kiser responded to a question operations, however; the pilot program is There being no further business, the million for continued planning. regarding wireless telecommunication, not available in Kentucky. The RI chooses meeting was adjourned. Greater Cincinnati/Northern stating that CBOD has a contract with 70 to 90 percent rainfall coverage and Kentucky Airport three major carriers. While it is not likely establishes a per acre income value. The RI Interim Joint Committee Ms. Candace McGraw, CEO, that wire will be laid in rural areas, it has can be adjusted from 60 to 150 percent on on Appropriations and Greater Cincinnati/Northern Kentucky been suggested that reverse marketing be an individual basis. The Non-Insured Crop Revenue Airport (CVG) provided the committee implemented to rollout in rural areas and Disaster Assistance Program (NAP) can an update on the regional airport. CVG is Minutes of the 4th Meeting then report its performance. be used for hay, although it is not thought an economic generator, supporting over of the 2012 Interim In response to a comment regarding to be good coverage, and few farmers use September 26, 2012 16,000 jobs with an annual impact of $3.4 poor and impoverished areas, Mr. Kiser it. Adjusted Gross Revenue – Lite (AGR- Call to Order and Roll Call billion. CVG is expanding its passenger and responded that there are no grants L) whole farm revenue insurance, which The 4th meeting of the Interim air cargo service, consolidating Terminal available, but CBOD works with groups is not available in Kentucky, insures 65 to Joint Committee on Appropriations 3/Concourse A, and enhancing concession such as Community Action to provide 80 percent of average five year revenues. and Revenue was held on Wednesday, service. She discussed CVG’s relationship donated items to families in rural areas. It is only available in Tennessee, Illinois, September 26, 2012, at 9:00 AM, at the with DHL Express, stating that DHL has Mr. Kiser stated that, just as small Virginia, and West Virginia. Newport Aquarium. Representative Rick invested $105 million in its CVG global satellite filled the gap for rural television, Dr. Halich stated that LRP is the Rand, Chair, called the meeting to order, super hub since 2009. Staffing will grow new broadband technology can fill the best option for most cattle farmers, while and the secretary called the roll. to approximately 2,300 when DHL’s $47 gap for rural areas in fixed wireless and the coverage for grain farmers is not Present were: million expansion is completed in early satellite broadband. Therefore, Kentucky’s comparable. Members: Senator Bob Leeper, Co- 2013. It will process 2.6 million pieces of needs include affordable broadband Chair; Representative Rick Rand, Co- cargo per month and sort 92 percent of all and increased adoption. The benefits of Discussion on Crop Insurance Chair; Senators Walter Blevins Jr., Joe US delivery shipments. The Terminal 3/ broadband availability include: education Programs Bowen, Tom Buford, Jared Carpenter, Concourse A consolidation opened in May, for students and the workforce; greater Dr. Cory Walters, University of Denise Harper Angel, Paul Hornback, 2012, and has had a positive response from opportunities for those of low income as Kentucky Department of Agricultural R.J. Palmer II, Brandon Smith, and Jack passengers. CVG is working on updating well as students with disabilities; distance Economics, testified that crop insurance Westwood; Representatives Royce W. its master business plan and business learning; aiding Kentuckians in becoming premiums increased from $1 billion Adams, John “Bam” Carney, Ron Crimm, model, which will serve as a blueprint for globally competitive; attracting future in 1994 to over $11 billion in 2011, Mike Denham, Kelly Flood, Danny Ford, CVG growth through 2035. businesses; eHealth; public safety; and while insured acres increased from 100 Derrick Graham, Keith Hall, Jimmie Lee, Ms. McGraw discussed several governmental services. million to 265 million. Statistics for the Reginald Meeks, Jody Richards, Steven customer service improvements made at Livestock Risk Protection state showed 2.9 million acres insured, Rudy, Sal Santoro, Arnold Simpson, CVG, which include enhancing retail and Program $1.5 billion in liabilities, $14 million in Jim Stewart III, Tommy Turner, Susan food options, free Wi-Fi, and USO military Dr. Greg Halich, University of premiums, $92 million in subsidies, $33 Westrom, and Brent Yonts. lounges in Concourses A and B. CVG Kentucky Department of Agricultural million in indemnities, and the loss ratio Guests: Ms. Gretchen Landrum, has introduced a mobile web application Economics, explained Livestock Risk equals an indemnity premium of 32 cents Executive Director, Northern Kentucky and is providing frequent customers with Protection Program (LRP) basics. The for 2012. Convention Center; Ms. Candace email updates about the facility. The TSA most useful tool for Kentucky producers In response to a question, Dr. Walters McGraw, CEO, Greater Cincinnati/ pre-check program has been introduced at is the United States Department of responded that 80 percent or more of the Northern Kentucky Airport; Mr. Roger CVG to improve passengers’ experience. Agriculture (USDA) Program, which state’s row crops are insured. Farmers’ Peterman, Chairman, Northern Kentucky Northern Kentucky Port gives the downside to price risk protection premiums are more than enough to cover Port Authority; Ms. Laura Brunner, Authority similar to futures markets in the Chicago last year’s losses, but that will not be the President, Port of Greater Cincinnati Mr. Roger Peterman, Chairman of Mercantile Exchange (CME) based on case this year. There have been monitoring Development Authority; Mr. Steve the Northern Kentucky Port Authority, the CME feeder cattle index and offers problems with tobacco insurance. Stevens, President, Northern Kentucky and Ms. Laura Brunner, President of the multiple coverage areas. The change Dr. Walters explained that there is Chamber of Commerce; Mr. Dan Tobergte, Port of Greater Cincinnati Development in CME feeder cattle index is used to no ad hoc assistance available for corn President and CEO, Tri County Economic Authority, discussed the duties of the determine the payment. producers who missed the March 15 Development Corporation; Ms. Jeanne authorities, which support multi-county Dr. Halich noted advantages of LRP deadline to purchase insurance. Schorer, Executive Director, The Catalytic initiatives and issue bonds for multi- being the 13 percent subsidy, which makes Dr. Walters explained that crop Fund; Honorable Chuck Scheper, Mayor, county organizations. The Northern it cheaper than a put option. There is no insurance contract decisions are made City of Covington Kentucky; and Mr. Jack Kentucky Port Authority would support commission, and coverage is available before the sales closing date and listed Moreland, President, Southbank Partners, possible legislation to expand the for cattle of any weight, sex, and type. coverage level, unit type, and insurance Inc. development authority beyond river Protection is offered for any number of type as the three primary decisions for LRC Staff: Pam Thomas, John Scott, transportation, similar to Port of Greater head with no minimum requirement. crop insurance. Group Risk Income Charlotte Quarles, and Sheri Mahan. Cincinnati Development Authority. The The disadvantages of LRP are that the Protection (GRIP) for a producer provides Port of Cincinnati is involved not only Representative Richards moved to

 2012 Interim LEGISLATIVE RECORD in public finance, but also in real estate Ft. Thomas and end at the city limits of are doing well, despite changes that have Stine, and Jack Westwood; Representatives development, land reutilization, and non- Ludlow, Kentucky. It is envisioned to been made in Washington, DC. There are Royce W. Adams, John “Bam” Carney, river related transportation and logistics. connect all the south bank of the Ohio 196 financial institutions in Kentucky, and Larry Clark, Will Coursey, Mike Denham, Brent Spence Bridge and the Angel River cities with riverside trails and venues over half are at least 100 years old. The Ted Edmonds, Jim Gooch Jr., Keith Hall, Investment Tax Credit within each city. There are segments of banking industry in Kentucky is strong Mike Harmon, Melvin B. Henley, Dennis Mr. Steve Stevens, President of existing walking/biking paths, but they and doing well. Horlander, Wade Hurt, Dennis Keene, the Northern Kentucky Chamber of lack connection to make it one continuous Status of the Banking Industry Thomas Kerr, Kim King, Martha Jane Commerce, and Mr. Dan Tobergte, system. The project would make these and Dodd-Frank Reform Act King, Adam Koenig, Tom McKee, Terry President and CEO of the Tri County connections. Also, the project would Charles Vice, Commissioner, Mills, John Short, Fitz Steele, Wilson Economic Development Corporation, conduct a feasibility study with the U.S. Department of Financial Institutions, Stone, Addia Wuchner, and Jill York. discussed the Brent Spence Bridge project. Army Corps of Engineers concerning the discussed the European fiscal crisis, U.S. Guests: Marcheta Sparrow, Secretary Mr. Stevens discussed the various reasons degree of erosion and ecosystem damage economic conditions, and Kentucky and Elaine Wilson, Executive Director, a new bridge is needed, including the need along the south bank of the Ohio River. banking conditions. The United States and Office of Adventure Tourism, Tourism, to alleviate congestion, decrease accident The study would concentrate on assessing Europe are significantly linked through Arts and Heritage Cabinet; Mark Mangeot, risk, and update a bridge that has become damage, suggesting repairs necessary, trade and financial channels. Europe is Legislative Liaison, Department of Fish insufficient and obsolete. He discussed the and suggestions to maintain a stable river one of the United States’ largest trading and Wildlife Resources; and Shad Baker, importance of the I-75 corridor to personal bank. partners, and United States money market County Extension Agent, Agriculture and cargo transportation to the regions. There being no further business, the funds hold core European bank debt. The and Natural Resources, Letcher County Mr. Tobergte said a new bridge meeting was adjourned at 10:54 a.m. A European crisis is due to excessive deficits, Cooperative Extension. would be built, the current bridge copy of all meeting materials and a cassette such as the debt in Greece, collapse of LRC Staff: John Buckner, Louis would be rehabilitated, and 7.8 miles of recording of the meeting are available in housing booms in Spain and Ireland, DiBiase, and Dawn Johnson. highway, ramps, and access roads would the Legislative Research Commission and debt and account deficits in Italy Minutes be reconfigured. The project’s anticipated library. and Portugal. The impact on the United A motion by Representative Clark to cost would be $2.7 billion. A potential States has been diminished exports, the approve the minutes of the July 19, 2012, solution would be a collaborative Interim Joint volatile dollar, and investors’ reduced meeting passed by voice vote, following a agreement between Kentucky and Ohio. Committee on Banking euro assets. The Commissioner spoke on second by Representative McKee. The first step would be a value for money and Insurance the numbers of finalized, proposed, and Adventure Tourism study to determine the tolerance for tolling required but not yet proposed regulations Mark Mangeot, Legislative Liaison Minutes of the 1st Meeting and suggest a preliminary financial plan. under Dodd Frank. He explained the for the Department of Fish and Wildlife of the 2012 Interim There is potential for a public-private September 24, 2012 steps of quantitative easing that the Resources, welcomed the committee to partnership, which would allow for a Call to Order and Roll Call Federal Reserve has taken since 2008. the Salato Wildlife Education Center. He shorter build timeline, lessen the financial The 1st meeting of the Interim Joint Commissioner Vice stated that, despite the gave a brief overview of the Salato Center, risk to the state, and reduce the needed Committee on Banking and Insurance was current economic conditions, Kentucky which hosts 75,000 visitors, mostly school initial capital investment. The estimated held on Monday, September 24, 2012, banks remain strong. groups, annually. completion is 2023 if private funds are at 2:30 PM, at the Northern Kentucky John Cooper, Legislative Consultant, Secretary Marcheta Sparrow, Tourism, not utilized. The completion date would Convention Center. Senator Tom Buford, Kentucky Bankers Association, Bob Weiss, Arts and Heritage Cabinet, introduced be 2018 using a combination of public- Chair, called the meeting to order, and the Kentucky Home Builders Association, and Elaine Wilson, Executive Director of the private funds. secretary called the roll. Tom Underwood, testified about how the Office of Adventure Tourism. Secretary Mr. Tobergte discussed the proposed Present were: “Affordable Health Care Act” will affect Sparrow noted Ms. Wilson’s previous Kentucky Angel Investment Act, 2013 RS Members: Senator Tom Buford, association health plans. They expressed experience and commended her work with BR77, which would provide individuals a Co-Chair; Representative Jeff Greer, concerns regarding affordability, access, the agency. 40–50 percent Kentucky income tax credit Co-Chair; Senators Jared Carpenter, and coverage. The association plans have Ms. Wilson explained the mission for certified investments. Julian M. Carroll, Dennis Parrett, Jerry been very successful. Mr. Cooper stated of the Kentucky’s adventure tourism The Catalytic Fund P. Rhoads, Dorsey Ridley, John Schickel, that a meeting has been arranged with program. The office published an updated Ms. Jeanne Schorer, Executive Dan “Malano” Seum, and Brandon Smith; the associations and Cabinet for Health guide outlining the state’s adventure Director of the Catalytic Fund, Representatives Dwight D. Butler, Will and Family Service representatives to tourism activities and outfitters based on summarized the activities of the fund. Coursey, Ron Crimm, Robert R. Damron, discuss the concerns. Senator Tom Buford an in-depth, statewide study. The study The Catalytic Fund is a private sector, Mike Denham, Ted Edmonds, Joseph M. asked that the associations report to the revealed a lack of understanding of not-for-profit organization that provides Fischer, Danny Ford, Jim Gooch Jr., Sara committee with the results from the adventure tourism, little coordination to financing assistance and related services Beth Gregory, Mike Harmon, Dennis meeting. maximize services and supplies, and no to developers of quality residential Horlander, Dennis Keene, Adam Koenig, With no further business, the meeting specific destinations. The office website and commercial real estate projects Michael Meredith, David Osborne, Ryan adjourned. was updated to be more appealing and in northern Kentucky’s urban cities. Quarles, Jody Richards, Steve Riggs, and user friendly. This spring, a marketing The fund provides various services to Arnold Simpson. Interim Joint Committee campaign included online marketing that individuals including gap loans and equity Guests: Ballard Cassady, President on has proven to be successful based on user investments, land banking, and financial & CEO, John Cooper, Legislative Economic Development interest. packaging. It provides capital through a Consultant, Debra Stamper, General Ms. Wilson noted an increase in $10 million investment fund to fill gaps and Tourism adventure tourism infrastructure, with Counsel, Kentucky Bankers Association, Minutes of the 3rd Meeting between traditional underwritten loans, and Charles Vice, Commissioner, some projects made possible by the developer’s equity, and project costs. A of the 2012 Interim tourism loan program. There are seven Department of Financial Institutions. September 20, 2012 portion of the fund is also allocated to LRC Staff: Sean Donaldson and new zip line businesses and three horse land banking activities. The fund requires Call to Order and Roll Call camps, as well as more multi-use trails at Jamie Griffin. The 3rd meeting of the Interim Joint repayment of all capital loaned, but it Senator Buford welcomed the Kentucky state parks, new construction can be flexible in terms allowing time for Committee on Economic Development projects, and ongoing efforts with private members of the Kentucky Banker’s and Tourism was held on Thursday, projects to become successful. Association and asked that the minutes landowners for more land access. The Riverfront Commons/Covington September 20, 2012, at 1:00 PM, at economic impact of adventure tourism from the November 22, 2011, meeting be the Salato Wildlife Education Center, Waterfront Development approved. can be up to $240 per person per overnight The Honorable Chuck Scheper, Frankfort. Representative Leslie Combs, visit. The average adventure traveler is Status of the Banking Industry Chair, called the meeting to order, and the Mayor of the City of Covington, and Mr. Ballard Cassady, President, generally more educated and affluent than Jack Moreland, President of Southbank secretary called the roll. the typical traveler. Adventure tourism Kentucky Bankers Association, welcomed Present were: Partners, Inc., discussed the Riverfront the committee to the Kentucky Bankers is beneficial from a health standpoint Commons project. This proposed project Members: Representative Leslie because outdoor activities tend to require Association annual convention and updated Combs, Co-Chair; Senators Jared includes an 11.5 mile walking/biking trail the committee on the banking industry in greater physical exertion. that would begin at the I-275 bridge near Carpenter, Denise Harper Angel, Katie Ms. Wilson explained the Kentucky Kentucky. He stated that Kentucky banks

THE KENTUCKY GENERAL ASSEMBLY  Trail Town Development and Recognition the Natural Bridge project. Ms. Wilson of trail towns because they become as Nickel, Education Professional Standards Program. By definition, a trail town said the agency has a good relationship much a part of the experience as the Board, Charlie Harmon, Kentucky is a portal to a trail system, either by with state forestry officials, and Secretary trail itself. Hikers look to these towns Department of Education; Cindy water or land access that offers services Sparrow said the agency would follow up for food and lodging, and their spending Baumert, Education Advocate; Wayne and supplies for trail users. To qualify, on the matter. has a significant financial impact in these Young, Kentucky Association of School participating towns should provide Representative Short asked if communities. Administrators. friendly and knowledgeable services tourism officials could ensure the Knott Responding to Representative LRC Staff: Kenneth Warlick, Jo about trails and services, and be willing to County Trail Ride continues with the Stone’s question, Mr. Baker said the state Carole Ellis, Ben Boggs, Janet Stevens, share their culture and history. The Office possible absence of the program’s primary prefers property easements to access land, and Lisa W. Moore. of Adventure Tourism has connected with promoter. Secretary Sparrow said the and this method is advantageous because Representative Collins moved to potential and participating towns, gathered cabinet would work with organizers and some landowners do not want to part with approve the minutes of the August 13, information, and provided guidance and community leaders to keep the event their land. 2012, meeting, and Senator Higdon resources where needed. The Trail Town going. Responding to Representative seconded the motion. The motion carried. Task Force, composed of various interest Senator Carpenter thanked Secretary Wuchner’s question, Mr. Baker said the Reports from Subcommittee groups and community officials, was Sparrow and Ms. Wilson for the work done trail between Breaks Interstate Park and Meetings created to help oversee the process. Ms. in Liberty and Casey County in regard to a US 23 is in good shape. There are no Senator Kerr reported on the Wilson noted that Gatlinburg, Tennessee recent adventure tourism event. shelters, but one is under construction. The Subcommittee on Postsecondary is one of the most successful examples of Ms. Wilson introduced Shad Baker, remote areas of the Highland Trail section Education meeting. The subcommittee a trail town. The trails rely on community Extension Agent with the Letcher County are in poor condition due to difficulty in heard from Bellarmine University, the volunteers to keep them maintained. Cooperative Extension. Mr. Baker spoke access. Mr. Baker is trying to obtain the University of Kentucky (UK), Kentucky Responding to Representative about the development of the Pine section running through the Pine Mountain State University (KSU), and the Kentucky Clark’s question about increased usage Mountain Trail as part of the Appalachian Wildlife Management Area from the Community and Technical College and access to his district’s stand-alone Great Eastern Trail. He said while other Department of Fish and Wildlife. System (KCTCS) on the role of the Office parks, Secretary Sparrow said the cabinet states have extensively promoted their Representative Carney said it of Student Affairs and its effect on student would look into the matter as the agency trails, Kentucky had not. In setting would be good for the media to cover the engagement and retention. All university has been working on other park-related up Pine Mountain Trail, coordinators volunteer efforts along the trail. When representatives echoed the theme that “an issues in the area. began working with the National Park questioning safety issues, Mr. Baker said engaged student is a retained student.” Representative Kim King pointed out Service’s Rivers, Trails and Conservation all the shelter areas have good cell phone Senator Kerr said students face many that the state is attracting specialty events Assistance Program. A nonprofit group coverage. challenges. Among these are mental and like the “Warrior Dash” in Marion County, was formed to promote the development Representative Carney said he hoped physical health, emotional, academic, the “Capitol City Dash” in Franklin of these trails. The Patton administration the state is doing all it can to promote trail time management, and financial issues. County, and the “Bourbon Chase” along designated the Pine Mountain State heads and ATV trails as it has become Senator McGaha reported on the Kentucky Bourbon Trail. Ms. Wilson Scenic Trail. Since then, the project has a multimillion industry throughout the the Subcommittee on Elementary and added that the state hosted two national received approximately $4 million in southeastern United States. Secondary Education meeting. The adventure events, and the state parks are grants. Currently, the trail is 56 miles long There being no further business, the meeting focused on the school federal hosting an “Adventure Race” series. and extends from the Breaks Interstate meeting adjourned at 2:30 PM. lunch program. KDE staff reported that Representative Wuchner noted that Park to Kingdom Come State Park. in the 2011-12 school year, 18 school participating communities are struggling There are three overnight shelters with a Interim Joint Committee districts took part in a federal program that to create jobs, and the new economy fourth under construction in Pike County. on Education provided free lunch to all students enrolled presents a cultural change for them. Because there are few access points to the Minutes of the 4th Meeting in specific schools in the districts. Known Representative York thanked the trail, they are working on creating more of the 2012 Interim as the Community Eligibility Option, Adventure Tourism Office for assisting trail head. He noted that all work is done September 10, 2012 the program operates as an alternative Olive Hill in becoming a trail town. She through volunteer labor. The trail has had Call to Order and Roll Call to household applications for free and said it is a process of using what is already over 4,000 volunteers with 160,000 hours The fourth meeting of the Interim reduced price meals. This number of in place--connecting towns along trails and $2.5 million in donated labor. Joint Committee on Education was held districts participating in the current school that already exist. Ms. Wilson said promoting the trail on Monday, September 10, 2012, at 1:00 year has increased to 52. Representative Hall said West opens opportunities for communities that PM, in Room 154 of the Capitol Annex. The subcommittee discussed Virginia has experienced significant are desperate for work that will allow Representative Carl Rollins II, Co-Chair, concerns pertaining to the changes in increased interest in historical sites that residents to stay in their communities. called the meeting to order, and the portion size in school meals as well as were featured in the History Channel’s The trail has acquired almost 1,800 secretary called the roll. the availability of food for students to The Hatfield and McCoy Feud, which had acres of land from 200 landowners and Present were: take home to share with their family 17.4 million viewers. He said given that developed 38 miles of trail. The agency is Members: Senator Ken Winters, Co- on weekends. These reductions hurt significant coal severance funding was in the process of acquiring land from the Chair; Representative Carl Rollins II, Co- the families most in need. KDE staff used to map the Hatfield and McCoy Trail Department of Fish and Wildlife that will Chair; Senators Walter Blevins Jr., Jared agreed to forward the concerns to federal in Kentucky, the state should embrace the add another eight miles to the trail. Carpenter, David Givens, Jimmy Higdon, representatives who set the standards. A new interest in the area. Mr. Baker said it was discovered Alice Forgy Kerr, Vernie McGaha, Gerald letter from the subcommittee addressing Responding to Representative at the Southeast Foot Trails Conference A. Neal, R.J. Palmer II, Johnny Ray these concerns will be sent to the United McKee’s question, Ms. Wilson said the that there is a system of trails developing Turner, Jack Westwood, and Mike Wilson; States Department of Agriculture. office is promoting more horse trails throughout the southeast United States Representatives Linda Belcher, Regina Ms. Tina Garland, Coordinator, in Harrison County where feasible and that can easily be connected, and the Petrey Bunch, John “Bam” Carney, Hubert presented an overview of the Farm to there are ongoing discussions with planning process is underway. Kentucky Collins, Leslie Combs, C.B. Embry Jr., School Program. The goal of the program is the Department of Fish and Wildlife is in competition with Virginia, which Bill Farmer, Derrick Graham, Donna to serve healthy meals in school cafeterias Resources about horse trails. Secretary who strongly promotes adventure tourism. Mayfield, Reginald Meeks, Charles Miller, while supporting local and regional Sparrow said the cabinet will contact the Pike County lobbied the Great Eastern Ruth Ann Palumbo, Ryan Quarles, Jody farmers. The program is also promoting department as they are unsure of the plans Trail Board to keep as much of the trail Richards, Tom Riner, Bart Rowland, Rita development of school gardens, which for that particular land as there are legal in Kentucky as possible. Some of the Smart, Wilson Stone, Ben Waide, Addia contribute to school cafeterias and help limits on some land usage. Representative challenges faced are land acquisition, Wuchner, and Jill York. teach children the importance of farming. McKee suggested setting aside some of which is a slow process, and expanding Guests: Clyde Caudill, Kentucky Education Professional Standard the property for horse trails and/or closing the volunteer base. Kentucky has not Association of School Administrators Board Progress Update horse trails during hunting season if been very successful in the recruitment and Jefferson County Public Schools; Alicia A. Sneed, Acting Executive necessary. of volunteer labor. He is working with Tamanda Barnett, parent; Don Meade and Director, Education Professional Standards Representative Edmonds asked college and university programs for earned Kennedy Turner, Jefferson County Teacher Board (EPSB), said EPSB is one of tourism officials to work closely with college credit. Association, Betty Muntz, Kentucky only 13 independent state professional state and federal forestry officials with Mr. Baker noted the importance Council on Exceptional Children, Linda standard boards across the nation. It was

10 2012 Interim LEGISLATIVE RECORD established during the 1990 Kentucky taught to teachers. EPSB and the Martin 119 of 120 counties in the number of and senior years of high school) are spent Education Reform Act (KERA) and has School of UK have completed a research additional Bachelor degrees needed to at the Bullitt Campus where students 17 members. Fifteen of the members are study on the effects of instruction in match national averages. move as a cohort group through traditional appointed by the Governor and confirmed writing for P-12. KDE provided the data. Mr. Davis said Bullitt County classroom settings with other college by the General Assembly. Dr. Cathy Gunn, EPSB Board Chair, secondary and postsecondary leaders students and complete the requirements Ms. Sneed said EPSB’s goals were said she is leading the search process to partnered to for an Associate’s Degree in Science or revised in 2005. The EPSB Board recently replace the executive director, who retired develop a variety of programs to Arts while fulfilling the requirements redesigned the Master’s Degree and June 30. Members can direct questions increase the number of college and work- for high school graduation. The specific administrative preparation programs. All about the search process to her. ready students. The district is determined program requirements and tuition costs principal preparation programs are now Ms. Sneed said EPSB has created a to transform community expectations for students to participate in BAMS are post-master’s. The curriculum requirements workgroup to endorse an on-line teaching and attitudes about higher education and included in the meeting materials located of the superintendent preparation programs work group to allow certified classroom to create a highly educated workforce to in the LRC library. are being redesigned. teachers to be prepared to effectively improve quality of life. Ms. Bruenger said the Bullitt Ms. Sneed said EPSB is raising develop and deliver on-line content. EPSB Mr. Davis described the unique Accelerated College Advanced Placement admission standards to initial teacher is creating a special education task force partnership between Bullitt County Public (ACAP) Early College program is another preparation programs. All new teacher to examine preparation and certification of Schools and the Jefferson Community partnership between Bullitt County candidates will be required to pass a special education teachers. Finally, EPSB Technical College (JCTC) Bullitt County Public School and JCTC. The initiative rigorous skills test in math, reading, and is monitoring the consolidation process Campus. The partnership is based on a involves offering dual credit courses by writing prior to admission. A 2.75 GPA of the NCATE and the Teacher Education series of purposeful action steps designed developing successful schedules, hiring is required for admission, and candidates Accreditation Council (TEAC) as they around the concept that successfully highly-qualified professors, and ensuring must demonstrate essential classroom skills move toward the creation of a single completing some amount of college credit rigorous college instructional materials are including critical thinking, collaboration, accrediting body, named the Council for while in high school is an influential factor used. Students participating in the ACAP creativity, and communication. the Accreditation of Educator Preparation in obtaining gainful employment and/or program are able to obtain up to 12 credit Ms. Sneed said EPSB is developing (CAEP). persisting in postsecondary education hours by the end of spring semester 2013. a quality preparation index for all of Responding to a question from after graduation. The classes allow students to accomplish Kentucky’s teacher preparation programs. Representative Stone, Ms. Gunn said Mr. Davis said Bullitt County will 20 percent of an Associate’s in Arts or The index includes a fair and reliable her background is in online learning at create the demand for education by Science degree. measure connecting to K-12 student the K-12 and higher education levels. increasing awareness. He said 100 percent Mr. Davis said three Bullitt College performance. Kentucky will participate She said research shows that high levels of high graduates will be either career or and Career Readiness Centers will be in the National Council of Accreditation of instruction can occur in the formal college-ready by 2015. Obstacles will be built, one attached to each high school. for Teacher Education (NCATE) Alliance classroom setting and on-line. In regard to removed by reducing the cost of college They will provide students flexibility by of states embracing school-based clinical teachers obtaining higher degrees in an on- by offering dual credit classes in high offering college courses in the evening. models for educator preparation. line setting, many traditionalists believe school. There will be an increase in the They also remove transportation obstacles The EPSB implemented its first students cannot learn at the same level in an persistence in transfer rates by getting and integrate “launch pads” in technical online application for certification for the on-line environment. As a former on-line quality information and expert college skills, career programs, as well as transfer TC-4 emergency substitute certificate. teacher, she said many great discussions advising to students and families in middle education within each major residential Last year, 7,000 substitute teachers were occur on-line, and she has shared those and high school. Every public school will area of the county. took emergency certification. Teacher with students in the formal classroom. have access to a minimum of 24 college Representative Rollins commended interns must demonstrate use and analysis A hybrid approach utilizing both on-line credits by high school graduation. Bullitt County for offering students these of data from formative and summative and classroom instruction is the most Donna Miller Bruenger, JCTC, dual credit course opportunities. He said assessments. EPSB staff will continue to effective approach. On-line courses are said the 12x12 Middle College program the dual credit classes will substantially provide ethics seminars for school districts monitored and required to meet the same is designed to give college-ready high reduce college debt for students who enroll and educator preparation programs at no requirements as a face-to-face class. school juniors and seniors the opportunity in college after graduation to complete a cost to ensure that educators are aware of Responding to Representative to become acclimated to college culture four-year degree. their fiduciary duties to students, parents, Palumbo, Ms. Gunn said field experiences through the pursuit of college credit in a Responding to questions from and the profession. might include observing a master teacher in traditional college campus setting. 12x12 Senator Givens, Ms. Bruenger said EPSB, in collaboration with the a classroom to working with small groups is a partnership between Bullitt County there is an 81 percent persistence rate Kentucky Department of Education of children within a classroom setting. She Public Schools and JCTC and all classes for students staying enrolled in college (KDE) and the Council on Postsecondary said clinical practice for students should occur at the Bullitt County Campus of upon completion of the Bullitt County Education (CPE), coordinated information involve engagement and discussions JCTC. The program began in August Middle College programs. She said this and training sessions on revised content with master teachers for reflection. Field 2008 and has expanded to include high is significant because there is a large standards for faculty and staff in all teacher experiences begin in the freshman year as school juniors who may take two classes percentage of Bullitt County students who preparation programs. Teacher preparation soon as students have declared education per semester, which means those students would enroll in college upon graduation programs sent the EPSB a current roster as their majors. Two hundred hours must can earn up to 24 college credits by the from high school but who would drop out. of adjunct, part-time, full-time, and term be completed before student teaching. end of their high school careers. The The goal for BAMS students is to attend faculty, denoting attendance at information Responding to Representative specific program requirements outlined graduate school and find employment in and/or training sessions in the use of Graham and Senator Neal, Ms. Gunn for the 12x12 Middle College program are the Bullitt County area. Kentucky Core Academic Standards. agreed that the best and brightest teachers included in the meeting materials located Mr. Davis said the high schools get to One hundred percent have completed the may not have the highest GPA. However, in the Legislative Research Commission keep the Average Daily Attendance (ADA) training. most students are required to have at least (LRC) library. funds for the students who participate in Ms. Sneed said EPSB is ensuring a 2.75 GPA, which is equivalent to a “C” Mr. Davis said the Bullitt Advanced the 12x12 or BAMS programs. This allows teacher preparation programs include the average. She said students who show Math and Science Middle College program the high schools to have more money and use of academic standards in pre-service promise can be tutored or mentored and (BAMS) is housed at the Bullitt County teachers to work flexibly in other areas. programs and that all teacher interns have offered extra classes to meet the 2.75 campus and is a partnership between Most of the high school teachers affected experience planning classroom instruction GPA. JCTC and the Bullitt County Public by the students attending the college credit based on the revised standards. EPSB Bullitt Advanced Math and Science School System. Students are recruited programs are being used to tutor other high appointed a committee to ensure the Program (BAM) and selected at the end of middle school school students who are struggling. Ms. alignment between the Kentucky Teacher Keith Davis, Superintendent, Bullitt (8th grade) and spend the first two years Bruenger added that those teachers are Internship Program (KTIP) and 2009 SB County Schools, said Bullitt County has of high school in an intensive secondary also used for tutoring the students enrolled 1. experienced rapid growth. As indicated education experience where they complete in the early college programs, particularly Ms. Sneed said EPSB, KDE, and in the latest national census, Bullitt a significant portion of the credits required in trigonometry, Algebra, and college level other partners are identifying weaknesses experienced at least a 21 percent increase for a high school diploma through in- writing. The faculty also stays engaged by in writing instruction and considering how in population over the past 10 years. person, hybrid, or on-line instruction assisting students to be successful in the skills to improve writing should best be According to CPE, Bullitt County ranks (APEX). The next two years (the junior college level courses being offered within

THE KENTUCKY GENERAL ASSEMBLY 11 the high school. a system of this nature. the National Assessment of Educational for incorporation in the students’ IEPs Responding to Representative Mr. McGrew discussed the high Progress (NAEP). NAEP policies do not to allow flexibility if state assessment Richards question regarding student school feedback reports and other allow use of a reader accommodation as policies are changed. Because of the perception of the early college programs, upcoming reports. A full list is located an indicator of a valid score. bridge language, a specially called ARC Alex Carter, Bullitt County BAMS in the meeting folder located in the LRC Mr. Draut said Maryland, meeting would not be needed. student, said she has benefited from the library. Massachusetts, and South Carolina have a Mr. Collette explained the proposed program. She is more confident in her Senator Higdon commended the P- waiver system for students with disabilities waiver process in the administrative critical thinking skills and life choices. 20 collaborative and its usefulness. who require special accommodations regulation. For students with a documented Senator Winters commended Review of Executive Orders 2012- on assessments. The ACT also utilizes a disability who, due to the severity of their JCTS and Bullitt County Public Schools 586 and 2012-737 waiver system for students with disabilities. disability, are unable to access the reading on their cooperative venture between There was no action taken by the Students are approved or disapproved for assessment without the use of a reader, the postsecondary and secondary education. committee on the executive orders. special testing accommodations based district may apply to KDE for a waiver The partnerships capture the spirit of the Review of Administrative on meeting specific criteria. He noted to use the read-aloud accommodation not intention of SB 1. Regulations the national testing consortium, the otherwise permitted in the administrative Mr. Davis thanked Senator Winters There was no action taken by the Partnership for Assessment of Readiness regulation. Mr. Brown noted there is no for sponsoring SB 1 and said it was the committee on 16 KAR 2:120 or 703 KAR for College and Careers (PARCC), to appeal process in place. best piece of legislation to ever come out 5:225. which Kentucky belongs, is considering a Mr. Collette shared the list of of the General Assembly. Ms. Bruenger Kevin Brown, General Counsel, KDE, waiver process. advisory groups who were briefed on said the early college program’s mission, explained 703 KAR 5:070, Procedures Mr. Draut said Kentucky has included status updates on the administrative vision, and action steps were derived from for the Inclusion of Special Populations a waiver process in 703 KAR 5:070 that regulation during the past year. A question SB 1. in the State-Required Assessment and would allow schools to apply for a reader and answer document was sent to district P-20 Data Accountability Programs. KDE amended for the reading assessment. He said KDE assessment coordinators and directors of Joe Meyer, Secretary, Education and the regulation to update terminology would approve or disapprove the waivers. special education in the spring of 2012. Workforce Development Cabinet, said the and requirements consistent with KRS Mr. Draut said the Kentucky Senator Winters said the major P-20 data collaborative is a cooperative 158.6453, KRS 158.6455, the NCLB Act mathematics assessment, in coordination issue the Education Assessment and working relationship among CPE, of 2001, the Individuals with Disabilities with the common core standards, measures Accountability Review Subcommittee EPSB, and KDE. It is a comprehensive Education Act, and its federal regulations, two types of mathematical abilities. The (EAARS) identified with 703 KAR data system that links early childhood, and Section 504 of the Rehabilitation assessment includes problem-solving, 5:070 was the timeline to implement K-12, teacher certification, workforce, Act of 1973, as amended, and its federal applying mathematical concepts, and the regulation in the spring of 2013. If unemployment insurance, and other data regulations. The amendments update completing computation problems. concerns are not quickly resolved in to provide a better picture of the overall the procedures for accommodations to Kentucky will no longer allow students the administrative regulation, it will impact of state policies and practices. include: limiting the use of the reader with disabilities to utilize a calculator on be difficult for KDE to implement the Charles McGrew, Executive Director, accommodation on reading tests; limiting the computation portion of the mathematics regulation in a few months. Education and Workforce Development the use of a calculator on non-calculator assessment. Responding to a question from Cabinet, said the system has the capability portions of state assessments; clarification Responding to questions from Representative Carney about the process to link high school and college data and of procedures for assessing students with Representative Rollins, Mr. Draut said KDE will use to approve or disapprove the will give a better understanding how high Limited English Proficiency; clarification the common core standards required both waivers, Mr. Draut said waiver approval school experiences affect college going of prompting and cueing to remain on comprehension and decoding to be in the would be decided on an individual basis and success. It will link preschool and early task; adding a 3 x 5 note card to approved reading assessment. Representative Rollins based upon student needs. childhood information to kindergarten and manipulatives; removing the use of student said students need to be accommodated Representative Graham said elementary school performance to ensure generated glossaries for English language who cannot decode in order to measure removing an interpreter will cause test that all children enter schools with the learners; removing outdated terminology; their comprehension skills. He said the scores to significantly drop. skills needed to be successful. providing a waiver for students with other argument is that students need to Responding to Representative Smart, Mr. McGrew said teacher preparation special circumstances; and reorganizing make progress and improve in both areas. Mr. Draut said the test is designed for the programs will benefit from the P-20 the document incorporated by reference to One percent of Kentucky’s students take grade level of the students, and not their collaborative by understanding how improve clarity. an alternative assessment. Students with functional level. well graduates are impacting student Ken Draut, Associate Commissioner, mild learning disabilities should be tested Responding to a question from learning in the classroom. Programs can KDE, clarified that readers will be allowed like everyone else, and this is a large Representative Rollins regarding the be modified to ensure that future teachers in mathematics, science, social studies, group. administrative regulation including the enter the classrooms with the skills they and science because those assessments test Mr. Draut noted that details of the End-Of-Course (EOC) examinations, Mr. need to have the greatest impact on content knowledge and not reading ability. administrative regulation were explained Draut said it would affect the English II test, students’ learning. Linking education The reader will be excluded on the reading to numerous superintendent groups and but would not affect math, social studies, and employment records in the future test only. The regulation does not have KDE had communicated the forthcoming science, or writing EOC examinations. will provide data on whether Kentucky any prohibitions on the use or non-use of changes to school districts. Administrative Representative Rollins said this could graduates are entering the workforce and a reader in the instructional classroom on regulation time constraints allowed harm an individual student’s grade. Mr. earning a reasonable wage. Data will a day-to-day basis. for KDE to receive public comments, Draut said a student’s use of a reader indicate how well Kentucky colleges are Mr. Draut said the new assessment and KDE changed the wording of the for many years could be considered as a meeting the needs of local industries, test is based on the common core administrative regulation from allowing reason to grant a waiver in high school. and what the return on investment is for standards in reading and mathematics. no readers to allowing some readers if a Representative Belcher expressed education and training programs. The reading assessment contains decoding waiver was requested and approved. He concern that KDE does not know the Mr. McGrew said the P-20 data and comprehension measurements. emphasized that no formal training has students as well as the people on the ARC. system is being developed through a Decoding is a term for reading the been provided to school districts because She also suggested exempting schools grant from the United States Department symbols represented in printed text. The the administrative regulation has not gone and teachers from sanctions if test scores of Education, Institute for Education problem with students utilizing a reader into effect. decrease. Sciences Statewide Longitudinal Data on the reading assessment is that it is in Responding to Representative Responding to a question from Systems program. Most states are in the conflict with the goal of measuring student Rollins question regarding students Senator Neal regarding implications to process of developing a similar system. proficiency in decoding. needing a new Admission and Release KDE for delaying the implementation Providing better data will inform decision Mr. Draut said 41 out of 50 states Committee (ARC) meeting, Johnny of the regulation, Mr. Draut said it was making at the local and state policy maker do not allow students with disabilities to Collette, Director, Division of Learning initially planned for the administrative levels. To receive federal money for use a reader. The other nine states allow Services, Office of Next Generation regulation to be in effect at the beginning education in the future, states must be able the limited use of a reader. Kentucky has Learners, KDE, said he did not believe of the 2012-2013 school year, but the to report on college going and success and the second highest number of students in a new Individualized Education Program process was slowed down. KDE is trying employment of graduates, as well as other the country whose scores are excluded (IEP) for students would be necessary. to stay on schedule and also to stay in- issues that can only be addressed through from fourth and eighth grade reports on Language was previously recommended line with what other states are doing. The

12 2012 Interim LEGISLATIVE RECORD timeline of implementation is not tied to state assessment system. The reasoning are concerned that there is not enough Collins, Derrick Graham, Rick G. Nelson, any funding source. was to ensure that all students were making time to prepare students for the changes Carl Rollins II, Bart Rowland, Wilson Responding to Senator Neal, Mr. progress. Some people believe that some of before they would take the assessment. Stone, and Jill York. Brown said the administrative regulation Kentucky’s educators are purposely giving Mr. McKim said the issue of too many Guests: Rhonda Caldwell, Kentucky is in the Governor’s Office, and he can students accommodations to improve test students using a reader should be addressed. Association of School Administrators withdraw, withdraw and amend, or scores. Kentucky should push its students Better professional development is needed and Clyde Caudill, Kentucky Association allow the regulation to go into effect to make them better, but be fair to those for teachers making the determination of School Administrators and Jefferson notwithstanding the finding of deficiency. who need accommodations. of whether a student should receive an County Public Schools. The Kentucky Board of Education (KBE) Senator Westwood said that, as a accommodation. LRC Staff: Janet Stevens, Ben could withdraw and amend the regulation, member of EAARS, the implementation Betty Muntz, Kentucky Council Boggs, Ken Warlick, and Daniel Clark. receive public comment in December date was the main concern in the regulation on Exceptional Children, said her School Nutrition Services 2012, receive approval in February 2013, because there was not enough time to major problems with the administrative Hiren Desai, Kentucky Department and return it to LRC next interim for prepare teachers and students for the regulation are that the waiver process of Education (KDE), Associate review. Representative Rollins said the changes. He defended the intent of KDE is established for a very small number Commissioner, Office of Administration process needs to be expedited. to ensure the validity of our assessment of students, and there is too much and Support, said there have been some Representative Farmer expressed reporting and said Kentucky is reporting paperwork. Kentucky may have hundreds changes to the School Nutrition Services concern over the lack of an appeal process that students are decoding when they are of applications for waivers, considering Program. In 2010, federal law changed to the waiver application. It could be not. He suggested using two separate tests the number of students impacted. with emphasis on changing meal patterns devastating to special needs children to to measure decoding and comprehension. Ms. Muntz said that KDE records and operational issues. Kentucky receives deprive them of readers. Students will be hurt if they are reported to indicate that less than 40 percent of about $250 million per year in federal Representative Rollins said the know how to read, and then fail in college, students use a reader. KDE is in violation funding. About $230 million of that committee could amend the administrative or on the job, because they cannot read. of a federal law that says every IEP team funding goes to school districts to help with regulation with the agreement of KDE, Responding to questions from Senator member must be trained on any changes in the National School Lunch Program. The and it would move forward. He suggested Westwood, Mr. Draut said 42 percent of testing procedures and accommodations, remainder goes toward reimbursement of moving the implementation date to the Kentucky’s special education population including parents. There is not adequate meals in childcare. There are over 1,000 2013-2014 school year, but noted KDE have readers. Senator Westwood said time to be in compliance with the law as sponsors who participate in the National Commissioner Holliday was not in too many special need students are using the regulation is written. School Lunch Program, School Breakfast attendance to respond. accommodations. Tamanda Barnett testified against 703 Program, Special Milk Program, Child and Donna Little, LRC Administrative Responding to Representative KAR 5:070 because she has a child in the Adult Care Food Program, and Summer Regulations Compiler, said the committee Wuchner, Mr. Brown said KBE may call 11th grade who reads at the 5th grade level. Food Service Program. and KDE could agree to defer the a special meeting if a situation warrants If her child does not have a calculator to Sue Bartenfield, KDE, Branch regulation until the October meeting. The it. However, KBE is scheduled to meet use, he will fail Algebra II. At the very Manager, Division of School and deferral would allow an appropriate time in October 2012, and this regulation least, a phased-in approach would be best Community Nutrition, said one of the for an amendment to be drafted and filed will be discussed along with the starting with younger children who are not changes in meal patterns is the alignment with the committee. recommendations from the EAARS and accustomed to using accommodations. of meal patterns and nutrition standards Senator Winters suggested deferring committee meetings. Mr. Brown said the Cindy Baumert, Education Advocate, for the National School Lunch Program the regulation until the November timeline is accelerated if the regulation is testified against the regulation. She is an and the School Breakfast Program to the committee meeting held in Frankfort. amended by the committee as opposed to advocate for parents who cannot afford dietary guidelines for Americans. As a The October meeting will be held at KDE withdrawing it. legal counsel. She said 703 KAR 5:070 result, school meals will have increased Murray State University, and it may not Senator McGaha said he is concerned is discriminatory against children with availability of vegetables, fruits, whole be feasible for everyone to attend. Mr. that EOC exams are affected by the dyslexia. KDE will have legal action taken grains, fat-free milk, and low-fat milk, as Brown said KDE would be willing to regulation. Students who have relied on against it if the regulation is implemented well as reductions in the levels of sodium, defer the regulation until October and using the readers for years will be at a as written. saturated fat, and trans fat within set calorie again to November. Senator Winters disadvantage. A lower EOC examination Kennedy Turner, JCTA, ECE Caucus ranges by set grade groups. Ms. Bartenfield acknowledged that the amendment may score will count in a student’s overall grade Chair, wants more changes made to the said there is increased availability to fruits need to be broader than just changing the and could jeopardize their graduation regulation other than just changing the and vegetables for each meal if students implementation date. from high school. He feels the timeframe implementation date. would like it. There are minimum and Representative Rollins summarized is problematic and that a phased-in Adjournment maximum requirements for all other that KDE agreed to defer 703 KAR approach starting with younger children With no further business before the foods. Portion sizes for meat and grains 5:070 until October, with the intention to would be ideal because they are not used committee, the meeting adjourned at 4:17 have decreased and portion sizes for fruits defer again to November. He is hopeful to receiving accommodations. PM. and vegetables have increased. an amendment can be accepted at the Senator Blevins said he wants In response to Representative November committee meeting to address KDE to include an appeal process for Interim Joint Committee Belcher’s question regarding students the concerns with the regulation. students who are denied a waiver to use on Education in elementary schools being allowed Representative Graham noted that accommodations. Mr. Collette said he Subcommittee on Elementary and to choose what they want to eat, Ms. deferral is the right option, allowing would investigate and report back his Secondary Education Bartenfield said the students are allowed ample time for KDE staff to consult with findings. Minutes of the 3rd Meeting to choose what they want to eat at the Commissioner Holliday and receive input Responding to Representative of the 2012 Interim discretion of the school district. from legislators on amendment language. Rollins, Representative Bunch said September 10, 2012 Representative Riner said the assessments should match student ability. Call to Order and Roll Call In response to Chairman McGaha’s administrative regulation is deficient She said special needs students are varied The 3rd meeting of the Subcommittee question regarding the minimum and and also hurtful to children. It will lower in skills and a one-test-fits-all mindset is on Elementary and Secondary Education of maximum requirement of food for each student assessment scores and keep special not realistic. the Interim Joint Committee on Education student, Ms. Bartenfield said meals must needs students from being accepted into Responding to a question from was held on Monday, September 10, 2012, stay within a minimum and maximum college. The drafter of the regulation Representative Belcher regarding the at 10:00 AM, in Room 129 of the Capitol range of the meats and meat alternate. disregarded all written comments and amendment process, Mr. Brown said Annex. Senator Vernie McGaha, Co- She said if the students are supposed to suggestions to improve it. He noted 42 KDE will accept written comments for Chair, called the meeting to order, and the have eight to ten ounces of meat or meat percent of Kentucky’s special education the amendment over the next few weeks, secretary called the roll. alternate weekly, then that would mean students use readers, and this regulation consider all suggestions, and give the Present were: they could have an ounce and one-half to will impose a hardship on them unless amendment to the committee. Members: Senator Vernie McGaha, two and one-half ounces daily. they receive waivers. Brent McKim, Jefferson County Co-Chair; Representative Ted Edmonds, Ms. Bartenfield said there is a paid Representative Rollins said Kentucky Teacher Association (JCTA) President, Co-Chair; Senators Walter Blevins Jr., and lunch equity tool that each school district and Maryland were the first states to spoke against the administrative regulation, Jack Westwood; Representatives Linda must complete and submit to the Division include students with special needs in the citing several concerns. He said teachers Belcher, Regina Petrey Bunch, Hubert of School and Community Nutrition. The

THE KENTUCKY GENERAL ASSEMBLY 13 school lunch must be at least $2.50 this included with the directly certified range for Kindergarten through fifth grade 2013 Kentucky State Fair. The program year because that is the reimbursement for children. is one ounce equivalent minimum daily involves schoolchildren and farmers each free lunch served. Ms. Bartenfield In response to Chairman McGaha’s and eight to ten ounces weekly; grades around a particular area. Farm to School said the paid lunch equity requirement may question regarding the funding being by six through eight, one ounce equivalent has been around for a few years and is be met through prices charged for “paid” school or district, Mr. Wagner said it is minimum daily and nine to ten ounces just now really starting to take off. Mr. lunches and through other non-federal determined school by school. weekly; and grades nine through twelve, Wickliffe stated that the program involves sources provided to the nonprofit school Mr. Desai said one of the challenges two ounces equivalent minimum daily more than just the farmer bringing the food service account. She stated some CEO had last year with the school and ten to twelve ounces weekly. Mr. fruits and vegetables into the schools in districts chose to supplement the costs of districts was the cost versus the benefit Desai stated that the Department of that schools are starting to grow their own meals rather than charge the students more of participating. School districts were Education and local school districts have gardens. Schools are taking an active role for their lunches. concerned with the administrative costs communicated concerns with the federal in greenhouse investments. In response to Representative with the process. One of the reasons there government about small portion sizes for In response to a question from Stone’s questions regarding the free and were only 18 school districts participating students. Representative Stone, Ms. Garland said reduced lunch rate, Ms. Bartenfield said the first year was that Kentucky was one Responding to Chairman McGaha’s the program is operating in Jefferson the schools have to charge at a minimum of three states in the country to pilot the question regarding a bag with more food County. Because Jefferson County is so the amount they get for reimbursement for CEO program. Many remaining school for students who are still hungry, Mr. large, the district must purchase from the free meal. districts did not know if the projected Wagner said he has heard of schools doing multiple farmers. In response to Chairman McGaha’s costs from the federal government would that and he is supportive. He said some of Mr. Wickliffe stated the Farm to question regarding certification, Ms. be accurate. He said the first year of CEO students might not be able to afford the School program works to make sure Bartenfield said the Division of School was a success, and after the word spread, bag. children understand how food gets to their and Community Nutrition has a definite other districts wanted to participate. Responding to Senator Westwood’s tables. checklist. The department has funding In response to Chairman McGaha’s question regarding students bringing their In response to Senator Blevins’ from the United States Department of question regarding Title I, Mr. Wagner own lunch to school, Ms. Bartenfield said question regarding the number of school Agriculture (USDA) to employ six people said Title I funding is tied to the number there are no restrictions by the government districts having farms and gardens, Ms. to train, do technical assistance, and certify of free and reduced paid children within for students to bring their own lunches. Garland said she did not know but that districts for meal patterns. The federal a district. Responding to Representative they are becoming popular across the funding is for two years. Deanna Tackett, KDE, Acting Belcher’s question regarding a regulation state. Mr. Desai said the Community Director, Division of School and that does not allow a student to have a Representative Graham commended Eligibility Option (CEO) is a very good Community Nutrition, explained the Fresh snack before lunch, Ms. Bartenfield said the presentation and stated that Frankfort federal program in which Kentucky has Fruit and Vegetable Program (FFVP). she is not aware of the regulation. It is up High School participates in the Farm to participated with two other states. FFVP program is based on a competitive to the school to decide whether to allow School program. Colby Wagner, Child Nutrition grant application process. Schools that snacks before lunch. Chairman McGaha thanked the Consultant, said the CEO program helps want to participate have to be eligible Upon motion from Representative guests for their presentations. With no districts get reimbursement for their meals elementary schools and must submit an Stone, seconded by Representative further business before the committee, the as opposed to collecting free or reduced application. FFVP offers fresh fruits and Belcher, the committee will draft a letter to meeting adjourned at 11:45 a.m. price applications from households. vegetables to students during the school the federal government to voice concerns Reimbursement is based on a percentage day, at times other than meal service about changes to the National School Interim Joint Committee of the district’s children who have been periods. Schools that represent a state’s Lunch Program and School Breakfast on Education directly certified. CEO provides an highest free and reduced price enrollment Program. Subcommittee on Postsecondary alternative to household applications for are eligible to participate and are given Farm to School Education free and reduced priced meals in high priority due to their high need level. Only Tina Garland, Farm to School Minutes of the 3rd Meeting poverty Local Educational Agencies elementary schools can participate, and Program Coordinator, Kentucky of the 2012 Interim (LEAs) and schools. LEAs and schools those elementary schools must operate Department of Agriculture (KDA), said the September 10, 2012 electing the option agree to serve all in the National School Lunch Program. Farm to School program links producers Call to Order and Roll Call students free lunches and breakfasts for Those schools must submit an application and schools together in Kentucky. The The third meeting of the Subcommittee four successive school years. to compete. Ms. Tackett said the funding Farm to School program connects the on Postsecondary Education of the Interim In response to Representative for this fiscal year is $2,746,543. Based on producer and food service director to Joint Committee on Education was held Collins’ question regarding financial the applications that were received, this create a relationship so schools can get on Monday, September 10, 2012, at 10:00 requirements for the free lunch program, calculates to $52.66 per child. fresh fruits, vegetables, meats, eggs, and a.m., in Room 131 of the Capitol Annex. Mr. Wagner said that districts are required Ms. Tackett said the Division of dairy products. Kentucky Proud is a big Senator Alice Forgy Kerr, Co-Chair, called to send applications. The applications School and Community Nutrition has a part of the Farm to School Program. The the meeting to order, and the secretary have the federal poverty rates according new computer application system called program provides the producer an edge on called the roll. to household size. If a family falls within Child Nutrition Information and Payment marketing and gives people a logo with Present were: a certain threshold of number of people System (CNIPS). This is an on-line, web- which to identify. Members: Senator Alice Forgy within the family and annual income, then based system that districts and child and Ms. Garland said program focuses Kerr, Co-Chair; Representative Reginald the children are eligible for free or reduced adult care food programs sponsors use to on three areas: classroom, community, and Meeks, Co-Chair; Senator Ken Winters; priced meals. process their applications and submit their cafeteria. The Program is a cornerstone Representatives Leslie Combs, C.B. Embry In response to Representative claims. Mr. Desai said that the system, paid for every community’s rural development Jr., Donna Mayfield, Ryan Quarles, Jody Edmonds’ question regarding money for for with federal funds, costs $2 million. because it can provide sustainability for Richards, Tom Riner, and Rita Smart. free lunches going to the whole school In response to Representative Collins’ communities and school involvement. Legislative Guest:Representative district, Mr. Wagner said the economy has question regarding students’ eating habits The program’s curriculum focuses on food Derrick Graham. gotten worse and as a result more families with fruits and vegetables, Ms. Tackett sources and nutrition. The curriculum also Guests: Gloria McCall, Kentucky are qualifying. said most children have been exposed focuses on involving the students, raising Community and Technical College System Representative Collins moved to to grapes and apples, but not much else. awareness, and increasing participation. and Sean M. Cutter, McBrayer, McGinnis, approve the minutes of the August 13, Some children are hesitant to try other Ms. Garland said the program promotes Leslie and Kirkland, PLLC. 2012 meeting, Representative Belcher fruits and vegetables until they see other taste testing with the students to encourage LRC Staff: Jo Carole Ellis and Lisa seconded the motion, and the motion children and adults eating them. them to try something new. Chefs were W. Moore. carried. In response to a question from recently introduced in the schools. Minutes from June 11, 2012, and Mr. Wagner stated that last year there Representative Belcher, Ms. Tackett said Bill Wickliffe, Director, Division August 13, 2012 were 18 school districts that participated 125 schools participate in the FFVP. of Food Distribution, KDA, said the Minutes were not approved due to in the CEO program. CEO has 52 school In response to Representative York’s Farm to School program will have a lack of a quorum. districts this year. There should be more questions and comments regarding ounces Junior Iron Chef competition this year. Students Affairs Administrators: participants in the coming years because of meat per week for students, Ms. This will be a school competition, just Their Role In Integrating Student this is the first year that Medicaid is Bartenfield said the minimum and weekly like a sport. The finals will be held at the Life and Learning On Kentucky’s

14 2012 Interim LEGISLATIVE RECORD Campuses education. Faculty is trained to watch Dr. Jones said the Division of Students developing strong connections to the Bellarmine University student assessment scores closely. The Affairs includes the police department and university through members of the UK Dr. Helen Grace Ryan, Dean of university incorporates qualitative work the staff in the health center. She said there community. The UK Student Affairs Students, Bellarmine University, said the and utilizes small groups of students. are four staff in the administrative office office provides many opportunities to mission of the Division of Academic and Kentucky State University of Student Affairs and five full-time staff facilitate these connections through Student Life is to support and enhance Ms. Vernell Bennett, Assistant Vice in the counseling center. She believes the internships, intramural athletics, volunteer the mission and vision of the university. President of Student Affairs, Kentucky Office of Student Affairs touches 80 to 90 work, student clubs, registered student The division works in partnership with State University, (KSU) said the mission percent of all students on campus in some organizations, and community service. the Division of Academic Affairs to of the KSU Student Affairs office is to manner. The health center receives about Dr. Mock said an engaged student foster opportunities for student learning develop, organize, administer, monitor, 1,000 visits per quarter. is a retained student. There are over 466 and success. Student Life will facilitate and coordinate a variety of experiences, Responding to Representative Meeks registered student organizations. He noted students’ academic and personal services, programs, and activities in such question on the percentage of students on 2,254 students were enrolled in UK 101 development through co-curricular a manner that they will have the greatest campus who do not have health insurance, and UK 201 in the fall of 2012. These experiences, services, programs, and impact on the growth and development of Dr. Jones replied that 900 students do not are academic orientation courses and 33 activities. Opportunities are intentionally a diverse student body. These experiences, have health insurance due to rising costs. percent of instructors for the courses were designed to promote the balanced services, programs and activities are KSU is not requiring students this academic student affairs staff. development of the whole person – administered through the following areas: year to opt into its insurance plan but did Dr. Mock said there are approximately intellectually, spiritually, vocationally, Counseling and Career Placement, Health have private health vendors available on 350 events designed to help new students socially, culturally, and emotionally to Services, Student Life, and the Office of campus during fall registration. successfully transition to UK. The UK for create active learners and responsible Student Affairs. Representative Meeks said the Unity and Service In Our Neighborhood, citizens for a global community. legislative body is concerned about known as UK FUSION, is a one-day Dr. Ryan said Bellarmine is a small, Ms. Bennett said the student affairs Kentucky universities being able to service event held each August. FUSION private university with 3,200 students, 40 office is the central administrative office provide its students health insurance. has included over 8,000 volunteers in its percent being first-generation students. for student non-academic activities. Its Regarding his question about changes in eight-year existence, reaching out to over There is a 12:1 teacher to student ratio, staff is responsible for student conduct and the financial aid regulations, Dr. Jones said 159 agencies and local neighborhoods. and she knows all students by their name. discipline; meal exemptions; for offering some students are losing their eligibility He said Dance Blue, a 24-hour dance She transports the students on tours of health insurance and excuses for class to receive aid prior to completing their marathon, had more than 3,000 students popular places in Louisville in an effort to absences, processing emergency student degrees. At this point, the student has to participate since its inception in 2006, integrate and familiarize students with the loans, counseling, and coordinating all pay out of pocket, or the university has to raising over $3.3 million for UK Pediatric community. areas in the unit. locate other resources to assist the student Oncology patients and families. Dr. Ryan said the Office of Ms. Bennett discussed challenges to graduation. She said the changes are Dr. Mock said students may obtain Multicultural Affairs supports students serving the 21st century student. Student based on family income thresholds and leadership positions within the student by offering co-curricular programs that safety has become a national concern the new requirements have eliminated affairs office. Student Affairs offers acknowledge and reflect the experiences due to increased incidents of terroristic some families from being eligible. programs and trainings, like the Leadership of underrepresented populations, while threat situations, particularly on college Representative Quarles said there Summit and the Emerging Leader Institute, also providing educational opportunities campuses. KSU has a Behavioral Threat is more student loan debt than credit which can aid in developing and refining for all members of the campus community Analysis Team (BTAT) of administrators, card debt. Responding to his question skills. He noted the UK Office of Student to examine their individual and group faculty, and staff. The BTAT is responsible about strategies for providing student Affairs employs over 1,000 students, and experiences within a culturally diverse for assessing possible threat situations loan information, Dr. Jones said students this can help reduce student loan debt. society. The purpose is to construct and addressing them accordingly. She do receive information on the issues of Dr. Mock said 1,488,776 students a community that acknowledges the noted individuals may make reports financing a college education through and others visited the student center in multiple perspectives and backgrounds anonymously via a hotline if they so financial aid programs. KSU hosts town 2010-2011, which is an increase from that are present on campus, thereby choose. hall meetings to explain to students the 1,191,651 in 2006-2007. He noted a short creating an inclusive and celebratory Ms. Bennett said the Betty White implications of student loans and how to dip of traffic in the spring of 2009, when campus environment where all students, Center on campus is the counseling center be good stewards of funds provided to the campus experienced very severe winter staff, and faculty are valued and affirmed. to support the mental and emotional needs them. weather which impacted the number of Dr. Ryan said alcohol and drug use is of students. Students are arriving on campus Responding to Senator Winters, Ms. people able to physically come to the on the rise with Bellarmine’s students. The more medicated and in need of counseling Bennett said KSU is a unique institution. It facility. American College Health survey reported in the areas of time management, building is a regional, comprehensive, liberal arts, Dr. Mock said there are 43 Greek- 15 percent of students do not drink alcohol, relationships, mental health issues, and and land grant university. Senator Winters letter organizations with 3,667 student 15 percent binge drink, and the others substance abuse. offered that KSU should market itself as members that are advised by fraternity fall somewhere in between. The same 15 Ms. Bennett said student healthcare a comprehensive university instead of a and sorority affairs. He said 65 percent of percent rule is applied to marijuana usage insurance is another challenge. An average liberal arts school. Representative Graham all registered student organizations are led on campus. Students are entering college of 950 students utilized the KSU healthcare said KSU is a historically black university by Greeks. Greeks are the largest donor more medicated and show signs of mental option in the last academic year. She said and is unique in that it provides liberal arts. base at UK. health issues. Bellarmine is committed to increasing costs of insurance leaves some He also noted the aquaculture program is Dr. Mock said students who live on help students with coping skills to deal with students without coverage and creates helping Kentucky farmers, especially in campus are more academically successful, depression and substance abuse issues. problems managing health issues for western Kentucky. earn better grades, and graduate 20 percent There are three full-time psychologists, uninsured students. University of Kentucky sooner than students who do not live on five doctoral or post doctoral students, and Ms. Bennett said funding continues Dr. Robert Mock, Vice President of campus. He noted only about 25 percent one psychiatrist on retainer to staff the on- to be an issue for students. Higher Students Affairs, University of Kentucky of students live on campus due to obsolete site counseling center. education costs are increasing and Pell (UK), said the Office of Student Affairs is housing and lack of rooms. Dr. Ryan said that Bellarmine grant awards are decreasing. She noted an integral part of university life. The office Dr. Mock said one challenge is recognizes the importance of technology. students have multiple jobs and full-time and programs facilitate interactions among funding all the services that students Faculty utilizes text messaging to course loads. There are new financial aid students, faculty, and staff to promote a need. He said more students are arriving communicate, and the university has policies that reduce the maximum amount campus climate that supports students’ on campus with psychological issues and a twitter account. Students reported of aid students can receive. academic success and their personal and are prescription medicated. He said 1,360 appreciation that Bellarmine communicates Responding to questions from professional development. Student Affairs total clients in the 2011-2012 academic with students on the social networking Representative Smart, Dr. Rubye Jones, promotes student development and year visited the counseling center. There sites. Vice President of Student Affairs, said lifelong discovery, celebrates differences, were 6,730 total student appointments, Dr. Ryan concluded that retention 2,800 students had registered for the 2012 and promotes global citizenship. as some students had multiple visits, and of students is important to the student fall semester. She said an average of 3,200 Dr. Mock said one of the most 718 of those were crisis and emergency affairs office. All faculty have a master’s to 3,400 students matriculate on campus important keys to a student’s success is consultations. There were 206 outreach degree or higher in counseling or higher annually. building meaningful relationships and presentations that reached 13,550 students,

THE KENTUCKY GENERAL ASSEMBLY 15 staff, faculty, and family members. Faculty initiatives that are both purposeful and The third meeting of the Interim Joint Schools, Anne Marie Regan, Kentucky and staff are also treated in the counseling holistic in nature. Committee on Health and Welfare was Equal Justice Center; Sarah S. Nicholson, center. Dr. McCall said KCTCS offers held on Wednesday, September 19, 2012, Kentucky Hospital Association; Drew Dr. Mock said the student affairs office students membership in various clubs and at 1:00 PM, Kaleidoscope, Inc., Younger Jenkins, Office of the Attorney General; maintains student wellness in a variety of organizations. KCTCS offers students Adult Day Health Center, 10330 Bunsen Ed LeMaster, Bluegrass-Oakwood; ways. The UK Campus Recreation Office new student orientation; tutorial services; Way, Louisville, Kentucky. Representative James Sharp, American Cancer Society, provides recreation for every season, as supplemental instruction to help them Tom Burch, Co-Chair, called the meeting Cancer Action Network; James Conway, well as club sports, intramurals, and a be effective and remain in college; to order at 1:02 p.m., and the secretary Wellcare; Tonya Chang, American Heart variety of fitness facilities and programs and seminars, events, and volunteer called the roll. Association; Charles Kendell, Kentucky at numerous campus locations. In opportunities for community and civic Present were: Department of Public Health, Cabinet for addition, Dining Services offers many activities. She noted KCTCS has strong Members: Senator Julie Denton, Co- Health and Family Services; Jill Seyfred, healthy options designed to fit a variety partnerships with the four-year institutions Chair; Representative Tom Burch, Co- Prevent Child Abuse Kentucky; Patty of dietary needs and special requests. in Kentucky for students who wish to Chair; Senators Joe Bowen, Tom Buford, Dempsey, The Arc of Kentucky; David Much of the food on the menu is locally transfer and earn a four-year degree. Perry B. Clark, David Givens, Denise Harris, National MS Society; Karen grown, creating a sustainable connection Dr. McCall said a new and Harper Angel, Alice Forgy Kerr, Dennis Lentz, EPIC Pharmacies; Mike Porter, with the local agriculture community. He comprehensive Student Services Center Parrett, Joey Pendleton, and Katie Stine; Kentucky Dental Association; Peggy said mental health is vital to a positive was opened in July 2012 to provide Representatives Julie Raque Adams, Porter, Independent Insurance Agents of campus experience for students. The UK a seamless, integrated 24 hour a day, Bob M. DeWeese, Kelly Flood, Brent Kentucky, Inc.; Steve Bing, Kentucky Counseling Center provides support for 365 days a year, student call center for Housman, Joni L. Jenkins, Mary Lou Public Health Association and Kentucky academic success, career decision-making, all KCTCS students. She said this new Marzian, Tim Moore, Darryl T. Owens, Health Department Association; and Carl and personal growth. delivery system provides up-to-date Ben Waide, and Addia Wuchner. Boes, ��������������������������������Kentucky Association of Regional Dr. Mock said that, in a coordinated financial aid information with a self-help Guest Legislator: Representative Mental Health and Mental Retardation effort with colleagues across campus, UK portal and gives students knowledge John Will Stacy. Programs, Inc. strives to maintain a safe environment on how to matriculate successfully in Guests: Darla Bailey, President, LRC Staff: DeeAnn Mansfield, Ben for living and learning. Many of the college. The system provides outbound Kaleidoscope, Inc., Younger Adult Day Payne, Jonathan Scott, Sarah Kidder, Gina staff members in the Division of Student servicing of communicating with students Health Center; Terry Wood, husband Rigsby, and Cindy Smith. Affairs serve in important roles to ensure including email, text, chat rooms, phone of Carolyn who attends Kaleidoscope; Approval of the Minutes of the campus safety and keep security measures calls, and social media outlets to keep Michael, Kaleidoscope participant, Dr. August 15, 2012 Meeting a top priority. He said 2,800 students students informed. Over 23,000 calls have LaQuandra S. Nesbitt, Director, and Kathy A motion to approve the minutes receive substance abuse education and been made by students inquiring about Harrison, Louisville Metro Department of of the August 15, 2012 meeting was responsibility courses through trainings, registration and other student issues. Public Health; Pamela McDaniel, Director made by Senator Buford, seconded by events, and workshops. They are supported Dr. McCall said many challenges of Parent Outreach, Carol Mueller, Director Representative Moore, and approved by by student wellness ambassadors who are face adult learners. Employment schedule of Public Relations, Cindy Baniago, Karen voice vote. dedicated to empowering their peers to issues, lack of employment, financial Ricci, and Donovan Fornwalt, Council on Consideration of Referred live safe and balanced lifestyles, focus issues, family demands, and personal Disabilities; Carrie Banahan, Executive Administrative Regulations on mental wellness, and avoid drugs and issues impact the adult learner’s ability Director and Bill Nold, Deputy Director, 201 KAR 2:340 – establishes the alcohol abuse. to advance their education and obtain a Office of Health Policy, Cabinet for Health requirements for the special pharmacy Kentucky Community and degree. Time management and balancing and Family Services; Dana Cox Nickles, permit for clinical practice; 201 KAR Technical College System work, family, and school is difficult. These Policy Advisor to the Secretary, Cabinet 22:040 – establishes the requirements Dr. Gloria McCall, Vice Chancellor, issues are compounded when students have for Health and Family Services; Dr. Terry and procedures for the renewal and Kentucky Community and Technical to take remedial courses because they are I. Brooks, Executive Director, Kentucky reinstatement of credentials for a physical College System (KCTCS), said 55 underprepared for college courses. Youth Advocates; Rusty Cress, America’s therapist or a physical therapist assistant; percent of students enrolled in KCTCS Dr. McCall said a challenge facing Health Insurance Plans; Renee Craddock, 201 KAR 22:045 – establishes continued are traditional students in the 18 to 24 age KCTCS students is limited engagement Capital Network; Sherry Currents, competency requirements and procedures group. She said the adult non-traditional as students commute and do not live on Kentucky Domestic Violence Association; of the Board of Physical Therapy; and learners comprise the other 45 percent. All campus. Many students are employed Paul Ankeny; Jodi Mitchell, Kentucky 910 KAR 1:190 – sets forth the standards KCTCS campuses are non-residential. or seeking employment, have limited Voices for Health; Steve Hart, Kentucky of operation for the nutrition program Dr. McCall said KCTCS students are resources, and can be underprepared for Board of Pharmacy; Marty White, Capital for older persons. A motion to accept different from traditional campus students college. Link Consultants; Carolyn Keelen, the administrative regulations was made in that they all commute on a daily basis. KCTCS Student Life staff members parent, Kaleidoscope; Don and Nora by Representative Owens, seconded by One reason students attend a community are well-trained individuals that help Putnam, Oakwood parents; Sandra Robie, Senator Harper Angel, and accepted by college is to earn a credential and a students transition into colleges across Community Living, Inc.; Scott D. Majors, voice vote. sustainable living wage. They may be the Commonwealth. Students are assisted Kentucky Board of Physical Therapy; Welcome and Presentation by interested in increasing their knowledge in preparing for lifelong learning and Eric Friedlander, Deputy Secretary, Kaleidoscope and skills for new job opportunities or to becoming contributing members of society. and Tina Webb, Cabinet for Health Darla Bailey, President, Kaleidoscope, upgrade their job training skills. Students The National College Survey of Student and Family Services; Heidi Schissler, Inc., Younger Adult Day Care Health also may want to transfer to a four-year Engagement showed KCTCS exceeded Protection & Advocacy; Elizabeth Fiehler Center, stated that therapy is an integral institution to obtain a baccalaureate the national average in many categories, and Phyllis Sosa, Department for Aging part for persons with developmental degree. but student and faculty interaction was the and Independent Living, Cabinet for disabilities to achieve their goals. She Dr. McCall said KCTCS offers highest grade given by students. She said Health and Family Services; Michelle said that legislators can contact her at associate degrees, certificates, diplomas, students form long lasting relationships Sanbord, Children’s Alliance; Bruce 502-664-7816 with questions or concerns. and workforce education training. KCTCS with faculty that last long after they leave Bushman, stepparent of John and Robbie Supplies delivered to individuals are often is the largest provider of workforce the classroom. who attend Kaleidoscope; Sue Johnson, not correct or too many are received, but if training in the Commonwealth. Adjournment KIPDA ADRC; Laura Anness Espinola the supplies are cancelled, it could be very Dr. McCall said the KCTCS Student With no further business before and Stacey Gash, Kentucky Board of difficult to get back on the list to receive Life programs and services foster student the committee, the meeting adjourned at Pharmacy; Jim McWilliams, Governor’s them. learning and development, prepare students 11:35 a.m. Office of Policy Management; Russell Ms. Bailey introduced Michael, who for their chosen professions, and help Harper, CoventryCares of Kentucky; started attending Kaleidoscope one year students become contributing members Interim Joint Committee Jim Richardson, Richardson Associates; ago and is enrolled in the Money Follows of a diverse and global society. She noted on Health and Welfare Andrew Wacker, Family Foundation; the Person (MFP) program and receives the student life services compliment the Minutes of the Third Meeting Libby Milligan, MSS; Denise Bingham, $125,000 per year for his services. Supplies colleges’ academic programs and enhance of the 2012 Interim Three Rivers District Health Department; delivered to patients are often not correct. the educational experiences of students September 19, 2012 Sabrina Moore, Dreams With Wings; Nick, Michael’s physical therapist, stated through curricula and co-curricula Call to Order and Roll Call Clyde Caudill, Jefferson County Public that when Michael first started attending

16 2012 Interim LEGISLATIVE RECORD Kaleidoscope he could not walk. After with lower incomes or who live in certain sexual assault and twelve times more likely would be difficult to make an informed doing activities and exercises, he can walk geographic regions tend to have poorer to be victims of robbery. The Cabinet for decision and judgment on the documents approximately 300 feet. Libby, Michael’s health outcomes. In the Kentucky county Health and Family Services received a prepared and passed out by the Senate speech therapist, stated that Michael can health rankings, Louisville Metro/Jefferson three year National Background Check Majority staff that members had not seen talk well about things he wants to talk County ranks second highest out of 120 Program (NBCP) grant from the Centers before the meeting but would be issued about. Living in the community, he gets counties for the quality of care available. for Medicare and Medicaid Services by the Interim Joint Committee on Health a lot of attention, which has helped him Kentucky has to have an outcome driven (CMS) in May, 2011. The grant will fund and Welfare. He suggested delaying the become more verbal and willing to do approach and remain committed to having the implementation of the program for vote on the findings to give everyone an different things he was not able to do in a good data information structure for that the first two years. Kentucky applicant opportunity to figure it out and make an an institution. approach to work. Registry and Employment Screening informed vote. Ms. Bailey introduced Terry Wood, In response to a question by (KARES) is a pre-employment screening Representative Flood stated that husband of Carolyn, and stated that Mr. Representative Burch, Dr. Nesbitt stated mechanism that will prevent individuals clearly this is a staged moment so that Wood would like to be able to purchase that Jefferson County has a smoke-free from hiding criminal or abusive actions members could be “on record” with a vote supplies directly for his wife using her workplace law. Many employers have when seeking employment in long-term that none of the members are prepared to Medicaid card. In 2011, Senate Bill 128 joined to form collaboratives. Louisville care facilities. State law currently requires make except for Senator Givens. was passed by the Senate that would Metro has a Worksite Wellness Initiative applicants for employment in long-term Senator Stine stated that a motion is allow enrollees in a home and community that provides awards to local companies care facilities to submit to a check of the appropriate at any time. based services waiver program to make a who are doing things to improve the health nurse aide abuse registry and name based, Representative Housman stated direct purchase of all necessary medical of its employees. Private sector companies state only criminal records check. There is that he agreed that this has caught some devices, equipment, and supplies. In 2012, realize programs need to be implemented no requirement for additional or ongoing people off guard, but he said that this is, House Bill 130 was introduced to with the to maintain a healthy workforce. checks during the individual’s employment unfortunately, very standard practice for same language. Neither bill passed both Preventing the Hiring of Former that may reveal if the individual has the committee. chambers to become law. Legislation Abusers to Care for Adults with committed any crimes after being hired. Representative Burch stated that with the same language will probably be Developmental Disabilities Through KARES, applicants will submit even if an explanation was given at the introduced again during the 2013 Regular Pamela McDaniel, Director of Parent to a check of all available abuse registries meeting, it is too complex and there are Session. Outreach, Council on Developmental and fingerprint supported, state and FBI some questions about the accuracy of Representative Burch stated that it is Disabilities, stated that her son, Cory, is 11 criminal background checks. parts of the findings. He stated that there important that money follow the person so years old and a student at Churchill Park In response to a question by will not be a quorum present after the individuals can receive needed services in School. Due to his significant medical Representative Marzian, Ms. Mueller discussions to take a vote on the motion. the community. Every person has the right history, he is deemed medically fragile, and stated that the cameras in the facility The Governor can issue an executive to reach full potential. requires total care for his activities of daily Donna was in were turned off due to order any time he wants, and it is up to The Future of Public Health living. Cory is non-verbal, incontinent, and privacy rights of patients and staff. the General Assembly to say whether it Dr. LaQuandra S. Nesbitt, Director, struggles to do the simple things that most Legislative Hearing on Executive is legal or not during the next Regular Louisville Metro Department of Public people take for granted. Her concern is if Order 2012-587 relating to the Session. Health and Wellness, stated that public anyone did something to her son, he could establishment of the Kentucky Health Senator Denton requested that health is about public and private not tell anyone. In a report in the American Benefit Exchange Senator Givens go through the findings partnerships. Only 20 percent of the Journal of Orthopsychiatry, Victimization A motion was made by Senator Givens so that everyone on the committee population’s health outcomes are related of Children with Disabilities, the authors and seconded Representative Wuchner understands the intent and meaning and to quality and access of care. The other reported that children with disabilities that the committee vote to report the how it relates to KRS 12.028. 80 percent is related to health behaviors, are more likely to be victims of abuse findings that explain why Executive Order Senators Clark, Harper Angel, Parrett, social economic factors, as well as the but may have more difficulty than their 2012-587 is out of order and report them and Pendleton, and Representatives Burch, physical environment. Factors that affect typically developing peers reporting their to the Legislative Research Commission Flood, Jenkins, Marzian, and Owens left health include counseling and education, experience. She stated that not only are Director with the understanding that he the meeting. clinical interventions, long-lasting disabled people easy targets, but teaching will forward them on to the Governor. In response to questions by Senator protective interventions, changing the them appropriate boundaries and self Representative Wuchner asked for a roll Denton, Senator Givens stated that KRS context to make individuals default to protective measures is very difficult or call vote. 12.028 provides the executive branch the healthy decisions, and socioeconomic sometimes impossible. While Cory is In response to a question by authority to create a new organizational factors. Addressing social economic protected under child abuse protection Representative Owens, Senator Givens unit and transfer existing duties under factors like education, poverty, stable laws now, there are no protections in stated that the Senate Majority staff state law to the newly created entity. housing, and other inequalities is where place for him when he turns 18 years old. provided the State of Findings to the The findings explain why the authority the largest impact needs to be focused. She said that there need to be protections committee. exercised by the executive branch does not The level of education attained is closely in place to make to make sure the most Representative Burch stated that exist. KRS 12.028 is written to result in the related to a person’s ability to live a healthy vulnerable individuals are protected no the courts have stated that the Governor efficiencies of operations as would result and productive life. Since a large number matter what their age. issuing an executive order is in line with from reorganization of existing activities of individuals have decided that vaccines Carol Mueller, Director of the Kentucky Constitution. The committee under state government. The Statement are not as necessary as before, there is Public Relations for the Council on needs more time to look at the handout in of Findings include: 1) Section 29 of the a resurgence of vaccine-preventable Developmental Disabilities, stated that she order to make an informed decision. Kentucky Constitution states that the illnesses. Public health officials realize is the guardian of her sister, Donna, who In response to comments made by legislative authority in Kentucky resides there is a need to reinforce the importance has autism to a profound degree. She has Representative Marzian, Senator Givens in the General Assembly; 2) Section 81 of long-lasting, high impact protective a history of suddenly leaving her home or stated that it would be bad form to make of the Kentucky Constitution requires the factors that could keep communities caregiver, eating inedible objects, entering a motion relevant to the health benefit Governor to faithfully enforce the laws of healthy. When the health of Kentuckians is strange cares, houses, or yards, and acting exchange presentation. The motion relates Kentucky; 3) The General Assembly has improved successfully, it will be because out when upset. She needs care with every to the specific authority cited by the not enacted legislation creating Health resources have been allocated in the correct aspect of hygiene and daily care. While executive order under KRS 12.028 as to Insurance Exchanges, nor have we allowed places and recognition of the important of most direct support professionals do their whether any Governor can create a new any other entity to create Health Insurance investments in the social economic factors jobs admirably, any of them, if they have entity and then house in that new entity a Exchanges; 4) The Governor has issued a and increased access to clinical services. done the job awhile and are honest and totally new purpose. KRS 12.028 relates document styled Executive Order 2012- Kentucky public health departments have not afraid of retaliation, will tell you that to reorganizations that are clearly defined 587 which purports to create Health ten core functions that break down into abuse is common. Statistics say that only in the statutes as the transfer of existing Insurance Exchanges in Kentucky and three basic areas of assessment, policy five percent of even serious crimes against functions. The motion is made with regard assigns those new duties to a new entity of development, and assurance. If Kentucky victims with developmental disabilities and to whether KRS 12.028 provides for the the Commonwealth. It also purports to add addressed systematic issues and problems, three percent of sexual abuse is reported. authority that the executive branch has over 200 new state employees to the state any disease or behavior can be effectively Individuals with developmental disabilities cited. payroll to perform duties not in existence addressed and improve outcomes. People are ten times more likely to be victims of Representative Owens stated that it prior to the issuance of the purported order;

THE KENTUCKY GENERAL ASSEMBLY 17 5) The purported order was issued under Senator Stine stated that the Contract debate and discussion about good public In response to questions by Senator the authority of KRS 12.028, styled as a Review Committee did not confirm the policy. KRS 12.028(4) states that if the Denton, Executive Director Banahan reorganization; 6) The purported order does contract to rent space for the Kentucky committee does not report on a proposed stated that there is no additional cost not, as required by KRS 12.028 indicate a Health Benefit Exchange office, but the plan within the time specified, the plan information available. The cabinet is in “transfer of functions, personnel, funds, cabinet leased the space anyway. All shall be considered reviewed by the the procurement process and hopes to equipment, facilities and records from branches of government need to know interim joint legislative committee with have a signed contract in the next few one organizational unit or administrative their boundaries and ensure all actions are appropriate jurisdiction. Failure to take a weeks at which time the developmental body to another”; 7) Rather, the purported constitutional. vote indicates that the executive branch costs, operational costs, and future costs order creates completely new duties to be Senator Stine stated that it was has the authority to do what it is doing, to be incurred will be known. Deputy performed by a completely new entity, regrettable that all the Democrats on the and because it is reviewed and reported Director Nold stated that the PowerPoint neither of which can be found in statutes committee had left the room, because it without the mood of the governing presentation is self-explanatory. enacted by the General Assembly, and is is important that everyone hear, listen, committee, it would be presumed to be In response to questions by an attempt to exercise authority beyond and have dialogue and work together to not only appropriate authority, but okay Representative Wuchner, Executive the power of the Governor found either in address the important issues. She stated for the executive branch to do what has Director Banahan stated that the cabinet statute or the Constitution. Therefore the that this is an Interim Joint Committee been done. The vote is very significant and has received $65 million in planning purported Order is an unlawful act by the on Health and Welfare, therefore, it is the lays groundwork for great future dialogue and establishment grants. Most of the Governor and is void and of no effect upon right forum and important to discuss all about trying to develop what is good $1 million planning grant has been the Government and people of Kentucky; issues that affect Kentuckians. public policy as it relates to purchase of expended. Approximately $1 million of and 8) Because the purported order is not Senators Bowen stated that when health insurance in Kentucky. the $7.6 million is left from the first Level a reorganization order, but an attempted there is a committee meeting it is a proper Senator Denton stated that rules I establishment grant. The second Level I usurpation of Legislative Authority by forum to discuss anything. While the legal say that once there is a motion that a grant for $57.6 million will be paid to the the Governor, this committee is not issue is an important component, the most vote on the motion must be taken. The vendor as soon as the contract is signed. bound by KRS 12.028 to any particular overriding component is that to preserve motion made by Senator Givens and Mr. Nold stated that when the cabinet review period, and may comment on the the balance of power in state government. seconded Representative Wuchner that applied for the federal grants, information Governor’s actions at any time. Senator Buford stated that an the committee vote to report the findings was provided on how much money was He said that the first conflict arises explanation on the exchange as to the that explain why Executive Order 2012- needed and why and then the grants were in KRS 12.028 (1)…changes in the state duties to be performed and services that 587 is out of order and report them to awarded by the federal government. All government organizational structure would be provided through the executive the Legislative Research Commission of the planning and establishment grant which may include the creation, alteration order. The next step is to determine if the Director with the understanding that he funds is in the cabinet’s budget system and or abolition of any organization unit or executive order is proper or not. There is will forward them on to the Governor was is being tracked by cost center numbers administrative body and the transfer of an appropriation issue to the state if the approved by voice vote. Representative attributable to each grant. functions, personnel, funds, equipment, exchange is created and the expenses are Wuchner reminded Senator Denton that In response to questions by Senator facilities, and records from one (1) supposed to be itemized to the best of she had requested a roll call. Senator Stine Stine, Executive Director Banahan stated organization unit or administrative body the ability of the executive branch. The stated a motion and a second for a roll call that approximately a year and a half ago to another. KRS 12.028(3) states any executive order states that the operations of vote had already been offered. Senator a stakeholder survey was conducted reorganization proposed under subsection the exchange will be wholly funded from Denton said to take the roll call. that asked questions about establishing (1) or (2) of this section shall be set forth in the revenues generated by the exchange While Senator Buford was explaining a state-based exchange and is posted a reorganization plan which shall be filed which is a tax on insurance premiums. The his yes vote, a motion to withdraw on the cabinet’s web site. Anybody was with the Legislative Research Commission. exchange will be Kentucky-only insurance the roll call vote request was made by able to respond to the survey. Of the 45 The plan shall include: (a) An explanation companies. He said that a vote can be Representative Wuchner. Senator Denton stakeholders, 24 responded. The majority of each proposed change, including the taken even though there is no quorum stated that a motion for a roll call vote had of the stakeholders that responded had need for the change; (b) An estimate of because it sets a statement and indicates been withdrawn. Senator Buford stated proposed that Kentucky establish a state- any reduction or increase in expenditures, that those present are not agreeable to the that if the committee did a roll call vote, based exchange. She would have to check itemized as far as practicable, which the tax increase at this time. Senator Denton once a quorum has been established, and to see how much of the $1 million planning promulgating officer expects will result stated that there was a quorum. it was earlier, the committee was at that grant was used for the survey. Senator from the reorganization; (c) A description Representative Moore stated that he moment just to have the majority, and that Stine requested that information on the of any improvements in the management, appreciated the conversation even with he needed to go back on his statement that accounting of the grants be provided at the delivery of state services, and efficiency the limited quorum that still remains. An it did not matter because it does. Senator next committee meeting. of state government operations which airing of different perspectives is how a Denton stated that there was a quorum. Senator Denton requested that an the promulgating officer expects will be consensus is created to lead the state and Senator Denton stated that only 11--not update and accounting information of the realized as a result of the reorganization. do so in a way that everyone can agree 14—members were needed to have a health benefit exchange be given at the The entire statute is written to result in with or at least know they have been quorum. If the quorum was established, October meeting. efficiency of operations as would result part of the process. The executive order and it was in the beginning of the meeting, Legislative Hearing on Executive from reorganization of existing activities says “NOW,THEREFORE, I, Steven L. a vote at this moment and time does have Order 2012-585, relating to the under state government. Beshear, Governor of the Commonwealth meaning, so Senator Buford withdrew his Establishment of the Child Fatality and In response to questions by of Kentucky, by virtue of the authority statement that it does not matter, because Near Fatality External Review Panel Representative Stacy, Senator Givens invested in me by the Constitution of the it does. It takes a simple majority of what Dana Cox Nickles, Policy Advisor stated that the statute speaks to the Commonwealth of Kentucky and KRS is remaining in the room once the quorum to the Secretary, Cabinet for Health and committee’s authority to review and 12.028, do hereby Order and Direct.” Even was established at the beginning of the Family Services, stated that child safety report findings relative to the executive in the order itself, there is a recognition that meeting. This is a valid vote that will be is important to the executive, legislative, order. Executive Order 2012-587 is not an the power of the Office of the Governor taken. He stated that he thought a roll call and judicial branches, private partners executive order under the authority cited stems from the authority granted to him by should be taken, but wanted the record to and advocates. The executive order is in KRS 12.028. If the Governor does not the people and the people’s representatives show that all present voted aye and there very specific on who the 17 members act in favor of the motion, the next step in the Kentucky Constitution and the was no opposition if only a voice vote is appointed to the panel. The panel will meet would be if someone wanted to pursue it Kentucky Revised Statutes. The issue is to be taken. Senator Denton stated that the quarterly to analyze data and recommend in a court of law to see if the Governor has about the authority of the Office of the motion had already passed with a voice improvements to the cabinet as well as the authority to create the health benefit Governor to reorganize existing state vote, but if it is the will of the committee to the Department for Community Based exchange. KRS 12.028(5) states that a government during an interim. That go back and to do a roll call, the committee Services (DCBS) and any other private temporary reorganization effected under reorganization has to get approval of the could go back. Senator Kerr seconded the or public agency that can assist in making subsections (2) and (4) of this section shall legislature. The authority has not been motion to withdraw the roll call vote made things safer for children. An annual report be terminated ninety (90) days after sine granted to create and establish, according by Representative Wuchner. will be published of the panel’s findings die adjournment of the next regular session to the statute cited in the executive order. Senator Denton stated that the record and recommendations. of the General Assembly unless otherwise Senator Givens stated that the vote would show the vote on the motion was Dr. Terry I. Brooks, Executive specified by the General Assembly. taken indicates a willingness to engage in unanimous with no dissenting votes. Director, Kentucky Youth Advocates,

18 2012 Interim LEGISLATIVE RECORD stated that he has three recommendations: Services, Cabinet for Health and Services, services for Western Kentucky residents Crittenden has been appointed the chair 1) inclusion of a medical professional in shared data concerning Child Protective by Senator Pendleton and Representative of the panel. The first meeting will be the legislation; 2) create a more reliable Services in 2012 and trends in out of home Burch, Commissioner James stated that November 27, 2012 at the Kentucky State data system; and 3) external fatality care among Kentucky’s children over the the department is looking out for the needs Police Academy. review panel. The review panel needs last seven months. Testimony also covered of the children in Western Kentucky. In response to a question by Senator to be independent of the cabinet and the the costs to the state to provide foster care, DCBS just received a federal grant for the Stine, Ms. Osborne stated that Executive Governor’s office and needs to be in a long term goals for children in foster care, Owensboro area for a START program Order 2012-585 is a reorganization and constitutional office. The board members and types of placements. Michelle Sanborn targeted for substance abuse parents that not a creation of a completely new entity. cannot represent groups whose financial with the Children’s Alliance discussed has good outcomes in managing children There being no further business, the reliability comes from the cabinet. The foster care from the perspective of private at home safely, reunifying families quicker, meeting was adjourned at 11:25 a.m. powers and protocols need to be included child caring agencies and talked about and helping parents stop the substance in the legislation. A decision needs to be the revival and future direction of the abuse. Interim Joint Committee made about what and how data is released Statewide Strategic Planning Committee School Required Immunizations on Judiciary in order to have transparency and if the for Children in Placement. for Children Minutes of the 4th Meeting panel has subpoena power. Legislation In response to a question by Dr. Kraig Humbaugh, M.D., M.P.H., of the 2012 Interim needs to be enacted in 2013 in order for Representative Burch, Commissioner State Epidemiologist, and Director of the September 7, 2012 the panel to continue its work. James stated that there are 42 DCBS Division of Epidemiology and Health Call to Order and Roll Call Representative Wuchner stated that children in out-of-state placements. Planning, Department for Public Health, The 4th meeting of the Interim Joint the review panel needs to be in a location Recently, there have been a significant Cabinet for Health and Family Services, Committee on Judiciary was held on that is totally objective. number of reports filed with DCBS and Kay Kennedy from the Kentucky Friday, September 7, 2012, at 10:00 AM, Adjournment on children between the ages of six to Department of Education, discussed the at the Department of Criminal Justice There being no further business, the eighteen years. current coverage requirements for children Training, Richmond, Kentucky. Senator meeting was adjourned at 3:22 p.m. In response to questions by Senator entering kindergarten and children Tom Jensen, Chair, called the meeting to Stine, Commissioner James stated that the entering the sixth grade. Testimony also order, the secretary called the roll, and a Interim Joint Committee cabinet keeps track of relative caregivers, highlighted the vaccine coverage rates quorum was present. on Health and Welfare but does not break it down by grandparents for children in kindergarten and the sixth Present were: Subcommittee on Families and raising grandchildren. There are grade and discussed methods of securing Members: Senator Tom Jensen, Co- Children approximately 11,000 children involved an exemption to vaccination requirements. Chair; Senators Ray S. Jones II, John Minutes of the First Meeting in the Kinship Care program. If family Compulsory school attendance and Schickel, Dan “Malano” Seum, and Robin of the 2012 Interim support criteria are met for caregivers vaccination requirements were also L. Webb; Representatives Joseph M. October 17, 2012 not receiving Kinship Care services, a discussed. Fischer, Kelly Flood, Sara Beth Gregory, Call to Order and Roll Call caregiver is eligible to receive Temporary In response to questions by Senator Joni L. Jenkins, Thomas Kerr, Stan Lee, The first meeting of the Subcommittee Assistance for Needy Families (TANF) Stine, Ms. Kennedy stated that it is not the Mary Lou Marzian, Michael J. Nemes, on Families and Children of the Interim services, medical card, and/or services intention to keep a child out of school due Tom Riner, and Brent Yonts. Joint Committee on Health and Welfare in the community. Mr. Grace stated that to an incomplete immunization record. Guests: Commissioner John Bizzack, was held on Wednesday, October 17, 2012, DCBS does not define homeless and The goal is to identify children prior to Department of Criminal Justice Training; at 10:00 a.m., in Room 131 of the Capitol does not track homeless children unless a the enrollment to make sure there is up- Secretary J. Michael Brown, Justice and Annex. Representative Tom Burch, Co- report of abuse or neglect has been filed to-date documentation provided by the Public Safety Cabinet; Ed Monahan, Chair, called the meeting to order at 10:05 with the department. The McKinney– parent or caregiver. Department of Public Advocacy; a.m., and the secretary called the roll. Vento Homeless Assistance Act of 1987 Senator Pendleton stated that the Ernie Lewis, Kentucky Association Present were: is the primary piece of federal legislation Family Resource and Youth Service of Criminal Defense Lawyers; Chris Members: Senator Katie Stine, Co- dealing with the education of children Centers (FRYSCs) are an integral part of Cohron, Warren County Commonwealth Chair; Representative Tom Burch, Co- and youth experiencing homelessness in helping children and parents. Attorney; Jackie Steele, Laurel/Knox Chair; Senators David Givens, Alice Forgy United States public schools. In January In response to a question by County Commonwealth Attorney; Lynn Kerr, and Joey Pendleton; Representative 2002, it was reauthorized as Title X, Part Representative Burch, Ms. Kennedy Pryor, Christian County Commonwealth Addia Wuchner. C, of the No Child Left Behind Act. stated that there are 35,000 students Attorney; Bill Patrick, Kentucky County Guests: Teresa James, Commissioner, In response to questions by Senator statewide classified as homeless, and Attorney’s Association; Mike O’Connell, and Jim Grace, Director, Division of Givens, Mr. Grace stated that different the McKinney-Vento definition is used Jefferson County Attorney; Commissioner Protection and Permanency, Department rates are paid for DCBS foster homes, to define homelessness by the Kentucky Rodney Brewer and Morgain Sprague, for Community Based Services, Cabinet private foster homes, private residential Department of Education. General Counsel, Kentucky State Police; for Health and Family Services; Michelle facilities, and other settings. Commissioner In response to questions by Senator Jerry Wagner, Kentucky Sheriff’s Sanborn, President, Children’s Alliance; James stated that the cabinet is looking at Givens, Dr. Humbaugh stated that currently Association; Les Russell, Kentucky State Kraig E. Humbaugh, M.D., M.P.H., performance based contracts to make sure implemented the lifespan Kentucky Fraternal Order of Police; Guy Howie, State Epidemiologist, Director, Division it receives the purchased services and, if Immunization Registry that is available Hopkinsville Chief of Police; Mike of Epidemiology and Health Planning, not, how best to be able to ascertain the to all providers. State health departments Bischoff, Executive Director, Kentucky Department for Public Health, Cabinet services for the children that are being and approximately 350 providers are Association of Chiefs of Police; David for Health and Family Services; Kay served. The goal for the department is to currently using the registry. The goal is to Leightty, Priddy, Cutler, Miller and Kennedy, Director, Division of District use residential care when appropriate and ultimately allow schools to have access to Meade; J.D. Chaney, Kentucky League Support, Office of Administration and then stepping children down appropriately the registry. of Cities; Shellie Hampton, Kentucky Support Services, Karen Erwin, and to more family and homelike settings. In response to a question by Association of Counties; Bert May, Cheri Meadows, Kentucky Department In response to questions by Representative Wuchner, Ms. Kennedy Dinsmore; Berl Perdue, Jr., and Bill Burch, of Education; Sara Osborne, Legislative Representative Wuchner, Commissioner stated that data relative to a specific type Fraternal Order of Police; Bob Stokes, Liaison, and Tom Cannady, Staff Advisor, James stated that an abuse or neglect of withdrawal of students relating to Attorney General’s Office; Gerald Ross, Justice and Public Safety Cabinet; Jim report on a homeless child would have to immunizations is not collected. Department of Criminal Justice Training; Cecil and Andrea Burnett, Kentucky Youth be filed with the cabinet for a child to be Executive Order 2012-585, relating Jan Gould, Kentucky Retail Federation; Advocates; and Jill Seyfred, Prevent Child in the system. Mr. Grace stated that some to the Child Fatality and Near Fatality and Bill Patterson and Charles Horton, Abuse Kentucky. situations go directly to the court and not External Review Panel Jefferson County Attorney’s Office. LRC Staff: Jonathan Scott, Sarah the cabinet. When children are placed in Sara Osborne, Legislative Liaison, LRC Staff: Norman Lawson, Jon Kidder, and Gina Rigsby. the custody of the cabinet, normally the and Tom Cannady, Staff Advisor, Justice Grate, Joanna Decker, Ray DeBolt, Shane Kentucky Foster Care System child receives Medicaid services, but and Public Safety Cabinet, discussed the Orr, and Rebecca Crawley. and Strategic Planning Committee for there have been some incidences where Child Fatality and Near Fatality External The minutes of the July 6 and August Children in Placement Updates the child is allowed to stay on a parent’s Review Panel and offered a status update 3, 2012 meetings were approved without Teresa James, Commissioner, private insurance plan. from the perspective of the Justice and objection. Department for Community Based In response to concerns about Public Safety Cabinet. Judge Roger Senator Jensen announced that Co-

THE KENTUCKY GENERAL ASSEMBLY 19 Chair Representative John Tilley was Department of Public Advocacy (DPA), enforcement, enhancing penalties for gang said recyclers and scrap metal buyers need recently appointed by Governor Beshear made recommendations for improving related crimes, forfeiture of gang property, to be held accountable for the items they to represent Kentucky at the Service the criminal justice system in Kentucky, and making gang recruitment a felony. purchase. She said her area has seen an Members, Veterans and Families Policy including a presumption of parole for Bill Patrick, Kentucky County increasing number of storm grates being Academy and was attending a meeting in eligible low-risk offenders, expanding Attorney’s Association, and Mike stolen and sold to scrap yards, in addition Washington, D.C., relating to veteran’s DPA’s social worker program to assist O’Connell, Jefferson County Attorney, to copper thefts. Commissioner Brewer substance abuse and mental health issues. courts in addressing the needs of discussed the current statutes on said the LEADSOnline program has a Senator Jared Carpenter and offenders, creating a new classification misdemeanor expungement. Mr. O’Connell component which would allow recyclers Representative Rita Smart welcomed for gross misdemeanors that would fall suggested clarifying the language on to report and track their transactions. the committee to Richmond, Eastern between felonies and misdemeanors, second and subsequent offenses, and Jerry Wagner, Kentucky Sheriff’s Kentucky University, and the Department reclassifying minor offenses to violations specifying which offenses should be Association, agreed with Senator Webb of Criminal Justice Training. or civil infractions, establishing a legal allowed to defeat an expungement. He about the need for more accountability Secretary J. Michael Brown, Justice standard requiring clear and convincing said his organization is working with for recyclers and scrap yard owners. The and Public Safety Cabinet, welcomed evidence for pretrial release decisions, the Kentucky State Police and others LEADSOnline program is very good, and the committee to the Department reforming the persistent felony offender to develop a proposal to address this the association supports efforts to expand of Criminal Justice Training and and violent offender statutes to make concern. the system. introduced Commissioner John Bizzack. sure the harshest punishments are used Mr. O’Connell discussed the Ms. Sprague recommended that Commissioner Bizzack presented a video to protect public safety, amending the confidentiality of juvenile court administrative subpoena powers now on the Department of Criminal Justice juvenile code to protect Kentucky’s proceedings. There may be a need to open limited to the Attorney General be Training (DOCJT), the first nationally youthful offenders, expanding judicial certain types of juvenile court proceedings expanded to the Commissioner of accredited police training institute in the discretion on expungement of convictions, for felony public offense cases, but not Kentucky State Police, which would United States. DOCJT provides basic expanding post-conviction DNA testing misdemeanor public offenses. He said 39 allow their crimes against children training for local police, sheriffs, and beyond capital cases, and implementing states have open juvenile proceedings. unit to subpoena computer records to other law enforcement personnel, and the ABA Death Penalty Assessment Team In response to a question from determine internet signal locations. She annual certification training for peace recommendations. Senator Seum about expungement of recommended prohibiting sex offenders officers, training approximately 12,000 Prosecutor’s Concerns felony records, Mr. O’Connell said from photographing children without the people annually. Senator John Schickel Chris Cohron, Warren County felonies cannot be expunged and only informed written consent of the parent, said he graduated from DOCJT in 1976 Commonwealth’s Attorney, noted the certain misdemeanor records can be amending the child solicitation statutes as a member of the law enforcement recent passing of Martin Scott, a highly expunged under current law. Senator to include internet chatting without actual community prior to being elected to respected member of the prosecutorial Webb suggested prosecutors, police, and traveling in furtherance of the offense, and the State Senate. He commended long- community, and expressed his deepest defense attorneys work on a unified draft permitting forfeiture of real property on time instructor Paul Cleveland and sympathy. Mr. Cohron said prosecutors are of legislation. conviction for manufacturing or producing said he still uses things he learned from still assessing implementation of House Bill Law Enforcement Concerns child pornography. him years ago. He and Senator Jensen 463. He recommended creation of a new Commissioner Rodney Brewer Guy Howie, Hopkinsville Chief of complimented the department on the classification of felony offenses with fifty and Morgain Sprague, General Counsel, Police, agreed with Commissioner Brewer quality of training provided to the law percent parole eligibility, and elimination Department of Kentucky State Police about the LEADSOnline computer enforcement community across the state. of credit for pretrial incarceration. He said (KSP), suggested the misdemeanor program and said it has made recovery of Representative Riner said his son is also a it is probably time for Kentucky to consider expungement process could be improved stolen property easier for law enforcement. graduate of DOCJT. switching from the current indeterminate by implementing a certificate of eligibility Gangs and gang related activity are an Defense Bar’s Concerns sentencing program to a determinate process for submission to the court, vetted increasing problem across Kentucky, and Ernie Lewis, Kentucky Association sentencing program, and abolishing the by KSP and the Administrative Office are no longer limited to urban areas. He of Criminal Defense Lawyers (KACDL) Parole Board. Virginia recently made this of the Courts (AOC), prior to granting concurred with the recommendations said the mission of KACDL is to ensure change and it has been successful. He said an expungement so uniform standards suggested by Christian County fairness and justice for all citizens, while it is very difficult to tell victims how long would apply. Commissioner Brewer said Commonwealth’s Attorney Lynn Pryor. protecting public safety. KACDL supports a person will serve under the current law, KSP processes approximately 12,000 Senator Jensen said it appears that many implementation of 2011 House Bill 463 because of the many credits which can records checks for expungement annually. people become gang members while in but several issues need further review, be applied to a sentence. Inmates are the Senator Webb said there needs to be an prison. Chief Howie agreed and said more including inconsistent use of the pretrial only ones who can accurately determine appeal process for applicants if a request programs are needed to discourage young release assessment by judges, denial of their serve out date, which is unfair to for expungement is denied by KSP or people from joining gangs. Mike Bischoff, bail credits without specific justification, victims of crime. Pretrial risk assessments AOC, so they have an opportunity to Kentucky Association of Chiefs of Police, lack of a clear and convincing evidence do not always consider the nature of the challenge incorrect information. Other said his organization will be meeting the standard for pretrial release, inconsistent offense or victim impact when setting the KSP recommendations include clarifying first week of October to discuss legislative application of deferred prosecution, conditions of bail or pretrial release. circumstances for vacating judgments matters and make recommendations. presumptive probation, and graduated Jackie Steele, Laurel/Knox County and expungement when new evidence Police Officers Bill of Rights sanctions by the judicial community, and Commonwealth’s Attorney, recommended exonerates the defendant, changing the Les Russell, Kentucky Fraternal inconsistencies in issuing citation only the statutes relating to aggregate drug laws on criminal background checks for Order of Police (FOP), and David Leightty, misdemeanors by some law enforcement sales under House Bill 463 not be limited appointees to boards and commissions an attorney representing police officers for agencies. KACDL’s recommendations to repeat sales of the same drug. Drug to allow periodic checks following their the FOP, discussed KRS 15.520, known include the need to reclassify Kentucky’s dealers sell a variety of drugs, and he initial appointment, and amending the as the Police Officer Bill of Rights. The many misdemeanor offenses by adjusting recommended that law enforcement be driving under the influence statutes to statute sets forth procedures for handling penalties and converting some to fine- able to aggregate different types of drugs specify that refusal to sign a hospital complaints against police officers, requires only offenses, reforming the persistent over 90 days, and not be limited to the consent form for blood tests is the same 24-hour notice, and permits the presence felony offender and violent offender laws, same exact drug for aggregate purposes. as refusal to take the test with the same of an attorney if requested by the officer. clarifying parole restrictions, considering He said prosecutors are working on draft penalties. Another recommendation is The FOP believes the statute applies to all converting to a determinate sentencing language for the change. requiring pawn shops to electronically complaints, whether citizen generated or system, implementing the American Bar Lynn Pryor, Christian County report purchases to law enforcement, and department generated. However, recent Association recommendations on the Commonwealth’s Attorney, discussed requiring them to maintain paper records of Court of Appeals decisions have ruled the death penalty, restoring the Criminal the increasing problem of gangs and their transactions. Commissioner Brewer statute applies only to citizen complaints. Justice Council to the 1998 version, gang related activities in Kentucky and said there is an excellent nationwide record Mr. Leightty said most complaints developing a significant system for felony recommended passage of criminal gang management system called LEADSOnline against police officers are departmentally expungement and restoration of civil legislation which would permit prosecutors which helps law enforcement track, generated, and the FOP disagrees with rights, and rewriting the Kentucky penal to tell juries a crime was gang related, identify and recover stolen property. The the court’s decisions. One of the cases code. establishing a uniform tracking system for computer program is available to pawn has been accepted for appeal by the Ed Monahan, Public Advocate, gang members and gang activity for law shop owners free of charge. Senator Webb Kentucky Supreme Court but has not been

20 2012 Interim LEGISLATIVE RECORD heard. A 2012 Regular Session legislative Coinciding with that is increased incidence said her organization offers long-term persons with criminal records. Employers proposal to address these concerns did not of copper and metal theft, and prostitution residential treatment programs across cannot find a qualified workforce. He said pass when the parties could not reach an directly tied to heroin addiction. He the state to approximately 600 people, Senator Dan Kelly began the push for agreement. said his officers are finding heroin users including those addicted to heroin. Ashley, treatment instead of incarceration, and he J.D. Chaney, Kentucky League of passed out with needles in their arms with a 26-year old resident, told the task force urged expansion of available treatment Cities, and Shellie Hampton, Kentucky children in the back seat. Heroin users about her successful recovery from opiate programs across the state. Association of Counties, said the right differ from crack users, who buy and addiction at The Healing Place, where she The State Crime Laboratory – an of government to control and discipline sell crack to support their habit, whereas has lived for about a year. She credited introduction to its leadership, functions, its employees is set forth in other statutes heroin users use all the heroin they buy the Healing Place for saving her life and personnel, and role within the criminal and they feel it should also apply to police to support their own addiction. Heroin teaching her how to be a good person and justice system officers. They agreed to work with the FOP addicts are not homeless, but rather have a good employee. If she had gone to jail Laura Sudkamp, Kentucky State and other parties to reach an agreement for jobs and families. Many are addicted to and been released without treatment, she Police Central Forensic Laboratory consideration by the 2013 Regular Session prescription painkillers. House Bill 1, would have returned to drugs right away. Manager, gave an overview of the central of the General Assembly. Senator Jensen passed in the 2012 General Assembly, Long-term residential treatment gave her laboratory facility and the services it urged all parties to reach an agreement makes it much harder to get prescription the tools she needs to be successful. The provides to law enforcement in Kentucky. before the next session. drugs legally, and their street price is Healing Place helped her get a job at Our There are six KSP laboratories with 131 Senator Webb said she agreed with increasing. People are turning to heroin as Lady of Peace, so she can restart her life. employees across the state, providing Judge Caperton’s dissent in one of the a less expensive and more readily available In response to a question from Senator forensic services free of charge to 450 cases, which said KRS 15.520 clearly alternative. In response to a question Jensen, she said she started drinking as a law enforcement agencies in the areas of applies to all complaints, not just citizen from Senator Stine about legislation to teenager, then began smoking marijuana, controlled substances, toxicology, trace, complaints. address this problem, Colonel Jones said was in a car wreck and received pain pills firearms and toolmarks, DNA casework, Chief Howie said police officer while arresting and jailing heroin users for an injury which she then began abusing, and the DNA database. The laboratories disciplinary actions do not always merit is a necessary tool to protect the public, and became addicted to prescription are funded by KSP general funds and the presence of an attorney. Many are the users cannot overcome their addiction painkillers. restricted accounts, DUI service fees, minor violations such as an officer caught without successful treatment programs. In response to a question from DNA court fees, and federal grants, and sleeping in his patrol car, maybe the officer Van Ingram, Office of Drug Senator Stine, Ms. Hascal said addiction processed about 38,000 cases in 2011. She is having trouble at home, or just needs a Control Policy, agreed that heroin use alters brain chemistry, and it takes nine to reviewed the number of cases processed schedule adjustment because he reports and addiction are increasing statewide. twelve months to rewire the brain, learn and the case backlog by section. late for duty. Mr. Bischoff agreed and Eighty heroin overdose deaths have been good decision making skills, and practice In response to a question from said requiring an attorney to be present reported through September 18, 2012. He those new skills under supervision. Senator Schickel about a high profile case and requiring 24-hour notice to the officer attributed this increase to the low price Women who are heroin addicts have more in northern Kentucky that is awaiting limits the police department’s ability to of heroin, easy availability, perception of heart problems, arrhythmias, and hepatitis DNA analysis by KSP, Ms. Sudkamp said deal with minor problems efficiently. He low risk, and public opinion. The DEA C from needle sharing. In response to the normal procedure is for the analyst to said his organization wants to be part of is reporting increases of black tar heroin a question from Representative Bell pull the oldest cases first, although cases the discussion to reach a compromise. sold by Mexican drug cartels. During about seeking a job with a felony record, are expedited if the court informs of a The meeting adjourned at 12:50 the 1960s and 1970s, there were public Ashley said The Healing Place offers a pending court date. However, sometimes p.m. service announcements to educate the three-month aftercare program, where the evidence presented does not have public about the dangers of heroin use, residents mentor new clients, sharing their enough DNA to be tested, and KSP must Interim Joint Committee but today’s young people have never been experience, strength and hope, and help wait for more evidence to be submitted, on Judiciary exposed to that kind of public education them to successfully complete treatment. which backs the system up even further. Minutes of the 5th Meeting effort. The medical community needs to be Our Lady of Peace is aware of her history KSP gives priority to homicide and of the 2012 Interim educated to recognize heroin addiction and and is willing to give her a chance to sexual assault cases normally. Typical October 5, 2012 learn how to make referrals to treatment prove she can be a good employee. Ms. evidence used to be fingerprint analysis, Call to Order and Roll Call programs, which are limited at this time. Hascal said The Healing Place works but technology is more advanced today The 5th meeting of the Interim Joint He agreed with Colonel Jones that heroin with the corporate community to show with more effective DNA testing. The Committee on Judiciary was held on addicts are not homeless junkies living that recovering addicts can be successful biggest increases in cases worked are in Friday, October 5, 2012, at 10:00 AM, at in a warehouse, but are people with jobs employees, and The Healing Place urges the controlled substances and toxicology the Kentucky State Police Central Forensic and families, many who are addicted to clients to be completely honest with sections. Laboratory, Frankfort KY. Senator Tom opiates, and who choose heroin as the next prospective employers. A criminal record Jeremy Triplett, Supervisor, Jensen, Chair, called the meeting to order, drug of choice. is a huge barrier to employment, and Controlled Substances Section, said his and the secretary called the roll. Senator Schickel commended failure leads many clients right back into section provides chemical analysis of Present were: Colonel Jones for his distinguished service addiction. They need to be able to support evidence from suspected drug crimes and Members: Senator Tom Jensen, to northern Kentucky and noted that he themselves and their families. Ashley clandestine laboratory analysis, with an Co-Chair; Representative John Tilley, is a former president of the Kentucky said she has learned a new way of living average case turnaround of approximately Co-Chair; Senators John Schickel, Fraternal Order of Police. He looks and how to apply her new life skills, but 25 days. The number of heroin cases has Dan “Malano” Seum, Brandon Smith, forward to working with him to address realizes her recovery will last a lifetime. increased significantly in the last three Katie Stine, and Robert Stivers II; heroin addiction problems in northern Representative Tilley said he visited years. He thanked the committee for Representatives Johnny Bell, Joseph M. Kentucky. The Healing Place with the House Bill passage of House Bill 433 to address the Fischer, Kelly Flood, Sara Beth Gregory, In response to a question from 1 Oversight Committee and was very bath salts problem in Kentucky. Joni L. Jenkins, Stan Lee, Mary Lou Representative Jenkins about existing impressed. Recover Kentucky operates Ryan Johnson, Supervisor, Marzian, Michael J. Nemes, Tom Riner, treatment programs for heroin addiction, ten centers across the state, and the centers Toxicology Section, said his section and Brent Yonts. Colonel Jones said Probation and Parole have added treatment beds since passage provides chemical analysis of blood and LRC Staff: Jon Grate, Ray DeBolt, in northern Kentucky told him there is a of House Bill 463. Faith-based treatment urine samples to detect the presence Joanna Decker, Matt Trebelhorn, Shane waiting list for placement. Representative programs have been successful, and he of alcohol and a variety of drugs. The Orr and Rebecca Crawley. Jenkins said the Department of hopes these programs will help address section analyzes 15,000 cases annually, The minutes of the September 7, Corrections’ budget is also impacted as the unmet needs of citizens with addiction including DUI, drug facilitated sexual 2012 meeting were approved without more inmates need treatment for heroin problems. House Bill 463 encourages assaults, accident investigations, and objection. addiction. Mr. Ingram said they are seeing deferred prosecution with treatment murder, assault and drug offenses. The Resurgence of Heroin in increased cases of Hepatitis C and HIV instead of jail time, which has saved the The most commonly detected drugs Kentucky from needle sharing. Colonel Jones said Department of Corrections an estimated include marijuana and illegal drugs Colonel Spike Jones, Chief of heroin use endangers law enforcement $25 million since passage of the bill. (mostly cocaine), and prescription drugs Police, Covington, discussed the increase from needle sticks and increases workers’ There are many barriers to employment (mostly Xanax, Lortab, Oxycontin and in heroin problems in Northern Kentucky. compensation claims. for persons with a felony record, and a Suboxone). He said many DUI cases also Karen Hascal, The Healing Place, number of professions prohibit licensure to have marijuana in the bloodstream, with

THE KENTUCKY GENERAL ASSEMBLY 21 marijuana being almost as common as Sexual Assault Programs was providing training for the jobs. According to the of workers is that high school graduates alcohol. The section has also seen a surge a packet of information relating to human study, while technical and manufacturing often place factory and manufacturing jobs in the presence of Suboxone. trafficking, and extending an invitation jobs have changed significantly, the at the bottom of their desired workplace Jack Reid, Supervisor, Trace Section, to attend the Association’s conference in education and training curriculum has lists. Businesses need to engage in major said his section tests for gunshot residue, northern Kentucky in December. not been modified to instruct students in outreach to the education community, hairs, fibers, paint, lamp filaments and The meeting adjourned at 12:45 critical-thinking and problem-solving parents, and students to help them glass, arson, physical matches, and soil p.m. skills, commonly referred to as soft skills. understand what economic opportunities analysis. There is only one trace laboratory These soft skills are necessary to fill and exist. The Education and Workforce in the state, with six employees who are Interim Joint Committee maintain the available positions. Development Cabinet has taken initiative also trained as expert witnesses. on Labor and Industry A study completed in 2012 by to heighten the role of Kentucky’s business Matthew Clements, Supervisor, Minutes of the 4th Meeting Brookings showed that in metropolitan and technical schools through Career Firearms and Toolmarks Section, said of the 2012 Interim areas, including Louisville, higher Pathways and SB 38. Secretary Meyer his office differs from other sections September 11, 2012 unemployment rates may occur when the said that budgeting remains a challenge. because they rely on their powers of Call to Order and Roll Call jobs require more secondary education In response to questions from observation, training, and experience. His The 4th meeting of the Interim Joint and training than the average adult in Representative Farmer, Secretary Meyer section provides firearms and toolmark Committee on Labor and Industry was these areas has attained. Kentucky has explained that the soft skills, in particular identification, serial number restoration, held on Tuesday, September 11, 2012, responded with an approach to education time management and discipline, are muzzle to garment distance observations, at 2:30 PM, in the Convention Center at and training programs that will strengthen not taught expressly in post secondary and shoe and tire print identification. After Kentucky Dam Village State Resort Park. the relationship of business and industry. education. This presents a problem when evidence is received, most cases can be Representative Joni Jenkins, Chair, called Secretary Meyer informed the committee graduates enter the workforce. Employers completed in about a week, but evidence the meeting to order, and the secretary of an executive order which places all experience issues with employees not may be held up in other sections with their called the roll. career and technical education programs showing up to work on-time and every own backlog, which affects the turnaround Present were: within the Department of Education. This day. The ability to attain a degree or time. Members: Senators Julian M. Carroll reorganization aligns post secondary and certification in a field through a college Whitney Collins, Supervisor, DNA and Ken Winters; Representatives John A. technical programs with the department or education program does not necessarily Casework Section, said her section Arnold Jr., Will Coursey, C.B. Embry Jr., updated curriculum standards, to prepare mean that the graduate has attained the soft provides serological analysis, bloodstain Bill Farmer, Richard Henderson, Dennis every student to be career-ready as well as skills needed to maintain employment. Mr. pattern analysis, DNA analysis, and entries Horlander, Wade Hurt, Joni L. Jenkins, college-ready. West said that the Work Ready Community to the Combined DNA Index System Adam Koenig, Mary Lou Marzian, The Kentucky Workforce Investment programs have made some very creative (CODIS) system. Most cases relate to Michael J. Nemes, Tom Riner, Jim Stewart Board (KWIB) seeks to develop tools efforts to raise awareness of this issue. murder and death investigations, sexual III, and Brent Yonts. to promote accountability within In response to questions from assault/sodomy, assault/kidnapping, Guests: Joseph Meyer, Secretary, communities and the workforce by Representative Koenig, Mr. West said robbery and arson. Violent crime analysis Education and Workforce Development strengthening the relationship with local any member or group representative of turnaround is about six to nine months, Cabinet; Tom West, Executive Director, business and industry. The growth of the community may apply for work ready and property crime analysis is about Kentucky Workforce Investment Board; secondary technical education programs certification, whether it is the school nine to twelve months. Her caseload Mark Brown, Secretary, Kentucky Labor in Kentucky is crucial to employment in board, chamber of commerce, or the local is about 2,500 annually, a 32 percent Cabinet and Kim Perry, Kentucky Labor emerging manufacturing and technical workforce. At a recent meeting in Madison increase in the past five years, mostly Cabinet. sectors. However, there is an apparent County, half of those in attendance were related to increased property crimes. She LRC Staff: Carla Montgomery, gap in instruction of soft skills, including from local businesses and the other half discussed the difficulties of analyzing Adanna Hydes, and Betsy Nickens. practical and critical problem solving were representatives of education. touch DNA samples because of the very Representative Jenkins, presiding skills in the workforce. A key initiative Senator Winters stated that a standard small amount of contact and evidence as Chair, informed the committee to the program is identifying statewide, curriculum between career and technical presented for analysis. Her section and attendees that the Co-Chairs of regional, and local sectors of business and colleges needs to be established, as well as needs more employees and equipment the committee, Senator Kerr and industry that are emerging as valuable, early guidance for students who express to maintain their turnaround time. She Representative Nelson, were not able high wage employment fields. Data-driven an interest in a particular field. made recommendations for amending to attend the meeting. A welcome was identification and training investment The minutes of the meeting on the statutes relating to post-conviction extended to Representative Keith Hall, decisions are helping to bring these jobs to August 16 were approved by voice vote. testing. former Representative Charlie Hoffman, Kentuckians. The initiative faces funding Employer Education Program Stacy Warnecke, Supervisor, DNA former Representative Jack Coleman, challenges in developing career pathways Secretary Mark Brown, Kentucky Database Section, said her section conducts and former Representative Mark Brown, to put people on the job. Labor Cabinet, provided the members DNA testing of convicted felons and who were in attendance. As the elected KWIB assists in developing work with an overview of the six education and registered sex offenders, and enters their representative from Marshall County, ready communities, where the entire training program partnership opportunities profiles into the CODIS system. CODIS Representative Coursey thanked the community is committed to accountability offered by the Cabinet to employers. has local, state and national levels, and members for their continued support of in education and training results so that the Participation in the programs is voluntary. they search and report matches to unsolved the annual Kentucky Labor-Management workforce has all of the skills necessary All services provided by the staff of the cases. The section receives about 12,000 Conference, held at Kentucky Dam to do the work required, including Education and Training Division are free. cases annually, and the backlog is about Village State Resort Park in Gilbertsville. digital literacy. Mr. West stated that ten Voluntary Protection Partnership 6,000 cases. She discussed the proposed A moment of silence was observed in communities have been certified by (VPP) is the most prestigious and rigorous arrestee database, with an estimated 42,000 remembrance of the eleventh anniversary KWIB as Work Ready Communities, eight for companies to earn. The Education and arrestees and offenders, which will require of September 11, 2001. applications for certification are pending, Training Division staff work with most additional personnel and equipment, and Good Jobs and the Skills Gap and 30 communities in Kentucky have companies several months/years before said estimating how much the system will Secretary Joseph Meyer, Education applied for certification in 2013. There are the company will complete the criteria cost is very difficult. She said the system and Workforce Development Cabinet, and ten local workforce investment boards in to achieve this recognition. There are 11 will need a sustainable funding source as Executive Director Tom West, Kentucky Kentucky. active VPP sites in KY with an additional grant funds continue to decrease. Privacy Workforce Investment Board, presented In response to questions from eight to ten in various stages of the protections are set forth in state and federal information regarding the job market Representative Yonts, Secretary Meyer program. statutes, and expungement processes are in in Kentucky and the apparent skills gap explained that according to the 2011 Safety and Health Achievement place if the DNA sample does not match that inhibits the filling of many high- Deloitte study, nationwide there are 600,000 Recognition Program (SHARP) is the the crime. skilled technical and manufacturing jobs. manufacturing jobs unfilled because of fastest growing partnership in general Senator Jensen thanked everyone Secretary Meyer stated that, according the skills gap. Many representatives of industry with 17 active sites. While similar for their informative presentations and to a 2011 study by Deloitte, there are Kentucky manufacturing businesses have to VPP, it is not as stringent and the initial for hosting the committee meeting at the 600,000 manufacturing jobs unfilled expressed the need for highly skilled, process differs. Recertification for this facility. He told the members that Marylee because employers are unable to acquire trained workers to fill high paying program occurs every two to three years. Underwood, Kentucky Association of employees with the necessary skills and positions. A factor attributing to the lack Construction Partnership Program

22 2012 Interim LEGISLATIVE RECORD (CPP) is for construction companies/sites There being no further business, the the supplier who must sale to the second of the wholesale tax from 11 percent to 9 only. CPP involves all employees on site, meeting adjourned. tier, the wholesaler, who must then sale to percent. Also, the sales tax in 2009, which including sub contractors. Companies may the third tier, the retail outlets. was levied on retail sales, has caused have several active sites in the partnership Interim Joint In 1982, Governor John Y. Brown, Kentuckians to purchase alcohol across the at the same time. There will be at least 16 Committee on Jr., asked the industry for help with tax border, particularly in Ohio. Elimination active sites by the end of September 2012, Licensing and collection. Because not all entities were of the retail tax on alcohol could boost the most open CPP partnerships at one paying their appropriate taxes, legislation sales significantly. Senator Buford opined time. CPP is a fast growing program, and Occupations was passed removing the retail tax and that reducing the tax would increase the division expects several more requests Minutes of the 4th Meeting putting the tax at the wholesale level. Thus, sales in Kentucky, allowing for more before the end of the year. of the 2012 Interim the wholesalers were in a sense collecting taxes paid on those sales. Also, increased September 14, 2012 Safety Partnership program (SPP) is the retail tax for the Commonwealth. In sales from reduced taxes would create designed for the company struggling with Call to Order and Roll Call 2006, Kentucky raised its wholesale tax a need for more jobs and more payroll safety and health issues. SPP is a three year The 4th meeting of the Interim Joint from 9 percent to 11 percent. In 2009, a 6 taxes paid. In response to a question from program with the goal to greatly improve Committee on Licensing and Occupations percent tax was added on retail sales. Since Representative Meeks, Dr. Coomes said rates and overall safety of the facility in was held on Friday, September 14, 2012, 2006, taxes on the wine, malt beverages, he would supply a copy of his full report the three year time frame. Successful at 10:00 AM, at Southern Wine and Spirits and distilled spirits have risen 88 percent. produced for the wholesalers. That report competition of this program can also in Louisville, Kentucky. Senator John Wine, malt beverages, and distilled looks at all areas of consumption and sales be used as a stepping stone to apply for Schickel, Chair, called the meeting to spirits are triple taxed. There is the 11 comparing Kentucky to its border states, the SHARP partnership. The division is order, and the secretary called the roll. percent wholesale tax. There is an excise using controls for the general state of the currently looking for companies to assist. Present were: tax that has specific taxes for beer ($2.50 economy. Voluntary Protection Partnership for Members: Senator John Schickel, per barrel), wine (50 cents per gallon), and Kentucky Housing Corporation Construction (VPPC) is very similar to Co-Chair; Representative Dennis Keene, distilled spirits ($1.92 per gallon plus an Rick McQuady, CEO of the the VPP but geared for the construction Co-Chair; Senators Tom Buford, Jimmy additional 5 cents per case sold). There is Kentucky Housing Corporation (KHC) industry. When an active site is chosen a Higdon, and Dan “Malano” Seum; the blanket 6 percent sales tax on all types said the agency was created in 1972 to complete and highly detailed safety and Representatives Tom Burch, Larry Clark, of beverages sold. provide affordable housing opportunities health audit is conducted. Kentucky is one Dennis Horlander, Wade Hurt, Joni L. Dr. Coomes commented that to low and moderate-income families. of only a few states that offer the VPPC Jenkins, Adam Koenig, Reginald Meeks, Kentucky is one of the most porous states Since that time, KHC has provided program. There are two active VPPC Charles Miller, Michael J. Nemes, David in the nation with seven bordering states, funds for mortgage loans for first homes, companies. Osborne, Darryl T. Owens, Ruth Ann with only Missouri and Tennessee having administered federal dollars provided to OSH Strategic Partnership (OSP) Palumbo, Arnold Simpson, and Susan more borders. A census in 2010 shows agencies throughout Kentucky that assist is offered to groups looking to partner Westrom. that over 50 percent of Kentuckians live the homeless population, and financed with OSH that may not fit into another Guests: Pat Crowley, Wine and in a county that borders another state. construction. All federal resources for partnership, such as unions or trade Spirits Wholesalers of Kentucky, Forty-Four percent of this population housing in Kentucky come through KHC. associations. There are no active OSPs. Kentucky Beer Wholesalers Association is in Northern Kentucky on the Ohio The Affordable Housing Trust Fund The Partnership Branch is very and Kentucky Malt Beverage Council; River. This creates more opportunities (AHTF) was created by the legislature busy, and all services are provided by Paul Coomes, PhD, Dan Meyer, Wine for Kentuckians to purchase alcohol from in 1992 to provide additional financing the four consultants and three program and Spirits Wholesalers; Rick McQuady, other states with lower prices. Since the resources to address the housing needs administrators. Employers have offered CEO, Kentucky Housing Corporation; implementation of the 6 percent sales tax of Kentuckians whose maximum income very favorable responses and comments Tom Underwood National Federation in 2009, the number of cases of beer sold is no more than 50 percent of an area’s to the partnership programs provided. of Independent Businesses and Raleigh has declined by over 6 percent and this median income. In the past, funding has Additional safety initiatives Brunner, Wildcat Moving, and Joshua P. appears to be a continuing trend. Retailers come from different sources, such as the conducted by the Cabinet include the 2012 Thompson, Pacific Legal Foundation. in Northern Kentucky have reported that General Fund. Money from unclaimed Heat Campaign and the Tornado Outreach. LRC Staff: Tom Hewlett, Bryce Ohio customers are now staying in Ohio; lottery winnings was used to fund the In early July, Education and Training Amburgey, Carrie Klaber, Alan Jones, and and Kentucky customers have begun to AHTF, but the AHTF is now funded by Division staff traveled to 77 counties Susan Cunningham. drive to Ohio, purchase beer, and bring money received from the county clerks. providing educational information on Approval of minutes it back to Kentucky for consumption. Six dollars from each fee collected by the the dangers of working in heat. After the A motion to approve the minutes Additionally, wine sales have not been on county clerks goes to the trust fund. KHC early March tornadoes in West Liberty from the August 27, 2012 meeting was par with national growth, even though wine was also required to deposit $500,000 into and Salyersville, teams of E & T staff made by Representative Keene and consumption has increased. Between 2007 the AHTF from its discretionary account. traveled to the affected areas handing out seconded by Senator Seum. The motion and 2010 the reduction in the number of Over 9,000 units have been created free personal protection equipment and carried by voice vote. Pete McLaughlin, cases sold amounted to $32 million. This with AHTF dollars statewide. The fund urging people to work safely. The personal Vice President and General Sales Manager led to a loss of 63 wholesale distribution fills a gap for low-income families and protection equipment was donated to the of Southern Wine and Spirits of Kentucky, jobs and $2.6 million in lost payroll. provides a way for them to achieve home Labor Cabinet for outreach. welcomed the committee to the facility. When comparing tax rates on alcohol ownership. Additionally, 40 percent of the In response to Representative Nemes’ Alcohol Taxation in Kentucky sales in surrounding states, Kentucky is dollars must be spent in rural areas of the inquiry regarding insurance premium Pat Crowley, representing the Wine among the highest in wine, malt beverages state. The KHC has been able to fund units reductions for employers participating and Spirits Wholesalers of Kentucky, and distilled spirits taxes. States where in 119 of the 120 counties in Kentucky. in the partnerships, Secretary Brown Kentucky Beer Wholesalers Association, beer is produced--such as Colorado and The KHC would like to expand indicated the companies do experience and the Kentucky Malt Beverage Wisconsin--have the lowest tax rates on the eligibility for nonprofit sponsors and premium reductions. Council, and Paul Coomes, PhD, an alcohol. Kentucky has the highest rate developers that utilize housing credits to Representative Farmer asked if a economist formerly with the University of taxation on wine. In California and create affordable multi-family housing. cost/benefit analysis for the partnership of Louisville, presented a video regarding New York, the two highest producers of Housing credits were created by the programs had been performed. Secretary taxation of the malt beverage, wine, and wine, the tax on wine sales is the lowest. federal government in 1986 to provide Brown stated that, while he could not distilled spirits industry in Kentucky. Kentucky accounts for 95 percent of all for affordable multi-family housing. The provide a dollar amount, the programs are The 2007 census of the industry showed the bourbon produced in the world and statute requires the board of directors to saving Kentucky employers money. $871 million in annual sales, with 1,711 accounts for 35 percent of the distilling apply deed restrictions on the sale of a Representative Coursey stated his wholesale distribution jobs and a total jobs. However, taxation of distilled spirits house that has received AHTF dollars. The appreciation to Secretary Brown for his payroll of $70.4 million. The figures do is still heavy at the retail level, sending a KHC funds multiple rehab projects that assistance and accessibility to the members not include jobs at retail distributors such bad signal to distillers. The industry feels cost less than $1,000. It is cumbersome for of the General Assembly. as grocery stores, bars, restaurants, and that another tax increase will create further staff and families receiving the funds to Chair Jenkins informed members specialized stores. In 2011, the industry deterioration in the industry. have a five year deed restriction for small that staff is working with Chair Kerr on collected over $112 million in wholesale In response to a question from projects such as a new roof. arrangements to have the October meeting tax receipts. Kentucky law mandates the Representative Owens, Dan Meyer said Mr. McQuady said KHC would like at Midway College. use of a three-tier system. The first tier is the industry would like to see a roll back to amend KRS Chapter 198A in the KRS.

THE KENTUCKY GENERAL ASSEMBLY 23 KHC wants to remove language regarding development departments cannot handle is made for a moving certificate, the for $40,000. Representative Meeks the unclaimed lottery proceeds and the administrative burden. The Home DOT sends a copy of the application commented that the same competitors’ change reporting requirements since the Program, a block grant program, funds to current certificate holders in the area veto scheme is in place regarding agency no longer receives those monies. rental production, home ownership for comments. This process, along with limousine and taxi companies. Prior Also, the law requires applications for production, rental rehab, home ownership hearings from involved parties in the area, legislation regarding this has not been funds to be reviewed within 60 days. rehab, and tenant-based rental assistance. can take up to a year to complete. Since successful. In response to a question from KHC would like to extend this time to 90 Kentucky is one of the few states that uses 2007, there have been five licenses issued. Representative Palumbo, Mr. Underwood days. The application for funds is called the home funds for all eligible uses. KHC This statute was enacted in 1957. said that because the sale was pending a “consolidated funding application.” It is also receives housing credits from the Raleigh Brunner, owner of Wildcat on the moving company in Lexington, used to apply for all the resources at once. Internal Revenue Service to be used for Moving, told the committee that, since he would prefer not to comment on the Some of these resources could be federal construction of rental houses. his business started two years ago, it has identities of the parties involved. funds that require an environmental review KHC recently received federal funds grown to have 31 employees and six trucks, In response to a question from Senator that could take a longer amount of time. for a program called the unemployment and is doing well in the Central Kentucky Higdon, Mr. Underwood said that based KHC partners are fully supportive of this bridge program. This program provides market. Competitors have complained upon the entries on the internet service, longer application time. Because priorities assistance to persons who have lost their that he does not have the Household Good Craig’s List, there are many companies of the state change over time, KHC would jobs to help them stay in their homes. This Moving Certificate. He has found the that operate using available labor. Most also like to remove the graded priorities. resource has helped over 2,000 families. application process anti-competitive. of these companies are operating without KHC would like to raise fees for In addition to the other source already Joshua Thompson, staff attorney, insurance or bonding and present a risk to recipients who are local non-profit noted, tax exempt revenue bonds with an Pacific Legal Foundation, told the public safety. organizations. Recipients receive a five interest rate spread are used to fund KHC committee that Pacific Legal Foundation Senator Buford commented that percent administrative fee. The KHC operations. is the nation’s oldest and most successful Certificate of Need discriminates against recommends that this be raised to 10 In response to a question from legal foundation dedicated to private minorities. It protects businesses and percent. Representative Koenig, Mr. McQuady property rights, limited government, and not consumers, and it blocks new KHC also requests more flexibility said if fees were raised for local economic liberty. The competitive veto competition. in determining geographic distribution. nonprofits there would be less money scheme that is in place in Kentucky for Senator Schickel told committee Urban areas are listed in statute. In other available for construction. In response household goods moving certificates that there was a tour of the facility that programs administered by KHC, criteria to another question he said the AHTF prevents people such as Mr. Brunner from would begin immediately following the are used to determine urban and rural statute specifically defines the areas pursing his right to earn a living. This conclusion of the meeting. There being eligibility based on incomes in the area that are urban. Urban areas are Ashland, competitive veto does not allow him to no further business to come before the as well as the area’s population. KHC Bowling Green, Covington, Henderson, attend the hearing to present his case to the committee, the meeting was adjourned at would like this criteria-based approach to Hopkinsville, Jefferson County, Fayette administrative board; rather he must hire an 11:10 AM. be added to the statutes instead of simply County, Owensboro and Paducah. In other attorney, and there is a time commitment listing locations. programs, KHC urban area criteria are of multiple years. Mr. Brunner must prove Interim Joint Committee Finally, regarding the notification median incomes of $48,000 or more and that the market it inadequate, that there is on Natural Resources to a community of the construction of a a population of at least 20,000. KHC will a public convenience for his business, and and Environment multi-family project, the proposed change work with the committee on language to that his business is in the public interest. Minutes of the 4th Meeting would allow for transparent notification. define urban versus rural. None of this criteria has been defined, and of the 2012 Interim It would ensure that the CEO of the In response to a question from only the administrative board knows what September 6, 2012 community, whether it is a county judge or Representative Owens about locating Mr. Brunner has to prove at the hearing. Call to Order and Roll Call mayor, is notified prior to the application, multifamily units, Mr. McQuady said the Meanwhile, the competitors can file an The 4th meeting of the Interim as well as after the funding for the project review process includes a market study objection based on vague standards. Joint Committee on Natural Resources is approved. This would also ensure that that takes into account zoning ordinances Mr. Thompson believes that the and Environment was held on Thursday, KHC is in compliance with all fair housing and fair housing laws. The community will competitors’ veto is unconstitutional under September 6, 2012, at 10:30 AM, in the laws. still have control over where multifamily the United States Constitution. Pacific Salato Center of the Department for Fish Senator Higdon said he plans to file units are placed. Legal Foundation and Mr. Brunner have and Wildlife Resources. Senator Brandon legislation regarding all the items Mr. In response to a question from filed suit in federal court in Lexington Smith, Chair, called the meeting to order, McQuady discussed. He added that the Representative Meeks, Mr. McQuady said under the Fourteenth Amendment’s Equal and the secretary called the roll. AHTF board did a good job handling the statute requires the corporation to use Protection, Due Process, and Privileges Present were: allotted money. at least 40 percent of all funds received for or Immunities clauses. The United States Members: Senator Brandon Smith, In response to a question from rural areas. KHC staff will supply further Supreme Court has ruled that laws that Co-Chair; Representative Jim Gooch Jr., Representative Keene, Lisa Baron, KHC information regarding the exact percentage restrict the right to enter into a business Co-Chair; Senators Joe Bowen, Ernie General Counsel, stated that the change in going to rural areas. The Housing Policy must be rationally related to the applicant’s Harris, Ray S. Jones II, Bob Leeper, deed restrictions the agency is requesting Advisory committee has studied census fitness, and capacity to practice the Dorsey Ridley, Johnny Ray Turner, and would secure the dollars that KHC lends data to determine the needs. profession. Mr. Brunner has demonstrated Robin L. Webb; Representatives Hubert to the home. It is separate from the deed Representative Clark said he that he meets the requirements to operate Collins, Tim Couch, Keith Hall, Stan Lee, restrictions involving a development. appreciated the job the KHC does; a moving business in Kentucky. However, Reginald Meeks, Tim Moore, John Short, In response to a question from Senator however, the local government should the competitors’ veto scheme that prevents Kevin Sinnette, Fitz Steele, Jim Stewart Seum, Mr. McQuady said “recipients” not be the only one consulted. The mayor him from earning a living is not rationally III, and Jill York. are either units of local government or or county judge should allow the local related to his profession. The requirement Guests: Mr. Greg Harkenrider and non-profit agencies. Organizations such governing body should have some say to prove inadequacy has no relation to Mr. John Hicks, Office of the State Budget as the Housing Partnership in Louisville in the decision making regarding where health, safety or welfare. The Sixth Circuit Director; Commissioner Tony Wilder, or Frontier Housing in Morehead and Self multifamily units are placed. There should has held that it is not a legitimate state Department for Local Government; Help Housing in Vanceburg are non-profit also be more background checks in place interest to protect established businesses Commissioner Jon Gassett, Department organizations that serve a community and for the companies awarded contracts for against competition. There are also for Fish and Wildlife Resources. are examples non-profits that receive a developments. lawsuits filed in Oregon and Missouri LRC Staff: Tanya Monsanto, Stefan five percent fee under the current system. Wildcat Moving Company against similar certificate of necessity Kasacavage, and Kelly Blevins. KHC is funded through a variety Tom Underwood, State Director, laws. In both states, laws were amended to There being a quorum present, of methods. The only state money National Federation of Independent remove the competitors veto scheme and Representative Collins moved that the received is for the AHTF. The largest Business, said that to become a mover of certificate of necessity before the cases minutes from the August meeting be amount of money the KHC receives household goods in Kentucky a company went to court. approved. Representative Steele seconded comes from the Department of Housing must have a Department of Transportation In response to a question from the motion and the minutes were approved and Urban Development at the federal (DOT) inspection, insurance, and bonding, Representative Westrom, Tom Underwood by voice vote. level. KHC administers Section 8 funds and a Kentucky Household Goods said that certificates can be sold. There Chairman Smith remarked that the for smaller counties whose housing Moving Certificate. When an application is a certificate being sold in Lexington budget revenue forecasts are used by

24 2012 Interim LEGISLATIVE RECORD local government to make their budget Fund (LGEAF). These reductions are Update from Commissioner Jon priorities. Many counties have water principally due to the decrease in coal Gassett, Kentucky Department for Interim Joint Committee projects with federal matches and those severance. Both funds receive a proportion Fish and Wildlife Resources, on Laws on Natural Resources projects are funded by coal severance of the total coal severance receipts paid to Governing Trade in Wildlife and and Environment revenues. Projects with federal matches the Commonwealth. Within the LGEDF, Wildlife Parts Minutes of the 5th Meeting should be funded. The first approach to coal severance is further apportioned for Commissioner Jon Gassett, Kentucky of the 2012 Interim dealing with revenue shortfalls from coal the single county and multi-county funds. Department for Fish and Wildlife Resources October 4, 2012 (KDFWR), described the department’s role severance taxes should be across the board The single county fund receives Call to Order and Roll Call in enforcement explaining the corporate cuts rather than targeted reductions. two-thirds of the total severance going to The 5th meeting of the Interim mission is fisheries, wildlife, and boating Update from the Office of the State LGEDF. For 2012, there is $29 million Joint Committee on Natural Resources safety. The commissioner explained Budget Director regarding trends in to be spent on new projects, and $50 and Environment was held on Thursday, that the officers have the most contact coal severance receipts and the impact million budgeted for 2013. Therefore, for October 4, 2012, at 10:30 AM, in Room with the public. However, conservation on counties and projects FY 2012-2013, with the coal severance 171 of the Capitol Annex. Representative officers also perform duties such as search Mr. Greg Harkenrider, Deputy allocation being less than expected, Jim Gooch Jr., Chair, called the meeting to and rescue, first responder, and water Director of the Office of the State Budget there is about a $20 million difference. order, and the secretary called the roll. survival. Kentucky has one officer per Director (OSBD), testified that there were In 2012, the General Assembly repealed Present were: county on average. The primary authority two consecutive years of increase in coal the law which allocated $19 million to Members: Senator Brandon Smith, for KDFWR enforcement is found under severance tax receipts after the recession. the Workers Compensation Special Fund Co-Chair; Representative Jim Gooch Jr., KRS 150. KDFWR is involved with boat Four or more years have been record which resulted in an additional $4.5 Co-Chair; Senators Joe Bowen, Ernie accident investigations, homeland security receipts for coal severance; however, the million being allocated to LGEDF. Harris, Bob Leeper, Dorsey Ridley, issues, and KDFWR plays a role in the Consensus Forecasting Group expects In response to a question regarding Katie Stine, and Johnny Ray Turner; protection of the state’s bridges, dams, to see a reduction in receipts this year a pending legal case dealing with workers Representatives Tim Couch, Keith Hall, and power plants. and next. Coal prices have dropped, and compensation that might affect coal Stan Lee, Reginald Meeks, Marie Rader, Commissioner Gassett commented OSBD has identified a softening in the severance further, Mr. Hicks responded John Short, Kevin Sinnette, Fitz Steele, that the department has been put into coal market. July 2012 posted a 19 percent that statutorily $19 million of coal and Jim Stewart III. situations such as the discovery of decrease in coal severance receipts, and the severance receipts was combined with an Guests: Mathew Morey, Ph.D., methamphetamine laboratories and the expectation is that in 2013 coal severance assessment. This money was then used to Senior Consultant, Christensen Associates; provision of aid in relief efforts after receipts will decrease by 22.8 percent. pay workers compensation claims. There Laurence Kirsch, Ph.D., Senior Consultant, disasters such as Hurricane Katrina, the In response to a question regarding was a question about whether severance Christensen Associates; and Pam 2009 ice storm. Due to their training and the difference in receipts from one quarter dollars were comingled with other funds. Schneider, Human Resources Manager, equipment, KDFWR enforcement officers to the next, Mr. Harkenrider replied that Part of the case has been settled, but the Rio Tinto Alcan (Alcan Primary Products are asked to work with other enforcement receipts were down 19 percent from the payback requirements have not been Corporation). agencies. Commissioner Gassett described previous quarter in 2011. There have been resolved. It is another step in the law suit. LRC Staff: Stefan Kasacavage, D. the organization of the conservation a few factors affecting demand, and lower Mr. Hicks explained that even Todd Littlefield, and Susan Spoonamore, officers and stated that there is a cap of demand has reduced the price of coal. though the state is losing an estimated Committee Assistant. 165 officers. KDFWR is working to fill Input substitution on energy feedstock, $15 million due to the shortfall in coal A quorum being present, the nineteen vacancies. changes in type of coal being purchased, severance receipts. The state’s obligations September 6, 2012 minutes were approved Commissioner Gassett discussed the and weather patterns affecting demand are expected to be less than expected without objection by voice vote, upon issue of trafficking animal parts, noting and supply have all played a role in the receipts. motion made by Representative Steele KRS 15.4111 requires the use of a certified reduction in coal severance receipts. In In response to a question about and second by Representative Hall. taxidermist to broker sales. Regulation 2013, Kentucky will likely experience a developing benchmarks for revenue Consultants from Christensen and documentation on the front end of the 22.8 percent decline in coal severance. expectations, Mr. Hick responded that Associates Energy Consulting discuss illegal trafficking can increase penalties Compounding that situation, Kentucky benchmarks do exist and are used as part their report on the impact of utility rates for illegal take. Commissioner Gassett realized a 19 percent reduction from the of the forecast. on the aluminum smelting industry in explained how the penalties are assessed earlier quarter this year. In response to a question about debt the Commonwealth. and discussed legislative precedent In response to inquiries on the service being paid from coal severance Mr. Mathew Morey, Ph.D., Senior regarding illegal sale of paddlefish. administration of severance tax, Mr. receipts, Mr. Hicks said that debt service Consultant, and Laurence Kirsch, Ph.D., Harkenrider explained that the company was paid from coal severance in the 2004 Senior Consultant, discussed the energy An emerging issue is catfish in pays the severance tax at the point of sale. or 2006 biennial budget. In response to rate impacts on Kentucky industries. Mr. the Ohio River. The fish are being The reason is that the time of the mining, another question about when the third Morey stated that the report examined commercially targeted by pay lakes in the price that the coal will obtain in the quarter forecast of coal severance revenues issues and policies associated with retaining other states. KDFWR expects that catfish, market is unknown. There is no severance would be available, Mr. Hicks responded Kentucky businesses in five specific th in the future, will need to be regulated paid on stock piles of coal. by October 30 . A task force is needed to manufacturing industries: aluminum like paddlefish. Currently, there are no Mr. Harkenrider explained that the see what can be cut to save single-county smelting, automobile manufacturing, protections in place for the catfish. impact of estimated reductions on the and multi-county money. chemical processing, paper mills, and steel KDFWR made policy budget. Two funds will lose revenue: the Commissioner Tony Wilder, making. Kentucky’s low retail electricity recommendations which included: general fund and single county funds. Department for Local Government rates have attracted manufacturing protecting premier species by statute; The multi-county fund will be affected (DLG), testified that DLG will be looking industries that are particularly dependent allowing trade of inedible parts for legal too. Coal severance is only two to three at quarterly receipts, projects pending, upon electricity. Access to cheap coal- harvest; and setting penalty fee of $1000 percent of total revenue receipts, so the and estimates to determine project fired electricity generation will likely and six months jail time. significance to the state’s overall revenue approvals. DLG will use low projections erode over the coming years with the In response to a question regarding picture is not stark. The overall impact while attempting to fund good projects. implementation of federal standards a flea market raid where 32 counts of on the state budget becomes acute when Currently, DLG is in the black with respect that to regulate the adverse effects of illegal sales were filed, Commissioner there is a total revenue shortfall, meaning to revenues, but being cautious about the the atmospheric emissions of coal-fired Gassett remarked that the incident is being revenues of all types, rather than a future. Projects are based on demand and generation sources. investigated. The officers involved in the shortfall in one specific type of revenue project merit. DLG does not look at the Mr. Morey said that the aluminum raid were taking part in an undercover which is a small percentage of the total amount of coal severance in the county smelter plants in Kentucky, Century operation. No excessive force was taken. state revenue. when reviewing a project request. Aluminum and Alcan, are under financial Regardless of whether the animal was Mr. John Hicks, Deputy Director Senator Smith presented a committee pressure because of the recent decline of killed legally, it is illegal to sell inedible at OSBD, told the committee that there resolution that proposed the formation of the world price of aluminum. Because parts of the animal. is a 31 percent reduction to the Local a working group. Representative Steele electricity is roughly one-third of the cost There being no further business the Government Economic Development Fund moved for the adoption, with a second by of producing aluminum, the smelter plants meeting adjourned at 12:40 pm. (LGEDF) and 13 percent reduction to the Representative Couch; the motion passed are seeking concessions in the prices Local Government Economic Assistance by unanimous voice vote. that they pay to Big Rivers Corporation,

THE KENTUCKY GENERAL ASSEMBLY 25 their electricity supplier. The purpose of average rates paid by smelters. He said once market prices rebound and rise Grimes began the meeting by giving the report was to examine options open that the major industries using aluminum higher than the regulated rate that the the Task Force a review of the May to the Commonwealth for mitigating included air and ground transportation industrial customer has been paying, the 2012 primary. Secretary Grimes used a the adverse impacts of rising electricity manufacturing, paper mills, and building industrial customer cannot be allowed to PowerPoint presentation to cover the topics costs on heavy industry in Kentucky. The material producers. Short-term state return to that regulated rate. Mr. Kirsch of: (1) voting equipment used by each recommendations in the report apply to support could help Alcan get past a bump said that any subsidies given to the county; (2) the number of 2012 primary Kentucky’s industry in general and to the in the road, but assistance should only aluminum industry ultimately are coming precincts; (3) the Kentucky counties aluminum smelters in particular. be given if Alcan could survive without from someone else’s pocket. Therefore, affected by Congressional redistricting Mr. Kirsch explained that the continuing subsidizes over time. In the the General Assembly must determine in the 2012 Regular Session (HB 302) recommendations were informed by two long run, an industry needs to be able how much money in subsidies should be that required precinct changes; (4) voter general principles: Kentucky should spend to stand on its own without government expended per job per year in the aluminum registration statistics; (5) a comparison of its scarce economic development dollars support. The study shows that Big Rivers industry to make taking the money from past Kentucky election turnout percentages in a manner to produce the greatest bang has all the incentives that it needs to figure other sources worth it. and the turnout percentages for the May for the buck; and a short-term fix for any out how discounts might work. Representative Gooch said it was 2012 primary; and (6) a review of issues industry only makes sense if there are good Representative Gooch noted that Big important that Big Rivers and the aluminum in the primary as indicated by calls to the long-term prospects for that particular Rivers was a small co-op whose income smelters work out some agreement. The State Board of Elections or the Attorney industry. The report gave the following was derived from the smelter plants. aluminum industry is important to the General. policy options with recommendations to In response to Senator Bowen, Mr. state and the committee is committed to The primary focus of the presentation address the problems of the aluminum Kirsch said that defining what constitutes finding a way to save the industry. Federal was on the data relating to voter registration industry: “short-term” assistance is be up to the regulations will soon affect other Kentucky and turnout. The Secretary noted that based Electricity price discounts. Customers General Assembly. The Commonwealth companies with higher utility costs, and on past primary turnout results her office receiving discounts should make largest would have to figure out how long it would they too will not be able to compete in the had predicted that approximately 10-12 possible contribution to the utilities’ fixed give aid to the smelter industry, and is in global economy. percent of Kentucky’s registered voters cost recovery. the position to define short-term and what Pam Schneider, Human Resources would participate in the May primary, but Direct access to electricity markets. the conditions will be. If Big Rivers and the Manager, Rio Tinto Alcan, explained that the actual total statewide turnout was The utility should have no obligation to smelters could determine what the short- that the Sebree smelter plant is one of the 13.9 percent of registered voters. She also resume providing generation services to term assistance will be, Big Rivers would most efficient smelters in the world, but stated that within the total turnout statistics those customers who choose direct market still need to recover the costs of providing its short-term viability is at risk because there was a range of 10-40 percent turnout access. service. If rate discounts are given to the of high energy prices. Ms. Schneider said in individual counties and 25 counties that Electricity prices pegged to world smelters, then Big Rivers will have to shift that the aluminum industry is viable for had a turnout greater than 20 percent, with aluminum prices. This is problematic their costs to other customers. the long-term if electricity prices can be counties that had local races on the ballot, because it passes aluminum price risk to In response to Representative fixed. especially circuit clerk races, seeing the utility. Stewart, Mr. Kirsch said that the research In response to Representative Gooch, greater participation numbers. Forgiveness of Big Rivers’ debt. This did not look at the advertising costs of Big Ms. Schneider agreed that, if the Century The Secretary testified that there is not feasible. Rivers to see if money could be saved. plant were to close and stop purchasing were a total of 28 calls to the State Board Big Rivers’ merger or acquisition. In response to Senator Ridley, electricity, utility rates would rise, which of Elections on primary day, with all This would not address the fundamental Mr. Morey stated that the low retail would put the viability of the Rio Tinto calls referred to county attorneys or the aluminum price financial risks, merely electricity prices enjoyed by major Alcan plant at even higher risk. Attorney General when appropriate. An shifts risks. aluminum smelters abroad are the result The meeting was adjourned. additional 31 calls were received by the Economic development support of government support from the countries Attorney General’s fraud hotline. by the Commonwealth. Support should where those smelters are located. Interim Joint Committee Elections Issues for 2013 Regular depend on the smelters standing on their In response to Senator Stine, Mr. on State Government Session own in the long run. Kirsch said that the competitive electric Task Force on Elections, Constitutional Secretary Grimes also discussed a Mitigating the adverse effects of a market price projections were not Amendments, and Intergovernmental few legislative initiatives that were either smelter closing. Mitigation can include: completely accurate because of a recent Affairs considered in the 2012 Regular Session or a) attraction of other industries with federal district court decision in EME Minutes of the 1st Meeting that her office would pursue in the 2013 better long-term financial prospects; b) Homer City Generation vs. EPA. The court of the 2012 Interim Regular Session. job training of former smelter employees; vacated EPA’s latest cross-state pollution August 28, 2012 The Secretary said her office had and c) information services regarding job rule that would have required electric Call to Order and Roll Call advocated for, and the General Assembly opportunities elsewhere in Kentucky. plants to install new pollution controls. The 1st meeting of the Task Force on had passed, HB 293 in the 2012 session, The report also contained the As a result of the decision, it is uncertain Elections, Constitutional Amendments, which established cost saving mechanisms following general policy recommendations what new pollution controls, if any, and Intergovernmental Affairs of the for uncontested special elections for to help strengthen all large industrial electric plants will be adopting and what Interim Joint Committee on State vacant General Assembly seats. The firms: costs they will be passing on to ratepayers. Government was held on Tuesday, August Secretary stated that the new language had Continue to rebalance utility rates Mr. Kirsch expressed no opinion on what 28, 2012, at 1:00 PM, in Room 171 of the not yet been applied because no applicable to reduce or eliminate any existing cross- the courts would end up doing. Senator Capitol Annex. Representative Darryl T. special election had been conducted, but subsidies from industrial customers to Stine stated that the recommendations Owens, Chair, called the meeting to order, that the new measure could save a county commercial and residential customers. were pessimistic, and she is hopeful that and the secretary called the roll. or counties considerable money when Devote greater resources to various levels of government, particularly Present were: conducting such elections in the future. Kentucky’s educational systems, the federal government, would see the Members: Senator Damon Thayer, The Secretary then reviewed a recent including technical training and employee error of their ways and try to work with Co-Chair; Representative Darryl T. lawsuit that her office had filed in Franklin re-training. businesses so that Kentucky can have Owens, Co-Chair; Senators Walter Circuit Court relating to the inability of her Provide greater assistance and reasonable energy prices. Blevins Jr., Jimmy Higdon, R.J. Palmer II, office to comply with the federal Military guidance to businesses on the use of In response to questions from John Schickel, Dan “Malano” Seum, and and Overseas Voter Empowerment Industrial Revenue Bonds to help small- Senator Gibson, Mr. Kirsch said that he Robert Stivers II; Representatives Mike (MOVE) Act of 2009 with the current to-medium-sized businesses invest in doubted that onsite electricity generation Cherry, Larry Clark, Joseph M. Fischer, statutory filing periods for special energy efficiency projects. at Century from natural gas would be Derrick Graham, Mike Harmon, Mary elections. The Secretary stated that under Establish a revolving loan program less expensive than Midwest Independent Lou Marzian, and John Will Stacy. Kentucky law, in KRS 118.770, “When a to support business investment in energy Transmission System Operator (MISO) Guests: Alison Lundergan Grimes, writ of election or proclamation is issued efficiency projects. prices once capital expenditures and the Secretary of State. to fill a vacancy, independent, or political In response to questions from cost of pipeline construction are taken LRC Staff: Judy Fritz, Karen Powell, organization, or political group petitions Representative Lee, Mr. Kirsch stated that into account. Mr. Morey said the report Greg Woosley, and Terisa Roland. and certificates of nomination shall be electricity rates for the two smelter plants encourages industrial customers to be May 2012 Primary filed at least twenty-eight days before in Kentucky were higher than the global allowed to go to the market. However, Secretary of State Alison Lundergan the election.” However, the MOVE Act

26 2012 Interim LEGISLATIVE RECORD requires absentee ballots to be transmitted year will report the health insurance change plans or coverage level, or renew to military and overseas voters within 45 contributions of both employer and or start a healthcare/dependent care FSA. days of the election, and that the timing of Interim Joint Committee employee. This is a federal reporting Open enrollment will be held October the special elections and the filing periods on State Government requirement and is for informational 8-26, with eight benefit fairs being held would not allow the 45 day period to be Minutes of the 3rd Meeting purposes only. The Cabinet is in the throughout the state from October 8-18. met. The lawsuit seeks to enjoin her office of the 2012 Interim process of finalizing aSummary of Benefits Many of the fairs will offer biometric from enforcing the KRS 118.770 filing September 27, 2012 and Coverage, a document required by screenings, free flu shots, and computer period, and an agreed order has been Call to Order and Roll Call healthcare reform to help consumers kiosks for on-spot enrollment. The Benefits submitted to move the deadline up, which The third meeting of the Interim Joint better understand their coverage and Analyzer tool will be provided in paper will correct the issue for this year’s special Committee on State Government was held compare different coverage options. It format and mailed to all KEHP members, elections. The Secretary noted that the on Thursday, September 27, 2012, at 1:00 will be available online and should be with the exception of some members General Assembly needs to amend KRS PM, in Room 154 of the Capitol Annex. helpful to plan members. A new federal of Kentucky Retirement Systems and 118.770 to correct the deadline conflict, Representative Mike Cherry, Chair, called law has reduced the maximum that may Kentucky Teachers’ Retirement System. and that her office would be advocating the meeting to order, and the secretary be contributed annually to a flexible Rate increases and benefit adjustments are for that amendment in the 2013 session. called the roll. spending account (FSA) from $5,000 to relatively minor for the new plan year. Before moving on to additional Present were: $2,500 per participant. Permissible plan When asked by Representative legislative initiatives, the members asked Members: Senator Damon Thayer, design and employee contribution changes Cherry, Mr. Cowles said that KEHP will the Secretary several questions relating Co-Chair; Representative Mike Cherry, for 2013 are limited in order to maintain probably lose grandfathered status in 2014, to the prior agenda item on registration Co-Chair; Senators Walter Blevins Jr., R. grandfathered status. which means the plan will become subject and turnout statistics. A few members J. Palmer II, Dan “Malano” Seum, and Representative Cherry said a to at least an additional $15 million in were concerned that the total number of Robert Stivers II; Representatives Linda constituent told him that a Personnel benefits. The Cabinet is already beginning registered voters reported by the Secretary Belcher, Dwight Butler, Leslie Combs, Cabinet webinar mentioned that to plan for 2014 and the changes that will appeared to result in nearly 100 percent Tim Couch, Joseph Fischer, Danny Ford, emergency room (ER) coverage would be brought by federal healthcare reform voter registration when the under-18 Derrick Graham, Mike Harmon, Melvin apply only to life-threatening events. Mr. Representative Ford asked whether population was subtracted from the state Henley, Martha Jane King, Jimmie Lee, Cowles said that is not correct. There was there has been an analysis relating to usage total population. The Secretary noted that Mary Lou Marzian, Brad Montell, Lonnie a small modification to ER coverage, but of the 90-day maintenance drug benefit at the voter rolls often have a lag time in Napier, Sannie Overly, Darryl Owens, he does not believe there will be a material retail pharmacies versus mail order. Mr. registration statistics because her office Tanya Pullin, Tom Riner, Carl Rollins II, impact on the ER benefit. The criteria for Nelson said pharmacies that participate must both protect a person’s constitutional Bart Rowland, Steven Rudy, Sal Santoro, emergency services will be based on a in the 90-day retail network are required right to vote and comply with a statutory John Will Stacy, John Tilley, Tommy “reasonable layperson standard.” There to offer rates at least as good as mail framework to purge from the voter rolls Turner, Jim Wayne, and Brent Yonts. is no attempt to reduce access. Persons order rates. There are no administrative a registered voter that may have died Guests: Fred Nelson and Joe Cowles, who do not need ER care may still seek fees associated with the 90-day benefit. or otherwise become ineligible to vote Personnel Cabinet. it, but it would not be a covered benefit. Mr. Cowles said he is not aware of any in Kentucky. The members also asked LRC Staff: Kevin Devlin, Alisha Responding to Representative Owens, the analysis but that utilization of the 90-day several general questions relating to the Miller, Karen Powell, Greg Woosley, and speakers explained that for minor injuries benefit is approximately five percent for time periods available to register to vote, Peggy Sciantarelli. it is more cost efficient to seek care from retail pharmacies and only two percent as well as on the costs of elections and the Approval of Minutes urgent treatment centers. The Benefits for mail order. The mail order program ability to recruit, train, and pay precinct The minutes of the August 22 Selection Guide states on page one that receives no favoritism over independent workers to work the polls on primary and meeting were approved without objection, seeking care from a primary care doctor retail pharmacies. election days. upon motion by Representative Rudy. or urgent treatment center may be more When Representative Ford asked The questions on costs were timely Kentucky Employees’ Health Plan appropriate than an ER. whether the Cabinet could provide because the Secretary next noted that her (KEHP) and Wellness Program – 2013 When Representative Rudy asked legislators a side-by-side comparison of office would also propose that the General Plan Year whether the two percent employer 2012 and 2013 plan year changes to share Assembly should consider amending The guest speakers from the Personnel contribution increases for 2013 and 2014 with their constituents, Mr. Nelson said candidate filing fees in the 2013 Regular Cabinet were Fred Nelson, Commissioner, will apply also to cities and counties, Mr. they would. When asked whether retiree Session. The Secretary noted that many Department of Employee Insurance; and Cowles said he is unable to answer because premiums have increased significantly, of Kentucky’s filing fees are lower than Joe Cowles, Deputy Executive Director, the Personnel Cabinet relies on the state Mr. Cowles advised Representative Ford in neighboring states, and that an increase Office of Legal Services, and General budget office to provide that information. that under-65 retirees covered by KEHP in fees would directly increase funds Counsel for KEHP. They provided Mr. Nelson recited the principles and do not pay higher premiums than other available to administer elections – a cost copies of their slide presentation; “KEHP goals for 2013: provide uniform coverage plan members. that is borne by the counties if fees are Benefits Selection Guide”; and an across the Commonwealth; encourage When Representative Napier asked insufficient. Her office would support informational sheet, “Getting Started with wellness and healthy lifestyles; provide questions about Medicare Plan-B and efforts to amend KRS 118.255(1) and (2) HumanaVitality.” preventive care at little or no cost; improve health insurance for himself and other to increase fees for candidates at both the Responding to a question from chronic disease care; educate members retiring legislators, Mr. Cowles explained state and county level for most offices. The Representative Henley, Mr. Cowles about plans that are more appropriate for to him that he would lose KEHP coverage Secretary also testified that the General explained that the loss of grandfathered their health needs; provide plan alternatives upon retirement because he would no Assembly should consider amending KRS status would result in additional costs due that are accessible for retirees; provide longer be an active employee and would 118.255(1) to permit the Secretary of State to plan design mandates of the Affordable a quality PPO option; and strive to hold be Medicare-eligible. He advised him to to waive a second filing fee for a candidate Care Act. KEHP has saved approximately down costs for families and dependents. contact Donna Early [Executive Director, that has previously filed and paid the filing $15 million by retaining grandfathered Goals are to maintain a low cost plan Judicial Form Retirement System] fee for a General Assembly office, when status. option, including a zero dollar plan for regarding eligibility for coverage through redistricting changes the district number Mr. Cowles discussed the impact singles; offer the same four plans as 2012, the legislator/judicial retirement plan. and/or boundaries for a district that of the Commonwealth budget crisis and consumer-driven healthcare options, Representative Lee described elements requires the candidate to withdraw and re- other challenges confronting KEHP in the and a benefits analyzer; keep premiums of the Medicare program and offered to file in the new district. new plan year. He said that two percent competitive with other states; provide meet with Representative Napier later to A copy of the handout summarizing increases in the employer contribution preventative care at little or no cost; discuss them. these topics can be found in the Legislative were budgeted for both plan years 2013 promote the HumanaVitality incentivized Mr. Nelson gave a detailed review Research Commission library. and 2014. Health care inflation continues wellness program; maintain benefits of 2013 premium rates and benefit The business concluded, and the to increase, and there is a continued need comparable to 2012; and maintain medical copays, coinsurance, deductibles, and meeting was adjourned at 2:00 p.m. to improve member tools and education benefits and contribution increases within out-of-pocket limits for the Standard and increase participation in the wellness grandfathered limits. PPO, Maximum Choice, Capitol Choice, and disease management programs. Mr. Nelson said that open enrollment and Optimum PPO plans. He noted that In keeping with federal healthcare for 2013 will be passive—that is, no action employer contributions will increase by reform mandates, W-2s for the 2012 tax is required unless a member wants to two percent. The average increase in

THE KENTUCKY GENERAL ASSEMBLY 27 employee contributions is five percent, but provides seamless integration of a broad adjourned at 2:44 p.m. schedule rather than conform to the rates for single coverage will not change. network of devices, health clubs, coaching schedule of borrowed facilities. The added The Standard PPO plan will continue to services, and providers. The program has Interim Joint space and the new sites potential will allow offer a zero dollar employee contribution also been implemented at Georgetown’s Committee on KSP to have more cadet classes, which will (nonsmoker rate). Sixty-five percent of Toyota Motor Corporation. Business First help increase the number of troopers in the plan members are enrolled in the Optimum Louisville has recognized KEHP as one of Veterans, Military field. With 900 total troopers in Kentucky PPO plan. In order to comply with federal Kentucky’s healthiest employers. Affairs, and Public and only 475 of them on the road, KSP law and retain grandfathered status, Thus far, 12,195 health assessments Protection has fewer troopers in the field than ever coinsurance percentages will not change. have been completed, 21,908 members Minutes of the 4th Meeting before. Walgreens returned to the Express Scripts have achieved bronze status, and over of the 2012 Interim There being no further business, the pharmacy network as of September 15. 2,300 members have taken advantage September 13, 2012 meeting was adjourned. Mr. Cowles said the single coverage of biometric screenings. Rewards are Call to Order and Roll Call annual premium for Optimum PPO is redeemed based on Vitality points earned The 4th meeting of the Interim Capital Planning $753, compared to the national average through completion of a health assessment, Joint Committee on Veterans, Military Advisory Board of $1,002, according to the Kaiser Family Vitality Check, and other goals and Affairs, and Public Protection was held Minutes of the 3rd Meeting Foundation. KEHP’s actuarial consulting activities. Public health departments on Thursday, September 13, 2012, at 1:30 of the 2012 Calendar firm Aon Hewitt reports a gradual shifting are providing Vitality Checks, and the PM, at the Kentucky State Police Training September 21, 2012 of costs from employer to employee in wellness program is being promoted Facility in Frankfort, Kentucky. Senator Call to Order and Roll Call other state employee plans over the past through the Kentucky Department of Jack Westwood, Chair, called the meeting The 3rd meeting of the Capital year. Copays have increased in 30 percent Education. HumanaVitality and Walmart to order, and the secretary called the roll. Planning Advisory Board was held on of states, and deductibles have changed are establishing a partnership to incentivize Present were: Friday, September 21, 2012, at 10:00 AM, significantly in 10 percent of states. There healthful eating by offering a five percent Members: Senator Jack Westwood, on the campus of Bluegrass Community were incentive-oriented design changes in discount on purchase of healthy foods. Co-Chair; Representative Tanya Pullin, and Technical College (Leestown), in 20 percent of states. Representative King said she would like Co-Chair; Senators Joe Bowen, Vernie Lexington, Kentucky. Senator Jack KEHP has received approximately grocers in areas without a Walmart to McGaha, Dennis Parrett, Kathy W. Stein, Westwood, Chair, called the meeting to $95.5 million from the Early Retiree also have the opportunity to partner with and Mike Wilson; Representatives Royce order, and the secretary called the roll. Reinsurance Program (ERRP), established HumanaVitality. W. Adams, Tom Burch, Mike Cherry, Tim Present were: by federal healthcare reform to help After applauding the wellness Couch, Ron Crimm, Robert R. Damron, Members: Senator Jack Westwood, employers with the cost of medical claims program, Representative Belcher said she Myron Dossett, Martha Jane King, Jimmie Co-Chair; Representative Melvin B. for early retirees (age 55-64). Kentucky was contacted by a parent who said her Lee, Donna Mayfield, Tim Moore, Tom Henley, Co-Chair; Representative Ron ranks in the top 10 states relative to the child was prescribed Adderall and that the Riner, Carl Rollins II, Rita Smart, John Crimm; Charles Byers, John Hicks, Bill amount of funds received and will use the required $600 urine test was not covered Tilley, Ben Waide, and Alecia Webb- Hintze, Sherron Jackson, Mary Lassiter, funds to offset KEHP’s and member health by insurance. Mr. Nelson and Mr. Cowles Edgington. James W. Link, Mark Overstreet, and benefit costs. ERRP reimbursement funds said they had not heard similar complaints Guests: Boyce Wells, Operations Carol Palmore. must be used no later than December 31, but would investigate the matter for Division, Lt. Col. Leslie Gannon, Guests testifying before the Board: 2014. The program has ended because the Representative Belcher. Administrative Division Director, Lt. Tom Dr. Augusta Julian, President, Bluegrass funds have been exhausted. When Representative Harmon asked Pyzik, Assistant Academy Commander, Community and Technical College; Tom Mr. Cowles discussed KEHP’s whether HumanaVitality would have and Morgain Sprague, Legal Counsel, Denton, Vice President of Facilities and wellness program, now rebranded as an app for smartphones, Mr. Cowles Kentucky State Police. Administrative Services, Kim Oatman, LivingWell. He said 80 percent of KEHP said he knows of a HumanaFit app and LRC Staff: Erica Warren, Tiffany Chief Facilities Officer, and Dr. Brian costs are attributed to preventable or a pedometer app and will e-mail more Opii, Kristopher Shera, and Rhonda Van Horn, Murray State University; Bob manageable chronic health conditions. information about available apps to Schierer. Wiseman, Vice President for Facilities According to Kaiser, life expectancy Representative Harmon. Minutes Management, Angela Martin, Vice in Kentucky is 76.2 years versus 78.7 Representative Stacy referred to a The committee’s August meeting President for Financial Operations and nationally. Kentucky exceeds the national resolution sponsored by Representatives minutes could not be adopted due to a lack Treasurer, and Steve Byers, Director of average with respect to the percentage of Ford and Hoover in the 2012 Regular of a quorum. The minutes will be presented Government Relations, University of overweight or obese adults and children Session relating to mail-order policies and at the October meeting for adoption. Kentucky. ages 10-17, the percentage of adults who practices and retail pharmacy participation Kentucky State Police Training LRC Staff: Shawn Bowen, Josh smoke or report poor mental health, and in the pharmacy benefits program. He Facility Tour Nacey, and Jennifer Luttrell. the number of deaths due to cancer. KEHP asked whether KEHP has done an analysis The Veterans, Military Affairs, and Welcome and Remarks is dedicated to wellness and providing the of net cost to the plan for purchase of Public Protection committee members Senator Westwood thanked Dr. tools and information to help members maintenance drugs by mail order compared toured the new Kentucky State Police Julian and her staff for hosting the Capital live healthier, longer lives. The worksite to cost at retail pharmacies. Mr. Cowles training facility at 380 Coffee Tree Road, Planning Advisory Board’s last meeting wellness program includes employee care said there has not been an analysis but he Frankfort, Kentucky. Boyce Wells led of the year. Dr. Julian briefed members clinics, a wellness coalition, a healthy believes the cost should be the same for members on a tour of the facility and and guests about the history of Bluegrass meetings initiative, and employer- both. Representative Stacy asked for a discussed the accomplishments made with Community and Technical College sponsored events. Programs targeted cost comparison of the 20 most common it. He discussed the advantages of the (BCTC) and future projects the college for children include Vitality Kids and maintenance drugs, based on the net cost facility’s central location and stated that is planning. BCTC is one of 16 two-year the Alliance for a Healthier Generation. billed to KEHP—and not based on NBC KSP be able to offer training to federal, colleges in the Kentucky Community and Prevention and healthy living programs (National Drug Code) codes. Mr. Cowles state, and local agencies. Mr. Wells Technical College System (KCTCS). The are promoting tobacco cessation, said they would look into that. discussed the benefits of KSP having its college, currently operating in six locations nutrition, physical activity, mental health, Subcommittee Report – Task own administration building, cafeteria in central Kentucky, is constructing a preventative care at little or no cost, Force on Elections, Constitutional and dining facility, multipurpose room new campus on the site of Eastern State and disease management. Free flu shots Amendments, and Intergovernmental for ceremonies and other events, a weight Hospital in Lexington. The Classroom will be available from September 15 to Affairs room, dorms where cadets can be housed, Building - Lexington Community College November 30. In 2011, 73,000 flu shots Representative Darryl Owens, Co- and land for physical training, among - Planning and Design, was authorized were provided. Chair of the Task Force, read a brief many benefits to having the property and in the 2000-2002 Executive Budget with Mr. Cowles gave a detailed overview subcommittee report of the August 28 facilities. $1 million restricted funds. The project of HumanaVitality, a fully incentivized, meeting. Along with Mr. Wells, Lt. Col. Leslie was later transferred from Lexington interactive wellness program that is Adjournment Gannon indicated KSP’s vision for the Community College to KCTCS and the main tool of the wellness plan. With business concluded, the meeting future of the facility beyond the remodeling redesigned to be the first building on the This relatively new program utilizes of the dorms and administration building, Newtown Campus. Subsequent budget behavioral economics to improve health including hopes for an indoor firing range appropriations included $35,741,000 bond with actuarially optimized incentives and so that KSP can dictate its own training funds and restricted fund authorizations

28 2012 Interim LEGISLATIVE RECORD totaling $17,800,000 for three related the May 22 and July 20, 2012 meetings Hicks, Dr. Van Horn stated that Western revenue from the premises (student rents). projects. No restricted funds for the related was made by Representative Henley, Kentucky Community and Technical The fee will be reduced to two percent projects have been identified at this time. seconded by Mr. Jackson, and approved College (WKCTC) does not have a upon execution of the contract to construct The scope of work for Phase I by voice vote. contractual role in this new facility, but 2,500 beds or to manage student housing. includes construction of an approximately Amendment to the 2014-2020 because the purchased land is across the EdR will also receive a minimum nine 90,000-square-foot facility that will house Capital Planning Instructions street from WKCTC, degree programs percent internal rate of return. Beginning labs and faculty/staff offices, general Shawn Bowen, Committee Staff will not be duplicated at the new facility. at the rent commencement date and education classrooms and other auxiliary Administrator for the Board, discussed In response to a question from Mr. continuing throughout the term of the spaces. Additional work will include an amendment to the 2014-2020 Capital Jackson regarding the advantages of lease, EdR shall pay UK base rent in an renovation of the historic Administration Planning Instructions. This change using third-party financing as opposed to amount equal to 10 percent of EdR’s total and Laundry buildings, demolition of applies to capital planning system online the traditional state construction process, annual revenue from the premises. The the remaining structures and cemetery forms for proposed construction projects Mr. Denton said there are two benefits base rent will increase by 2 points to 12 improvements. The new facility is and equipment purchases. Agencies will to financing construction projects in this percent upon execution of the contract for scheduled to be substantially complete by now be required to estimate a proposed manner. Projects are constructed at a faster EdR to construct at least 2,500 beds or to February 2013, and classes are scheduled project’s impact on the agency operating rate and the University will pay less debt manage student housing. The University to begin in August 2013. budget for a five-year period rather than service over a 20-year period. will receive 25 percent of net income in The funding request of $45 million a two-year period. The agency capital each year in which EdR achieves a nine for half of Phase Two for BCTC’s planning instructions and Form SYP-P2 In response to a question from Ms. percent internal rate of return. The initial Newtown Campus was not included in the will be amended to reflect this change. Palmore, Dr. Van Horn replied that the lease term is 50 years, and contains the 2012-14 biennial budget. Phase Two will The capital planning instructions were Paducah site will offer online degree option to renew for successive periods of include construction of three buildings at approved by the Board at its May 22, programs will be offered in the fields 10 and 15 years. an estimated cost of approximately $100 2012, meeting and no further action was of Nursing, Business Administration, In response to questions from million. The buildings will create new required. This change was requested by Social Work, Education, and Computer Representative Henley, Ms. Martin said facilities for nursing and allied health, staff in the Governor’s Office for Policy Information Systems. the cost of capital construction is based science, and mathematics. Additional Management to preserve the uniformity In response to a question from on timing. EdR can construct the project renovations are planned to areas such as between the Kentucky Budgeting System Representative Simpson, Mr. Denton said faster than UK, and while it may not be the the Administration Building’s fourth floor and the Capital Planning System. this is the first time the University has used least expensive method of construction, ballroom to provide space for community The Use of Third-Party Financing third-party financing. Mr. Hicks added the project is completed in a more efficient activities. for Postsecondary Construction that this project is unique because third- manner. In response to a question from Mr. Projects party financing is being used to construct In response to questions from Hintze, Dr. Julian stated that Eastern Murray State University – an academic facility rather than a sports Representative Simpson, Ms. Martin State Hospital should be completely off Construct Paducah Regional Campus facility. replied that the management agreement the Newtown Campus by April 15, 2013. Facility Representative Henley said even with EdR stipulates that housing rental [Eastern State Hospital will move to a new Mr. Denton discussed the Construct though the universities are using private rates will start slightly above the facility located on the Coldstream Campus Paducah Regional Campus Facility funds, the state is still responsible for the University’s premium housing rate. The of the University of Kentucky.] project. The 2010 Extraordinary Session maintenance of these facilities, and this rates cannot be increased more than three In response to a question from HB 1 (2010-12 Budget) authorized should not be the case. Senator Westwood percent for the next two years, and then Senator Westwood regarding the feasibility $17,646,000 in other funds (third-party added that another concern of the General to a maximum of four percent, or the of demolishing versus constructing new financing) for this project. This project Assembly is whether agency bonds affect two-year rolling average increase in the buildings, Dr. Julian replied that BCTC involves the design and construction of a the overall bond rating for the state. consumer price index. The University must and its community partners prepared new regional campus facility on land at the University of Kentucky – Construct approve any proposed rental rate changes. an analysis two years ago in regards to intersection of I-24 and US 62 in Paducah. New Student Housing In addition, EdR must set aside $260 per which buildings at the new site should This property is also known as the Barkley Mr. Wiseman and Ms. Martin bed annually to improve or replace these remain and which buildings should be Woods tract. It was purchased in late discussed the University’s plans to facilities. If EdR defaults on one building, demolished. To preserve the historic 2008 at the recommendation of a task construct new student housing with the University may claim default on all nature of the campus, it was decided the force established to evaluate alternatives third-party financing. The University of the facilities. The University will then Administration and Laundry buildings for establishing an extended campus in of Kentucky (UK) has entered into a have the option to cancel the agreement in should be renovated for adaptive use. the area. The new facility will provide long-term ground lease with Education total and, if there is a financial loss, the The cemetery will also remain on the site. 50,000-square-feet of classroom space, Realty Trust (EdR) to construct, expand University can apply that loss against the Other buildings considered not functional administrative office space and computer and potentially manage student housing. purchase price of the facilities. will be demolished. laboratories, and will support programs The lease is for 2.167 acres located at In response to a question from Ms. In response to a question from Ms. offered through the Commonwealth Virtual the intersection of Huguelet Drive and Palmore, Ms. Martin replied that the Palmore, Dr. Julian stated that the BCTC University. The anticipated completion University Drive. private contractor will pay prevailing Film Studies Program started five years date is December 2013. The first project under the lease wage. ago and is a one-semester program. The A Memorandum of Agreement arrangement, entitled Lease-Purchase New In response to a question from Mr. program promotes awareness of America’s (MOA) was executed by the University and Housing, was authorized in the 2010-2012 Hintze, Ms. Martin replied that four place in the world through the viewing and the McCracken County Fiscal Court, the Executive Budget ($52.5 million, Other dormitories constructed in 2006 still have discussion of films that represent unique City of Paducah, and the Greater Paducah – Third Party Financing). The project debt associated with them. This debt perspectives from around the world. Economic Development Council. Under includes construction of two residence hall cannot be refinanced until 2015. BCTC recently obtained approval to offer the MOA, the University will design, facilities on Haggin Field near the William In response to a question from an Associate of Fine Arts degree, which construct and assume responsibility for T. Young Library. The buildings comprise Representative Henley, Ms. Martin said will expand the program in an effort to operation of the building and grounds, approximately 313,000-gross-square- the variables included in the calculation bring film companies to Kentucky. and the County will issue $10 million of feet and will contain classrooms, faculty of the Consumer Price Index Indicator Resolutions for Retiring Board general obligation bonds to finance the offices and 601 undergraduate beds. The included the cost of energy, labor, and Members project. The projected annual debt service total cost of the project is estimated at supplies. Mr. Hicks and Mr. Hintze read is $790,000, of which the City and the $25.8 million, and construction should be In response to a question from resolutions honoring the Board’s two Co- County will be responsible for $500,000, complete by fall 2013. Senator Westwood, Ms. Martin stated Chairs, Representative Melvin Henley and and the University will pay $290,000. EdR will provide 100 percent equity there are also other buildings on campus, Senator Jack Westwood. Both members In response to a question from Mr. investment in UK’s student housing, Page, Keeneland and the Towers, which will retire from the General Assembly at Hicks, Mr. Denton replied that the City of and no state funding is involved in the have bonds issued against them. the end of the year. The resolutions were Paducah and McCracken County, in their project. Under the terms of the EdR/UK Adjourn adopted by voice vote. past budgets, ensured funds were available management agreement, EdR will receive Senator Westwood stated that the Approval of Minutes for the project. a four percent management fee based on Board will not meet until the 2013 General A motion to approve the minutes of In response to a question from Mr. gross revenues derived from the annual Assembly adjourns. At that time, the focus

THE KENTUCKY GENERAL ASSEMBLY 29 will be the preparation of the 2014-2020 to the Secretary of the Finance and members on Rose Lane on university- working with subcontractors, architects Six-Year Capital Improvements Plan. With Administration Cabinet explaining that owned property. and engineers. He said some components there being no further business, Senator the committee did not take action on In response to a question from of the building could be salvaged and Westwood made a motion to adjourn the the Kentucky Health Benefit Exchange Representative Wayne, Mr. Wiseman said used. meeting. The motion was seconded by Information Technology System project the three projects would be built under the In response to another question from Representative Henley, and the meeting for the Cabinet for Health and Family provisions of prevailing wage. Representative Wayne, Mr. VanHook adjourned at 12:28 P.M. Services. The second letter was from the Senator Buford made a motion said Codell had presented KACo with a Finance Secretary advising the committee to approve the scope increase and two good faith estimate of how much it would Capital Projects that the Cabinet intends to proceed with unbudgeted capital projects. The motion cost to rebuild the project to the same and Bond Oversight the project. was seconded by Representative Rudy specification as ordered in the architect’s Committee Information Items and passed unanimously by roll call vote. original plans for the building. Ms. Culpepper said there were two Reports submitted by the Tim Sturgill, General Counsel for Minutes of the 9th Meeting information items for committee members University of Louisville (UL) KACo, also responded to Representative of the 2012 Interim September 18, 2012 to review. The first was the annual report Larry Owsley, Vice President for Wayne’s question. He said KACo’s Call to Order and Roll Call of bonds outstanding from the Office Business Affairs at UL, presented two original offer of $7.6 million was based The 9th meeting of the Capital of Financial Management. As of June items to the committee. The first item upon work of adjusters to meet KACo’s Projects and Bond Oversight Committee 30, 2012, the Commonwealth had $9.31 was a report of an emergency project to obligation, which is to bring the building was held on Tuesday, September 18, 2012, billion of appropriation-supported debt repair and replace the roofs on three on the back to its level of completion at the time at 1:00 PM, in Room 169 of the Capitol outstanding. The Commonwealth retired university’s buildings due to damage from of the tornado. At that time, the building Annex. Senator Bob Leeper, Chair, called $382 million of appropriation-supported a hail storm on April 28, 2012. The cost was between 60 and 70 percent complete. the meeting to order, and the secretary debt during the last fiscal year and paid estimates total $2,704,000 for the three KACo had some questions about numbers called the roll. $352.4 million in interest. buildings, but the projects have not been from some of the contractors and Present were: The second item was a report from bid yet. No action was required. eventually settled with Morgan County at Members: Senator Bob Leeper, the Administrative Office of the Courts The second item was a new $8.2 million. Co-Chair; Senators Tom Buford, Jared (AOC) on the status of the Court Facility unbudgeted capital project. The $1.1 Tim Conley, Morgan County Judge/ Carpenter, and Julian M. Carroll; Use Allowance Contingency Fund. The million Health Sciences Center Utilities Executive, also provided information on Representatives Robert R. Damron, fund has a balance of $236,600. Ms. Hazard Mitigation project involves the the subject of how the settlement was Steven Rudy, and Jim Wayne. Culpepper said AOC would be requesting replacement of approximately two blocks reached with KACo. He said both Codell Guests: Representative John Will an allocation from the fund later in the of high voltage overhead utility feeders and the architecture/engineering firm of Stacy; Bob Wiseman, Vice President for meeting. with underground lines. The project will Murphy and Graves have continued to Facilities Management, University of Reports submitted by the be funded with $825,000 in federal funds work on the project since the tornado. The Kentucky; Larry Owsley, Vice President University of Kentucky (UK) and $275,000 in university plant funds. structure was insured for $9.5 million, of Business Affairs, University of Bob Wiseman, Vice President for Senator Carroll made a motion to approve but KACo paid out less than that because Louisville; Laurie Dudgeon, Director, Facilities Management at UK, presented the project. The motion was seconded by some materials on site were salvageable. Administrative Office of the Courts; Tim four items to the committee. The first Senator Carpenter and passed unanimously Construction materials for the project Conley, Morgan County Judge/Executive; was a report of consolidation of projects by roll call vote. have gone up in price since the original Jeff VanHook, Construction Manager, with no overall scope increase. UK Report submitted by the bid in 2009. There are also demolition Codell Construction; Tim Sturgill, is merging $1,400,000 of the Repair, Administrative Office of the Courts costs associated with the project and General Counsel, Kentucky Association Upgrade, or Improve Mechanical Systems (AOC) risk to Codell because of the unknowns of Counties; Scott Aubrey, Director, appropriation with the appropriation Laurie Dudgeon presented a associated with the damage sustained. Division of Real Properties; John Hicks, for Renovate Dentistry Class Lab, for request for an allocation in the amount AOC is renting space at an annual cost of Deputy Director, Governor’s Office for a combined scope of $4,700,000. The of $118,700 from the Court Facility Use $100,000. Policy and Management; Katie Smith, combined authority will allow UK to Allowance Contingency Fund. This would In response to another question from Executive Director, Office of Compliance, upgrade the ventilation systems and be an allocation of General Fund money Representative Wayne, Judge/Executive Financial, and Administrative Services for modernize technology used in teaching each year to support a new bond issue Conley explained that Morgan County the Cabinet for Economic Development; dental students. No action was required. for the Morgan County Judicial Center, settled with KACo on the amount of $8.2 Robin Brewer, Financial Analyst, Office The second item was a request for a which was still under construction when million because negotiations had gone on of Financial Management; Rick McQuady, scope increase on an unbudgeted capital it sustained significant structural damage for six months and the county wanted to Chief Executive Officer, Kentucky project. The $2,200,000 scope increase to when a tornado hit West Liberty in March proceed without further delay. Housing Corporation; Lisa Beran, General the Renovate/Upgrade Softball Complex 2012. Ms. Dudgeon said Morgan County’s In response to a comment by Senator Counsel, Kentucky Housing Corporation; project is due to bids exceeding the original settlement with the insurer, Kentucky Carroll, Mr. Sturgill explained that on Mark Offerman, Chief Operating Officer, scope of the project. The new scope for the Association of Counties (KACo), was $1.5 any property insurance claim, KACo is Kentucky Housing Corporation; Chris project is $7,500,000. The increase will be million dollars less than the construction responsible for the first $250,000, and Thieneman, Highview community funded with private donations. estimate to rebuild the damaged facility. anything above that amount is paid by the representative; Jon Bingham; Highview The third item was a request for In response to a question from reinsurance company, Munich Re. community representative; Michael Gross, a new, unbudgeted capital project. Representative Wayne, Ms Dudgeon said Representative Damron stated Project Manager, LDG Multifamily LLC; The project, Renovate/Expand Soccer Morgan County had been paying insurance that he believed the contingency fund Scott Bryan, Chief Operating Officer, Facilities, involves improvements to the premiums while the courthouse was under was established for situations like the LDG Development; Sonja Minch, City locker, shower, and lounge spaces for both construction. one Morgan County experienced and of Hollow Creek; David Steff, President, the men’s and women’s teams, renovations In response to another question from supported the allocation. Apple Valley Homeowners Association. to the training and umpire rooms, new Representative Wayne, Jeff VanHook, Senator Buford echoed LRC Staff: Kristi Culpepper, Josh seating, a new press box, and upgrades Codell Construction, said the reason Representative Damron’s sentiments and Nacey, and Christine Robertson. to the plumbing, electrical, and HVAC extended services fees had increased from said he supported the allocation. Approval of Minutes systems. The project is not expected to $40,000 to $912,308 was due to change Representative Wayne commented Representative Rudy moved to exceed $7 million and will be funded with orders and the increased length of time that he believed that every step of a approve the minutes of the August 21, private funds. In response to a question needed to complete the construction. construction project needed to be fully 2012 meeting. The motion was seconded from Representative Wayne, Mr. Wiseman He said the fees are being calculated in and properly insured so that taxpayers are by Representative Wayne and approved said the private funds are in hand. accordance with Chapter 15 of AOC’s not left filling the gap between insurance by voice vote. The third item was a request for a procedures. payments and rebuild costs. Correspondence Items new, unbudgeted capital project. The $3.6 In response to another question from Senator Carpenter said his Kristi Culpepper, Committee Staff million Construct Farmhouse Fraternity Representative Wayne, Mr. VanHook said understanding of the cost difference had Administrator, said there were two letters project will be funded with private funds Codell has continued to perform work on to do with having to make sure the parts for committee members to review. The and will include a new fraternity house the project since the tornado, including of the structure that are still in place are that will provide housing for 52 fraternity assessing damage, demolition, and safe to use. first was a letter from the committee

30 2012 Interim LEGISLATIVE RECORD Representative Stacy said the motion was seconded by Representative area median income. question from Representative Damron, Mr. damaged structure is an eyesore and Wayne and passed unanimously by roll In response to a question from Thieneman said that in another instance in hazard to the community, and the call vote. Senator Leeper, Rick McQuady, Chief Louisville, the community was successful contingency account was put in place for Project report submitted by the Executive Officer of KHC, said that there in getting the original developer to leave a this type of incident. He appreciated the Finance and Administration Cabinet is a standard review done for all projects project. Another developer came in on the committee’s consideration of the request John Hicks, Deputy Director, seeking KHC assistance. The application project and worked with the community. for the allocation request. Governor’s Office for Policy and and past performance of the requesting In response to another question from In response to a question from Senator Management, presented a request for entities are evaluated and KHC found this Representative Damron, Mr. Bingham Leeper, Judge/Executive Conley said the a scope increase for the Department of project to be in order. said the property is under category three warranty from Codell will be in writing. Military Affairs (DMA). The $750,000 (100 Jon Bingham, a community review. Mr. VanHook said the warranty on the percent federal funds) Construct CERF- representative, and Chris Thieneman, Michael Gross and Scott Bryan with workmanship would be for one year. There P Facility at the Boone National Guard another community representative, asked LDG asked to address the committee. are additional warranties on materials Center project received approval from the to address the committee regarding this Mr. Gross provided the committee with provided by the material manufacturers. committee in August 2011. However, the project. Mr. Thieneman, a property owner background information on LDG. Mr. In response to another question from lowest bid for the project came in $78,300 near the proposed development and real Bryan said LDG seeks to resolve every Senator Leeper, Mr. VanHook said Codell above original budget, requiring a scope estate developer, said the community was issue with their properties. He also told bid the project to 100 percent completion, increase. The additional funding has not against low-income housing being the committee that LDG would continue taking into account what materials were been provided through a Department of built in the proposed location, but did to work with the community to find a still useable at the site. Defense Military Construction Agreement object to the developer in charge of the solution. In response to another question from and through the Air National Guard FY project. Senator Carpenter said he wanted to Senator Leeper, Judge/Executive Conley 2012 Master Cooperative Agreement. Mr. Bingham asked that members of allow LDG to address the issues raised said the difference between the cost to In response to a question from the committee vote “no” on the Frontgate by the community representatives and he rebuild and the insurance settlement was Representative Wayne, Mr. Hicks said Apartment project. He said in 2009 an does not want to change the local decision- based in part on demolition that was done that this unit deals with the response to apartment complex at the same location making process. and in part on because insurance was not chemical and biological issues and this was originally proposed as a market-rate Mr. Bingham replied to Senator purchased to cover the cost associated with facility will house staff and the storage project and was met with strong opposition Carpenter’s comments by saying that at initial demolition at the site. Mr. VanHook needed to support the unit. from the community. Another developer the local level, only Mayor Greg Fisher has added that the job is complex because Senator Carroll made a motion to was sought and a similar project was supported the project, and their councilman work will be completed out of sequence. approve the scope increase. The motion proposed, with similar opposition from is opposed to it. This committee was the In response to a question form was seconded by Senator Buford and the community. The community opposes next step in the process. Mr. Bingham also Senator Leeper, Ms. Dudgeon said that the passed unanimously by roll call vote. the height and number of units proposed expressed concerns with KHC’s scoring contingency fund is an amount of bonding Kentucky Infrastructure Authority for the location and believes additional process. for court facilities. Judge/Executive Grant retail or mixed-use development would Senator Leeper asked Mr. Bingham Conley said that Ross Sinclaire was the Ms. Culpepper said that KIA reported be a better fit. He also said the community to provide to LDG the same material original financial advisor, and the county a $200,000 grant authorized in the 2008- was concerned with developer (LDG) that was provided to the committee. Mr. was working with bond counsel to be sure 2010 budget for Greenhill Water System with the other properties it owns and Bingham agreed to provide the material to they use the appropriate financial advisor in Harlan County. manages. Mr. Bingham said he does LDG. on the new bond issue. Economic Development Bond not believe the community can absorb a Sonja Minch, with the City of Hollow In response to another question from (EDB) Pool Grant project of this size. He said the cost for Creek, addressed the committee and Senator Leeper, Ms. Dudgeon said that Katie Smith, Executive Director, a 3-bedroom apartment at Frontgate is as said she was not opposed to low-income this project would take about half of the Office of Compliance, Financial, and expensive or more expensive than other housing. She also said the community is existing contingency fund. Administrative Services for the Cabinet existing units in the area. He said there seeking a minimum of 25 percent green Senator Carroll made a motion to for Economic Development, presented is bipartisan opposition to the project space, no three-story buildings, and a approve the allocation. The motion was an Economic Development Bond grant as proposed from Representative Larry reduced building height on the Michael seconded by Representative Damron and in the amount of $250,000 to the City of Clark, Representative Kevin Bratcher, and Drive side of the property to one level. passed unanimously by roll call vote. Bowling Green for the benefit of Graham Senator Dan Seum. She said LDG will not reduce the number Lease reports submitted by the Packaging, L.P. The company, which In response to a question from Senator of apartments from 212 to 180 units. Finance and Administration Cabinet designs, manufactures, and sells custom Buford, Mr. Bingham said the community Mr. Gross said he was willing to Scott Aubrey, Director, Division of blow-molded rigid plastic containers, will leaders have met with developers three come back before the committee and not Real Properties, presented two new leases be required to create 48 new, full-time jobs times, once in a community forum setting, seek approval for the bond issue through to the committee for approval. The first for Kentucky residents paying not less and twice in smaller workgroup meetings. the Finance and Administration Cabinet. was for 15,466 square feet of office space than $22 per hour, excluding benefits. The LDG proposed to remove the originally Representative Damron made a at $11.00 per square foot for the Cabinet bond funds will be used to offset the costs planned retail space and spread out the motion that the issue be passed over until for Health and Family Services in Madison associated with the project, which include apartment units but still keep many three- the November committee meeting, or until County. The lease will consolidate space building improvements, new equipment, story buildings. He said he would rather all parties could come to an agreement prior currently leased in two locations and will and a rail spur. Representative Wayne see another developer interested in a more the deadline for the October committee. relieve overcrowding at both currently made a motion to approve the project. The mixed-use plan. The motion was seconded by Senator occupied spaces. The proposed annual motion was seconded by Senator Carroll In response to another question from Carpenter and passed unanimously by roll cost is $170,126. Senator Carpenter made and passed unanimously by roll call vote. Senator Buford, Mr. Bingham said the call vote. a motion to approve the lease. The motion New bond issue-Kentucky Housing developer could go forward without KHC New bond issue-Kentucky Housing was seconded by Senator Carroll and Corporation-Frontgate Apartments financing. However, the community has an Corporation-Hillebrand House passed unanimously by roll call vote. Robin Brewer, Financial Analyst, appeal on file on a separate issue claiming Ms. Brewer presented a second bond The second lease was for 1,638 square Office of Financial Management, presented the developer is not in full compliance issue: Kentucky Housing Corporation feet of office space at $10.00 per square a new bond issue: Kentucky Housing with the land development code. A hearing (KHC) Conduit Multifamily Housing foot and 97,853 square feet of warehouse Corporation (KHC) Conduit Multifamily on the matter is scheduled for October 1st Revenue Bonds (Hillebrand House) space at $5.41 per square foot for the Housing Revenue bonds (Frontgate in Louisville. Series 2012. The gross proceeds will be Department for Libraries and Archives Apartment) Series 2012. The gross In response to a question from $12,630,732 and will be used to acquire and (KDLA) in Franklin County. The lease proceeds are anticipated to be $15,810,000 Representative Damron, Mr. Bingham renovate property at 1235 and 1249 South will allow for consolidation of two existing and will not exceed $17,480,000. Proceeds said the property is owned by a separate Third Street in Louisville. The project is leases, and will allow KDLA to accept from the sale of the conduit bond issue entity but he understands there is an anticipated to include 75 one-bedroom storage requests that it currently denies will be used to construct a new apartment agreement in place under which, upon units and 135 studio units. The property due to lack of space. The proposed annual complex at 7144 Outer Loop in Louisville. approval of funding and approval of the currently serves and will continue to serve cost is $545,765. Representative Rudy The 180-unit complex will be reserved for land development code, ownership would as a multifamily residence for seniors. made a motion to approve the lease. The families earning 60 percent or less of the transfer to LDG. In response to another Representative Wayne made a motion to

THE KENTUCKY GENERAL ASSEMBLY 31 approve the bond issue. The motion was Godwin Onodu, Transportation Cabinet; amend the NECESSITY, FUNCTION, AND to approve the following amendments: to seconded by Senator Carpenter and passed Amy Barker, Department of Corrections; CONFORMITY paragraph and Sections amend Sections 1 and 5 to: incorporate by unanimously by roll call vote. Dawn Bellis, David Moore, Department 1, 3, and 6 to comply with the drafting and reference the required instruction sheet for New bond issue-Kentucky of Housing, Buildings and Construction; formatting requirements of KRS Chapter the application forms. Without objection, Economic Development Finance Karen Chrisman, Governor’s Office of 13A. Without objection, and with agreement and with agreement of the agency, the Authority-Masonic Home of Kentucky Electronic Health Information; Stephanie of the agency, the amendments were amendments were approved. Ms. Brewer presented a third new bond Brammer-Barnes, Van Ingram, Cabinet approved. 307 KAR 4:020. Kentucky Enterprise issue: Kentucky Economic Development for Health and Family Services; Mary GENERAL GOVERNMENT Initiative Act. Finance Authority Healthcare Facilities Sparrow, and Steven Veno, Division of CABINET: Board of Nursing: Board Kentucky Business Investment Revenue and Revenue Refunding bonds, Child Support Investment. 201 KAR 20:230. Renewal of Program Series 2012 (Masonic Homes of Kentucky, LRC Staff: Dave Nicholas, Emily licenses. Carol Borden, executive legal 307 KAR 8:011. Repeal of 307 KAR Inc.). The bond proceeds, not to exceed Caudill, Donna Little, Sarah Amburgey, assistant, represented the board. 8:010. $50,000,000, will finance and refinance the Emily Harkenrider, Karen Howard, Betsy 201 KAR 20:370. Applications for Kentucky Reinvestment Act (KRA) acquisition and construction of healthcare Cupp, and Laura Napier. licensure. 307 KAR 9:010. Application for facilities in Louisville and Shelby County. The Administrative Regulation 201 KAR 20:411. Sexual Assault Kentucky Reinvestment Act Program. Representative Wayne made a motion to Review Subcommittee met on Monday, Nurse Examiner Program standards and JUSTICE AND PUBLIC SAFETY approve the bond issue. The motion was September 17, 2012, and submits this credential requirements. CABINET: Department of Corrections: seconded by Senator Carpenter and passed report: KENTUCKY COMMUNITY AND Office of the Secretary unanimously by roll call vote, with two Administrative Regulations TECHNICAL COLLEGE SYSTEM: 501 KAR 6:230. Little Sandy members abstaining. Reviewed by the Subcommittee: Kentucky Board of Emergency Medical Correctional Complex. Amy Barker, New school bond issue with School FINANCE AND Services: Board assistant general counsel, represented the Facilities Construction Commission ADMINISTRATION CABINET: 202 KAR 7:601. Training, education, department. debt service participation Kentucky Retirement Systems: General and continuing education. Pam Duncan, A motion was made and seconded to Ms. Brewer said there was one new Rules legal counsel; Dr. Sandy Hunter, professor; approve the following amendments: to amend school bond issue with School Facilities 105 KAR 1:400 & E. Federal and Bill Young, director of EMS education, Section 1 and the material incorporated by Construction Commission participation taxation limitation year. Jennifer Jones, represented the board. reference to: (1) correct citations; (2) clarify this month (Franklin County). No tax interim general counsel, represented the In response to a question by Senator provisions; and (3) comply with the drafting increase was required to fund the project. retirement systems. Givens, Ms. Duncan stated that this requirements of KRS Chapter 13A. Without Senator Carroll made a motion to approve In response to a question by Co- administrative regulation had not been objection, and with agreement of the agency, the bond issue. The motion was seconded Chair Bowen, Ms. Jones stated that these updated for a long time. A task force had the amendments were approved. by Representative Wayne and passed administrative regulations did not relate been convened to develop updates to this 501 KAR 6:270. Probation and unanimously by voice vote. to the Pension Task Force or to legislation program. Mr. Young stated that these parole policies and procedures. New school bond issues with 100 pending with the General Assembly. revisions brought this program up-to-date A motion was made and seconded percent locally-funded debt service These administrative regulations were with national standards. Kentucky did to approve the following amendments: participation being amended to comply with federal not previously have an advanced EMT to amend Section 1 and the material Ms. Culpepper said there were three requirements as part of the two (2) program, and the addition of an advanced incorporated by reference to: (1) clarify local school district bond issues with 100 economic recovery acts. Every five (5) EMT program would benefit Kentucky, provisions; and (2) comply with the percent locally-funded debt service were years the retirement system was required especially its smaller communities. Dr. drafting requirements of KRS Chapter reported to the committee this month: to submit determination letters to the IRS. Hunter stated that this administrative 13A. Without objection, and with Jessamine County, Paducah Independent, As part of this round of determination regulation moved Kentucky closer to the agreement of the agency, the amendments and Webster County. Two of the bond issues letters, the retirement system was required board’s goal of national accreditation. This were approved. will be used to fund energy improvements to show that these amendments had been administrative regulation was extensively 501 KAR 6:999. Corrections secured and one will fund the completion of a new made. vetted by stakeholders. policies and procedures. middle school. No action was required. A motion was made and seconded A motion was made and seconded This administrative regulation was With there be no further business, the to approve the following amendments: to approve the following amendments: reviewed and amended, without objection meeting adjourned at 3:09 p.m. to amend the NECESSITY, FUNCTION, (1) to amend the RELATES TO and and with agreement of the agency, by the AND CONFORMITY paragraph and STATUTORY AUTHORITY paragraphs Subcommittee in closed session pursuant Administrative Sections 6 through 11 and 13 through 16 to add statutory citations; (2) to amend to KRS 61.810(1)(k), 61.815(2), and Regulation Review to comply with the drafting and formatting the NECESSITY, FUNCTION, AND 197.025(6). Subcommittee requirements of KRS Chapter 13A. CONFORMITY paragraph to clearly state Asset Forfeiture Without objection, and with agreement the necessity for and function served by 501 KAR 11:011. Repeal of 501 Minutes of the September Meeting September 17, 2012 of the agency, the amendments were this administrative regulation, as required KAR 11:010. Call to Order and Roll Call approved. by KRS 13A.220; (3) to amend Sections TRANSPORTATION CABINET: The September meeting of the 105 KAR 1:420. 401(h) account 1 through 24 to comply with the drafting Department of Vehicle Regulation: Administrative Regulation Review established under 26 USC 401(h). and formatting requirements of KRS Division of Motor Vehicle Licensing: Subcommittee was held on Monday, In response to a question by Chapter 13A; and (4) to amend Section Motor Vehicle Tax September 17, 2012, at 10:30 AM, in Senator Givens, Ms. Jones stated that the 25 to add and revise material incorporated 601 KAR 9:090. Procedures for Room 149 of the Capitol Annex. Senator payment priority option established in this by reference. Without objection, and with inspecting vehicles. Ann DAngelo, Joe Bowen, Chair, called the meeting to administrative regulation was required by agreement of the agency, the amendments assistant general counsel, and Godwin order, and the secretary called the roll. The federal and state law. were approved. Onodu, assistant director, represented the minutes of the August 2012 meeting were A motion was made and seconded to CABINET FOR ECONOMIC division. approved. approve the following amendments: (1) DEVELOPMENT: Kentucky Economic In response to a question by Co-Chair Present were: to amend the NECESSITY, FUNCTION, Development Finance Authority: Bowen, Mr. Onodu stated that candidates Members: Senator Joe Bowen, Co- AND CONFORMITY paragraph to Economic Development for certified inspectors were nominated by Chair; Senators David Givens, Alice Forgy correct statutory citations; and (2) to 306 KAR 1:011. Repeal of 306 KAR local sheriffs. A certified inspector inspected Kerr, and Joey Pendleton; Representatives amend Section 3 to comply with the 1:010, 1:020, 1:030, 1:040, 1:050, 1:060, vehicles for road worthiness and for transfer Robert R. Damron, Danny Ford, and drafting requirements of KRS Chapter 1:070 and 1:090. Janine Coy-Geeslin, into Kentucky from other states. The division Jimmie Lee. 13A. Without objection, and with staff attorney, and Katie Smith, executive conducted the training and certified qualified Guests: Jennifer Jones, Kentucky agreement of the agency, the amendments director, represented the authority. candidates nominated by local sheriffs. Retirement Systems; Carol Borden, Board were approved. Kentucky Economic Development PUBLIC PROTECTION CABINET: of Nursing; Pam Duncan, Dr. Sandy 105 KAR 1:430. General compliance Finance Authority Department of Housing, Buildings and Hunter, Bill Young, Board of EMS; Janine with federal tax laws. 307 KAR 1:005. Applications for Construction: Division of Plumbing: Coy-Geeslin, Katie Smith, Cabinet for A motion was made and seconded Kentucky Incentive Programs. Plumbing to approve the following amendments: to A motion was made and seconded 815 KAR 20:034. Requirements for Economic Development; Ann D’Angelo,

32 2012 Interim LEGISLATIVE RECORD approval of continuing education courses were used by most hospitals already. Ingram, executive director, represented medications for pain management. The and providers. Dawn Bellis, general Representative Lee heartily endorsed the division. testing was expensive. It seemed unfair counsel, and David Moore, director, this administrative regulation, but noted A motion was made and seconded that criminals were screened for drug use at represented the division. that the cabinet still needed to enhance to approve the following amendments: to the state’s expense, while innocent seniors Division of Building Codes confidentiality. The General Assembly amend the STATUTORY AUTHORITY were being charged for unnecessary Enforcement: Electrical needed to continue to support and fund and NECESSITY, FUNCTION, AND screening. Senator Pendleton urged a 815 KAR 35:020. Electrical this program. The cost-savings was only CONFORMITY paragraphs and Section cessation of drug screening pursuant to inspections. Dawn Bellis, general counsel, one issue of concern. Patients who may 3 to specify citations and to comply HB 1 of the Special Session of the General represented the division. not be able to explain previous tests were with the drafting requirements of KRS Assembly. In response to questions by also suffering unnecessary physical pain Chapter 13A. Without objection, and with Subcommittee staff stated that Representative Ford, Ms. Bellis stated that and suffering. agreement of the agency, the amendments administrative regulations pursuant to HB this administrative regulation distinguished In response to questions by Senator were approved. 1 of the Special Session of the General if an electrical inspection was optional Givens, Ms. Chrisman stated that HIPAA Department for Income Support: Assembly were being considered by or mandatory and created consistency regulations developed a definition for Child Support Enforcement: Family the promulgating agencies for public statewide. In particular, there had been “participant.” The definition was very Support comment during the month of September, confusion regarding agricultural poultry restrictive and included stringent security 921 KAR 1:001. Definitions. Mary and the deadline for written comments houses. This administrative regulation provisions, which were now enhanced Sparrow, supervisor, and Steven Veno, was October 1, 2012. These administrative clarified the different types of agricultural as a result of the HITECH Act. Billing deputy commissioner, represented the regulations were filed as both ordinary and poultry houses and which were required to offices could not access personal health division. emergency administrative regulations. be inspected. information. Only treatment providers who A motion was made and seconded It was possible to amend the ordinary, A motion was made and seconded to had proven treatment status could access to approve the following amendments: to but not the emergency, versions of these approve the following amendments: (1) to personal health information. The cabinet amend Section 1 to place the definitions administrative regulations. amend Section 4 to delete requirements had hired an outside security agency in alphabetical order. Without objection, Representative Damron commended already contained in KRS 227.460; (2) to prevent hacking and other security and with agreement of the agency, the the Inspector General for addressing to amend the NECESSITY, FUNCTION, breaches. That vendor had a hacker on amendments were approved. problems pertaining to the drug screening. AND CONFORMITY paragraph to staff to search for system weaknesses, and 921 KAR 1:380. Child Support The Inspector General had done an clearly state the necessity for and function the security monitoring was an on-going Enforcement Program application and admirable job in educating providers, served by this administrative regulation, process. Staff and stakeholders were intergovernmental process. patients, and agencies regarding the as required by KRS 13A.220; and (3) to developing a cost-savings analysis, but A motion was made and seconded enforcement ramifications of these amend Sections 1 through 5 to comply with that data was not yet available, although to approve the following amendments: administrative regulations. Some providers the drafting and formatting requirements there was anecdotal evidence to support to amend Sections 1 and 3 to correct may have misunderstood the requirements of KRS Chapter 13A. Without objection, the hypothesis that the program would citations. Without objection, and with and therefore been overzealous in requiring and with agreement of the agency, the overall be a money saver. Other states agreement of the agency, the amendments the drug screening. Other providers may amendment was approved. and national groups had their own health were approved. have intentionally required unnecessary CABINET FOR HEALTH AND information exchange systems, which 921 KAR 1:400. Establishment, screening to oppose HB 1 of the Special FAMILY SERVICES: Governor’s seemed to be successful. The program review, and modification of child support Session of the General Assembly. It may Office of Electronic Health Information: was currently funded through a grant from and medical support orders. be necessary for the General Assembly Kentucky Health Information Exchange the Office of the National Coordinator for 921 KAR 1:410. Child support to clarify the law; however, the repeal 900 KAR 9:010. Kentucky health Health Information Technology (ONC). collection and enforcement. of HB 1 of the Special Session of the information exchange participation. Karen Sustainability for future costs was being A motion was made and seconded to General Assembly was unnecessary and Chrisman, staff attorney, represented the researched. Medicaid and payors would approve the following amendments: (1) to unanticipated. office. experience savings. amend Sections 2 through 5 to comply with The following administrative In response to a question by Co- Senator Givens stated that the the drafting and formatting requirements regulations were deferred to the October Chair Bowen, Ms. Chrisman stated that cabinet should engage providers in the of KRS Chapter 13A; and (2) to amend 9, 2012, meeting of the Subcommittee: the questions from the August meeting of cost-savings issues. Section 4 to require the cabinet to submit ENERGY AND ENVIRONMENT the Interim Joint Committee on Health and A motion was made and seconded a delinquent obligor’s list to the Attorney CABINET: Public Service Commission: Welfare pertained to the health insurance to approve the following amendments: General. Without objection, and with Utilities exchange program. This administrative (1) to amend the RELATES TO and agreement of the agency, the amendments 807 KAR 5:076. Alternative rate regulation established provisions for the STATUTORY AUTHORITY paragraphs were approved. adjustment procedure for small utilities. health information exchange program, to correct citations; (2) to amend the Other Business: Co-Chair Bowen CABINET FOR HEALTH AND which providers had been using for years. NECESSITY, FUNCTION, AND encouraged all Subcommittee members FAMILY SERVICES: Office of Health This administrative regulation established CONFORMITY paragraph to clearly state to contact staff if an absence from a Policy: Certificate of Need contract requirements commensurate with the necessity for and function served by Subcommittee meeting is expected. 900 KAR 6:085. Implementation current practices. It provided continuity of this administrative regulation, as required Additionally, each member should of outstanding Certificate of Need when health care by facilitating dissemination of by KRS 13A.220; (3) to amend Sections be directly contacted and polled by ownership has changed. health care information among providers. 1, 2, 3, 4, 5, 8, and 9 and the forms Subcommittee staff prior to the meeting The Subcommittee adjourned at The intent was to reduce duplication of incorporated by reference to comply with of attendance expectations. 11:45 a.m. until October 9, 2012. services, especially laboratory testing, the drafting and formatting requirements Senator Pendleton stated that imaging, and immunization. of KRS Chapter 13A; and (4) to amend administrative regulations pursuant to Administrative Representative Damron stated that Section 9 to incorporate by reference HB 1 from the 2012 Special Session Regulation Review this administrative regulation was the the document called “HITSP Summary of the General Assembly were being Subcommittee result of telehealth legislation from the Documents Using HL7 Continuity of misinterpreted, with the result being Minutes of the October Meeting early 2000s and was not part of the federal Care (CCD) component,” version 2.5, that senior citizens were being refused October 9, 2012 Affordable Care Act. Over eighty (80) July 8, 2009. Without objection, and with medication without first being subjected Call to Order and Roll Call providers were already participating. agreement of the agency, the amendments to drug screening. Some were driving The October meeting of the This administrative regulation enhanced were approved. to other states to get their prescriptions, Administrative Regulation Review immunization records to avoid unnecessary Office of Inspector General: Division even though these patients had been on Subcommittee was held on Tuesday, re-immunizations. of Audits and Investigations: Office of these medications for many years. Senator October 9, 2012, at 1:00 PM, in Room Representative Lee stated that Inspector General Pendleton urged those concerned to 149 of the Capitol Annex. Representative this administrative regulation and 906 KAR 1:160 & E. Monitoring submit public comments during the public Johnny Bell, Chair, called the meeting to accompanying program was in its infancy, system for products containing comment period for these administrative order, and the secretary called the roll. but would save money by avoiding ephedrine, pseudoephedrine, or regulations. Some senior citizens were Present were: unnecessary duplicative tests and phenylpropanolamine. Stephanie testing positive for drug use because Members: Senator Joe Bowen, Co- immunizations. Electronic health records Brammer-Barnes, policy analyst, and Van they had been taking legally prescribed Chair; Representative Johnny Bell, Co-

THE KENTUCKY GENERAL ASSEMBLY 33 Chair; Senators David Givens, and Joey CABINET: Kentucky State Board of to approve the following amendments: to to follow all directions on the pesticide Pendleton; Representatives Danny Ford Licensure for Professional Engineers and amend the STATUTORY AUTHORITY label. Mr. Sims and Mr. Quarles stated that and Jimmie Lee. Land Surveyors: Board paragraph and Section 1 to correct most pesticide applications were already Guests: Alicia A. Sneed, Education 201 KAR 18:040. Fees. Jonathan statutory citations. Without objection, compliant with the new requirements. Professional Standards Board; Todd Buckley, general counsel, and David Cox, and with agreement of the agency, the In response to a question by Co- Leatherman, Elizabeth Natter, Kevin executive director, represented the board. amendments were approved. Chair Bowen, Mr. Sims and Mr. Quarles Winstead, Office of Consumer Protection; A motion was made and seconded 201 KAR 44:120. Post residency stated that enforcement application was Jonathan Buckley, David Cox, Board of to approve the following amendments: registration. triggered if pesticides were being applied Licensure for Professional Engineers and (1) to amend Section 1 to comply with A motion was made and seconded to to another owner’s property. Land Surveyors; Angela Evans, Sienna the drafting and formatting requirements approve the following amendments: (1) A motion was made and seconded to Newman; Board of Prosthetics, Orthotics, of KRS Chapter 13A; and (2) to amend to amend the NECESSITY, FUNCTION, approve the following amendments: (1) and Pedorthics; Margaret Everson, Benjy Section 5 to specify an internal cross- AND CONFORMITY paragraph to to amend the RELATES TO paragraph to Kinman, Mark Mangeot; Department reference. Without objection, and with clearly state the necessity for and function include additional relevant citations; (2) to of Fish and Wildlife; Clint Quarles, agreement of the agency, the amendments served by this administrative regulation, amend the TITLE and Section 3 for clarity; Department of Agriculture; Steve Sims, were approved. as required by KRS 13A.220; and (2) (3) to amend Section 4 to correct a citation; Division of Environment Services; Sean 201 KAR 18:192. Continuing to amend Section 1 to comply with the and (4) to amend Sections 2, 3, and 6 to Alteri, Andrea Smith, Division for Air professional development for professional drafting and formatting requirements of comply with the drafting requirements Quality; Frank Goins, DJ Wasson, Maggie land surveyors. KRS Chapter 13A. Without objection, of KRS Chapter 13A. Without objection, Woods; Department of Insurance; Chandra A motion was made and seconded to and with agreement of the agency, the and with agreement of the agency, the Venettozzi and Phyllis Sosa; Cabinet for approve the following amendments: (1) amendments were approved. amendments were approved. Health and Family Services. to amend the RELATES TO paragraph to TOURISM, ARTS AND HERITAGE 302 KAR 29:060. Certification. LRC Staff: Dave Nicholas, Emily include additional relevant citations; (2) to CABINET: Department of Fish and In response to a question by Senator Caudill, Donna Little, Sarah Amburgey, amend Sections 3 and 4 to specify internal Wildlife Resources: Game Givens, Mr. Quarles stated that the Emily Harkenrider, Karen Howard, Betsy cross-references; (3) to amend Sections 5, 301 KAR 2:030. Commercial guide deadline change was intended so that all Cupp, and Laura Napier. 7, and 8 to clarify provisions; (4) to amend license. Margaret Everson, counsel, and certifications would expire on the same The Administrative Regulation Section 10 to incorporate by reference a Benjy Kinman, commissioner’s office, date, even those certifications that had been Review Subcommittee met on Tuesday, required form; and (5) to amend Sections represented the department. on different certification cycles. Only five October 9, 2012, and submits this report: 1 through 10 to comply with the drafting In response to a question by Co-Chair (5) percent of applicants were affected, Administrative Regulations and formatting requirements of KRS Bell, Mr. Kinman stated that requirements and those were affected positively. The Reviewed by the Subcommittee: Chapter 13A. Without objection, and with regarding guide helpers had been amended department had a new computer system EDUCATION PROFESSIONAL agreement of the agency, the amendments in this administrative regulation so that, on that worked better if all certifications were STANDARDS BOARD: Administrative were approved. public land, a helper shall be required to be on the same expiration cycle. certificates Kentucky Board of Prosthetics, certified as a guide with regard to safety, A motion was made and seconded to 16 KAR 3:010. Certification for Orthotics, and Pedorthics: Board CPR training, and other requirements, approve the following amendments: (1) to school superintendent. Alicia A. Sneed, 201 KAR 44:090. Requirements and, on private land, helper requirements amend Sections 1, 4, 5, and 8 to specify director, legal services, represented the for licensure as an orthotist, prosthetist, did not change. an internal cross-reference; (2) to amend board. orthotist-prosthetist, pedorthist, or orthotic A motion was made and seconded Sections 2 and 5 to clarify provisions; (3) A motion was made and seconded fitter on or after January 1, 2013. Angela to approve the following amendments: to to amend Section 9 to update the form to approve the following amendments: Evans, assistant attorney general, and amend Sections 1 through 3 to comply with incorporated by reference; (4) to amend to amend the NECESSITY, FUNCTION, Sienna Newman, chair, represented the the drafting and formatting requirements Sections 1, 2, 4, 5, and 8 to comply with AND CONFORMITY paragraph and board. of KRS Chapter 13A. Without objection, the drafting requirements of KRS Chapter Sections 1 and 2 to comply with the In response to a question by Co- and with agreement of the agency, the 13A; and (5) to amend the structural pest drafting and formatting requirements of Chair Bowen, Ms. Newman stated that amendments were approved. control certification requirements to also KRS Chapter 13A. Without objection, these requirements were not established Hunting and Fishing require applicants to demonstrate practical and with agreement of the agency, the previously because the statute formerly 301 KAR 3:012. Public use of Otter knowledge of environmental conditions. amendments were approved. contained these provisions. The statutory Creek Outdoor Recreation Area. Without objection, and with agreement Assessment provisions expired and authorized that A motion was made and seconded of the agency, the amendments were 16 KAR 6:030. Examination the requirements be established in an to approve the following amendment: approved. prerequisites for principal certification. administrative regulation. to amend Section 2 to allow rather than ENERGY AND ENVIRONMENT A motion was made and seconded In response to a question by Co- require the department to establish an CABINET: Department for Environmental to approve the following amendment: Chair Bell, Ms. Newman stated that these agreement with Camp Piomingo. Without Protection: Division for Air Quality: to amend Section 5 for clarity. Without administrative regulations did not impact objection, and with agreement of the Attainment and Maintenance of the objection, and with agreement of the negatively on practitioners. agency, the amendment was approved. National Ambient Air Quality Standards agency, the amendment was approved. A motion was made and seconded to GENERAL GOVERNMENT 401 KAR 51:001. Definitions for 401 OFFICE OF THE ATTORNEY approve the following amendments: (1) CABINET: Department of Agriculture: KAR Chapter 51. Sean Alteri, assistant GENERAL: Office of Consumer to amend the RELATES TO paragraph Office of Consumer and Environmental director, and Andrea Smith, manager, Protection: Division of Consumer to include additional relevant citations; Protection: Division of Environmental Program Planning Branch, represented Protection and (2) to amend Sections 2 and 3 to Services: Structural Pest Control the division. 40 KAR 2:330. Mold remediation. comply with the drafting and formatting 302 KAR 29:020. General provisions. A motion was made and seconded Todd Leatherman, executive director; requirements of KRS Chapter 13A. Clint Quarles, staff attorney, and Steve to approve the following amendments: Elizabeth Natter, assistant attorney Without objection, and with agreement Sims, manager, Structural Branch, to amend Section 1(207) to comply general; and Kevin Winstead, assistant of the agency, the amendments were represented the division. with the drafting requirements of KRS attorney general, represented the division. approved. In response to questions by Senator Chapter 13A. Without objection, and with A motion was made and seconded 201 KAR 44:100. Inactive status. Givens, Mr. Sims stated that commercial agreement of the agency, the amendments to approve the following amendments: to A motion was made and seconded pesticide application involved the were approved. amend Section 2, to: (1) specify the types to approve the following amendments: application to another owner’s property. 401 KAR 51:017. Prevention of of training, education, and experience to amend Section 1 to comply with the Noncommercial application was pesticide significant deterioration of air quality. required for mold remediation; and (2) drafting and formatting requirements of application to a structure on one’s 401 KAR 51:052. Review of comply with the drafting and formatting KRS Chapter 13A. Without objection, own property. Mr. Quarles stated that new sources in or impacting upon requirements of KRS Chapter 13A. and with agreement of the agency, the government agencies also were required nonattainment areas. Without objection, and with agreement amendments were approved. to keep pesticide application records. This PUBLIC PROTECTION CABINET: of the agency, the amendments were 201 KAR 44:110. Licensure by administrative regulation clarified pesticide Department of Insurance: Agent Licensing approved. endorsement. application recordkeeping requirements. A Division: Agents, Consultants, Solicitors GENERAL GOVERNMENT A motion was made and seconded person applying a pesticide was required and Adjusters

34 2012 Interim LEGISLATIVE RECORD 806 KAR 9:211. Repeal of 806 KAR were approved. background checks required for all new Lovell, Bill Harris, Harry Dadds, William 9:210. Frank Goins, director, Property 900 KAR 6:130. Certificate of Need applicants. Skaggs, Lona Brewer, Amy Monroe, Paul and Casualty Division; D. J. Wasson, criteria for physician exemption. 201 KAR 9:230 & E. Required Gannoe, Kent Whitworth, Trevor Jones, administrative coordinator; and Maggie In response to a question by Senator registration in the KASPER system; legal Winn Turney, Craig Farmer, and David Woods, director of agency licensing, Pendleton, Ms. Venettozzi stated that she requirements for prescribing controlled Richardson. represented the division. would investigate why Cumberland Hall substances in the Commonwealth of LRC Staff: Kim Eisner, Matt Ross, Property and Casualty Division: transferred prospective military patients Kentucky; enforcement. and Becky Brooker. Surplus Lines to Tennessee. Cumberland Hall had 201 KAR 9:240 & E. Emergency A motion was made by Senator Carroll 806 KAR 10:060. Cancelation of twenty (20) unoccupied beds; however, orders and hearings; appeals and other to approve Minutes of the September 2012 financial responsibility. Cumberland Hall stated that those beds proceedings. meeting of the committee. Representative A motion was made and seconded to could not be used for adult or military 201 KAR 9:310 & E. Continuing Housman seconded the motion, which approve the following amendments: (1) patients. Ms. Venettozzi agreed to report medical education. passed without objection. to amend Section 1 to correct a citation; the findings of the investigation to the Board of Nursing: Board DEFERRED ITEM and (2) to amend the NECESSITY, Subcommittee. 201 KAR 20:056 & E. Advanced DEPARTMENT OF WORKPLACE FUNCTION, AND CONFORMITY A motion was made and seconded to practice registered nurse licensure, STANDARDS: paragraph and Section 2 to comply with approve the following amendments: (1) to program requirements, recognition of a University of Kentucky Health, the drafting and formatting requirements amend the RELATES TO paragraph and national certifying organization. 1200002168. Chuck Stribling discussed of KRS Chapter 13A. Without objection, Section 1 to correct statutory citations; 201 KAR 20:161 & E. Investigation the contract with the committee. A motion and with agreement of the agency, the and (2) to amend Sections 1, 3, and 4 to and disposition of complaints. was made by Senator Hornback to consider amendments were approved. comply with the drafting requirements 201 KAR 20:215 & E. Continuing the contract as reviewed. Representative Division of Kentucky Access: Health of KRS Chapter 13A. Without objection, competency requirements. Housman seconded the motion, which Insurance Contracts and with agreement of the agency, the Board of Podiatry: Board passed without objection. 806 KAR 17:540. ICARE Program amendments were approved. 201 KAR 25:011 & E. Approved A motion was made by Senator Carroll high-cost conditions. Department for Aging and schools; examination application; fees. to consider as reviewed, the Personal 806 KAR 17:545. ICARE Program Independent Living: Division of 201 KAR 25:021 & E. Annual Service Contract List, with exception of employer eligibility, application process, Operations Support: Aging Services renewal of licenses, fees. those items selected for further review by and requirements. 910 KAR 1:240. Certification of 201 KAR 25:031 & E. Continuing members of the committee. Representative 806 KAR 17:555. ICARE Program assisted-living communities. Phyllis education. Housman seconded the motion, which requirements. Sosa, assistant director, represented the 201 KAR 25:051 & E. Procedure passed without objection. CABINET FOR HEALTH AND department. for complaints and hearings involving A motion was made by Senator FAMILY SERVICES: Office of Health A motion was made and seconded licensees: temporary suspension. Carroll to consider as reviewed, the Policy: Certificate of Need to approve the following amendments: 201 KAR 25:090 & E. Prescribing Personal Service Contract Amendment 900 KAR 6:060. Timetable for to amend the RELATES TO paragraph and dispensing controlled substances. List, with exception of those items submission of certificate of need and Sections 7 and 8 to comply with the ENERGY AND ENVIRONMENT selected for further review by members of applications. Chandra Venettozzi, health drafting and formatting requirements of CABINET: Public Service Commission: the committee. Representative Housman data administrator, represented the KRS Chapter 13A. Without objection, Utilities seconded the motion, which passed cabinet. and with agreement of the agency, the 807 KAR 5:076. Alternative rate without objection. In response to a question by Co- amendments were approved. adjustment procedure for small utilities. A motion was made by Senator Carroll Chair Bell, Ms. Venettozzi stated that this The following administrative PUBLIC PROTECTION CABINET: to consider as reviewed, the Memoranda administrative regulation authorized the regulations were deferred to the November Department of Housing, Buildings and of Agreement List, with exception of cabinet to reject a CON application if the 13, 2012, meeting of the Subcommittee: Construction: Division of Building Codes those items selected for further review by application was filed more than eighty (80) GENERAL GOVERNMENT Enforcement: Elevator Safety members of the committee. Representative days before the desired public notice. CABINET: Board of Pharmacy: Board 815 KAR 4:030. Elevator contractor Housman seconded the motion, which 900 KAR 6:085. Implementation 201 KAR 2:020 & E. Examination. licensing requirements. passed without objection. of outstanding Certificate of Need when 201 KAR 2:030 & E. License 815 KAR 4:040. Elevator mechanic A motion was made by Senator ownership has changed. transfer. licensing requirements. Carroll to consider as reviewed, the In response to a question by Co- 201 KAR 2:050 & E. Licenses and 815 KAR 4:060. Requirements for Memoranda of Agreement Amendment Chair Bell, Ms. Venettozzi stated that this permits; fees. approval of continuing education courses List, with exception of those items administrative regulation authorized a 201 KAR 2:061 & E. Procedures and providers. selected for further review by members of facility to transfer an unused CON only to followed by the Kentucky Board of The Subcommittee adjourned at 1:40 the committee. Representative Housman a facility purchasing the facility with the Pharmacy in the investigation and hearing p.m. until November 13, 2012. seconded the motion, which passed other existing CONs as well. of complaints. without objection. A motion was made and seconded 201 KAR 2:205 & E. Pharmacist-in- Government Contract THE FOLLOWING PERSONAL to approve the following amendments: charge. Review Committee SERVICE CONTRACTS to amend the TITLE; the NECESSITY, Board of Optometric Examiners: Committee Minutes WERE REVIEWED WITHOUT FUNCTION, AND CONFORMITY Board October 9, 2012 OBJECTION: paragraph; and Sections 1 and 2 to comply 201 KAR 5:010 & E. Application for Call to Order and Roll Call CRIMINAL JUSTICE TRAINING, with the drafting requirements of KRS licensure; endorsement. The Government Contract Review DEPARTMENT OF: Chapter 13A. Without objection, and with 201 KAR 5:030 & E. Annual courses Committee met on Tuesday, October 9, Kentucky School Board Association, agreement of the agency, the amendments of study required. 2012, at 10:00 AM, in Room 171 of the 1300000639. were approved. 201 KAR 5:130 & E. Controlled Capitol Annex. Representative Dennis DEPARTMENT FOR PUBLIC 900 KAR 6:090. Certificate of Need substances. Horlander, Chair, called the meeting to HEALTH: filing, hearing, and show cause hearing. Board of Dentistry: Board order, and the secretary called the roll. Heartland Cares Incorporated, In response to a question by Co- 201 KAR 8:520. Fees and fines. Present were: 1300000889. Chair Bell, Ms. Venettozzi stated that this 201 KAR 8:532 & E. Licensure of Members: Senator Vernie EDUCATION, DEPARTMENT OF: administrative regulation was amended as dentists. McGaha, Co-Chair; Representative Multi, 1300000386. part of a reorganization of requirements. 201 KAR 8:540 & E. Dental practices Dennis Horlander, Co-Chair; Senators FINANCE AND A motion was made and seconded and prescription writing. Julian M. Carroll, Carroll Gibson, and ADMINISTRATION CABINET - to approve the following amendments: Board of Medical Licensure: Board Paul Hornback; Representative Brent DIVISION OF ENGINEERING: to amend Section 4 to: (1) correct a 201 KAR 9:081 & E. Disciplinary Housman. THP Limited Incorporated, citation; and (2) comply with the drafting proceedings. Guests: Chuck Stribling, Earl 1300000504; DDS Engineering PLLC, and formatting requirements of KRS 201 KAR 9:200 & E. National Gresham, Bob Nowell, Larry Arnett, 1300000777; Paladin Incorporated, Chapter 13A. Without objection, and with Practitioner Data Bank reports. Allen Luttrell, Nini Hughes, Virginia 1300000829; Paladin Incorporated, agreement of the agency, the amendments 201 KAR 9:210 & E. Criminal Underwood, Travis Powell, Yvonne 1300000830.

THE KENTUCKY GENERAL ASSEMBLY 35 JUSTICE CABINET: 0700004075; American Engineers Walton Verona Independent Board of GOVERNMENT: Medical Legal Consultants Incorporated, 0700005389; J. M. Education, 1300000052; Boys & Girls Henderson County Fiscal Incorporated, 1300000976. Crawford & Associates Incorporated, Club of Greater Cincinnati, 1300000074; Court, 1300000740; City of Jackson, MILITARY AFFAIRS, 0800010334; HDR Engineering Carlisle County Board of Education, 1300000748; City of Paris, 1300000770; DEPARTMENT OF: Incorporated, 0900012406; HMB 1300000076; Carroll County Board of City of Cumberland, 1300000771; City Quail Unlimited Incorporated, Professional Engineers Incorporated, Education, 1300000078; Floyd County of Danville, 1300000783; Lewis County 1300000877. 0900012535; American Engineers Board of Education, 1300000094; Fiscal Court, 1300000793; Harlan County STATE POLICE, DEPARTMENT Incorporated, 1000003300; Palmer Grayson County Board of Education, Fiscal Court, 1300000800; Webster County OF: Engineering Company, 1000003302; HMB 1300000098; Greenup County Board of Fiscal Court, 1300000804; Webster Law Enforcement Services Professional Engineers Incorporated, Education, 1300000099; Hart County County Fiscal Court, 1300000805; Incorporated, 1300000878. 1000003309; WMB Incorporated, Board of Education, 1300000104; City of Sturgis, 1300000811; City TRANSPORTATION CABINET: 1000003312; QK4, 1100000191; Strand Jackson Independent Board of Education, of Nicholasville, 1300000859; City D.P. Associates Incorporated, Associates Incorporated, 1200000036; 1300000111; Leslie County Board of of Greensburg, 1300000884; Mercer 1300000361; WMB Incorporated, PB Americas Incorporated, 1200000666; Education, 1300000142; Whitley County County Fiscal Court, 1300000886; 1300000794; Palmer Engineering Stantec Consulting Services Incorporated, Board of Education, 1300000177; Eastern City of Lebanon, 1300000887; City Company, 1300000803. 1200001744; Acutecare Etown, PLLC, Kentucky University, 1300000271; of Nicholasville, 1300000905; City of UNIVERSITY OF KENTUCKY: 1200001970; J. M. Crawford & Associates, Fleming County Board of Education, Pikeville, 1300000923. Selge Holdings & Ventures, LLC C-03026967-1; Presnell Associates 1300000352; Kentucky Valley TRANSPORTATION CABINET: d/b/a Wheless Partners Executive Search, Incorporated d/b/a QK4, C-04536741-1; Educational Cooperative, 1300000355; Kentucky Association of Chiefs of K13-164. Presnell Associates Incorporated d/b/a Western Kentucky University Research Police, 1300000737; Kentucky Association UNIVERSITY OF LOUISVILLE: QK4, C-99005372-3; WMB Incorporated, Foundation Incorporated, 1300000432; of Chiefs of Police, 1300000738; Kentucky Pettit Environmental, 13-127; Studio C-99005589-8. University of Louisville Research Crime Prevention Coalition, 1300000739; Kremer Architects Incorporated, 13-130. UNIVERSITY OF KENTUCKY: Foundation, 1300000497; Kentucky Kentucky Association of Chiefs of Police, THE FOLLOWING PERSONAL KPFF Consulting Engineers, K12- State University, 1300000515; Murray 1300000741; Kentucky Crime Prevention SERVICE AMENDMENTS 143-1; Intech Contracting, LLC, K12-144; State University, 1300000517; University Coalition, 1300000742; Kosair Children’s WERE REVIEWED WITHOUT Siva Corrosion Services Incorporated, of Louisville Research Foundation, Hospital, 1300000743; Kosair Children’s OBJECTION: K12-146. 1300000522; Jefferson County Board Hospital, 1300000744. DEPARTMENT FOR THE FOLLOWING of Education, 1300000527; Northern THE FOLLOWING ENVIRONMENTAL PROTECTION: MEMORANDA OF AGREEMENTS Kentucky University Research Foundation, MEMORANDA OF AGREEMENT Amec Environment & Infrastructure, WERE REVIEWED WITHOUT 1300000577; University of Kentucky AMENDMENTS WERE REVIEWED Incorporated, 0800008129; Amec OBJECTION: Research Foundation, 1300000579; WITHOUT OBJECTION: Environment & Infrastructure AGRICULTURE, DEPARTMENT Northern Kentucky University Research AGRICULTURE, DEPARTMENT Incorporated, 0800011004. OF: Foundation, 1300000581; Jefferson OF: DEPARTMENT FOR PUBLIC Kentucky FFA Foundation County Board of Education, 1300000585; Multi, 0900011602; Multi, HEALTH: Incorporated, 1300000863; Kentucky 4-H Jefferson County Board of Education, 0900011666. National Jewish Health, 1200003711; Foundation, 1300000864. 1300000586; Jefferson County Board DEPARTMENT FOR National Jewish Health, 1200003731. CORRECTIONS, DEPARTMENT of Education, 1300000587; University COMMUNITY BASED SERVICES: FINANCE AND OF: of Kentucky, 1300000607; Advanced - Lexington Fayette Urban County ADMINISTRATION CABINET - Kentuckianaworks, 1300000819; Kentucky University of Kentucky, College Government, 1200001514. DIVISION OF ENGINEERING: Louisville Metro Criminal Justice of Education, 1300000627; Western EDUCATION, DEPARTMENT OF: Lucas Schwering Architects, Commission, 1300000870. Kentucky University Research Foundation, Barren County Board of Education, 0700003164; Kersey and Kersey DEPARTMENT FOR 1300000703; Jefferson County Board 1200003135; Morehead State University, Incorporated, 0700003358; Third Rock COMMUNITY BASED SERVICES: of Education, 1300000718; Green River 1300000244; University of Kentucky Consultants, LLC, 0900013200; GRW Madison County Fiscal Court, Regional Education, 1300000726; Green Research Foundation, 1300000498. Engineers Incorporated, 1000000839; 1300000558; Maryhurst Incorporated, River Regional Education, 1300000727; MILITARY AFFAIRS, Brandstetter Carroll Incorporated, 1300000689. Green River Regional Education, DEPARTMENT OF: 1000000845; Amec Environment & DEPARTMENT FOR 1300000728; University of Kentucky Multi, 0800011286; Multi, Infrastructure, 1000002150; Omni ENVIRONMENTAL PROTECTION: Research Foundation, 1300000731; 1000000949; Multi, 1100001405; Multi, Architects, 1100001422; Myers Jolly University of Louisville Research University of Kentucky Research 1200000537. Architects, 1200000117; Architectural Foundation, Incorporated, 1200003698. Foundation, 1300000753; Treasurer NURSING, BOARD OF: Investments, 1200001704; BFMJ DEPARTMENT FOR PUBLIC Todd County Board of Education, University of Louisville, Incorporated, 1200002456; K. Norman HEALTH: 1300000755; Eminence Independent 1300000414. Berry Associates, 1300000110; Voelker University of Louisville Research Board of Education, 1300000758; Scott OFFICE OF THE GOVERNOR, Blackburn Niehoff Architects, C- Foundation, 1200003160. County Board of Education, 1300000765; DEPARTMENT FOR LOCAL 01056705-7. DEPARTMENT OF University of Kentucky Research GOVERNMENT: JUVENILE JUSTICE, ENERGY DEVELOPMENT AND Foundation, 1300000802; Knox County Community Ventures Corporation, DEPARTMENT OF: INDEPENDENCE: Board of Education, 1300000831; Spencer 1000000718. Mid America Health Incorporated, National Energy Education Develop County Board of Education, 1300000833; TRAVEL, DEPARTMENT OF: 1200003413. Project, 1300000879. Fayette County Board of Education, Multi, 1200003751; Multi, KENTUCKY EMPLOYERS EARLY CHILDHOOD ADVISORY 1300000897. 1200003752; Multi, 1200003753; Multi, MUTUAL INSURANCE: COUNCIL: FISH & WILDLIFE, DEPARTMENT 1200003754; Multi, 1200003755; Multi, Multi, 13-CLD-002. Oldham County Health Department, OF: 1200003756; Multi, 1200003757; Multi, MEDICAL LICENSURE, BOARD 1300000661; Eastern Kentucky Child Jackson Purchase Resource 1200003758; Multi, 1200003759. OF: Care Coalition, 1300000757; Kenton Conservation and Development THE FOLLOWING PERSONAL Multi, 1200002107. County Public Library, 1300000809. Foundation, 1300000562. SERVICE CONTRACTS WERE MURRAY STATE UNIVERSITY: EDUCATION, DEPARTMENT OF: JUSTICE CABINET: SELECTED FOR FURTHER Multi, 008-13. University of Kentucky Research Access to Justice Foundation, REVIEW: NORTHERN KENTUCKY Foundation, 1200002224; Madisonville 1300000288. DEPARTMENT FOR MEDICAID UNIVERSITY: Community College, 1200003099; MILITARY AFFAIRS, SERVICES Jeri Geisser, 2013-573-1. Fleming County Board of Education, DEPARTMENT OF: Cognosante, LLC, 1300000766. Bob TRANSPORTATION CABINET: 1200003143; Eastern Kentucky University, Multi, 1300000009; Multi, Nowell and Earl Gresham discussed the J M Crawford and Associates 1200003144; University of Kentucky 1300000592. contract with the committee. A motion Incorporated, 0700003229; HMB Research Foundation, 1200003912; Floyd OFFICE OF THE GOVERNOR, was made by Senator Carroll to consider Professional Engineers Incorporated, County Board of Education, 1300000037; DEPARTMENT FOR LOCAL the contract as reviewed. Representative

36 2012 Interim LEGISLATIVE RECORD Horlander seconded the motion, which SERVICE CONTRACTS FOR $10,000 Family Services. T.J. Carlson, Chief 198,308 members), and state police officers passed with Senator Hornback and AND UNDER WERE SELECTED Investment Officer; Jennifer Jones, participate in the State Police Retirement Representative Housman voting NO. FOR FURTHER REVIEW: Interim General Counsel; Kentucky System (SPRS, 2,172 members). Over DEPARTMENT FOR NATURAL HISTORICAL SOCIETY, Retirement Systems. Robert Barnes, the past 10 years, the number of active RESOURCES KENTUCKY Deputy Executive Secretary of Operations members of KRS has been relatively Multi, 1200003386. Larry Arnett, Lindsay Elizabeth Merritt, and General Counsel; Kevin Carrico, stable. The number of persons receiving Allen Luttrell, and Nini Hughes discussed 1300000717. Kent Whitworth and Director, Investment Management; P.J. benefit payments, however, has been the contract with the committee. A motion Trevor Jones discussed the contract with Kelly, Investment Consultant; Kentucky increasing. The ratio of active members to was made by Senator Carroll to consider the committee. A motion was made by Teachers’ Retirement System. John retired members and their beneficiaries has the contract as reviewed. Senator McGaha Senator McGaha to consider the contract Steffen, Executive Director, Executive declined from 2.5 to 1 in FY 2001 to 1.7 seconded the motion, which passed as reviewed. Senator Carroll seconded the Branch Ethics Commission. to 1 in FY 2011. In FY 2012, 73 percent without objection. motion, which passed without objection. LRC Staff: Greg Hager, Committee of individuals received less than $25,000 EASTERN KENTUCKY Staff Administrator; Chris Hall; Colleen in benefits from KRS. Of the 84,826 total UNIVERSITY EXEMPTION REQUESTS Kennedy; Katie Kirkland; Van Knowles; benefit recipients, 141 individuals received McBrayer, McGinnis, Leslie & TRANSPORTATION CABINET: Lora Littleton; Jean Ann Myatt; William $100,000 or more in benefits. Kirkland, PLLC, 14-022. Virginia The Transportation Cabinet requested Spears; Joel Thomas; Leonard Evans, The Kentucky Teachers’ Retirement Underwood discussed the contract with an exemption from the committee’s Graduate Fellow; Jenna Skop, Graduate System (KTRS) is a state agency that the committee. A motion was made by routine review process for the KYTC’s Fellow; Stella Mountain, Committee provides pension benefits to members Senator Carroll to consider the contract Aviation Economic Development Grant Assistant; Program Review and retired from local school districts and as reviewed. Senator Gibson seconded the Agreements and will provide quarterly Investigations Committee Staff; Rick other KTRS employers such as the motion, which passed without objection. reports. Winn Turney, Craig Farmer, David Graycarek, LRC Staff Economists Office. Kentucky Department of Education. POST SECONDARY EDUCATION, Richardson discussed the exemption with Senator Higdon asked for a moment The system provides medical, disability, COUNCIL ON the committee. A motion was made by of silence in memory of the granddaughter and life insurance benefits for eligible TPR Education, LLC d/b/a The Senator Carroll to grant the exemption of Representative Mills. members. As of June 30, 2011, there Princeton Review, 1300000501. Travis through June 30, 2014. Senator McGaha Approve Minutes for August 14, were nearly 127,000 active members, Powell and Yvonne Lovell discussed the seconded the motion, which passed 2012 inactive members, and retired members contract with the committee. A motion without objection. Upon motion made by Representative and beneficiaries receiving benefits was made by Senator McGaha to consider ENERGY & ENVIRONMENT Simpson and seconded by Representative from KTRS. In 2003, the ratio was 2 the contract as reviewed. Representative CABINET, DEPARTMENT FOR DeCesare, the minutes of the August 14, active members per retired member and Housman seconded the motion, which ENERGY DEVELOPMENT: 2012 meeting were approved by voice beneficiary, but it fell to 1.7 by FY 2011. passed without objection. The Energy and Environment Cabinet vote, without objection. For FY 2012, nearly one-third of benefit UNIVERSITY OF KENTUCKY requested an exemption from the two year Follow-up on Impact Plus recipients received less than $25,000. Baker Donelson Bearman, Caldwell contracting restrictions, specifically for Mr. Friedlander said that the provider Nearly 55 percent of recipients received & Berkowitz, PC, K13-165. Bill Harris the Department for Energy Development that he has testified about in previous $25,001 to $50,000; 135 individuals and Harry Dadds discussed the contract and Independence projects funded through committee meetings is back in the system received benefits of more than $100,000. with the committee. A motion was made DOE federal grants for projects, which as a Michelle P and Impact Plus provider. HB 146 from 2010 added by Senator Carroll to consider the contract by design cannot be completed within a The cabinet continues to look at Impact requirements for the composition of the as reviewed. Senator Gibson seconded two year period. The agency will provide Plus and how improvements can be made KRS investment committee and that two the motion, which passed with Senator quarterly reports. Lona Brewer discussed in the context of managed care. members are the trustees with investment McGaha voting NO. the exemption with the committee. A Senator Higdon asked if the cabinet experience appointed to the board by WESTERN KENTUCKY motion was made by Senator Carroll to is looking at the grievance process. Mr. the governor. The KTRS Investment UNIVERSITY grant the exemption through June 30, Friedlander said that the cabinet is looking Committee has seven members: two lay RuffaloCODY, 121335. William 2014. Senator McGaha seconded the at all processes and how they can be trustees with “investment experience,” Skaggs discussed the contract with motion, which passed without objection. improved. three other trustees, and two investment the committee. A motion was made by With no further business before Senator McGaha said that he has advisors with “investment experience.” Representative Housman to consider the the committee, the meeting adjourned at heard complaints from providers about The investment advisors are nonvoting contract as reviewed. Senator McGaha 11:24 AM. managed care organizations denying members of the committee but still act seconded the motion, which passed services. Mr. Friedlander said that he has as fiduciaries to KTRS. Investment without objection. Program Review also heard complaints about provision of experience is defined in KTRS’s THE FOLLOWING PERSONAL and Investigations Impact Plus services. This is a complex governance manual but it is not defined SERVICE CONTRACTS Committee issue, and the cabinet is working to ensure in statute or administrative regulation. AMENDMENTS WERE SELECTED Minutes that children remain eligible. In comparison, for KRS, investment FOR FURTHER REVIEW: September 13, 2012 Mr. Friedlander complimented the experience is defined in statute. DEPARTMENT OF Call to Order and Roll Call Program Review staff who are working For KRS, investment constraints ENERGY DEVELOPMENT AND The Program Review and on the committee’s study of personal care are primarily imposed by the board of INDEPENDENCE Investigations Committee met on homes. trustees. For KTRS, statute limits the TRK Limited, 1200002718. Lona Thursday, September 13, 2012, at 10:00 Staff Report: Governance, amount of assets internal and external Brewer and Amy Monroe discussed the AM, in Room 131 of the Capitol Annex. Funding, and Investments of the Kentucky managers can invest, and administrative contract with the committee. A motion was Senator Jimmy Higdon, Chair, called the Retirement Systems and the Kentucky regulations limit the types and amounts of made by Senator Carroll to consider the meeting to order, and the secretary called Teachers’ Retirement System investments KTRS can make. contract as reviewed. Senator Hornback the roll. Katie Kirkland, Colleen Kennedy, and seconded the motion, which passed Present were: Rick Graycarek presented the report. Ms. HB 1 from the 2008 Special Session without objection. Members: Senator Jimmy Higdon, Kirkland said that the Kentucky Retirement required the KRS and KTRS boards FINANCE AND Co-Chair; Representative Fitz Steele, Systems (KRS) is a state agency that of trustees to establish formal trustee ADMINISTRATION CABINET - Co-Chair; Senators Tom Buford, Vernie provides retirement and insurance benefits education programs for all board trustees, DIVISION OF ENGINEERING McGaha, Joey Pendleton, Dan “Malano” to primarily state and local government including an orientation program and Wells Engineering, P.S.C., Seum, and Brandon Smith; Representatives retired members and their beneficiaries. annual required training. The systems 1200001198. Paul Gannoe discussed the Dwight D. Butler, Leslie Combs, Jim There are nearly 325,000 total members were also required to incorporate the contract with the committee. A motion was DeCesare, Ruth Ann Palumbo, Rick Rand, in KRS’s three systems. Generally, state trustee education program by reference made by Senator Carroll to consider the and Arnold Simpson. government workers participate in the in administrative regulation. According contract as reviewed. Senator Hornback Legislative Guests: Representatives Kentucky Employees Retirement System to KRS officials, as of May 23, 2012, all seconded the motion, which passed Jim Gooch and Derrick Graham. (KERS, 124,119 members), city and trustees were up to date on their training without objection. Guests: Eric Friedlander, Deputy county workers participate in the County except the newest trustee whose term THE FOLLOWING PERSONAL Secretary, Cabinet for Health and Employees Retirement Systems (CERS, began in April 2012. KTRS reported that

THE KENTUCKY GENERAL ASSEMBLY 37 as of May 30, 2012, all trustees were case law has supported the inviolability of performance. agent would not be allowed by the SEC to current on their training requirements. public pension contracts. For example, the In the report, staff compared KRS’s receive compensation is one of the areas of HB 1 also required the boards of KRS Kentucky Supreme Court said in a 1995 and KTRS’s investment performance to the confusion surrounding placement agents. and KTRS to post specified information case that KERS members “have the right average performance in the Bank of New Staff were unable to determine from any on their system’s websites and make it to the pension benefits they were promised York Mellon-Public Funds benchmark. source an example of an unregulated available to the public. as a result of their employment, at the level KRS’s returns were lower for the 1-, 5-, placement agent. HB 300 from the 2012 Regular promised by the Commonwealth.” and 10-year periods and higher for the 3- Recommendation 3.1 is that the Session added a requirement for each Recent policy changes and several year period. KTRS’s returns were lower Executive Branch Ethics Commission, board to post a searchable database of the lower court legal cases in other states are for the 10-year period but higher for the KRS, and KTRS should confer on the system’s expenditures and a listing of each testing the inviolability of public employee other periods. implementation of the sections of KRS individual employed by the system along pension contracts. For example, in Illinois Staff also identified state public 11A.201 dealing with placement agents with the employee’s salary or wages. The public pension retirees are now required employee and teacher systems comparable and unregulated placement agents. They systems have the option to provide the to contribute to their health insurance to KRS and KTRS. KRS’s returns were should report to the Program Review information through an executive branch coverage. Rhode Island recently made lower than the median for its comparable and Investigations Committee at its website. sweeping changes to its public employee systems for the 1- and 5-year periods, December 2012 meeting on the status Staff’s review of KRS’s website on pension system. The report summarizes about the same over 10 years, and higher of implementation and should specify June 18 determined that each required recent cases in Arizona, Colorado, Florida, for the 3-year period. KTRS’s returns were recommendations for any needed revisions document was accessible. Staff’s review Minnesota, and Rhode Island regarding lower than the median for its comparable to the statute. of KTRS’s website on July 11, 2012, whether public employee pension benefits systems for the 1- and 10-year periods and Senator Buford asked for the number determined that some information was are considered inviolable contracts higher for the 3- and 5-year periods. of retirees and beneficiaries who work for unavailable: the quarterly investment between plan members and government. KTRS was relatively late allocating quasigovernmental entities and the annual performance update for the period ending These cases are illustrative; they are not assets to some riskier asset classes such amount of their pensions. Mr. Graycarek March 31, 2012 was missing a benchmark binding on the Commonwealth. as international equities. KTRS has said that staff had talked to KRS about this for cash. As of July 2012, information was Mr. Graycarek said that as of administrative restraints on the types and and will provide the requested information not available for KTRS on expenditures FY 2011, KRS’s unfunded liability was amounts of assets invested. to the committee. and employees’ salaries. KTRS reported $12 billion, and KTRS’s was $11 billion. Ms. Kennedy said that placement Senator Buford said it appears that that it had sent the required information on Funded ratios are 36 percent for KERS, agents are third parties that are paid a statutory language is vague on what a salaries to the Finance and Administration 63 percent for CERS, 45 percent for SPRS, fee to secure potential investors. A 2011 placement agent is. Mr. Graycarek said that Cabinet in May 2012, and that it had been and 57 percent for KTRS. Reported funded Kentucky Auditor of Public Accounts the report recommends that the interested providing expenditure information to the levels are likely to drop due to recently (APA) report found that a placement agent parties confer on the implementation of Cabinet but that it recently learned that approved changes in accounting standards had “questionable access” to a former the statute. Senator Buford suggested only summary information was being by the Governmental Accounting Standards Chief Information Officer at KRS. The that consideration should be given to posted to the website. KTRS reported that Board (GASB). The primary reasons APA made several recommendations, having placement agents register with the it contacted the cabinet about the need to funded levels are falling is investment discussed in the study, that KRS has since Legislative Branch Ethics Commission post detailed expenditure information. losses and employer contributions being implemented. too. Recommendation 1.1 is that KTRS less than the actuarially recommended At the federal Securities and Senator Buford asked how should ensure that information is posted rates. Investment gains generally account Exchange Commission (SEC) level, investment returns were impacted after online as required by KRS 161.250(4). for approximately 70 percent of annual placement agents fall into the category of the New York State Common Retirement Ms. Kennedy gave an overview additions to a retirement system. Since municipal advisors under the Securities Fund banned the use of placement agents. of the inviolable contract question. In FY 2005, KRS investment returns by Exchange Act of 1934. The 2010 Dodd– Mr. Graycarek said that staff could check general, the modern judicial interpretation year rose by as much as $1.9 billion and Frank Act required all municipal advisors into this. of state pension obligations has been that fell by as much as $2.3 billion. KTRS’s to register with the SEC and to abide by In response to questions from they are contracts between plan members investment returns rose by as much as its rules and regulations. In several states, Representative DeCesare, Mr. Graycarek and the state government. As contracts, $2.8 billion and fell by as much as $2.0 the retirement systems themselves have said that KRS may be able to provide pension obligations are often considered billion. instituted stricter controls on the use and information on how much is paid out by to be constitutionally protected by the US In response to a question from disclosure of placement agents. KRS per year to placement agents. He Constitution’s Contracts Clause and state Representative DeCesare, Mr. Graycarek Other states, like Kentucky, require noted that KTRS’s policy is not to use equivalents. Support is sometimes also said that the unfunded liability included placement agents to register as lobbyists. placement agents. KRS uses them but has found in state statutes and case law. investment losses. The New York State Common Retirement a disclosure policy. He said KRS staff can Constitutional Contract Clauses Mr. Graycarek said that over the Fund has banned the use of placement address what information is required to prohibit a state from passing a law that previous 30-year period KRS averaged agents. be disclosed about the use of placement diminishes or impairs existing public or a 9.47-percent return per year, which House Bill 300 enacted during the agents. private contracts. The US Constitution says was better than its actuarially assumed 2012 Regular Session requires placement “no State shall...pass any...Law impairing benchmark of 7.75. KRS’s long-term agents to register as executive agency In response to a question from the Obligation of Contracts....” Many benchmark is also 7.75 percent, which it lobbyists. As defined in the statute, Representative DeCesare, Ms. Kennedy state constitutions, including Kentucky’s, has outperformed since inception. KTRS placement agent means an individual or said that placement agents are registering have language that mirrors the Federal averaged a 9.7-percent annual return firm who is compensated or hired byan with the Executive Branch Ethics Constitution’s. Some states have language over this period, which was better than employer for the purpose of influencing Commission. in their state constitutions that specifically its actuarially assumed benchmark of 7.5 an executive agency decision regarding Upon motion by Representative declares public employee pensions to percent. KTRS’s long-term benchmark is the investment of the KRS or the KTRS DeCesare and second by Representative be an inviolable contract, New York, for also 7.5 percent but it does not provide a assets. In Kentucky, although a placement Simpson, the report was adopted by roll example. Kentucky’s Constitution does period of evaluation for it. agent is a subcategory of executive call vote. not have such a clause. agency lobbyist, a placement agent can Representative Simpson asked if Inviolability of existing public The return for KRS in FY 2011 was be compensated on a contingency basis; there are any substantial differences pension plans has also been found to 18.96 percent, which was below its 20.34- other types of executive agency lobbyists between the report sent to members prior varying degrees in state statutes and percent fund benchmark. KRS’s 10-year cannot. The statute defines an unregulated to the meeting and what was presented state case law. In Kentucky, the statutes return was approximately the same as placement agent as a placement agent today. Mr. Hager said that staff correct any creating KTRS and each system in KRS its benchmark rate; its 3-year and 5-year who is prohibited by federal securities typos and writing errors in the previous state that it is “an inviolable contract of the returns underperformed benchmarks. laws from receiving compensation for draft. Committee members are notified Commonwealth.” A number of court cases KTRS’s return in FY 2011 was soliciting a government agency. Such a when any substantive revisions are made. around the country have interpreted such 21.6 percent, which was above its 20.9- placement agent must register with the Representative Simpson said that he statutes to mean that a change in retirement percent benchmark. KTRS outperformed Executive Branch Ethics Commission but would like more information on the relative benefits for new employees is not covered its 3-year benchmark, but prior to 2008, cannot be paid on a contingency basis. The contribution of the pension and medical by an inviolable contract. In some states, KTRS did not benchmark overall fund circumstances under which a placement insurance plans to KTRS’s liability. Mr.

38 2012 Interim LEGISLATIVE RECORD Graycarek said that staff could get more KTRS is a charter member of the National Mr. Graycarek said that the increase is return of 9.36 percent since inception information on this. Public Sector Healthcare Roundtable, primarily due to a change in how expenses is above the actuarial assumed rate of Mr. Barnes said that a medical which makes recommendations to are accounted for. 7.75 percent. He asked, given that KRS insurance benefit for KTRS members was Congress about improvements and best Senator Higdon said that he would is meeting this goal, why its liability is established in 1964 on a pay-as-you-go practices. like to know the amounts, not just the so high. Mr. Carlson said that an actuary basis. Beginning in the late 1980s and In response to questions from Senator percentage rates, of the actuarially did a study for KRS. The numbers he will early 1990s, contributions were no longer Buford, Mr. Barnes said that the ratio of required contributions listed in Appendix give from memory may not be exact, but sufficient to pay benefits. In late 1998, active to retired members is 1.7 to 1. He A of the report. about 18 percent of the liability is due KTRS’s actuary approved redirecting said there is no state obligation for health Representative Graham said that to investment underperformance over some contributions from the pension fund care for teachers. Senator Buford referred the report should go to the staff of the recent years, about 20 percent is due to the medical fund. In 2004, KTRS’s to a previous attempt to change healthcare Kentucky Public Pensions Task Force for to unfunded cost-of-living allowances, actuary advised that pension contributions benefits and asked whether this could still distribution to members of the task force. about 5 percent is due to missing other could no longer be redirected without be done. Mr. Barnes said yes. Senator Higdon agreed and said that the actuarial assumptions, 20 percent is due being repaid. In 2005, the General Senator Buford said that some other handouts from today’s meeting to employers not making full actuarially Assembly agreed to continue redirecting teachers qualify for Social Security should also go to staff and members of the required contributions, and about some pension contributions to the medical benefits through other jobs but they do task force. 30 percent is due to foregone investment insurance fund but with the promise not receive the full amount of benefits Representative Simpson asked for returns due to the other reasons. A white to repay. To repay the pension fund, because they are members of a system, clarification that members of the KRS paper on this topic is being presented to the state made payments on a 10-year KTRS, which is not a participant in the board of directors are volunteers and part the investment committee next week. If amortized schedule. In 2010, interested Social Security. In response to a question time. He noted that the executive director the committee approves, he can send a parties developed a shared responsibility from Senator Buford, Mr. Barnes said that is not part of the investment side of the copy to the committee. plan enacted as HB 540, which mandated Congress has been lobbied on this issue, organization. Mr. Carlson replied that Senator Higdon noted that KRS had higher contributions from teachers, school but to his knowledge no one has pursued a Representative Simpson is correct about investment expenses of $57 million in districts, and retired teachers under age 65. challenge in court. the board members. As chief investment FY 2011. In response to a question from The state pays the net cost of new retirees Representative Simpson said that officer, he is responsible for investments. Senator Higdon, Mr. Carlson said that under age 65. the ultimate issue is the funding ratio and He reports to the investment committee there is no requirement for KRS to issue In response to a question from unfunded liability. In response to questions and the board. He reports to the KRS requests for proposals, but KRS often Representative Simpson, Mr. Barnes said from Representative Simpson, Mr. Barnes director for administrative purposes. does issue RFPs. Whether to use an RFP that there is no inviolable contract for said that KTRS will be requesting funds in Mr. Carlson showed the organizational depends on the specific investment being medical insurance. The only requirement the next budget cycle to cover any shortfall chart for KRS and noted that everyone is undertaken. is that members have access to group as recommended by the actuary. directly reachable by email. He described Senator Higdon asked what the insurance coverage. Senator Higdon asked whether a the educational qualifications of the 10 source of health insurance funding is. Ms. Representative Steele asked for a shared responsibility solution could work investment department staff. Together, Jones said that it is prefunded. It is an timetable for the future funding status. Mr. for other state pension systems. Mr. Barnes they have more than 150 years of pension inviolable benefit for those hired prior to Barnes said that it is hard to tell. According said that the KTRS situation is unique in fund experience. The struggle will be to July 1, 2003. to KTRS’s actuary, there should be $1 that medical insurance is not part of an retain the high level of staff. He listed In response to a question from billion in assets in the medical insurance inviolable contract. some of the information available on Representative DeCesare, Mr. Carlson fund within 10 years. Representative Graham referred to the the KRS website and noted that many of said that the difference in assets reported In response to a question from slide in staff’s presentation that compared transparency items required by statute in the Program Review report and today’s Senator Seum, Mr. Barnes said that KTRS’s investment performance to were already being provided. There is presentation is that the amounts were for provision of healthcare through KTRS is other systems. He asked whether KTRS a new self-service program for plan different years. not part of the inviolable contract. The has also underperformed compared to members to use online. He showed a In response to a request from only requirement is that members have other systems that do not participate in chart of asset allocations for the different Representative Simpson, Mr. Carlson access to a group plan, which could be Social Security. Mr. Graycarek referred KRS plans. It has become more important said he would provide a memo detailing paid for by members. to a table in Appendix G of the Program that plans be managed independently. He the elements of the unfunded liability. In Senator McGaha asked whether the Review report. He said that staff identified described investment performance for the response to a question from Representative effects of the statutory and regulatory five systems similar to KTRS in that year to date. Total equity and real estate are Simpson, Mr. Carlson said that the total constraints on KTRS’s investments were most members did not participate in performing below their benchmarks. He liability for health plans is about $10 more negative or positive. Mr. Barnes Social Security. Over a 10-year period, noted that KRS’s real estate investments billion, with about $3 billion in assets. said that KTRS is an outlier among public their investment returns ranged from focus on current cash flow so performance Kentucky health insurance is a little ahead employee retirement systems and has 5.4 percent to 6.5 percent, all higher than below the benchmark is not unexpected. compared to other states because it is less flexibility to change. In response to a KTRS’s return of 4.8 percent. He noted Fixed income, private equity, and cash prefunded. follow-up question from Senator McGaha, that results for some of the systems were investments are performing better than In response to questions from Mr. Barnes said that the regulations are not gross of fees; some were net of fees. their respective benchmarks, as are two Representative Simpson, Mr. Carlson as constraining as they used to be. Representative Butler noted that relatively new investment categories: real said that it is unclear whether the new In response to questions from Appendix C of the report indicates that return and absolute return. Overall, KRS GASB requirements will affect reporting Representative Rand, Mr. Barnes said that for the Kentucky Employees Retirement investments had a return of 11.3 percent of healthcare. He added that calculating the state has repaid in full the amount the System, the average benefit payment is over 3 years, underperformed on a 5-year liability to the employer level will be medical insurance fund borrowed from the much higher for nonhazardous employees basis, returned 6 percent over 10 years, problematic because there are so many pension fund and it is on pace for paying than hazardous. For employees in the and returned 9.36 percent long-term. He employers in KRS. Ms. Jones said that KRS benefits for those under 65. County Employees Retirement System, showed charts to illustrate that KRS has pays a portion of the health care premium In response to a question from the relationship is reversed. He asked why traditionally been managed with a lower for those hired before July 1, 2003, based Representative Rand, Mr. Barnes said this would be the case. Mr. Graycarek said risk profile than is typical of other systems. on numbers of years of service. For those that KTRS is actively involved at the state that KRS would be better able to answer He showed a chart with fiscal and calendar hired after this, a defined contribution level and is a member of the Health Policy this. year returns since 1990. amount per year is paid. Board that establishes benefit levels Senator Higdon asked whether the In response to a question from In response to questions from of the health insurance policies on the 7,102 KRS members who are receiving Representative DeCesare, Mr. Carlson Representative Simpson, Ms. Jones said state health insurance policy. Internally, benefits and are members of two systems said that the benchmarks in the report and that nongovernmental participants in KTRS has been making many changes are getting two checks. Mr. Graycarek said the benchmarks in the presentation do CERS pay the same employer contribution to the medical insurance plan and takes that this is not necessarily the case but that not match because the benchmarks in the rate; all outside entities in KERS came in advantage of available federal programs he can get more detailed information. report are for FY 2011 and the benchmarks by executive order and are paying the same which has resulted in substantial reduction Senator Higdon said the chart on in the presentation are for FY 2012. rate as the state is paying. Representative of unfunded liabilities for the medical page 30 of the report seems to indicate that Simpson asked if anyone has analyzed insurance fund. On the national level, KRS’s expenses are high and increasing. Senator Higdon noted that KRS’s rejecting an entity based on how great a

THE KENTUCKY GENERAL ASSEMBLY 39 burden its employees would be. Ms. Jones were driving forces behind KTRS making Director; Diane Glenn, Medical Support foster homes. said the requirement is that an entity be changes in asset allocations. He discussed Section, Nurse Administrator; Division of All medical care given to children sufficiently governmental based on IRS these changes, including a decrease in the Protection and Permanency, Department in foster care must be documented. Each standards. percentage of investments in fixed income for Community Based Services, Cabinet child is issued a Medical Passport binder, In response to a question from and increases for international stocks, for Health and Family Services. Eric which is a repository of the child’s health Representative Simpson, Ms. Jones said real estate, alternative investments, and Friedlander, Deputy Secretary; Beth Jurek, information, ongoing procedures, and KRS is in litigation with the Kentucky opportunistic credit. The majority of Executive Director, Office of Policy and appointments. The foster parents are River Community Care, which fired its alternative investments are in private Budget; Cabinet for Health and Family responsible for updating and maintaining employees and rehired them through a equity, which has become more attractive Services. the Medical Passport. Concerns have been new company. after the financial crisis. LRC Staff: Greg Hager, Committee raised that this may not be the best way of In response to a question from Staff Administrator; Chris Hall; Colleen ensuring that all necessary care is taking Senator Higdon, Ms. Jones said that the Mr. Kelly said that KTRS’s returns Kennedy; Lora Littleton; Jean Ann place, or of allowing all team members inquiry into KRS by the US Securities net of fees had outperformed a broad Myatt; William Spears; Joel Thomas; involved, including physicians, necessary and Exchange Commission is ongoing, universe of public funds for FY 2012 Leonard Evans, Graduate Fellow; Jenna access to the child’s medical history. and the SEC has interviewed some KRS (2.2 percent versus 0.7 percent), over 3 Skop, Graduate Fellow; Stella Mountain, Recommendation 1.1 is that an employees and board members. years (11.9 percent versus 11.5 percent), Committee Assistant. electronic system should be created In response to a question from and over 5 years (2.4 percent versus Approve Minutes for September to replace the paper medical passport. Senator McGaha, Mr. Carlson said that 1.5 percent). 13, 2012 Policies and protocols for accessing the any fees paid to placement agents are paid In response to a question from Upon motion made by Senator information should be developed. by investment managers. When placement Representative Simpson, Mr. Carrico said Buford and seconded by Senator Higdon, An Individual Health Plan must be agents are used, the details must be provided that KTRS does not have credit default the minutes of the September 13, 2012 created within 30 days after a child receives to the investment committee. KRS has not swaps, but they would be classified as meeting were approved by voice vote, a medically fragile designation. The plan made an investment with a placement fixed income or opportunistic credit. without objection. assesses the actions needed to address the agent in 3 years. KRS requires detailed Representative DeCesare said that Staff Report: Medically Fragile child’s medical needs, as well as a follow- disclosure from investment firm members he would like to know what percentage of Foster Children up plan. It is to be updated every 6 months. prior to any investment recommendation, those who have the option of participating Colleen Kennedy, Leonard Evans, Based on Program Review staff’s analysis and this information is provided to the in the KTRS plan or another plan choose and Joel Thomas presented the report. Ms. of the May 2012 cohort of 116 medically KRS investment committee. KTRS. He asked whether KTRS would Kennedy said that medically fragile foster fragile cases, an Individual Health Plan In response to a question from offer an optional plan for anyone outside children are those with medical conditions was created within the 30-day regulatory Senator McGaha, Mr. Carlson said that universities. Mr. Barnes said that he will that require special care and monitoring. time period in about 55 percent of cases. the Auditor of Public Accounts report consult with the actuary and provide a They need to be placed in foster homes In 13 percent of cases, it took longer than indicated that there is no correlation response. that meet specified requirements with 90 days to create the plan. In September in fees paid to placement agents and In response to a question from foster parents who have received special 2012, the cabinet revised a Standard of KRS’s performance. Based on the latest Representative DeCesare, Mr. Steffen said training. The number varies over time, Practice to address this issue. information, investments with placement that it is unknown how many placement but as of May 2012, 116 foster children The DCBS Medical Support Section agents involved have outperformed those agents have registered with the Executive in Kentucky were designated medically nurse administrator is responsible for without but the difference is minimal. Branch Ethics Commission. Placement fragile. The designation is based on coordinating input from all team members Senator McGaha asked for agents are just another type of executive the level of care the foster parent must and foster parents, and collecting all clarification that KTRS does not use agency lobbyists who have to register. By provide, not specified diagnoses. information and data related to medically placement agents. Mr. Barnes said that statute, the ethics commission registers A specialized medically fragile child fragile children. If the nurse administrator this is correct, it does not. lobbyists, but it does not track types requires an even higher level of care. is involved in another case or is away, Senator McGaha said that not using of lobbyists. Representative DeCesare The home must have a foster parent who there is no backup. The nurse administrator placement agents seems to remove some of said that when the retirement systems is a health professional. This category does not have managerial authority over the complexity of managing investments. report back to the committee, it may be represents a very small percentage of other team members and must gather Mr. Carlson noted that placement agents recommended that a way be added to be children in the medically fragile system. important data for record-keeping by are involved in more than 50 percent of able to identify placement agents. Mr. The Division of Protection and personally contacting others in the system private equity deals in the US. The KRS Steffen said that his concern with HB 300 Permanency of the Department for individually. will consider investments with placement is that lobbyists who are placement agents Community Based Services (DCBS) Recommendation 1.2 is that the agents but with guidelines. can be paid on a contingency basis. administers Kentucky’s foster program. cabinet should consider adding staff to the Mr. Barnes said that for almost all The meeting adjourned at 12:48 pm. A Medical Support Section nurse DCBS Medical Support Section to increase teachers, KTRS is the only source of administrator oversees the medically support and timeliness of the coordination retirement benefits, not Social Security. Program Review fragile portion. The nurse administrator needed to maintain the medically fragile He described the high quality of the KTRS and Investigations makes the final decision as to whether system’s foster homes. Board of Trustees and how important this Committee a child is to be designated medically Mr. Thomas said that medically is. He described the actuarial status of fragile. DCBS also has a caseworker fragile foster parents must meet the same Minutes KTRS’s pension and medical benefit funds. October 11, 2012 in each of its nine regions who doubles requirements as regular foster parents and The pension fund, which is 57.4 percent Call to Order and Roll Call as a medically fragile liaison between must have solid references and performance funded, has assets of $14.9 billion and The Program Review and the social worker, the foster family, and records. Both DCBS and private agency liabilities of $26 billion, for an unfunded Investigations Committee met on the nurse administrator. When a child medically fragile foster parents must take liability of $11 billion. The medical fund, Thursday, October 11, 2012, at 10:00 receives a medically fragile designation, a DCBS-sponsored training. Medically which is 8.6 percent funded, has assets AM, in Room 131 of the Capitol Annex. nurse consultant with the Commission for fragile training is composed of three of $295 million and liabilities of $3.4 Representative Fitz Steele, Chair, called Children with Special Health Care Needs modules: the 2-hour online prerequisite billion, for an unfunded liability of $3.1 the meeting to order, and the secretary is notified and becomes part of the child’s course, the Join Hands Together program, billion. He mentioned HB 540, which he called the roll. team. and CPR/First Aid. Join Hands Together described earlier in answering a question. Present were: DCBS has agreements with a number is offered five times a year. It educates He described the qualifications of KTRS’s Members: Senator Jimmy Higdon, of private placement agencies that are used and certifies DCBS resource homes, two independent investment advisors, Co-Chair; Representative Fitz Steele, if a DCBS home is unavailable or a child private agency foster families, and respite Bevis Longstreth and George M. Philip, Co-Chair; Senators Tom Buford, Vernie requires care unavailable in a DCBS home. providers. The medically fragile training who serve on the investment committee. McGaha, Joey Pendleton, Dan “Malano” Nearly one-half of foster placements are program is conducted by the University of Mr. Carrico showed an organizational Seum, and Brandon Smith; Representatives within DCBS homes, and more than one- Kentucky’s Training Resource Center. chart for KTRS’s investment staff. KTRS Leslie Combs, Jim DeCesare, Terry Mills, third with private agency homes. Once the initial 24-hour medically has broadened and deepened its staff in Ruth Ann Palumbo, Rick Rand, and Ms. Kennedy described the process fragile training is complete, foster recent years. A change in KTRS leadership Arnold Simpson. by which children are designated medically parents are then required to maintain in 2004 and the economic crisis in 2008 fragile and the types of medically fragile their medically fragile certification Guests: James Grace, Assistant

40 2012 Interim LEGISLATIVE RECORD through the completion of 16 hours of Security Act authorizes federal funding costs but are not reimbursed for travel, Ms. Glenn said Type I diabetes is additional annual training and CPR/First through the Department of Health and lodging, and food. becoming more common as a reason for Aid recertification. Annual training is Human Services for foster care services. In response to a question from being medically fragile. Being medically offered twice a year with two make-up This is the largest nonstate source of Senator McGaha, Mr. Thomas said that it fragile is traumatic for children and sessions. Training sessions are presented funding for medically fragile foster care is preferred that a respite care provider is parents. It is important that children be by medical professionals who volunteer services. Other sources of funding include someone from the foster parent’s family. prepared to cope as adults. their time. Training expenses incurred by the Supplemental Security Income (SSI) Senator McGaha said that getting Mr. Grace, referring to Senator DCBS foster parents may be reimbursed program and child support payments respite care is difficult; the travel and Buford’s earlier question about autism, up to $200 per year. from the birth home. In FY 2010, federal lodging costs related to training are said that unless an autistic child has Respite care is temporary care for Title IV-E funding covered 32 percent of burdensome. Mr. Thomas said that related physical health needs, the child medically fragile foster children to provide Kentucky’s medically fragile costs. Other DCBS is working on revising the training would not be designated as medically relief for foster parents. Reimbursements restricted funds, such as SSI, covered 29 schedule to have more online training to fragile. Behavioral issues would be dealt for respite care are calculated at the level percent. Kentucky general funds covered reduce the in-person training to one day. with through other programs. of care per diem rate. Medically fragile the remaining 39 percent. Senator Buford said that autism was Ms. Glenn expressed appreciation homes receive 3 days per month of respite Because there is no distinct budget not among the diagnoses of medically for Commission for Children with Special care, and specialized medically fragile allocation for medically fragile foster care fragile shown in the presentation. Ms. Health Care Needs nurses. homes receive 4 days per month. cost or services, training and administrative Kennedy said that no children who were In response to a question from Senator Respite care providers must complete costs for medically fragile foster care medically fragile as of May 2012 were Seum, Ms. Glenn said that the cabinet the initial medically fragile training could not be separated from the general listed with this diagnosis. The diagnoses is always recruiting and is considering program but are exempt from annual foster care population. It is known that for the current group of children could be targeting retired people as potential foster retraining sessions because they receive more than $117,000 has been allocated different. parents. training specific to their medically fragile for Fiscal Year 2013 to the University of In response to a question from Senator Representative Steele said that he child. Lodging and food expenses are not Kentucky’s Training Resource Center Buford, Ms. Kennedy said that Program would like a phone number to be provided reimbursed for prospective respite care dedicated to its annual training program Review staff did not estimate the cost of to committee members for situations providers. Although the current training for specialized medically fragile foster additional staff for the Medical Support like that described by Representative structure is not conducive to recruiting families. Section as covered in Recommendation Palumbo. respite care providers, DCBS is revising In FY 2010, federal Title IV-E 1.2. It is possible that a part-time staff In response to a question from the 2-day schedule to include a larger funding was nearly $928,000; Kentucky’s person would be enough. The concern is Senator McGaha about Recommendation online component. match was nearly $376,000. Title IV- that there is no backup when the nurse 1.2, Mr. Grace said there is discussion As of May 2012, the two most E reimbursements and state matches in administrator is called away. about providing administrative support for common diagnoses of medically fragile Fiscal Years 2011 and 2012 are lower Senator Buford said that there is the nurse administrator. It is not a question foster children were diabetes (23 percent at this time but will be adjusted as more probably a fixed amount of funding in this of needing help with decision making. of children) and epilepsy (20 percent). Of reimbursements are added retroactively. area. Adding staff could reduce funding Senator McGaha asked whether these 116 medically fragile children, 29 Ms. Kennedy said that the forms for provision of services. having tiered decision making affects had been classified as medically fragile for submitted to Title IV-E are reimbursable Representative Palumbo described responding to medical emergencies. Mr. 6 months or less, 25 for 7 to 12 months, based on correct boxes being checked a situation in Fayette County in which Grace said that medical decisions are made and 21 for 13 to 24 months. The median by the court. Before a child is placed neighbors have questioned foster parenting in the field. It is the process of designating length of time classified as medically in foster care, there must be a showing skills in a home. Representative Palumbo a child as medically fragile that is tiered. fragile was 14 months. that reasonable efforts were made to has called about this herself. There is Senator McGaha asked if there is Mr. Evans said that foster care keep the child in the home. This must concern that the parents are misusing any anecdotal evidence of problems due medical costs are paid through Medicaid. be documented in the court order. Some reimbursement money. She asked if foster to lack to staff. Ms. Glenn said lack of A medically fragile designation does not Title IV-E reimbursement claims are filed parents are required to turn in receipts. support can be an issue when she is on affect Medicaid funding. Medically fragile without the correct court documentation Ms. Kennedy said that they could in some vacation. Mr. Grace said that he can fill per diem payments cover the cost of in this regard. Reasonable efforts may circumstances, but that cabinet staff could in to help with the designation process. housing, food, clothing, daily supervision, not have been made, or the court itself better address this question. Ms. Glenn said that timeliness is an issue school supplies, incidentals, liability may not have checked the box on the Representative Palumbo asked when deciding what kind of foster home insurance, and local travel. The medically court order. The court order must also how is it determined what the child is needed. fragile maintenance per diem rates are $40 document, by means of checked boxes, support payment is from birth parents. Senator McGaha asked whether an to $48. The specialized medically fragile that it is contrary to the child’s welfare to Ms. Kennedy said that birth parents who autistic child who suffers seizures and rates are $56 or $91, depending on the remain in the home and that it is in the best do not meet the deprivation standard for requires injections would be designated training of resource parents and the level interest of the child to be removed from foster care, but do not have the resources as medically fragile. Ms. Glenn said of care provided. the home. Not checking the boxes is often to care for a medically fragile child, can that autism in itself would not result in Private placement agencies are a procedural oversight by the court. still provide financial support. medically fragile status, but if there were community-based, mostly nonprofit In response to a question from seizures or the child was diabetic, the child organizations providing resource home In FY 2010, the payments that Senator Seum, Ms. Kennedy said that a would be medically fragile. care for medically fragile foster children. were not reimbursable under Title IV-E medically fragile case could be initiated Senator McGaha asked if it was a Facilities of placement include licensed because of these procedural errors totaled by a caseworker or a physician, or a failure of the courts that the appropriate resource homes and residential child caring $370,316. The amounts not reimbursed caseworker could notice conditions boxes are not checked on a form to qualify facilities such as pediatric convalescent for these reasons have decreased to about meriting medically fragile status for a for Title IV-E funding. Mr. Grace said centers. It is DCBS policy to use private $225,000 in FY 2011 and $104,000 in child already in foster care. that there are a number of factors. AOC placement agencies as a resource of last FY 2012. Cabinet officials note that this In response to a question from [Administrative Office of the Courts] resort. A level 3, 4, or 5 is assigned to each is being addressed on an ongoing basis Senator Seum, Ms. Kennedy said that and DCBS [Department for Community foster child in private placement. Each via education programs for judges, court courts decide if a child enters the foster Based Services] have worked to revise the elevation in the level of care represents an personnel, social workers, and others system but that courts do not designate a forms, which are now electronic. He said elevation in the level of supervision needed involved in the process. child as medically fragile. this problem occurs in a small percentage in the home. Level 5 includes children with Senator McGaha said that the of cases. emotional and behavioral disorders. In FY report indicated that foster parents were Mr. Grace said that the medically Upon motion by Senator Higdon and 2010, 22 children were designated a level reimbursed for training but that the fragile designation was established years second by Senator McGaha, the report 5 private placement, more than double the presentation said that they “may” be ago to provide for the care of foster was adopted by roll call vote. number of placements in levels 4 and 3. reimbursed. Mr. Thomas said that they are children with extreme medical needs. The Staff Report: Implementation Funding for the medically fragile reimbursed. nurse administrator makes the designation Status of Four Laws Related to Health program comes from the same sources In response to a question from as medically fragile. The hope is that the and Welfare as funding for the general foster care Senator McGaha, Mr. Thomas said that designation for a child is short term but it Christopher Hall, Lora Littleton, population. Title IV, part E of the Social respite care providers do not pay training can be long term. and Jean Ann Myatt presented the report.

THE KENTUCKY GENERAL ASSEMBLY 41 Mr. Hall said that HB 501, enacted in same program authorized by SB 23. Friedlander said that what happened in Director of the Kentucky Office of Drug 2003, directs the chairperson of the 144 Ms. Jurek said that Program Review Todd County is a tragedy for everyone Control Policy; Karyn Hascal, President Commission to appoint a subcommittee staff did a thorough job of describing the involved. It revealed to the cabinet some of Mission Advancement, The Healing for making recommendations on how to status of implementation. holes in the system. Place; Steve Shannon, Executive Director implement a self-determination model Representative DeCesare said that Representative DeCesare stressed of the Kentucky Association of Regional of funding services within the Supports he is getting many calls about the adult that it is important to keep up the focus Mental Health-Mental Retardation for Community Living Program. The work program of LifeSkills in Bowling on this. Programs (KARP); Mark Jorrisch, MD, subcommittee was created and reported Green. Mr. Friedlander said that the Senator McGaha said that what FASM, Medical Director of the Methadone its recommendations for a pilot program relevant waivers were updated two years struck him about the staff report is that Education and Rehabilitation Center before the 144 Commission in December ago. Regulations are being updated—with some legislation or parts of legislation are (MORE Center); Pastor Bernard Foschini, 2003. The 144 Commission voted to a lot of public review. Regulations are never implemented. He asked if there is a Director of Teen Challenge of Western accept the subcommittee’s report and changing reimbursement for all providers mechanism in place to inform LRC and a Kentucky; and Robin Peavler, MD, recommendations, but delayed action in the system. Individualized services are bill’s sponsors that parts of a bill will not FACEP, American Board of Addiction in favor of endorsing HB 166 in 2004. the priority. There is higher reimbursement be implemented. Mr. Friedlander said that Medicine Certified Addictionologist. Mr. Hall described HB 144 and its for working in the community than in for SB 23, the cabinet should have reported Ms. Hascal provided an overview implementation. sheltered workshops. There have been concerns regarding implementation to the of The Healing Place, founded by Jay Ms. Myatt said that the first major changes in regulations; the cabinet Health and Welfare Committee and the Davidson and doctors representing the provision of HB 322, enacted in 2004, has more to do to clear up misconceptions. bill’s sponsor. Ms. Jurek said that it is Jefferson County Medical Society, which requires a membership change to the The regulations were not done as routine after every session for the cabinet has been in existence in the Louisville area State Interagency Council for Services to emergency regulations, which allows to review legislation that was enacted. for a over 22 years. The Healing Place Children with an emotional disability. These more time for comment. There is no formal process in place across is a long-term, social model recovery changes were made. A second provision Ms. Jurek said that many of these the executive branch though; it is up to program for drug and alcohol addiction. directs the 144 and 843 Commissions to changes are being adopted in response each cabinet and secretary. The program involves one alcoholic or establish a joint ad hoc committee to make to requirements by CMS [Centers for The meeting adjourned at 11:51 a.m. drug addict reaching back to help another recommendations related to individuals Medicare & Medicaid Services]. 2012 SS HB 1 alcoholic or addict. It is a 12 step program transitioning from the state’s children’s Representative DeCesare agreed that Implementation and and is long term, meaning that it is six to services systems to adult services getting individuals into the community Oversight Committee nine months. The Healing Place program systems. The ad hoc committee was not is important. The concern he is often is a model of empowerment, empowering, Minutes of the 3rd Meeting created. The third provision requires state hearing from parents is that their children and allowing those going through the of the 2012 Interim postsecondary institutions to provide do not have the capability to work in the September 19, 2012 program to make mistakes, learn from priority first-floor housing to students community. It will be detrimental for Call to Order and Roll Call them, and make better decisions. It with disabilities and to allow off-campus caregivers if sheltered workshops are The 3rd meeting of the 2012 SS HB 1 operates as a therapeutic community in housing if the school cannot provide the discontinued. Implementation and Oversight Committee that each individual in the program has first-floor housing. State postsecondary Representative DeCesare said that was held on Wednesday, September 19, a chore such as cooking, cleaning and schools reported to Program Review staff the death of an individual killed in Todd 2012, at 10:15 AM. This was an out- maintaining the facility, landscaping, and that they have implemented measures to County is relevant to the discussion of HB of-town meeting held at the Women supporting the operations of the facility on ensure compliance with this provision. 671. When a parent or student complains and Children’s Campus of The Healing a daily basis. The Healing Place has three Mr. Hall said that HB 671, enacted about a school, the cabinet is quick to act. Place located at 1503 South 15th Street, campuses in Kentucky: two in Louisville, in 2004, requires the Cabinet for Health It is not so quick to act when there is a Louisville, Kentucky. Representative John the Women and Children’s campus and and Family Services (CHFS) to conduct school complaint against a parent. Mr. Tilley, Chair, called the meeting to order, the Men’s campus, and a campus in an internal review of any case in which Friedlander said that it is a question of who and the secretary called the roll. Campbellsville, Kentucky that is part of child abuse or neglect resulted in a child has greater standing to lodge a complaint. Present were: the Recovery Kentucky Initiative. fatality or near fatality, and in which the The cabinet is in discussion with courts and Members: Senator Robert Stivers II, The program does not charge the cabinet had prior involvement with the schools as to how to improve. Ms. Jurek Co-Chair; Representative John Tilley, Co- client any out-of-pocket fee or insurance child or family. The cabinet does have said that ways to communicate online are Chair; Senators Jimmy Higdon and Ray S. payment, and the client can stay at the standard operating procedures in place for being added, but that there are still limits Jones II; Representatives Linda Belcher facility as long as needed. Funding is derived conducting the internal reviews. as to what can be done without violating and Sara Beth Gregory. primarily from private donations from HB 671 also requires the cabinet to confidentiality. Mr. Friedlander said that Guests: Representative Susan individuals, corporations, and foundations, submit an annual report to the governor, there was testimony last session about the Westrom, Danny Jones, Cumberland River with less than 25 percent derived from the General Assembly, and the state child length of time that physicians had to wait Regional Mental Health, Developmental public sources. There are contracts fatality review team. Reports since 2004 on the phone to make a complaint. Ms. Disabilities, and Substance Abuse Center, with the Department of Corrections at are available on the cabinet’s website. Jurek said that the addition of an online Corbin, Kentucky; Mike Porter, Executive the women’s facility in Louisville and The Program Review report suggests that system should help alleviate problems Director, Kentucky Dental Association; the Campbellsville facility to provide the use of different statistical techniques with phone waiting time. Bert Guinn, Greater Louisville Medical recovery services for individuals who are could improve the cabinet’s ability to Representative DeCesare asked why Society; Pearl Ray LeFevers, Cumberland on parole or coming out of an institution identify cases in which the risk for child call centers and workers are located so far River Regional Mental Health; Sarah and who have not had services while in fatalities or near fatalities is highest. Also, apart. Ms. Jurek said that call centers are Nicholson, Kentucky Hospital Association; the institution. The Healing Place offers a better explanation of actions taken by the expensive, and that staffing is done on a D. J. Beyer, Executive Director, Kentucky broad range of services such as overnight cabinet is needed. regional basis. The ways that people can Board of Dentistry; and Frankie Spencer, emergency shelter for housing and food, a Ms. Littleton said that SB 23, make reports have been expanded. Morehead Inspiration Center and Morgan detoxification program, intensive recovery enacted in 2005, has two primary Representative DeCesare said that his County Magistrate. programs and transitional living such components: a legend drug repository understanding is that the seriousness of a LRC Staff: Jon Grate, Ben Payne, as finding housing, jobs, reunification program and the Kentucky Pharmaceutical situation is determined at intake. All calls and Marlene Rutherford. with family, and parenting classes. Assistance Program. The legend drug should be seriously considered. Ms. Jurek Approval of Minutes of July 23, The programs and models have been repository program was not implemented. said that judges have been recruited to help 2012 and August 15, 2012 Meetings researched by the University of Kentucky Officials from CHFS noted concerns with training. All calls are taken seriously Representative Stivers moved Center on Drug and Alcohol Research with implementing that program and but some are collateral, which means they approval of the minutes of the July 23 for a number of years and most recently said that the need is addressed by other do not involve abuse and neglect and are and August 15, 2012, meetings, and found that The Healing Place model has programs. Creation of the Kentucky more appropriate for other agencies. The Representative Belcher seconded. The a 75 percent success rate, five times the Pharmaceutical Assistance Program was legal definitions of abuse and neglect are minutes were approved without objection. national average, which means that three contingent upon approval and funding. A not always commonly understood. For Effect of HB 1 on Substance Abuse out of four individuals who complete the separate prescription assistance program, example, no food in the house would not Treatment in Kentucky program are still sober and clean one year the Kentucky Prescription Assistance legally be abuse or neglect. A referral to Discussing the broad scope of drug upon leaving. Ms. Hascal invited a client, Program, has been created, but it is not the a food bank could be appropriate. Mr. “Kenny,” to talk to committee members treatment were: Van Ingram, Executive

42 2012 Interim LEGISLATIVE RECORD about his life experiences and experiences indicated that The Healing Place focuses center holds about 16 individuals. In have addiction and dependence, but it at The Healing Place. on accepting clients from the 13 counties response to a question by Chair Tilley, stabilizes the patient’s brain as he or she Kenny said that at the age of 30 he surrounding Jefferson County, although Mr. Shannon said in Mount Sterling the becomes normal again. Counseling and was diagnosed with degenerative disk they will accept clients from all over mental health center administers this psychosocial services, the twelve step disease, and his doctors placed him on 80 the country since the organization is not treatment program, and in Louisville it programs, and the spiritual cleansing can milligrams of oxycontin for pain relief. He limited by public funding. All programs is Seven County Services. In other areas be utilized because the patient is clear- was diagnosed with thyroid cancer shortly are full and have waiting lists. of the state, the treatment program would headed and understands the life skills being thereafter, and obtaining prescription pain Steve Shannon talked about the be considered outpatient treatment rather learned in the programs. Suboxone can be medication was easy. He was not able to Community Mental Health-Retardation than residential treatment. weaned over time so the brain actually obtain the amount of oxycontin he needed Centers (CMHCs) throughout the state Doctors Mark Jorrisch and Robin undergoes the biochemical change back to for the pain and would devise ways to that are the public safety net for mental Peavler discussed medications to treat normal or near normal. obtain more from his and other doctors. health, substance abuse addictions, and opiate addition. Dr. Jorrisch is an House Bill 1 has increased the Between the ages of 30 and 40, he was intellectual and developmental disability internal medicine physician, and within medication assisted treatments. There are dishonest and involved in criminal activity. services. In fiscal 2011, the centers served that practice he prescribes suboxone. 11 treatment clinics that see 2,500 ongoing He would make copies of his MRIs, put 179,000 individuals or about one for every Addiction is a brain disease and has patients per month and 250 new patients another person’s personal information 25 Kentuckians. About 18,000 of those a biologic basis with genetic and each month. Patients are held accountable. relating to his MRI on it, then make it look individuals had a primary diagnosis of environmental influences on how the There is room for about 2,000 to 3,000 like an original. He would then send that substance abuse or addiction. The centers brain works. Methadone, which is not the more patients in the private sector clinics person whose name was on the MRI, along employ over 9,000 individuals, or about same as methamphetamine, is specifically using suboxone and unlimited amount of with the MRI, to a doctor he knew would one out of every 200 working Kentuckians. for opioid addiction treatment. The counseling. provide a prescription for the oxycontin. The agency is established by statute, and treatment of choice for pregnant women In response to statements by Senator A prescription of 120 oxycontin pills with the system was created as a result of federal addicted to opioids is opioid replacement Jones for input from the panel concerning a street value of $70.00 per pill or $8,400 legislation in 1963. The agency receives therapy using methadone. Obstetricians the prescribing and administering of was real motivation. It was common funding from the state general fund, a refer individuals, and some referrals suboxone and the issue of training for knowledge which doctors in the Louisville substance abuse prevention and treatment come from the criminal justice system. those who prescribe it, Dr. Peavler area would provide a patient with what block grant from the federal government, He did not recall referrals from other indicated that there are physicians who was needed. Kenny became involved with and a small portion from Medicaid for medical treatment providers. Kentucky is obtain licensure by a special eight hour The Healing Place when his intervention services to pregnant and postpartum a strong advocate of medication-assisted course online that allows a special drug came from Louisville’s Department of women only. Also, a federally mandated treatment, and the regulations that exist enforcement administration number Narcotics at the age of 40, and after talking Medicaid program for children called for methadone clinics are sufficient. House to be issued to write prescriptions for with his attorney and looking at ten years EPSDT, Early and Periodic Screening, Bill 1 is unlikely to affect methadone suboxone. It is very important to have in a federal prison, he determined he Diagnosis and Treatment, allows services clinics because methadone patients come parameters of how this drug is prescribed. needed long term treatment. The Healing to adolescents. Some funding is received to the clinics every day, are seen regularly A physician cannot just prescribe three Place had changed his life, and after going from the Administrative Office of the by a physician, and annual reviews are or four prescriptions for suboxone of 120 through the twelve step program, he felt Courts for drug court, and the agency is in required by the physician who has to be pills because of diversion on the streets. like a new person. He is employed at The the process of negotiating contracts with credentialed in addiction medicine or Eight-five percent of suboxone bought Healing Place and has some benefits. the Department of Corrections to develop addiction psychiatry. on the street is bought for the purpose of In response to a point of clarification outpatient services. Substance abuse is Dr. Peavler is a board certified self treatment. The Kentucky Board of and questions by Senator Stivers, Kenny the number one public policy issue facing Addictionologist and emergency medicine Medical Licensure issued an opinion as to said that his MRI with another individual’s the Commonwealth because it impacts doctor practicing 23 years. Pain pill how suboxone should be prescribed, and personal information would be taken employment and education, among other addiction kills 95 Kentuckians per month he and Dr. Jorrisch are working through to a doctor. When the doctor looked at things. The Centers for Disease Control and is now the leading cause of accidental the Kentucky Society of Addiction the MRI of the patient it was in fact his, indicates that overdose deaths have death. In the last 12 to 15 years, there has Medication (KSAM) on how to strengthen not the individual patient in the doctor’s reached epidemic levels. been an amazing increase in the number or reinforce the prescribing of suboxone. office. His goal of choice prescription The CMHCs’ prevention services of patients coming into the emergency Dr. Jorrisch agreed that there needs was 120 pills of 80 milligrams oxycontin. are an evidence-based practice that saves room for pain. Pain has become the fifth to be parameters and guidelines. He said The stable of patients would go to pain dollars in the corrections system, law vital sign. Emergency room doctors have that some practices are primary addiction management clinics in Louisville. There enforcement, and the Department for begun giving a secondary diagnosis as specialty practices that can provide a were about eight such doctors, and all the Community Based Services, and they drug seeking behavior (DSB). Although certain amount of care on site, but there doctors the prescriptions were obtained increase employment. As House Bill 1 the United States has five percent of the is a larger number of physicians who are from are no longer practicing physicians. becomes more fully implemented, there world’s population, its residents consume not in primary specialty practices but Kenny would call for an appointment will be a need or demand to address medical 95 percent of the pain pills manufactured who just have the eight hour certification. with these doctors and the appointment and social detox at a hospital supervised in the world. Addiction is a scientifically The expectation should not vary except times staggered. These were initial new by a doctor. There is a great need for proven disease that permeates all levels that the specialty practice will be able to patient visits so that if the appointment adolescent residential programs. Outcome of society. He referenced an article by Dr. provide onsite those services for which the with the first doctor did not work out measures from independent studies reflect Malcolm Butler discussing how doctors nonspecialty practice will have to utilize with a prescription for the 120/80s, then that the outcomes are effective through have contributed to this epidemic. Pain outside resources. In rural areas, those the individual would go to the other the drug and alcohol research. One of the medication addiction it is not about the resources of pain and addiction specialists, appointments until an appointment concerns of the agency is whether House “high” but once an individual is addicted physiatrists, and counselors are limited. resulted in the choice prescription written, Bill 1 will result in more individuals being he or she needs more and more medication. Senator Jones indicated that one and then the other appointments would incarcerated or accessing treatment. He If the person has no medication, he or she solution is to require physicians who write be cancelled. The stable patient would emphasized the need for treatment rather becomes very sick or dope sick with such prescriptions for suboxone to attend the continue to see that doctor for prescriptions, than incarceration. symptoms as aching, vomiting, diarrhea, Clinical Applications of the Principles in and the medications would be collected In response to questions from Senator and chills, and it takes more medication to Treatment of Addictions and Substance and dispersed. This was occurring in the Stivers regarding adolescent treatment keep from becoming sick. Abuse (CAPTASA) conference. There early 2000s. A KASPER report may have centers, Mr. Shannon said that CMHC is The average pain medication addict needs to be some level of on-going been requested but not to the level it is operating one adolescent treatment center spends $3,200 per month on pills. Dr. continuing education for those treating today. Doctors wanted the money as bad in Mount Sterling and one in Louisville, Peavler said that he treats with suboxone opioid addiction in an outpatient setting as the patient or drug addict; they were all and the approximate ages range from and counseling, which studies have shown other than taking an eight hour online greedy. Kenny said that 120 pills was the fourteen to eighteen. A lot of the abuse is effective in treating addiction and course. maximum that could be obtained at one and addiction is related to marijuana, a requires a medical doctor to be a central time, and he both used and sold the pills. gateway drug. The program in Mount part of the recovery from beginning In response to a question by Senator In response to questions from Sterling is designed for 16 weeks while throughout the disease. Suboxone does Jones regarding board certification of Representative Belcher, Ms. Hascal Medicaid managed care is 30 days. Each not give a euphoric effect to those who physicians in the state by the American

THE KENTUCKY GENERAL ASSEMBLY 43 Board of Addiction Medicine (ABAM) half of the 16 babies were suffering from from First Lady Beshear. In developing regulations. or the American Society of Addiction neonatal abstinence syndrome. According the program, he worked with Dr. Robert Medicine (ASAM), Dr. Shannon indicated to the hospital’s statistics, 132 newborns Walker and the University of Kentucky. Ms. Hold indicated that the Inspector he believed there are approximately 2,300 have been treated for addiction to opioids The committee was provided a report by General’s Office had compiled the list to 2,500 nationwide, and that in Kentucky or narcotics. The UK Medical Center Dr. Walker that contains information of from actual calls and issues that have the number is 100 or less. Senator Jones reported seeing 90 to 100 addicted babies what has been accomplished in the first arisen that have been addressed in the encouraged the medical licensure board to per year, with Kosair Children’s Hospital three years of the program. office as well as from the KASPER Help look at the quality of care that is provided caring for 65 addicted babies in 2011. Desk. There had been tremendous support to patients who are prescribed suboxone These are difficult visits, as the babies cry Ms. Burnett explained that the and input from the stakeholder meetings. and provide feedback to the committee. A out in pain with ridged blotched skin and program begins with an initial 40 days Mr. Rodman said that the KBML had also heightened level of training and education are going through the same withdrawal of intensive treatment where the women been meeting with stakeholders such as is needed before physicians are allowed to symptoms as adult addicts, including do educational therapy groups all day-- the Kentucky Medical Association, the prescribe suboxone. Dr. Jorrisch cautioned diarrhea, excessive or high pitched crying, except for lunch breaks--using a holistic Kentucky Hospital Association, Lexington about a one size fits all paradigm. He said excessive sucking, fever, and hyperactive approach addressing substance abuse Clinic, and others that have identified there needs to be flexibility or general reflexes. Financially, the national overall issues. Upon completion, if appropriate, issues and offered solutions. She stated guidelines in what physicians can do. health costs for addicted newborns rose the women remain at the facility long that technical staff has been increased to Physicians are intimidated since the from $190 million in 2000 to $720 million term until they deliver, as some residents accommodate the operation of KASPER passage of House Bill 1 when prescribing in 2009, resulting from an average 16 day do not have a place to go after treatment 24/7 with monitors in place and that this pain drugs and need to better understand hospital stay costing $53,400 per infant, due to homelessness or continuing drug has been greatly improved with the number the differentiation as to what is criminal with Medicaid paying in eight of ten cases. situations in their home environment. of down hours decreasing from 29 in July or not criminal, and what is a guideline While medical research is developing, Others come from good homes and to two in September. Patient consent forms and what is a standard of care. Mr. Ingram early studies indicate that neurological already have life skills and supportive are not required for a provider to request stated that as of September 17, there are behavior problems and attention deficit families. Upon delivery, mother and child a KASPER report. A KASPER report can 336 providers who have the license to and hyperactivity disorders are more remain at the home for 30 days, with be placed in a patient’s medical record prescribe suboxone. One year ago there likely with these babies. State health the mother having the responsibility of and discussed by the physician with the were 250. officials have indicated solutions to this taking care of her baby and performing patient. Practitioners with a valid Drug pill addiction need to be a priority but that all the chores of Independence House. Enforcement Administration license must Faith based organizations such as answers are illusive due to ongoing funding The program receives many referrals register with KASPER, although they may Teen Challenge also partner in treating issues and continued drug problems in from the legal system, with authorities not have the need to write a prescription for substance abuse. Pastor Foschini, Director society. However, drug treatment centers reluctant to release them from jail unless a controlled substance. If a practitioner has of Teen Challenge of Western Kentucky, work. they go to treatment. Among the home’s an office out-of-state and treats patients in stated that Teen Challenge is a nationwide residents, the average age of first use of that state, the practitioner must follow the ministry. The minimum age for the In response to questions by Senator drugs is seven with habitual use beginning law and guidelines in that state. western Kentucky center is 17. There Stivers concerning how mothers became as teenagers due to peer pressure, with are over 218 Teen Challenges across addicted, Ms. Ungar cited a number of residents coming from all walks of life, Senator Stivers said the committee America and nearly 1,000 worldwide. factors, including initial marijuana or rich and poor. Out of fifteen women in was concerned about the advice being The western Kentucky center has capacity alcohol use during the early teenage the program, the primary drug of only one given to physicians, and that a doctor had for 40 students, receives no funding from years. Some mothers have indicated that individual is alcohol, while the others are previously testified that he could not write the government except that students their addictions came about as an illicit or prescription drugs. She has taken a survey a narcotic prescription unless he sent the may sign up and receive food stamps, illegal situation where they began buying of the women asking such questions as patient or individual to have a urine test. and charges a $1,000 insurance fee and pills on the street. None of the women to what lengths they would go to obtain The doctor indicated that his lawyer had $500 per month thereafter. The program she interviewed said that prostitution drugs, where they got them, or how much advised him not to write the prescription. depends on donations from local churches was a means to pay for their chemical was paid for the drugs, and she determined He said the regulation clearly states that and individual donors. Approximately 30 dependence, but she was sure that it occurs. that individuals who sell the pills see it a urine test only applies after 90 days of percent of the clients are directly from She said that many recovering addicts told as a business endeavor. They go out of prescription. Mr. Rodman noted that the jail and are indigent, and about half of her in her interviews that they were never out-of-state to obtain the pills. The new interval after a urine drug test is another the center’s population is the result of asked by prescribers about their or their laws and regulations have decreased the question the board receives, and that a urine pill abuse. He graduated Teen Challenge family’s addiction history. number of pills on the street, and medical test is not required for initial prescribing in Pennsylvania when he was 25 years professionals have become more cautious but only after 90 days. Random intervals old. The duration of the Teen Challenge Mary Burnett, Program Director in their prescribing, although persons are required thereafter as determined by program is 12 months, and after that time of the Independence House Pregnant crossing state lines remain problematic. the physician. Mr. Rodman indicated that students are allowed to remain on campus and Postpartum Women’s Residential Ms. Burnett invited the committee to tour there is nothing in House Bill 1 or the in a less supervised environment and Treatment Program, and Danny Jones, the Independence House and talk with regulations that prohibits a physician from during which they may get jobs and pay Executive Director, Cumberland River residents. prescribing controlled substances. rent. The program encourages a person Comprehensive Care Center in Corbin, to have a relationship with God, teaches Kentucky, discussed their treatment Chair Tilley referred committee In response to a question by Senator life skills, and has a re-entry program if programs for pregnant and postpartum members to a letter in the meeting packets Jones concerning the confusion in the needed. women addicted to substances. Mr. Jones from the law firm of Stoll Kenon Ogden medical community regarding controlled said that Independence House was started regarding Dr. Ricky Collis and Dr. Dean substances how they are reflected in the Prescription for Tragedy – four years ago with a three year federal Collis and the regulations concerning regulation, Mr. Rodman stated there is Kentucky’s Addicted Babies grant from the Substance Abuse and licensure of pain management facilities. confusion because there are standards Mental Health Services Administration contained in statute and standards in the Laura Ungar discussed a recent (SAMHSA) for a residential treatment Misconceptions Regarding House regulation, and physicians are accustomed exposé she wrote in the Courier journal program for pregnant and postpartum Bill 1 and its Associated Regulations to advisory language rather than regulatory investigating the growing problem of women addicted to substances. The grant language. drug addicted newborns. Hospitalizations ended last October, but Independence Chair Tilley noted the summary of for addicted newborns rose from 29 in House has managed to remain open. common misconceptions contained in In response to questions by 2000 to 730 last year. A Journal of the Medicaid pays for pregnant and postpartum member packets. Stephanie Hold, Assistant Representative Belcher, Mr. Rodman said American Medical Association study women’s outpatient services but does Director, Office of Inspector General, that it is not true that emergency rooms can indicated that hospitalizations nationally not pay for residential services. There is Cabinet for Health and Family Services, prescribe pain medication only for broken rose about 330 percent from 2000 to a lack of funding, although the program which oversees the KASPER system, bones or chest pains, nor is it true that a 2009. She recently visited the University was given a $250,000 grant by the Office and Mike Rodman, Executive Director, physician can prescribe only one round of of Louisville hospital neonatal intensive of Local Development earlier in the year Kentucky Board of Medical Licensure pain medication with no refills. He also care unit and discovered that more than and is receiving support and assistance (KBML), discussed the misconceptions said that ADD and ADHD medication are regarding House Bill 1 and associated Schedule II controlled substances, and that

44 2012 Interim LEGISLATIVE RECORD comments from pediatricians and families Guests: Representatives Linda much of the cost. While the plan for new Increasing the employee contribution concerning these medications may need Belcher, Mary Lou Marzian, and Arnold employees is not projected to be expensive rate by one percent would have a $1.26 to be addressed by the legislature. To Simpson; David Draine, Pew Center under Kentucky Retirement System (KRS) billion impact on the value of employer prescribe these drugs, a KASPER report on the States; Josh McGee, Laura and assumptions, it exposes Kentucky to a contributions over the next 30 years; is needed with a monthly visit upon initial John Arnold Foundation; Greg Fischer, substantial level of risk. Alternative plan decreasing the multiplier by one percent, prescription to make sure the amount was Louisville Metro Government; Steve designs could better manage the risk and including for current employees, would appropriate, but thereafter it would be up Arlinghaus, Kenton County government; ensure full funding to deliver benefits that reduce the value of contributions by $600 to the physician. Mr. Rodman pointed Steve Pendery, Campbell County are affordable, sustainable, and secure. million. Changing the benefit calculation out that there is flexibility in the board’s government; and Mike Buchanon, Warren The model used to analyze Kentucky’s by averaging salary over six rather than regulations. County government. pension plans is based on aggregate plan five years would create savings of $255 LRC Staff: Judy Fritz, Brad Gross, data and projections provided by KRS. million. These approaches may or may not In response to a question by Jennifer Hays, Frank Willey, and Peggy The figures presented should not be be viable based on the inviolable contract. Representative Gregory as to where Sciantarelli. viewed as exact savings or cost estimates While use of such traditional levers may individuals could be referred for addressing Approval of Minutes and but instead as offering a means to assess offer reasonable savings, they will not be these misconceptions, Mr. Rodman Announcements scale and scope. Plan design is about enough to close the funding gap on their indicated that identified misconceptions The minutes of the August 21 more than only cost. Policy makers need own. will be posted and available on the meeting were approved without objection, to consider other relevant factors, such Raising the retirement age in KBML website. Constituents can also call upon motion by Representative Yonts. as how different plan designs share risk Kentucky will not necessarily result in KBML. Senator Thayer announced that the date and distribute retirement wealth across savings because benefits are heavily back- of the Task Force’s next meeting has been employees’ careers. loaded, based on the benefit formula and The Governor’s Office Stakeholder changed to October 29 at 1:00 p.m. The Over the next 25 years, KRS projected salary increases for late-career Regulatory Outreach Activities final meeting is scheduled for November contributions are expected to rise to almost workers. If plan assumptions do not match Kate Wood Foster discussed the 20 at 1:00 p.m. $5 billion, assuming all assumptions are what actually occurs, this result may not Governor’s convening of a roundtable Overview and Preliminary Report met. If investment returns are lower than hold. workgroup consisting of regulatory board by the Pew Center on the States and the expected, contributions could increase There are many ways in which and stakeholder representatives, which Laura and John Arnold Foundation considerably. If contributions grow faster refinancing pension debt through bonding had had three previous meetings. The The guest speakers were David than the economy, which seems likely, this could be beneficial, but there are substantial Governor fully supports House Bill 1. Draine, Senior Researcher, Pew Center cost would crowd out key public services, risks. Analysis estimates that issuing The administration has taken the position on the States (Pew), and Dr. Josh McGee, stunt public sector hiring, and make it $1.37 billion in bonds would reduce the that House Bill 1 requires more deliberate Vice President for Public Accountability harder to offer raises. value of future contribution costs by about and conscientious decisions in prescribing Initiatives, Laura and John Arnold The problem is of such scale that $1.38 billion. Bond service payments between the patient and prescriber. Foundation (LJAF). Copies of their slide unfunded liabilities will continue to are included as part of the employer Comments have been requested from presentation and Mr. Draine’s prepared grow over the next decade and only start contribution estimate. The combined cost stakeholders in three areas: interpretation statement were provided. to dip after 2027. Assuming the state of paying for both the bond and pensions issues, recommended regulatory As emphasized at previous Task meets its payment schedule and there under this scenario is less than the suggestions, and statutory changes. KBML Force meetings, Mr. Draine said Kentucky is no significant economic downturn, projected pension contributions. Savings and other licensure boards are working on policy makers will need to achieve three the unfunded liability should be largely would result from borrowing at a rate refinements and expect those to be more things as part of comprehensive pension paid off by 2037. Even so, the Kentucky less than the investment return delivered public in the next few weeks. The boards reform: develop a plan to responsibly Employees Retirement System (KERS)- by the pension plan and frontloading will continue to receive comments as pay down the unfunded liability over a nonhazardous plan will have less than two contributions into the retirement to whether the refinements will address reasonable time frame that, ideally, should years of benefit payments on hand in 2022 system. Under pessimistic scenarios, the their concerns. As an example, one not impinge on funding for key services and will be vulnerable to any deviation estimated value of savings would be $1.19 recommendation has been for institutional or impair the Commonwealth’s economic from plan assumptions. Solvency concerns billion. Kentucky’s borrowing costs are accounts for hospitals and long-term viability; adopt a reformed retirement impact the plan’s security and investment conservatively estimated at six percent, care facilities that will make it easier for system that is affordable, sustainable, and ability. Paying the full ARC in a shorter based on assumptions provided by LRC, those institutions to utilize KASPER. The secure; and ensure that under whatever time frame or finding other ways to bolster but previous pension bond issuances have roundtable group will return comments to plan is adopted, the state can effectively this dangerously depleted plan could be resulted in borrowing costs below five the stakeholders by the end of September recruit and retain a talented public-sector helpful in remedying solvency concerns. percent. Beyond the potential savings, and will be continuing its meetings with workforce. Today’s presentation should While the KERS-nonhazardous plan is bonding would also help alleviate the the groups. not be viewed as an endorsement by in the worst shape, the other KRS plans KERS-nonhazardous plan’s solvency Pew or LJAF for any particular policy or also have funding shortfalls that need to problems. The meeting adjourned at 12:50 approach. be paid. Increasing salaries by three percent p.m. Mr. Draine said there is no quick Analysis under the baseline and, in exchange, increasing employee Task Force on Kentucky fix to Kentucky’s pension problems. assumptions suggests the present value contributions by two percent would save Public Pensions Under all plausible scenarios, there will of KRS contributions by state and local almost $2 billion from the present value Minutes of the 4th Meeting be substantial cost to state and local governments to be $20.8 billion. Under of future contributions. Raises can help of the 2012 Interim governments to pay for pension promises a pessimistic scenario, if investments do defray the immediate cost to employees, September 18, 2012 over the next 30 years. Refinancing the not perform as hoped, the value of future who have had their salaries frozen for Call to Order and Roll Call state’s pension debt through bond issuance contributions will jump to $23 billion. the last three years, and bolster pension The fourth meeting of the Task Force has the potential to improve the funding If investments outperform, under an funding over time. on Kentucky Public Pensions was held situation and reduce long-term costs. optimistic scenario, taxpayers will only Changing the tax exclusion for on Tuesday, September 18, 2012, at 1:00 Bonding, however, would force the state need to set aside about $18 billion. If retirement income has the potential to PM, in Room 154 of the Capitol Annex. to take on additional risk and should only Kentucky simply closed the existing plan inject much needed revenue into the Senator Damon Thayer, Chair, called the be used as part of a comprehensive reform and did not replace it, this drastic change pension system. Preliminary estimates meeting to order, and the secretary called effort. Changing the tax rules for retirement would simply eliminate benefits for new from the office of the State Budget Director the roll. benefits could potentially produce enough employees and reduce the value of future suggest that counting nonretirement Present were: revenue to close a substantial portion of the contributions by just $1.3 billion. Pew income against the inclusion would Members: Senator Damon Thayer, funding gap and lessen the need for other and LJAF think it would be a terrible initially increase annual revenue about Co-Chair; Representative Mike Cherry, significant tax increases or service cuts. idea to eliminate retirement benefits for $150 million. If the legislature eliminated Co-Chair; Senators Jimmy Higdon, Joey Changing benefits for new employees will new employees. Changing benefits for the exclusion, revenue would increase Pendleton, Dorsey Ridley, and Mike not reduce current pension debt or have new employees would not eliminate the by $500-$600 million. Putting that new Wilson; Representatives Derrick Graham, large cost implications in the near term. funding gap and, even under the most money into the pension system would Keith Hall, Brad Montell, Marie Rader, The plan offered to new employees is extreme scenarios, would reduce total reduce the need for contributions from Rick Rand, and Brent Yonts. relatively inexpensive, and employees pay costs by less than 10 percent. other sources by $2.3 billion under the

THE KENTUCKY GENERAL ASSEMBLY 45 more modest change, and by $7.5 billion liability in the event of future COLA a lot less pension wealth early in their the city of Stockton, California. On behalf with removal of the exclusion. increases but that paying for future careers than late in their careers. This of the group, he urged that Kentucky act Measured use of the options that COLAs would necessitate additional creates an incentive to work longer and to reverse the trend of escalating annual have been presented would not come close revenue. Discussion followed regarding can help the state retain talent, but it also contribution rates; fundamentally redirect to eliminating the funding gap but would Rhode Island’s method of awarding places workers on a retirement savings the system to provide long-term relief and have some impact on future contributions. COLAs. The discussion also included a path that is less than secure for much of predictability for local governments; and The analysis did not model elimination review by Representative Cherry of 2005- their working life. Research indicates that provide for shared responsibility from all of reciprocity for legislative pensions or 2011 KRS cost figures associated with workers respond more strongly to wage stakeholders, including current and future methods for reducing administrative costs, investment return, COLAs, and reduced increases than retirement benefit increases; employees, employers, and retirees. since they would not offer meaningful ARC payments. thus, wage may be a more effective Judge Buchanon said Warren County’s reductions in the contributions that state Representative Montell inquired retention tool. Back-loaded benefits are a general fund contributed $325,910— and local governments need to put into the whether the proposals forthcoming from key characteristic of a traditional pension 3.5 percent of total spending—toward pension system. Mr. Draine concluded the Pew and LJAF will address Kentucky- plan. Whether back-loading benefits is the pension costs in 2003, and $398,000 in first half of his presentation, and the floor specific issues such as double-dipping, right way to structure retirement savings 2004. Workforce cuts began in 2008, was opened for questions. overtime pay, and spiking. Dr. McGee said is a question that policy makers will need mostly through attrition and utilization When Senator Pendleton questioned that those issues, while related to good to answer. of part-time employees. In 2011, pension whether blame for the pension dilemma governance, are generally not huge cost Mr. Draine posed questions for costs rose to $1.194 million—7.88 percent is primarily due to the economy or failure drivers. Mr. Draine said their proposals the Task Force to consider. How should of total spending. The Warren County to pay the full ARC, Dr. McGee said the will be well designed and also look at workers earn benefits over time—a sheriff’s hazardous duty contributions two factors are linked and that blame protections that would be considered limited benefit early in the career with a are even higher. If this trend continues, cannot be assigned to one or the other. good policy but not necessarily major cost spike in late career, or smoother? Should within 10 years Warren County will Poor performance in the economy led to drivers. Senator Thayer advised members the taxpayer bear all the risk, should it all have a considerably smaller workforce increased costs. Mr. Draine noted that that they will have the opportunity to offer go to the worker, or is there an effective and will be providing fewer services to even though full contributions were made and vote on suggested “good government” way to share it? What will be the best constituents, and most Kentucky counties by the County Employees Retirement type reforms. He reminded them, too, that way to recruit the workforce needed to will probably become insolvent. System (CERS), that system faces a proposed reforms will also apply to the deliver public services, considering that Judge Pendery spoke for both substantial shortfall. legislative and judicial retirement plans. retirement savings is only one element of Campbell and Boone Counties. He said Representative Montell asked about Mr. Draine began the second part compensation? pension costs for Campbell County were the potential insolvency of the KERS- of his presentation by describing four Representative Montell asked whether more than double in 2011 than in 2004. nonhazardous plan and its failure to meet alternative models illustrated for the the retirement system would assume the The employer contribution rate increased projected investment return. Mr. Draine KERS-hazardous and nonhazardous risk for purchase of annuities under a cash by 193 percent—from $630,000 in 2004 to confirmed that their analysis presumes an plans: the traditional defined benefit balance plan, or would the annuities be over $2.1 million in 2011. The workforce assumed investment return of 7.75 percent (DB) plan currently offered to new purchased through the private sector. Dr. has been reduced by five percent. Boone and compliance with the contribution employees, a simple defined contribution McGee explained that the private sector County contributed 10.45 percent of total schedule adopted in House Bill 1 (2008 (DC) individual retirement account, a has more constraints than government with spending toward pension costs in 2004; Special Session). He said that one cash-balance plan, and a stacked hybrid respect to annuitization rates. Because pension costs rose to 14.70 percent of consequence of the KERS-nonhazardous pension plan in which workers have both insurance companies are constrained in total county spending in 2011. Boone plan’s low funding level is that there are a traditional pension and an individual how they are allowed to invest money County has reduced the number of full- few assets available to invest. Later in the retirement account. He explained that set aside for annuities, the annuitization time employees by 12 percent over the meeting, Representative Cherry advised each alternative model was designed rate would go down substantially under a last four years, to partially offset increases that the 10-year investment return as of to cost the same as the current plan third-party purchase. If the state chooses in retirement expenditures. In FY 2013, June 30, 2012, was 5.99 percent and has under the plan’s assumptions, keeping to subsidize annuitization, it would be best Boone County is projected to spend $5.5 shown improvement during the past six employee contributions the same. He to do it through the retirement plan. Mr. million on pension contributions for the months. also reviewed charts comparing projected Draine said that as long as the annuities are workforce. Judge Pendery stated, too, that Representative Yonts suggested the wealth accumulation for the plan design purchased in a fair and responsible manner, a state’s unfunded pension liability can need for bonding as a means to protect alternatives for a hypothetical employee the risk should be manageable. Nebraska’s affect its choice as a suitable location for potential revenue accruing from the hired at age 25, under both optimistic and model provided for annuitization through business and industry. reduction or elimination of tax exclusions. pessimistic scenarios; and illustrating pay the state. Judge Arlinghaus noted that the Mr. Draine said that issuing a bond would replacement ratio for the hypothetical There were no further questions. figures on the Kenton County slide are “lock in” ARC payments. While reducing employee, both with and without social Senator Thayer thanked the speakers incorrect. He said that in 2004 Kenton flexibility in state policy, it would also security benefits. and said the Task Force looks forward County contributed 2.7 percent of total prevent the state from avoiding necessary Mr. Draine said the cash-balance to continuing the dialogue at the next spending to pension costs; in 2011, this payments. Connecticut, when bonding for option requires the plan to manage meeting. increased to six percent. Revenue has its teacher retirement system, included investment account moneys, with the Testimony From Interested declined by more than $2 million since a provision that failure to make ARC employer guaranteeing a minimum Groups 2004. Full-time employees have decreased payments would result in technical return. Workers in a cash balance plan The guest speakers were Greg from 277 to 248. Part-time employees have default on the bond. Dr. McGee said can use the money in their account to Fischer, Mayor of Louisville Metro increased from 99 to 115 and now comprise that explicitly stating legislative intent is purchase an annuity. Cash balance plans Government; Steve Arlinghaus, Kenton nearly one-third of the workforce—a trend another possible way to ensure dedication offer two key protections commonly County Judge/Executive; Steve Pendery, due in part to burgeoning pension costs. of resources. Representative Yonts spoke associated with DB plans: a guarantee Campbell County Judge/Executive; and The true cost for pensions is significantly about a recent Courier-Journal article against investment risk and protection Mike Buchanon, Warren County Judge/ higher than six percent, when considering relating to Kentucky’s multiple tax code against outliving one’s retirement assets. Executive. They provided copies of their the number of part-time employees. exemptions. He advised the Task Force Stacked hybrid plans include a small PowerPoint presentations. Kenton County now requires a full year of to begin working in coordination with the traditional pension and an individual Mayor Fischer said their group has employment for CERS pension eligibility. Governor’s Blue Ribbon Commission on retirement account for participating been working together on issues affecting Judge Arlinghaus said the counties need Tax Reform. employees. Kentucky’s current DB Kentucky’s metropolitan areas, along the legislature’s help, and he expressed Senator Higdon said he hopes the plan offers a 1.1 percent multiplier for with Boone County Judge/Executive Gary support for the work of the Task Force. Task Force will address the issue of employees who work nine years or fewer Moore and Lexington Mayor Jim Gray, Mayor Fischer said that Louisville COLAs. Dr. McGee explained that their in state or local government—more or who were unable to attend today. He said Metro contributed 5.3 percent of total analysis is based on KRS’ calculation of less the same level of generosity as the that the rising pension costs are alarming spending to pensions in 2004; pension the current liability and does not include DB component of the sample hybrid plan, and unsustainable, as demonstrated by costs rose to nine percent in 2011, or $67 costs that would be incurred by future but without the advantage of an individual pension reform initiatives passed this million. If pension costs increase five COLA increases. He said they would be retirement account to which the employer summer by the cities of San Diego and percent annually over the next 10 years, able to quantify the size of the increased contributes. It is clear that workers earn San Jose, and the declared bankruptcy of this could result in a 12 percent reduction

46 2012 Interim LEGISLATIVE RECORD of the Metro workforce. The counties legislature, must have the political will to Gene Kirchner, Superintendent, Ft. By using the QR codes in a lesson or represented today have taken action solve the pension problem. He said there Thomas Independent Schools, provided the textbook, students can scan the code with to become more efficient. Louisville are things that can be done at the local committee with background information their device and have a more interactive Metro has launched major efficiency level, and it will be necessary for everyone regarding Ft. Thomas’ ‘Bring Your Own demonstration of the lesson. Teachers are improvement and cost saving initiatives, to work together to find a solution. Device’ (BYOD) initiative. Ft. Thomas is putting these QR codes on posters and including a reduction in overtime, Closing Comments and a suburban school district that is part of items around the school to share more introduction of modern quality principles, Adjournment the greater Cincinnati metropolitan area information with students. Ms. Webb and containment of health care costs. Senator Thayer thanked the speakers with a population of nearly 1.7 million. said that this process is enhancing student The speakers offered the following for their attendance and participation in The student population of Ft. Thomas engagement by allowing a more hands-on recommendations: continue suspension of the effort to address the pension problem. Independent Schools for the 2012-2013 approach with lessons. the COLA until it can be funded; explore He stressed the importance of remaining school year is 2,822 students. Of the 2,822 Ms. Webb discussed Edmodo, which options such as cash balance and stacked focused on solutions—not blame—as students, 16 percent of students are on free is similar to the social networking site hybrid plans; offer separate solutions and the Task Force completes its work in or reduced lunch, 7 percent are minority, Facebook, but is designed specifically board governance for CERS and KERS; preparation for the final report that is due and 200 are tuition students. for teachers and students. It is a secure strongly consider requiring employees by December 7. Representative Cherry Although Ft. Thomas is well-known place to connect, and the teachers and to pay more toward their retirement; said he looks forward to proposals that for its high school football record, Mr. students are given a code to use to and reduce state tax code exemptions on will be offered at the October meeting. Kirchner stated that Ft. Thomas has ensure that no outside users may join a pension earnings. In response to a request from Senator also ranked first in Kentucky in state specific group. Teachers are able to share Judge Buchanon said they have Ridley, Representative Cherry said, if assessment for 17 consecutive years. Ft. content and educational applications with concerns about bonding as a solution possible, he would have staff provide Thomas is also ranked first in Kentucky their students. Students, teachers, and for the unfunded liability. This option members with draft proposals in advance for college and career readiness. The fall parents may access homework, grades, should be further evaluated, coupled with of the October meeting, which he will 2011 test scores proved that Ft. Thomas is review class discussions, and receive possible adoption of a statutory definition chair. He pointed out, however, that the well above the state and national averages. notifications. of full funding as 80-85 percent of true Task Force will not be voting on proposals Mr. Kirchner stated that any technology Poll Everywhere is another useful actuarial cost. at that time. the school implements will need to support application that teachers are using with Representative Graham expressed With business concluded, the meeting this level of performance. their students. Ms. Webb explained that reservation about creating a separate adjourned at 2:55 p.m. Mr. Kirchner said that Ft. Thomas Poll Everywhere is a web application that board for CERS with respect to potential Schools began an initiative called “Vision can be used to gather live responses in any risk and future accountability. Mayor Task Force on Student 2020,” in which the school made a venue. It replaces the expensive clicker Fischer pointed out the lower level of risk Access to Technology commitment to students that by the year systems to provide quick formative for CERS, which has been paying the full Minutes of the 2nd Meeting 2020 they will have been exposed to assessments by polling students. It works ARC each year. He said the main point of of the 2012 Interim the skills and competency necessary to internationally on the web, texts, and the recommendation is to look at different August 27, 2012 compete in a global, knowledge-based Twitter and can provide up-to-the-minute governance options and models, while Call to Order and Roll Call economy. The model of Vision 2020 is poll results. Students can text questions to a keeping in mind the big picture of the The second meeting of the Task critical and creative teaching and learning. teacher or presenter and can download the state as a whole. Representative Cherry Force on Student Access to Technology Ft. Thomas wants to give students results and save them into a PowerPoint st said that the issue of separate boards was held on Monday, August 27, 2012, exposure to all the necessary 21 century presentation. was discussed in 2008 when House Bill at 1:00 p.m., in Room 149 of the Capitol skills including: Diana McGhee, Director of 1 was passed. The biggest concern, as Annex. Senator Katie Stine, Chair, called Energetic classrooms; Technology and Information, explained he recalls, was how to divide existing the meeting to order, and the secretary Creating, performing, and why they have implemented BYOD and assets. Increased administrative costs and called the roll. designing; not 1:1. As a district, it was problematic investment management were also viewed Present were Real world applications; to buy equipment for all students and as concerns. Members: Senator Katie Stine, Problem solving; then have to continue buying as newer Answering questions from Presiding Chair; Representative Carl Global citizenship; technology becomes available. It is more Representative Simpson, Judge Pendery Rollins II, Co-Chair; Senators Jared Digital literacy; and beneficial for the district to allow BYOD agreed that health insurance is a cost Carpenter, David Givens, Dennis Parrett, Transformative uses of technology. rather than providing 1:1 devices. The driver in pension funding and needs to be and Mike Wilson; Representatives John Mr. Kirchner said that Ft. Thomas recent results of the district’s Technology addressed. He noted that local governments “Bam” Carney, Derrick Graham, and Ruth is not where it would like to be in the Readiness Survey showed that: review health care arrangements for their Ann Palumbo. technology area. The district goal for Over 307 personally owned devices employees annually. In regard to the Guests: Gene Kirchner, 2012-13 is to clearly define and articulate were reported; suggested review of tax code exemptions, Superintendent, Ft. Thomas Independent the vision for technology going forward. 96 percent students have a home he said the economic development Schools; Ginger Webb, Assistant He said that it has been difficult because computer; aspect is important and that if there is Superintendent for Teaching and many technology initiatives are based 93 percent have internet access at not a solution to the pension problem, Learning, Ft. Thomas Independent on a one-to-one mobile device plan. Mr. home; and it will be harder to draw businesses into Schools; Diana McGhee, Director of Kirchner explained that the problem is by 96 percent have internet access – the state. Mayor Fischer said the main Technology and Information, Ft. Thomas the time you buy each student their own either broadband, DSL, or satellite. driver for their proposals is to reverse the Independent Schools; Matthew Constant, mobile device with software, a newer, Ms. McGhee explained how Ft. trend of escalating, uncontrollable cost. Assistant Superintendent of Technology better version is out and you have to buy Thomas prepared for BYOD. The district They defer to the experts on how this and Federal Programs, Owensboro the equipment and software again. With partnered with the vendor Enterasys to may be accomplished and hope that the Independent Schools; and Jim Jackson, the BYOD program, students are able to begin their network. Ft. Thomas invested system will ultimately provide long-term District Technology Coordinator and stay up-to-date on their own with the latest over $25,000 to get the technology ready relief and some predictability for local Chief Information Officer, Bullitt County software and programs. The BYOD also and ensure Children’s Internet Protection governments. Representative Simpson Schools. allows students to choose the device they Act (CIPA) compliance. The district did said he recognizes possible solutions for LRC Staff: Jo Carole Ellis, Sarah are more comfortable working with. not advertise the new network to the the retirement system proper but doubts Kidder, Perry Papka, and Ashlee Ginger Webb, Assistant students and within the first week they had that the recommendations offered today McDonald. Superintendent for Teaching and Learning, over 500 devices connect to their network. would provide relief at the local level. He Approval of the August 27th, 2012 stated that this is Ft. Thomas’s first full The district’s network has over 1,724 added that his heart will always be with Minutes year of having the capability for students devices connected. local governments, and he hopes that there Representative Rollins moved to bring their own device. Teachers Ms. McGhee said that Ft. Thomas is a mechanism that will be able to grant to approve the minutes of the August are using this technology creatively to has two types of wireless networks: the relief being sought for their pension 27, 2012, meeting and Senator Givens enhance student engagement. Ms. Webb District-owned devices, challenges. seconded the motion. Motion carried. said BYOD is being utilized by Ft. Thomas Personally-owned devices Senator Pendleton emphasized 1:1 Mobile Computing Device teachers with Quick Response codes (QR (PODNET) that local governments, as well as the Programs in Kentucky Schools codes), Edmodo, and Poll Everywhere. -PODNET has four layers of speed

THE KENTUCKY GENERAL ASSEMBLY 47 adjustment: home, they usually have smart phones In regards to funding, Mr. Constant Mr. Jackson said that in the -Leadership (Administrators/ that enables them to participate with the explained that in the future they may current phase, the district is working on Principals), lessons. look at BYOD as an option. He said the installation of needed network and wireless -Normal (Students with ID key Responding to Representative technology has a four year life expectancy, infrastructure to support an access point code), Collins, Ms. McGhee stated that a student and the projected costs for the entire in every classroom. This will include the -Guest (Parent), and may only have two devices connected process is approximately $5 million. access points, switches, and wiring so -Unregistered. under their username on the district Mr. Constant said the reason students can connect to the internet. In Mr. Kirchner said that the reason the network. Leadership may have up to five behind Owensboro’s success is its strong addition, Bullitt County will be managing district did not advertise the new network connected on the network. This helps and visionary leadership. The digital over 1,000 access points once this stage to the students was because it did not want reduce bandwidth use. curriculum developers intensely worked is complete. The district was able to work it to be a separate program but rather have Mr. Kirchner also added that on comprehensive learning, and the with KDE to be granted more bandwidth, it become seamless with the educational the teachers are being sent to training district put an emphasis on the technical which has helped significantly. Some of process. Ms. McGhee said that in keeping workshops that will show teachers how and instructional mesh. the costs and challenges for the district with the seamless integration, the district to create their own apps to reach a more Mr. Constant discussed a few of include charging stations, repairs, and has not implemented a special BYOD specific student audience. the barriers that Owensboro faced while digital content. policy other than the Annual Use Policy Owensboro Independent Schools implementing the 1:1 program. When the Representative Carney requested that (AUP). The AUP was updated last Matthew Constant, Assistant program was first deployed, the district an email version of all three presenters’ summer and covers both personal and Superintendent of Technology and Federal completely maxed out its bandwidth; PowerPoints be sent to him so that he may district-owned devices. Every student Programs, gave the committee an overview however, that was resolved by Kentucky forward them to the district he represents. in the district has signed the new AUP of Owensboro Independent Schools. The Department of Education (KDE) within Representative Graham stated that agreement this school year. district enrollment is approximately 4,500 the first two months of deployment. The as a legislative body they need to take up Responding to Senator Stine, Mr. P-12 students, which is up 650 students district has constant communication with the matter of budgetary concerns in order Kirchner explained that what is in the AUP since 2007. The district deployed the 1:1 the technical team to make sure that the to help the school districts prepare for agreement is implemented and applied to laptop program for grades 5-12, which district ensures success for the students implementing this technology. the privacy policy that all students and includes about 2,400 students. Seventy- and teachers. The district is struggling Responding to Senator Stine in teachers sign every year. five percent of the students participate in with funding and resources, and wants regards to whether a statewide or state- Responding to Senator Stine, Ms. the free or reduced lunch program. more advanced technical programs with sponsored digital course is available, McGhee stated that since implementing Mr. Constant said that the students less funding. Mr. Kirchner said that currently there are this program, the teachers are able to are able to have access to the laptops Responding to a question from Senator some programs available but not many. accomplish more in the classroom, and 24/7, which are collected at the end of the Givens regarding improved learning, Mr. The districts would like to see more free the students are becoming more engaged school year. Mr. Constant stated that the Constant explained that with 21st century resources for students and teachers. in the lessons. The teachers are able to district wants to cultivate the students’ 21st learning, they are getting students ready Responding to Senator Carpenter incorporate more into their lessons. century skills. The district wants students for the world and environment they are regarding the cost of textbooks in relation Responding to Senator Parrett, Mr. to create new knowledge and wants every encountering. The by-product of this will to the cost of mobile devices, Mr. Kirchner Kirchner stated that the small percentage child to be proficient and prepared for be increased academic achievement. Mr. said that although the cost of a textbook of students who do not have access to success. The results will be strategic and Kirchner added that, if students are using is spread over a five year life span, you technology are encouraged to use the operational engagement. the technology to create, perform, and are able to keep the mobile devices more school’s resources during school hours. Mr. Constant stated that Owensboro design in real world ways that will better current on content for a lot less. The cost The school allows extended hours in the has created levels of excellence that enable them to compete in the global of technology is continuing to go down, library, and the students who do not have include cognitive complexity, real world economy, they have achieved success. and eventually we will be in a paperless internet at home can take advantage of preparedness, technology integration, and Responding to Senator Givens environment. that resource. student/teacher engagement. The district regarding what motivates the districts Adjournment Responding to Representative feels that using technology is an integrated to move forward technologically, Mr. The next meeting is scheduled for Carney’s statement about his district and essential part for promoting student Kirchner stated that it is using technology Tuesday, September 25th at 10:00 a.m. utilizing Performance Based Education, collaboration among students. Students are as a tool to promote success and With no further business to come where if a student excels he or she can able to partner with the teacher to define performance. before the committee, the meeting move to a higher level class, Mr. Kirchner the content and process. The district wants Bullitt County Schools adjourned at 3:00 p.m. said that Ft. Thomas has the same policy. teachers to initiate integrated learning Jim Jackson, District Technology Responding to Representative resources and wants students to have Coordinator and Chief Information Task Force on Student Carney in regards to support for the access to the information. Officer, began by saying that Bullitt Access to Technology staff with the technology, Ms. McGhee Mr. Constant said that the mission County added wireless access points for Minutes of the 3rd Meeting said that she offers technology training of digital innovation involves challenging every four classrooms, as well as in large of the 2012 Interim and support classes at least one day a their team to design and model innovative gathering areas such as the gym, cafeteria, September 25, 2012 week. The teachers are able to fill out an digital instruction, which empower and other offices. That began the first Call to Order and Roll Call assessment and get specific training on teachers to facilitate differentiated student phase of mobile device implementation. The third meeting of the Task Force the areas they need. Ms. McGhee said learning. Students are challenged to take Mr. Jackson said that after Apple on Student Access to Technology was held that numerous teachers go to training on responsibility to become lifelong learners, released the iPad, new devices were on Tuesday, September 25, 2012, at 10:00 their own during the summer to stay on creatively utilizing technology to reach constantly being released. Suddenly, a.m., in Room 149 of the Capitol Annex. top of the latest technology developments. full potential. Teachers are challenged laptops dropped significantly in price after Senator Katie Stine, Co-Chair, called the Ms. Webb added that the majority of the to collaborate and create innovative, the release of the smaller tablets. Students meeting to order, and the secretary called newer teachers are already experienced in individualized digital instruction that have been using smart phones, iPods, the roll. utilizing technology. empowers and engages all students. Nooks, Kindles, and many other mobile Members Present: Representative Responding to Senator Wilson, Mr. Mr. Constant explained that the devices. Carl Rollins II, Presiding Chair; Senator Kirchner said that even in the districts district wanted to make sure they planned Bullitt County Schools have decided Katie Stine, Co-Chair; Senators Jared where the percentages of free and reduced the implementation effectively. In the to embrace the internet-capable device as a Carpenter, Dennis Parrett, and Mike lunches are higher, more than likely those fall 2010-spring 2011, they began by learning tool. After looking at the pros and Wilson; Representatives John “Bam” students will have a smart phone or some piloting laptop carts. In 2010-2011, cons of 1:1 versus BYOD, Mr. Jackson Carney and Derrick Graham. other device. digital curriculum developers were hired. said they have decided to use the BYOD Guests: Tim Maggard, Director of Representative Graham commented The district began intensive professional approach as it is much more affordable Technology, Hardin County Schools. that his district provided the devices but development and wrote over 400 digital for the district. This was implemented LRC Staff: Jo Carole Ellis, Sarah asked parents to pay the insurance fee, and lessons written for the school district. The in January 2011. There is no cost to the Kidder, Perry Papka, and Ashlee his district has a high number of students district had full-scale deployment in 2011- district for devices or support staff. Each McDonald. that are receiving free or reduced lunches. 2012 and will have the second year of full- student is responsible for securing and Approval of the August 27th, 2012 Although they may not have internet at scale deployment in 2012-2013. protecting their own device. Minutes

48 2012 Interim LEGISLATIVE RECORD Senator Parrett moved to approve the Senator Parrett, Mr. Maggard said that With no further business to come to keep children in school and educate minutes of the August 27, 2012, meeting the intent is to reach K-12 students. Mr. before the committee, the meeting them in a safe environment. Students and Representative Graham seconded the Maggard said that he feels that teachers adjourned at 11:15 a.m. who are out of control adversely impact motion. Motion carried. who are actually in the classroom and all other students in the classroom, Kentucky Digital Textbook creating the lessons are better at reaching Task Force on the making it more difficult for them to get an Project students than the people who create the Unified Juvenile Code education. She discussed the steps taken Tim Maggard, Director of textbooks. Mr. Maggard also explained Minutes of the 3rd Meeting by school systems to address habitual Technology, Hardin County Schools, said that the district is working together to of the 2012 Interim truancy, including parental notification that 21 of his 29 years in the education get more Wi-Fi access points for the September 26, 2012 and interventions with school counselors system have been spent in the classroom. students to use while they are out of the Call to Order and Roll Call and family resource officers. She said the Mr. Maggard expressed his concern over classroom. The 3rd meeting of the Task Force school system does everything they can the students that were harder to connect Mr. Maggard responded to Senator on the Unified Juvenile Code was held on to resolve problems before filing truancy with in regards to learning. The Kentucky Stine’s question in regards to validating the Wednesday, September 26, 2012, at 1:00 charges against the student. Digital Textbook Project is an effort to information that is submitted by explaining PM, in Room 171 of the Capitol Annex. Bo Matthews, Superintendent, bridge the gap for those students to ensure that a committee of a teacher’s peers must Representative John Tilley, Chair, called Barren County School System, told the a better educational experience. review the content before it is submitted the meeting to order, and the secretary members he would like to see a stronger Mr. Maggard showed the committee and accepted. This committee must called the roll. partnership between the education system an example of the digital textbook. With include people that teach the same subject Present were: and the Department of Community the digital textbook, students can see and are from the teacher’s state or district. Members: Senator Katie Stine, Based Services (DCBS), so issues can the lesson and icons to represent what Regarding Senator Stine’s question about Co-Chair; Representative John Tilley, be resolved before the matter goes activities are included in the lesson. using Moodle, Mr. Maggard explained Co-Chair; Harry L. Berry, Hasan Davis, before the judicial system. He suggested Some of the lessons include a Google that his district is considering a Bring Teresa James, Lisa P. Jones, Robert D. revising KRS Chapter 159 to include translator so that the students who are Your Own Device (BYOD) program, and Neace, Pamela Priddy, Peter Schuler, and virtual learning opportunities and specify struggling with the English language are the main reason they chose Moodle for the Steve Trimble. the remedies available to school systems still able to participate effectively in the textbook project is because it will work on Guests: Shannon Stiglitz and when at risk students who participate in lesson. There are also several websites any device. One of the main concerns of Teresa Combs, Kentucky School Board virtual learning do not follow their course that Hardin County schools use that will BYOD is how to extend the battery life of Association; Bo Matthews, Barren County work. He discussed the Bavil Academy in read the lesson content to the student. Mr. each student’s device. School System; Denise Perry, Henry Barren County, a virtual learning program Maggard said that there are many students In regards to Senator Stine’s concerns County School System; Ronnie Nolan, that has been very successful in meeting who are very bright and can comprehend related to students struggling with reading Kentucky Educational Collaborative for the educational needs of at risk students the lesson; however, they cannot read on issues, Mr. Maggard said that the digital State Agency Children; Mike O’Connell, outside the classroom. The Academy offers grade level. textbook is also serving as a tutoring Jefferson County Attorney; Cameron virtual learning programs from general Mr. Maggard said that the idea of mentor for those students. Blau, Campbell County Attorney; Eric education credits to advanced placement the digital textbook is to keep the students Mr. Maggard responded to Wright, Jessamine County Attorney; courses for students in systems that may engaged and hands-on in the lesson. All the Representative Carney by stating that the Colonel Spike Jones, City of Covington; not offer all classes in their curriculum. information and other resources are readily district has put the digital textbook idea Marissa Castellanos, Catholic Charities, At risk students who participate in virtual available so there is no interruption in the out in the community so they may see the Gretchen Hunt and Marylee Underwood, learning have done very well on their ACT learning process. The digital textbook concept at hand and understand exactly Kentucky Association of Sexual Assault examinations. In response to a question allows the students to learn, regardless how it will work. Programs, Vince Robison, Louisville from Ms. Priddy, Mr. Matthews agreed to of the level they are on. It individualizes Discussion of Possible Task Force Metro Police, Clyde Caudill, Kentucky provide the members with the number of the lessons for each student’s learning Recommendations Association of School Administrators; at risk children attending Bavil Academy. process. Representative Rollins explained Mary Ritchie, Women’s Crisis Center- Mr. Matthews said virtual learning Mr. Maggard provided an example that there were two different versions of Northern Kentucky. programs are not the best fit for all at risk to the committee in regards to digital the draft task force recommendations LRC Staff: Ray DeBolt, Joanna students, but they offer another tool for test taking. The digital textbook has been included in the committee folders. The Decker, Matt Trebelhorn, Jonathan Scott, schools to offer students who are ready to designed so that when a student answers a only difference between the two was the Mike Clark, and Rebecca Crawley. drop out of school. question incorrectly, the program explains second bullet point. The minutes of the August 23, Other recommendations included why the question was wrong and provides Senator Stine explained that she sees 2012 meeting were approved without increased parental accountability for at risk further detail about the correct answer to the Kentucky Department of Education objection. students and limitations on home schooling enhance the learning process. (KDE) as a resource or a centralized Mr. Schuler told the members about for students with truancy problems to get Mr. Maggard said that because entity that can help resolve legal issues the recent passing of Gail Robinson, a long around a court order to attend school. He funding and budgeting is a concern to the or be a clearing house for educational time advocate for children, who was very said if diversion programs are successful, schools and the state, the program and the suggestions. The recommendation change interested in juvenile law and criminal the education system will support their information used is free. Hardin County is will allow more flexibility for the schools law, and asked for a moment of silence in expansion, but they need to be adequately using a product called Moodle to provide to share ideas and practices. She wants her honor. funded by the state. the textbook project. It is an open source, the schools to feel like there is room for Education and juvenile code Ms. Combs said there is nothing in meaning that no one owns it and anyone innovations and changes. concerns the statutes to force parents to comply with can contribute information to it. Hardin Senator Stine also suggested that the Shannon Stiglitz, Kentucky School orders from school systems about truant County schools have approximately 40 committee think about how to measure the Boards Association (KSBA), and speaking children, which needs to be addressed. teachers developing information for this effectiveness and efficiency of what each on behalf of the Kentucky Association She suggested an enabling statute relating program. school does so that the legislature can use of School Administrators and Kentucky to federal FERPA law to allow sharing Mr. Maggard explained that the that information to ensure that the schools Association of School Superintendents, of student records between the schools teachers can personalize each lesson so are getting good results from digital thanked the members for including KSBA and courts. It takes a court order to share that it may specifically teach the students learning efforts and programs. in the discussion of revisions to the information today, and many times parents about the environment or history in their Representative Graham added that juvenile code. Appearing with her were will not sign the consent form. Non- state or even their area. The teachers can how the schools are performing in yearly Denise Perry, Director of Pupil Personnel, compliance with FERPA can endanger create each lesson to reach each student, evaluations should be reviewed as well. Henry County School System, Teresa federal education funding. She said the and it allows the students to apply each Senator Parrett commented that the Combs, Director of Administrative and necessary language was contained in lesson to their area and surroundings. content in regards to the digital learning Legal Training Services, Kentucky School Representative Flood’s 2012 legislation Mr. Maggard said that using the should be reviewed so that all the standards Boards Association, and Bo Matthews, that did not pass. digital textbook costs about one-fourth of of the curriculum are addressed. Superintendent, Barren County School Commissioner James said DCBS is using traditional methods such as using Adjournment System. hampered by federal HIPPA law relating printers, ink, and buying equipment. The next meeting is scheduled for Ms. Perry said the priority of to the sharing of student information. She nd Responding to a question from October 22 at 1:00 p.m. educators and school administrators is welcomed the opportunity to be involved

THE KENTUCKY GENERAL ASSEMBLY 49 in developing language to address children returning to their home schools, records is a problem for the courts because Chair, called the meeting to order, and the both HIPPA and FERPA restrictions. improving assessments of children before judges cannot see the entire record, and secretary called the roll. Ms. Combs also urged the task force to and after referral to SAC programs, the courts should have judicial discretion Present were: retain judicial discretion, including secure increasing access to virtual learning for detention as a last resort. Members: Senator Mike Wilson, detention as a last resort, and agreed there programs, especially in the Department of Senator Stine told the task force Co-Chair; Representative Carl Rollins should be better parental accountability. Juvenile Justice residential programs, and representatives of the teachers unions were II, Co-Chair; Senator Joe Bowen, Mr. Schuler was concerned about the consistency in graduation requirements invited to testify, but scheduling conflicts Representatives Tom Burch, Keith Hall, recommendations for judicial discretion in for state agency children. prevented them from appearing. and Joni L. Jenkins; Adam Lantman, Greg truancy cases. He suggested strengthening Prosecutors and juvenile code Law enforcement and juvenile E. Mitchell, Rita Muratalla, Wilson Sears, the neglect and dependency statutes, concerns code concerns Dan Seum, Jr., Julian Tackett, Dan Volpe, which might be a better option for schools. Mike O’Connell, Jefferson County Spike Jones, Covington Chief of and Jerry Young. Ms. Perry responded that schools must file Attorney, discussed confidentiality of Police, said there has been a marked Guests: Richard McWhirter, Assistant truancy charges before they can pursue juvenile records and suggested opening increase in heroin use in Northern Executive Director, Tennessee Middle educational neglect against parents who juvenile court hearings under certain Kentucky, possibly the result of tighter School Athletics Association (available do not comply. circumstances. Kentucky is one of 13 controls on prescription drugs. Heroin via conference call). Steve Endsley, In conclusion, the presenters states with closed juvenile courts, while is less expensive and more accessible, Executive Director, Illinois Elementary recommended: (1) increased funding 37 states have open juvenile courts under more juveniles may begin selling heroin School Association. for alternative interventions for at risk specific circumstances. Opening juvenile to support their drug habits and to obtain LRC Staff: Janet Stevens, Bryce students charged with status offenses; (2) courts to an acceptable degree of public income. Transporting juvenile offenders Amburgey, Greg Hager, and Stella that DCBS become more involved in early scrutiny will benefit the victim, the public, can tie up an officer for three to four hours, Mountain. interventions; and (3) increased limitations and the courts, and balance the rights of which is difficult for law enforcement Approval of the Minutes from on home schooling of status offenders to the juvenile and public safety. Revising agencies that have fewer officers due August 20, 2012, Meeting circumvent court orders. They urged court KRS 610.070 will insure accountability of to budget cuts. He suggested officers be Upon motion made by Representative designated workers to connect student and judges, prosecutors, and defense attorneys, allowed to drop off juveniles offenders at Burch and second by Senator Wilson, the families with intervention services. These and alert the community to the presence detention centers and turn them over to minutes of the August 20, 2012, meeting suggestions will help school systems keep of juveniles who commit violent crimes. court designated workers and the judicial were approved by voice vote, without children in school until graduation. He also suggested revising KRS 610.320, system. objection. Senator Stine was concerned that relating to juvenile records, to allow Commissioner Davis said many Presentation: Current Practices children and parents are ignoring court access to those records under specific status offenders are in juvenile detention Regarding the Oversight and orders to attend school. She said there is a conditions. He will propose legislation facilities for violating a court order, without Management of Middle School generation of children who do not respect for consideration by the 2013 General committing an actual crime. While it is Athletics the judicial system. Commissioner Davis Assembly to open juvenile court hearings contemptuous behavior, it is not criminal Representative Rollins introduced said many children do not learn respect and records. He urged the task force to behavior. These may involve such charges Richard McWhirter, Assistant Executive and obedience at home. Schools are consider his suggestions in its final report as skipping school or missing curfew, and Director, Tennessee Middle School charged not only with educating children and recommendations. can result in juvenile detention for 90 days. Athletics Association (TMSAA), but also teaching basic values and good Mr. Schuler was concerned about He said spending time in the Department available via conference call. The online citizenship. Any revisions to the juvenile opening juvenile court hearings and of Juvenile Justice (DJJ) system greatly presentation, narrated by Mr. McWhirter’s code must address the needs of the entire juvenile records. He said identifying increases chances of a juvenile reoffending assistant, Lauren Lynch, was viewed. She family and not be limited to the needs offenders and their victims takes away or committing a more serious offense. All said that the TMSAA was formed in 1995 of the juvenile. After a child enters the the juvenile’s right to protection under the juvenile offenders in the DJJ system are with 69 member schools. Ronnie Carter Department of Juvenile Justice system, the law, which was designed to give juvenile treated as if they have committed serious selected the first TMSAA committee, which chance for success falls dramatically, so it offenders a second chance. Mr. O’Connell crimes, not simply skipping school or consisted of 6 middle school principals. is very important to develop a system of said opening juvenile court proceedings violating a curfew. The committee wanted middle schools early intervention to help the child succeed will promote public confidence and let the Marylee Underwood, Kentucky to be affiliate members of the Tennessee in school and become a good citizen. public know about juveniles who commit Domestic Violence Association, and Secondary School Athletics Association Senator Stine assumed the chair at crimes in their communities. Mary Ritchie, Women’s Crisis Center (TSSAA), to have a set of rules for 2:40 p.m. Eric Wright, Juvenile Prosecutor, of Northern Kentucky, discussed human everyone to follow, and to have the benefit Ronnie Nolan, Kentucky Educational Jessamine County Attorney’s Office, trafficking and juvenile status offenders. of catastrophic insurance that membership Collaborative for State Agency Children agreed the task force should consider Ms. Underwood said young runaways may would provide. The committee felt that (KECSAC), discussed Kentucky’s opening juvenile court hearings. He also be kidnapped and forced into prostitution, the new middle school association should system of educating state agency supported retaining judicial discretion and then be arrested and treated the follow the TSSAA bylaws as closely as children (SAC). These children are for detention of juvenile status offenders same as other juvenile status offenders. possible; 14 to 15 exceptions were made, referred to KECSAC by the Department because the threat of jail is sometimes She recommended that these juveniles to be middle school specific. of Education, Department of Juvenile the best and last option to keep children be referred to child protective services The TMSAA is an affiliate of the Justice, Department of Community in school. In Jessamine County, where instead of the juvenile justice system. She TSSAA. All expenses associated with the Based Services, and the Department parents and children understand violation said Kentucky needs to develop a system formation and operation of the TMSAA of Behavioral Health, Developmental of a court order can lead to detention, of care and services for children who are are borne by the member schools. Failure and Intellectual Disabilities. KECSAC school attendance is improving. He also forced into prostitution. to meet the financial obligations of the provides residential and community based suggested the task force review the abuse, Senator Stine announced the next TMSAA will result in the immediate services to 13,700 children annually, neglect, and dependency statutes to ensure task force meeting will be October 25. The dissolution of the TMSAA. offering 98 programs in 53 school districts, the best interest of the child is always meeting adjourned at 4:20 p.m. Since the TMSAA is an affiliate of the with an annual budget of $9.5 million. considered. TSSAA, the TSSAA Board of Control and KECSAC programs have a longer school Cameron Blau, Chief Assistant Task Force on Middle Legislative Council oversee the TMSAA. year and a smaller teacher to student ratio. Campbell County Attorney, was concerned School Interscholastic An advisory committee for the TMSAA, Children are educated in non-traditional that teachers and administrators will have Athletics known as the TMSAA Committee, has settings including group homes, juvenile no way to deal with disruptive students if been put in place, which consists of 8 Minutes of the 3rd Meeting justice detention centers, mental health day changes to the juvenile code go too far. representatives, each being either a school of the 2012 Interim treatment programs, residential treatment It is a balancing issue to protect teachers September 17, 2012 principal or a school system administrator, programs, community based shelter and other students who are entitled to an Call to Order and Roll Call with 2 or 3 representatives from each area programs and hospital settings. Many state education in a safe environment. He urged The 3rd meeting of the Task Force on of the state. The committee meets twice agency children are below grade level in the task force to develop a system of early Middle School Interscholastic Athletics a year at the TSSAA State Office prior reading and math and may have learning interventions to determine the root cause was held on Monday, September 17, 2012, to Board of Control meetings, typically disabilities. KECSAC recommendations of an at risk student’s behavior or truancy at 1:00 PM, in Room 129 of the Capitol in November and February. The TMSAA include increasing transition services for problems. Confidentiality of juvenile Committee makes recommendations to the Annex. Representative Carl Rollins II,

50 2012 Interim LEGISLATIVE RECORD board regarding bylaws, regulations, and and high school non-faculty or first year Tournaments shall count as two games or say “being held back” to catch students policies; serves as liaison to area schools; coaches must complete the free TMSAA or dates, notwithstanding the number of games being held back on purpose to be able to helps provide enrollment information and TSSAA online coaches’ training session. or dates in which each team participates play the following year. No information is sets classifications; and helps organize and Middle schools are allowed an unlimited in a tournament. Postseason tournaments available on students being held back in direct area and sectional tournaments. number of non-faculty coaches. These or bowl games may be played, provided the 4th or 5th grade. He said schools ending TMSAA has 344 member middle coaches have five years to complete the the plan is approved by the state office in the 7th or 8th grade may have a team. schools divided into three sections: east, ASEP Coaches Education Program, while annually. Any postseason tournament or Schools ending in the 6th grade can co-op middle, and west. Each section is broken high school non-faculty coaches only have play-off format that exceeds the number with other schools to make a team. The into multiple areas and then divided, two years to complete the training. This of regular season contests allowed must high school bylaws allow an 8th grader to based on the enrollment of the schools. program costs $250 and tests coaching be approved by the state office. play on the high school team. The middle These classifications are available on the principles and sports first aid. Middle Regulations specific to basketball school bylaws state that a student cannot web. Membership in TMSAA is limited school coaches are not required to attend tournaments are that 18 regular season move back to play on a middle school to schools that terminate in the 6th, 7th, or State Rules Meetings; high school coaches games may be played, with all tournaments team after he or she has played on a high 8th grades. All TSSAA member schools are required to attend at least every other counting as two games, notwithstanding school team. that contain 8th graders may become a year. the number of games in which each In response to questions from Mr. TMSAA member at no additional fee. TMSAA and TSSAA bylaws also team participates in a tournament. Also, Young, Mr. McWhirter said that not all All other schools pay $100 membership differ regarding academic rules and the season ending TMSAA Area and sports end in season-ending contests. dues, $200 for catastrophic insurance, $40 eligibility. To be eligible, a middle school Sectional Tournament series will count as Middle schools choose their own calendar per non-faculty coach to a maximum fee student must be academically promoted one tournament, provided no other games and seasons. Should they play in a season- of $100, and $5 per football player for to the next higher grade. Any student are played between or after. ending basketball tournament, those the catastrophic insurance assessment. repeating a grade is ineligible. A student At the middle school level, each games count towards their maximum of The Middle School Membership Packet may gain eligibility the second semester section coordinates its own Sectional 18 games. Normally teams play fewer is available online. The main reason that by passing five subjects, or the equivalent, Basketball Tournament. The TMSAA does games than allowed. Basketball is the many schools join is for the catastrophic the preceding semester, provided the not provide awards for these tournaments, only sport with a sectional season-ending insurance. Other services provided with student is not repeating the same grade. but the schools may purchase sectional tournament because almost all schools play membership are the TSSAA Directory, A student has six semesters to complete awards from the same company that it. Baseball is strong in Eastern Tennessee, four TMSAA ID cards with the option a possible four semesters of participation supplies the high school awards. The so that area has a sectional season-ending to purchase four additional cards for after entering the 7th grade. No student winners of the Sectional Basketball tournament. $25 each for access to regular season below the 6th grade may participate. If a Tournaments are presented during halftime In response to a question from events, two TSSAA Championship event student turns 15 on or before August 1, of the high school state championship. Senator Wilson, Mr. McWhirter said that cards that allow free admission into all the student is not eligible. A student who Some areas and sections hold tournament it is up to the schools whether they pay the TSSAA sectional and state championship repeats the 7th or 8th grade and participates series in other sports, but basketball is $5 fee per football player for catastrophic events, rulebooks for each sport, and a in school athletics while repeating shall be the only sport that has similar sectional insurance or charge it to the students. membership certificate. ineligible to participate on a TSSAA team tournaments statewide. In response to questions from TMSAA does not assess fines. In in the 9th grade. This rule helps identify Tournament guidelines state that Representative Hall, Mr. McWhirter hindsight, this is probably not the best students who attended a non-member area and sectional administrators, athletic said that the association receives no approach. The disciplinary actions that school and repeated a year. An 8th grade directors, and coaches must meet to appropriation from the state and no funds TMSAA can take without imposing fines student may participate on a TSSAA select directors, dates, and sites for each from local tournaments. Schools pay do not prevent the same schools from team if they are enrolled at the school. tournament they conduct. They may all expenses with the money collected, committing the same violations repeatedly. Participation as an 8th grader shall not have tournament series in any sport, and and revenue left over is divided among As the association continues to grow, fines reduce the number of semesters a student all specific details must be submitted to the schools. The schools are required to would be beneficial, but it is difficult to is allowed to participate after enrolling in the state office. Basketball tournaments submit a financial report to the association. change the policy after many years without the 9th grade. Students may only participate should be completed each year by the Dues go to the catastrophic insurance and a fine structure. The TMSAA recommends in either the middle school or high school Saturday prior to the TSSAA high paying for handbooks. setting a fine structure for the middle division, not both at the same time. school district basketball tournaments. Representative Hall said that the school association upon formation, but Fines are not imposed at the During tournament play, each area and TMSAA is running an excellent program setting lower fines than those used for the middle school level for violations such section may decide to divide schools and he likes the idea of a basketball state high school association. as unsportsmanlike conduct, playing of into classifications as membership in tournament. The TMSAA sports calendar is less ineligible athletes, eligibility lists, and the area increases. TSSAA and TMSAA In response to a question from complex than the high school calendar and schedule reports. Rules that do not apply to recognize any league that contains at least Representative Rollins, Mr. McWhirter allows more flexibility for the schools. In the TMSAA are tuition and financial aid, six member schools competing among said that about half of the over 700 middle Tennessee, at the middle school level, All Star games, and the 50 Percent Rule. themselves. Any member school may schools in Tennessee are members of the not all areas of the state play the same The Independent Game Rule frequently is choose not to participate in the tournament TMSAA. Middle schools in the Nashville sports during the same seasons. The discussed to be removed from the TMSAA series. A school team may enter only area are not members because at the time local education association determines in bylaws, but currently still applies to both one tournament series to advance to that the TMSAA was formed they had which season each sport is played, and the the TMSAA and the TSSAA. the sectional tournament. Schools must their own insurance. Middle schools in the TMSAA sets the first practice date for each Middle school sports regulations for participate in the tournament series in their Knoxville area dropped their membership sport season rather than for each sport. football, girls’ volleyball, pre-game warm- assigned area. They must submit a written a few years ago because they were in This is the second year that ups, spirit rules for cheerleaders during request to the state office if they desire to violation of the independent game rule the TMSAA has its own handbook. basketball games, basketball, wrestling, move to a different area, but no school in regards to soccer. The Knoxville The handbook contains the TSSAA and baseball pitching rules are included in will be moved without a legitimate reason. middle schools wanted students to play Constitution and the TMSAA bylaws. The the handbook. The most important tournament guideline independent games, but over 80 percent TMSAA bylaws correspond to the TSSAA The biggest difference between that is different for middle schools is that of member schools want to keep this rule. bylaws, and exceptions and differences the TMSAA and the TSSAA are the the TMSAA does not sanction any middle Private schools are not members because are clearly marked. Both handbooks are regulations and setup at the middle school state tournaments in any sport. they have their own league. Member available online. school tournaments. For the TMSAA, all In response to questions from schools are those that want a governing There are some major differences tournaments must be held on consecutive Mr. Sears, Mr. McWhirter said that the body and rules. in the TMSAA Bylaws and the days with no other regular season games rule stating that a student who repeats In response to a question from TSSAA Bylaws. Middle schools have being played during the tournament unless the 7th or 8th grade and participates in Representative Rollins, Mr. McWhirter three categories of coaches: full-time permission is granted by the executive school athletics while repeating shall said that the association adheres to the employees, retired educators, and non- director. A tournament is defined as a be ineligible to participate on a TSSAA Title IX rule. An equal number of sports faculty coaches. High schools, in addition competition of three or more teams and team in the 9th grade applies to students are offered to boys and girls. It is a local to these three categories, also have three or more games, matches, etc., who attended a non-member school. This decision as to what sports schools offer to classified employees. Both middle school which progress to determine a winner. year a change was made to this rule to their students.

THE KENTUCKY GENERAL ASSEMBLY 51 In response to a question from Mr. teams. information such as host brackets and In response to a question from Mitchell, Mr. McWhirter said that the IESA does not offer football or soccer entry centers. Mr. Lantman, Mr. Endsley said that coaches have up to 5 years to complete as a state series. Soccer is a huge club Certified teachers are automatically the individual schools decide their own the ASEP training. The recommendation sport; some schools play interscholastic eligible to coach. Anyone who is not a passing grade for the academic criterion. this year will be to require online training soccer and some play football, but most teacher but wants to coach has to complete In response to questions from prior to coaching. schools do not. IESA has girls softball, an online coaching education course and Mr. Lantman, Mr. Endsley said that all Steve Endsley, Executive Director, baseball, cross country, girls and boys score 100 percent in the test prior to wrestling club teams in Illinois are non- Illinois Elementary School Association, basketball, girls volleyball, wrestling, and the season. IESA also accepts a person school teams. The last change made to said that the Illinois Elementary School boys and girls track and field, with different who has met the high school coaching the classes, based on a members’ survey, Association (IESA) is different from the classes for each of these. Class structure is requirements. IESA allows high school was the addition of a class between 185 rest of the country. It is similar to a high based on enrollments. IESA used to have students and student teachers to assist and 275 pounds. Students are limited to school association. Its governing body lightweight and heavyweight classes, but under the direct supervision of a coach 37 matches. He said that, as the wrestling is completely separate from the state now has a 7th grade division and an 8th who meets the coaching requirements. administrator, he does not like the change high school association. The IESA is not grade division. A regular season precedes The sportsmanship bylaws state in the independent team rule, especially in to be mistaken for the Southern Illinois a state tournament series. The association that any player or coach ejected for wrestling. He is concerned that there will Junior High School Athletic Association, follows national federation playing rules unsportsmanlike conduct shall be ineligible be more injuries, fatigue, burn-out, and which governs only athletics and has one with some exceptions instituted for the for the next interscholastic contest at that diseases. employee and about 130 member schools. age level of the students. Member schools level of competition. Any school that Mr. Sears said that he is very The IESA is a governing body for must use officials registered by the Illinois receives two ejections in a school year shall impressed with the way the IESA is junior high athletics and activities such as High School Association. Some schools be required to communicate in writing to encouraging participation. In response to speech, music, and scholastic bowl. It has play sports at different seasons to the the Sportsmanship Review Panel on the questions from Mr. Sears, Mr. Endsley said been in existence for 83 years. Membership IESA and therefore cannot participate in steps it is taking to address the issue. that, for tournaments, multiple basketball is voluntary and it has 791 member schools. the state series. The IESA is completely separate games can be played in one day, which Of the more than 600 junior high schools IESA offers activities such as from the state high school association avoids an extra travel day, and athletes are in Chicago, only about 10 are members of cheerleading, speech, music, and and receives no state funds. All funds allowed to play 8 quarters per day. the association. IESA has 8 full-time office scholastic bowl. Mr. Endsley showed his are generated through the association in In response to a question from Mr. staff and one part-time technology expert. medal he won as a 7th grader in the speech four main ways. Schools pay $75 annual Tackett, Mr. Endsley said that the board The state is divided into 15 divisions, and contest to illustrate how important these membership dues and a $50 entry fee of directors has final authority in setting one superintendent or principal from each activities are to students. The association for each sport they enter. This generates rules. IESA has advisory committees for division is elected to serve on the Board started a chess competition in 2011, and a total of approximately $389,000 each each sport that can make recommendations of Directors. recently added bowling and golf. year. Admission is charged at tournaments, to change rules. The IESA Board of The association’s mission statement Mr. Endsley shared information on and the association and the host school Directors is made up of principals or is that the IESA provides the leadership various activities the IESA offers. Most each receive a share. The total amount of school administrators, whereas the board and framework to ensure safe, equitable member schools participate in cross- revenue generated for the IESA from the for the Southern Illinois association opportunities for students who are enriched country. Cheerleading was started 12 tournament admissions is approximately consists of coaches. through participation in education-based years ago, and 75 schools participate in 3 $546,000. The total amount of revenue In response to questions from Mr. interscholastic activities. Mr. Endsley divisions based on squad size, not school generated from t-shirt and sweatshirt Young, Mr. Endsley said that the IESA highlighted some of the belief statements: size, with a cheer category and a routine sales at state events is $280,000. The allows cooperative arrangements where the IESA warrants a separate governing category, conducted in accordance with the total amount of revenue generated from there is a lack of participating students body; actively teach and promote good National Federation of State High School corporate support is approximately in a school. This can be across districts. sportsmanship and ethical behavior; Association (NFHS) guidelines. Softball $63,000. Students are only allowed to play for the develop personal growth and self esteem; and baseball are played in opposite seasons The IESA requires that all students school they attend. If schools team up, they recognize excellence; and students deserve to that of high schools, using the same have a current physical issued within the have to sign up as a team for two years. to be directed and/or coached by highly coaches and officials for both. Wrestling past 395 days by a licensed physician In response to questions from Mr. qualified personnel. has 19 weight classes, starting at 65 pounds prior to try out, practice, or participation Seum, Mr. Endsley said that the training Mr. Endsley pointed out some of the up to 275 pounds; 141 schools participate, in a contest. course for coaches is a general overview IESA bylaws. The key eligibility bylaw and body fat testing is not conducted. Mr. Endsley showed a clip from of middle school programs. The focus is is the weekly bylaw, which states that a Students are limited to 5 matches per day the IESA state track meet in which more on the handbook and not safety. This student has to pass all subjects each week and 37 matches in a season. For baseball, approximately 2,500 students participated, course has been in place for four years, to be able to participate in activities the the diamond is 80 feet between bases and with 6,000 to 7,000 spectators. and he would like to add more on safety following week. Passing is determined the pitching distance is 54 feet, with limits In response to a question from Mr. education. Sports trainers are not required by the local school district, and the on innings. For volleyball, the net height is Tackett, Mr. Endsley said that the Illinois to attend regular season events, but they bylaw applies to athletics and activities. 7 feet, the libero is not used, and 2 out of 3 High School Association does not allow are required to be present at state final Ineligibility applies for one calendar week games to 25 points are played. Scholastic students below the 9th grade to participate events. before the possibility of becoming eligible bowl is an academic competition; 374 on high school teams. Middle schools In response to questions from Mr. again. If a 7th grader is retained, that schools participate. allow students from the 5th to the 8th grade Mitchell, Mr. Endsley said that there are student cannot participate as a 7th grader. IESA writes its own rule book and case to participate. The state series activities fundamental differences between the The student can participate again once he book, and it conducts a state workshop for are only at the 7th and 8th grade level. Illinois high school and middle school or she has passed to the 8th grade. coaches each fall. IESA has girls and boys Representative Hall commented that associations. Almost every high school The independent team bylaw, basketball, and each school is allowed to he would like to see dance being added in Illinois is a member of the Illinois stating that if a student is a member of play 22 games per season prior to entering to the activities. Mr. Endsley said that the High School Association; not every a non-school team, he or she may not the state series. Individual players are high school association has started dance middle school is a member of the IESA. participate in a school team at the same limited to 5 quarters per night and 8 this year. The high schools have the same seasons time, was removed effective July 1, 2012, quarters per regular season tournament, In response to a question from for sports, which is not the case for the and is now a local school decision. It was and they play 6 minute quarters. For track Representative Hall, Mr. Endsley said that middle schools. The attendance/transfer violated repeatedly, mostly in wrestling, and field, individuals are limited to any 4 the t-shirt vendor contract was a bidded policies are different at the middle school basketball, and volleyball, and only honest events, but if they run two relays, one of process when it switched to the current level. The middle school level does not schools were being penalized. them has to be the 4 x 400 relay. The IESA vendor, and it was renewed for another five get as much publicity as the high school Another important bylaw is that uses a smaller shot and a smaller discus. years without rebidding. Of the $280,000 level does. The IESA does not license school teams are only allowed to compete Speech is performed as an individual or that the association receives, $155,000 is its own officials, but all member schools against other school teams. They may as a duet, reciting memorized pieces in guaranteed for sale of merchandise at the have to use licensed officials registered in compete against schools that are not front of a judge. A music state contest is state final. The rest of the money comes Illinois. members of IESA, but they may not offered once a year. All activities are listed from sales at the sectional level, where the compete against club or non-school on the IESA website, including useful association gets a per piece amount.

52 2012 Interim LEGISLATIVE RECORD Mr. Mitchell said that they looked at Kelly Ludwig, and Ashlee McDonald, facility and grounds ownership are dealt number of years. Illinois and other states when they started Committee Assistant. with. Responding to Senator Pendleton, the Kentucky Middle School Football The September 5, 2012, minutes were Mr. Thomas also responded to Mr. Cambron said it is not determined Association. He said minimum regulations approved, without objection, by voice Senator Givens’ question about court to what extent youth obtain cigarettes are needed. He likes the enthusiasm and the vote, upon motion by Senator Parrett and proceedings involving a portion of 2003 and the like from relatives or others, but inclusion of other activities in the Illinois second by Representative Quarles. Master Settlement Agreement payments he acknowledged there is social access. association. In response to a question from Governor’s Office of Agricultural being disputed by some participating Senator Pendleton suggested those Mr. Mitchell, Mr. Endsley said that football Policy tobacco companies that claim a lost market questions need to be asked. is not played in the schools and very few The committee received the monthly share over time. Potentially, reduction of Responding to a question from schools play interscholastic football. The report from Mr. Roger Thomas, Executive multistate MSA payments could total over Senator Givens, the witnesses described same is true for soccer; it is a huge club Director, Mr. Joel Neaveill, Chief of a billion dollars. the working relationship between ABC sport. Close to 50 percent of member Staff, and Mr. Bill McCloskey, Director According to Mr. Thomas, and the Synar program. schools charge their own participation of Financial Services, Governor’s Office Kentucky’s legal counsel will be arguing Mr. Gooch discussed how his health fee to be able to offer sports, rather than of Agricultural Policy (GOAP), regarding before a federal arbitration panel in April. department budgets for and handles the eliminating that activity. project funding decisions made by the Since dozens of states are involved, the funds awarded to it and reports on the In response to a question from Mr. Agricultural Development Board (ADB) hearing process could be drawn-out. spending. He described some of the local Lantman, Mr. Endsley said that, in order during its September meeting. Tobacco Prevention and Cessation programs. to get more schools to participate, they GOAP officials summarized funding Program Responding to Representative Stone, should focus on the handbook, stress the allocations under the County Agricultural The committee received the annual Mr. Gooch acknowledged that his agency rules, and stress the state series. Improvement, Deceased Farm Animal report from officials with the Tobacco has had to deal with funding declines in In response to a question from Disposal Assistance, and Shared-Use Prevention and Cessation Program in recent years because of ongoing budget Representative Rollins, Mr. Endsley said Equipment programs from the previous the Department for Public Health. The constraints. that IESA does not offer catastrophic month. program received almost $2,124,000 in Ms. Criswell described some of the insurance; the teams are covered through The committee discussed the tobacco settlement fund appropriations programs within her agency. Those include their schools. methods used in and funding alternatives for FY 2013. Coupled with federal funds, efforts to establish 100 percent tobacco- Representative Rollins said that Mr. for deceased farm animal disposal. the money is used for tobacco cessation free schools, the TRUST tobacco retailer Tackett’s presentation will be postponed Representative Mills described to the interventions, state and community underage sales training, the tobacco toll- to the next meeting. committee a field day he attended in interventions, health communication, free quit line, and efforts to see smoke- Staff distributed a memo requesting Casey County, at the Large Animal and administration and management. free laws passed. The agency will be recommendations from members for the Composting of Kentucky composting Program officials addressing the establishing a Web site to help people final report to be submitted by the task operation, which received $22,500 in committee included: Ms. Irene Centers, quit smoking. She mentioned some of the force. agricultural development funds last June. Health Promotion Branch Manager, and comments recorded from people who quit Mr. Lantman made an announcement The operation serves farmers in several Ms. Angela Criswell, Tobacco Control smoking in 2011. about the Kentucky State Wrestling south central Kentucky counties. Manager. Documents distributed during the Association Fall Meeting. Responding to committee members’ The committee heard reports from committee meeting are available with Adjournment questions, Mr. Thomas indicated the Casey Mr. Josh Crain, Assistant Director of meeting materials in the LRC Library. Representative Rollins announced County operation is the only regional Enforcement, Department of Alcoholic The meeting adjourned at approximately that the November 19 meeting has been composting operation and is a pilot project Beverage Control (ABC), Mr. Steve 11:45 a.m. moved to November 26. The meeting was for other potential composting operations. Cambron, Synar Coordinator with the adjourned at 3:30 PM. According to Mr. Thomas, some counties Substance Abuse Prevention Branch, and offer deceased livestock disposal services Mr. Randy Gooch, Public Health Director from page 3 Tobacco Settlement at no charge while others assess charges. with the Jessamine County Health Cities, Agreement Fund Some disposal takes place in landfills. Department. Oversight Committee Replying to Representative Adams, Mr. Crain described the way the Louisville-Lexington partnership GOAP staff went over the Casey County ABC goes about performing random carry over to rural communities. Minutes October 3, 2012 operation’s disposal fees. checks at tobacco retail stores, often “When you move beyond Call to Order and Roll Call As the discussion ended, Mr. using teenagers working undercover to the boundaries of (Louisville The meeting of the Tobacco Thomas said that he considered cost-share attempt to make purchases. The agency and Lexington) there are lots Settlement Agreement Fund Oversight investments in deceased farm animal made 3,280 inspections in 2011, with 120 of economic development disposal to be “one piece” in the overall violations found. Since July 2011, the ABC Committee was held on Wednesday, opportunities,” he said. “This investments made in Kentucky’s growing has performed tobacco inspections under October 3, 2012, at 10:00 AM, in Room might be an example of how 129 of the Capitol Annex. Representative livestock industry. a U.S. Food and Drug Administration Mr. Neaveill summarized four projects contract. mayors of smaller cities might Wilson Stone, Chair, called the meeting to work together and achieve order, and the secretary called the roll. that received funding under the ADB’s Senator Pendleton indicated he was something they cannot achieve Present were: 2012 Farmers’ Market Infrastructure concerned about the idea of using older- Members: Senator Paul Hornback, Competitive Grant Program. The markets looking undercover buyers, thereby working alone.” Co-Chair; Representative Wilson Stone, included: the Lincoln County Farmers’ confusing some retailers. Mr. Crain made Handmaker agreed that Co-Chair; Senators David Givens, Market, the UK Robinson Center Farmers’ note of the senator’s concerns while also much of the information collected Vernie McGaha, Dennis Parrett, and Joey Market in Breathitt County, a Muhlenberg saying there are protocols in place to use through the Louisville-Lexington Pendleton; Representatives Royce W. County farmers’ market sponsored by age-appropriate buyers. He said the intent effort will help cities throughout the Muhlenberg County Fiscal Court, is to check for compliance with tobacco Adams, Terry Mills, Ryan Quarles, and Kentucky. While taking a regional and the Owsley County Farmers’ Market retail laws. Tommy Turner. approach to economic development Guests: Mr. Roger Thomas, Mr. Joel on the grounds of the Owsley County Mr. Cambron discussed the state’s school system. The amounts awarded, to enforcement role in the Synar law, named isn’t unique nationwide, Louisville Neaveill, Mr. Bill McCloskey, Mr. Brian and Lexington’s joint effort puts Murphy, Ms. Angela Blank, and Mr. Biff be matched with local funds, ranged from after a U.S. congressman who sponsored Kentucky ahead of many other Baker Governor’s Office of Agricultural $20,500 to $40,000. the legislation in the early 1990s. One Policy; Ms. Irene Centers and Ms. Angela Responding to Co-Chair Hornback, aspect of the program is to track data on parts of the nation, she said. Criswell, Department for Public Health; the GOAP officials said there was no retailers caught for selling tobacco to “There’s a lot of encouraging Mr. Josh Crain, Department of Alcoholic review of the markets’ bylaws regarding underage persons. Kentucky had a 5.7 stuff going on. We wish it could Beverage Control; Mr. Steve Cambron, how they screen sellers. Mr. Thomas percent violation rate in 2011. The rate change overnight,” Handmaker Department for Behavioral Health; and noted that applications for farmers’ market has declined or remained at that level for a said. “We’re a little bit ahead funding generally come with broad-based number of years. Also, Kentucky’s Synar Mr. Randy Gooch, Jessamine County of other areas. We just need to Health Department. support from the communities applying violation rate is well below the national and described to Co-Chair Stone how average and has been that way for a execute.” LRC Staff: Lowell Atchley,

THE KENTUCKY GENERAL ASSEMBLY 53 2013 Prefi led Bills of KRS Chapter 218A to establish a BR 17 - Representative Mike that county; preclude the county from and loving memory of Duane Ray comprehensive system for medical Harmon (06/08/12) imposing an action on a fi rst through Skavdahl. fourth class city if that city has taken Adjourn in honor and loving marijuana in Kentucky, including provisions for medical verifi cation of AN ACT relating to driving no formal action regarding election memory of Duane Ray Skavdahl. need, persons allowed to cultivate, use, under the infl uence. day sales; amend KRS 244.295 to (Prefi led by the sponsor(s).) and possess the drug, organizations Amend various sections in remove the prohibition against the allowed to assist in providing the drug, KRS Chapter 189A, relating to driving sale of distilled spirits and wine on a BR 48 - Senator John Schickel regulation by the state Department for under the infl uence, to primary or election day in an urban- (10/03/12) Public Health, the interaction with restructure the existing penalties from county government; amend KRS state and local governments, including a four-tiered structure to a three-tiered 244.480 to permit the sale of malt A RESOLUTION adjourning law enforcement, with persons and structure; beverages on any primary, or regular, the Senate in loving memory and entities coming within the purview expand the look-back window for local option, or special election day; honor of Michael E. Apgar. of the Act, and establishing required prior offenses from fi ve years to ten authorize the legislative body or fi scal Adjourn in loving memory and honor reporting and review procedures; years, and to court of a fi rst through fourth class of Michael E. Apgar. amend KRS 218A.040 to conform; allow forfeiture of motor vehicles used city or the legislative body of any (Prefi led by the sponsor(s).) name the Act the Gatewood Galbraith in a DUI if the operator’s license had form of county government to adopt Medical Marijuana Memorial Act. been an ordinance to prohibit or limit the BR 49 - Senator John Schickel (Prefi led by the sponsor(s).) previously suspended; amend KRS hours and times of malt beverage sales (10/03/12) To: Interim Joint Committee 281A.2102 to conform. within its boundaries on any primary, on Judiciary (Prefi led by the sponsor(s).) or regular, local option, or special A RESOLUTION adjourning To: Interim Joint Committee election day; establish malt beverage the Senate in honor and loving memory BR 64 - Senator Robin L. Webb on Judiciary territorial limitations and county of Albert “Butch” Arlinghaus. government restrictions identical to Adjourn in honor and (10/12/12) BR 26 - Senator Denise Harper those for distilled spirits and wine; loving memory of Albert “Butch” AN ACT relating to controlled Angel (06/20/12) make technical changes; amend KRS Arlinghaus. 119.215 to conform; repeal KRS (Prefi led by the sponsor(s).) substances. Amend KRS 218A.205 to AN ACT relating to dating 242.100. replace the requirement that various violence. (Prefi led by the sponsor(s).) BR 50 - Senator Alice Forgy Kerr medical licensing boards promulgate Amend KRS 403.720 to To: Interim Joint Committee (09/17/12) administrative regulations establishing include persons in dating relationships on Licensing and Occupations AN ACT relating to violent mandatory prescribing and dispensing within the coverage of Kentucky’s offenders. standards related to controlled domestic violence laws. BR 45 - Representative David Floyd Amend KRS 439.3401 to substances with a requirement for (Prefi led by the sponsor(s).) (07/12/12) provide that persons convicted of the promulgation of recommended To: Interim Joint Committee criminal homicide under KRS Chapter guidelines. on Judiciary AN ACT relating to fi re 507 shall be classifi ed as a violent protection services. offender and subject to mandatory (Prefi led by the sponsor(s).) BR 40 - Representative Arnold Create a new section of KRS Chapter service of time and all applicable BR 65 - Representative Kim King Simpson (08/22/12) 75 to defi ne “city” and “fi re district”; restrictions on parole and service grant cities the primary right to credits. (08/02/12) AN ACT relating to the sale of provide fi re protection services (Prefi led by the sponsor(s).) AN ACT relating to legislative alcoholic beverages on election days. for city territory, subject to certain procedures for state fi scal measures. Amend KRS 244.290 to limitations; create a process for the BR 54 - Representative Dennis Create a new section of KRS permit the sale of distilled spirits provision of fi re protection services Keene (08/14/12) Chapter 6 to require roll call votes on and wine on any primary, or regular, to newly annexed territory; create a any appropriation or revenue raising local option, or special election day; formula to determine the proportion AN ACT relating to dogs. measure voted upon in the Senate authorize the legislative body or fi scal of fi re district indebtedness owed by Amend KRS 258.095 to or House or a committee thereof; court of a fi rst through fourth class the city and allow three years to pay amend the defi nition of who qualifi es require identifi cation of appropriation city or the legislative body of any this indebtedness; allow a fi re district as the owner of a dog to include or revenue measures as state fi scal form of county government to adopt to continue to provide fi re protection persons permitting the dog to remain measures by the Director of the an ordinance to prohibit or limit the services in certain situations if written on or about premises owned and Legislative Research Commission, or hours and times of distilled spirits and agreements are entered into with the occupied by the person. upon a determination by the Senate or wine sales within its boundaries on city; amend KRS 75.010, 75.020, and (Prefi led by the sponsor(s).) House or a committee of either; require any primary, or regular, local option, 75.040 to conform. To: Interim Joint Committee separate votes for appropriations or or special election day; limit the (Prefi led by the sponsor(s).) on Agriculture revenue measures; require committees changes regarding election day sales To: Interim Joint Committee to vote on appropriation and revenue to territories that already allow some on Local Government BR 55 - Senator Perry B. Clark measures by roll call votes. form of alcohol sales; forbid the fi scal (08/15/12) (Prefi led by the sponsor(s).) court of a county containing a fi rst BR 47 - Senator John Schickel To: Interim Joint Committee through fourth class city from changing (10/03/12) AN ACT relating to medical on Appropriations and Revenue an election day sales decision made by marijuana. a fi rst through fourth class city within A RESOLUTION in honor Create various new sections

 2012 Interim LEGISLATIVE RECORD BR 66 - Representative Kim King businesses to report annually and any primary, or regular, local option, or dextromethorphan that has been (08/02/12) allow for tax credit recapture in certain or special election day; limit the extracted from solid or liquid form; circumstances; amend KRS 152.20- changes regarding election day sales prohibit sale of products containing AN ACT relating to foreign 255 to provide that the total amount of to territories that already allow some dextromethorphan as the only active law. tax credits available in the Kentucky form of alcohol sales; forbid the fiscal ingredient to individuals younger Create new sections of KRS Investment Fund Act program and the court of a county containing a first than 18; require any person selling a Chapter 454 to establish legislative angel investor program is $40,000,000 through fourth class city from changing product containing dextromethorphan intent that the rights of an individual in all years; create a new section an election day sales decision made by to require that prospective buyers afforded under the Constitutions of the of KRS Chapter 141 to establish a first through fourth class city within show a photo ID and sign a document Commonwealth and the United States the credit; amend KRS 141.0205 to that county; preclude the county from stating the customer is older than 18 take precedence over the application provide the ordering of the credit. imposing an action on a first through before purchase; create an affirmative of any foreign law in any judicial (Prefiled by the sponsor(s).) fourth class city if that city has taken defense for the retailer if a minor or quasi-judicial proceeding; define To: Interim Joint Committee no formal action regarding election utilizes a fraudulent ID; prohibit specific terms; strictly construe waivers on Appropriations and Revenue day sales; amend KRS 244.295 to individuals younger than 18 from of constitutional rights; provide remove the prohibition against the possessing a product that contains exceptions for corporate entities; BR 82 - Senator Dennis Parrett sale of distilled spirits and wine on a dextromethorphan as the only active prohibit choice of venue outside of (08/22/12) primary or election day in an urban- ingredient; prohibit individuals the Commonwealth or United States county government; amend KRS younger than 18 from misrepresenting to preserve the constitutional rights of AN ACT relating to 244.480 to permit the sale of malt their age and from utilizing a the person against whom enforcement retirement. beverages on any primary, or regular, fraudulent ID to purchase or obtain is sought. Amend KRS 6.505 to close local option, or special election day; dextromethorphan; establish penalties (Prefiled by the sponsor(s).) the Legislators’ Retirement Plan to authorize the legislative body or fiscal for violation. To: Interim Joint Committee new participants effective August 1, court of a first through fourth class (Prefiled by the sponsor(s).) on Judiciary 2013; amend KRS 6.515 to increase city or the legislative body of any the cost of purchasing active duty form of county government to adopt BR 90 - Senator Tom Buford BR 68 - Representative Kim King military service to the full actuarial an ordinance to prohibit or limit the (09/19/12) (08/02/12) cost in the Legislators’ Retirement hours and times of malt beverage sales Plan, to prohibit service purchases within its boundaries on any primary, AN ACT relating to exemption AN ACT relating to school made on or after August 1, 2013, from or regular, local option, or special of religious organizations from the notification of persons authorized to being used to vest for retiree health election day; establish malt beverage insurance code. contact or remove a child. benefits in the Legislators’ Retirement territorial limitations and county Amend KRS 304.1-120, Create a new section of KRS Plan, and to require service purchased government restrictions identical to containing exclusions from the Chapter 620 to require the Cabinet on or after August 1, 2013, in the those for distilled spirits and wine; insurance code, to delete the religious for Health and Family Services, if Legislators’ Retirement Plan to assume make technical changes; amend KRS publication exclusion and substitute the cabinet is granted custody of a the earliest retirement date and cost- 119.215 to conform; repeal KRS a religious organization exemption; dependent, neglected, or abused child, of-living adjustments in determining 242.100. require notice for delivery to all to notify the school in which the child the appropriate actuarial cost; amend (Prefiled by the sponsor(s).) participants that sharing of medical is enrolled of persons authorized to KRS 6.525 to prohibit salary earned To: Interim Joint Committee expenses is not insurance and contact the child or remove the child in another state-administered system on Licensing and Occupations establish notice requirements; delete from school grounds. from being used to determine benefits the requirements that payments shall (Prefiled by the sponsor(s).) in the Legislators’ Retirement Plan if BR 88 - Representative Fitz Steele be made directly from one subscriber To: Interim Joint Committee the member does not have service in (08/14/12) to another, that subscriber amounts are on Education the other state-administered retirement voluntary with no assumption of risk systems prior to August 1, 2013; amend AN ACT relating to sales or promise to pay, and the verbatim BR 77 - Representative Arnold KRS 61.680 to conform and to make and use tax holidays and declaring an disclaimer statement. Simpson (08/14/12) technical amendments; EFFECTIVE emergency. (Prefiled by the sponsor(s).) August 1, 2013. Create a new section of KRS AN ACT relating to the angel (Prefiled by the sponsor(s).) Chapter 139 to establish a three day BR 91 - Representative David Floyd investor tax credit. To: Interim Joint Committee sales and use tax holiday the first (09/04/12) Create new sections of on State Government weekend in August each year to exempt Subchapter 20 of KRS Chapter 154 clothing, school supplies, school AN ACT relating to to establish the angel investor tax BR 84 - Senator John Schickel art supplies, computers, and school retirement. credit program for certain investments (08/23/12) computer supplies; EMERGENCY. Create a new Section of KRS in small businesses; define terms; 61.510 to 61.705 to prohibit future state Act’s title and purposes; list AN ACT relating to the sale of (Prefiled by the sponsor(s).) members of the General Assembly requirements for small businesses and alcoholic beverages on election days. To: Interim Joint Committee from participating in the Kentucky investors to qualify for participation; Amend KRS 244.290 to on Appropriations and Revenue Employees Retirement System unless require the Kentucky Economic permit the sale of distilled spirits they participated in the Kentucky Development Finance Authority and wine on any primary, or regular, BR 89 - Representative Fitz Steele Employees Retirement System as a (KEDFA) to establish the application local option, or special election day; (08/29/12) member of the General Assembly process; cap the total amount of angel authorize the legislative body or fiscal prior to August 1, 2013; allow current investor and Kentucky Investment court of a first through fourth class AN ACT relating to members of the General Assembly Fund Act tax credits available in all city or the legislative body of any dextromethorphan abuse. participating in the Kentucky years at $40,000,000; require KEDFA form of county government to adopt Create new sections of Employees Retirement System to make to maintain a Web site listing all an ordinance to prohibit or limit the KRS Chapter 218A to prohibit any a one-time election to discontinue businesses and investors certified hours and times of distilled spirits and person from possessing one gram participation; amend KRS 6.505 to and all credits awarded; require small wine sales within its boundaries on or more of pure dextromethorphan close the Legislators’ Retirement Plan

THE KENTUCKY GENERAL ASSEMBLY 55 to new members effective August 1, not limit or amend the provisions of sections of KRS Chapter 6 to establish including the operation of gaming at 2013, and to allow current members this statute, which shall remain in full the Legislators’ Defined Contribution horse racing tracks, will be permitted of the General Assembly participating force and effect. Plan for legislators who begin their first in the county; submit to the voters for in the Legislators’ Retirement Plan to term of office on or after the effective ratification or rejection; include ballot make a one-time election to discontinue (Prefiled by the sponsor(s).) date of the Act; provide that the plan language. participation; amend KRS 61.510 and shall be administered by the Kentucky BR 176 - Representative Linda 61.680 to conform. BR 149 - Representative Michael J. Deferred Compensation Authority; Belcher (10/03/12) Nemes (09/19/12) allow the authority to utilize plans (Prefiled by the sponsor(s).) already established or to establish new AN ACT relating to AN ACT relating to non- plans to administer the Legislators’ reemployment after retirement. BR 92 - Representative David Floyd felony expungements. Defined Contribution Plan; provide an Amend KRS 61.637 to (09/04/12) Amend KRS 431.078, relating employer match of up to 5 percent of provide that local school districts shall to expungement of misdemeanor and the legislator’s wages; provide that a not be required to reimburse Kentucky AN ACT relating to violation arrest records, to clarify that legislator participating in the plan shall Retirement Systems for retiree health retirement. the term “violation” as used in that be vested for employer contributions care premiums on reemployed retirees Amend KRS 6.525 to prohibit members statute has the same meaning as set on a sliding scale that fully vests who work less than 80 days a year. of the Legislators’ Retirement Plan, out in the Kentucky Penal Code. the legislator for the employer BRs by Sponsor who begin contributing on or after (Prefiled by the sponsor(s).) contributions at six years; provide * - denotes primary sponsorship of August 1, 2013, from using salary that the benefits under the Legislators’ BRs earned in another state-administered BR 166 - Representative Jesse Defined Contribution Plan shall not retirement system or plan to calculate Crenshaw (10/01/12) constitute an inviolable contract of Senate benefits in the Legislators’ Retirement the Commonwealth; amend KRS Plan; allow members of the Legislators’ AN ACT proposing an 18A.245 to establish responsibilities Buford, Tom Retirement Plan contributing to the amendment to Section 145 of the of the board of the Kentucky Deferred BR90*, 99* plan prior to August 1, 2013, to make a Constitution of Kentucky relating to Compensation Authority to administer Clark, Perry B. one-time election to have their benefits persons entitled to vote. the Legislators’ Defined Contribution BR55* from the Legislators’ Retirement Propose to amend Section Plan; amend KRS 61.510, governing Harper Angel, Denise Plan based solely on their legislative 145 of the Constitution of Kentucky the Kentucky Retirement Systems, to BR26* salary. to allow persons convicted of a felony clarify that a legislator who begins his Kerr, Alice Forgy (Prefiled by the sponsor(s).) other than treason, intentional killing, or her first term of office on or after BR50* a sex crime, or bribery the right to vote the effective date of the Act shall not Parrett, Dennis BR 99 - Senator Tom Buford after expiration of probation, final participate in these plans as a result BR82* (09/11/12) discharge from parole, or maximum of service in the General Assembly; Schickel, John expiration of sentence; submit to the amend KRS 61.680 to conform. BR47*, 48*, 49* AN ACT relating to voters for ratification or rejection. BR84* retirement. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) Webb, Robin L. Amend KRS 6.505 to close the BR64* Legislators’ Retirement Plan to new BR 167 - Representative Steve Riggs BR 168 - Representative Ron Crimm members who take office on or after (10/05/12) (09/28/12) House August 1, 2013; amend KRS 61.510 to close the Kentucky Employees AN ACT relating to retirement AN ACT relating to Belcher, Linda Retirement System to members of the benefits for legislators. retirement. BR176* General Assembly who take office on Amend KRS 6.505 to close Amend KRS 6.525 to Crenshaw, Jesse or after August 1, 2013; amend KRS the Legislators’ Retirement Plan to prohibit salary earned in another state BR166* 61.680 to conform. legislators who have not previously administered system from being used Crimm, Ron participated in the plan and who begin to determine benefits in the Legislators’ BR168* (Prefiled by the sponsor(s).) their first term of office on or after Retirement Plan if the member does Floyd, David the effective date of the Act; amend not have service in the other state- BR45*, 91*, 92* BR 103 - Representative Stan Lee KRS 6.520 to provide that retirement administered retirement systems prior Harmon, Mike (09/24/12) benefits in the Legislators’ Retirement to August 1, 2013. BR17* Plan shall be based upon the legislator’s (Prefiled by the sponsor(s).) Keene, Dennis AN ACT relating to highest 5 years of salary rather than BR54* abortions. his or her highest 3 years of salary; BR 172 - Representative Michael J. King, Kim Create a new section of amend KRS 6.525 to prohibit salary Nemes (10/22/12) BR65*, 66*, 68* Subtitle 17A of KRS Chapter 304 to earned in another state-administered Lee, Stan define “health benefit exchange” and system from being used to determine AN ACT proposing to create BR103* “small employer” for the purposes of benefits in the Legislators’ Retirement a new section of the Constitution of Nemes, Michael J. health benefit exchange group health Plan if the member does not have Kentucky and to amend Section 226 of BR149*, 172* plans; prohibit abortion coverage by a service in the other state-administered the Constitution of Kentucky relating Riggs, Steve qualified health benefit plan through a retirement systems prior to the to gaming. BR167* health benefit exchange in accordance effective date of the Act; limit the use Propose to create a new section Simpson, Arnold with the opt-out provision of the federal of salary credited to other retirement of the Constitution of Kentucky and to BR40*, 77* Patient Protection and Affordable systems in calculating benefits in the amend Section 226 of the Constitution Steele, Fitz Care Act; amend KRS 304.5-160 to Legislators’ Retirement Plan if the of Kentucky to authorize the General BR88*, 89* conform; amend KRS 311.800 to member does have service in the other Assembly to provide a means whereby provide that the amendments to KRS state-administered systems prior to the the sense of the people of any county Index Headings Chapter 304 contained in this Act shall effective date of the Act; create new may be taken as to whether casinos,

56 2012 Interim LEGISLATIVE RECORD Administrative Regulations and Sales violation records, process for - Proceedings Science and Technology Civil Actions BR149 Alcoholic Beverages Secretary of State Alcoholism Small Business Dog owner liability, definition of Crime Victims Amusements and Recreation Special Districts owner - BR54 Appropriations State Agencies Domestic violence, coverage of dating Violent offender, criminal homicide, Arbitration Substance Abuse couples - BR26 all - BR50 Budget and Financial Administration Taxation Foreign law, application of, protection Children and Minors Taxation, Income--Individual of rights - BR66 Crimes and Punishments Cities Taxation, Sales and Use Civil Actions Tourism Civil Procedure DUI, penalties imposed - BR17 Civil Procedure Trade Practices and Retailing Felons’ voting rights, constitutional Civil Rights Traffic Safety Abused or neglected child, custody of, amendment to provide - BR166 Consolidated Local Governments Wines and Wineries notice to schools - BR68 Medical marijuana, authorization and Constitution, Ky. Women Domestic violence, coverage of dating regulation of - BR55 Contracts couples - BR26 Violent offender, criminal homicide, Corrections and Correctional Facilities, BR Index Foreign law, application of, protection all - BR50 State of rights - BR66 Counties Administrative Regulations and Criminal Procedure Counties, Urban Proceedings Civil Rights Courts, District DUI, penalties imposed - BR17 Crime Victims Foreign law, application of, protection Foreign law, application of, protection Expungement of misdemeanor and Crimes and Punishments of rights - BR66 of rights - BR66 violation records, process for - Criminal Procedure BR149 Distilled Spirits Alcoholic Beverages Consolidated Local Governments Medical marijuana, authorization and Dogs regulation of - BR55 Domestic Relations Primary or election day, alcohol sales Casinos and gaming at horse racing Violent offender, criminal homicide, Drugs and Medicines permitted during - BR40; BR84 tracks, constitutional amendment to all - BR50 Economic Development let county voters decide - BR172 Education, Elementary and Secondary Alcoholism Distilled Spirits Education, Finance Constitution, Ky. Effective Dates, Delayed DUI, penalties imposed - BR17 Primary or election day, alcohol sales Effective Dates, Emergency Casinos and gaming at horse racing permitted during - BR40; BR84 Elections and Voting Amusements and Recreation tracks, constitutional amendment to Federal Laws and Regulations let county voters decide - BR172 Dogs Firefighters and Fire Departments Casinos and gaming at horse racing Voting rights for felons, constitutional Gambling tracks, constitutional amendment to admend to provide - BR166 Dog owner liability, definition of General Assembly let county voters decide - BR172 owner - BR54 Health and Medical Services Contracts Highways, Streets, and Bridges Appropriations Domestic Relations Hospitals and Nursing Homes Foreign law, application of, protection Insurance Roll call vote, requirement for - BR65 of rights - BR66 Domestic violence, coverage of dating Insurance, Health couples - BR26 Judges and Court Commissioners Arbitration Corrections and Correctional Foreign law, application of, protection Legislative Research Commission Facilities, State of rights - BR66 Licensing Foreign law, application of, protection Local Government of rights - BR66 Violent offender, criminal homicide, Drugs and Medicines Malt Beverages all - BR50 Memorials Budget and Financial Controlled substances, prescribing and Men Administration Counties dispensing standards - BR64 Motor Vehicles Dextromethorphan, possession and Nurses Roll call vote, requirement for - BR65 Casinos and gaming at horse racing retail sale, prohibition - BR89 Optometrists tracks, constitutional amendment to Medical marijuana, authorization and Parental Rights Children and Minors let county voters decide - BR172 regulation of - BR55 Pharmacists Local governments, power to prohibit Physicians and Practitioners Abused or neglected, custody of, primary or election day alcohol sales Economic Development Popular Names and Short Titles notice to schools - BR68 within - BR40; BR84 Probation and Parole Dextromethorphan, possession and Angel investor tax credit program, Prosecutors retail sale, prohibition - BR89 Counties, Urban creation of - BR77 Public Health Casinos and gaming at horse racing Public Officers and Employees Cities Casinos and gaming at horse racing tracks, constitutional amendment to Public Records and Reports tracks, constitutional amendment to let county voters decide - BR172 Racing Fire protection services in annexed or let county voters decide - BR172 Enhanced incentive counties, angel Real Estate incorporated territory - BR45 investments in - BR77 Religion Local governments, power to prohibit Courts, District Kentucky Investment Fund Act, credit Reproductive Issues primary or election day alcohol sales cap, amendment of - BR77 Retirement and Pensions within - BR40; BR84 Expungement of misdemeanor and

THE KENTUCKY GENERAL ASSEMBLY 57 Education, Elementary and Plan to new members - BR82 Medical Marijuana Act - BR55 Secondary cost of purchasing service credit - Primary or election day, licensed BR82 alcohol sales permitted during - Probation and Parole Abused or neglected child, custody of, discontinue coverage for new BR40; BR84 notice to schools - BR68 members and allow opt-out for Violent offender, criminal homicide, current members - BR91 Local Government all - BR50 Education, Finance restriction of account consolidation with other state systems - BR82; Cities and counties, power to prohibit Prosecutors CERS, limit health reimbursement BR167, 168 primary or election day alcohol sales paid to the system by school districts Roll call vote for appropriation or within - BR40; BR84 Violent offender, criminal homicide, for reemployed retirees - BR176 revenue measure, requirement for - Fire protection services in annexed or all - BR50 BR65 incorporated territory - BR45 Effective Dates, Delayed Public Health Health and Medical Services Malt Beverages August 1, 2013 - BR82 Medical marijuana, authorization and Controlled substances, prescribing and Primary or election day, alcohol sales regulation of - BR55 Effective Dates, Emergency dispensing standards - BR64 permitted during - BR40; BR84 Medical marijuana, authorization and Public Officers and Employees Sales tax holiday - BR88 regulation of - BR55 Memorials Legislators’ Retirement Plan, account Elections and Voting Highways, Streets, and Bridges Apgar, Michael E., memorializing - consolidation with other state BR48 systems, restriction of - BR92 Casinos and gaming at horse racing DUI, penalties imposed - BR17 Arlinghaus, Albert “Butch,” Legislators, discontinue retirement tracks, constitutional amendment to memorializing - BR49 benefits for new members - BR99 let county voters decide - BR172 Hospitals and Nursing Homes Skavdahl, Duane Ray, memorializing Retirement, Felons’ voting rights, constitutional - BR47 close Legislators’ Retirement Plan to amendment to provide - BR166 Abortion, publicy owned medical new members and restrict account Primary or election day, alcohol sales facility, prohibition to remain in Men consolidation - BR82 permitted during - BR40; BR84 effect - BR103 closing of Legislators’ Retirement Plan Domestic violence, coverage of dating to new entrants and establishment Federal Laws and Regulations Insurance couples - BR26 of new plan - BR167 discontinue benefits for new Patient Protection and Affordable Care Health benefit exchange, abortion Motor Vehicles legislators and allow opt-out for Act, health benefit exchange abortion coverage by qualified plans, current legislators - BR91 coverage, prohibition - BR103 prohibition - BR103 DUI, penalties imposed - BR17 limit health reimbursement paid Health, to CERS by school districts for Firefighters and Fire Departments religious organization, exclusion from Nurses reemployed retirees - BR176 code, notice requirements - BR90 Fire protection services in annexed or religious publication requirements, Controlled substances, prescribing and Public Records and Reports incorporated territory - BR45 delete - BR90 dispensing standards - BR64 Expungement of misdemeanor and Gambling Insurance, Health Optometrists violation records, process for - BR149 Casinos and gaming at horse racing Health benefit exchange, abortion Controlled substances, prescribing and tracks, constitutional amendment to coverage by qualified plans, dispensing standards - BR64 Racing let county voters decide - BR172 prohibition - BR103 Religious Parental Rights Casinos and gaming at horse racing General Assembly organization, health insurance code, tracks, constitutional amendment to exclude - BR90 Foreign law, application of, protection let county voters decide - BR172 Casinos and gaming at horse racing publication requirements, delete - of rights - BR66 tracks, constitutional amendment to BR90 Real Estate let county voters decide - BR172 Pharmacists Legislators’ Retirement Plan, account Judges and Court Commissioners Dog owner liability, definition of consolidation with other state Controlled substances, prescribing and owner - BR54 systems, restriction of - BR92 Retirement, restriction of account dispensing standards - BR64 Medical marijuana, authorization and consolidation with other state Religion regulation of - BR55 systems - BR168 Physicians and Practitioners Retirement coverage for new members, Foreign law, application of, protection discontinuance of - BR99 Legislative Research Commission Controlled substances, prescribing and of rights - BR66 Retirement, dispensing standards - BR64 Health coverage, religious organization benefit calculation to be based upon Designation of appropriation or Medical marijuana, authorization and exclusion from the insurance code, high 5 years of salary rather than revenue measure, requirement for - regulation of - BR55 requirements for - BR90 high 3 - BR167 BR65 Medical expense sharing, notice closing of Legislators’ Retirement Plan Medical marijuana, authorization and Popular Names and Short Titles requirements, establish - BR90 to new entrants and establishment regulation of - BR55 of new plan - BR167 Bryan Durman Act, BR0050 - BR50 Reproductive Issues closing of Legislators’ Retirement Licensing Gatewood Galbraith Memorial

58 2012 Interim LEGISLATIVE RECORD Health benefit exchange, abortion Special Districts coverage by qualified plans, prohibition - BR103 Fire districts, fire protection services in annexed or incorporated territory Retirement and Pensions - BR45

CERS, retiree health reimbursements State Agencies paid to system by school districts for reemployed retirees - BR176 Health and Family Services, custody Judicial Retirement Plan, restriction of abused or neglected child, notice of account consolidation with other to schools - BR68 state systems - BR168 Medical marijuana, authorization and KERS, regulation of - BR55 discontinue benefits for new legislators - BR99 Substance Abuse discontinue benefits for new legislators and allow opt-out for Dextromethorphan, possession and current legislators - BR91 retail sale, prohibition - BR89 Legislators’ DUI, penalties imposed - BR17 Retirement Plan, account consolidation with other state systems, restriction Taxation of - BR92 Retirement Plan, benefit to be based Angel investor tax credit program, upon high 5 years of salary rather creation of - BR77 than high 3 - BR167 Roll call vote, requirement for - BR65 Retirement Plan, close plan to new Sales and use tax, holiday - BR88 entrants - BR99 Retirement Plan, close plan to new Taxation, Income--Individual entrants and allow opt-out for current members - BR91 Angel investor tax credit program, Retirement Plan, closing of plan to creation of - BR77 new entrants and establishment of new plan - BR167 Taxation, Sales and Use Retirement Plan, closing of plan to new members - BR82 Holiday - BR88 Retirement Plan, cost of purchasing service credit - BR82 Tourism Retirement Plan, restriction of account consolidation with other Casinos and gaming at horse racing state systems - BR82; BR168 tracks, constitutional amendment to Retirement Plan, restriction of account let county voters decide - BR172 consolidation with other systems - BR167 Trade Practices and Retailing

Sales Dextromethorphan, possession and retail sale, prohibition - BR89 Primary or election day, alcohol sales permitted during - BR40; BR84 Traffic Safety

Science and Technology DUI, penalties imposed - BR17

Angel investments in knowledge- Wines and Wineries based businesses, tax credit for, creation of - BR77 Primary or election day, alcohol sales permitted during - BR40; BR84 Secretary of State Women Casinos and gaming at horse racing tracks, constitutional amendment to Domestic violence, coverage of dating let county voters decide - BR172 couples - BR26 Foreign law, application of, protection Small Business of rights - BR66 Angel investments in small businesses, tax credit for, creation of - BR77 Dextromethorphan, possession and retail sale, prohibition - BR89

THE KENTUCKY GENERAL ASSEMBLY 59

LRC Publications Informational Bulletins

238 General Assembly Action 2012 Regular Session 237 Final Reports of the Interim, Joint, Special, and Statutory Committees 2011 236 Issues Confronting the 2012 Kentucky General Assembly 235 General Assembly Action 2011 Regular Session 234 Final Reports of the Interim, Joint, Special, and Statutory Committees 2010 233 Issues Confronting the 2011 Kentucky General Assembly 232 General Assembly Action 2010 Regular Session 231 Final Committee Reports of the Interim, Joint, Special, and Statutory Committees 230 Issues Confronting the 2010 Kentucky General Assembly 229 General Assembly Action 2009 Regular Session 228 Final Reports of the Interim Joint, Special, and Statutory Committees 2008 227 Issues Confronting the 2009 General Assembly: An update of Informational Bulletin No. 224 (2008) 226 General Assembly Action, Regular Session 2008 225 Final Reports of the Interim Joint, Special and Statutory Committees (2007) Research Reports 391 Highly Skilled Educator Program Follow-up Report 390 Air Service at Kentucky’s Commercial Airports 389 2011 School Finance Report 388 Reporting Total Revenue: On-behalf Payments and Local Activity Funds 387 Compendium of State Education Rankings 2011 386 Study of the Kentucky Educational Excellence Scholarship

60 2012 Interim LEGISLATIVE RECORD THE KENTUCKY GENERAL ASSEMBLY 61  2012 Interim LEGISLATIVE RECORD THE KENTUCKY GENERAL ASSEMBLY 63 David L. Williams Greg Stumbo The Kentucky Legislative Research Commis- SENATE PRESIDENT HOUSE SPEAKER sion is a 16-member committee of the major- Katie Kratz Stine Larry Clark ity and minority leadership of the Kentucky PRESIDENT PRO TEM SPEAKER PRO TEM Senate and House of Representatives. Under Robert Stivers Rocky Adkins Chapter 7 of the Kentucky Revised Statutes, Majority FLOOR LEADER MAJORITY FLOOR LEADER the LRC constitutes the administrative office for the General Assembly. Its director serves as R.J. Palmer Jeff Hoover chief administrative officer of the Legislature MINORITY FLOOR LEADER MINORITY FLOOR LEADER when it isn’t in session. Dan Seum Robert Damron MAJORITY CAUCUS CHAIRMAN MAJORITY CAUCUS CHAIRMAN The Commission and its staff, by law and by practice, perform numerous fact-finding Johnny Ray Turner Bob DeWeese and service functions for members of the MINORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN Legislature, employing professional, clerical Carroll Gibson Tommy Thompson and other employees required when the MAJORITY WHIP MAJORITY WHIP General Assembly is in session and during Jerry Rhoads Danny Ford the interim period between sessions. These MINORITY WHIP MINORITY WHIP employees, in turn, assist committees and individual legislators in preparing legislation. 2012 Interim Other services include conducting studies Bobby Sherman, Director and investigations, organizing and staffing LEGISLATIVE Legislative committee meetings and public hearings, Research Commission maintaining official legislative records and RECORD other reference materials, providing infor- Robert Jenkins mation about the Legislature to the public, Published monthly by the Deputy Director for Committee compiling and publishing administrative Legislative Research Commission, and Staff Coordination regulations, administering a legislative intern the Interim RECORD is designed program, conducting orientation programs to inform the citizens of Kentucky Rob Weber for new legislators, and publishing a daily of the between-sessions work of the Public Information Officer index and summary of legislative actions General Assembly. during sessions. Joe Cox Paper subscriptions are free upon Publications and Printing Officer The LRC is also responsible for statute revi- request. Contact LRC’s Public sion, publishing and distributing the Acts Information Office, Capitol Annex, Rebecca Mullins Hanchett and Journals following sessions, and for Frankfort, KY 40601, 502-564- Editor, Typography and Design maintaining furnishings, equipment and 8100, ext. 307 to subscribe. supplies for the Legislature. It also functions Mike Sunseri The Interim RECORD can also Chief Photographer as Kentucky’s Commission on Interstate be read on-line at www.lrc.ky.gov/ Cooperation in carrying out the program legislation.htm. If you have a paper Karen Bourne of the Council of State Governments as it subscription and would like to end relates to Kentucky. Jeff Fossett your subscription and read the Steve Gatewood Interim RECORD on-line only, Bruce Phillips please call 502-564-8100, ext. 307 or Bud Kraft send a request by e-mail to bruce. [email protected]. Keith Krey Jeanie Mitchell Scott Payton Stories may be reprinted without Amy Rose Karr permission, although credit is Public Information Staff appreciated.

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