October

Volume 31, No. 6

Juvenile justice gaps targeted by state by Rebecca Hanchett “It has brought into sharp relief the num- LRC Public Information bers that we see in Kentucky that are pretty stark, depending on which county you’re looking at,” FRANKFORT— Nearly two years after leg- said Westerfield. “We see a very disproportion- islation to reduce the number of minority youth ate number of youth of color in the system (in in Kentucky’s juvenile justice system stalled in some parts of the state). It is out of proportion committee, the state Senate Judiciary Commit- to their share of the population. It shouldn’t be tee chairman says he will champion similar leg- that way.” islation in 2019. States are required to try and reduce dispro- Senate Judiciary Committee Chair Sen. portionate minority contact, or DMC—which Whitney Westerfield, R-Hopkinsville, an- the U.S. Department of Justice characterizes on nounced at the Oct. 5 Interim Joint Committee its website as “overrepresentation of minority on Judiciary his intention to file legislation ad- youth in the nation’s juvenile justice system”— dressing “disproportionate minority contact” in per federal law passed by Congress in 2002. the state’s justice system during the upcoming Westerfield said his 2019 proposal will in- 2019 session. Westerfield was also the spon- Rep. , D-Paducah, at left, talks with Sen. corporate input based on DMC data from vari- sor of 2017 Senate Bill 20, aimed at reducing Danny Carroll, R-Paducah, during the Oct. 5 meeting. ous state agencies including the Administrative the disproportionate number of mainly Afri- Office of the Courts. Data shared by the AOC’s can-American youth in Kentucky’s justice sys- cial imbalance among minors in the state’s juve- tem. nile justice system became clear after Kentucky The West Kentucky lawmaker said the ra- passed juvenile justice reforms in 2014. Continued on page 2 Lawmakers study protections for the vulnerable by Rebecca Hanchett Office of Homeland Security (KOHS) Executive messages by text rather than by voice only and LRC Public Information Director John Holiday told the Interim Joint allowing photos to be sent as part of a 911 call. Committee on Local Government on Sept. 26. To help the state’s 115 911-call centers move FRANKFORT—State legislators have re- “GIS as a whole must be elevated in stature if toward NG911, Sunseri said his agency has ap- ceived the 411 on the state’s plans to improve 911 Kentucky hopes to compete on a national scale.” plied for a $1.7 million four-year federal NG911 service in Kentucky using real-time mapping of Laying out KOHS’s plan to improve its grant. With a required local match, the grant caller data and locations. statewide 911 capabilities was KOHS Deputy would provide nearly $2.9 million for NG911 “Geo-information systems – GIS – is a criti- Executive Director and Kentucky 911 Services improvements now under discussion. cal element of innovative, 21st century emergen- Board Administrator Mike Sunseri. Sunseri said “The (Kentucky 911 Services) Board has re- cy communications. In 911, as in so many other moving from voice-only 911 to next-generation ceived great feedback from the 911 community facets of life these days, timely and accurate map- 911, or NG911, would improve both locator and thus far. The one common element shared by ping data is of paramount importance,” Kentucky messaging capabilities – including sending 911 Continued on page 2 THE KENTUCKY GENERAL ASSEMBLY 1 Juveniles, from page 1 Department of Family and Juvenile Services kids of color—in all actuality up to three years, Executive Officer Rachel Bingham showed that she said. “Are we more harshly charging our African American youth are the most overrep- youth out in the community just because of our resented in the state’s justice system. own … biases that we related to our own his- Eleven percent of the state’s youth popu- tory? What’s the difference between those non- lation is African American while 81 percent of school related (charges)?” the same population is white, said Bingham. Yet AOC Director Laurie Dudgeon said some for the first six months of 2017, 25 percent of suggestions of the state Juvenile Justice Over- the more than 12,000 complaints made to the sight Council (JJOC) that lawmakers may want state’s Court Designated Worker (CDW) pro- to consider are: eliminating charges for children gram (which processes criminal and noncrim- under age 12, instead referring them to FAIR inal complaints against juveniles) were levied (Family, Accountability, Intervention and Re- against African American youth. That percent- sponse) teams created under the 2014 juvenile age dropped slightly to 22 percent for the same reforms; mandatory diversion of certain cases, period this year, she said. and; close examination of the state’s youthful of- “Again, if you look at the 25 (percent) and fender law. 22 (percent)—over double of what our youth “We see the disparity numbers much less population is for African American youth at 11 coming out of our schools than when we don’t percent. We consider that to be disproportion- know people at all,” Dudgeon said. “And I think Rep. , D-Shively, asks a question during the ate,” said Bingham. that’s based on the really objective set of crite- Oct. 5 Interim Joint Committee on Judiciary meeting in Frankfort. Data regarding “public offenses” – or of- ria we have for our status offenses. I think if we fenses committed by juveniles which are treat- could take another look at the youthful offender ed the same as adult crimes – for the first six statute that would be a great place to start.” lent crime is coming from these areas,” he said. months of this year also showed disparities be- Juvenile Justice Advisory Board member “So it would only stand to reason that there tween African American and white youth, she Pastor Edward Palmer, Sr. suggested that law- would be more contact. And to try and make told lawmakers. African Americans youth com- makers also consider mandatory diversion for the contact some correlation between the popu- prise 16 percent of charges for public offenses eligible children in the juvenile justice system. lation is, to me, unfair and is not in the interest at school, and 29 percent of charges for public “What we know from research is that the of justice.” offenses out in the community. deeper they go in, the more likely they are … to Rep. Joni Jenkins, D-Shively, said children The state looked at national research into end up part of the adult criminal system,” Palm- entering the justice system at a young age is one why the percentages are so different, said Bing- er said. of her concerns. ham, and found that the answer may rest in how Sen. John Schickel, R-Union, said lawmak- “I think the younger you bring a child into we see African American youth out in the com- ers should also consider where crime occurs the system, the worse your outcomes are. So I munity. when looking at why numbers are what they are. think that’s one area that we should look at – are “We do know that research says there is a “There’s nowhere in this presentation that we criminalizing children of color at a higher way that we see kids of color and we actually age addresses the fact that the vast majority of vio- rate than we are white children?” she said. 911 Services, from page 1 those in the trenches … (is) GIS,” which Sunseri dotally to that question, specifically mentioning istrative funds in reserve now to cover the first said Kentucky’s 911 stakeholders want factored Owensboro – which Sunseri said spends $8,000 year or two in matching funds, should the grant into the state’s 911 plan. That plan, he said, has a month to maintain their GIS data. Fleming said be awarded. not been updated since it was created in 2009. the statewide figure would run into millions of “But we would never turn money away from “We’ve enlisted a technical consultant to help dollars. the General Assembly should this august body us in that matter and (the plan will be updated) “I can tell you one thing, it’s well north deem it a worthy use of general fund dollars, by the end of the calendar year,” said Sunseri. of probably about $10 million to do that,” said and we will be making a formal request in some NG911 updates would come later for most 911 Fleming. “But … every life is important, and it manner,” Sunseri said. call centers around the state. might be worth it.” Some lawmakers wanted to discuss chang- Rep. Ken Fleming, R-Louisville, asked Sun- Rep. DJ Johnson, R-Owensboro, asked if es at the Kentucky 911 Services Board, former- seri what the cost to create a fully GIS-based the local matching funds for the NG911 grant ly called the CMRS (Commercial Mobile Radio statewide 911 system would be. Sunseri said he are available now or not. Sunseri said there are only has enough information to respond anec- enough Kentucky 911 Services Board admin- Continued on page 3

2 2018 Interim LEGISLATIVE RECORD Legislative panel considers bank tax reform by Jim Hannah ing banks was found to be unconstitutional.” LRC Public Information In response, the industry employed tax professionals and lawyers to work with the state FRANKFORT – Don’t bank on the fact “When a bank’s capital revenue cabinet to develop what is now called that small-town banks will survive – at least remains at work locally, it the “bank franchise tax” which at the time was in Kentucky. The Kentucky Bankers Asso- the model being used in most states across the ciation told state lawmakers in a Sept. 25 ripples through local country, he said. The new model still taxed banks meeting that the commonwealth’s tax struc- economies so as to be at about the same rate as other corporations. ture is jeopardizing community banks. multiplied.” “That all began to change in 2005 when Kentucky taxes its banks at a rate higher than Kentucky lowered the top tax rate on corpo- any other state in the nation at an average effec- rations from 8.25 percent to 6 percent with tive tax rate of 13.3 percent, said bankers associ- no change to the bank tax model – leav- ation President Ballard Cassady while testifying Ballard Cassady ing banks at 8.25 percent,” Cassady said. before the Interim Joint Committee on Banking President, It only got worse with the Dodd-Frank and Insurance. He added that Indiana’s effec- Wall Street Reform and Consumer Protection tive tax rate for its banks is 6.5 percent, Ohio’s Kentucky Bankers Association Act of 2010, he said. The federal regulations is 7.74 percent and Tennessee’s is 9.33 percent. forced every bank to move more of their as- Cassady said that is why banks in other states sets into capital, the primary component of the can buy Kentucky banks and essentially fund state bank franchise tax. Cassady said that im- that purchase with tax savings. He explained that factor of 10 – enlarging the local tax base and mediately skewed state banks’ tax rate upward. acquiring banks do this by reducing the number growing Kentucky’s tax revenue the right way.” Sen. Morgan McGarvey, D-Louisville, of employees, branches and moving investment Senate Majority Caucus Chair Dan “Mala- asked what types of institutions are negative- portfolios to other states. Nine Kentucky banks no” Seum, R-Fairdale, asked for a clarification ly impacted by the bank franchise tax. “Are have been purchased by out-of-state institutions of the word “franchise” as used in describing you talking about the JPMorgan Chase of the since 2014, according to the bankers association. Kentucky’s bank tax. Cassady said the use of world or Kentucky community banks?” he said. To make matters worse, Cassady said, the word is somewhat misleading because it Cassady said it is the state’s community Kentucky is taxing its banks at a rate that is doesn’t mean banks are franchised like many banks that are being crushed by the franchise an average of 92 percent higher than it taxes fast-food restaurants. He said the word “fran- tax. “It is more than a 10-ton gorilla sitting on any other corporation in the commonwealth. chise” just refers to the industry-specific tax. their chest,” he said. “They are not only bur- But that 92 percent imbalance is just the Rep. Joseph M. Fischer, R-Fort Thomas, dened with the compliance costs that came out average, Cassady said. For example, First Com- said calling it a “franchise tax” is a misnomer. of the Dodd-Frank ... but also the huge tax bur- munity Bank of the Heartland in Hickman was He said it is a “tax on capital.” Fischer then asked den they are going to have at the end of the year.” taxed at a rate that was 100 percent higher. First for a brief history of state tax policy on banks. Sen. John Schickel, R-Union, asked what the State Financial in Middlesboro was taxed at a rate Cassady said the disparity between bank state bankers association’s next step was in try- that was 130 percent higher. Bank of Cadiz was tax rates and all other corporations in Ken- ing to get tax reform for their industry during taxed at a rate that was 200 percent higher. And tucky could be traced to a series of events that the upcoming session. Cassady said his orga- Kentucky Farmers Bank in Ashland was taxed began in 1995. Before that, the taxes on banks nization would be asking that banks be taxed at a rate that was 1,000 percent higher, he said. and other corporations had different names the same way, and at the same rate, as other “When a bank’s capital remains at work but the overall rate differed very little, he said. corporations in the commonwealth. He added locally, it ripples through local economies so “In 1995, we had a court case that made its that the organization would provide additional as to be multiplied,” Cassady said of the im- way from the Kentucky Supreme Court to the details of how they would like to see that tran- portance of providing community banks tax United State Supreme Court and back,” Cassady sition take place during an upcoming Interim relief. “Some economists say by as much as a said. “Along the way, Kentucky’s method of tax- Joint Committee on Appropriations & Revenue. 911 Services, from page 2 Service) Board. Comments were made about a clusively for 911 call center grants,” said Sunseri. funds. recent four-year state audit that Sunseri said The funds were repaid from the board’s ad- “I just hope that there are consequences for found improper accounting practices undertak- ministrative fund, Sunseri told lawmakers. people who did that, as opposed to just losing en by a past board that were uncovered by the Rep. , D-Louisville, thanked the their job or their position, that we pursue con- audit, requested by KOHS. The audit showed the agency for cooperating with the state audit. sequences” said Riggs. “Otherwise, if we don’t past board improperly spent more than $250,000 He added that there should be tough “conse- – if there are no consequences other than losing “from a fund dedicated by statute to be used ex- quences” for those who improperly handled the your position – it will just continue to grow.” THE KENTUCKY GENERAL ASSEMBLY 3 2019 Regular Session Calendar

4 2018 Interim LEGISLATIVE RECORD General 2018 Assembly Senate

Julie Raque Adams (36) Jimmy Higdon (14) John Schickel (11) 213 S Lyndon Lane 344 N Spalding PO Box 991 Louisville, KY 40222 Lebanon, KY 40033 Union, KY 41091 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-692-6945 Wil Schroder (24) Ralph Alvarado (28) Paul Hornback (20) 702 Capitol Ave 3250 McClure Road 6102 Cropper Rd Annex Room 209 Winchester, KY 40391 Shelbyville, KY 40065 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 Joe Bowen (8) Stan Humphries (1) Dan “Malano” Seum (38) 2031 Fieldcrest Dr 763 Sinking Fork Rd 1107 Holly Ave Owensboro, KY 42301 Cadiz, KY 42211 Fairdale, KY 40118 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-685-1859 (Home) 270-522-0195 (Home) 502-749-2859 Tom Buford (22) Ray S. Jones II (31) Brandon Smith (30) 409 W Maple St PO Drawer 3850 124 Craig Street Nicholasville, KY 40356 Pikeville, KY 41502 Hazard, KY 41702 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC FAX) 502-564-2466 (Work) 606-432-5777 (Home) 606-436-4526 (Home) 859-885-0606 (Work FAX) 606-432-5154 (Home FAX) 606-436-4526 (Home FAX) 859-885-0606 Alice Forgy Kerr (12) Robert Stivers II (25) Jared Carpenter (34) 3274 Gondola Dr 207 Main St PO Box 100 Lexington, KY 40513 Manchester, KY 40962 Berea, KY 40403 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-223-3274 (Home) 606-598-8575 Danny Carroll (2) Christian McDaniel (23) (Work) 606-598-2322 220 Cimarron Way PO Box 15231 (Work FAX) 606-598-2357 Paducah, KY 42001 Latonia, KY 41015 Damon Thayer (17) (LRC) 502-564-8100 (LRC) 502-564-8100 105 Spyglass Dr (Home) 270-703-8025 Morgan McGarvey (19) Georgetown, KY 40324 Julian M. Carroll (7) 2250 Winston Ave (LRC) 502-564-8100 702 Capitol Ave Louisville, KY 40205 Reginald Thomas (13) Annex Room 255 (LRC) 502-564-8100 702 Capitol Ave Frankfort, KY 40601 (Home) 502-589-2780 Annex Room 255 (LRC) 502-564-8100 Frankfort, KY 40601 Perry B. Clark (37) Stephen Meredith (5) (LRC) 502-564-8100 5716 New Cut Rd 1424 Byrtle Grove Rd (LRC FAX) 502-564-0777 Louisville, KY 40214 Leitchfield, KY 42754 Johnny Ray Turner (29) (LRC) 502-564-8100 (LRC) 502-564-8100 849 Crestwood Dr Prestonsburg, KY 41653 C.B. Embry Jr. (6) Gerald A. Neal (33) (LRC) 502-564-8100 PO Box 1215 462 S 4th St (Home) 606-889-6568 Morgantown, KY 42261 Meidinger Twr, Ste. 1250 Robin L. Webb (18) (LRC) 502-564-8100 Louisville, KY 40202 102 S Hord St (Home) 270-526-6237 (LRC) 502-564-8100 Grayson, KY 41143 (Home) 502-776-1222 (LRC) 502-564-8100 Rick Girdler (15) (Work) 502-584-8500 (Home) 606-474-5380 702 Capitol Ave (Work FAX) 502-584-1119 Stephen West (27) Annex Room 209 Dennis Parrett (10) 202 Vimont Ln Frankfort, KY 40601 731 Thomas Rd Paris, KY 40361 (LRC) 502-564-8100 Elizabethtown, KY 42701 (LRC) 502-564-8100 David P. Givens (9) (LRC) 502-564-8100 Whitney Westerfield (3) PO Box 12 (Home) 270-765-4565 700 South Main Street Greensburg, KY 42743 Dorsey Ridley (4) PO Box 1107 (LRC) 502-564-8100 4030 Hidden Creek Dr Hopkinsville, KY 42241 Denise Harper Angel (35) Henderson, KY 42420 (LRC) 502-564-8100 2521 Ransdell Ave (LRC) 502-564-8100 (Work) 270-885-7671 Louisville, KY 40204 (Home) 270-826-5402 Mike Wilson (32) (LRC) 502-564-8100 (Work) 270-869-0505 702 Capitol Ave, Annex Room 242 (Home) 502-452-9130 Albert Robinson (21) Frankfort, KY 40601 1249 S Main St (LRC) 502-564-8100 Ernie Harris (26) London, KY 40741 Max Wise (16) PO Box 1073 (LRC) 502-564-8100 Annex, Room 229 Crestwood, KY 40014 (Home) 606-878-6877 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-241-8307 * Members of the Kentucky General Assembly may also be contacted by calling 502-564-8100.

THE KENTUCKY GENERAL ASSEMBLY 5 2018 Kentucky General Assembly House (99) (90) Derrick Graham (57) PO Box 688 PO Box 710 157 Bellemeade Dr Sandy Hook, KY 41171 Hyden, KY 41749 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-738-4242 (Home) (606) 672-8999 (Home) 502-223-1769 (Work) 606-928-0407 (Home FAX) 606-672-8998 (Work FAX) 606-929-5913 (27) PO Box 1007 (4) (6) Brandenburg, KY 40108 2359 Brown Mines Rd 285 Oak Level Elva Rd (LRC) 502-564-8100 Marion, KY 42064 Symsonia, KY 42082 (Home) 270-422-5100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home FAX) 270-422-5100 (Home) 270-988-4171 (Home) 270-851-4433 David Hale (74) Jim DeCesare (17) 11 Hales Ln Linda Belcher (49) PO Box 122 Wellington, KY 40387 4804 Hickory Hollow Ln Rockfield, KY 42274 (LRC) 502-564-8100 Shepherdsville, KY 40165 (LRC) 502-564-8100 (Home) 606-768-3474 (LRC) 502-564-81001 (Home) 270-792-5779 Chris Harris (93) (Work) 270-792-5779 719 Forest Hills Rd Danny Bentley (98) (37) Forest Hills, KY 41527 702 Capitol Avenue PO Box 509 (LRC) 502-564-8100 Annex Room 329J Fairdale, KY 40118 (Home) 606-237-0055 Frankfort KY 40601 (LRC) 502-564-8100 Mark Hart (78) (LRC) 502-564-8100 (Work) 502-439-6175 202 W 4th St (9) Falmouth, KY 41040 III (88) 491 E Nashville St (LRC) 502-564-8100 2384 Abbeywood Rd Pembroke, KY 42266 (Home) 859-654-4278 Lexington, KY 40515 (LRC) 502-564-8100 (94) (LRC) 502-564-8100 (Home) 270-475-9503 20 Ohio St (Home) 859-421-1464 Jim DuPlessis (25) Whitesburg, KY 41858 702 Capitol Ave (LRC) 502-564-8100 John Blanton (92) Annex Room 376 (2) 702 Capitol Avenue Frankfort, KY 40601 438 Millers Chapel Rd Annex Room 329H (LRC) 502-564-8100 Mayfield, KY 42066 Frankfort, KY 40601 Daniel Elliott (54) (LRC) 502-564-8100 (LRC) 502-564-8100 PO Box 2082 (Home) 270-705-7539 Danville, KY 40423 (Work) 270-247-2210 Kevin D. Bratcher (29) (LRC) 502-564-8100 (Work FAX) 270-247-2304 10215 Landwood Dr (Home) 859-332-4204 (91) Louisville, KY 40291 Joseph M. Fischer (68) PO Box 1602 (LRC) 502-564-8100 126 Dixie Place Beattyville, KY 41311 (Home) 502-231-3311 Ft Thomas, KY 41075 (LRC) 502-564-8100 (LRC) 502-564-8100 Larry Brown (95) (Home) 859-781-6965 (83) PO Box 550 (Work) 513-794-6442 PO Box 985 Prestonsburg, KY 41653 Ken Fleming (48) Jamestown, KY 42629 (LRC) 502-564-8100 PO Box 6573 (LRC) 502-564-8100 (Work) 606-886-8132 Louisville, KY 40206 (Home) 270-343-2264 (LRC) 502-564-8100 (Work) 270-343-5588 George Brown Jr. (77) (75) (40) 424 E Fourth Street 121 Arcadia Park 1806 Farnsley Rd, Ste 6 Lexington, KY 40508 Lexington, KY 40503 Shively, KY 40216 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-312-7513 (Home) 859-221-3107 (Home) 502-447-2498 (Work) 502-447-9000 (30) (84) Regina Huff (82) 4012 Lambert Ave 277 Right Branch Spencer 179 Mountain St Louisville, KY 40218 Chavies, KY 41727 Williamsburg, KY 40769- (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-454-4002 (Home) 606-233-5660 (Home) 606-549-3439 McKenzie Cantrell (38) (46) Joni L. Jenkins (44) 702 Capitol Avenue 8406 Cloverport Dr 2010 O’Brien Ct Annex Room 424A Louisville, KY 40228 Shively, KY 40216 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-447-4324 John Carney (51) (89) 2163 E Highway 30 (Home FAX) 502-538-0877 PO Box 4064 East Bernstadt, KY 40729 DJ Johnson (13) Campbellsville, KY 42719-4064 (LRC) 502-564-8100 PO Box 6028 (LRC) 502-564-8100 (LRC FAX) 502-564-5640 Owensboro, KY 42302 (Home) 270-403-7980 (Home) 606-305-1321 (LRC) 502-564-8100 Matt Castlen (14) Jr. (12) 702 Capitol Ave 714 N Broadway B2 James Kay (56) Annex Room 329D Providence, KY 42450 PO Box 1536 Frankfort, KY 40601 (LRC) 502-564-8100 Versailles, KY 40383 (LRC) 502-564-8100 (Home) 270-667-7327 (LRC) 502-564-8100 (Work FAX) 270-667-5111

6 2018 Interim LEGISLATIVE RECORD 2018 Kentucky General Assembly

Dennis Keene (67) Phil Moffett (32) (20) 1040 Johns Hill Rd 812 Brookhill Rd 817 Culpeper St Wilder, KY 41076 Louisville, KY 40223 Bowling Green, KY 42103 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-441-5894 Tim Moore (18) (Home) 270-842-6731 (55) 417 Bates Rd Steve Riggs (31) 250 Bright Leaf Dr Elizabethtown, KY 42701 PO Box 24586 Harrodsburg, KY 40330 (LRC) 502-564-8100 Louisville, KY 40224 (LRC) 502-564-8100 (Home) 270-769-5878 (LRC) 502-564-8100 (Home) 859-734-2173 (LRC FAX) 502-564-6543 Adam Koenig (69) C. Wesley Morgan (81) (23) 170 Herrington Ct #12 239 Eastern By-Pass 189 Blue Sky Dr Erlanger, KY 41018 Richmond, KY 40475 Glasgow, KY 42141 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-653-5312 (64) (Home) 270-646-6821 (45) PO Box 143 Rob Rothenburger (58) PO Box 2090 Independence, KY 41051 811 Stapleton Rd Lexington, KY 40588 (LRC) 502-564-8100 Shelbyville, KY 40065 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 859-252-2202 Rick G. Nelson (87) (Home) 502-633-5832 (Home FAX) 859-259-2927 117 Gumwood Rd (61) Middlesboro, KY 40965 (21) 16 Ridgeview Cir (LRC) 502-564-8100 PO Box 336 Dry Ridge, KY 41035 (Home) 606-248-8828 Tompkinsville, KY 42167 (LRC) 502-564-8100 (Home FAX) 606-248-8828 (LRC) 502-564-8100 (34) (33) 2007 Tyler Ln 702 Capitol Avenue (1) Louisville, KY 40205 Annex Room 416C 350 Peppers Mill Drive (LRC) 502-564-8100 Frankfort, KY 40601 Paducah, KY 42001 (Home) 502-451-5032 (LRC) 502-564-8100 (LRC) 502-564-8100 (73) (59) (Work) 270-462-3156 702 Capitol Ave. PO Box 8 Annex Room 358B Prospect, KY 40059 (60) Frankfort, KY 40601 (LRC) 502-564-8100 12094 Jockey Club Dr (LRC) 502-564-8100 (Work) 502-645-2186 Union, KY 41091 Chad McCoy (50) Sannie Overly (72) (LRC) 502-564-8100 702 Capitol Avenue 340 Main St (Home) 859-371-8840 Annex Room 416B Paris, KY 40361 (Home FAX) 859-371-4060 Frankfort, KY 40601 (LRC) 502-564-8100 Dean Schamore (10) (LRC) 502-564-8100 (Home) 859-987-9879 120 Ball Park Rd (80) Hardinsburg, KY 40143 PO Box 121 Darryl T. Owens (43) (LRC) 502-564-8100 Stanford, KY 40484 1018 S 4th St, Ste 100 (LRC) 502-564-8100 Louisville, KY 40203 (41) (42) (LRC) 502-564-8100 702 Capitol Ave PO Box 757 (Home) 502-584-6341 Annex Room 432C Louisville, KY 40201 (76) Frankfort, KY 40601 (LRC) 502-564-8100 10 Deepwood Dr (LRC) 502-564-8100 (Work) 502-741-7464 Lexington, KY 40505 Michael Meredith (19) (LRC) 502-564-8100 (71) PO Box 292 (Home) 859-299-2597 PO Box 138 Brownsville, KY 42210 (16) Lancaster, KY 40444 (LRC) 502-564-8100 PO Box 397 (LRC) 502-564-8100 (Work) 270-597-6049 Elkton, KY 42220 (65) Russ A. Meyer (39) (LRC) 502-564-8100 112 W 11th St 106 Lone Oak Drive (Home) 270-265-3163 Covington, KY 41011 Nicholasville, KY 40356 (Home FAX) 270-265-3164 (LRC) 502-564-8100 (LRC) 502-564-8100 (62) (Home) 859-581-6521 Suzanne Miles (7) 702 Capitol Ave (Home FAX) 859-261-6582 PO Box 21592 Annex Room 351 (Work) 859-261-6577 Owensboro, KY 42304 Frankfort, KY 40601 John Sims Jr (70) (LRC) 502-564-8100 (LRC) 502-564-8100 3177 Maysville Rd Flemingsburg, KY 41041 Charles Miller (28) Melinda Gibbons Prunty (15) (LRC) 502-564-8100 3608 Gateview Cir PO Box 411 (Home) 606-748-1839 Louisville, KY 40272 Greenville, KY 42345 Kevin Sinnette (100) (LRC) 502-564-8100 (LRC) 502-564-8100 PO Box 1358 (Home) 502-937-7788 Ashland KY 41105 (47) PO Box 273 (LRC) 502-564-8100 Jerry T. Miller (36) Bedford, KY 40006 (Home) 606-324-5711 PO Box 36 (LRC) 502-564-8100 (Home FAX) 606-329-1430 Eastwood, KY 40018 (Home) 502-255-3392 (LRC) 502-564-8100 (Work) 502-255-3286 Diane St. Onge (63) Robby Mills (11) (Work FAX) 502-255-9911 523 Kluemper Court 702 Capitol Avenue (24) Fort Wright KY 41011 Annex Room 413C 113 N Walters Ave (LRC) 502-564-8100 Frankfort, KY 40601 P.O. Box 8 (Home) 859-341-1231 (LRC/Home) 502-564-8100 Hodgenville, KY 42748 (LRC) 502-564-8100 (Work) 270-358-0868 THE KENTUCKY GENERAL ASSEMBLY 7

2018 Kentucky LRC General Assembly Publications 2019 Price List III (86) (66) 545 KY 223 PO Box 911 Daily Record Pick up: $82.50 Flat Lick, KY 40935 Burlington, KY 41005 (LRC) 502-564-8100 (LRC) 502-564-8100 Daily Record Mailed: $82.50 (plus (Home) 606-542-5210 (Work) 859-525-6698 postage) (22) 1481 Jefferson School Road (96) Friday Record Mailed: $30.25 (plus Scottsville, KY 42164 PO Box 591 (LRC) 502-564-8100 Grayson, KY 41143 postage) (Home) 270-622-5054 (LRC) 502-564-8100 (Work) 606-474-7263 Individual Record Pick up: $2.75 Walker Thomas (8) (Work FAX) 606-474-7638 2620 Cox Mill Rd Individual Record Mailed: $2.75 (plus Hopkinsville, KY 42240 (LRC) 502-564-8100 * Members of the Kentucky General Assembly may also be postage) (Home) 270-889-8091 contacted by calling 502-564-8100. (Home FAX) 270-885-5335

James Tipton (53) Bills 8151 Little Mount Rd Taylorsville, KY 40071 Complete Set of Bills and Resolutions (LRC) 502-564-8100 (Pick up): $425 Tommy Turner (85) Individual Bills Per Page: $.05 175 Clifty Grove Church Somerset, KY 42501 Amendments Per Page: $.05 (LRC) 502-564-8100 (Home) 606-274-5175 Roll Call Votes: $.15 Per Page (52) PO Box 969 Monticello, KY 42633 Publications (LRC) 502-564-8100 (Home) 606-340-8490 1-10 copies: Free to general public; Gerald Watkins (3) 4317 Pines Rd larger numbers of free copies are Paducah, KY 42001 (LRC) 502-564-8100 available to schools and state agencies (Home) 270-558-5139 (35) (Copies over preapproved limits require 1280 Royal Ave Louisville, KY 40204 agency approval) (LRC) 502-564-8100 (Work) 502-303-3732 (26) PO Box 6605 Administrative Regulations (2018) Shepherdsville, KY 40165 Bound Volumes: $235.25 (LRC) 502-564-8100 (Home) 502-543-8209 Administrative Register: $120.00 Scott Wells (97) 836 Liberty Rd Volumes and Register: $355.25 West Liberty, KY 41472 (LRC) 502-564-8100 (79) Acts of the General Assembly (2018) PO Box 22778 Lexington, KY 40522- Regular Sessions: $80.00 (2 Volumes) (LRC) 502-564-8100 (Work) 859-266-7581 Special Sessions: Priced after printing

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8 2018 Interim LEGISLATIVE RECORD Committee Meetings

INTERIM JOINT COMMITTEE ON towards services that can be utilized for the families Index APPROPRIATIONS AND REVENUE that need them. There were families that were in the Budget Review Subcommittee on Human kinship program prior to the moratorium and they Resources are still receiving funds but they are not receiving any A new applicants to the program. The screening process Administrative Regulation Review Subcommittee, Minutes of the 1st Meeting 61 of the 2018 Interim for the kinship care program starts with calling the Agriculture, 28 August 30, 2018 Hotline, the department mines the case by taking Appropriations and Revenue, 9, 10, 28, 35, 36, 44 Call to Order and Roll Call some basic information from the relative or fictive The 1st meeting of the Budget Review kin caregiver and determines if DCBS had placed the B Subcommittee on Human Resources of the Interim child or recommended placement of the child with Banking and Insurance, 40 Joint Committee on Appropriations and Revenue the relative that includes a home study, evaluation, was held on Thursday, August 30, 2018, at 10:00 AM, and background checks. If permanent custody has C been established by the DNA-9 form they would not Capital Planning Advisory Board, 51 in Room 129 of the Capitol Annex. Representative Russell Webber, Chair, called the meeting to order, be qualified. Capital Projects and Bond Oversight, 48 In response to questions by Representative Child Welfare Oversight and Advisory Commit- and the secretary called the roll. tee, 18 Present were: Moser, Deputy Commissioner Caywood stated that D Members: Senator Ralph Alvarado, Co-Chair; grandparents are not eligible for cash assistance Diabetes Medical Emergency Response Task Representative Russell Webber, Co-Chair; Senators under D.O. vs. Glisson if the child has never been in Force, 52 Denise Harper Angel, Morgan McGarvey, and the state’s custody, however they can apply for child Stephen Meredith; Representatives Chad McCoy, only Kentucky Transitional Assistance Program. E Kimberly Poore Moser, and Susan Westrom. About $500 million of the budget goes to the foster Economic Development and Workforce Invest- Guests: Eric Clark, Commissioner, Department care program in Kentucky. Relatives can apply for the ment, 25 Childcare Assistance Program if they need help. Education, 22 for Community Based Services, Cabinet for Health and Family Services; Elizabeth Caywood, Deputy In response to questions by Senator Meredith, Education Assessment and Accountability Review Deputy Commissioner Caywood stated that the Subcommittee, 49 Commissioner, Department for Community Based Services, Cabinet for Health and Family Services; Lesa reason the number of children has declined was G Dennis, Chief of Staff, Department for Community due to children aging out for services and caregivers Government Contract Review Committee, 54 Based Services, Cabinet for Health and Family not reapplying for services. DCBS has obtained Services; Adam Meier, Secretary, Cabinet for Health numerous budget cuts and the reduction has been H and Family Services; Jill Hunter, Commissioner, absorbed through these cuts over the years. Inquiries Health and Welfare and Family Services, 19 Department for Medicaid Services, Cabinet for are being processed within 45 days and then the case Health and Family Services; Steve Bechtel, Chief is assigned; the vast majority of unprocessed inquiries J are not eligible. Judiciary, 12, 41 Financial Officer, Department for Medicaid Services, Cabinet for Health and Family Services; and Eric In response to questions by Co-Chair Alvarado, Commissioner Clark stated he does not know the L Lowery, Executive Director, Office of Finance and Licensing, Occupations, and Administrative Reg- Budget, Cabinet for Health and Family Services average age of a child entering into kinship care. ulations, 15 LRC Staff: Miriam Fordham and Jay Jacobs. Deputy Commissioner Caywood stated that a third Local Government, 32 Kinship Care Update child for an existing grandparents in kinship care Commissioner Clark, Deputy Commissioner would not be covered. P Caywood, and Ms. Dennis gave an overview of the Medicaid Budget Update: Fiscal Year 2018 Prefiled Bills, 64 Kinship Care program. Year-End Report and Fiscal Year 2019 Outlook Program Review and Investigations Committee, 45 In response to questions by Chairman Webber, Secretary Meier, Commissioner Hunter, Mr. Public Pension Oversight Board, 57, 59 Deputy Commissioner Caywood stated that the Bechtel, and Mr. Lowery provided an update on the $54 million is just the cash assistance portion and Medicaid Budget. S In response to a question by Chairman Webber, School Safety Working Group, 46 does not include Medicaid and the other supportive State Government, 30 services. Commissioner Clark reviewed available Secretary Meier stated that the Governor’s budget relative services that are available today through reduction had an impact on the $300 million T DCBS for the Kinship Care program. Some examples shortfall, but the cabinet is communicating with the Tobacco Settlement Agreement Fund Oversight through the kinship care hotline are support groups, budget office and the legislature about some of the Committee, 56 health/behavioral health services, social security intervening events. Tourism, Small Business and Information Tech- administration, and training. In response to questions by Senator Meredith, nology, 36, 38 In response to questions by Chairman Webber, Secretary Meier stated that there are no savings Transportation, 10 Deputy Commissioner Caywood stated that she does assumed in the consensus forecasting group’s not foresee the moratorium being lifted in full, it projection because it was uncertain at that time. V Evaluation will have to be done into the next budget Veterans, Military Affairs and Public Protection, 16 would take additional resources and tough decisions would have to be made. The funds from House session on optional benefits and eligibility. Maximum Bill 200 are not going to the kinship care program, benefits of the 1115 waiver will not be seen until however they are helping supplement the effect of 2022 or 2023, but that there are opportunities the D.O. vs. Glisson case and they are also being put now to upgrade systems and create efficiencies in

THE KENTUCKY GENERAL ASSEMBLY 9 administrative processes. These cost savings were Guests: Kelly Stephens, Governmental Affairs outstanding fees. Ms. Stephens stated that AOC may not built into the budget due to the uncertainty of Liaison, Administrative Office of the Courts (AOC); be able to track outstanding fees, though not likely the program at the federal level. The main cost of Damon Preston, Public Advocate, Department of at the individual level. Indigency is calculated on implementing the waiver program are upfront costs Public Advocacy (DPA); and Sam Cox, Director, Law a sliding scale based on the Federal Poverty Line. and the remainder will be invested in workforce Operations Division, DPA. If AOC is attempting to collect fees, the AOC does training. The cabinet will continue to look for ways to LRC Staff: Zachary Ireland, Savannah Wiley, not have to report the debt as uncollected to the support getting people connected with employment, and Benjamin Thompson. Department of Revenue. job training, educational resources, and promotion of AOC Update of Tracking of Partial Fees In response to questions from Representative health and financial literacy. The waiver gives people Statewide Petrie, Mr. Preston noted that he is not aware of any the incentives to get in the door and to be connected Ms. Stephens provided an update of AOC’s case where charges were filed for a falsified affidavit with those available resources at the local level. accounts receivable system. of indigency. In response to questions by Co-Chair Alvarado, In response to questions from Representative In response to questions from Senator Secretary Meier stated the increased costs in the Reed, Ms. Stephens stated that the decrease in state Westerfield, Mr. Preston stated that he is not aware of last four years is due to medical inflation, pent up monies collected from FY 2013 to FY 2018 is at any place in the country where public defenders are demand, growth in expansion and the traditional least partially due to the county attorneys’ diversion required to report their hours worked on a particular population. Mr. Lowery stated that the expansion program. Ms. Stephens said that seat-belt violations case, though rarely judges will ask the public defender was the biggest part of the growth. Secretary Meier are now a $25 fine without additional court costs. how much time they have spent on the case. stated the cabinet saw an increase in emergency room Circuit Court clerks have been very receptive to the There being no further business, the meeting utilization after the expansion and that has started to updated accounts receivable system. Ms. Stephens was adjourned at 11:08 AM. level off. The cabinet can ask the federal government noted that AOC’s goal is to eventually roll out the new if there is any wiggle room on the budget with the prepayment program to every county. INTERIM JOINT COMMITTEE ON projected savings from renegotiating MCO contracts. In response to a question from Representative Mr. Lowery stated that MCOs are not included in the Petrie, Ms. Stephens stated that if a defendant is TRANSPORTATION two percent. Secretary Meier stated that the cabinet is consistent in making payments for fines, there would Minutes of the 4th Meeting analyzing the data from the PBM report. be no need for them to go to court. of the 2018 Interim September 12, 2018 In response to questions by Representative In response to questions from Senator Schickel, Westrom, Commissioner Hunter stated that the Ms. Stephens said that a restitution ID is an internal Call to Order and Roll Call concerns of 30 families who have not received control number for the AOC rather than a physical The 4th meeting of the Interim Joint Committee compensation have been noted and that her team is identification card. Ms. Stephens stated that on Transportation was held on Wednesday, September reviewing them. restitution payment timelines are determined on a 12, 2018, at 10:00 AM, at the Wayne County Public In response to questions by Senator McGarvey, case by case basis. Library in Monticello, Kentucky. Representative Ken Secretary Meier stated that the Supports for DPA Perspective on Tracking Partial Fees Upchurch, Chair, called the meeting to order, and the Community Living rate increase was done after Statewide secretary called the roll. the Consensus Forecasting Group met. The budget Mr. Preston and Mr. Cox presented on tracking Present were: shortfall will be monitored closely and they will partial fees from the DPA’s viewpoint. Members: Senator Ernie Harris, Co-Chair; monitor the outcome of the waiver and how close In response to questions from Chair Schroder, Representative Ken Upchurch, Co-Chair; Senators they are to the projection. The cabinet is reviewing Mr. Preston stated that he believes the court system Albert Robinson, Brandon Smith, and Mike Wilson; IT reforms, new delivery system reforms, value based has improved on collection of indigency information. Representatives Lynn Bechler, Tim Couch, Ken purchasing, and strengthening MCO contracts as a In the past, public defender fees were waivable and Fleming, Robert Goforth, David Hale, Suzanne Miles, means to save money. Some payments can be pushed assessed at a standard $50 per case, then raised to Steve Riggs, Jim Stewart III, and Walker Thomas. into the next fiscal year, but that is just shifting cost. $52.50 per case. The fee was a flat rate regardless of Guests: Michael Anderson, Wayne County Pulling benefits is an option if necessary. the charge the defendant was facing. Judge Executive, Matt Henderson, Commissioner, There being no further business, the meeting In response to questions from Representative Department of Vehicle Regulation, Kentucky was adjourned at 11: 22 AM. Petrie, Mr. Preston noted that the problem with non- Transportation Cabinet (KYTC) Tamra Wilson, waivable fees is the mechanism for collection. He District 8’s Chief District Engineer, KYTC. LRC Staff: John Snyder, Dana Fugazzi, and INTERIM JOINT COMMITTEE ON does not believe anyone should go to jail for failure to pay their lawyer. DPA studied the issue in the 1990s Christina Williams. APPROPRIATIONS AND REVENUE and determined the cost to hire a collection agency Welcome Budget Review Subcommittee on Justice would be greater than the amount collected. Wayne County Judge Executive Michael and Judiciary In response to questions from Representative Anderson welcomed members and guests to the Minutes of the 2nd Meeting Fischer, Mr. Preston said the affidavit of indigency meeting and showed a short film showcasing the of the 2018 Interim involves debts, assets, ongoing obligations such as beauty of Wayne County. August 30, 2018 child support, and the defendant’s financial status. Implementation of HB 410 of the 2017 Session Call to Order and Roll Call The second factor that should be accounted for in (Travel IDs) The 2nd meeting of the Budget Review determination of indigency is the case itself and Matt Henderson, Commissioner, Department Subcommittee on Justice and Judiciary of the Interim how much in the normal market a similar case of Vehicle Regulation, KYTC, testified on the Joint Committee on Appropriations and Revenue would cost a client. Some judges assess fees upon the implementation of HB 410 of the 2017 Session which was held on Thursday, August 30, 2018, at 10:00 appointment of a public defender, while most asses concerns travel IDs. In October 2020, standard AM, in Room 171 of the Capitol Annex. Senator Wil fees at the end of a case. The better way is to assess licenses will no longer meet federal REAL ID Act Schroder, Chair, called the meeting to order, and the fees at the beginning of a case and address collection requirements for Kentuckians to board U.S. domestic secretary called the roll. during sentencing. Ms. Stephens stated that a lot of flights or enter select federal facilities. New security Present were: judges struggle with how to apply public defender standards for identity credentials were recommended Members: Senator Wil Schroder, Co-Chair; fees. AOC welcomes statutory guidance on the issue by the 9/11 Commission to prevent the fraudulent Representative Jason Nemes, Co-Chair; Senators John of public defender fees. use and reproduction of licenses and IDs. Kentucky Schickel and Whitney Westerfield; Representatives In response to questions from Chair Schroder, has been working to come into compliance with the Daniel Elliott, Joseph M. Fischer, Jason Petrie, Mr. Cox said that the DPA has no method to track federal requirements, and in response, will begin Brandon Reed, and Kevin Sinnette. offering two new versions of all identity credentials-

10 2018 Interim LEGISLATIVE RECORD -the new Kentucky Standard Credential or the pricing to account for the longer from mile marker 65 through mile marker 69 at a cost Kentucky Voluntary Travel ID. shelf-life and security improvements. A new eight of $35 million. That project was started in January Kentucky is one of 22 states and U.S. territories year Voluntary Travel ID license will be $48. A new 2017 and was completed in August 2018. Lane operating under an extension from the Department eight year standard driver’s license will be $43. Non- widening will also occur on I-75 in Rockcastle County of Homeland Security. This allows federal agencies U.S. citizens who are not permanent residents are from mile marker 65 to mile marker 55 at a cost of to continue accepting Kentucky licenses, permits eligible to apply for a new standard license or ID and $81 million. That construction began in January of and IDs to board U.S. flights, enter military bases pay the cost of the credential plus a $30 application 2018 and is expected to conclude in October of 2020. and enter restricted federal facilities, such as the fee. They are not eligible for a Voluntary Travel ID. Also mentioned was a KY 61 and KY 90 White House. A phased, statewide rollout of the Four year credentials are half the cost of an eight Bridge rehab project in Cumberland County costing new credentials will start in January 2019 and end year credential. More pricing information, including approximately $10 million. The first bridge will by spring. All credentials will feature mailed delivery pricing for typical CDL endorsements, is available at undergo rehabilitation in February 2019 and is which will entail arrival of the credential in the mail drive.ky.gov/confidentky. expected to be completed by August 2019. The second after applying with the local Circuit Court Clerk. This A chart was provided to show the pricing bridge is expected to begin rehabilitation in June 2019 will also include an optional lifespan of the ID for a differences between the standard credentials and the and is expected to be completed by November 2019. possible eight years as opposed to four. There will also voluntary travel ID for a driver’s permit, motorcycle Ms. Wilson stated during both of the rehabilitations be upgraded security that will include a new look and permit, personal ID, driver’s license, motorcycle of the bridges that neither bridge will be closed among the most state-of-the-art security features in license, and driver/motorcycle license combination. completely, only one lane will be closed at a time the United States of America. After applying for an ID, Commissioner Henderson stated the next step is for which is necessary because complete closing would that person will leave with a temporary document, an the new design and security features to be unveiled, result in a 90 mile detour. A complete list of active altered version of the current credential and receive an implementation schedule will then be released construction projects is available in the presentation the permanent card in the mail five to ten business after that. packet that was provided. Ms. Wilson provided a list days later. For the first four years of issuance, non- Representative Riggs suggested a name change of enacted six year plan projects in Clinton, Russell, CDL applicants and those 21 and older can choose for both the Voluntary Travel ID and the new Lincoln, Pulaski, and Rockcastle Counties. She said between a four or eight year credential. Starting Standard Credential. the Rockcastle County project on KY 461 was vital. Jan. 1, 2023, all applicants will receive an eight year In response to a question asked by Representative Ms. Wilson discussed the Bridging Kentucky credential. While Kentucky’s current credentials meet Goforth, Commissioner Henderson stated the IDs Program. The purpose of the program is to rehabilitate, security standards, the main area of non-compliance that will be mailed will be mailed through standard repair, or replace more than 1,000 critical structures. with REAL ID Act requirements is our issuance first class mail and will not contain a tracking number. The estimated cost is $700 million over six years. model. By moving production of all credentials from However, the Cabinet will be able to keep track if an The goal of the Program is to deliver all bridges for over-the-counter at more than 140 locations to one ID has not been received. construction by 2024, improve safety and soundness central, secure location, as well as adding state-of-the- In response to a question asked by Representative of Kentucky bridges, and focus on protecting current art card security features, Kentucky is reducing the Bechler, Commissioner Henderson stated a passport structures. The Bridging Kentucky Program has $340 risk of license and ID fraud. and standard credential ID would be enough to allow million budgeted in the 2019-2020 biennium. A total The Standard Credential is state-maintained access to a military base. He reiterated that some of 350 bridges are funded in the biennium with 17 but not federally compliant. Standard licenses military bases may require more, but in general, that District 8 bridges being funded. The first of those and IDs will always be acceptable for voting, age- should allow entrance for most military bases. bridges will be let in October 2018. restricted purchases, accessing federal and social In response to a second question asked by A list of pavement asset management projects in benefit services like VA hospitals, Social Security Representative Bechler, Commissioner Henderson Adair, Casey, Pulaski, Rockcastle, Russell, and Wayne offices, federal courthouses and more. Until federal stated the databases that County Clerks are using will Counties were provided, along with the approximate enforcement begins in 2020, as long as Kentucky be able to certify that information provided to them is cost of each project. Also provided was a list of KYTC remains under extension standard licenses and IDs accurate through facial recognition as well as the use SHIFT unfunded priority needs in Adair, Casey, can be used for flying in the U.S. and visiting military of social security numbers. Cumberland, Lincoln, Russell, and Wayne Counties. bases and restricted federal facilities. In response to a question asked by Chairman Ms. Wilson briefly discussed projects in the The Voluntary Travel ID is a state-maintained, Harris, Commissioner Henderson stated if during the Highway Safety Improvement Project (HSIP) federally compliant license that will be acceptable transition, a specific county is not upgrade capable or including roadway departure corridors on KY 192 for all the uses for which a standard credential may the upgrade has not yet occurred, the person would from mile marker 1 to mile marker 7 in Pulaski be used, plus flying in the U.S., and visiting military get a standard license and then get an upgraded ID County at a cost of $1.9 million, and KY 39 in Pulaski bases and restricted federal facilities. All first-time when the site is capable for an additional cost of $15. County from mile marker 3 to mile marker 13 at a applicants and anyone requesting a Voluntary Travel In response to a question asked by Representative cost of $1.4 million. Also included in the HSIP is a ID credential will need to present Proof of identity Hale concerning the rationale behind having two shoulder initiative on KY 379 in Russell County (Birth certificate, U.S. passport, Permanent Resident options for IDs, Co-Chair Harris stated he was unable from mile marker 11-20 at a cost of approximately Card), proof of Social Security number (Social Security to get HB 410 of the 2017 session passed in the senate $586,000, and another shoulder initiative on KY 70 card, W-2 form), and proof of residency (utility bill, without two options being available. Commissioner in Casey County from mile marker 18 to mile marker lease, pay slip, voter registration card). One form of Henderson reiterated that most states that are REAL 21 at a cost of approximately $686,000. Both of these proof of residency will be required for a standard ID compliant are offering two options. shoulder initiatives were completed in 2017. She credential; two will be required for a Voluntary Travel Co-Chair Harris recognized Rick Taylor, discussed three local risk mitigations projects on KY ID. To renew any standard credential, applicants will Deputy Commissioner Vehicle Regulation, who plans 76, the KY80/KY379 intersection, and the US 127/ only need to surrender their current license or ID and to retire in October, for his many years of service to KY90 intersection. have a new photo taken. Commissioner Henderson the cabinet and his work assisting the committee on Ms. Wilson discussed major maintenance and said that if the current legal name, date of birth, several key pieces of legislation throughout his tenure. budget categories. She gave a maintenance budget or gender is diferent than what is displayed on an Presentation from the District 8 Highway breakdown on drainage issues, bridge maintenance, identity or lawful status document, the person must Office on projects in the region signs, signals, and lighting, guardrail repair and show legal proof of the changes (i.e. marriage license.) Tamra Wilson, District 8’s Chief District installation, sweeping, carcass and litter removal, A full list of acceptable proof documents is available Engineer, provided project updates for the region. A snow and ice removal, tree/bush trimming, weed at drive.ky.gov/confidentky. vital active construction project that is underway is a control, mowing, pavement and pothole patching, All credentials will have new six lane major widening of I-75 in Rockcastle County rockfall and landslip, road striping and rest areas. A

THE KENTUCKY GENERAL ASSEMBLY 11 chart was also provided that broke down snow and ice from 30-40 percent to 72 percent, which was the it for the smaller units. In regards to requests from expenditures from 2007 to 2017. cause for some of the backlog. There are 1,900 cases outside of the state that may generate revenue, Ms. Co-Chair Harris addressed the issue of scarce awaiting analysis, which is down from 4,800 cases Sudkamp believes that Kentucky receives toxicology funding for projects. Ms. Wilson stated several of the in 2015. New drugs have been added, so the Lab is requests. projects are state-funded, but the cabinet is looking looking at a wider range of drugs. Kentucky has a class In response to Representative Lee, Ms. Sudkamp for federal funding. type drug law that lists the controlled drugs. As soon stated that, although the Lab has the same equipment, Senator Robinson reiterated the importance of as users find a new drug that is not “classified,” they outsourcing is beneficial because companies may the completion of I-75 construction and asked for a start using it. This keeps the Lab busy. The Lab uses a have more staff to dedicate to a more thorough projected date when I-75 construction could begin new line of processes called Pinpoint, which allows it research of the samples, which keeps her agency in the London. Ms. Wilson was unable to give a to analyze samples more accurately and quickly. from becoming further behind in cases. About 116 projected date. Brandon Standifer, Toxicology Supervisor cases were outsourced over the past two years, and Representative Fleming requested the total for the Kentucky State Police Forensic Lab, stated 21 tested positive. The cost for an outside technician number of miles of road way District 8 oversees both that seven testing procedures are required for drug to testify includes 50 percent of the fee, plus travel in city and county and requested the numbers be confirmation testing and screening. New methods expenses, which is paid through the courts. Five compared with per mile maintenance versus other will cut the testing procedures to four. The new percent to six percent of the 116 would have required districts. process will also cut the time needed to extract drugs testimony. Sixty percent of the cases test positive for The being further business, Chairman Upchurch from a blood sample in half, allowing more time for THC levels, but it may not be required to be reported. adjourned the meeting at 11:20 a.m. the required peer review process, as well as the time It is only reported when the level is high enough to INTERIM JOINT COMMITTEE ON needed to analyze additional drugs added to the list. be confident that it is THC. The screening for THC The first new screening process is anticipated to be is part of a series of testing, and the lab goes forward JUDICIARY online before the end of 2018. from there with its findings. Minutes of the 4th Meeting Ms. Sudkamp said that the budget increase has Ignition Interlock Issues of the 2018 Interim helped retain employees. She hopes does not lose Scott West, Deputy Public Advocate with the September 7, 2018 employees to Virginia, which is offering $55,000 for Department of Public Advocacy (DPA), spoke in Call to Order and Roll Call chemists directly out of college and over $70,000 if favor of the Ignition Interlock system as a means for The 4th meeting of the Interim Joint Committee already trained. Starting over with new employees offenders to continue with a less disruptive way of on Judiciary was held on Friday, September 7, 2018, and training causes set-backs. In addition, instrument life, while training them not to drive while drinking, at 10:00 AM, in Room 171 of the Capitol Annex. breakdown is the number one area that can cause not just when intoxicated. A low average for the cost Representative Joseph M. Fischer, Chair, called the backlog. Back-up equipment enables the Lab to keep of installation, calibration, maintenance, and repair meeting to order, and the secretary called the roll. working while the other machine is being repaired. would be $300 to $350. Mr. West does not believe it Present were: In outsourcing the testing of synthetics, 18 should be mandatory since many offenders do not Members: Representative Joseph M. Fischer, Co- percent of the cases tested positive. Adding synthetics own a vehicle, or, if they do, cannot afford the cost of Chair; Senators Danny Carroll, Perry B. Clark, Alice into the screening process adds to the time and cost the device. If made mandatory, it should be exempted Forgy Kerr, Dan “Malano” Seum, and Robin L. Webb; of the screening. When considering whether to add for the truly indigent. “May” should be changed to Representatives McKenzie Cantrell, Jeffery Donohue, a drug to the drug screening list, the cost and the “shall” in KRS 189A.420(7), in which courts are to use Daniel Elliott, Angie Hatton, Stan Lee, Chad McCoy, percentage of those that will test positive should the sliding scale established by the Supreme Court of Reginald Meeks, C. Wesley Morgan, Kimberly Poore be considered. Ms. Sudkamp is working with the Kentucky for indigent defendants. Another request is Moser, Jason Nemes, Jason Petrie, Brandon Reed, and toxicology department to see if it has ideas as to how to create a process by which a client is protected from Kevin Sinnette. this can be done more efficiently. While outsourcing unreasonable practices by interlock providers, such Guests: Laura Sudkamp, Brandon Standifer, only costs $113 per sample, the larger cost is incurred as charging for the resetting of a machine when the B. Scott West, Matthew Henderson, Matthew Cole, when technicians from outside laboratories are client states it read a false positive, which is possible. David Atha, Jason Siwula, Kelly Stephens, Judge required to testify. The old regulation had a 90 day recalibration period, Jerry Crosby, Steve Gold, Jenny Oldham, Martin In response to Senator Webb, Ms. Sudkamp whereas the new proposed regulation has a 60 day Hatfield, Lois Linhold, Representative Mark Hart, stated that the Lab will run a sample to see what drugs period. If the machine will work efficiently for 90 days, Representative Diane St. Onge, Cassie Everett, and (or alcohol levels) appear, regardless of what the the client should not have to pay every two months, Taylor Everett. officer may think is there. Positive drug screenings instead of every three months for the recalibration. LRC Staff: Dale Hardy, Alice Lyon, Chandani that carry the highest charges may be the only ones The Flege case recently stated that Circuit Courts lack Kemper, Matt Trebelhorn, Breanna Miller, and reported. Now that the lab is catching up, it hopes jurisdiction over the issuance of ignition inlock. Mr. Yvonne Beghtol. to increase those tested and reported. Mr. Standifer West would like to have the statute changed from Chairman Fischer welcomed those in attendance, reported that the percentage of cases that included “The District Court shall have exclusive jurisdiction” and requested a moment of silence on behalf of Corbin marijuana is approximately 60 percent, the highest of to “The Sentencing Court shall have exclusive Harris, the son of Representative Chris Harris, who is all the drug findings. Chairman Fischer indicated that jurisdiction.” currently in a coma. Having reached a quorum later 60 percent of the $3,000,000 cost of screening would Matthew Henderson, Commissioner of the in the meeting, Chairman Fischer asked for a motion be roughly $2,000,000 for marijuana screenings. Department of Vehicle Regulation, stated that the to approve minutes from the July 6, and August 3, In response to Representative Moser, Ms. Ignition Interlock program went into effect in 2015. 2018 meetings. Representative Reed made a motion, Sudkamp verified the cost for outsourcing a blood The process begins when a driver is cited for a DUI, or seconded by Representative McCoy, and approved by sample is $113.00 per sample. The cost can be as is driving while suspended on a DUI. The driver can voice vote. much as $10,000 once the expert testimony costs are ask for the Ignition Interlock Device (IID) or it can Drugged Driving added to the testing costs. be ordered by a judge. The court will send the order Laura Sudkamp, Laboratory Manager of the In response to Representative Meeks, Ms. to the Kentucky Transportation Cabinet (KYTC). Kentucky State Police Forensic Lab, noted that the Sudkamp stated that when a piece of equipment The driver can then apply for an IID and if approved, Lab is the state’s only forensic laboratory, and it is such as the CMS/MS machine goes down, the Lab will receive a Letter of Approval. The driver then more cost efficient than outsourcing. Fortunately, in must diagnose the issue, get a cost quote, and start takes the letter to a vendor, certified by the Office of 2017 and 2018 the Lab has processed more cases than the process to finance the repair. This is why back-up Highway Safety, to have the IID installed. The driver received, which has lowered the case backlog. Of the equipment is so beneficial. The lab has done this with will receive a Certificate of Installation, which he cases received, those being tested for drugs jumped some of the bigger instruments, but need to also do or she can present to the Circuit Clerk to receive a

12 2018 Interim LEGISLATIVE RECORD restricted license. Fourteen days prior to the end of bracelet but KYTC does not. Jenny Oldham, Hardin County Attorney, the suspended period, the KYTC will send a Letter In response to Representative Nemes, Director stated that a first offense runs approximately $630.00 of Removal to the driver, which he or she will take to Cole explained that the reason for the high number of minimum, which includes installation, maintenance, the vendor to have the device removed. The vendor breath tests required by the IID per month is because and the $200.00 fee for the KYTC ignition license. For will provide the driver with a Certificate of Removal more than one test can be required in a single trip. a second offense, the minimum is $990.00. A third which the driver presents to the Circuit Clerk to The initial test allows the vehicle to start, and the offense is $710.00. While Ms. Oldham does not have update their driving record and to reinstate a non- continued testing allows it to keep running. If they an issue with making DUIs costly, the reality is that restricted driver’s license. are not driving, they are still required to submit 50 there is no one to pay those fees. Vendors are private Commissioner Henderson stated that the breath tests per 30 days. Documentation of an illness companies that will not make the IIDs available program is not effective in its goal of increasing during the testing period may be required, which is without a profit. Staffing issues are also a concern, if public safety on our highways. In 2016, there were something an administratively run program would each county is required to monitor the system. Ms. 20,749 DUI convictions, with 1,403 IIDs ordered, and oversee. Oldham believes administrative monitoring makes only 786 (3.8 percent of convicted cases) installed. In In response to Representative Meeks, Director the most sense in regulating the program. 2017, the usage rate increased slightly. There were Cole responded that he has not heard of the device Martin Hatfield, Pulaski County Attorney, 20,619 DUI convictions, with 1,585 IIDs ordered, and discussed on NPR News that the state of Indiana clarified that the term “violation” is not a violation of only 948 (4.6 percent of convicted cases) installed. now has to detect alcohol content in containers, but the law, but of the IID terms of use. Knowing what to The KYTC is in favor of any means of increasing the he will look into it. Commissioner Henderson stated do when a violation is reported is another concern. usage rate. that Kentucky does not currently meet the standards Pulaski County does not have an IID installer, so Monitoring of the devices is also a concern. In for federal grants, which could assist in paying for the he is not sure who to send the offender to when 2016, 10,396 violations were reported, resulting in 3 monitoring program. One requirement is that IIDs be granted the IID device. One offender reported that a convictions. In 2017, 13,424 violations were reported, mandatory. vendor offered to install a bypass breathalyzer for an resulting in 9 convictions. The KYTC is in favor of a In response to Representative McCoy, additional charge, which in turn would be reported to more robust monitoring system. One option is for the Commissioner Henderson stated that the 10,396 law enforcement. Mr. Gold reiterated the concern of KYTC to oversee the monitoring. For that to happen, violations indicate how many times the IID kept access when a county does not have an installer and KYTC would require additional funding through someone who was drinking from getting on the road. the offender, who is not supposed to be driving, has to fees or some other source. Another area of concern States with mandatory IIDs have seen a 16 percent go to another county to get the device installed. is the confusion in terms of the penalty length. The decrease in road fatalities. In response to Representative Petrie, Mr. forms the courts use to report to the KYTC are often Kelly Stephens, Government Affairs Liaison Gold stated that every life saved by not having an confusing. The KYTC would support making the with the Administrative Office of the Courts (AOC), intoxicated driver on the road is of great value. Ms. statute simpler and more understandable. stated she has completed a survey of circuit clerks and Oldham agrees that the funding and cost for the In response to Senator Webb, Matthew Cole, judges who take particular interest in these issues. system requires us to be resourceful in where we place Director of the Division of Driver Licensing, stated The majority of feedback indicates that the process is the money for this program to have the most impact. that the review process could be written in regulation too confusing and complicated. A statutory revision Lois Linhold, Founder of MADD Kentucky, to keep it from being subjective, because that leads to making it more of an administrative process would believes the IID is the only tool we have that will inequity. improve the usage. There are inconsistencies in save lives. If one person’s life is saved as a result of the In response to Representative Lee, Commissioner interpretations by KYTC regarding the mandatory IID, it was worth the cost. Ms. Linhold told the story Henderson clarified that one of the reasons for court period. A clearer statutory period about revocations of Detective Schweitzer, who was on the sidewalk ordered IIDs not always being installed is that the and suspensions, finite periods, and making it possible talking to an individual, and was struck by a vehicle offender has the option to “sit out” and not drive for judges to refer someone over to the KYTC for the driven by an impaired repeat offender, killing both during that period. Director Cole informed the IID would be preferable. AOC is also concerned with pedestrians in 2016. The MADD Kentucky members committee that the cost to install the IID averages the financial challenges for those who cannot afford it, are in support of the IID program and ask that it be from $85 to $130, plus a monthly fee ($85 maximum) and in how the violations are reported. Ms. Stephens mandated for all offenders. In 2017, West Virginia for monitoring. Commissioner Henderson explained believes improvements through a stakeholder driven mandated the program for all offenders. That year that the reported violations account for each time bill are possible, and AOC looks forward to working West Virginia reported 69 lives lost, whereas Kentucky the vehicle shut down due to the driver entering the with legislators during the 2019 Session. had 175. Ms. Linhold stated that Jefferson County vehicle with an alcohol content level above the allowed In response to Chairman Fischer, Judge Jerry uses the real-time SCRAM monitoring system, but it amount, as well as possible tampering with the system; Crosby, District Court Judge in Oldham, Henry, does not prevent that person from getting in a vehicle however, the violations are not necessarily violations and Trimble Counties, responded that when having and driving. MADD Kentucky would like to see the of the law. Convictions stemming from violations may the option to not drive for 30 days versus the cost of KYTC handle the administrative license revocation. vary on how they are reported, but are often reported having the IID installed for 60 days, most first time Representative Reed was reminded of when by the County Attorney. Commissioner Henderson offenders will opt for the 30 days, resulting in not he was 7 years old, and experienced the horrific bus stated that one of the main goals of the IID is to keep having the IID installed at all. The cost for the IID is crash with a drunk driver in 1988 that took the lives intoxicated drivers off the road. Director Cole stated a large part of why it is not being used. Judge Crosby of 27 people. In response to Representative Reed, Ms. that an offender’s number of offenses usually trends grants the IID when requested. The violation report Linhold believes that using both the IID and Alcohol down as the time continues with the IID because shows how often it has kept the vehicle from being Monitoring Bracelet would be very valuable, so that he or she realizes that the equipment will not allow on the road due to a positive (.02) test, which has led an intoxicated offender who chooses to drive another drinking and driving. Judge Crosby to favor granting the devices. vehicle without the IID would still be reported, in In response to Representative Petrie, Director Steve Gold, President of the Kentucky County real time, as intoxicated. It would then be left to the Cole noted that the time period can be from 6 to 12 Attorney’s Association and Henderson County authorities as to how they would handle the situation. months. Commissioner Henderson stated that the Attorney, referred to the current IID law, and stated In response to Representative Petrie, Ms. monthly cost is paid directly to the vendor, and can that an alcohol-related DUI, if not a first offense with Linhold agrees that the resources and tools need to be usually be paid month-by-month. Director Cole said an aggravating circumstance, does not require the IID used for the maximum effect. that a violation does not result in additional fees. to be mandated. Therefore, the number of offenses In response to Representative Donahue, Ms. In response to Representative Reed, subjected to the IID is a small percentage. There is a Linhold stated that there is a protocol for a vehicle Commissioner Henderson stated that many court concern as to whether or not the finding of alcohol is that reads your breath before it will start. systems use a continuing alcohol monitoring device accurate, resulting in not having the IID as an option. Medical Marijuana

THE KENTUCKY GENERAL ASSEMBLY 13 Representative Hart began with saying medical When she became pregnant her medicine dosage was that he and Representative Moser both voted for marijuana can have positive effects on disorders such increased, causing her to not be able to drive, trouble the Right to Try legislation, allowing the state to go as epilepsy and other seizure disorders. He reiterated sleeping, and difficulty with walking and balance. She around the FDA. Hemp is currently being used and that marijuana allowed under this bill would not showed the amount of her daily medications. Mrs. it violates federal law. Marijuana should not be held be for recreational purposes, but solely for medical Everett said she would like the option to be taken off under a different standard. A recent study from the use. The goal is to set the guidelines for the medical of some of the medications that medical marijuana University of Kentucky shows a 6 percent decrease community to be able to recommend it for treatment. could replace. in the prescription of opioids in states where medical This is an effort to bring a resource to Kentucky Mr. Taylor Everett, Cassie’s husband, explained marijuana is approved. Representative Moser stated that Kentuckians are currently going out of state to the frustrations of not having the option to use she has a report showing states that have approved purchase. As a paramedic for 30 years, Representative medical marijuana to replace the medications that medical marijuana have an upward trend on opioid Hart states he has never taken someone to the hospital cause his wife to be in pain or to not be able to overdoses. Representative St. Onge said she has for overdosing on marijuana. function properly. Mr. Everett pointed out that their studies showing the opposite and will be happy to Representative St. Onge stated that this bill is daughter, Lexi, was born with one femur shorter than supply those to Representative Moser. Representative not the same as what was presented last year. This the other. Testing showed that the medication Mrs. St. Onge agrees that the FDA is not the “end all, be all.” is not for recreational purposes nor is it meant to Everett had to take while pregnant was the main Mr. Everett commented that Epidiolex is be a revenue generator for the state. It addresses possible cause. Mrs. Everett has epilepsy throughout a drug approved by the FDA that comes from a the concerns of Kentuckians who have been seen her brain, so surgery is not an option. They have tried fractured marijuana plant, but the neurologist cannot by a doctor, for whom traditional therapy has not Vagus Nerve Stimulation (VNS) but it did not help. prescribe it because it stems from a Schedule I been effective, and whose quality of life has been The only current option is to continue to increase her plant. Representative Moser mentioned a six month reduced by medications. Authorities would be aware medication as it progresses. expedited FDA fast track system available. She also of who is allowed to have home-grown marijuana. Representative Nemes said he was contacted by stated she will look into the Schedule I rating for Representatives St. Onge and Nemes feel the best the Everetts. Mrs. Everett was a third grade teacher Epidiolex. place to house these regulations is the Justice Cabinet. and is now a kindergarten classroom assistant. Her In response to Representative Moser, The number of allowed home-grown plants has been neurologist told her medical marijuana is an option Representative Nemes does not know the cost reduced from 12 to 6. The reason to allow home- he would like her to have. The Everetts have spoken to regulate, enforce the new laws, and establish a grown plants is cost, distance, and quality. Those in with people from around the country who are cannabis commission. They will receive the fiscal rural areas may not have the means to travel into getting the relief that they would like for her to have. note when the bill is finished. Their understanding is cities for purchasing, and the quality of what they Representative Nemes stated that there is no panacea, that it will not be a big money maker for Kentucky would buy off the streets would not be monitored. but everyone needs to know that medical marijuana but will pay for itself and have a little extra to put into This bill does not contain a list of qualifying helps people. the General Fund. Representative Moser stated that medical conditions. That is to be left up to the In response to Senator Webb, Mr. Everett stated for every $1 raised in taxing alcohol and tobacco, discretion of the doctors. Not having a list will also the current monthly medication cost, after insurance, Kentucky spends about $10 enforcing those laws and keep conditions not listed from having approval is $500. regulations. Kentucky does not tax pharmaceuticals, sought each year. Cities and counties will have the Senator Seum testified that his granddaughter so she believes this will end up costing more than it opportunity to opt out of the provision, allowing them has epilepsy. She is 22 years of age now and is an generates. Representative Nemes stated that medical to remove themselves from the businesses associated illegal user of medical cannabis. Because of the help marijuana will be taxed at the wholesale level, but not with medical marijuana, but does not remove the it has given her, she now has a man in her life, a job, on the retail side. ability of a resident to use medical marijuana. and a life. In response to Representative Cantrell, Representative Nemes stated that this bill builds Representative Donahue testified that he lost a Representative St. Onge said the wholesale taxes off of HB 166. Changes were made to hold the line sister to cancer who was assisted by the use of medical collected will be outlined in the bill. What is leftover between recreational and medicinal marijuana, such marijuana to improve her quality of life towards the will go to law enforcement to help support their needs as reducing the number of plants allowed, allowing end. regarding this issue. The main thing to remember is the doctor to determine the qualifying conditions, Representative Sinnette testified that his mother that legalizing medicinal marijuana is not expected or allowing the landlord to prohibit growth on the is 90 years old and a retired oncology nurse, and has intended to be a major money maker for Kentucky. property, and misuse through sharing or selling been an advocate of medical marijuana since the Representative Nemes commented that one resulting in potential prosecution and the loss of 1970s, after seeing so many patients die, not from intention is to keep it affordable and accessible to your card forever. The prohibition in HB 166 against the cancer, but from lack of nutrition. He stated that those who need it, without adding taxes. cooperation between state and federal law enforcement his sister died from lack of nutrition while having In response to Senator Webb, Representative has been removed. The “no smoking” provisions were liver cancer. Representative Sinnette believes some Nemes does not know what the average monthly strengthened to include no smoking in public places. of the reasons for not legalizing medical marijuana cost for this prescription would be. The University When a doctor certifies that the patient may benefit may be due to farmers not being geared for it and of Kentucky study indicates a 6 percent decrease for from the product, he or she will tell the Kentucky wanting to stick with what they know, as well as law opioid prescriptions, giving a significant savings. Board of Medical Licensure, and put it into a system enforcement and social workers being concerned that Reducing opioid overdoes saves on hospital costs, and to be monitored immediately. If a doctor thinks he or legalizing marijuana could result in a loss of jobs for transportation. she may begin to certify patients, the doctor has to their profession. There will always be illegal drugs, so Representative St. Onge mentioned how helpful inform the Kentucky Board of Medical Licensure so he does not believe this will be an issue. People want this can be in reducing anxiety in veterans, allowing that the doctor can be monitored. If a patient is able to use natural products to treat symptoms and pain them to function. to home-grow, the Kentucky State Police, the Sheriff, rather than chemicals. Mr. Everett commented that in the amount of and local law enforcement will be informed. These Representative St. Onge confirmed Friday, savings for them, one bottle of the oil would cost them changes are being made in an effort to keep it from September 14th, as the date this issue will be taken up $300.00 and would last approximately three months. becoming recreational. at the Licensing, Occupations, and Administrative In response to Representative Petrie, Mrs. Cassie Everett shared her testimony. She Regulations Committee meeting. Representative Nemes agrees that the bill needs to be was diagnosed with juvenile epilepsy at the age of In response to Representative Moser, presented in a timely manner, allowing time to review eleven, with a 70 percent chance of outgrowing it and Representative Nemes stated the FDA cannot each issue. They want to make sure it is the right bill 30 percent chance of it becoming worse. At the age approve marijuana because it is a Schedule I drug. when presented. of 17, she experienced her first grand mal seizure. Representative Nemes reminded the committee There being no further business, the meeting

14 2018 Interim LEGISLATIVE RECORD adjourned at 12:19 pm. grown significantly during the last 20 years. The new HB 601 – AN ACT relating to the disposition building code manual includes international codes. of human remains, sponsored by Representative INTERIM JOINT COMMITTEE ON Eliminating the recovery of attorney fees in suits Joe Fischer. when a certificate of occupancy is issued by a licensed Representative Fischer said that, under his bill, LICENSING, OCCUPATIONS, AND inspector will incentivize builders in rural areas of funeral directors would have the option to inter ashes ADMINISTRATIVE REGULATIONS the state to have inspections performed during the if cremated human remains are unclaimed for two Minutes of the 3rd Meeting construction process. This will give a reasonable years. If they choose to do inter, they could deliver of the 2018 Interim assurance that the home meets or exceeds consensus the remains to a bona fide religious society, veterans September 14, 2018 based standards. organization, or civic group for the sole purpose of Call to Order and Roll Call Bob Weiss, Executive Vice President of the interment, burial, entombment, or placement in The 3rd meeting of the Interim Joint Committee Home Builders Association of Kentucky, said the a columbarium to allow a proper burial. Funeral on Licensing, Occupations, and Administrative attorney fees would only be eliminated in areas that directors would be required to keep records of the Regulations was held on Friday, September 14, 2018, enforce the building code and issue a certificate of disposition or transfer for 10 years. at 10:00 AM, in Room 129 of the Capitol Annex. occupancy. Father Stef Bankemper, a priest in the Covington Senator John Schickel, Chair, called the meeting to In response to a question from Representative Diocese, said he had recently become aware that there order, and the secretary called the roll. Koenig, Mr. Corbett said rural areas that do not were unclaimed remains in funeral homes. He said Present were: adopt the building code and do not issue a certificate that the Catholic Church is responsible, through the Members: Senator John Schickel, Co-Chair; of occupancy would not be required to pay attorney corporate works of mercy, to see that all remains are Representative Adam Koenig, Co-Chair; Senators Joe fees that people in urban areas, who have inspections buried with dignity. Bowen, Tom Buford, Julian M. Carroll, Denise Harper and a certificate of occupancy, would be required In response to a question from Senator Angel, Jimmy Higdon, Christian McDaniel, Dan to pay. Mr. Weiss said that a structural inspection is Schickel, Father Bankemper said this bill regards “Malano” Seum, and Damon Thayer; Representatives necessary to for a certificate of occupancy. only cremated remains and not bodies. Sidney Tom Burch, Jerry T. Miller, C. Wesley Morgan, In response to a question from Senator Buford, Fogle, Executive Director for the Kentucky Funeral Kimberly Poore Moser, David Osborne, Ruth Ann Mr. Weiss said that about one-third of the counties in Directors Association, said that the Funeral Directors Palumbo, Phillip Pratt, Arnold Simpson, Walker Kentucky do not have code enforcement inspectors Association had no problems with the legislation. Thomas, and Susan Westrom. to issue final occupancy certificates. Senator Buford In response to a question from Representative Guests: Senator Stephen Meredith; Charlie said he felt language in the bill might be found Simpson, Sidney Fogle said certain counties have Corbett, Vice President, Bob Weiss, Executive unconstitutional. funds to bury the indigent. Funeral directors contact Director, Home Builders Association of Kentucky; SB 183 – AN ACT relating to cosmetic services, family, but they sometimes are reluctant to come Senator Alice Forgy Kerr; Ainslie Walton, sponsored by Senator Alice Forgy Kerr. forward due to lack of funds or other reasons. cosmetologist; Julie Campbell, Administrator, Ainslie Walton, cosmetologist, said that she has Representative Simpson said that there should Kentucky Board of Hairdressers and Cosmetologists; been a small business owner for five years. Thirty-two be language to require the funeral director to notice a Representative Joe Fischer; Father Stef Bankemper; percent of the licensees in the cosmetology industry family if there is an actual address so that remains are Sidney Fogle, Funeral Directors Association of are self-employed small business owners. Legislation available to be picked up. Kentucky; Kevin Sabet, PhD, Director, Drug Policy limits cosmetologists from expanding the industry. Opposition to Medical Marijuana Institute, Assistant Director, University of Florida Current law requires cosmetologists, nail technician, Kevin Sabet, Ph.D, President of Smart College of Medicine, Division of Addiction Medicine; or esthetician to practice in a licensed salon. If they Approaches to Marijuana (SAM), Director, Drug Michael Fletcher, MD, President, Kentucky Society of have a client who has become home-bound, they are Policy Institute, Assistant Professor, University of Addiction Medicine. not permitted to go to that person to render a service. Florida College of Medicine, Division of Addiction LRC Staff: Tom Hewlett, Bryce Amburgey, Mobile salon units are not permitted. Medicine, said that after the legalization of marijuana Jasmine Williams, Melissa McQueen, and Susan Mobile units would make it possible to service in Colorado in 2013 it became clear that the Cunningham. the home-bound community. Recent studies show that medical marijuana industry was growing toward Minutes the nation’s home-bound population is 5.6 percent. commercializing the heavy use of marijuana. Top The minutes of the August 24, 2018, meeting There is a need for more mobility for the individual academic experts from around the country, as well were approved without objection. cosmetologists as well as mobile units. A mobile unit as Operation Unite in Kentucky, have discussed the SB 207 – AN ACT relating to causes of actions would not be different than a mobile dental clinic, or issue and agree that marijuana legalization should be for building code violations, sponsored by Senator mobile massage unit, which are already authorized. evidence based and not based on emotions. SAM is Stephen Meredith. All have equal or higher sanitation standards and not about criminalizing users or denying medicine Senator Meredith said this bill was an effort to inspections, and all are legal in the state of Kentucky. that could be helpful for people who have terminal help the building industry recover from the previous The younger generation requires changes in the illnesses, and people with a severe disability or illness recession and remove obstacles for affordable housing way businesses provide services. Uber, Amazon, and that may gain some comfort from the components for Kentuckians. food trucks require small businesses to adapt in the of marijuana. However, science, not politics, should Charlie Corbett, Vice President of the Home way services are delivered. There are 30 other states, determine medicine. Voting on medicine is a strange Builders Association of Kentucky, said that expecting including the contiguous states, that allow mobility of precedent, only seen once before with Laetrile. a perfect outcome in building a home was an individual cosmetologists and mobile salons. There are separate issues, often conflated, in unreasonable expectation due to many factors that Julie Campbell, Administrator, Kentucky Board the legalization of marijuana. The plant is highly include terrain, materials, weather, and other issues. of Hairdressers and Cosmetologists, said the board is complex, with hundreds of components in it. Science He stated that KRS 198B.130 requires perfection fundamentally and completely against this legislation. has revealed a few uses of these components, however because it allows for recovery of attorney fees in She understands the need to serve infirm individuals’ there is little known about most of the components lawsuits for violation of the Uniform Building Code needs, however there is a high risk to those individuals of the plant, such as effects produced when they are by not allowing for normal defects or benign non- because of their medical conditions. A mobile salon is together or when isolated. Experience with marijuana conformance, and provides incentive for litigation very dangerous. There are no resources for oversight is very different than the experience with opium and rather than reconciliation or remediation because and human trafficking in this industry makes it highly the poppy plant in that the poppy is a far less complex it allows attorney fees to be added to the monetary dangerous. This will put the public at risk regarding plant. award. safety and infection control. The proposed inspection All the questions about medical marijuana are Mr. Corbett said that the building code has schedule defeats the purpose of surprise inspections. difficult to answer. Opium is not smoked to get the

THE KENTUCKY GENERAL ASSEMBLY 15 effects of morphine. Willow bark is not chewed to and lowers the price and the black market undercuts Moser about testing individuals for their level of get the effects of aspirin. He questioned why there the legal price and therefore thrives. There are marijuana intoxication, Mr. Sabet said there are is a need for whole plant-based applications for adulterated products in the black market often laced tests in development. THC metabolizes differently marijuana. There are marijuana based medications with Fentanyl. There are more locations as a result in the body than alcohol, and different people that have passed FDA muster. There are many groups of legalization of medical marijuana. This leads react in different ways, making it difficult to prove researching the benefits of marijuana for medical use. to acceptance of marijuana, and then recreational impairment. There could and should be exceptions made for people marijuana is made legal. In response to a question from Senator Carroll, who have terminal illnesses. This is a very limited Legalization leads to issues such as crime and Mr. Sabet said law enforcement is able to tell the subset. Marijuana is a schedule one drug. The FDA youth use. The alcohol business is now getting into the difference between a hemp plant versus the THC recently performed an exhaustive eight factor analysis pot business because the products are used together. If plants and how to regulate growing laws. of the scheduling of marijuana, with zero input from an employee tests positive for marijuana he can say to In response to a question from Senator McDaniel, the Department of Justice. This review found no basis the employer they cannot prove they were high when Mr. Sabet said there are regular lawsuits, either by to reschedule the entire marijuana plant. It is grown in they were on the job because THC marijuana is fat employees who feel they have been discriminated different ways, and there are unknown components. soluble and stays in your system longer than alcohol. against or employers who claim there is damage Mr. Sabet said he is a proponent of expanding research There are also many regulatory failures due to to their business, as a result of drug use, often with to make it easier for researchers to study the plant. cartels using a license to cover for other operations. marijuana. In the current environment, someone has Examples of marijuana-based drugs include There is a misconception that if something is legal it something they think is legally prescribed, which it is Cannabidiol. It has been approved, and it is an is regulated. However, the industry puts profits before not until the Controlled Substances Act is amended. active component in marijuana. Another product, health. Foreign cartels are taking full advantage. Representative Westrom commented that this Marinol which is THC, the psycho-active component There are companies that promise seed to sale topic has been around for 30 years and is continually in marijuana, has been available for 30 years. This tracking of plants, but there are worrisome loopholes avoided by the federal government and the FDA. The product has been effective for nausea related to in this business. Law enforcement is constantly federal government does not want to rock the boat cancer chemotherapy. This is one of the strongest devoting resources to prevent sales to minors. in the vast pharmaceutical industry that is a multi- areas where THC has been found to be effective. Edibles are increasing due to the decline of smoking. million dollar industry and the general public is not Another synthetic of THC is Cesamet (nabilone) and Top researchers have debunked the theory that if getting a fair shake. a third Epidiolex Cannabidiol (CBD) used to treat a marijuana is legalized the opioid use will decrease. In response to a question from Representative few very rare disorders. The Department of Justice Michael Fletcher, M.D., President of the Miller, Dr. Fletcher said less regulation is better but has not yet scheduled Epidiolex. Sativex, an extract of Kentucky Society of Addiction Medicine, said that, there are always unintended consequences with marijuana, has been approved in 28 countries but not as an addiction medicine physician, there need to legislation. It is a tough call and the doctor/patient in the United States for lack of patients who will enter be safe guards in all jurisdictions where marijuana relationship is key. A majority of patients who shoot clinical trials. Epidiolex has been approved for use has been or may be legalized. The American Society heroin at some point previously smoked dope. Access with children who have Lennox-Gastaut Syndrome of Addiction Medicine (ASAM) does not support to care and getting reimbursement from people who and Dravet Syndrome. the legalization of marijuana and recommends that are uninsured is a component. It is a mistake to think marijuana approved for jurisdictions that have not yet legalized this take In response to a question from Representative medicinal use will be easily regulated. It is difficult caution and not adopt a policy until more can be Osborne, Mr. Sabet said Alaska legalized a grow- at the state level to provide enough resources to learned from the natural experiments now underway your-own medical marijuana bill but repealed it in regulate and ensure there are no contaminates. There in places where marijuana is legal. ASAM does 1990 and recriminalized marijuana. Daily use is on is a mistaken idea that there is a difference between support research monitored by safety regulations the rise because there is an industry pushing the medical and recreational marijuana. In Colorado, through FDA research and post-marketing processes. medical use idea. after marijuana was legalized, stores put a curtain ASAM’s position on cannabis-based products and In closing Dr. Fletcher commented that in the middle of the recreational store to separate other drug delivery modalities is that they are outside cannabinoid receptors one and two were discovered identical inventories. People who want to purchase the normal practice of modern medicine and should less than 20 years ago. Research and development of medical marijuana should go to their pharmacists be subject to the same efficacy and safety standards drugs takes a long time. Good research has only been or physician. Psychologically, in the short term, it is applicable to all other prescription medications. possible recently. possible that THC could help people feel better from ASAM rejects smoking as a way of drug delivery. There being no further business, the meeting some diagnosis. Long term studies show that heavy To clarify recent statements that Senator McConnell was adjourned at 11:30 AM. use for depression and anxiety are associated with is seeking to have marijuana changed from C1 to a schizophrenia. C2 medication, this is misleading and inaccurate. INTERIM JOINT COMMITTEE ON There have been infomercials that promote The policy regarding the legalization of hemp as an marijuana as a cure-all for multiple ailments. There agricultural product should not be confused with the VETERANS, MILITARY AFFAIRS, is some promise with the medical potential of the legalization of marijuana. AND PUBLIC PROTECTION components of marijuana, but claims being made In response to a question from Senator Schickel, Minutes of the 2nd Meeting outside the bounds of science. Many groups are Mr. Sabet said there is no data on the number of claims of the 2018 Interim trying to sell CBD drugs without going through the for disability being filed by young males. Drugs are September 13, 2018 FDA process. Those drugs have no safety assurances. all used together creating an addiction epidemic. It is Call to Order and Roll Call Random testing of approximately two dozen CBD his position that marijuana should not be legalized. The 2nd meeting of the Interim Joint Committee products sold on Amazon and other online venues If legalized, Louisiana and perhaps New York and on Veterans, Military Affairs, and Public Protection show that the products do not contain the CBD that New Jersey have more successful models regarding was held on Thursday, September 13, 2018, at 1:00 the label claimed. Rather, these products contained legalization of marijuana. PM, in Room 154 of the Capitol Annex. Senator THC, heavy metal, mold, pesticides, and bacteria. Senator Seum opined that if marijuana were Albert Robinson, Chair, called the meeting to order, Surveys reveal that the average user of medical legalized for medical use it would be safer to go to and the secretary called the roll. marijuana is an otherwise healthy, usually young a store than a patient purchasing “off the street.” Mr. Present were: male, with no history of life threatening disease. When Sabet responded that he is sympathetic to his situation Members: Senator Albert Robinson, Co-Chair; a state legalizes marijuana there is a cycle beginning as he also has family members with conditions who Representative Tim Moore, Co-Chair; Senators Julian with medical marijuana. Home growing gives cover may benefit from medical cannabis. M. Carroll, Denise Harper Angel, Jimmy Higdon, for the black market. Legalization increases supply In response to a question from Representative Dennis Parrett, Wil Schroder, Mike Wilson, and Max Wise; Representatives Linda Belcher, John Blanton,

16 2018 Interim LEGISLATIVE RECORD Tom Burch, Jeffery Donohue, Myron Dossett, Jim with over 17,000 employees in the industry. The what regulations the state of Kentucky can do about DuPlessis, Chris Fugate, Jeff Greer, Mark Hart, goal is to unify the Kentucky Aerospace and Defense autonomous vehicles. Lieutenant Ditto explained Regina Huff, DJ Johnson, Ruth Ann Palumbo, Rob Industry under one voice and hope to build more that regarding the autonomous technologies, no new Rothenburger, and Walker Thomas. relationships. restrictive regulations or legislation should be put in Guests: Susan Ryan-Bisig, Distinguished Promoting the industry not only within the place. There are already laws about invading privacy. Veteran; Dean Stoops, Chief of Staff, Kentucky state but outside state borders is important to the Companies that see states with more regulations and Department of Veterans Affairs; Colonel Blaine consortium. They want to inform Kentucky citizens laws in place will be more likely to take their business Hedges, Executive Director, Kentucky Commission about KAIC and the potential opportunities it has to elsewhere. on Military Affairs; Stewart Ditto II, Executive offer. Lieutenant Ditto has attended events throughout Boots to Business Initiative Director, Kentucky Aerospace Industry Consortium; the country and Canada to promote and showcase the Corey Ann Howard Jackson, Policy and Corey Ann Howard Jackson, Policy and Constituent growth of the industry in Kentucky. Constituent Services Liaison, Lindsay Hughes Services Liaison, Office of the Secretary of State; Lieutenant Ditto stated it is important that Thurston, Senior Advisor, and Joe Slaughter, Co- Lindsay Hughes Thurston, Senior Advisor, Office of the Kentucky Aerospace companies have the same Founder of KNS Community Development gave a the Secretary of State; Joe Slaughter, Co-Founder of opportunities as other companies which is being presentation and update on the Boots to Business KNS Community Development; Isaac VanHoose, achieved in part by creating a workshop to educate and initiative. Commissioner of Department of Professional calculate the cost of the AS9100 Quality Management HB 319 passed, and Boots to Business is now Licensing and Public Protection Cabinet; Tony Cado, Certification that is needed for companies in the Kentucky law. They explained the initiative helps Executive Advisor, Office of Legal Services for Public industry. Stewart Ditto explained that Kentucky veterans transition from their time in the military Protection Cabinet. companies also need to be educated on cyber security to building a business. Veterans who create new LRC Staff: Erica Warren, Jessica Zeh, Jonathan standards and the International Traffic in Arms business are exempt from paying initial filing fees Philpot, and Elizabeth Hardy. Regulations (ITAR). to the Secretary of State’s office, as well as waived Representative Donohue moved to adopt the Much of the aerospace industry has migrated annual report filing fees for the next four years if August 13, 2018 minutes. The motion was seconded to the south and midwest. Some states include businesses qualify. This initiative is for veterans of the by Senator Parrett. The minutes were adopted. Alabama, North Carolina, South Carolina, and U.S. Armed Forces and Reserves, as well as National Pledge of Allegiance Georgia. Reasons why companies are attracted to Guard service members. Co-Chair Moore introduced the distinguished these areas are tax incentives, low energy costs, low Boots to Business is used to notice and veteran, Susan Ryan-Bisig, before she led the rates of unionization, and having a military presence. distinguish veteran-owned businesses as a way to say committee in the pledge. KAIC sees this as a window of opportunity and wants thank you to the veterans who have sacrificed for our Distinguished Veteran to make Kentucky the main focus of the Aerospace country. Since the program started a month and a half Susan Ryan-Bisig was rewarded the growth in the midwest and south. ago, over 100 veterans are now participants, according Distinguished Veteran coin for her 9.5 years in the Education in Kentucky is very important to to the Secretary of State’s office. Joe Slaughter testified military. She had a degree in hospital administration KAIC. The University of Kentucky developed Next- that Boots to Business helped economic efficiency of before being stationed on Edwards Air Force base Generation Entry Thermal Protection. Morehead his company overall. in the early 1980s. She went to graduate from pilot State is a leader in CubeSat and small satellite Corey Ann Howard Jackson informed training in 1987. Her primary role in the military was technologies and they are also part of the NASA Deep members that four state veterans’ centers will be as a KC135 air refueling pilot. She encouraged others Space Network (DSN). The University of Louisville used as polling locations in upcoming elections. The to pursue a career in the military. has done research in micro and nanotechnologies Secretary of State’s office partnered with the Kentucky Other Business and has a large rocketry program. Murray State has Department of Veterans Affairs, and the Hopkins, Co-Chair Moore went introduceed Dean Stoops, developed an Aerospace Engineering track to support Hardin, Jessamine and Perry county clerks to bring the new chief of staff for the Kentucky Department of an aerospace career. these locations to the state. Veterans Affairs. Co-Chair Moore reminded members KAIC has been putting together a new Corey Ann Howard Jackson also talked about that next month’s meeting will be in Hopkinsville initiative called Elevate Kentucky, an initiative which the Military Heroes Voting Initiative which allows and there will be a tour of Fort Campbell, a dinner focuses on taking Kentucky to the next level in the military and overseas citizens to register to vote, reception the night before, and a luncheon on the day aerospace industry. The goal is to bring autonomous update voting registration online, as well as request of the meeting. technologies to Kentucky. However, because of absentee ballots. The Secretary of State’s office has Senator Higdon recognized Brigadier General cultural issues, restrictive regulatory systems, and received 1,033 military or overseas voting ballots. Benjamin Adams III, upon his retirement from the need for new infrastructure, autonomous technology Representative Greer wanted to know what military. General Adams is the Commissioner of the has not gained popularity. Kentucky is taking steps to is being done to get the word out on the Boots to Kentucky Department of Veterans Affairs. A citation becoming the leader in developing this technology, Business Initiative. Lindsay Hughes Thurston said was read and presented to General Adams, thanking and Lexington and Louisville are trying to find ways her office speaks with interest groups across the him for his years of service. to bring autonomous technologies to their cities. Commonwealth and goes to events to educate others. Kentucky Aerospace and Defense Industry In response to Senator Carroll’s question, Social media is another great way of informing the Colonel Blaine Hedges, Executive Director, Lieutenant Ditto explained that the Aerospace public. The Secretary of State’s office offered to Kentucky Commission on Military Affairs gave Industry is number one in Kentucky’s exports. promote this in committee members’ communities. members an overview of the Aerospace Industry Responding to Representative Donohue’s Consideration of Referred Administrative Study that took place from 2015 until 2017. The study question, Stewart Ditto stated that because of strict Regulations started with the Office of Economic Adjustment grant federal laws and restrictive regulations, many The committee considered the referred in which Kentucky received $1.2 million for phase companies wanting to work with drones and other administrative regulation 830 KAR 001:010 relating one. Phase two received $1.7 million in grant money. vehicles will look to other countries, such as Canada to application, certification of registration, and fees. The industry is implementing the recommendations for their businesses. Isaac VanHoouse and Tony Cado from the Public that came from phase one. Colonel Hedges introduced Representative Rothenburger questioned if the Protection Cabinet talked briefly about the regulation. his colleague, Stewart Ditto II, Executive Director of study broke down those tax incentives mentioned in This is updating a regulation for secondary metal Kentucky Aerospace Industry Consortium (KAIC). the presentation. Lieutenant Ditto explained that the recyclers in Kentucky and lowering the registration Kentucky makes 11.7 billion dollars in aerospace study was just in the state of Kentucky and did not fee from $100 to $75. The committee took no action exports. Stewart Ditto said there are over 600 look into other states. on the referred regulation. companies, of which about 100 are manufacturers, Representative DuPlessis wanted to know There being no further business, the meeting

THE KENTUCKY GENERAL ASSEMBLY 17 was adjourned at 2:10 PM. group homes that are publicly operated, providing funds for foster children; (2) created a study group on residential care on a 24-hour basis to children, not performance-based contracting in KRS 199.665 that CHILD WELFARE OVERSIGHT related by blood, adoption, or marriage to the person is required to send its one-time recommendations maintaining the facility. KRS 199.011(6) defines a by December 1, 2018 to the Governor, the Interim AND ADVISORY COMMITTEE child-placing agency as any agency licensed by the Joint Committee on Appropriations Revenue, Minutes cabinet, which supervises the placement of children Interim Joint Committee on Health and Welfare and September 17, 2018 in foster family homes or child-caring facilities, or Family Services, and the Child Welfare Oversight Call to Order and Roll Call which places children for adoption. 922 KAR 1:300 and Advisory Committee; (3) created a privatization The Child Welfare Oversight and Advisory sets the standards for child-caring facilities and 922 study group in KRS 629.345 that is required to send Committee meeting was held on Monday, September KAR 1:310 sets the licensure of child-placing agencies its one-time recommendations by July 1, 2019 to the 17, 2018, at 2:00 p.m., in Louisville, Kentucky at the or licensed foster care and adoption providers. same groups previously mentioned; (4) standardized Crowne Plaza Louisville Airport, 830 Phillips Lane, An agency or facility has to be licensed to conduct home study requirements for foster parents, whether Pendleton Room, Crowne A Ballroom. Senator Julie business in Kentucky. The DCBS promulgates the publicly or privately approved in KRS 199.474; (5) Raque Adams, Co-Chair, called the meeting to order administrative regulations for child-caring facilities specified timelines to permanency for foster children at 2:00 p.m., and the secretary called the roll. and child-placing facilities and are enforced by in multiple statutes; and (6) mandated advanced 10- Present were: cabinet’s Office of Inspector General. Some agencies day notice to foster parents in regard to a foster child Members: Senator Julie Raque Adams, Co- are licensed by do not provide services to the state moving placements in KRS 620.365. The cabinet has Chair; Representative David Meade, Co-Chair; such as private adoption agencies. To take a child implemented the performance-based contracting Senators Denise Harper Angel, Reginald Thomas, and in the cabinet’s custody, a provider has to make and privatization study groups moderated by Casey Whitney Westerfield; Representatives Lynn Bechler, application with the state that is reviewed by a multi- Family Programs and Chapin Hall. Currently the Angie Hatton, Joni L. Jenkins, and Suzanne Miles. faceted team, and pass an onsite inspection. Once the department is on target to meet the deadline of Guests: Jill Seyfred, MSW, Executive Director, application is and the onsite inspection are approved, December 1, 2018 and July 1, 2019. but if for any Prevent Child Abuse Kentucky; Jaime Pittenger, the agreement is executed. Currently, the cabinet reason it needs more time, the committee will be MD, FAAP, Board President, Prevent Child Abuse has agreements with 47 providers, 25 facilities and notified that the department needs more time. Kentucky, Program Director, Pediatrics, Associate 22 child-placement agencies. A facility or agency is The federal Family First Prevention Services Act Clinical Professor, UK HealthCare, Department of paid on a per child per diem basis established by KRS Pub. L. 115-123 passed in February 2018 shifts Title Pediatrics; Kevin Payton, Immediate Past President, 199.641 and 922 KAR 1:360. The per diem paid is IV-E of the Social Security Act funding away from Prevent Child Abuse Kentucky, Top Shelf Lobby; a bundled rate that is inclusive of room and board, foster care maintenance and adoption assistance and Eric T. Clark, Commissioner, Elizabeth Caywood, watchful oversight, facility or agency operations, and toward in-home services to try to prevent children Deputy Commissioner, and Lesa Dennis, Chief of behavioral health care. On August 1, the per diem from entering out-of-home care (OOHC). The Act’s Staff, Department for Community Based Services, for Level IV and V facilities and emergency shelters emphasis is to prevent children’s entry into foster care Cabinet for Health and Family Services; Michelle was increased. The department has a contract with through enhanced funding flexibility for evidence- M. Sanborn, MSW, President, Children’s Alliance; the Children’s Review Program to help with referrals based prevention services for children and youth Elizabeth Croney, Executive Vice President of and matching the child’s needs with the appropriate determined to be candidates for foster care. All states Clinical Advancement, KVC Health Systems; and provider and level’s the child that establishes the must comply with the Act by October 1, 2021, but Anya Weber, Cabinet for Health and Family Services. child’s per diem. The providers can contract hold states can opt in as soon as October 1, 2019. DCBS Guest Legislator: Representative Addia other licenses and contract with other state agencies has decided to opt in on October 1, 2019 to make sure Wuchner. for services such as the Department for Juvenile that the state is in compliance by October 2021 and LRC Staff: Ben Payne and Gina Rigsby. Justice. sustain the resources given to the cabinet in House Approval of the Minutes As of June 2018, only 43 percent of all children in Bill 1. A motion to approve the minutes of the August the foster care population are eligible under Title IV-E In response to questions by Senator Westerfield, 20, 2018 meeting was made by Representative Bechler, of the Social Security Act. Of those who are eligible, Deputy Commissioner Caywood stated that the seconded by Senator Harper Angel, and approved by the federal fund sources covers approximately 71 different types of facilities are residential, emergency voice vote. nd percent of their foster care maintenance. The average shelters with or without treatment, child-placing Welcome to the 22 Annual Kids Are Worth care and support per child per year is $39,074. agencies that do adoption services that do not work It® Conference Lesa Dennis, Chief of Staff, Department for with the state, and foster care and adoption service Jill Seyfred, MSW, Executive Director, Prevent Community Based Services, Cabinet for Health and agencies. Ms. Dennis stated that once a child is placed Child Abuse Kentucky, welcomed the members to nd Family Services, stated that 74 percent of children in in OOHC, staff works with the Children’s Review the 22 Annual Kids Are Worth It!® Conference. foster care are in private child placing (PCP) and DCBS Program, and if a child is placed in a private child- Approximately 650 people registered for the foster homes. The other 26 percent are in private child caring or child-placing agency a level is assigned. conference from across the Commonwealth. The caring (PCC) residential facilities, with a relative or The level is reviewed every 6 months unless there is a conference is the state’s only multidisciplinary child fictive kin placement or placed in detentions centers, need to review it sooner if needed. Staff uses a DPP- abuse prevention conference. psychiatric hospitals, or an in independent living or 886A, Application for Referral and Needs Assessment Jaime Pittenger, MD, FAAP, Pediatric Hospitalist, education setting. Of the children in PCP therapeutic for the initial assessment and screen to see if the Board President, Prevent Child Abuse Kentucky, foster care placement, 81 percent are Levels 3 and 4. Child and Adolescent Needs and Strengths (CANS) Program Director, Pediatrics, Associate Clinical There are 797 children in private child care and 3,029 Comprehensive Assessment completed by the private Professor, UK HealthCare, Department of Pediatrics, children in DCBS foster homes who do not have a child-caring agency or community mental health and Kevin Payton, Immediate Past President, Prevent level. Approximately 57 percent of children in private center. There is a face-to-face screening. It is very Child Abuse Kentucky, Top Shelf Lobby, were there child care residential facilities are a level 5. rare for a child to be placed in a detention center for for questions. Eric T. Clark, Commissioner, Department for a short period of time until another placement can be Executive Branch Contracting: Foster and Community Based Services, Cabinet for Health and found. It is harder to find a placement for a child with Adoption Services Family Services, stated that House Bill 1 enacted in the behavior issues. Senator Westerfield asked that the Elizabeth Caywood, Deputy Commissioner, 2018 Regular Session: (1) amended KRS 199.641 to department send the committee the number of times Department for Community Based Services, Cabinet facilitate provider participation in the state Medicaid a child is placed in a detention center and the average for Health and Family Services, stated that a child- program and solicitation of proposals to improve or length of stay. caring facility is defined in KRS 199.011(5) as any expand alternative services to help leverage federal In response to questions by Senator Raque institution or group home, including institutions and

18 2018 Interim LEGISLATIVE RECORD Adams, Ms. Dennis stated that the department Adoption Services that has strict standards for hiring practices. KVC struggles to find appropriate placements for some Michelle M. Sanborn, MSW, President, hires social workers, family and marriage therapists, children that will meet the child’s needs because of Children’s Alliance, stated that since 2014, the number nurse practitioners, psychiatrists, psychologists, limited capacities. Commissioner Clark stated that of children in OOHC has increased by 22 percent. On and licensed professional counselors. She would the study groups meetings are open to anyone who September 2, 2018, there were 9,654 child in OOHC like to hire more people with these degrees, but wants to attend if the room is able to accommodate compared to 6,654 in May 2004. There are currently unfortunately, there is a shortage of individuals who everyone. more children in PCC foster homes than DCBS foster are interested in obtaining one of these degrees. There In response to questions by Representative homes. In 2018, private providers cared for over 50 needs to be a better recruitment for these degrees Jenkins, Deputy Commissioner Caywood stated percent of the children in OOHC. Partnering and before having criteria that mandates someone have that the Title IV-E funding will be used for foster contracting for OOHC services by private providers one of these degrees before working for the state. care maintenance and adoption subsidy, but the helps improve outcomes for children. In response to questions by Representative Family First Prevention Services Act adds additional The federal Family First Prevention Services Act Miles, Ms. Sanborn stated that the increase in children flexibility on how the Title IV-E funding can be aims to prevent children from entering foster care by in OOHC has increased since 2014 due mainly to used. Commissioner Clark stated that the Kentucky allowing federal reimbursement for mental health substance abuse. Many states are experiencing the Sobriety Treatment and Recovery Team (START) services, substance use treatment, and in-home same OOHC increases. program addresses the substance abuse disorder in parenting skill training. House Bill 1 is a comprehensive In response to questions by Representative homes. Ms. Dennis stated that the START program plan to strengthen supports for children impacted by Hatton, Ms. Sanborn stated that the cabinet releases is in Jefferson County, Boyd County, Northern abuse and neglect, increases supports to keep families a monthly Foster Care Fact Sheet that lists foster Kentucky, Daviess County, and Fayette County. The together safely, and addresses neonatal substance care placements. Representative Hatton stated that START program works with families with substance exposure to ensure women seek and receive substance different regions have different statistics and access to abuse issues that are identified during the initial use treatment. services. Ms. Croney stated that telehealth will allow investigative phase. The program partners with Elizabeth Croney, Executive Vice President of people to get more services into regions that do not community mental health centers (CMHCs) to get Clinical Advancement, KVC Health Systems, stated have access to services. Combining FPP and diversion quick access to treatment. The program includes that the Impact Plus program helped children by eliminates a lot of cost by not have duplicative family mentors who have past experience with paying for services while allowing them to stay in requirements like two separate supervisors. The goal the child welfare system and substance abuse. The their homes. A private agency nor a public agency can is to keep a child from being removed from the home. program is available to families with children five do a great job unless there is a team effort. Kentucky Adjournment years of age and younger. Commissioner Clark stated has 16 family preservation programs and diversion There being no further business, the meeting that the goal is for Kentucky’s START program to programs that are an effective model for keeping was adjourned at 3:01p.m. become the national model. On July 1, 2017, Kentucky families together. There was public and private implemented the Kentucky Strengthening Ties collaboration to design the KSTEP program. INTERIM JOINT COMMITTEE and Empowering Parents (KSTEP), a child welfare In response to a question by Senator Raque waiver demonstration that is an evidence informed Adams, Ms. Croney stated that it was pay for ON HEALTH AND WELFARE AND intervention that will stabilize and support families by performance for a number of years but switched FAMILY SERVICES providing intensive, strengths based, in-home services back to contract based with performance measures Minutes of the Fourth Meeting that will intervene with appropriate evidence-based included. of the 2018 Interim practices (EBPs). KSTEP includes case coordination The 2018 statewide Family Preservation September 19, 2018 services, partnership with the family, and rapid access statistics show that 96.8 percent of children at risk of Call to Order and Roll Call and provision of clinical services including substance removal were able to remain at home at the end of the The fourth meeting of the Interim Joint use treatment. Both programs have early intervention case. KVC has eight contracts for family preservation Committee on Health and Welfare and Family with families to help prevent children from entering and diversion. More families will be served because Services was held on Wednesday, September 19, 2018, the foster care system. of the Family First Prevention and Services Act. The at 10:00 a.m., in Room 129 of the Capitol Annex. In response to questions by Representative 2008 Comprehensive Family Preservation Program Representative Addia Wuchner, Co-Chair, called Bechler, Deputy Commissioner Caywood stated evaluation showed that FPP services are provided to the meeting to order at 10:08 a.m., and the secretary that the definition for the levels of care are found in families with high risks, young children, and more called the roll. 922 KAR 1:360. Commissioner Clark stated that the chronic involvement with child protective services Present were: cabinet does not have a contract with Casey Family (CPS). Family Preservation program services are Members: Representative Addia Wuchner, Co- Programs or Chapin Hall. Deputy Commissioner successful in reducing entry to OOHC, speeding Chair; Senators Ralph Alvarado, Tom Buford, Danny Caywood stated that as of August 10, 2018, there were reunification for children, and promoting family Carroll, Julian M. Carroll, David P. Givens, Denise 1,000 qualified relative or fictive kin caregivers. There wellbeing. Each dollar spent on FPP saved $2.85 in Harper Angel, Stephen Meredith, Reginald Thomas, were 4,711 payments issued to relative and fictive kin cost avoidance. and Max Wise; Representatives Danny Bentley, caregivers for a total of $4.7 million. These caregivers There is a strong network of providers in Larry Brown, George Brown Jr, Daniel Elliott, Joni are eligible for the foster care per diem as long as they Kentucky that can help alleviate the stress on the child L. Jenkins, Mary Lou Marzian, Chad McCoy, Russ care for a child that is either in the cabinet’s custody welfare system and the capacity issues the cabinet is A. Meyer, Kimberly Poore Moser, Melinda Gibbons or a child whose custody is transferred from the currently experiencing. Private providers are working Prunty, Steve Riley, and Russell Webber. cabinet to the relative that has been approved by the with the cabinet to look at performance-based Guest Legislators: Representative John Blanton. cabinet to take the placement and has a temporary or contracting and increased accountability for private Guests: Brandon J. Smith, Executive Director, shared custody with the cabinet. The vast majority of providers. Public-private partnerships are the key to a Office of Legislative and Regulatory Affairs, Cabinet for individuals that have contacted the cabinet’s hotline successful child welfare transformation. Health and Family Services; Honorable Paul Sherlock, has been denied because the cabinet never had In response to a question by Senator Raque Retired Jefferson County Family Court Judge; Jaime custody of the child. The cabinet’s understanding of Adams, Ms. Sanborn stated that she would provide Pittenger, MD, FAAP, Program Director, Pediatrics, the DO vs Glisson ruling is that the cabinet has to the recruitment numbers of DCBS foster homes and Associate Clinical Professor, UK HealthCare, have had custody of the child at some point during the number of PCC foster homes to the committee. Department of Pediatrics; Scott Lengle, Lieutenant, the time of the child’s removal in order for a relative In response to questions by Senator Thomas, Kentucky State Police; Steve Shannon, Executive to receive payment. Ms. Croney stated that KVC is regulated by the state Director, Kentucky Association of Regional Mental Private Sector Contracting: Foster and and reimbursed through the Medicaid program Health-Mental Retardation Programs; Elizabeth

THE KENTUCKY GENERAL ASSEMBLY 19 Caywood, Deputy Commissioner, Department for development districts (ADDs) or comparing neuroblastoma and brain tumors. Community Based Services, Cabinet for Health and Appalachian to non-Appalachian Kentucky. The Senator Alvarado stated that patients who Family Services; Jill Seyfred, Executive Director, and rates for brain and CNS tumors is higher in the use CAR T therapy have an 83 percent complete Joel Griffith, Director of Programs and Prevention Appalachian area than in the United States. From resolution from their cancers. Services, Prevent Child Abuse Kentucky; Jamie Ennis 2005 to 2014, Kentucky was ranked 22nd nationally External Child Fatality and Near Fatality Bloyd, MPA, President, Cancer Pediatric Research for cancer rates and is ranked 4th in brain and CNS Review Panel Trust Fund; Eric B. Durbin, DrPH, MS, Director of tumors. The data for 2009 to 2013 show that survival Representative Wuchner stated that in 2012, Cancer Informatics, Kentucky Cancer Registry; John rates for children with leukemia and brain and CNS the Governor issued an executive order to establish D’Orazio, MD, PhD, Pediatric Hematology/Oncology, tumors was significantly lower. The data also shows the External Child Fatality and Near Fatality Review University of Kentucky, Kentucky Children’s Hospital; that brain and CNS tumors were the leading cause of Panel to help to determine why children were dying Ashok Raj, MD, Chief of Pediatric Hematology/ death among all children in the United States. while in the care of the Commonwealth or in their Oncology, Bone Marrow Transplant Unit, University John D’Orazio, MD, PhD, Pediatric Hematology/ own home. The panel was codified in statute in 2013. of Louisville Norton Children’s Hospital; Tommy Oncology, University of Kentucky, Kentucky Jaime Pittenger, MD, FAAP, Pediatric Howard, parent; Steve Davis, Inspector General, and Children’s Hospital, stated that data from the Kentucky Hospitalist, Program Director, Pediatrics, Associate Stephanie Brammer-Barnes, Regulation Coordinator, Cancer Registry show that cancer is the major cause Clinical Professor, UK HealthCare, Department of Office of Inspector General, Cabinet for Health and of death from disease in young people. Approximately Pediatrics, stated that the panel consists of physicians, Family Services, Beth Gamble, PhD, MSN, RN, 2,500 children and teenagers in the United States die Department for Community Based Services (DCBS) CNE, Education Consultant, Kentucky Board of from cancer annually. Over 220 Kentucky children staff, Department for Public Health (DPH), medical Nursing; Adam Meier, Secretary, Cabinet for Health are diagnosed with cancer each year. From 2011 to examiners, court appointed special advocates and Family Services; Dawn Radcliff, RN, graduate 2015, over 1,091 Kentucky children were diagnosed (CASAs), and the Kentucky State Police. The panel’s student; Phyllis Sosa, Jennifer Dudinskie, and Janet with cancer. Children are diagnosed with leukemia, goal was to look at the issue in a multifaceted approach Hall, Department for Aging and Independent Living, brain tumors, lymphomas, neuroblastoma, muscle, to improve the welfare for children. The panel reviews Cabinet for Health and Family Services; Janet Luttrell, kidney, bone, eye, liver, and other types of cancer. One cases referred from the DCBS and DPH. If cases Department for Public Health, Cabinet for Health of the challenges of children that have leukemia is to are referred from DCBS, the panel has access to the and Family Services; Amy Womack, Tami Delimpo, understand who will relapse with or after completion department’s data collection system, SharePoint. If Elizabeth and David Turner; Thalia Peters, Kentucky of therapy. The Pediatric Cancer Research Trust Fund the cases are referred to the panel from DPH, staff Association of Sexual Assault Programs; Carol projects awarded to the University of Kentucky are from the Justice and Public Safety Cabinet uploads the Steckel, Commissioner, David Gray, Director for to develop circulating tumor DNA as a prognostic information for the panel. The panel gets information Provider Relations, and Stephanie Bates, Department biomarker in acute lymphoblastic leukemia (ALL), from DCBS reports, legal reports, medical records, for Medicaid Services, Cabinet for Health and Family collect blood and spinal fluid from children with ALL and any information pertaining to a case. The cases are Services; and Terri Thomas, Harbor House. before and after chemotherapy, to identify factors divided between the panel’s analysts and groups for LRC Staff: DeeAnn Wenk, Ben Payne, Dana associated with high incidence of pediatric brain panel discussion. The analyst summarizes each case Simmons, Gina Rigsby, and Becky Lancaster. tumors in Kentucky, and to develop mithramycin and creates a timeline. Each group reviews a certain Approval of Minutes derivatives as new drugs for the treatment of Ewing amount of cases and reports back to the full panel for A motion to approve the minutes of the August sarcoma, cancer of the bone with a now survival rate in-depth, comprehensive discussions of each case to 15, 2018 minutes was made by Senator Buford, because of the lack of new therapies. The University of see how Kentucky can do better. Data is collected on seconded by Senator Alvarado, and approved by voice Kentucky has partnered with the Children’s Hospital family characteristics to see who the most vulnerable vote. of Philadelphia to help leverage $1.25 million for the children are and then focus on preventative measures. Kentucky Pediatric Cancer Research Trust DNA sequencing. The panel will make a determination in the case on Fund Ashok Raj, MD, Chief of Pediatric Hematology/ what caused the fatality or near fatality of the child. Jamie Ennis Bloyd, MPA, President, Kentucky Oncology, Bone Marrow Transplant Unit, University Child abuse happens in every county in Pediatric Cancer Research Trust Fund, thanked the of Louisville Norton Children’s Hospital, stated Kentucky with children under the age of four years General Assembly for the $5 million appropriation that the most common childhood cancer in the being the most vulnerable. In 2017, the panel findings to the trust fund in the 2018-2020 biennial budget. United States is acute lymphoblastic leukemia with include: 85 percent of the cases reviewed had a prior Scientific peer reviewers have looked at proposals a 90 percent survival rate. More than two-thirds history with child protective services, 75 percent of and decided how the appropriation would be spent. of children have more than one organ system all cases are potentially preventable, 41 percent of September is Childhood Cancer Month. A private affected. On March 29, 2018, the Food and Drug all cases of abusive head trauma (AHT) were found donor has given a $6 million donation for other Administration (FDA) granted accelerated approval to be in the care of a substitute caregiver at the time projects to run concurrently with the projects at to blinatumomab (Blincyto, Amgen Inc.) for the of the incident, 39 percent of the fatalities reviewed the University of Kentucky and the University of treatment of adult and pediatric patients with B-cell wee cases of sudden unexplained death in infancy Louisville. precursor acute lymphoblastic leukemia (ALL) in (SUDI), and 65 percent of the SUDI cases involved Eric B. Durbin, DrPH, MS, Director of Cancer first or second complete remission with minimal an impaired caregiver who shared a sleep surface Informatics, Kentucky Cancer Registry, stated that residual disease (MRD) greater than or equal to 0.1%. with their baby and the baby died from suffocation or Kentucky Cancer Registry data from 2007 to 2016 A chimeric antigen receptor (CAR) engineered T-cell asphyxiation. Focus areas of prevention of the panel showed that over 2,000 children have been diagnosed is a patient’s T-cell (a component of the immune include safe sleep practice, plan of safe care at birth, with cancer in Kentucky. Cancer occurs 54 percent in system) that has been genetically modified to express drug testing caregivers at the time of an unexpected males and 46 percent in females. The most frequently a protein on its surface with the capability to bind to a death, additional law enforcement training regarding occurring types of cancer are leukemia, brain and target protein on another cell. Upon binding the target child death scenes, education and standardization of central nervous system (CNS), lymphomas, and other protein, the CAR protein will send a signal across the reporting child deaths to the appropriate authorities epithelial neoplasms. Incidences of cancer among cell membrane to the interior of the T-cell to set in by coroners, implementing hospital-based prevention males and females has risen approximately 18.6 motion mechanisms to selectively kill the targeted education to the parents of all newborns, and percent. The increase in cases has risen in Kentucky cancer cell. Compound CAR T cells simultaneously encourage reporting by family members, neighbors, and throughout the United States. Childhood cancer target two leukemia markers and will eliminate highly and professionals. Bruising in babies is not normal. occurs more frequently in Eastern Appalachian resistant leukemia disease. Supercharged CAR T cells Honorable Paul Sherlock, Retired Chief Judge of regions of Kentucky, however there are no statistically have a decoy protein that will prevent tumor cells Jefferson County Family Courts, stated that in 2009, significant differences across Kentucky’s 15 area from escaping elimination and will kill childhood Kentucky lead the nation in child-related deaths. The

20 2018 Interim LEGISLATIVE RECORD panel tries to identify and fix problems within the difference in the life or death of a child. Are Worth It!® statewide multidisciplinary conference medical profession, the cabinet, the courts, and law Senator Thomas stated that the HANDS that focuses on child abuse and neglect prevention enforcement that hinder the protection of Kentucky’s program is very successful and should be available and intervention. children. The panel makes recommendations for across Kentucky. PCAK has served as the sole source provider system and process improvements to help prevent In response to a question by Representative of parent education, self-help, and support services child fatalities and near fatalities that are due to Bentley, Dr. Pittenger stated that the Kentucky offered throughout the state for more than 20 years. abuse and neglect. An annual report is sent to the All Schedule Prescription Electronic Reporting There is at least one provider in ever DCBS region. From Governor, the Cabinet for Health and Family Services (KASPER) system is used in a hospital before 2014 to 2016, funded providers served approximately (CHFS), the Chief Justice of the Supreme Court, prescribing a patient medications. She was unsure 41,000 participants. Referrals from DCBS account the Attorney General, and the Legislative Research if a parent’s medical record that shows a drug abuse for more than 60 percent of the referrals to parenting Commission (LRC) to be distributed to the Interim problem is linked to a child’s record. education classes across the state. Referrals are made Joint Committees on Health and Welfare and Family Panel members Scott Lengle, Lieutenant, to assist families in the prevention of child abuse and Services and Judiciary. Kentucky State Police, and Steve Shannon, Executive neglect or because of safety concerns identified by the In response to questions by Senator Danny Director, Kentucky Association of Regional Mental various referral sources. These families may be at risk Carroll, Dr. Pittenger stated that the adolescent Health-Mental Retardation Programs were available of having children removed from the home or have population is a difficult population to take care of, to answer questions. already had their children placed outside the home. and if they think they are going to be reported for Consideration of Referred Administrative Most parents want to be able to take care of their child drug use, the likelihood of that person telling anyone Regulations even though some have problems. lessens. Judge Sherlock stated that few of the cases The following administrative regulations were All providers are required to screen participants of fatalities and near fatalities reviewed by the panel on the agenda for consideration: 201 KAR 2:015 – for substance abuse issues. In addition to teaching were ever heard in court. Jefferson County will establishes requirements for the continuing pharmacy the nurturing parenting curriculum, providers make begin a Family Drug Court in October. Parents who education of registered pharmacists and requires referrals to outside agencies to meet the needs of suffer from drug addiction need quick and efficient all registered pharmacists holding a license issued their clients. Service providers are trained to assure intervention and affordable treatment. by the board to participate in continuing pharmacy services are delivered in a respectful and supportive In response to questions by Representative education as a means of renewal of their licenses; 910 manner. The Adult-Adolescent Parenting Inventory Gibbons Prunty, Elizabeth Caywood, Deputy KAR 1:090 – establishes the Personal Care Attendant (AAPI) measures a parent’s skill level and strengths. Commissioner, Department for Community Based Program; 910 KAR 2:030 – establishes accounting The AAPI measures expectations, empathy, use Services, Cabinet for Health and Family Services, stated provisions for adult guardianship; 910 KAR 2:052 – of corporal punishment, parent-child roles, and that she would send the committee the department’s repeals 910 KAR 2:050, which unnecessarily restricts supportiveness of a child’s independence associated policy and practice guidelines for acceptance criteria the cabinet from collecting fees for services pursuant with child abuse and neglect. PCAK currently offers for investigation of a report of abuse or neglect. The to KRS 387.760(2); 921 KAR 1:380 – specifies the 17 different trainings that can be altered to meet the department has conducted extensive work in regard process by which an individual may apply for child needs of a specific agency. to safe plans of care for children born with neonatal support services, the scope of services available, and In 2010, the General Assembly enacted HB 285 exposure to substances. There has to be a risk for the the process for an intergovernmental case; and 921 that addressed prevention of pediatric abusive head child before the department accepts a report. If the KAR 3:030 – establishes the application and the trauma (PAHT). Since the legislation was enacted, mother is compliant to treatment, a plan of safe care voter registration processes used by the cabinet in PACK has trained over 4,000 social workers, child is implemented. the administration of the Supplemental Nutrition care staff, and other professionals in face-to-face In response to questions by Representative Assistance Program (SNAP). A motion to accept trainings. Other professionals have received on-line Moser, Dr. Pittenger stated that availability of the administrative regulations was made by Senator training. PCAK’s goal and the intent of HB 285 is services in the Kentucky Sobriety Treatment and Buford, seconded by Representative Elliott, and to help professionals recognize the signs of PAHT, Recovery Team (START) or Health Access Nurturing accepted by voice vote. to help parents understand the dangers of shaking a Development Services (HANDS) programs depends Introduction of New Cabinet for Health and child, and given parents alternatives to lashing out in on where someone lives in Kentucky. The more Family Services Staff response to an inconsolable crying child. PCAK has difficult and challenging something is for new Brandon J. Smith, Executive Director, Office of partnered with the Kentucky Hospital Association, parents, the less likely they are to take advantage of Legislative and Regulatory Affairs, Cabinet for Health Norton Children’s Hospital Prevention and Wellness the available resources. Judge Sherlock stated that and Family Services, introduced Carol Steckel the program, and others to assure that resources and START is an intensive, hands-on and accountable new Commissioner of the Department for Medicaid information is provided consistently to the parents of program. All research shows that parents who can Services, and David Gray, the new Director of Provider newborns at every Kentucky hospital. keep a connection with their child while they are in Relations, Department for Medicaid Services. In response to a question by Representative drug treatment are more likely to be successful. Prevent Child Abuse Kentucky George Brown, Mr. Griffith stated that parenting In response to questions by Senator Givens, Jill Seyfred, Executive Director, and Joel Griffith, discipline styles range from permissive to overly harsh. Dr. Pittenger stated that one of the most important Director of Programs and Prevention Services, PCAK teaches parents that not all kids respond the things that new parents need to hear at the hospital Prevent Child Abuse Kentucky (PCAK), stated same to the same type of discipline. Children thrive is about safe sleep practice. The panel has analytics that organization’s vision is to engage partners to in structured environments with expectations and on household characteristics and a history of criminal utilize PCAK to end child maltreatment. PCAK’s discipline. The goal is to teach parents the difference activity, substance abuse, domestic violence, or mental mission is to prevent the abuse and neglect of between discipline and abuse. Representative Brown illness. Most of the cases reviewed by the panel have Kentucky’s children. According to the 2018 annual stated that children need to be taught respect. one or more high risk traits. Judge Sherlock stated report by the United States Department of Health In response to a question by Representative that everyone needs to be aware that bruising in non- and Human Services, Kentucky was ranked third Jenkins, Director Seyfred stated that PCAK was aware mobile infants is not normal. Do not leave a child in the nation per capita rate of child maltreatment. of the baby box program that some states and some with a non-biologically related person if that person In 2017, 23,827 children were confirmed victims of other countries send home with a new mom that has a history of violence or domestic violence. Senator child maltreatment with substance abuse and family gives a safe sleeping alternative for the newborn, but Givens challenged everyone to start a conversation violence the top risk factors. The average lifetime cost did not know if Kentucky was close to implementing with a pregnant woman or new parents about safe for each confirmed victim in Kentucky is $210,012. this program. Representative Jenkins said that parents sleep practices and quality caregivers and offer to PCAK and its partners have services available in all are required to have a car seat to take their newborns help them find available resources that could make a 120 counties in Kentucky. PCAK hosts an annual Kids home from the hospital, and said that a safe place to

THE KENTUCKY GENERAL ASSEMBLY 21 sleep should be required for every child. and dually-certified SNF/NF for either the number INTERIM JOINT COMMITTEE ON Decubitus Ulcers of days or for each instance a facility is not in Representative John Blanton, House District substantial compliance with one or more Medicare EDUCATION Minutes of the 2nd Meeting 92, stated that in the United States, approximately 2.5 and Medicaid participation requirements for long- of the 2018 Interim million patients a year will be diagnosed with pressure term care facilities. The CMP funds will also fund an July 9, 2018 ulcers with almost 60,000 deaths and an estimated incentive program to help attract and retain staff in Call to Order and Roll Call cost of almost $11 billion. Anyone across the medical healthcare facilities. The OIG has partnered with the The 2nd meeting of the Interim Joint Committee spectrum is susceptible to pressure sores with some New Jersey Hospital Association and will use CMP on Education was held on Monday, July 9, 2018, at being fatal. It is vital to bring awareness to the issue funds to distribute a pocket guide on pressure ulcers 12:00 p.m. CDT, at Trigg County High School. and as a legislative body to explore every avenue to all healthcare providers who treat clients at risk of Representative John Carney, Chair, called the meeting available to find ways to prevent as many individuals developing a pressure ulcer and every regional office. to order, and the secretary called the roll. as possible from developing bedsores. Surveyors will be trained on the information provided Present were: Tommy Howard, stated that his 32-year old in the pocket guide. Members: Senator Max Wise, Co-Chair; paraplegic daughter, Bridgette, was admitted to the The OIG is collecting data on all deficiencies Representative John Carney, Co-Chair; Senators hospital for a pancreatic attack and died nine days to measure the quality of a surveyor. A telecommute Danny Carroll, Jimmy Higdon, Alice Forgy Kerr, later on October 12, 2013 from complications of model has been implemented, because the surveyors Stephen Meredith, Reginald Thomas; Representatives three bedsores, one stage 4. Having a bedsore is a are conducting surveys in the field a large portion of Mark Hart, Phil Moffett, Kimberly Poore Moser, horrible way for someone to die. If a facility knows it the time. Melinda Gibbons Prunty, Jody Richards, Steve Riley, can be charged with a serious offense, it would follow Beth Gamble, PhD, MSN, RN, CNE, Education James Tipton, and Russell Webber. protocol closer. The hospital where his daughter was Consultant, Kentucky Board of Nursing, stated that Guests: Senator Stan Humphries; Christina staying was negligent with her care. When a patient any force of pressure to the skin compromises blood Weeter, Director, Division of Student Success, cannot turn themselves, it only takes a few minutes flow to the area, cuts off oxygen and nutrients causing Kentucky Department of Education. for a bedsore to develop. His daughter Bridgette was cells to die. The risk factors of developing a bedsore LRC Staff: Jo Carole Ellis, Yvette Perry, and paralyzed from her waist down and taken care of by are immobility or limited movement, numbness, Maurya Allen. her mother and never developed a bedsore until she elderly, children and premature babies, previously Welcome and Opening Remarks – Trigg went into the hospital. Stiffer laws and penalties are had pressure ulcers, medical conditions, cognitive County High School needed to help people who cannot help themselves. deficiency, and poor nutrition. Pressure ulcers can Travis Hamby, Superintendent, Trigg County Steve Davis, Inspector General, Office of develop anywhere, but tend to develop more in areas Schools, welcomed members to the Trigg County Inspector General, Cabinet for Health and Family that have very thin skin that is not able to provide High School. Additionally, Chairman Carney Services, stated that upon review of Bridgette’s case, a cushion. A patient’s clinical condition needs to be extended his thanks to the school staff for their the OIG’s surveyor found wound care and infection evaluated and the more risk factors a patient has, assistance in this meeting as well as to Senator control deficiencies against the hospital. Surveyors the more prone a patient is to develop a pressure Humphries, Representative Imes, and Representative spend three to four days on the road conducting ulcer. An evidence-based prevention program needs Thomas. Senator Humphries thanked the committee inspections. They are not advocates for facilities to be implemented. A patient needs to be evaluated for coming to visit in his district and Senator Higdon or clients of facilities, and try to be fair and ethical. when entering the facility, followed by thorough, introduced a special guest, his grandson, David. When a complaint is investigated, the surveyor looks comprehensive daily assessments of the skin. Turning Sources of Strength Program at what type of protocol, and policies and procedures and repositioning a patient is critical as are the use Shannon Burcham, Principal, Trigg County of the facility are in place, and apply federal and state of pressure redistribution surface devices such as High School; Laura Shelton, Youth Service Center licensure laws to the case. Healthcare is the most alternating mattresses, gels, and foams. An avoidable Director, Trigg County High School; and Cathy heavily regulated industry in the United States. State pressure ulcer is when a facility does not follow Prothro, Suicide Prevention Enhancement Site licensure laws regulate the facility standards. The protocols. Not every pressure ulcer is unavoidable Coordinator, Division of Behavioral Health, were cabinet has a contract with the Centers for Medicare because of some acute illnesses that redistribute all present to speak about the Sources of Strength and Medicaid Services (CMS) that designates the OIG the blood flow to major organs of the body for Program being implemented at Trigg County High as the state agency for conditions of participation. survival. The end of life process makes a patient more School. Additionally, Cade Bleidt, Adrionna Phillips, CMS has specific references in regulation for care susceptible to pressure ulcers because of physiological Garret Knight, and Hope Howard, student leaders in and prevention of pressure ulcers. Avoidable pressure changes in the body. the program, were also present to give their insights ulcers should not happen in a long-term care facility. Stephanie Brammer-Barnes, Regulation into the positive effect the program is having on With the state licensure process, the OIG has the ability Coordinator, Office of Inspector General, Cabinet students. to issue a Type A, imminent danger or substantial for Health and Family Services, was available for Mr. Burcham began by explaining that there risk of death or serious mental or physical harm, or questions. had been a student suicide a few years prior which Type B, direct or immediate relationship that does not In response to a question by Senator Meredith, precipitated a desire to enhance relationships with present a direct harm, citations. An administrative Inspector General Davis stated that he would talk to the students in an effort to improve the negative regulation was filed by the cabinet in September 2018 the commissioner for the Department for Medicaid atmosphere at the school. The staff looked at several that recognizes that if a facility receives a pressure Services to provide an answer to the committee as to programs and models before choosing the nationally ulcer violation, either under state or federal law, it is why the state cannot increase the reimbursement rate recognized program Sources of Strength. They began now designated as a specific act that would warrant to nursing homes by increasing the provider tax that with a group of 60 students, representing a tenth issuance of a Type A or Type B violation depending the nursing home industry is willing to do. of the student population and drawn from diverse on how it is classified. CMS recently added language There being no further business, the meeting backgrounds, to serve as student leaders. In addition, to the existing pressure ulcer laws that a facility has an was adjourned at 12:35 p.m. several surveys were performed to get input from obligation not just to prevent and treat pressure ulcers students, teachers, and other stakeholder populations. but to apply professional standards. He said this was a proactive approach to reaching The OIG has developed a quality program emotional and social well-being for all the students that exists separate and apart from the enforcement and that the program supports all levels of learning. program funded by the $32 million federal civil There were additional adult partners both within money penalty (CMP) imposed against skilled the school and the community that provide ongoing nursing facilities (SNFs), nursing facilities (NFs), support to the program. One of these is Ms. Prothro

22 2018 Interim LEGISLATIVE RECORD of the Division of Behavioral Health. activities for next school year, including a freshman it helps for the mentors to be individuals who can Ms. Prothro said that the program was started mentoring program for incoming freshmen planned interact with students on a daily basis. In order to in Trigg County High School in March, and there for the first week of school where upper class mentors reach ‘wall flowers’ and others who may be on the are 45 other schools across the state participating will assist freshmen with the sometimes challenging fringes, the program strongly encourages the peer in the Sources of Strength Program. In her opinion, transition to high school. leaders to reach out to everyone and get outside of however, the students at Trigg County have been Chairman Carney said the work the school and their comfort zone. Also, the group of peer leaders is some of the most passionate about the program, students are doing is very encouraging and truly so large and diverse it represents a majority of the pre- and she recommends them as a model to other illustrates the power of positive thinking to improve existing social groups in the school, so everyone can schools looking to adopt Sources of Strength. It is a situations. feel represented and involved. very adaptable program and allows for the school to In response to a question from Senator Thomas, Responding to Representative Moser, Ms. customize it to fit their needs and abilities, as well as Mr. Knight said that creating an atmosphere of Shelton said that there are two mental health providers for the students to take ownership of the program. positivity helps to prevent all kinds of violence, who provide in-house mental health and substance Funding support for implementation was provided including bullying and fighting. Ms. Phillips said abuse counseling services which includes both through a youth suicide prevention grant which has that whenever there is a school shooting, there was individual and group sessions for students in need of been used to establish the program in schools across a person holding the gun. In her mind, this program substance abuse counseling and treatment. Inclusion Kentucky. The cost for the program implementation helps prevent individuals from being motivated to of the families of students is left at the discretion of is $5,000 per school. To receive funding support from bring guns at all. Ms. Howard added that the program the therapists. the Division of Behavioral Health, schools perform an strongly encourages peers to identify those that In response to a final question from Senator online assessment every year to review policies and may be struggling and to inform teachers or other Meredith, the students provided many answers as to procedures regarding suicide prevention. This assures trusted adults so the struggling students can get the why they participate in this program when there are that schools and staff remain current in training for support they need before things get out of hand. In so many extracurricular activities to choose from. Ms. early referral and treatment of youth at risk of suicide. an environment of positivity, negative individuals Howard said she really enjoys the program, it is fun, In her words, Sources of Strength is a movement and behaviors tend to stand out more. Mr. Bleidt and helps build her own strengths as well as helping more than a program because it works by changing concluded saying that school shootings do not others build theirs. Ms. Phillips said that she felt a the mindset of students through improving their develop overnight, there are generally always warning great deal of pride in being selected by her peers and attitudes and their lives with the help of positive adult signs. By starting with young students and planting wants to live up to that good reputation. Mr. Knight supporters and peer leaders. Strategic messages are positivity early, it is possible to root out bad thoughts answered that he had held a close friendship with the used to create positive cultural change and a shared and begin needed discussions among troubled student who committed suicide as well as another sense of community in the school environment. students and supportive adults. who had attempted suicide. He did not want anyone This kind of approach is referred to as ‘upstream Responding to questions from Senator Carroll, else to have to endure that kind of loss. Mr. Bleidt said prevention’ because it seeks to prevent youth suicides Mr. Burcham said that there is obviously a loss of that he especially liked seeing the positive change that by addressing negativity before it reaches a breaking peer trust when a student reports another student a small group could have in just a few hours a week. point and to steer students who need enhanced to an adult, but they do have a system of anonymous Ensuring the Psychological Safety of Our levels of support to services as soon as a problem is reporting established so students can bring issues Students identified. Treatment and intervention methods will directly to the guidance counselor or other trusted Vestena Robbins, PhD., Executive Advisor, continue to be valuable and essential, but this switches adult. Also, they have strongly encouraged the ‘if you Kentucky Department for Behavioral Health, the approach from ‘putting out fires’ to preventing see something, say something’ mentality and that Developmental and Intellectual Disabilities; and them from ever starting. Through the intentional even though a friend may be upset for a short while, Kathryn Tillett, MSSW, CSW, Project Director, messaging and networking of students, positivity and they will not likely stay mad for long. Mr. Knight Kentucky AWARE, Kentucky Department of support ‘spread like a virus’ causing a net effect of added that students are much more likely to be able Education next gave a presentation regarding the positive change. to tell if someone is just having a bad day as opposed various ways Kentucky is attempting to address the The students next defined the mission of Sources to having developed a problem. Mr. Bleidt added that psychological needs of students. Ms. Robbins began of Strength as encouraging hope, help, and strength. because the Sources of Strength peer leaders were by stressing that there is a sense of urgency to address They explained that this was achieved through focus picked by the student body, they feel the responsibility the psychological safety of students in recent years. on eight components: Family Support, Positive to communicate with adult mentors, but they also The key messages she wished to convey were that: Friends, Mentors, Healthy Activities, Generosity, feel like their peers have placed trust in them to only physical safety combined with psychological safety Spirituality, Medical Access, and Mental Health. They speak up when the situation warrants it. result in student safety, psychological safety requires illustrated each of these as a segment of a wheel and In response to a question from Senator Kerr, Ms. multi-tiered systems of support, and Kentucky further provided individual examples of how each Prothro said that the Sources of Strength program has already has several best practices in place that can be of them had worked on a segment. For example, so far only been implemented in middle and high taken to scale. Mr. Knight explained how the Connection Groups schools, but the model can certainly be taken to the Addressing the first key message, she reiterated formed at the school had been a source of mentoring elementary grades. The training provided from the that students need both the physical security of locked for him and others. Ms. Shelton said that they had program is only designed for middle and high schools doors as well as the psychological safety of peer and worked very hard to customize the wheel for Trigg so it would have to be significantly adapted for use adult support to be safe. It has been shown, as well as County Schools, going so far as to even include faces at the lower levels, but it has been implemented in discussed at previous legislative meetings, that one of of the students on the illustrative graphics that were schools of various sizes including alternative schools the key safety measures needed in schools is strong, distributed and displayed around the school. This as small as 35 students. The program can also be positive relationships. Students need to feel confident made it more personal to the students as they literally implemented by youth community groups such as and empowered to report concerns as well as have a could see themselves and their friends reflected in the church groups because it encourages mentoring of sense of belonging within their school communities. components. students by their peers, regardless of the setting. There is no single program, however, that can do it all. In concluding their presentation, the students Responding to questions from Representative Kentucky students also face significant adversity. went on to describe other areas where they had Gibbons Prunty, the panel said that the adult mentors Recent reports have shown that Kentucky students implemented and personalized the Sources of Strength range from teachers to staff, including maintenance have a higher than average amount of childhood program through the use of school activities, social workers, who were identified by the students as adversity so many students are experiencing media, art, presentations, events, and audio/visual their preferred trusted adults. There is no restriction significant traumas that they carry with them to messaging. They also briefly highlighted planned against community individuals being mentors, but school. Studies show that one in five youth from birth

THE KENTUCKY GENERAL ASSEMBLY 23 to age 18 years has a diagnosable mental disorder, of work or already complete. Additionally, the formed by the council to focus strictly on mental and meaning that in a classroom of 30 students, six of them AWARE initiatives will not be re-funded by the U.S. emotional health meets monthly and will continue to has a diagnosable mental health disorder. However, Department of Health and Human Services when the report on what is being implemented statewide. that is not to say that they have been diagnosed or grant period expires in September of 2019. Senator Wise asked when information regarding that they are receiving any treatment to help address Youth Mental Health First Aid was defined as the students who may be a danger to themselves or their needs. The adversities and traumas impacting initial help offered to a person developing a mental others is shared with law enforcement. Dr. Robbins students are also significant impacts on their school health or substance abuse problem, or experiencing a answered that it varies based on school and the degree performance and achievement. Approximately half mental health crisis. This treatment is provided until of the threat. In schools with a school resource officer of all lifetime mental health disorders start by the appropriate treatment and support are arranged or who does not follow the relationship model, more mid-teens and the onset of all major mental illnesses until the crisis resolves. One of the primary aims of students get referred to law enforcement instead of happen as early as 7 to 11 years of age. Detection the Kentucky AWARE project has been to increase mental health services. of mental health needs at an early age is critical to the knowledge and skills of communities so that more Safe Schools Assessments ensuring not only student learning, but also school individuals are certified to provide this form of first Jonathan Wosoba, Director of Student Services, safety and positive community engagement as adults. aid. At the end of March 2018, over 3,000 individuals Oldham County Schools, and Jill Canuel, Mental Ms. Robbins then presented some examples of have been certified in mental health first aid and Health Consultant, Oldham County Schools excellence in action in Kentucky. There are several over 8,000 youth were connected to mental health presented their model for school threat assessments to strategies already being implemented which provide supports by a first aid certified individual. Specifically the committee. Their presentation covered Personnel, benefit and support to all students. These include within the three local lab districts, 214 licensed Protocols, Process, and Forms used in performing Sources of Strength, Olweus bully prevention, Ripple mental health professionals were providing school- threat assessments in Oldham County Schools. They Effects, Restorative Practices, Youth Mental Health based mental health and substance abuse services. feel that several individuals are necessary to approach First Aid (to be discussed in depth later), and many This helped contribute to a formal process for student any potential threats that come into the building. A other relationship building programs and strategies. access to mental health and other supports. Threat Assessment Team comprised of at least two There are many that are also low to no cost, such as The process begins with a data-driven individuals, but often more, is assembled comprised greeting all students by name, increasing positive identification of student needs, with teacher/school of school administrators, guidance counselors, SROs, interactions versus negative ones, and taking staff identification of students who would benefit school psychologists, and/or teachers. The school advantage of mental health screening tools in the from additional supports, or from parent/family/self- receives threat information from the safe schools form of private, self-reported questionnaires that identification of a student needing support. The youth anonymous tip line via text message, email, or voice allow students to answer without fear of stigma or and their caregivers are then provided with a pathway message. Oldham County received approximately 58 ridicule. to either mental health services through Family tips last year in this way. They were all investigated by Targeted strategies available to help at-risk Resource and Youth Services Centers (FRYSCs) or the Threat Assessment Team and ranged from reports students include the Handle with Care program, to Positive Behavioral Interventions and Supports of bullying to reports of possible weapons being Check In/Check Out, and mentoring. Ms. Robbins (PBIS) intervention initiated by school staff and brought to school. Threat information is also gathered highlighted the Handle with Care program in which matched to student needs. Some students may even from students who report concerns, including social law enforcement give a ‘heads up’ to a school when a need both forms of support. Student data is reviewed media posts, to teachers or administrators. child has been identified at the scene of a traumatic at least monthly through the school PBIS team A threat assessment is started any time there event. Police are trained to identify children at which results in one of three situations. If adequate are reports or observations containing references to the scene, which school they attend, and send a improvements have been made and maintained, weapons, suicide, lethal violence, severe rage, severe confidential email or fax that simply says to handle the the additional interventions are phased out and the destruction of property, serious or repetitive fighting, student with care. No details of the event are shared, student returns to receiving universal supports as or severe depression, anxiety, or other mental health but it provides the school with some information to were discussed earlier. If there has been improvement, concerns. At that point, the Threat Assessment help assist the student in the immediate aftermath but more maintenance is required, interventions are Team determines if there is or is not an imminent of a severe trauma. Finally, there are intensive continued with data monitoring. Finally, if there has threat from the available information. If there is no strategies for the most chronic or complex mental been inadequate improvement, steps are taken to imminent threat, they develop an in-school plan health needs. These include individual therapy, wrap- ensure adequate participation in the intervention tool which can involve guidance, mental health referrals, around services from a multi-disciplinary team of or to add to or alter the intervention strategy. parent conference, an intervention plan or some other professionals and family, and Functional Behavioral Ms. Robbins stressed that trauma informed follow-up procedure. If a threat is found to exist, the Assessment-based behavior intervention plans. Ms. practices for educators need to be included in team conducts a Safe Schools Assessment which Robbins illustrated all of these interventions using professional development, but currently it is unclear usually includes suspension from school and a follow- a pyramid diagram of the multi-tiered systems of which best practices can be universally agreed up assessment prior to the student in question being support model. upon. Collaboration between agencies, schools, and allowed to return to school. Mr. Wosoba emphasized Ms. Tillett then presented on the Kentucky communities will need to happen before it can be that this was always a collaborative effort involving AWARE program. AWARE stands for Advancing fully incorporated into professional development. several individuals who can bring in information Wellness and Resilience in Education and is part Sustainable and effective change takes time and from all sources and multiple perspectives in order to of a five-year award from the U.S. Department of individual schools will vary in their readiness to have a more complete understanding of the risk and Health and Human Services. The purpose of the implement improvements. She recommended that any potential solutions. program is to increase student access to mental they be provided the necessary time and resources to Ms. Canuel briefly discussed the specifics of the health services and to make schools safer. Three Local develop programs that will be sustainable. forms which the Threat Assessment Teams use and Lab districts were identified: Fayette County Public In response to questions from Senator Carroll, which were provided as samples to members of the Schools, Pulaski County Schools, and the Kentucky Dr. Robbins said that there is a statutory mandate committee. These forms include a threat assessment School for the Deaf. Select activities were designed for the state interagency council, which is the form, documentation of action taken, consent to benefit those districts, but other programs were governing body for children’s mental health care. It forms, a parent contact acknowledgement form, an designed for statewide use and benefit. There are also meets monthly and is chaired by the Commissioner authorization of use and disclosure of information, other initiatives which consisted of two- to three- of Education. It needs to have more focus on mental school based monitoring forms, and a “pink sheet” year community level grants focused exclusively on health. While there have been great strides in which is a tracking form used by the Director of Pupil providing Youth Mental Health First Aid training. increasing interventions and access, there now needs Personnel and is retained in the school’s permanent Many of these programs are in their final year to be a strategic focus on prevention. The task force files. She said that many times the threats are able

24 2018 Interim LEGISLATIVE RECORD to be handled by the school staff through increased others. Roughly 76 percent of all Kentucky counties INTERIM JOINT COMMITTEE ON supervision and a positive end result is possible that were represented. Highlights of the draft proposal keeps the school and the student safe. for Reading and Writing Standards include a ECONOMIC DEVELOPMENT AND Chairman Carney said that every school reconstructed framework and vision to align the goals WORKFORCE INVESTMENT should have a threat assessment tool and thanked and purposes of the standards; 10 interdisciplinary Minutes of the 5th Meeting the presenters for sharing theirs as a model for other literacy practices, which provide overarching goals of the 2018 Interim schools. for literacy instruction for each student across the September 21, 2018 Responding to a question from Representative state; revised standards for early literacy that denote Call to Order and Roll Call Gibbons Prunty regarding students getting ‘lost’ in comprehension strategies, development of schema, The 5th meeting of the Interim Joint Committee the system, Mr. Wosoba said that because Oldham and increased analysis; a multidimensional approach on Economic Development and Workforce County Schools is a large system, it is sometimes highlighting the three dimensions of literacy; and Investment was held on Friday, September 21, 2018, difficult for any individual to have a sense of the school standard K-12 progressions in addition to the grade- at 10:00 AM, in Room 154 of the Capitol Annex. ‘pulse,’ however, using a team for threat assessments level view. Representative Phillip Pratt, Chair, called the meeting helps to give a more well-rounded perspective on any Ms. Ellis next gave an illustration of how these to order, and the secretary called the roll. issues which arise. standards will be displayed to better improve their Present were: In response to a question from Senator Wise, Mr. use by educators. Clarity was a primary focus of Members: Representative Phillip Pratt, Co- Wosoba said that the same protocols are followed any the Review/Development Committees as public Chair; Senators Perry B. Clark, Rick Girdler, Denise time there is a report, regardless of credibility of the comment had identified ease of use of the framework Harper Angel, Ernie Harris, Jimmy Higdon, Stephen reporter, because it is unknown until an investigation as a desire by teachers and other interested parties. Meredith, Reginald Thomas, Mike Wilson, and is made whether the threat is real or a hoax. He While this presentation focused on the Reading Max Wise; Representatives Lynn Bechler, McKenzie would not be opposed to legislatively increasing the and Writing Standards throughout, the process Cantrell, Daniel Elliott, Mark Hart, Dennis Horlander, punishments for making false reports. was identical for the review of the Mathematics Joni L. Jenkins, James Kay, Kim King, Adam Koenig, Proposed Changes to State Academic Standards, but discussion of the Mathematics Jerry T. Miller, Jason Petrie, Rob Rothenburger, Dean Standards standards was abbreviated due to time constraints. Schamore, Diane St. Onge, Wilson Stone, Walker Amanda Ellis, Associate Commissioner, Office More than 800 individuals participated in the public Thomas, Russell Webber, and Addia Wuchner. of Teaching and Learning, Kentucky Department comment period for the Mathematics Standards Guests: Representative John Blanton; Nate of Education, and Jennifer Fraker, Interim Director, with approximately 84 percent of Kentucky counties Nedley, CFO, E-Z Pack Holdings LLC; Alex Barnett, Division of Program Standards, Office of Teaching being represented. Again, the need for a user- Judge Executive, Harrison County; Tony Toups, and Learning, Kentucky Department of Education, friendly framework was identified as well as general Principal, Advantage Capital; Gary Jones, Director, gave an overview of the proposed changes to state clarification. Highlights of the proposed changes to Muhlenberg Alliance for Progress; Peggy Williams, academic standards for Reading and Writing and the Mathematics Standards include an architecture Chairperson, Muhlenberg Alliance for Progress; Mathematics. According to Senate Bill 1 of the structured to emphasize essential ideas or conceptual Alyssa Manning, President, Felix E. Martin Jr. 2017 Regular Session, which created new standards categories in mathematics; standards which Foundation; Secretary Derrick Ramsey, Education revision requirements, the standards revision to emphasize the importance of mathematical practices, and Workforce Development Cabinet; Deputy content standards shall focus on critical knowledge, equipping students to use reason and problem solve; Secretary Josh Benton, Education and Workforce skills, and capacities needed for success in the global connections between content standards and practice Development Cabinet; and Katie Houghlin, Director, economy; result in fewer, but more in-depth, standards standards where applicable; intentional alignment Division of Unemployment Insurance. to facilitate mastery learning; and communicate to numeracy trajectories; coherence to indicate the LRC Staff: Carla Montgomery, Andrew Manno, expectations more clearly and concisely to parents, mathematics connections within and across grade Candice Smith, and Sasche Allen. students, and citizens. levels; and better communication of expectations to Approval of Minutes The Standards and Assessments Review Process teachers, parents, students, and stakeholders through A motion to approve the minutes of the August is to occur every six years and is composed of 12 major examples and illustrations. While the process for 16, 2018 meeting was made by Representative Walker steps. Presentation of the standards to the Interim review and revision was the same for all content areas, Thomas, seconded by Representative Adam Koenig, Joint Committee on Education is the eighth step in the final framework of the standards will vary based and approved by voice vote. that process, and follows the formation of Review/ on the needs of each content area for clarity. 2019 Rural Jobs Act Development Committees and Advisory Panels, In response to a question from Representative Representative John Blanton of House District solicitation of public comment, consideration and Tipton, Ms. Fraker said that getting more responses 92, Nate Nedley, the Chief Financial Officer of E-Z incorporation of public comment by the Advisory during the public comment period will likely be a Pack Holdings LLC, Alex Barnett, the Judge Executive Panels, and the Review/Development Committee result of better timing. The comment period for these of Harrison County, and Tony Toups, a Principal at reviewing the recommendation of the Advisory standards was at the end of the school year when many Advantage Capital, spoke about the Rural Jobs Act Panels and making a proposal to the Commissioner. stakeholders were preoccupied. Business/community that was proposed in the 2018 Regular Session as Next, the Commissioner will report to the Standards/ leaders were involved more on the development HB 6. HB 6 would have created new sections of KRS Assessments Process Review Committee who will panels. A less cumbersome review tool would also Chapter 136 to establish a new tax credit against the recommend the proposal to the Kentucky Board of likely result in greater feedback. taxes imposed on insurance companies and financial Education if the Committee determines the standards/ There being no other business, the meeting institutions for contributions into rural growth funds; assessments review process was followed. The Board adjourned at 2:40 p.m. CDT. Chairman Carney required an entity to follow a process to apply for has final approval of the proposed changes, begins the announced that the next meeting will be Monday, certification as a rural growth fund and for investors regulation change process, and new standards will be August 13, 2018, at the Capitol Annex in Frankfort. in that entity to receive tax credits awarded by the implemented in all schools no later than the second Department of Revenue; allowed the department academic year following the process. to issue $60,000,000 in tax credits; provided credit During the public comment period on Reading sunset terms and other conditions for participating and Writing Standards, there were responses from in the program and for claiming the credit; provided 456 individuals, primarily teachers but also including for revocation of tax credits; allowed the department school administrators, students, state education to audit rural growth funds; limited any liability of agencies, retired teachers, parents, higher education the Commonwealth in regard to rural growth funds institutions, business/community members, and or investments made by them; and required various

THE KENTUCKY GENERAL ASSEMBLY 25 reports to be filed with the department and the Utah. The National Conference of State Legislators EZ Pack for offering workplace training that is Legislative Research Commission. The legislation (NCSL) completed a study in April 2018 pertaining to transferable and mentioned her many constituents passed the House but was amended in the Senate the tax credit program legislation like the Rural Jobs who are employees of the company that make the and was not voted upon prior to the adjournment Tax Credit which are jump starting rural economies. long commute. of both House. The Rural Jobs Act is intended to As the New Market Tax Credit has developed around Senator Jimmy Higdon echoed previous create opportunities for rural Kentucky by creating the country on the state and federal level, Advantage statements made by Senator Meredith and said he access to capital for rural businesses and small firms Capital has learned how to ensure it remains as would like for programs like these to be available and is modeled after the New Markets Program. fiscally responsible as possible and that there is a to distressed and rural communities across the Similar legislation has been enacted in four states: return to the state. HB 6 and the proposed 2019 Rural state that actually need the economic development Utah, Ohio, Georgia, and Pennsylvania. The program Jobs Act requires investors to have a federal license, opportunities. Representative Blanton said that is the would be available to those businesses in counties either being licensed as a small business investment reasoning for changing the population requirement. with populations of less than 50,000, fewer than 250 company through the Small Business Administration Responding to Representative Adam Koenig, employees, and with not more than $15 million in net (SBA) or as a rural investment company through the Mr. Nedley stated that although EZ Pack has yet to income. This differs from the 2018 version that had United States Department of Agriculture (USDA). see effects from state and federal tax changes, the a requirement of less than 70,000 people within the Companies are also required to display their ability to company may see an impact in the future. county. manage investments like the Rural Jobs Tax Credit and Representative Dean Schamore asked a follow up Nate Nedley spoke about how his company to be able to raise capital in a timely manner. The tax question in regards to earlier inquiries and statements has benefited from a tax credit program similar credits that fund part of the investments are delayed about the population requirement after stating that to the Rural Job Tax Credit after explaining the so there is no fiscal impact on the General Fund until according to the previous requirement in HB 6 evolution of the business located in Cynthiana, the third fiscal year after the implementation, and 100 about 109 counties would be eligible. Representative Kentucky. Commercial Specialty Truck Holdings percent of the capital raised has to be invested within Blanton confirmed that although he was unsure of the LLC purchased EZ Pack Refuse Hauling Solutions the first two years. It is also required that a company exact number of counties that would be eligible using and Continental Mixers in 2014 and was able to save receiving the tax credit show that they have created a the 50,000 criterion, about eight to ten fewer counties about 80 individuals from losing their jobs when predetermined number of new jobs, and if not there would qualify for the tax credit. the company was to move to another state under are back end penalties. Representative John Blanton Senator Rick Girdler said that because of the the previous ownership. The company faced some added that there are also requirements for workforce population and geographical location of his county struggles but was eventually able to qualify for the training, and it is being considered to lower the he would like to see the requirement remain at 70,000 Kentucky Business Investment Program through the county population size to truly seek to develop in the 2019 version of the legislation. Representative Cabinet for Economic Development, adding 100 new opportunities in the most rural areas throughout the Blanton said that lowering the number would be in jobs, and then in 2016 formed a partnership with Commonwealth. the best interest of the state as a whole and would Advantage Capital and Enterprise Bank to secure Responding to a question from Representative benefit those rural counties that are currently unable the New Market Tax Credit. Due to the amount of Kim King, Mr. Nedley said that EZ Pack offers to recover from downturns in the economy. employees tripling since 2014 and consistent and training in welding, specialized equipment, safety, Senator Stephen Meredith suggested factoring profitable output, EZ Pack has applied for another tax and leadership. Answering a follow up question, in workforce participation which may be a more credit program through the Cabinet for Economic Representative John Blanton confirmed that the realistic measurement for the criteria for eligibility. Development which will add even more jobs and county population size that is being considered is Muhlenberg Alliance for Progress allow for product and output expansion. 50,000. NCSL considers anything over this amount to Gary Jones, the Director of Muhlenberg Alliance Judge Executive Alex Barnett discussed some of be an urban area. for Progress (MAP); Peggy Williams, a Chairperson the positive effects that companies like EZ Pack have Replying to Representative Rob Rothenburger of Muhlenberg Alliance for Progress; and Alyssa had on Harrison County. The success of companies regarding his comments on penalties for new jobs not Manning, the President of the Felix E. Martin Jr. such as EZ Pack and 3M in Cynthiana have bought being created, Mr. Toups explained that the businesses Foundation, gave a brief overview of the organization more economic development opportunities to the receiving the tax credit would not be penalized. The and highlighted their partnerships that aid in the area. The county has seen the opening of a new investing or managing firm would be responsible for economic development of Muhlenberg County. In brewery, clothing stores, a healthy shake shop, any penalties under the 2019 Rural Jobs Act. the 1970s, the coal industry in Muhlenberg County and two new event spaces. Mr. Barnett explained Senator Stephen Meredith expressed concerns employed over 3,000 people but for 2018 that that there is now more jobs than workers and with about a portion of HB 6 that explains reasons for number has decreased to about 300. Ms. Williams workers coming from about 15 other counties to revocation of the tax credit, as follows: “The rural explained that a solution had to be formulated in work in Cynthiana, there is not enough housing growth fund in which the credit-eligible capital order to provide opportunities to the residents of the options to make it possible for all of the individuals contribution associated with the tax credit certificate county and for the economy to once again flourish, who work in the county to live there as well. Although was made does not invest one hundred percent (100%) specifically through education and economic this is not necessarily a bad problem to have, it is a of its investment authority in rural growth investments development. One partnership that was formed was problem that requires a solution according to Mr. in this state within two (2) years of the closing date, with the Madisonville Community College and the Barnett. Therefore, plans are currently being made a minimum twenty percent (20%) of which shall be city of Central City that donated land, to construct with developers to increase the amount of housing in counties with labor force participation rates below the Madisonville Community College-Muhlenberg available in Harrison County. the national average as determined by data available Campus. This was also made possible through $3 Tony Toups of Advantage Capital explained the from the United States Bureau of Labor Statistics and million of personal donations from the residents role that his company plays in the success of businesses the Cabinet for Workforce Development as of the and businesses of the county. MAP is working with like EZ Pack and how that success can translate to date of the rural growth investment.” Representative the school to implement new training in advanced economic growth in the area as a whole. Advantage Blanton further explained this stipulation by stating integrated manufacturing and technology. MAP Capital is a participant in the Kentucky New Market the 20 percent was included to ensure that a portion also partners with local government, businesses, and Tax Credit Program, which has primarily benefited of the funds go to counties that have unemployment citizens. businesses in urban areas. Mr. Toups states that the rates greater than the national average but said that One of the main partnerships that MAP utilizes proposed 2019 Rural Jobs Act would benefit smaller it could be reviewed and changed if it is deemed is with the Felix E. Martin Jr. Foundation. Mr. businesses in only rural communities. His company necessary. Senator Meredith voiced his opinion that Martin passed away in 2007 and willed $50 million has assisted in raising investment funds for the unemployment rates may not be a reliable statistic. to support civic, cultural, and educational projects in proposed tax credit program in Ohio, Georgia, and Representative Addia Wuchner commended Muhlenberg County. The Community Foundation of

26 2018 Interim LEGISLATIVE RECORD Louisville assisted the executors of Mr. Martin’s estate the SOAR Early Childhood Education Program; apprenticeship program is within the Education in finding individuals who would serve as full time Work Ready Youth Programs, which provides college and Workforce Development Cabinet. There are 251 staff for the foundation. An assessment was completed and career exploration field trips for K-12 grades, registered programs and nine competency based to determine county needs and it was found that and the Muhlenberg Achieves Postsecondary Success programs. There are 3,391 registered apprentices made jobs and economic development were needed the Program, which offers college tours and e-coaching up of 403 females, 201 minorities, over 600 veterans, most. Ms. Manning said that the foundation wanted mentoring. 1,614 youth, and five individuals with disabilities. to take on projects that would make Muhlenberg Gary Jones discussed challenges that MAP Secretary Ramsey discussed the 2018 Registered County appealing to businesses and companies faces and some solutions that are being developed. Apprenticeship Summit, which was a collaboration wanting to locate in the state. Due to the nature of One issue that he discussed was getting businesses with UPS, the Work Ready Skills Initiative, and how the foundation was formed, there was not an to build at the Paradise Regional Business Park that the TRACK Program. He explained two concepts abundance of nonprofit organizations to partner with was recently expanded upon. Mr. Jones explained that which will help ensure Kentucky’s apprenticeship to support the needed projects. Therefore, unique although the park is equipped with water, sewer, and program continues to grow in future which included partnerships were formed and funds were donated to electric, there is not an existing gas line. MAP is in the intermediaries and the adoption of P-Tech Schools. the local government and school system by using the process of trying to create incentives for companies Nearly $1.1 million in federal funding was allotted to foundation’s money to leverage additional state and locating their business in Muhlenberg County. The the state apprenticeship initiatives to enable Kentucky federal funds. Foundation staff researches various organization is also working diligently to develop the to establish and grow intermediaries to better connect projects and opportunities and presents them to county’s opportunity zones and working closely with apprentices with employers. An intermediary recruits state and local government, acting as a catalyst for the Cabinet for Economic Development. In addition, from a diverse pool of potential apprentices to match economic growth in Muhlenberg County. Since the MAP is collaborating with the Greater Muhlenberg their skills with the needs of employers and works foundation began giving funds in 2009, over $23.3 Chamber of Commerce, the Muhlenberg County with high schools, juvenile justice agencies, the million has been distributed in the county and it Board of Education, Madisonville Community unemployed, veterans, and high education facilities. intended to give about $2.2 million yearly indefinitely College, and the Education and Workforce Secretary Ramsey also described the concept of a due to how the endowment was set up. Development Cabinet to obtain full Work Ready P-Tech school, which are Pathways in Technology Ms. Manning discussed some of the projects that Certification. Early College High Schools that span grades nine the Felix E. Martin Jr. Foundation has made possible Representative Walker Thomas inquired about to 14. Students would graduate in six years with an including forming MAP in Muhlenberg County that a Public-Private Partnership involving Lake Malone associate’s degree in applied science, engineering, or exclusively handles economic development projects. State Park, which is partially located in Muhlenberg other competitive STEM disciplines. Another project that the foundation helped with County. Mr. Jones explained that the boat dock Deputy Secretary Josh Benton and Director was the Paradise Regional Business Park Expansion. was temporarily closed due to needed repairs but Katie Houghlin spoke about the modernization of It donated some funding to buy land to make the reopened after the Felix E. Martin Jr. Foundation the state’s unemployment insurance system. Deputy expansion possible which is one of the largest industrial partnered with residents of Muhlenberg, Todd, and Secretary Benton expressed gratitude for the passing parks in the states with 239 acres. A county owned Logan to raise the funds to make those renovations. of legislation in the 2018 Regular Session that allowed wireless broadband network was also created after it Responding to Co-Chair Philip Pratt, Mr. Jones the cabinet to upgrade the Service Capacity Upgrade was designed by a resident of Muhlenberg County said that the foundation has donated funds to assist Fund (SCUF), which was enacted July 1, 2018. with a $250,000 donation from the foundation and with the addition to the local high school that will Technology was upgraded through the acquisition funds from the county. There is a charge to utilize the house classrooms designated for advanced integrated of new software to increase delivery capacity in network but those funds are managed by a nonprofit manufacturing training. support programs administered by UI. Projected which then puts the funds back towards building new Senator Stephen Meredith commended MAP SCUF collections for the third quarter of 2018 are towers for the network. During the foundation’s initial and the Felix E. Martin Jr. Foundation for all of the $1.5 million and for the fourth quarter $1.4 million. needs assessment it was found that transportation was work done to revitalize Muhlenberg County and said For the calendar years of 2019 to 2023, projections are an issue for individuals to get to work or school. As a that the county sets a great example for other rural between $10 million and $12 million for each year. result, the foundation partnered with the state and the communities across the state. The UI Assistance Line was implemented February Pennyrile Allied Community Services to create the Replying to a question from Senator Ernie 2018 in response to local office service alignment. Ride to Work Program. Another conclusion that was Harris, Mr. Jones stated that the Muhlenberg County The average wait time is 6.48 minutes, but the deputy met after the assessment was that people should want Airport is equipped with a 5,000 foot runway, a secretary and director explained that the amount of to work and also live in Muhlenberg County. The new terminal, and new fuel tanks. After a follow up time includes Monday, which is the busiest day of the Greater Muhlenberg Parks and Recreation System question, he said that although there may be some week. The wait time every other day is closer to 2.5 and the Felix E. Martin Jr. Auditorium were created geographical obstacles, expansion of the length of the minutes. for the families and visitors of the county. runway may be possible. As of August 31, contributions to the UI in The foundation and MAP has also partnered Apprenticeship and Unemployment Insurance 2018 totaled $295,875,221 and benefits paid totaled with the SBA, USDA, and the local community college Update $211,020,992, numbers which have decreased to offer entrepreneur development programs and Secretary Derrick Ramsey, Education and dramatically since 2012 as a result of fewer people workforce training. The Martin Scholars is another Workforce Development Cabinet, Deputy Secretary being on unemployment. The fund balance has a program that was created that encourages adults who Josh Benton, Education and Workforce Development total of $543,455,889. The maximum weekly benefit have some college to complete their associate degrees Cabinet, and Katie Houghlin, the Director of the for Kentucky is $502, the average weekly benefit is by paying incentives each semester and a similar Division of Unemployment Insurance, testified on $341, and the maximum weeks of eligibility is 26, all incentive program was created to assist individuals the progress of the apprenticeship program and the of which are higher than surrounding and competing in obtaining their GED. The foundation gave some status of unemployment insurance. As of June 30, states. Deputy Secretary Benton explained some of the funds for a wing to be added to the local high school 2016 Kentucky’s apprenticeship program featured challenges of unemployment insurance that include that will house classrooms designated for advanced 148 registered programs and four competency aging technology, the duration of benefits received integrated manufacturing training. Students will be based programs. There were 2,422 registered compared to the national average, reemployment able to graduate with a skilled operator’s certification apprentices made up of 94 females, 298 minorities, activities, and customer service in the career centers and credits towards an associate degree. The wing is 266 veterans, 1,082 youth that ranged in ages 16 to that is often provided by a third party. Although there being utilized by the community college for adults 24, and zero individuals with disabilities. Since that are 134,234 open jobs, the average benefit duration to take classes in the evenings. The foundation time, additional state and federal funding has been is 18.4 weeks compared to the national average of contributes to early childhood education, including given to the program, and as of July 18, 2018, the 15.4 weeks. The cabinet is setting goals to solve all of

THE KENTUCKY GENERAL ASSEMBLY 27 these issues and in particular decrease the duration Rudy. In response to questions from Representative of benefits. Guests: Greg Harkenrider, Deputy Executive Meredith, Mr. Shanks said the positions listed as non- Senator Mike Wilson commented that he was Director, Governor’s Office for Economic Analysis; merit are federally-funded, time limited positions. The excited about the direction of the cabinet and especially Adam O’Nan, Union County Judge-Executive; current state threshold for federally declared disasters the apprenticeship program. Secretary Ramsey Greg Shanks, Fiscal Branch Manager, Kentucky is approximately $6.3 million, but will increase to $40 responded by saying he believes apprenticeship has Emergency Management (KEM); Jeremy Blansett, million shortly. The Federal Emergency Management the potential to change the trajectory of the state. Area 1 Manager, KEM; Jerome Mansfield, Director, Agency (FEMA) provides oversight, auditing grants Senator Jimmy Higdon made remarks regarding Paducah-McCracken County Office of Emergency and awards. The KEM is considered the applicant and the apprenticeship program and commended the Management. recipient of the federal funds, with the local entities partnerships among different cabinets to accomplish LRC Staff: Tammy Branham, Justin Perry, David being considered as sub-recipients; therefore, KEM is goals. Deputy Secretary Benton replied that after Talley, and Spring Emerson. ultimately responsible for their actions. moving to the cabinet and doing research it was Coal Severance Tax In response to a question from Senator found that across the state all workforce partners are Greg Harkenrider, Deputy Executive Director, Humphries, Mr. Blansett said the KEM has a only engaging with about 12 percent of Kentucky’s Governor’s Office of Economic Analysis (GOEA), great working relationship with Ft. Campbell for employers but that needs to improve. provided an overview of the Coal Severance Tax. different services. Mr. Shanks added that the KEM Addressing concerns voiced by Representative In response to questions from Senator Carroll, has established relationship with other states, and Dean Schamore, Secretary Ramsey said that there Mr. Harkenrider said the difference in pricing of response time has greatly improved. are plans to utilize public libraries for unemployment coal relates to the amount of energy and pollution In response to a question from Senator insurance. produced. High sulphur content and the presence Carroll, Mr. Shanks said the KEM is working Replying to Representative Lynn Bechler, of particulate matter affects the quality of Western hand-in-hand with the Kentucky State Police to Secretary Ramsey said he is aware of the decrease Kentucky coal, and therefore, the price. Plants that ensure interoperability. Mr. Blansett added that in the number of minorities that participate in the use scrubbers to clean the coal can burn the cheaper communications is the number one issue. apprenticeship program, and the cabinet is planning coal; however, there are very few power plants that Jerome Mansfield, Director, Paducah- to be more active in engaging minorities. can use the higher sulphuric acid coal. The GOEA has McCracken County Office of Emergency Representative Addia Wuchner made comments staff closely following the coal market, and one of the Management, provided an overview of the agency pertaining to the possibilities of the apprenticeship members of the Consensus Forecasting Group is an and its activities. program and how she believes alternative education economist who assists with monitoring the different In response to a question from Senator Carroll, and training models do work from what she has markets. Also, a forecast is purchased from Global Mr. Mansfield said it is a requirement to report any seen. She said she tries to encourage youth to explore Insight that predicts coal prices into the future. There evidence of an oil spill, however small. The spill apprenticeships and other methods of technical is an increasing demand for Eastern Kentucky coal in would then be assessed by the Kentucky Department training. the export market, with additional upward pressure for Environmental Protection. Responding to Representative Kim King, resulting from recent hurricane activity on the east Adjournment Secretary Ramsey said that he and cabinet coast. A motion for adjournment was made by representatives would be willing to visit her district Chair Miles commented that the most recent Representative Miller, seconded by Representative in an effort to increase employer participation rates budget bill resulted in a larger percentage of Coal Meredith, and the meeting was adjourned at 12:02 within the apprenticeship program. He explained that Severance tax receipts going back to the counties. PM. there has to be a level of loyalty amongst employers Adam O’Nan, Union County Judge-Executive, and employees and employers have to be willing to do provided an overview of the use of Coal Severance their part in order to build their workforce. funds in Union County. INTERIM JOINT COMMITTEE ON There being no further business, the meeting In response to a question from Representative AGRICULTURE was adjourned at 11:59 a.m. Meredith, Judge O’Nan said the US60 highway project Minutes of the 3rd Meeting is not in the Road Plan, but the project affects every of the 2018 Interim INTERIM JOINT COMMITTEE ON person coming to or going from Union County. September 28, 2018 Chair Miles explained that US60 had been on the Call to Order and Roll Call APPROPRIATIONS AND REVENUE Road Plan for over 20 years to get a four-lane highway. The 3rd meeting of the Interim Joint Committee Budget Review Subcommittee on General At some point, it was changed to a Super-Two, which on Agriculture was held on Friday, September 28, 2018, Government, was unwanted by the residents at the time. This caused at 10:00 AM, in Lexington, Kentucky. Representative Finance, Personnel, and Public Retirement a delay and Union county was affected negatively and Richard Heath, Chair, called the meeting to order, Minutes of the 3rd Meeting cut off completely to the north, due to flooding being and the secretary called the roll. of the 2018 Interim a recurring issue. There was a very dire need to raise Present were: September 27, 2018 the road elevation in order to provide a safe route for Members: Representative Richard Heath, Co- Call to Order and Roll Call local citizens and businesses. The project in the Road Chair; Senators David P. Givens, Dennis Parrett, The third meeting of the Budget Review Plan was not moving as quickly as it should, therefore Damon Thayer, Robin L. Webb, and Stephen West; Subcommittee on General Government, Finance, the non-traditional use of Coal Severance funds was Representatives Myron Dossett, Derrick Graham, Personnel, and Public Retirement of the Interim Joint considered. David Hale, Mark Hart, James Kay, Kim King, Phillip Committee on Appropriations and Revenue was held Representative Meredith commented that it Pratt, Brandon Reed, Rob Rothenburger, Steven Rudy, on Thursday, September 27, 2018, at 10:00 AM CST, was a great use of Coal Severance funds, and from Dean Schamore, Wilson Stone, Walker Thomas, at the Paducah Campus of Murray State University, an economic development perspective, it is very James Tipton, and Susan Westrom. 4430 Sunset Drive, Paducah, KY. Representative important for some projects to be moved forward. Guests: Drew Graham, Assistant Dean, UK Suzanne Miles, Chair, called the meeting to order, and Smaller communities, unfortunately, may fall behind College of Agriculture, Food and Environment; Dr. the secretary called the roll. due to lack of funds. Nancy Cox, Dean, UK College of Agriculture, Food Present were: Emergency Management and Environment; Dr. Eli Capilouto, President, Members: Senator Danny Carroll, Co- Greg Shanks, Fiscal Branch Manager, KEM, and University of Kentucky; Dr. Eric Monday, Executive Chair; Representatives Myron Dossett, Co-Chair; Jeremy Blansett, Area 1 Manager, KEM, provided an Vice President for Finance and Administration, Suzanne Miles, Co-Chair; Senator Stan Humphries; overview of the agency overall, as well as its activities University of Kentucky; Patrick Perry, Research Representatives Tim Couch, Jim Gooch Jr., Richard in the area. Coordinator, University of Kentucky Tobacco Heath, Michael Meredith, Jerry T. Miller, and Steven Research Development Center; Dr. Mark Williams,

28 2018 Interim LEGISLATIVE RECORD Professor and Interim Chair, Farming Apprenticeship including developing leaders, economic development, he recommended Dual Magnum II and Trifluralin Program, University of Kentucky; Dr. Seth Debolt, and healthier living. The information provided at this (Triflan) as herbicides. The Artemisia plant is cut and Professor, Distillation, Wine and Brewing Program, meeting positions the agriculture sector to remain left in the field for several days so it can soak up the University of Kentucky; Ms. Patsy Wilson, Extension competitive. Agriculture is a $45 billion industry in sunlight to help the conversion process, and then it is Specialist, Viticulture and Enology Program, Kentucky. hung in the barn. University of Kentucky; Mr. Jeff Wheeler, Extension Dr. Eric Monday, Executive Vice President In response to Representative Rothenburger, Specialist, Viticulture and Enology Program, for Finance and Administration, University of Mr. Perry stated that the typical growing season is 300 University of Kentucky; Dr. John Strang, Extension Kentucky, stated that with the support of the General days. The compounds needed for artemisinin develop Professor, Fruit Production, University of Kentucky; Assembly, UK has been able to invest over $2.2 billion just prior to flowering. The plant is resilient in hot and Dr. Rachel Rudolph, Assistant Extension Professor, in the campus in order to build the best physical dry weather. Vegetable Production, University of Kentucky; and environment for students to succeed, help build In response to Representative King, Mr. Perry Dr. Krista Jacobsen, Associate Professor, Organic community, and achieve belonging. UK had invested stated that artemisinin can be used for colon cancer, High Tunnel Production, University of Kentucky. approximately $500 million on housing and dining breast cancer, and other common and aggressive LRC Staff: Stefan Kasacavage, Nathan Smith, which contributed to 23,000 direct and indirect jobs. types of cancer. and Susan Spoonamore, Committee Assistant. That equates to $25 million in taxes paid to Kentucky. In response to Representative Pratt, Mr. Perry The August 23, 2018, minutes were approved by UK is committed to a sustainable food supply for use said that no treatment was applied or needed for voice vote, without objection, upon a motion made by in the dining program. In 2017, through the local mites or ladybugs. Natural nitrogen and potassium Representative Rudy and seconded by Representative purchasing initiative, UK purchased $1.7 million in were used. Reed. food supplies. In response to Representative Dossett, Mr. Perry Opening Remarks and Welcome Discussion on Artemisia Research said that the seeds were started in a greenhouse. Dr. Nancy Cox, Dean, UK College of Mr. Patrick Perry, Research Coordinator, KTRDC had the nitrogen and potassium available so Agriculture, Food and Environment, stated that University of Kentucky Tobacco Research that is what was used. He did not have information the UK Horticulture Research Farm had enabled Development Center, discussed the production of the regarding the economics of using other products. the UK College of Agriculture to be a national antimalarial drug Artemisinin from the medicinal In response to Representative Rudy, Mr. Perry leader in organic and conventional farming systems plant Artemisia annua L. (sweet wormwood). Malaria said that the seed looks like sawdust. It is smaller than research for vegetable production. She said that the is a worldwide epidemic, transmitted by mosquitoes a tobacco seed; the seeds are extremely small. The Research Farm produces wine along with educating and is most prevalent in underdeveloped regions. In seeds that the KTRDC used were elite hybrids bought students in the science and business of farming. All 2015, there were 214 million cases and 438,000 deaths from Switzerland and Thailand. Seeds can be bought of UK’s research farms are used to produce unbiased reported. The World Health Organization (WHO) in another state but they are undomesticated. research and extension results. There are eight recommends using Artemisinin-combination therapy In response to Representative Westrom, Mr. animal research units, five farm research units, and (ACT) for the most effective treatment. The medicine Perry said that to the best of his knowledge, there are one forest unit which together serve 14 different supply is expensive and scarce, and the market no American pharmaceutical companies synthesizing academic departments. Dr. Cox said the Grain and demand is high. Sweet Wormwood (Artemisia annual or producing their own material. Forage Center of Excellence at Princeton was made L.) is primarily grown in southeast Asia and arable In response to Representative Pratt, Mr. Perry possible through a $15 million investment by the Africa. It is the only plant in the world that produces said sulfate is used instead of muriate because it is in Kentucky Agricultural Development Board with the the active compound, Artemisia. It is a summer the barn and readily available. Using muriate would stipulation that matching funds are to be provided by annual and belongs to the daisy/sunflower family. be more cost effective. the University of Kentucky. (The University stands Artemiflow, which is a German company, has been Discussion on Department of Horticulture at $9.4 million towards the match.) The Extension able to increase efficiency through a continuous flow Programs system is valued by rural communities. The UK system that targets artemisinin and chemical relatives. Dr. Mark Williams, Professor and Interim Chair College of Agriculture, Food and Environment is in It has increased higher yields, which lowers the cost. of the Department of Horticulture gave an overview the process of completing a needs assessment in each Artemisinin has also shown to be effective for cancer of the research done at the Horticulture Research. The county regarding the extension system, along with a treatment (in human trials now at the UK Markey farm is broken up into units, with the majority of the return on investment study of each extension across Cancer Center). Since artemisinin is already FDA farm being used for conventional fruit and vegetable the state. Dr. Cox said that the College of Agriculture approved, the only other step needed is repurposing production research. The Viticulture and Enology is starting a farm incubator program to help young approval. There is potential that artemisinin could have program includes distillation of wine and brewing farmers who cannot get credit or land. The program diabetes and veterinary applications. The Kentucky studies. There is a substantial vineyard with four to five will help to prove the young farmers’ creditability, Tobacco Research Development Center (KTRDC) has acres of grapes in production. There is an ornamental ability to produce, and ability to manage finances. been tasked with propagating sweet wormwood in a section for woodies and annual plants. The organic The College of Agriculture is formulating a spirits tobacco type production system. There is very limited farming unit contains approximately 30 acres that is research institute to help the burgeoning bourbon information on how to grow from seed, especially in a part of the farming apprenticeship program. The and spirits industry. terms of transplant production. The KTRDC started department sells wholesale fruits and vegetables to Dr. Eli Capilouto, President, University of with greenhouse testing in the winter, then moved UK Dining Services. There is the potential of creating Kentucky, stated that the University of Kentucky’s on to field and harvest testing. He was able put the new programs such as beginning farmer training story starts with the people being served across transplants into a tobacco transplanter and prepare programs for non-degree seeking students where the Commonwealth. UK takes seriously the the field as if it were a tobacco field. The plant would students can stay a year or longer to understand responsibility to be the university for Kentucky. It be hand cut, hung outdoors for a few days, and then farm business plans, the science of farming, and takes infrastructure, research, and ideas to advance an finish drying in a barn. Because the material dries the practice of farming. The Distillation, Wine economy. It is important to provide a good, healthy quickly, bailing would be out of the question. The and Brewing Program received a National Science workforce at the individual level and community level. price per acre return should be similar to tobacco. Foundation grant for $6 million to look at lodging, The University of Kentucky is committed to turning Artemiflow plans to establish a facility in Kentucky which effects corn and sorghum. The philosophy of the opioid crisis around. The land grant mission is and expects to start with 30 acres in 2019, 3,000 acres the department is sustainability. to keep the doors open wide and serve everyone you by 2020, and hopefully 12,000 acres by 2026. There being no further business, the meeting can. UK has record retention rates, record graduation In response to Representative Tipton, Mr. Perry was adjourned. rates, and groundbreaking research. The Extension stated that the literature indicates sweet wormwood system strengthens everything across Kentucky requires soil with high nitrogen and potassium, and

THE KENTUCKY GENERAL ASSEMBLY 29 INTERIM JOINT COMMITTEE ON Although pharmacy costs are expected to increase than 16,000 people have participated in two step initially, KEHP believes it is the right thing to do for challenges. A KEHP video about breast cancer STATE GOVERNMENT its members. KEHP is breaking even on costs for the survivors will be relaunched in February during Minutes of the 3rd Meeting diabetes value benefit that was introduced in 2016. breast cancer awareness month. There is also a video of the 2018 Interim September 26, 2018 In 2019, all planholders must fulfill the about the Champions Step Challenge Winners on the LivingWell Promise by completing either the Go365 LivingWell website. KEHP LivingWell initiatives have Call to Order and Roll Call Health Assessment or a biometric screening. They increased face-to-face interactions and promoted The third meeting of the Interim Joint must fulfill the Promise by July 1, 2019, in order to activity through social media channels. Committee on State Government was held on receive a $40 monthly premium discount in 2020. In The number of medical visits via the LiveHealth Wednesday, September 26, 2018, at 1:00 PM, in Room 2018, 93 percent of planholders complied. Online free benefit is growing and has brought 154 of the Capitol Annex. Senator Joe Bowen, Chair, In 2019, KEHP will offer “Rethink,” a new free KEHP $3.9 million in cost-of-care savings. Each called the meeting to order, and the secretary called benefit to support those who care for children with visit costs the plan only $49, substantially less than the roll. learning or behavioral challenges. It will include for an emergency room visit. Behavioral health visits Present were: 24/7 phone or video chat with a behavior expert and to a psychologist or therapist were added to this free Members: Senator Joe Bowen, Co-Chair; will be available for all developmental disabilities, benefit in 2017. In 2019, visits to a psychiatrist will be Representatives Jerry T. Miller, Co-Chair, and Kenny including autism. The benefit applies to all employee included. Imes, Co-Chair; Senators Ralph Alvarado, Christian dependents, regardless of age and/or medical plan The Vitals SmartShopper benefit began in 2013. McDaniel, Morgan McGarvey, Albert Robinson, and eligibility. Members must provide a 4-digit code when Kentucky’s plan is serving as a role model for other Damon Thayer; Representatives Lynn Bechler, Kevin calling or going online; the code is “KEHP.” states. As of June 2018, this benefit has paid $1,919,460 D. Bratcher, Tom Burch, McKenzie Cantrell, John In 2019, there will be no changes to deductibles, in incentives to planholders. After payment of the Carney, Derrick Graham, Mark Hart, Richard Heath, co-insurance, or co-payments. The LivingWell incentives, KEHP saved $13,228,176. Dennis Horlander, DJ Johnson, Mary Lou Marzian, CDHP and LivingWell PPO plans will not change; In the diabetes prevention program, KEHP is Reginald Meeks, Phil Moffett, Tim Moore, C. Wesley 86 percent of members are in those two plans. The meeting goals set by the Centers for Disease Control Morgan, Sannie Overly, Jason Petrie, Rick Rand, Jody LivingWell Basic CDHP is the same as the 2018 and Prevention. Since implementation of the diabetes Richards, Attica Scott, Tommy Turner, Ken Upchurch, Standard CDHP; the name was changed to reflect the value benefit, a greater number of members with and Jim Wayne. LivingWell Promise requirement. The new default diabetes are taking their medications regularly. Guests: Jenny Goins, Lesley Bilby, and Mary plan, LivingWell Limited High Deductible, is a Members participating in the program reduced their Elizabeth Bailey - Personnel Cabinet; Don Parkinson, “catastrophic” plan that has the lowest premium but average starting A1C from 6.05 to 5.63. There were Donnie Holland, Jean Bird, and Ron Vanover - higher deductibles and out-of-pocket maximums. 1,865 newly adherent diabetic members in 2016, the Tourism, Arts and Heritage Cabinet; and Lindsay It replaces the 2018 Standard PPO, which has about program’s first year, and an additional 1,719 newly Thurston and Jenni Scutchfield, office of the Secretary 15,000 members. When those members migrate to the adherent members in 2017. In the program’s first year, of State. LivingWell CDHP, LivingWell PPO and LivingWell prescription costs increased 13.9 percent, but medical LRC Staff: Alisha Miller, Michael Callan, Daniel Basic CDHP plans, KEHP expects to save from $9-13 costs decreased seven percent. KEHP broke even Carter, Kevin Devlin, Roberta Kiser, Karen Powell, million. on the program; based on that success, the COPD/ and Peggy Sciantarelli. About 85 percent of plan participants use generic asthma benefit has been added for 2019. Approval of Minutes drugs. The value formulary of the LivingWell Basic Ms. Goins discussed the dependent eligibility A motion to approve the minutes of the August CDHP and the LivingWell Limited High Deductible verification audit. When the audit ended, KEHP 22 meeting was seconded and passed without plans will focus more on generics and less on brand- was forced to terminate 9,483 unverified dependents objection. (This occurred later in the meeting.) named drugs and should save KEHP about $597,000. at the end of July 2017. However, approved appeals 2019 Kentucky Employees’ Health Plan Many companies are beginning to implement value have added 4,281 back to the plan with no break in Jenny Goins, Commissioner, Department of formularies. The more popular LivingWell CDHP coverage; 1,679 appeals are pending and expected to Employee Insurance, Personnel Cabinet, discussed and LivingWell PPO plans will have the advanced be approved. Alight Dependent Verification Services the Kentucky Employees’ Health Plan (KEHP) and control formulary in 2019, which is the same as the (formerly Aon Hewitt) is the vendor who performed highlights for the 2019 plan year, in conjunction 2018 formulary. the eligibility audit. From a fiscal responsibility with a PowerPoint presentation. Four plans are being In 2019, employer-sponsored optional dental perspective and to ensure that the right people are offered: LivingWell CDHP (consumer driven health and vision coverage will be available to active public covered, KEHP will begin an ongoing audit process, plan), LivingWell PPO, LivingWell Basic CDHP, and employees at no cost to the employer. Premiums will starting December 1. LivingWell Limited High Deductible Plan. Open be payroll-deducted. Through the state’s RFP process Senator Alvarado expressed interest in the enrollment will be October 8 to October 26, and Anthem was selected as the carrier for those benefits. opportunity, transparency, and cost savings offered enrollment for the 2019 plan year is mandatory for Ms. Goins said that KEHP always considers by the Vitals SmartShopper program. He asked all members. cost and claims data before changing the health plan. about its implementation and the name of the KEHP is the largest self-insured plan in the state Premiums for 2019 will not increase because the organization’s contact person. Ms. Goins said that and covers six percent of the entire state population. budget for 2019 and 2020 allowed rollover of surplus Vitals SmartShopper handles much of the necessary School boards comprise 52 percent of the membership, funds from prior years. Based on the current outlook, research and contacts providers to determine the early retirees 24 percent, state agencies 19 percent, and it is expected that premiums will not increase in 2020. contracted rates for medical procedures that they quasi groups five percent. In 2019, there will be no The requirement for all planholders to complete have negotiated with Anthem, KEHP’s third-party premium increases for most members. There will be the LivingWell promise in 2019 has the goal of getting administrator. The negotiated rates are then listed on a small increase for approximately 17,000 members; people “kick started” on their wellness. Data indicates the Vitals SmartShopper website. The program was couple and family coverage levels in the LivingWell that when people become more engaged with their not difficult to implement. The challenge has been to CDHP plan will have per-month increases of $8 and health and the Go365 initiative, health risk scores go encourage engagement by planholders, and KEHP $10, respectively, in order to align the claims cost of down, which saves the plan money. has focused on getting the information out. Ms. Goins those plans. State wellness director Twany Beckham is said that Rob Graybill was the vendor’s initial contact COPD (chronic obstructive pulmonary working on changing the culture. He has grown person but that she would e-mail contact information disease) and asthma are being added to the value the statewide wellness coalition by 49 percent; the to Senator Alvarado. benefit program in 2019. Approximately 20,000 plan coalition is composed of people in local agencies Responding to questions from Representative members utilize COPD and asthma medications. It who help spread the word about wellness. More Bratcher, Ms. Goins said that when early retirees will cost about $792,000 to implement the benefit.

30 2018 Interim LEGISLATIVE RECORD transition from KEHP to Medicare coverage, they deferred maintenance. The cabinet cannot “do it all” in business, creating significant savings for the local join a Medicare supplement plan offered by the and has been working with communities to address management. At Kincaid Lake State Park the state retirement systems. Quasi-governmental agencies are problems. He stressed the importance of keeping the leased the park’s 9-hole golf course to Pendleton local city and county government organizations who parks open and maintaining historical sites. County, after meeting with Representative Hart and are allowed to join KEHP if they are participating in The parks drive tourism, support job creation, local officials. The county made improvements, kept Kentucky Retirement Systems. strengthen economic impact, and preserve history. the course open, and created significant savings for Responding to questions from Representative The continuing strategy for the parks system is to the local management. Representative Hart expressed Miller, Ms. Goins said that the Vitals SmartShopper partner with local governments, protect resources, thanks for the partnership at Kincaid Lake State Park. service is used only for medical or surgical procedures. require parks operations to continue, develop He said it has been more successful than anticipated. Completion of the LivingWell Promise applies to innovative ownership, management, and operational The manager of the golf course had a goal to break planholders but not their spouses, but KEHP has had tools, and ensure that natural and historical resources even at the end of the 2018 but was able to reach that internal discussions about possibly including spouses. are preserved and enhanced for generations to come. goal at the end of July. The golf course is back up to Representative Miller said that would be a great next Commissioner Holland expressed appreciation par and is an enhancement not only for the state park step. for the monies that were allocated to help stem the but also the local community. Senator Bowen thanked Representative Meeks asked about security tide of deferred maintenance issues and to begin the Representative Hart for that information and stated and confidentiality of plan members’ information. process of turning the parks around. He said that that public-private partnerships (P3s) by state and Ms. Goins said that KEHP pays close attention to in many cases local governments are best suited to local governments are critical to meeting the needs of confidentiality of information and has not had a address deferred maintenance needs and to support the Commonwealth. major breach. KEHP and its vendors sign business recreational programming and events at the parks. Commissioner Holland said the cabinet is in associate agreements, and everyone involved in the Local citizens should have input in the operation of the process of working on other projects with local health plan abides by Health Insurance Portability and their parks. Kentucky has 49 parks—more than the communities. Local officials want to operate and Accountability Act rules (HIPAA). As an example, average in other states. The parks have 1,500 employees manage Levi Jackson State Park in London. After KEHP receives only aggregate data from biometric during the summer and approximately 800 full-time being contacted by Mayor Troy Rudder, the state screenings but not the results for individual members. employees in the winter months. The parks appreciate is working on an agreement to transfer the park to Those screening results go straight from the provider help from their partners in local communities. Those the city. In Lincoln County, if management of the to Go365. They are then forwarded to Anthem, so partnerships are conditioned on continuity of the William Whitley House State Historic Site can be that the nurses in the disease management program parks; otherwise, control would revert to the state. It transferred to the Lincoln County Historical Society, can reach out and offer assistance to members. is not a new approach. There were similar agreements public access to the Whitley House will increase, and Representative Meeks asked whether KEHP makes in prior administrations: Constitution Square State additional funding will be available for its continued an effort to advise members that their data is secure. Historic Site partnership with the city of Danville preservation. Boone Station (not to be confused Ms. Goins said she believes KEHP legal documents in 2012 and a partnership with the city Owensboro with Fort Boonesborough) comprises 47 acres in include that information but that she would double for the golf course at Ben Hawes State Park in 2010. southeastern Fayette County that Robert Strader check. Four state park golf courses were closed in prior years: deeded to the Department of Parks in 1992 in his will. Answering questions from Representative Rough River Dam (2013), Kenlake (2013), Jenny The will states that if the Department of Parks does Graham, Ms. Goins said the new COPD/asthma value Wiley (2012), and Lake Cumberland (2006). Others not develop the property as a “historic state park” benefit and the Rethink telehealth behavioral health have been closed during the current administration within 15 years, ownership of Boone Station would be benefits are available to members at no additional because of low utilization. deeded to David’s Fork Baptist Church in Lexington. cost. The 4,795 dependents who were removed from Commissioner Holland recounted success In 2004, the Department of Parks requested $400,000 the plan in 2018 may file a Level 2 appeal, but the stories in working with local communities. The to develop the park, but the request was not approved appeal window ends on October 8, the beginning of Calvert City airport, which is located at Kentucky and the development did not occur. The property open enrollment. The $10/month premium increase Dam Village State Resort Park, had been downgraded includes two old, dilapidated barns that have no for family coverage in the LivingWell CDHP plan will to “airstrip” status and needed extensive repairs. historical significance and pose a safety concern. apply to about 10,878 members; the $8/month increase The city is building hangers to accommodate 10- There are three picnic tables and a single porta-toilet. for couple coverage will apply to 6,340 members. plus private aircraft and is adding aviation fuel The Department of Parks and the Kentucky Historical Representative Graham expressed appreciation to service. The improvements are designed to support Society placed a few signs and interpretive panels. A Ms. Goins for the help her office provides. economic development in western Kentucky and to marker lists Daniel Boone’s relatives, but there is little There were no additional questions, and Senator reestablish the airstrip as an FAA-approved airport. evidence that they are buried at the site. Bowen thanked Ms. Goins for her attendance and My Old Kentucky Home State Park amphitheater in Senator Bowen thanked the speakers and for presentation. He encouraged the committee to reach Bardstown had a history of structural and electrical addressing concerns that had been voiced previously out to Ms. Goins and her staff whenever they have issues and was closed for safety reasons. The Stephen by some committee members. He said he recently questions about the health insurance plan. Foster Story production continued this summer visited Breaks Interstate Park. He asked about the Kentucky State Parks Update after an agreement was reached between the state partnership between Kentucky and Virginia for Guest speakers from the Tourism, Arts, and and the Nelson County fiscal court. Local leaders administration of the park. Commissioner Holland Heritage Cabinet were Don Parkinson, Secretary, made the needed repairs for a fraction of what it said the lodge is in Virginia. The partnership does Jean Bird, Deputy General Counsel, John Cox, would have cost the state. The amphitheater at Jenny relatively well and comes close to breaking even. Communications Director, Donnie Holland, Wiley State Resort Park was closed due to electrical He believes Kentucky provides a little less than 50 Commissioner, Department of Parks, and Ron and structural issues. The state leased the theater to percent of the funding. There had been concern about Vanover, Director, Recreational Parks and Historical the city, which made the necessary repairs, and the safety because rangers stationed in Virginia were not Sites. The testimony included a PowerPoint show continued there this summer. The swimming authorized to enter the Kentucky section in order to presentation. pool at Jenny Wiley had been idle and was leased to exercise police powers. With Justice Cabinet Secretary Secretary Parkinson said that funds which the the city of Prestonsburg. The city is working to make John Tilley’s support, the rangers now have authority legislature allocated for the state parks system ($18 repairs and plans to reopen the pool in the spring of to police on both sides of the border. Mr. Vanover said million and $20 million over the last two bienniums) 2019. A local charitable foundation paid to demolish that Breaks Interstate Park is run by a commission, have been beneficial. Sales have increased over the last the dilapidated boat dock at Lake Malone State Park with four members from Kentucky and four from 2½ years. The parks system is improving, but there is marina and replaced it with a new one. The dock Virginia. Two-thirds of the park is in Virginia and not enough money to take care of the $240 million in was condemned in December 2015 but is now back one-third is in Kentucky. When the park was created

THE KENTUCKY GENERAL ASSEMBLY 31 jointly by the two states in 1954, law enforcement had strayed from their mission of being the nation’s Representative Petrie asked whether there was a officers in Virginia had no control within the 1,700 finest. He is glad to see movement in that direction, cost analysis relating to the fee increases, in addition acres in Kentucky. The states have worked on that and he would like to hear more at a future meeting to the comparison with other states’ fee structures. issue for the last four or five years and were able to about P3s for the parks. He commended Mr. Vanover Ms. Scutchfield said the fees had not been changed in obtain the needed law enforcement authority. for his faithful service as a parks employee. decades and that the increases were needed. She said Senator Bowen asked whether the Kentucky State Senator Bowen thanked the speakers for their she did not find a written analysis. Parks Foundation is still active. Secretary Parkinson testimony and for their efforts in the parks system. He The meeting agenda included the following said it is and is still headed by Molly Caldwell. The invited them to return to a future meeting. regulations from the Personnel Cabinet: 101 KAR foundation recently conducted t-shirt and poster Administrative Regulation Review 2:020, 101 KAR 2:034, 101 KAR 2:076, 101 KAR fundraisers and will host a fundraiser at Keeneland 31 KAR 3:010 Current address of Kentucky 2:095, 101 KAR 3:045, and 101 KAR 3:050. Guest within a few weeks. The foundation members also registered voters and distribution of voter registration speakers from the cabinet were Lesley Bilby, Deputy host park visits and exhibits for children. Senator lists – This regulation was reviewed and amended by Secretary, and Mary Elizabeth Bailey, Commissioner, Bowen explained that the foundation was created the Administrative Regulation Review Subcommittee Department of Human Resources Administration. after the parks system received a bequest of several on August 14, 2018, and was assigned on September 5 Senator Bowen said that because the committee thousand dollars from a Kentucky citizen. to the Interim Joint Committee on State Government cannot take action due to lack of a quorum, he Senator Robinson said he endorses London local for secondary review. Lindsay Thurston, Executive would entertain a motion to adjourn if that would be government’s involvement in Levi Jackson State Park Advisor, and Jennifer Scutchfield, Assistant Director, acceptable to the guest speakers. They indicated they but has concern whether there are guidelines and testified on behalf of the office of the Secretary of State would defer to the chair. restrictions to protect the natural resources on the and the State Board of Elections. A motion to adjourn passed without objection. property. The park contains some of the best forests in Ms. Thurston answered questions from Senator Business concluded, and the meeting was adjourned that area of the state. Ms. Bird said the state intends to Thayer regarding the fee increases proposed in the at 2:58 p.m. preserve the land as it now exists. There are historical amended regulation. She said the increases were preservation and conservation easements for the recommended by the executive director and the INTERIM JOINT COMMITTEE ON property, and if it were to cease being used as a park assistant director of the State Board of Elections and it would automatically revert to the Commonwealth. then approved by the board in April 2018. Requests LOCAL GOVERNMENT Representative Wayne thanked Secretary for the statewide voter list will increase from $450 to Minutes of the 3rd Meeting Parkinson and Commissioner Holland for their $2,000. The fee for an alphabetical paper list or a street of the 2018 Interim September 26, 2018 service to the parks. He said it appears that the order paper list will increase from $4 to $10. The fee for parks may be in a state of crisis, considering the mailing labels will increase from $10 to $30 per 1,000 Call to Order and Roll Call maintenance needs of $240 million. He questioned labels. The Commonwealth of Kentucky has one of The third meeting of the Interim Joint whether there is a long-term strategy for the parks. the lowest fee structures for its voter registration data. Committee on Local Government was held on He suggested looking at the state of Minnesota, which Indiana charges $5,000 for a statewide voter list, and Wednesday, September 26, 2018, at 10:00 AM, in gathered a coalition of rural and urban citizens to Alabama charges $36,000. After research, the board Room 171 of the Capitol Annex. Representative Rob organize a system to continuously fund its state parks. adopted the fee increases to bring them more in line Rothenburger, Chair, called the meeting to order, and He believes the parks present great opportunity for with fees in other states. Answering further questions the secretary called the roll. Kentucky but that more needs to be done to restore from Senator Thayer, Ms. Thurston said there was no Present were: and perhaps expand the parks system. Secretary disagreement about the recommended fee increases. Members: Senator Joe Bowen, Co-Chair; Parkinson said there is a strategic plan. The cabinet The amended regulation is designated as emergency Representative Rob Rothenburger, Co-Chair; is working on updating it and will be able to share it because elections are a critical infrastructure, and the Senators Ralph Alvarado, Christian McDaniel, with the committee. Two-thirds of the U.S. population increase in revenue will support established security Morgan McGarvey, Albert Robinson, Dan “Malano” can drive to Kentucky within one day. Customers of efforts. Seum, and Damon Thayer; Representatives Danny the parks seem to like what is being done, and the Senator Thayer asked about the status of the Bentley, George Brown Jr, Ken Fleming, Kelly Flood, hope is to make the parks system bigger and better. federal consent decree that directed Kentucky to , DJ Johnson, Kim King, Adam Koenig, He visited Pine Mountain State Resort Park recently clean its voter rolls. Ms. Thurston said that the State Stan Lee, Michael Meredith, Jerry T. Miller, Phil and thinks it looks better now than when it opened Board of Elections has submitted a comprehensive Moffett, Steve Riggs, Attica Scott, Arnold Simpson, in 1924. There are many good things about the parks plan to the Department of Justice in a timely manner. and John Sims Jr. system, but more can be done. The plan is currently receiving review and is under Guests: John Holiday, Mike Sunseri, and LeAnn Representative Meeks said he hopes that the consideration for improvement. The final plan is Straley, Kentucky Office of Homeland Security; Joe strategic plan will incorporate the former Cherokee due by the middle or end of October, and staff is in Baer, Kentucky Professional Firefighters; Dr. Kerry State Park, a blacks-only state park located in western constant communications with the Department of Ramella, International Association of Firefighters Kentucky. The park opened in 1951 and was closed Justice. Advisory Committee for the Center of Excellence in the 1960s. It is now part of Kenlake State Resort Senator Thayer suggested an oral amendment, for Behavioral Health Treatment and Recovery; Park. Secretary Parkinson said that African American or deferring the regulation for a month, in order Valerie Areaux, Bluegrass Family Therapy; Jo Terry, history is an important support for tourism and is a to correct the misspelling of “credit” on page 11. Covington; Ehrin Ehlert, First Responder Network priority for the cabinet. Representative Meeks asked Some members of the committee pointed out that Authority; and Eric Flannery, FirstNet Program, about legislation that Congress is considering to an amendment would not be necessary in order to AT&T. designate Camp Nelson as a national monument. correct a typographical error. Ms. Thurston said she LRC Staff: Mark Mitchell, John Ryan, Joe Secretary Parkinson said Camp Nelson is not part of would be happy to accommodate the wishes of the Pinczewski-Lee, and Cheryl Walters. the Kentucky parks system but that he would get an committee. Approval of Minutes update about that. Senator Bowen said that the committee Upon the motion of Senator Alvarado, seconded Representative Miller said he served as state would not be able to take any official action due to by Representative Bentley, the minutes of the August parks commissioner for a brief period in 2006 and lack of a quorum. Pursuant to KRS Chapter 13A, 22, 2018 meeting were approved. 2007. The needs were massive then and continue to the committee has only 30 days from the date of NextGen 911 Services and 2016 HB 585 be. He believes a root cause was that more than 20 assignment to review a regulation, so the period for Update years ago the focus was on building and growing, review will have elapsed before the committee meets Mr. John Holiday, Executive Director of the without sufficient money for maintenance. The parks in October. Kentucky Office of Homeland Security (KOHS) and Chairman of the Commonwealth’s 911 Service Board,

32 2018 Interim LEGISLATIVE RECORD told the Committee that while 911 is primarily a on how to best move forward Kentucky’s NG911 In response to a question from Representative communications operation, Geographic Information efforts. The board received good feedback from the Johnson, Mr. Sunseri said that in terms of matching System (GIS) is a critical element of innovative, 911 community thus far. The one common element the money for the federal grant, there are presently 21st century emergency communications. For 911 shared by those in the trenches was GIS. For the enough agency funds in reserve to cover one or two purposes, timely and accurate mapping data is of NG911 to work, there must be updated and accurate years of the four year grant term. paramount importance. GIS as a whole must be electronic mapping on a statewide level. In response to a question from Representative elevated in stature if Kentucky hopes to compete on Looking beyond the grant, the Kentucky 911 Miller, Mr. Sunseri said the 37.5 cent flow back from a national scale. Services Board is in better shape than ever before. the wireless phone tax to PSAPs is a flat, equal share. Increased GIS capability in the state can propel During the last year, KOHS has realized significant In response to a question from Senator McDaniel, state government and the private sector to new operational savings. The Board’s administrative fund Mr. Sunseri replied that, statewide, emergency texting heights, in terms of profits, savings and security. GIS finished fiscal year 2018 well under budget, and is in has been highly beneficial. When a 911 operator texts is far more than points on a map. GIS creates the such a sound financial position, that it can provide the a caller after a hang-up, the response rate has been opportunity to share layer upon layer of information first round of matching funds for the federal grant. greater than when they call. to an easy-to-interpret manner that gives users the The passage of 2016 HB 585 established a Representative Riggs commented that there opportunity to critically analyze multiple data points, new method of collecting 911 fees from prepaid should be consequences for the people who misused identify trends and determine courses of action based cellular customers. While most people (2.7 million the 911 funds. He also commented that other states on accurate, real-time information. subscribers) pay a 70-cent-per-month 911 fee along have 90 percent fewer PSAPs than Kentucky and that Mr. Mike Sunseri, Deputy Executive Director with their monthly cell phone bill, more than a having 115 PSAPs is costly. He suggested that a task of KOHS, told the Committee that no matter what half-million people have pay-as-you-go, or prepaid, force or subcommittee be formed to look into the type of phone people have or where they are in the wireless plans. For prepaid wireless customers, 93 efficient distribution of PSAPs. United States, dialing 911 connects people in need cents is collected by retailers at the point-of-sale for In response to a question from Representative with telecommunicators—first responders ready to each prepaid wireless transaction—either the initial Riggs, Mr. Sunseri said that there have been no offer timely and professional assistance, whether that sale or adding minutes to an existing account. The requests to merge PSAPS since July 2016 despite be a police, fire or medical response. In a world where new prepaid collection model went into effect in a $200,000 incentive in 2016 HB 585 which was seconds can literally mean the difference between life January, 2017. In the first full year of the program, increased from $100,000. and death, it is vitally important that Kentucky has Kentucky collected $9 million in prepaid 911 fees. Representative Koenig said that the General the best possible emergency response infrastructure. Because 95 cents out of each dollar collected in 911 Assembly should look into the possibility of taxing Kentucky’s 911 system is at a critical crossroads. fees goes right back to Kentucky’s 115 certified call smart phones, and a cost analysis should be performed Last year, the Governor issued an executive order centers, this new prepaid program led to a record for PSAP operations at current levels and various giving KOHS daily oversight and management of the amount of funding for PSAPs, many of which are other numbers of PSAPs at less than the present 115. 911 Services Board. The General Assembly codified, struggling with decreasing revenues from landline In response to a question from Representative in large part, the executive order with the passage customers. Receipts totaled just under $30 million in Lee, Mr. Sunseri stated that grant money was spent of HB 424 this past legislative session. Since taking FY 18. This compares to revenues of $26.8 million in on a technical consultant which was never completed. over daily operations in May of 2017, KOHS has FY 16. No documentation could be found regarding the taken aggressive action to strengthen the board’s As Kentucky moves toward NG911, it will work. Some staff salaries were also charged to the operational foundation. For example, KOHS enlisted require PSAPs to utilize more technology to keep grant contrary to law. the State Auditor to do a four-year audit of the board’s pace, which has a price tag. One of the benefits of In response to another question from administrative fund as the past board was behind on NG911 is that, once a statewide network is created, Representative Lee, Mr. Sunseri said there are seven its statutory requirement of auditing the books every all participating call centers will be connected, much members on the board and three staff members and two years. The audit revealed the past board had like computer workstations on a business network. So that the board derives operational efficiency from its improperly spend more than $250,000 from a fund if a natural disaster were to strike and a call center location within KOHS offices. dedicated by statute to be used exclusively for 911 lost the ability to take calls, all 911 call traffic could be In response to a third question from call center grants. Once KOHS learned of the issue, instantly switched over to a neighboring call center, Representative Lee, Mr. Holiday said that up-to-date Director Holiday took immediate action and repaid or even one on the other side of the state. Adopting GIS maps decrease response time, and decreasing the grant fund out of the Board’s administrative fund. NG911 technology will not be an easy task for many. response time means probably saving more lives. As Kentucky’s 115 certified 911 call centers work Each PSAP will need to have its electronic mapping Each community needs to regularly update its GIS toward adopting Next Generation 911 (NG 911) updated on a regular basis by GIS professionals. maps. The department is working toward quantifying technology, every penny counts. So it is critical that NG911 simply cannot work without accurate GIS the statewide costs for doing so. as many dollars flow to local call centers as possible. data, so this will need to be a major focus of Kentucky’s Chairman Rothenburger shared an example of For the last ten years, 911 call centers, also new statewide NG911 plan. how accurate mapping of parkland covering multiple known as public safety answering points (PSAPs), In response to a question from Representative fire districts could shorten response times. have been looking for guidance on how to move Fleming, Mr. Sunseri said he did not have statewide Senator Robinson commended Director Holiday from antiquated, voice-only technology to NG911 figures of what it would cost to fully bring all the for his military service and his work with KOHS. technologies. While a copper-wired based analog GIS systems up to date, but that it costs the City of In response to a question from Representative system can only carry voice data NG911 uses internet- Owensboro $8,000 per month to maintain its GIS. Imes, Mr. Sunseri said that some areas do have based digital networks to allow 911 call centers to In response to another question from challenges with cell service. For example, certain receive and send texts, photos, video and other data. Representative Fleming, Mr. Sunseri stated that areas of Perry County do not have cellular coverage. The federal government is investing almost moving forward, there has never been greater accuracy Service providers do look at costs versus benefits, and $110 million in a new grant to help states adopt on cell phones in terms of fixing a person’s location in equipment is expensive. Ensuring cell phone coverage NG911 equipment and operations, and Kentucky an emergency. Local governments and their related is definitely a challenge. now stands poised to receive $1.7 million from that PSAPs have the responsibility of ensuring the GIS FirstNet Program Implementation from grant. However, the project requires a 40 percent systems they use are accurate and updated regularly. AT&T local match. With Kentucky’s own contribution, the Representative Fleming commented that Mr. Ehrin Ehlert, Field Operations Director combined project would total nearly $3 million. there should be a coordinated effort between fire for First Responder Network Authority, told After the grant was announced, a letter was sent departments, police, and local officials to find out the the Committee that the FirstNet Program is an to all 115 certified PSAP directors to seek their input total cost for GIS. independent federal agency charged with deploying

THE KENTUCKY GENERAL ASSEMBLY 33 a Public Safety Broadband Network. FirstNet became routed differently than citizen cellular traffic. Public Breaking down the stigma for behavioral health will law February 22, 2012. The FirstNet board has 15 safety communications devices are registered with allow the firefighters to get the treatment they need members with industry and public backgrounds. Each FirstNet to facilitate that. In addition to the $7 billion to continue their careers and enjoy their retirement. governor appoints one single point of contact (SPOC) that FirstNet and the government allocated, AT&T is The IAFF developed an online behavioral health and governing body to represent the state’s interest allocating $40 billion not only to improve the network class for firefighters, developed peer programs and to FirstNet. The 42 member Public Safety Advisory for public safety and to help the citizens that public curriculum, worked on legislation and partnered with Committee (PSAC) advises FirstNet on public safety safety serves. a behavioral health provider to offer treatment. intergovernmental matters. Seven billion dollars was In response to another question from Twenty-two percent of firefighters probably authorized to build the FirstNet network, funded by Representative Rothenburger, Mr. Ehlert said the experience clinically-diagnosable PTSD sometime spectrum auctions through 2022. The band class is time line includes a five year build-out plan with a 25 in their career and many more suffer the symptoms 14, and 20MHz of bandwidth has been dedicated to year contract. of post-traumatic stress. Every firefighter probably public safety in the prime upper 700 MHz frequency Firefighter Post-Traumatic Stress Disorder suffers symptoms of post-traumatic stress. Only range which is an advantageous frequency range. Mr. Joe Baer, President of the Kentucky a small percentage receives a clinical diagnosis of Regarding FirstNet request for proposals, the Professional Firefighters, told the Committee that PTSD. There are many valid and reliable psychometric Middle Class Tax Relief and Job Creation Act requires firefighters’ cumulative occupational exposure to assessments that can be used to diagnose PTSD and “open, transparent, and competitive request for traumatic events far exceeds civilians’ exposure. determine whether or not it is a result of on-the-job proposals to private sector entities for the purposes The most common number of traumatic events exposure. PTSD is not something that someone can of building, operating, and maintaining the network.” Americans will experience in their lifetime is three. simply claim. The Act also establishes a public/private partnership The number of traumatic event firefighters will There is a cumulative effect to PTSD. Sometimes to deliver the best possible network solution for the routinely encounter on a single call is four. The firefighters are asked to identify one incident or public safety community. majority of career firefighters work a minimum of 20 exposure that caused the PTSD which can be difficult FirstNet’s journey began with the 9/11 attack years. to determine. Sometimes there can be one particular in 2001, where radio communication challenges The kinds of traumatic events that firefighters incident they can point to as a cause. Over the course impacted responding law enforcement, fire, and encounter include: structural fires, multi-causality of their career, symptomology can begin to occur EMS. In 2004, the 9/11 Commission Report accidents, natural disasters, chemical or biological with other life events. recommended national radio spectrum for public exposures, suicide of co-worker or civilian, terrorist Why is PTSD talked about more often now than safety purposes. Public safety united to advocate for attacks, life threatening events involving children, in the past? As with any medical condition, diagnoses a broadband network. In 2012, FirstNet was created. and large-scale catastrophic events. get better with time. Psychology is a fairly new science. From 2012 to 2015, there was outreach to the public Research says that approximately 22 percent of PTSD has been there, but professionals are now better safety community and Governors identify SPOCs firefighters will meet full diagnostic criteria for PTSD able to diagnose and treat it. for FirstNet. In 2016 and 2017, there were network at some point in their career. Between seven and 11 The Department of Veterans Affairs has request for proposals, a partnership award to AT&T, percent of firefighters suffer from clinical depression. spent millions of dollars researching treatments and delivery of state plans. From 2018 through 2022, Combat veterans with PTSD are six times more likely and concluded that there are multiple effective there will be nationwide expansion and buildout of to commit suicide. Many firefighters consider suicide evidence-based treatments for PTSD. Sixty percent Band 14 for the Public Safety Broadband Network. at some point in their career—46.8 percent have had of those receiving an evidence based treatment FirstNet represents the First Responder Network suicidal ideation, 19.2 percent have made suicidal report symptom improvement, with 40 percent no Authority organization, which was established to plans, and 15.5 percent have made suicidal attempts. longer meeting PTSD diagnostic criteria at the end of deliver the nation’s public safety broadband network, The National Broadcasting Company (NBC) treatment. Most patients report a return to functional oversee the Network contract with AT&T, consult with collaborated with the International Association status which is important because a preponderance the public safety community to ensure its voice and of Firefighters (IAFF) on a national survey, which of evidence indicates PTSD is treatable as opposed to needs are heard, and drive public safety innovation explored behavioral health concerns in the fire being a chronic condition. for the Network. FirstNet also represents the FirstNet service. Nearly 7,000 IAFF members responded, and If mental health professionals are aware that there network and services built with AT&T, whose key over 75 percent report stress of the job contributes to are certain events that can create long-lasting effects, features include dedicated connection with priority unresolved emotional issues. It is important to note they can intervene and begin treatment and forestall a and preemption over a secure and reliable network. that the survey was not a scientific study. clinical diagnosis. Firefighters tend to have a delayed FirstNet is a public agency for public safety There were several behaviors identified in response. While many studies occur after major by public safety. It exists because public safety the survey that firefighters report are a result of the incidents, mental health professionals are looking at organizations wanted FirstNet to exist and to be work-related stress and Mr. Baer noted the group’s everyday wear and tear. Life changes can change how available for their use. FirstNet continues to seek educational efforts toward de-stigmatizing the firefighters respond to stressful exposures. In major input from public safety organizations on a daily basis necessity of seeking psychological help. incidences, there can be a two to ten year delay in a to improve the network so that more crimes can be Most firefighters will not receive a PTSD firefighter’s presentation of symptoms. This is thought solved and more lives can be saved. diagnosis. Of the total 459 patients treated at the IAFF to be because of the perceived stigma of treatment In response to a question from Representative Center of Excellence (COE) since it opened, 273 were and a delay in seeking treatment. King, Mr. Ehlert said that Derek Nesselrode, Kentucky not admitted with a PTSD diagnosis. Furthermore, of Legislation for presumption is so important State Police, is the SPOC for Kentucky. the five potential PTSD cases from Kentucky treated because if PTSD can be acknowledged, accepted and In response to a question from Representative at COE since it opened, only three were diagnosed treated without having to fight for treatment, prove Moffett, Mr. Ehlert said that FirstNet seeks to bring PTSD cases. and justify a need, secondary and betrayal trauma can public safety’s GIS network into the system in the best Dr. Kerry Ramella, with the IAFF Advisory actually be minimized and stigma can be reduced for and non-duplicative manner. Committee for the Center of Excellence for early intervention. Mr. Eric Flannery, Principal Consultant for Behavioral Health Treatment and Recovery, told the People have to fight claims, have to find AT&T’s FirstNet Program, said that there is little Committee that firefighters can experience multiple attorneys, and find providers who are skilled to overlap needed from NextGen 911. traumatic exposures each shift over the course of render the treatment that they need. Firefighters are In response to a question from Representative their careers. The IAFF represents over 313,000 using their own money and leave time which make Rothenburger, Mr. Ehlert stated that the public safety professional firefighters in the U.S. and Canada. For recovery challenging. Sometimes in treatment, broadband network has access to existing cellular the last several years, behavioral health concerns and the firefighter must be removed from the stressful communication towers. Public safety cellular traffic is solutions have become the number one initiative. environment. They need time off, or placement in a

34 2018 Interim LEGISLATIVE RECORD non-operational position. These factors can inhibit injuries are just as important as physical injuries. Guests: Dr. Robert L. Jackson, Murray State progress in treatment. In response to a question from Representative University Interim President; Brandi Harless, Mayor In conclusion, epidemiological and clinical Riggs, Mr. Baer said that most employers were self- of Paducah; Sandra K. Dunahoo, Commissioner, assessment studies clearly document that firefighters insured and that the benefits vary. While some Department of Local Government; Amy Barnes, are exposed to trauma at higher levels in their work. employer assistance programs are effective, some are Executive Director, Office of Grants; Will Rich, Data also clearly shows that firefighters are at increased not. The programs of which he had experience were Attorney; Mrs. Jewelee Romine; Mr. Tyler Romine; risk of developing PTSD. The current workers’ not beneficial for firefighters. Dr. Ramella noted that Carla Pobst; Mary Hammond, Executive Director, compensation system places an enormous burden on EAPs are not designed for the firefighter community. Paducah Convention & Visitor’s Bureau; Hank an individual firefighter who is diagnosed with PTSD Mrs. Areaux responded that with a presumption Phillips, President and CEO of the Kentucky Travel from a work related exposure. Presumption of PTSD status, the firefighter could take time off work to Industry Association. in the fire service is becoming accepted throughout obtain the necessary treatment without having to LRC Staff: Jennifer Hays, Katy Jenkins, and the US and Canada, as well as within the mental schedule around a work schedule treatment and Chase O’Dell. health provider community. possibly compounding existing trauma. Welcome and Opening Remarks from Paducah Ms. Valerie Areaux, a therapist with Bluegrass In response to a question from Representative Brandi Harless, Mayor of Paducah, welcomed Family Therapy, told the Committee that she currently Meredith, Mr. Baer replied that there has been an members to Paducah and made her opening remarks. treats seven firefighters with PTSD, three of whom effort to include PTSD awareness training within Welcome and Opening Remarks from Murray presented with suicidal ideation, and all of whom had the Firefighters Foundation Program Fund basic and State University exhausted their employee assistance program (EAP) continuing education training. Dr. Robert L. Jackson, Murray State University therapy sessions before seeking her services. Being In regard to another question from Interim President, welcomed members to the Paducah out of the network, the firefighters are directly paying Representative Meredith, Mr. Baer said the difference regional campus of Murray State University and made for her service. In 2017, she treated four firefighters between PTSD Presumption states and PTSD Benefit his opening remarks. with PTSD, so the number of firefighters diagnosed Eligibility states, is the assumption that mental Discussion of Tourism in Western Kentucky with PTSD is increasing. She reaffirmed Dr. Ramella’s injuries are the same as physical injuries. Hank Phillips, President and CEO of the statement that with skilled intervention, the PTSD Representative Meredith asked that the volunteer Kentucky Travel Industry Association, and Mary symptomology can resolve, and the firefighters can firefighters not be left out. Hammond, Executive Director, Paducah Convention return to work with reasonable mental health. Representative Flood stated that she would & Visitor’s Bureau, discussed tourism in western Typically firefighters are referred to her through work with the chairman and the firefighters to get Kentucky. peer support intervention, or after the exhaustion of presumption legislation. Mr. Phillips presented the Kentucky Economic EAP benefits. She noted common symptoms patients In response to a question from Senator Alvarado, Engine Award to McCracken County. exhibit related to PTSD which includes avoidance of Ms. Terry said there was some movement to partner Mr. Phillips testified that Kentucky’s travel triggering stimuli that can affect job performance. with the VA. and tourism industry is a $15 billion industry that Ms. Areaux is collaborating with the local union In response to another question from Senator provides over 196,000 jobs. Tourism in McCracken president and the Lexington Fire Department to Alvarado, Dr. Ramella replied that any health care County has an economic impact of more than $367 develop a tiered approach to treating PTSD where the professional can make a PSTD diagnosis. million; tourism supports 3,000 jobs. groups hope to provide education to all members of In response to a question from Representative Mary Hammond testified that tourism and the fire department and their families, to offer a bi- Koenig. Dr. Ramella said peer support is used to help economic development go hand-in-hand. monthly peer support open meeting for firefighters with trauma before it progresses to PTSD. Paducah is a UNESCO Creative City. UNESCO and their families, to expand one-on-one peer support Representative Fleming commented that he is Creative Cities are built on culture, creativity, to firefighters who request it, to provide access to interested in doing something similar to 2018 HB and innovation. Paducah follows the sustainable qualified therapists and to provide referrals to the 68 with the firefighters. He also said that the EAP development goals of the UNESCO Creative Cities IAFF Recovery Center in Maryland. She hopes that services compensation rates needed to be addressed. program. the legislature will support firefighters’ psychological Representative Rothenburger stated that he was Discussion of Air Ambulances health. fully supportive of legislation that will help emergency Jewelee Romine, Tyler Romine, and Carla Pobst Ms. Jo Terry told the Committee that her services providers. discussed air ambulances. husband, a retired firefighter, committed suicide five There being no further business, the meeting Mr. Romine testified that he and Mrs. Romine years after he retired. He suffered from PTSD and did was adjourned at 12:15 p.m. received a bill from Rocky Mountain Holdings for not know there was treatment available specifically for INTERIM JOINT COMMITTEE ON $64,999 a few months after their son’s air ambulance PTSD. She wanted to bring a face to PTSD and showed flight. Mr. Romine stated that a few months later a video of her husband at his retirement wherein he APPROPRIATIONS AND REVENUE Anthem Blue Cross Blue Shield sent the family a talked about his experiences as a firefighter. Minutes of the 4th Meeting $10,000 check to pay to Rocky Mountain Holdings. He had himself admitted to the University of of the 2018 Interim Rocky Mountain Holdings filed an appeal after September 27, 2018 Cincinnati Medical Center’s psychiatric unit. Once Anthem Blue Cross Blue Shield only offered to pay out of the unit, he receive intensive out-patient Call to Order and Roll Call $10,000. Anthem declined the appeal because it did therapy—three hours a day for four days a week as he The 4th meeting of the Interim Joint Committee not have a contract with Rocky Mountain Holdings. tried to balance being a husband, father, and work all on Appropriations and Revenue was held on Thursday, The Romines filed an appeal that was also declined at the same time. During counseling sessions, persons September 27, 2018, at 1:00 PM CST, in Room 143 of and, thus, they have a $54,000 bill. with substance abuse problems were present and he the Crisp Center on the Paducah Campus of Murray Carla Pobst testified that Rocky Mountain ended up counseling them about how to change. State University. Representative Steven Rudy, Chair, Holdings billed her for $59,999 after her daughter’s Unbeknownst to her, this was the wrong counseling called the meeting to order, and the secretary called air ambulance flight. Anthem Blue Cross Blue Shield setting for her husband and she indicated that she felt the roll. sent her a check for $18,148.51, which she then sent let down by the services. Present were: to Rocky Mountain Holdings. She was told that she The best possible care through workers Members: Representative Steven Rudy, Co- would owe $41,850.49. compensation, through health benefits, or any means Chair; Senators Danny Carroll, David P. Givens, Stan Ms. Pobst testified that there is no in-network should be provided to the first responders. Ms. Terry Humphries, Dennis Parrett, and Brandon Smith; provider of air ambulance flights in Kentucky. Air then read a portion of her husband’s final note. Representatives Matt Castlen, Ken Fleming, Suzanne ambulance flights are not regulated like health vehicle Representative Riggs commented that mental Miles, Jason Nemes, Jody Richards, Jim Stewart III, ambulances. James Tipton, Russell Webber, and Jill York. THE KENTUCKY GENERAL ASSEMBLY 35 Senator Humphries stated that there is no simple There being no further business, the meeting Luther Carson Performing Arts Center to Paducah. fix for the air ambulance issue. was adjourned. Overview of Processes that Address Blighted Senator Parrett said that the legislative body Areas and Transformation toward an Artist needs to address the cost of air ambulances and when INTERIM JOINT COMMITTEE ON Community they can fly patients. Ms. Tracy presented a video demonstrating In response to questions from Senator Carroll, APPROPRIATIONS AND REVENUE how Paducah’s Lower Town was transformed from a Mr. Romine testified that purchasing an area provider’s Budget Review Subcommittee on Economic rundown area to a thriving artistic community. insurance would not have helped him because that Development, Tourism, and Environmental Overview of Tourism Industry Impacts to particular company was not used. The company that Protection Entrepreneurial Businesses and Companies flew him was based out of Indiana. The issue stemmed Minutes of the 2nd Meeting Mr. Phillips spoke on the impact of tourism on from not being made aware that his flight would not of the 2018 Interim local economies. September 27, 2018 be insured beforehand. Ms. Pobst testified that there In response to questions from Senator Clark, are no in-network air evac providers in Kentucky. Call to Order and Roll Call Mr. Phillips said that, for every $1 Kentucky spends She did not know about insurance for air ambulance The 2nd meeting of the Budget Review on tourism advertising, $150 comes back into the flights until after her flight. Subcommittee on Economic Development, Tourism, economy. The one percent restaurant tax that fourth In response to a question from Senator Smith, and Environmental Protection of the Interim Joint and fifth class cities are allowed to levy for tourism Mr. Romine stated that his family was flown in an Committee on Appropriations and Revenue was purposes generates about $12 million per year. Mr. airplane. Senator Smith said that he was shocked by held on Thursday, September 27, 2018, at 10:00 AM Phillips stated that he and his organization were the bill of $64,000. CDT, in Room 131 of the Paducah Campus of Murray not able to support recently proposed legislation Representative Rowland stated that the Banking State University, 4430 Sunset Avenue, Paducah, KY. that would give larger cities like Paducah the ability and Insurance committee has had several discussions Representative Jill York, Chair, called the meeting to to levy the restaurant tax. Mr. Phillips stated that on air ambulances. When other states have tried to order, and the secretary called the roll. the Kentucky Travel Industry Association is very regulate air ambulances, they have sought protection Present were: interested in discussions on the topic of expanded under the Federal Aviation Administration (FAA). Members: Representative Jill York, Co-Chair; restaurant tax. States need the ability to regulate air ambulances, but Senator Perry B. Clark; Representatives Bart Rowland There being no further business, the meeting that will take federal action. Representative Rowland and Steven Rudy. was adjourned at 12:06 PM. said that, on August 15, 2018, Anthem Blue Cross Guests: Mary Hammond, Executive Director, Blue Shield went into contract with Air Evac and Paducah-McCracken County Convention & Visitors Rocky Mountain Holdings. Bureau; Brandi Harless, Mayor, City of Paducah; INTERIM JOINT COMMITTEE ON Discussion of TVA In-Lieu-Of Taxes Tammara Tracy, Director, Paducah City Planning TOURISM, SMALL BUSINESS, AND Sandra K. Dunahoo, Commissioner, Department; Hank Phillips, Kentucky Travel Industry Association; and Frank Bennett, Chief Executive INFORMATION TECHNOLOGY Department of Local Government, Amy Barnes, Minutes of the 4th Meeting Executive Director, Office of Grants, and Will Rich, Officer (CEO), National Quilt Museum. LRC Staff: Nick Peak and Benjamin Thompson. of the 2018 Interim Attorney, discussed TVA In-Lieu-Of Taxes. September 21, 2018 Overview of the Many Tourism Opportunities Commissioner Dunahoo stated that many Call to Order and Roll Call communities struggle to match federal funds from in Paducah-McCracken County and Benefits of UNESCO Designation The 4th meeting of the Interim Joint Committee the Department of Local Government (DLG). on Tourism, Small Business, and Information Commissioner Dunahoo said that there were Ms. Hammond summarized the tourism prospects in Paducah and spoke of the tourism and Technology was held on Thursday, September 20, 39 counties eligible to participate in the set aside 2018, at 10:00 AM, in Covington, KY. Representative program. On September 11, 2018, DLG sent copies cultural benefits of being designated a United Nations Educational, Scientific and Cultural Organization Diane St. Onge, Chair, called the meeting to order, of the application for the set aside program to all and the secretary called the roll. 39 counties eligible to participate. The deadline for (UNESCO) Creative City. In response to a question from Chair York, Ms. Present were: counties to respond is November 9. The account is Members: Senator Alice Forgy Kerr, Co-Chair; not yet fully funded. Hammond said that it would benefit the region if Paducah pooled its resources with other cities like Representatives Diane St. Onge, Co-Chair; Senators In response to a question from Representative Perry B. Clark, Wil Schroder, and Mike Wilson; Miles, Amy Barnes testified that counties can Owensboro and Bowling Green to market jointly. In response to a question from Senator Clark, Representatives Larry Brown, George Brown Jr, partner with a neighboring county or a regional Jeffery Donohue, Chris Fugate, Robert Goforth, IDA. Some counties are in the process of creating Ms. Hammond stated that the region’s tourism funding from the state had decreased, making it more David Hale, Angie Hatton, Richard Heath, Kim King, an IDA. Commissioner Dunahoo stated that DLG Michael Meredith, Melinda Gibbons Prunty, Brandon does not intend to dictate how dollars are spent in difficult to effectively market jointly. Overview of City’s Perspective of the Impacts Reed, Bart Rowland, and Jill York. communities. Guests: Joseph Meyer, Mayor of Covington; In response to questions from Senator Carroll, of Tourism Mayor Harless spoke on the factors the city Brian Mefford, Executive Director of the Office of Commissioner Dunahoo said that DLG anticipates Entrepreneurship, Kentucky Cabinet for Economic the JFA contracts for 2018 to issue soon. DLG has takes into account when deciding what projects to undertake for tourism purposes. Development; John Putnam, Senior Program received applications from Allen, Ballard, Barren, Manager, Cincinnati Bell; Chuck Scheper, Chairman Carlisle, Grayson, Henderson, and Hickman counties. In response to questions from Senator Clark, Mayor Harless stated that Paducah’s Artist Relocation of the Board, Bexion Pharmaceuticals; Jeanne Schroer, In response to questions from Representative President/CEO, Catalytic Development Funding Rudy, Commissioner Dunahoo said that it would be Program (ARP) began in 2001, and there are only a few properties still available. Mayor Harless said Corporation of Northern Kentucky; Rosanna a local decision as to whether a county could bond Robertson, Program Manager of Chem-Biodefense, money it receives. There are a few counties struggling that the ARP allowed any artist to purchase a home in Lower Town for $1 if the home will be repaired U.S. Department of Homeland Security; Steve Dennis, to make bond payments. In-lieu-of taxes fluctuate. Director, Data Analytics Engine, Homeland Security Amy Barnes stated that she hopes to have many of the and revitalized. Ms. Hammond said there galleries, studios, and an art school in the rejuvenated Lower Advanced Research Projects Agency of the Science & checks to counties by the end of the year. Technology. List of Reports Received Since August, 2018 Town Arts District. In response to questions from Chair York, Ms. LRC Staff: Carla Montgomery, Chip Smith, Chairman Rudy reviewed a list of reports Candice Smith, and Emma Mills. received since the last meeting. Hammond said that Public Private Partnerships (P3s) have been instrumental in bringing venues like the Welcome to Covington

36 2018 Interim LEGISLATIVE RECORD Mayor Joseph Meyer welcomed the committee strengthening innovation driven entrepreneurial focused on how to apply smart city technology to to Covington with remarks about the development ecosystems. The REAP team in Kentucky includes the opioid crisis problem. Recognizing that text of Covington as an innovation hub in Northern members from Kentucky’s universities, the executive messaging is a preferred way of communicating, Mr. Kentucky. Mayor Meyer highlighted some programs branch of government, risk capital entities, Kentucky Putnam and Cincinnati Bell created a text messaging that Covington offers start-up businesses, such as corporations and regional entrepreneurs. The idea is service to provide people with essential information rent assistance, to foster a growing tech industry in to bring regional stakeholders together with research, about opioid related programs and topics. For non- the city. data, and mentoring from MIT to produce a plan life threatening situations, this program can send text Chairwoman St. Onge also extended a welcome for long-term, sustainable economic growth for the messages to participants about needle exchanges, to Rosanna Robertson, Program Manager of region. Mr. Mefford said the Office of Entrepreneurship family counseling, rehab or recovery services can Chem-Biodefense, U.S. Department of Homeland is excited and dedicated to supporting this program. all be addressed with this text messaging service in Security, and Steve Dennis, Director, Data Analytics Responding to a question about funding from partnership with a 24 hour traditional call center Engine, Homeland Security Advanced Research Representative St. Onge, Mr. Mefford indicated hotline. Projects Agency of the Science & Technology, there are two sources of revenue that have been This program uses artificial intelligence (AI) from Washington D.C. Ms. Robertson and Mr. allocated to these programs since 2001. The Office to process the contents of text messages and provide Dennis made brief remarks about the Department of Entrepreneurship gets about half of the revenue appropriate responses in order to alleviate the volume of Homeland Security’s interest in learning about through the Cabinet for Economic Development. of calls coming into the traditional call center, different initiatives involving the Fentanyl crisis and The other half comes from the Council for Post- however, operators at these call centers would have greater opioid epidemic. Secondary Education. These funds had previously the ability to further localize the messages going out MIT Regional Entrepreneurship been outsourced to third parties for entrepreneurial to participants. Mr. Putnam gave the example of a Brian Mefford, Executive Director of the Office planning, but as the new director and in order to participant asking for nearby needle exchanges in of Entrepreneurship for the Kentucky Cabinet for evaluate the effectiveness of investments, Mr. Mefford from Cincinnati, but maybe the phone has a Kentucky Economic Development updated the committee on says the Office of Entrepreneurship is assessing all of area code, the operator can ask where the participant some of the activities of the Office of Entrepreneurship. the funds that have been spent since 2001. is located to find the actual nearest location. The Mr. Mefford talked about the Kentucky Innovation In response to an additional question from service can also provide education videos about drug Network, a state-wide initiative established in 2001. Representative St. Onge, Mr. Mefford discussed the related topics for family members as well if requested While this initiative has worked well for the Northern MIT REAP process. Initially, MIT helps a team take from the participant. Kentucky area, the Office of Entrepreneurship is stock of regional strengths and weaknesses, though Cincinnati Bell Smart City Proactive Opioid taking requests for proposals from other regions of no REAP region has the same plan going forward. Mr. Crisis Project uses Google Analytics to evaluate what the Commonwealth on how to spend funds allocated Mefford indicated Kentucky’s REAP team may focus kind of sessions the project has experienced thus to the Kentucky Innovation Network. Mr. Mefford on rural entrepreneurship and connecting those far. With this information, the project can further indicated the Office of Entrepreneurship is interested entrepreneurs with established resources in other customize the AI for users. Mr. Putnam feels this can in investing in logistics and the infrastructure needed parts of the region. Participants on the REAP team provide people with safe and readily available options to allow entrepreneurs to not be tied to a physical are public and private entities. The endeavor is largely that may eventually lead to recovery. If an individual location. independently funded, though they are eliciting funds asks for treatment options, the program will ask the Mr. Mefford discussed mobilizing capital. to help fund the project. person a series of questions and based on the answers Access to capital is a real challenge for entrepreneurs In response to Representative Goforth, Mr. provided, the program will provide four treatment and small companies. The Office of Entrepreneurship Mefford indicated the amount of funding for the facilities with beds available that day. In addition, would like to improve access to capital by investing in Office of Entrepreneurship total to be about $10 after someone is discharged from a treatment facility, companies to de-risk follow-on capital at the earliest million. This budget helps fund programs such as the the program can provide support to that individual. stages of the company’s life. For example, companies Kentucky Innovation Network, the funds that match Daily surveys are sent participants to evaluate their that have received grants from Small Business federal funding to small businesses, and a high tech recovery progress. Survey questions ask if the person Innovation Research program (SBIR) through the construction pool. There are funds available for early took the day’s medicine, had spoken with a counselor, federal government are eligible for matching funds stage companies, previously known as the Kentucky or felt like using drugs. If a participant does not answer through the Office of Entrepreneurship. Mr. Mefford Enterprise Fund, the Kentucky Innovation Fund, and the survey or gives an answer that may indicate a asked the committee to re-evaluate the moratorium the Rural Commercialization Fund. Over time, those relapse, the program will send a message to the call on the Angel Investor Tax Credit. The moratorium funds coalesced under the Kentucky Science and center for a human to contact the participant to pass on the program has stifled the progress made with Technology Corporation (KSTC) in Lexington, one on preventative information to help prolong recovery. investors in the region. of the third parties running these programs. The text messaging system also has a mass text Mr. Mefford discussed the transfer of technologies Responding to a question from Representative messaging tool for providing pertinent information from Kentucky’s universities into the private sector. Donohue, Mr. Mefford indicated he did not have to all participants in a particular area. For example, The Office of Entrepreneurship is looking at how to detailed data about return on investment from if authorities are seeing an increase in overdoses due best take advantage of talent and innovative ideas companies given state moneys with him but would be to heroine laced with Fentanyl, a mass text message coming about of the university system in the state, as able to provide that to the representative at a later date. can be sent to all participants warning of higher than well as providing resources to students and graduates The Office of Entrepreneurship focuses on investing normal potency drugs are on the street. to help turn their ideas into businesses. The University in high-growth companies to create net new jobs in Responding to a question from Representative of Kentucky and the University of Louisville already Kentucky’s economy, which is the best investment in St. Onge about privacy, Mr. Putnam said this text provide resources to students and graduates and the these kinds of public dollars. messaging program uses the same privacy standards Office of Entrepreneurship would like to open those Cincinnati Bell Smart City Proactive Opioid as a call center would use. Participants also have an resources up to all of the state’s universities. Crisis Project opt-out option, which would cease any proactive Mr. Mefford discussed the MIT Regional John Putnam, Smart City Program Manager for responses from the program. Pending federal funding, Entrepreneurship Acceleration Program (MIT Cincinnati Bell for the Northern Kentucky Region, Cincinnati Bell intends to have this program running REAP). While the program is world-wide, Kentucky discussed the smart city concept. The essential by the end of 2018. is the first region in the United States to be selected criteria for a smart city is free public Wi-Fi available Bexion Pharmaceuticals to participate in this program. MIT REAP provides within the community intended to drive economic Chuck Scheper, Chairman of the Board of Bexion opportunities for communities to engage with development in such a community. With the rise Pharmaceuticals, discussed Bexion Pharmaceuticals MIT in an evidence based, practical approach to in smart city advancements, Mr. Putnam says he and how state funds have contributed to its success

THE KENTUCKY GENERAL ASSEMBLY 37 as a company. Bexion, formed in 2006, is a cancer mixed use spaces for businesses, residential and to Rosanna Robertson, Program Manager of treatment development company currently testing entertainment venues. Chem-Biodefense, U.S. Department of Homeland a drug to help cancer patients. The drug has had no Ms. Schroer talked about how the investments Security, and Steve Dennis, Director, Data Analytics serious adverse effects in clinical trials. While the of the Catalytic Fund attracted other investors into Engine, Homeland Security Advanced Research drug is showing promising signs, direct development the city. This led to more small business activity Projects Agency of the Science & Technology, of these types of treatments takes a lot of capital and in the area, which lead to larger investments in the from Washington D.C. Ms. Robertson and Mr. time. In 2006, Dr. Ray Takigiku, a former employee area, such as a $70 million office complex update. Dennis made brief remarks about the Department of Procter & Gamble, started Bexion to promote a With these updates came a robust job market. Ms. of Homeland Security’s interest in learning about new treatment being used at Children’s Hospital in Schroer emphasized investments like these do require different initiatives involving the Fentanyl crisis and Cincinnati. The company started out with a little bit the continued support of state funded economic greater opioid epidemic. of seed money from Children’s Hospital and received development programs such as the historic tax MIT Regional Entrepreneurship a Small Business Innovation Research (SBIR) grant to credit legislation, Kentucky’s TIF program and the Brian Mefford, Executive Director of the Office do further research. After being turned down by the industrial bond revenue financing program. However, of Entrepreneurship for the Kentucky Cabinet for state of Ohio for some matching funds, Mr. Scheper she emphasizes that for smaller investment projects Economic Development updated the committee on suggested applying for matching funds to the state like Hotel Covington, it is economic development some of the activities of the Office of Entrepreneurship. of Kentucky, which was approved but only if the programs like the historic tax credits that are most Mr. Mefford talked about the Kentucky Innovation company relocated to the state, which it did. important for this type of investment. Network, a state-wide initiative established in 2001. In 2008, the company applied again to the state There being no further business, the meeting While this initiative has worked well for the Northern of Kentucky for Kentucky Enterprise Fund. The state was adjourned at 11:19 a.m. Kentucky area, the Office of Entrepreneurship is approved $400,000.00 upon the contingent that taking requests for proposals from other regions of Bexion match the funds through another source. Mr. INTERIM JOINT COMMITTEE ON the Commonwealth on how to spend funds allocated Scheper became involved with Bexion at this point to the Kentucky Innovation Network. Mr. Mefford to help raise the money. The company raised $2.6 TOURISM, SMALL BUSINESS, AND indicated the Office of Entrepreneurship is interested million instead. In 2016, the Enterprise Fund invested INFORMATION TECHNOLOGY in investing in logistics and the infrastructure needed another $350,000.00. Minutes of the 4th Meeting to allow entrepreneurs to not be tied to a physical The company is about to start a Phase II trial of the 2018 Interim location. and a pediatric trial, 13 employees and 4 trial sites, September 20, 2018 Mr. Mefford discussed mobilizing capital. including the Markey Cancer Center in Lexington. Call to Order and Roll Call Access to capital is a real challenge for entrepreneurs Due to Bexion’s success, the company has received The 4th meeting of the Interim Joint Committee and small companies. The Office of Entrepreneurship additional grant matches from the state progress the on Tourism, Small Business, and Information would like to improve access to capital by investing in research. Mr. Scheper noted that if it were not for Technology was held on Thursday, September 20, companies to de-risk follow-on capital at the earliest that initial SBIR grant match from the state, Bexion 2018, at 10:00 AM, in Covington, KY. Representative stages of the company’s life. For example, companies probably would have remained in Ohio. Diane St. Onge, Chair, called the meeting to order, that have received grants from Small Business Responding to a question from Representative and the secretary called the roll. Innovation Research program (SBIR) through the St. Onge, Mr. Scheper indicated Phase II of the Present were: federal government are eligible for matching funds clinical trial may take about two years. Mr. Scheper Members: Senator Alice Forgy Kerr, Co-Chair; through the Office of Entrepreneurship. Mr. Mefford says Bexion plans to keep their Phase I B trial open Representatives Diane St. Onge, Co-Chair; Senators asked the committee to re-evaluate the moratorium for application of the drug to patients with other rare Perry B. Clark, Wil Schroder, and Mike Wilson; on the Angel Investor Tax Credit. The moratorium diseases. Representatives Larry Brown, George Brown Jr, on the program has stifled the progress made with Innovation District Jeffery Donohue, Chris Fugate, Robert Goforth, investors in the region. Jeanne Schroer, President/CEO of Catalytic David Hale, Angie Hatton, Richard Heath, Kim King, Mr. Mefford discussed the transfer of technologies Fund of Northern Kentucky, spoke to the committee Michael Meredith, Melinda Gibbons Prunty, Brandon from Kentucky’s universities into the private sector. about Covington’s developing Innovation District. Reed, Bart Rowland, and Jill York. The Office of Entrepreneurship is looking at how to An Innovation District is a location within a city Guests: Joseph Meyer, Mayor of Covington; best take advantage of talent and innovative ideas providing small businesses and start-up companies Brian Mefford, Executive Director of the Office of coming about of the university system in the state, as with access to services, mentoring, capital and Entrepreneurship, Kentucky Cabinet for Economic well as providing resources to students and graduates physical space. Ms. Schroer noted that in order for Development; John Putnam, Senior Program to help turn their ideas into businesses. The University these businesses to attract highly qualified college Manager, Cincinnati Bell; Chuck Scheper, Chairman of Kentucky and the University of Louisville already graduates, they need to be located in a quality of the Board, Bexion Pharmaceuticals; Jeanne Schroer, provide resources to students and graduates and the location within three miles of a city center. She President/CEO, Catalytic Development Funding Office of Entrepreneurship would like to open those believes that Covington has the best fundamentals Corporation of Northern Kentucky; Rosanna resources up to all of the state’s universities. for an Innovation District in the Commonwealth of Robertson, Program Manager of Chem-Biodefense, Mr. Mefford discussed the MIT Regional Kentucky, if not the entire Midwest. The Catalytic U.S. Department of Homeland Security; Steve Dennis, Entrepreneurship Acceleration Program (MIT Fund of Northern Kentucky was put together by Director, Data Analytics Engine, Homeland Security REAP). While the program is world-wide, Kentucky local investors due to the potential of the Northern Advanced Research Projects Agency of the Science & is the first region in the United States to be selected Kentucky area to attract place-based investments, job Technology. to participate in this program. MIT REAP provides expansion and economic development. The Catalytic LRC Staff: Carla Montgomery, Chip Smith, opportunities for communities to engage with Fund invests hard capital in projects and provides real Candice Smith, and Emma Mills. MIT in an evidence based, practical approach to estate transaction structuring expertise. With support Welcome to Covington strengthening innovation driven entrepreneurial from companies like Bexion Pharmaceuticals and a Mayor Joseph Meyer welcomed the committee ecosystems. The REAP team in Kentucky includes supportive local government, the fund has invested to Covington with remarks about the development members from Kentucky’s universities, the executive $4.7 million in selective real estate investments, of Covington as an innovation hub in Northern branch of government, risk capital entities, Kentucky which in turn has attracted more than $150 million Kentucky. Mayor Meyer highlighted some programs corporations and regional entrepreneurs. The idea is in total investment has been created in the Covington that Covington offers start-up businesses, such as to bring regional stakeholders together with research, area. The fund invested in the conversion of buildings rent assistance, to foster a growing tech industry in data, and mentoring from MIT to produce a plan that were generating no tax revenue to high-tech, the city. for long-term, sustainable economic growth for the Chairwoman St. Onge also extended a welcome

38 2018 Interim LEGISLATIVE RECORD region. Mr. Mefford said the Office of Entrepreneurship family counseling, rehab or recovery services can new treatment being used at Children’s Hospital in is excited and dedicated to supporting this program. all be addressed with this text messaging service in Cincinnati. The company started out with a little bit Responding to a question about funding from partnership with a 24 hour traditional call center of seed money from Children’s Hospital and received Representative St. Onge, Mr. Mefford indicated hotline. a Small Business Innovation Research (SBIR) grant to there are two sources of revenue that have been This program uses artificial intelligence (AI) do further research. After being turned down by the allocated to these programs since 2001. The Office to process the contents of text messages and provide state of Ohio for some matching funds, Mr. Scheper of Entrepreneurship gets about half of the revenue appropriate responses in order to alleviate the volume suggested applying for matching funds to the state through the Cabinet for Economic Development. of calls coming into the traditional call center, of Kentucky, which was approved but only if the The other half comes from the Council for Post- however, operators at these call centers would have company relocated to the state, which it did. Secondary Education. These funds had previously the ability to further localize the messages going out In 2008, the company applied again to the state been outsourced to third parties for entrepreneurial to participants. Mr. Putnam gave the example of a of Kentucky for Kentucky Enterprise Fund. The state planning, but as the new director and in order to participant asking for nearby needle exchanges in approved $400,000.00 upon the contingent that evaluate the effectiveness of investments, Mr. Mefford from Cincinnati, but maybe the phone has a Kentucky Bexion match the funds through another source. Mr. says the Office of Entrepreneurship is assessing all of area code, the operator can ask where the participant Scheper became involved with Bexion at this point the funds that have been spent since 2001. is located to find the actual nearest location. The to help raise the money. The company raised $2.6 In response to an additional question from service can also provide education videos about drug million instead. In 2016, the Enterprise Fund invested Representative St. Onge, Mr. Mefford discussed the related topics for family members as well if requested another $350,000.00. MIT REAP process. Initially, MIT helps a team take from the participant. The company is about to start a Phase II trial stock of regional strengths and weaknesses, though Cincinnati Bell Smart City Proactive Opioid and a pediatric trial, 13 employees and 4 trial sites, no REAP region has the same plan going forward. Mr. Crisis Project uses Google Analytics to evaluate what including the Markey Cancer Center in Lexington. Mefford indicated Kentucky’s REAP team may focus kind of sessions the project has experienced thus Due to Bexion’s success, the company has received on rural entrepreneurship and connecting those far. With this information, the project can further additional grant matches from the state progress the entrepreneurs with established resources in other customize the AI for users. Mr. Putnam feels this can research. Mr. Scheper noted that if it were not for parts of the region. Participants on the REAP team provide people with safe and readily available options that initial SBIR grant match from the state, Bexion are public and private entities. The endeavor is largely that may eventually lead to recovery. If an individual probably would have remained in Ohio. independently funded, though they are eliciting funds asks for treatment options, the program will ask the Responding to a question from Representative to help fund the project. person a series of questions and based on the answers St. Onge, Mr. Scheper indicated Phase II of the In response to Representative Goforth, Mr. provided, the program will provide four treatment clinical trial may take about two years. Mr. Scheper Mefford indicated the amount of funding for the facilities with beds available that day. In addition, says Bexion plans to keep their Phase I B trial open Office of Entrepreneurship total to be about $10 after someone is discharged from a treatment facility, for application of the drug to patients with other rare million. This budget helps fund programs such as the the program can provide support to that individual. diseases. Kentucky Innovation Network, the funds that match Daily surveys are sent participants to evaluate their Innovation District federal funding to small businesses, and a high tech recovery progress. Survey questions ask if the person Jeanne Schroer, President/CEO of Catalytic construction pool. There are funds available for early took the day’s medicine, had spoken with a counselor, Fund of Northern Kentucky, spoke to the committee stage companies, previously known as the Kentucky or felt like using drugs. If a participant does not answer about Covington’s developing Innovation District. Enterprise Fund, the Kentucky Innovation Fund, and the survey or gives an answer that may indicate a An Innovation District is a location within a city the Rural Commercialization Fund. Over time, those relapse, the program will send a message to the call providing small businesses and start-up companies funds coalesced under the Kentucky Science and center for a human to contact the participant to pass with access to services, mentoring, capital and Technology Corporation (KSTC) in Lexington, one on preventative information to help prolong recovery. physical space. Ms. Schroer noted that in order for of the third parties running these programs. The text messaging system also has a mass text these businesses to attract highly qualified college Responding to a question from Representative messaging tool for providing pertinent information graduates, they need to be located in a quality Donohue, Mr. Mefford indicated he did not have to all participants in a particular area. For example, location within three miles of a city center. She detailed data about return on investment from if authorities are seeing an increase in overdoses due believes that Covington has the best fundamentals companies given state moneys with him but would be to heroine laced with Fentanyl, a mass text message for an Innovation District in the Commonwealth of able to provide that to the representative at a later date. can be sent to all participants warning of higher than Kentucky, if not the entire Midwest. The Catalytic The Office of Entrepreneurship focuses on investing normal potency drugs are on the street. Fund of Northern Kentucky was put together by in high-growth companies to create net new jobs in Responding to a question from Representative local investors due to the potential of the Northern Kentucky’s economy, which is the best investment in St. Onge about privacy, Mr. Putnam said this text Kentucky area to attract place-based investments, job these kinds of public dollars. messaging program uses the same privacy standards expansion and economic development. The Catalytic Cincinnati Bell Smart City Proactive Opioid as a call center would use. Participants also have an Fund invests hard capital in projects and provides real Crisis Project opt-out option, which would cease any proactive estate transaction structuring expertise. With support John Putnam, Smart City Program Manager for responses from the program. Pending federal funding, from companies like Bexion Pharmaceuticals and a Cincinnati Bell for the Northern Kentucky Region, Cincinnati Bell intends to have this program running supportive local government, the fund has invested discussed the smart city concept. The essential by the end of 2018. $4.7 million in selective real estate investments, criteria for a smart city is free public Wi-Fi available Bexion Pharmaceuticals which in turn has attracted more than $150 million within the community intended to drive economic Chuck Scheper, Chairman of the Board of Bexion in total investment has been created in the Covington development in such a community. With the rise Pharmaceuticals, discussed Bexion Pharmaceuticals area. The fund invested in the conversion of buildings in smart city advancements, Mr. Putnam says he and how state funds have contributed to its success that were generating no tax revenue to high-tech, focused on how to apply smart city technology to as a company. Bexion, formed in 2006, is a cancer mixed use spaces for businesses, residential and the opioid crisis problem. Recognizing that text treatment development company currently testing entertainment venues. messaging is a preferred way of communicating, Mr. a drug to help cancer patients. The drug has had no Ms. Schroer talked about how the investments Putnam and Cincinnati Bell created a text messaging serious adverse effects in clinical trials. While the of the Catalytic Fund attracted other investors into service to provide people with essential information drug is showing promising signs, direct development the city. This led to more small business activity about opioid related programs and topics. For non- of these types of treatments takes a lot of capital and in the area, which lead to larger investments in the life threatening situations, this program can send text time. In 2006, Dr. Ray Takigiku, a former employee area, such as a $70 million office complex update. messages to participants about needle exchanges, of Procter & Gamble, started Bexion to promote a With these updates came a robust job market. Ms.

THE KENTUCKY GENERAL ASSEMBLY 39 Schroer emphasized investments like these do require and taxes collected. The bank franchise tax calculation and approve rate increases to protect consumers. the continued support of state funded economic used for Kentucky-based banks as compared to The department provides a long term care insurance development programs such as the historic tax multi-state banks. While the taxation formula consumer guide. credit legislation, Kentucky’s TIF program and the for multi-state banks is apportioned, those based David Dillon, Lewis & Ellis said LTCI is industrial bond revenue financing program. However, solely in Kentucky are calculated on 100 percent of relatively new. Early actuarial cost analyses were she emphasizes that for smaller investment projects payroll, property, and revenue. Surrounding states wrong for reasons including low interest rates, like Hotel Covington, it is economic development no longer use the franchise tax and use the corporate regulatory limitations on needed rate increases, programs like the historic tax credits that are most tax instead. Companies based in other states can decreasing mortality rates, and under estimation of important for this type of investment. buy Kentucky based banks and fund the purchase lapse rates and care costs. Corrections can be difficult There being no further business, the meeting with tax savings. Once a Kentucky-based bank is to overcome. Mr. Dillon reviewed financial data for was adjourned at 11:19 a.m. acquired, approximately 35 percent of employees the 15 LTCI insurance providers. are lost and bank branches are closed resulting in Mr. Dillon noted that changes in the Life INTERIM JOINT COMMITTEE ON payroll and property tax decreases. Multi-state banks and Health Guaranty Act caused a major impact will take advantage of the ability to transfer lending to the health insurance industry. The Penn Treaty BANKING AND INSURANCE activity to the state with the most advantageous liquidation made health insurers liable, even those Minutes of the 2nd Meeting tax requirements. Acquisition of Kentucky banks not in the LTCI market. Kentucky’s share of the of the 2018 Interim is accelerating resulting in reduced franchise taxes liability is approximately $30 million. Because of the September 25, 2018 collected along with other tax receipts. Kentucky has LTCI issues with first generation policies, 85 percent Call to Order and Roll Call lost approximately $665 million in capital over the of new policy sales are life and annuity hybrids. Mr. The 2nd meeting of the Interim Joint Committee past five years. Dillon reviewed rate increase data for Kentucky and on Banking and Insurance was held on Tuesday, Responding to Senator Seum’s questions, comparable states. Regardless of the rate increase September 25, 2018, at 10:00 AM, in Room 149 of the General Counsel Debra Stamper, KBA, said “franchise request by carriers, the average approval amount is Capitol Annex. Senator Tom Buford, Chair, called the tax” is an antiquated term that is still used. Banks are 25 percent. Mr. Dillon discussed regulatory, pricing, meeting to order, and the secretary called the roll. not franchised but are instead chartered. Banks pay and review approaches to rate increases. To achieve Present were: the franchise tax, not the corporate tax. more consistency within the National Association Members: Senator Tom Buford, Co-Chair; Senator Schickel said he has received much of Insurance Commissioners (NAIC), the long-term Senators Rick Girdler, Morgan McGarvey, Dennis feedback from locally owned banks. In response to pricing subgroup was created. Actuaries from all Parrett, Albert Robinson, John Schickel, and Dan his question, Mr. Cassady said the KBA will lobby the 50 states are currently developing a framework to “Malano” Seum; Representatives Joseph M. Fischer, 2019 General Assembly to convert to the corporate achieve greater transparency and predictability in the Adam Koenig, Stan Lee, Michael Meredith, Steve tax rate and will present this request at the upcoming review and approval of rate increase rates. Riggs, Dean Schamore, Wilson Stone, and Addia legislative Appropriations and Revenue Committee Tom Peterson, Executive Director of Kentucky Wuchner. meeting. Life and Health Insurance Guaranty Association Guests: Ballard Cassady, President and Chief In response to Senator McGarvey’s question, (KLHIGA), gave an overview of the agency. It was Executive Officer, Debra Stamper, Executive Vice Mr. Cassady explained that the franchise tax affects created by the legislature in 1978 and has been President and General Counsel, and John Cooper, locally owned banks. The smaller the bank the heavier amended several times to be more aligned with the Governmental Affairs Consultant, Kentuckythe burden. NAIC Life and Health Guarantee Association Model Bankers Association; Patrick O’Connor, Deputy Responding to Representative Koenig’s question, Act (Model Act). Since the early 1990s, KLHIGA has Commissioner, Kentucky Department of Insurance; John Cooper, Governmental Affairs Consultant, participated in approximately 50, primarily multi- David Dillon, Senior Vice President and Principal, KBA, said taxing net profits at corporate rate would state, insolvencies that have affected more than Lewis & Ellis; Tom Peterson, Executive Director, and incentivize from moving capital base offshore. Some 90,000 Kentucky residents. Kentucky liabilities have Kevin Griffith, General Counsel, Kentucky Life and areas are falling through the cracks and need further been approximately $400 million. The overall net Health Insurance Guaranty Association; Lawrence examination, such as internet based lending. Most cost was approximately $94 million. When a multi- Ford, Senior Director of Government Relations, constituents would rather have a community bank. state insolvency occurs KLHIGA works through the Anthem Blue Cross and Blue Shield; and Rob Hardy, In response to Representative Rigg’s question National Organization of Life and Health Insurance Executive Vice President and General Counsel, Mr. Cassady said the original intent of the franchise Guaranty Association (NOLHGA). NOLHGA helps Investors Heritage Life Insurance Company. tax in 1995 was to apportion revenue of multi-state guaranty associations fulfill their statutory obligations LRC Staff: Sean Donaldson, Jessica Sharpe, and banks. At that time, most states had the franchise to provide continued protection for respective policy Dawn Johnson. tax. Ms. Stamper explained that financial institutions holders. When an insolvency occurs, a task force Approval of Minutes were more limited so the taxation structure was of representative guaranty associations of states A motion by Senator Schickel and second by different. This is the reason most states have switched most affected is established. Accountants, attorneys, Senator Robinson to approve the minutes of the to a corporate tax. Representative Riggs suggested and actuaries advise the task force throughout August 28, 2018, meeting carried by voice vote. the legislature will want to know more about tax the liquidation process. The KLHIGA is not in a Bank Franchise Tax deductions and tax credits compared to other position to make a recommendation or express an Ballard Cassady, Kentucky Bankers Association corporations. opinion on matters associated with the NAIC’s recent (KBA), explained that Kentucky’s bank franchise tax Long-Term Care Insurance in Kentucky Health Maintenance Organization amendments to rate is on average 92 percent higher than any other Patrick O’Connor, Deputy Commissioner, the Model Act. It can only observe that Kentucky corporate tax rate in the state. Corporate tax reforms Kentucky Department of Insurance explained has traditionally sought to keep the statutes in line enacted by the 2018 General Assembly increased the purpose of long-term care insurance (LTCI) with the Model Act which provides uniformity of the taxation gap. Mr. Cassady provided a historical insurance is to fund LTCI costs and to protect assets consumer protection among states. overview of the state’s bank taxation disparity and an individual wants to bequeath to family. LTCI Kevin Griffith, General Counsel, KLHIGA, said noted the effects of excessive taxation on local banks provisions and types of plans available. As of 2017, insurance companies are excluded from the federal and their communities. Kentucky banks have an average nursing home costs were $97,500 and assisted bankruptcy code. When an insurance company gets average effective tax rate of 13.3 percent, the highest living facilities average $49,000. As premiums escalate, into financial difficulty it is the charge of the insurance rate nationally and is of five states that still has the the potential value of LTCI exceeds premiums paid. commissioner where the insurance company is bank franchise tax. Data provided by three CPA firms The number of LTCI carriers has decreased drastically. incorporated to take action. Penn Treaty Network comparing effective bank tax rates for Kentucky and The Department of Insurance is required to review America got into financial difficulties in the 1990s nearby states reflected Kentucky’s much higher rate

40 2018 Interim LEGISLATIVE RECORD and a corrective action plan was implemented in the term care insurance, face a major impact. Given the that youth of color are seen as approximately 3 years early 2000s. It was permitted to continue business potential impact it would be appropriate to provide older. This may be a contributing factor as to why the and sell under this plan until January 2009 when the an exemption for the small life insurance company non-school related charges are higher. company went into receivership. Stakeholders fought segment. This would avoid a disproportionate effect Pastor Edward Palmer, Senior Pastor at the Sign liquidation and the Pennsylvania Commonwealth on small life insurance companies. The exemption of the Dove Church, added that, during his work with Court denied the petition and directed the would have minimal impact to the guaranty the Louisville Metro Police Department, officers said establishment of a functional rehabilitation plan. assessment process. they view predominately Caucasian and affluent areas By July 2016, Penn Treaty failed and a liquidation There being no further business, the meeting differently from minority and poverty stricken areas. petition was approved March 1, 2017. Penn Treaty adjourned at 11:55 AM. This may also be a contributing factor to the higher reflects all of the problems with long-term care charges against African American youth. insurance industry from an actuarial perspective. As INTERIM JOINT COMMITTEE ON Ms. Bingham stated the trend continues a mono-line company, it had no profitable business with status offenses. Within status complaints, the to offset losses incurred under long term care only. It JUDICIARY disproportionality is greater in non-school related was ultimately underfunded by $2.7 billion. The risk Minutes of the 5th Meeting complaints. African American youth make up 15 profiles were misunderstood and shifted so much the of the 2018 Interim percent of school related complaints, but 19 percent October 5, 2018 only option was to increase premiums. Action should of non-school related complaints. Complaints against have been taken much earlier. The KLHIGA was Call to Order and Roll Call African American youth make up 22 percent of all called upon to protect 840 Kentucky residents. The The 5th meeting of the Interim Joint Committee complaints filed against Kentucky’s youth. African present liability is $30.6 million. on Judiciary was held on Friday, October 5, 2018, at American youth make up 16 percent of the diversion Lawrence Ford, Senior Director of Government 10:00 AM, in Room 171 of the Capitol Annex. Senator agreements and 29 percent of the no diversion Relations, Anthem Blue Cross and Blue Shield, Whitney Westerfield, Chair, called the meeting to agreement categories. Not being offered a diversion reviewed the guaranty process when a company is order, and the secretary called the roll. agreement is not considered a positive point of liquidated. Long term care insurance is defined as Present were: contact. African American youth make up 15 percent health insurance although very few health insurers Members: Senator Whitney Westerfield, Co- of successful diversions and 21 percent of unsuccessful write long term care insurance policies. However, Chair; Representative Joseph M. Fischer, Co-Chair; diversions. The Court Designated Worker Program when a long term care insurance insolvency occurs, Senators Danny Carroll, Perry B. Clark, Alice Forgy (CDW) handles all pre-adjudicated youth in regards 80 percent of the liability falls to health insurers. Kerr, John Schickel, Wil Schroder, Dan “Malano” to detention at intake. The CDW is the first point of This resulted in the NAIC developing a compromise Seum, and Robin L. Webb; Representatives McKenzie contact for law enforcement in determining if a youth among major life insurers, health insurers, and NAIC. Cantrell, Jeffery Donohue, Daniel Elliott, Angie should be released to a family member, to a program, Anthem did not have any liability when Penn Treaty Hatton, Joni L. Jenkins, Stan Lee, Chad McCoy, or if a judge needs to determine if a youth needs to was addressed. The agreement adopted by the NAIC Reginald Meeks, C. Wesley Morgan, Kimberly Poore be detained. African American youth made up 43 included a provision requiring HMOs be added to Moser, Jason Nemes, Brandon Reed, and Gerald percent of those detained at intake in 2017, and 37 the Guaranty Association fund, and long term care Watkins. percent in 2018. insolvencies being equally addressed by health and Guests: Laurie Dudgeon, Rachel Bingham, Ms. Bingham explained that detention criteria life insurers. Anthem supports the recommended Pastor Edward Palmer, Eric Clark, Elizabeth involve looking at the least restrictive placement amendments to the Model Act. It is fair, sustainable Caywood, Carey Cockerell, Jason Reynolds, John option for youth, based on what is available to them in and offers consumers greater protections and will Fitzpatrick, Eileen Recktenwald, Laela Kashan, and the community. Parents and family members are their result in greater confidence in insurance matters. Michelle Wang. first resource. Not all agencies that have bed space are In response to Representative Meredith’s LRC Staff: Katie Comstock, Dale Hardy, Matt willing to take youth who have charges against them. question, Mr. Griffith said that while damage has Trebelhorn, Breanna Miller, and Yvonne Beghtol. Transportation, location, and funding are all issues been done with the first long term care policies, the Approval of Minutes from September 7, 2018 of concern. Unless it is an absolute necessity, based market has done much to respond to the liabilities. It A motion to approve the minutes for on public safety, the goal is to not have the youth has moved to more hybrid products and standalone the September 7, 2018 meeting was made by placed in detention. Ms. Dudgeon added that law policies have become better rated. It would be difficult Representative Reed, seconded by Senator Schickel, enforcement are the primary source of transportation to segment types of insurance policies without and approved by voice vote. for the youth. Ms. Bingham continued by stating compromising consumer protection. Representative that transporting across county lines and the cost of Meredith expressed concern about ever increasing Disproportionate Minority Contact (DMC) reimbursement becomes an issue. insurance rates and health insurers subsidizing a Chairman Westerfield said that the statistics African American youthful offenders made up product that most consumers do not use. Mr. Dillon presented at a previous Juvenile Justice Oversight 49 percent of the referrals in 2017 and 60 percent in said that long term care has a mix of health and Council meeting regarding Disproportionate 2018. The office of Juvenile Justice and Delinquency life insurance elements. The new hybrid model is a Minority Contact (DMC) needed to be heard and that Prevention (OJJDP) reported Hardin, Fayette, more stable. There are good reasons to keep a private various agencies had been asked to present. Christian, and Jefferson County as the top four DMC market. After an introduction by Laurie Dudgeon, counties, with African American youth being the Rob Hardy, Executive Vice President and Director of the Administrative Office of the Courts majority of youthful offenders, in spite of being the General Counsel, Investors Heritage Life Insurance (AOC), and Rachel Bingham, Executive Officer of minority of their population. Company, provided background on the company. As Family and Juvenile Services, presented on DMC Ms. Dudgeon added that SB 200 dictates who is numerous other financial segments have experienced in Kentucky, with a focus on African American eligible for diversion, but whether or not it is successful difficulties under federal regulation, the insurance youth. In January through June of 2017, 25 percent lies on the CDW. Ms. Bingham indicated that lack of industry has remained solid because of the state of the complaints filed against youth were against transportation to appointments and access to services regulatory process along with the support of the African American youth, who make up 11 percent can lead to an unsuccessful diversion. Service access guaranty associations. Potentially, small insurance of Kentucky’s youth population. There was a slight that are appropriate for youth in the community is companies face significant impact by the changes in reduction in 2018 to 22 percent. From January to June another factor. As of October 5, 2018, 78 percent of the guaranty fund assessments. Long term care was of 2018, African American youth received 25 percent youth in detention in Jefferson County are African originally categorized as a health insurance product of the public complaints and 16 percent of the status American. and the guaranty association system was based on complaints, which includes truancy charges. Of those Pastor Palmer reviewed the success of SB 200. that. Small companies, none of whom write long public complaints, 29 percent are non-school related While SB 200 was successful among Caucasian youth, and 16 percent are school related. Research shows THE KENTUCKY GENERAL ASSEMBLY 41 it was not successful with African American youth. African American children exit in less than a month. connections. Research has shown that three or more Pastor Palmer believes the cause is due to doing This may be too soon, which suggests a deficiency of movements in the child welfare system puts one at different things for different children. He agrees with in-home service providers and/or relative placement a greater risk for Post-Traumatic Stress Disorder Chairman Westerfield that we need to figure out what support. The data also shows that African American (PTSD) than combat veterans. is causing these disparate outcomes. Pastor Palmer and bi-racial children experience longer lengths of Commissioner Clark continued with other advocated for a bill that allows for the collection stay in care. Deputy Commissioner Caywood stated DCBS strategies. Dedicated funding for continued of data to strategize about the best possible way to that African American and bi-racial children are implicit bias training, protection and permanency create the same positive outcome for all youth. Pastor more likely to be placed in more restrictive settings, staff, cultural humility training sessions, development Palmer believes this disproportionate data would be which is not good for a child’s development. African of implicit racial bias curriculum pilot program. the same across the country, not just in Kentucky. American children experience more placement Review of initial and ongoing training for all DCBS Changing the culture of the agencies who deal with moves, which leads to poor permanency placement staff. Right now the DCBS is at a record high of the minority children could be beneficial. outcomes. Based on the overall foster care population, number of children (9,700) in OOHC. Over 200 Ms. Bingham stated that the DMC data along the Relative Rate Index indicates the greatest disparity children have entered into DCBS care since July. Due with Chairman Westerfield’s leadership efforts has for African American children is that they are more to these record highs, social workers average 30 cases moved the AOC to make improvements and changes. likely to age out of care. While there is a downward a day. A child typically stays in the welfare system 35 Data from 2014 to 2017 shows that 60 percent of trending in the number of children who do age out months before being adopted, which is another all- those given diversion do not re-offend. This data was of care, reforms in juvenile justice needs to reach the time high for Kentucky. The FFPSA works towards shared with local community agency staff in an effort African American population so that they can receive safely preventing children from coming into the to get their input. One area determined to make the the same benefits, to avoid aging out of care. system by enabling services in the home. If the number most positive impact was an internal policy change Commissioner Clark stated that adoption, foster of children coming into care is lowered, caseloads will on appointment scheduling. Changes were made to care, and child welfare are a top priority for the CHFS. decrease, which leads to maintaining a workforce that the policy so that the youth and family can make The agency is appreciative of HB 1 and the Executive is trained and not burned out. With a manageable appointments at a time and date convenient for them, Branch Budget Bill, which offered the Department caseload, one has more time and resources to offer which has reduced the failure to appear statistics. The for Community Based Services additional funding the families and children can be placed in more AOC is also moving out of the downtown Jefferson and support. CHFS has reviewed the structure for permanent homes. The goal is to never reach these location and establishing locations across the county. child welfare to see where it can make improvements. record highs again, so that the program can be more More release options that cater to both male and A formal project management structure has been effective. female, and partnerships with African American created, which consists of nine workgroups that began community leaders to create programs and mentoring meeting monthly as of April 2018. In September, the Commissioner Carey Cockerell, Department of opportunities has also been initiated, such as Pastor workgroups came together to review their progress Juvenile Justice (DJJ), began by stating that the DJJ Farmer’s church community works program. and get feedback from each other. Family First is involved at the end of the process, when a child Ms. Dudgeon, addressed considerations of Prevention Services Act (FFPSA) is national child is presented for detention. The data presented was the Juvenile Justice Oversite Committee. The first welfare legislation that transforms how child welfare broken into four categories: 1) bookings; 2) probated is that no children under the age of 12 should be systems will be operated and funded. Previously, Title and probated/suspended commitments; 3) children charged, and should instead be referred to the 4 E funding was primarily for foster care, maintenance committed to the department; and 4) youthful Family Accountability, Intervention and Response payment, and adoption assistance payments, which offenders. (FAIR) Team. The second suggestion is mandatory encouraged children to enter OOHC. FFPSA changes Bookings show a 20 percent decrease between diversion of certain cases when the child has no prior that focus and puts Title E funding toward service and 2014 and 2017, with a projected decrease for 2018. adjudications. The third is to examine the criteria used support, to prevent children from entering OOHC. Bookings are not equitable by gender. Male bookings in determining when a youth is referred to circuit FFPSA also restricts the time in which children can decreased by 16.5 percent and female bookings courts. Taking a deeper look at the youthful offender enter congregate settings. While the FFPSA is not decreased by 32 percent. Decreases are not equitable statue may be a place to start. Pastor Palmer suggests mandatory until October 1, 2021, Kentucky is going by race. White youth decreased by 30.5 percent and making diversion mandatory by changing “may” to first. DCBS has an ongoing initiative to identify African Americans decreased by less than 1 percent. “shall” for all of those who are fully eligible. By putting and address racial disproportionality through The booking data does not include Jefferson County children in detention who are not a threat, Pastor race, community, and child welfare initiatives. because it operates its own detention center. While Palmer stated that we are creating worse children in Commissioner Clark would like to commend the African Americans represent only 7.4 percent of the end. Getting into the communities and building a courts in being the most dedicated partner in this the population, they represent 24 percent of those relationship, and compassion for these youth will help initiative. Examples of the efforts include: training booked. Three DMC counties identified in the keep them from going deeper into the system. Texas for staff, training for foster parents, referral sources, OJJDP data are Christian, Fayette, and Hardin. Each does not charge a youth as an adult unless the adult adequate court representation, timeliness for minority shows an over representation of African Americans has committed an egregious crime against a person. children, and diligent recruitment for foster homes bookings based on their population. The decrease After an introduction by Commissioner Eric that best match the needs of the foster children, with in bookings has largely impacted those 15 years of Clark, Cabinet for Health and Family Services focused, and intentional recruiting efforts for African age and under, showing a decrease of 34 percent for (CHFS) Department of Community Based Services American foster homes. ages 13 and under, 28 percent for ages 14-15, and 14 (DCBS), Deputy Commissioner Elizabeth Caywood Pastor Palmer added that the consistency in percent for 16-17 years of age. presented on DMC and how it affects Child Welfare racial disparity as one moves through the Child In regards to probated and probated/suspended in Kentucky. Deputy Commissioner Caywood stated Welfare system mirrors that of the juvenile justice commitments to the DJJ there has been a decrease of that the data shows that African American and bi- system. The five major counties account for 70 percent 19.3 percent between 2014 and 2017, with a forecast racial children are over represented from the start, and of the minority population. In January, Pastor Palmer of a 29 percent decrease for 2018. Since the creation of have poor permanency outcomes. African American inherited a girl in the system who is mentally disabled the Probated/Suspended Commitment Classification and bi-racial children are over represented in child and was sleeping in a parking garage. She now has with SB 200 there has been a 19.3 percent decrease welfare, as victims of child maltreatment and entering a job and is headed to college. This entryway into in probated and an increase in probated/suspended foster care. CHFS’s quarterly report for 2018 shows the Child Welfare system increases the likelihood of commitments. Males continue to be probated at a that the majority of children, regardless of race, exit juvenile justice involvement by 55 percent. In visiting higher rate than females. Males decreased from 2014 Out of Home Care (OOHC) between two and twelve the juvenile detention centers, Pastor Palmer has seen to 2017 by 15.9 percent and females by 37.2 percent. months. However, data shows a greater percentage of many young people who have prior child welfare As was previously stated, SB 200 affected Caucasians

42 2018 Interim LEGISLATIVE RECORD more so than African Americans. African American look like, wherever one is in the state. Pastor Palmer with local and state agencies is the key to KASAP’s youth on probation has increased by 11.4 percent agrees that there is a geographical component to success. KASAP co-chairs with the Kentucky State since 2014, while Caucasian youth has decreased by how racial disparities appear. In response to non- Police’s Sexual Assault Response Team Advisory 28 percent. A comparison of the state, non-DMC DMC counties, Pastor Palmer says it is still seen in Committee (SARAC). The agencies assist victims to counties and DMC counties was presented. In 2017, these counties but the volume is so small that it does seek justice. Jefferson County reported 115 African American not appear on the reports. In response to Senator SB 63 (the SAFE Act) passed in 2016, which has probations and 28 Caucasian probations. Christian Schickel’s previous comment, Pastor Palmer believes led to great progress in the testing of sexual assault and Fayette counties also reported a majority of the data is not racial biased and would be willing to kits. Implementation of SB 63 has identified that the African American probations, while Hardin County meet with him to discuss further. legislation needs a few tweaks. Of the 3,090 SAKI kits, reported more Caucasian probations. Ages 14 to 17 In response to Representative Jenkins inquiry, 2,653 have been reviewed, 1,232 entered, and 408 are the highest represented group of probation and Ms. Bingham confirmed that the statistics are hits received. A requirement to track the kits was not probation/suspended commitments, although all age broken down by gender and that AOC has a human included in the legislation, due to the cost. However, groups have shown a decrease since 2014. trafficking screener report. The percentage of children the lab has come up with a cost effective, and simple Overall commitments have decreased by 10.7 of color entering the system is much higher in some bar coding system. Since it is not yet mandated, only percent since 2014, with a projected decrease of 16 counties, but the number is diluted when considering 67 hospitals are bar coding the kits. Current legislation percent for 2018. Male commitments have decreased all counties because of those areas where African requires data collection to ensure a backlog does not by 5 percent between 2014 and 2017. While African Americans are such a minority. Ms. Bingham said she occur. However, gaps in collecting data were detected. American youth commitments have increased by 20 could provide the breakdown of each county. Having sexual assaults reported to law enforcement percent between 2014 and 2017, Caucasian youth In response to Representative Nemes, Pastor documented on a specific form (such as a JC-3) would commitments decreased by 32.6 percent. African Palmer suggested reading the agencies’ reports, as be more efficient. In addition, following a report from Americans remain the majority of commitments for well as The New Jim Crow, because it deals with some start to finish is difficult due to the code changing Kentucky, and are only outnumbered in the non-DMC of the systemic nuances as to how we build biases into between agencies. While requiring law enforcement counties by Caucasians. Jefferson County reported the system. A spike in Jefferson County elementary agencies to be trained in these areas, not all agencies 108 African American commitments and only 18 school suspensions occurred in 2014-2015 and has come in contact or report on sexual abuse and could Caucasian commitments. Christian and Fayette continued to increase. The disproportionate impact be dropped from this requirement. Sexual Assault counties reported a majority of African American of children being suspended at an early age will be Nurse Examiners (SANEs) have increased from 200 commitments, while Hardin County reported zero. In reflected on the DJJ, AOC, and DCBS’s data in four to 278 but Kentucky needs more. Hospitals need to be the category of confined youth (youthful offenders), years. convinced that this is a critical need in dealing with an increase of 23 percent is reported between 2014 Updates from the Kentucky Association of victims of sexual abuse. KASAP received a grant from and 2017, and is consistently represented by males. Sexual Assault Programs the Office of the Attorney General (OAG) to produce SB 200 did not address youthful offenders. African Eileen Recktenwald, Executive Director of the a training video for hospitals and others who may not American youth confined has increased by 60 percent, Kentucky Association of Sexual Assault Programs encounter sexual assault victims on a regular basis. while white youth confinements have decreased by 35 (KASAP), stated that KASAP represents Kentucky’s Ms. Recktenwald thanked all of the agencies that percent. Ages 16-17 are the highest represented group 13 regional rape crisis centers that also assist with assisted in providing information to create the SAFE in youthful offenders. those who may have experienced sexual harassment, Act Report. SB 20 categories for the DJJ to consider. One abuse, assault, or any sexual violence. KASAP offers Laela Kashan, Staff Attorney for KASAP, thanked area is whether or not a father has involvement in the a network of services and providers who offer the legislators for their support of SB 48 and SB 109. home or with the youth. Regardless of race, over 50 emotional support and education to survivors; such KASAP’s public policy positions have been updated. percent of all youth reported no involvement with a as hospitals, law enforcement, medical personnel, 24- Over 100 responses were received when conducting father. hour hotline, crisis counseling, therapy, and advocacy. a survey on the policy. In addition to the survey, Senator Schickel stated that looking at the This includes meeting victims in emergency rooms KASAP is focusing on what to do as it moves forward statistics solely by racial breakdown is the wrong and accompanying them to court as many times as in the effort to end sexual harm. Addressing all forms approach. If the majority of violent crimes comes necessary. KASAP works toward preventing sexual of oppression and inequality is a must. Oppression from certain areas, it is unfair to make the correlation violence, by providing a bystander intervention is the root cause of all sexual harm. The aim is to that it is race related. In working with the students program called Green Dot in high schools across the build a society founded on justice, equality, human who are having disciplinary issues in the Boone Commonwealth. This program has proven to reduce rights, human dignity, social inclusion, and non- county school system, he finds that some are scared rape, dating violence, sexual harassment, and sexual violence. Sexual violence is historically gender based, to discipline certain students because they are afraid bullying by 50 percent. This past fiscal year the rape but sexual violence happens to everyone, regardless it will be viewed as negative. In not disciplining, crisis centers provided services to over 5,000 primary of gender. Native Americans, African Americans, Senator Schickel believes we are cheating that student victims, and 909 secondary victims. KASAP’s mission lesbians, gays, bi-sexuals, transgenders, queers, and who is crying out for structure and guidance. They is to speak against sexual victimization. those with intellectual or physical disabilities are at a do not want to be perceived as being racist. While he Ms. Recktenwald is strongly aware of the need to higher risk of being sexually violated. As an advocate appreciates and finds the information useful, this is make survivors aware of these services. Crisis Centers against sexual harm, KASAP needs to be involved why Senator Schickel opposed the legislation last year. are reporting an increase in calls from survivors since with all legislation that comes into contact with sexual In response to Senator Carroll’s comment that, the recent events in Washington. The National Sexual harm. To end sexual violence, Ms. Kashan stated that if the non-DMC areas are not showing African Assault Hotline reported more than 3,000 calls the one must look at all of the issues. Intersectionality is Americans as the majority, then maybe this is more day after the Christine Blasey Ford testimony. The key. Intersectionality is a term coined by Kimberle of a geographical issue and not a system issue, Ms. Rape, Abuse & Incest National Network (RAINN) is Crenshaw to discuss how we have different identities Bingham confirmed that the trend is the same in the nation’s largest anti-sexual violence organization. and experience layers of prejudice or privileges based non-DMC counties. Whenever AOC reviews how This was the busiest day in its history, along with a on those layers, such as being female and being Caucasian youth are charged and how African 2001 increase in daily calls. Self-care during times like African American. Intersectionality helps identify American youth are charged, the trend continues this cannot be underplayed. It may involve taking a how individuals interact with others, based on their across the state. She believes that the legislation will break from social media or the news, or even seeking historic identity with the world. KASAP has trained allow them to look deeper and review areas such as help. We can encourage each other to be supportive over 20 staff members, so that when dealing with where the point of contact came from, how children and understanding of the stress of others. individuals KASAP is inclusive and offering holistic start in the system, how end up, and what the trends Ms. Recktenwald stated that working together services. Ms. Kashan also highlighted KASAP’s efforts

THE KENTUCKY GENERAL ASSEMBLY 43 to address issues that contribute to the ability for or institution with a Sexual Assault Nurse Examiner as a priority school the decision making power is people to commit sexual harm. With the joint effort who is able to properly collect forensic evidence. A taken away from the Site Based Decision Making of the numerous agencies and legislators, KASAP will survivor has the right to a copy of the police report, a Council and given to the district superintendent. Ms. continue to move forward to make Kentucky a safer copy of the medical records, and the right to retention Sims said that Title I schools are identified by the level and better place. of all rights, regardless of whether he or she chooses of income. Dr. Lewis added that Title I designation Survivor Bill of Rights to report at the time of post-assault care or ever. If provides the opportunity for additional federal funds. Michelle Wang, RISE Representative, spoke the burden is placed on the survivor, the state must In response to a question from Chair Huff, Dr. about the Sexual Assault Bill of Rights. As a fourth ensure every piece of evidence is available to make Lewis said the proposal from Kentucky Department of year medical student at the University of Alabama’s it a fair, just fight. Informed survivorship should be Education (KDE) would use a reading, mathematics, Birmingham School of Medicine, she has become a standard in law. The RISE movement is spreading social studies, and science assessment that would aware of the tragedies surrounding sexual assaults. across the nation. Since the passage of the federal bill, be developed at the high school level. The new end Such as giving birth to a child that is a product of laws have been passed in 11 states. It is time to come of span assessment will be developed by Kentucky rape, or not knowing your rights as a sexual assault together in Kentucky to support survivors and codify teachers and based on Kentucky academic standards. victim, and realizing that any forensic evidence was these rights into Kentucky law. Students with special needs would have extra washed down the drain of the hospital shower. To Chairman Westerfield commented that Marsy’s resources and modifications during the assessment. wake up one day with the financial and emotional Law and the SAFE Act have already addressed many In response to a question from Representative resources to fight your assailant only to find that the of Ms. Wang’s issues and suggested she connect with Prunty, Ms. Sims said that schools will still be rape kit had been destroyed without any notice. It KASAP to collaborate on any other areas of concern. responsible for identifying students who qualify for is a privilege as a women’s health provider to share Chairman Westerfield reminded members of the free and reduced lunch. these joys and sorrows with women. But these are November 2nd meeting to be held at the University In response to a question from Representative preventable sorrows and injustices. The work is not of Louisville, Louis D. Brandeis School of Law. There Riley, Dr. Lewis said that the portfolio would include done. There are rights to protect. being no further business, the meeting adjourned at a student’s transcripts, test scores, college and career RISE was founded by Amanda Nguyen to 11:58 am. plans, and evidence that a student can demonstrate protect the rights of survivors of sexual assault. competence in reading and mathematics. KDE will Ms. Nguyen’s fight to protect her own post-assault INTERIM JOINT COMMITTEE ON provide broad parameters and the local school board forensic evidence from being destroyed inspired her will develop a more specific plan for appeals that will to write her own civil rights into existence, and to APPROPRIATIONS AND REVENUE go to the local superintendent. teach other survivors and advocates to do the same. Budget Review Subcommittee on Education In response to a question from Representative The sexual assault rights include, but are not limited Minutes of the 4th Meeting Brown, Dr. Lewis said that the push to make students to, the right to consult a sexual assault counselor, fair of the 2018 Interim transition ready, before the new assessment takes September 27, 2018 and efficient rape kit procedures, standard procedures effect, would come from the current accountability for ensuring survivors are informed of their rights, Call to Order and Roll Call system. and that these rights are inalienable regardless of The 4th meeting of the Budget Review In response to a question from Senator Wilson, reporting or further legal action. The federal bill was Subcommittee on Education of the Interim Joint Dr. Lewis said that the reading and mathematics signed into law by the President in 2016, and stands as Committee on Appropriations and Revenue was held academic standards have had second readings and one of the few pieces of legislation in recent American on Thursday, September 27, 2018, at 10:00 AM, in will go to the State Board of Education for approval history to pass unanimously through the House and Room 141 at the Paducah Campus of Murray State on October 2, 2018. There are many ways for a student the Senate. It brought legislators together to codify a University. Representative Regina Huff, Chair, called to demonstrate transition readiness, as required by basic set of civil rights for the more than 25,000,000 the meeting to order, and the secretary called the roll. the proposal. There are not enough state funds to rape survivors across the country. Survivors who, like Present were: administer a college entrance exam at the tenth-grade Amanda, had been left feeling broken and hopeless Members: Representatives James Tipton, Co- level. after attempting to navigate the legal system alone. Chair, and Regina Huff, Co-Chair; Senators C.B. In response to a question from Chair Huff, Dr. Ms. Wang started the RISE system in Alabama Embry Jr., and Mike Wilson; Representatives George Lewis said that forty percent of students at the eighth- and expanded into the southeast region, to work with Brown Jr., Matt Castlen, Tim Moore, Melinda Gibbons grade level scored novice or apprentice in reading and lawmakers, and community stakeholders to ensure Prunty, Steve Riley, and Steven Rudy. mathematics. these basic civil rights for survivors. The majority of Guests: Dr. Wayne Lewis, Interim Commissioner In response to a question from Representative rape cases are adjudicated on the state level. Despite of Education, Kentucky Department of Education; Moore, Dr. Lewis said that KDE will continue to the passage of the federal bill, to ensure the survivors Rhonda Sims, Associate Commissioner, Office of release individual school performance data along with rights to the nearly 1.2 million survivors in Kentucky, Assessment and Accountability; Robin Kinney, the new designations. In the near future, Kentucky there is still work to be done. These rights must be Associate Commissioner, Office of Finance and schools will start to use a more parent-friendly report codified in state law to ensure their rights in three Operations. card. important domains: Rape kit procedures, notification LRC Staff: Chuck Truesdell, Joe Lancaster, and In response to a question from Representative of rights, and sexual assault counselors. Survivors must Jonathan Eakin. Prunty, Dr. Lewis said that schools across the have the right to retain their rape kit indefinitely or Approval of Minutes country are experimenting with competency-based until the statute of limitations for rape expires. When Representative Riley made a motion, seconded assessments. However, a large-scale departure from kits are vulnerable to be destruction, then rapists are by Representative Castlen, to approve the minutes of traditional standardized assessments is a long way off more likely to walk free, commit another offense, and the August 30, 2018, meeting. The motion carried by for Kentucky schools. destroy another life. Though some law enforcement voice vote. In response to a question from Chair Huff, Dr. departments and crisis centers have made a choice School Accountability Performance Standards Lewis said that while the arts are critically important, to never destroy kits, this is not required. Justice Under ESSA not everything can be included or assessed in the for survivors should not be dependent on a private Dr. Lewis, Ms. Kinney, and Ms. Sims provided an accountability system. citizen’s or organizations altruism. It should be overview of Kentucky’s new education accountability In response to a question from Senator Wilson, protected by law. The burden of survivor advocacy model. The overview included information on the Dr. Lewis said that a district can create and implement often falls on the shoulders of survivors themselves. A standard setting process, software, and additional a turnaround plan without using a third-party. survivor may not know about a legally protected right recommendations. However, the audit cannot consist of any district staff. to be notified, in writing, of the nearest crisis centers In response to a question from Representative In response to a question from Representative Tipton, Dr. Lewis said that when a school is identified

44 2018 Interim LEGISLATIVE RECORD Tipton, Dr. Lewis said that providing the necessary Mr. Landrum said an RFI is the main process for those effect on April 8, 2016, 2 years after the KentuckyWired support and intervention during early childhood representing the state to gain information on how RFP. Under the legislation, an agency establishing education is imperative to improving literacy and best to proceed. All potential vendors are welcome to a P3 must conduct a qualitative and quantitative numeracy. respond. analysis that covers risk controls and efficiency of There being no further business, the meeting In response to a question from Representative delivery, leverage private sector partner expertise, and was adjourned at 12:00 P.M. Rothenburger, Mr. Landrum said only personal allocate risk to and return on investment for private service contracts are reviewed by the Government partners. The RFP must include methods of oversight PROGRAM REVIEW AND Contract Review Committee. He described the the agency will use; responsibilities of the agency; process. plans for financing and operating the project; needed INVESTIGATIONS COMMITTEE Mr. Landrum said that an RFP for a private revenue, service payments, bond financing, and Minutes sector concessionaire partner was issued on July 11, appropriations; and considerations resulting from 2018 Interim 2014, based on information gathered through the the qualitative and quantitative analysis. Currently, September 13, 2018 RFI. Five scorers and five technical advisors were universities have the only P3 projects in Kentucky. Call to Order and Roll Call involved in evaluating the four vendors deemed In response to questions from Representative The Program Review and Investigations responsive. The contract was awarded to Macquarie Bechler, Mr. Landrum said he is unaware of any other Committee met on Thursday, September 13, 2018, Infrastructure Development LLC on December 22, contracts that have been awarded before negotiations at 10:00 AM, in Room 131 of the Capitol Annex. 2014, without negotiations having been completed. were finalized. The KentuckyWired contract was Representative Lynn Bechler, Chair, called the At this stage, there were jumping off points that an anomaly due to its time and budget constraints. meeting to order; Senator Carroll led the audience in would have required Kentucky to pay $8 million to Pole attachments with AT&T and Windstream and prayer and the Pledge of Allegiance; and the secretary $9 million should negotiations have broken down. easement agreements became immediate supervening called the roll. Because the contact was awarded before negotiations events because they were not negotiated prior to the Present were: were finished, allocation of risk moved heavily toward award of the contract. Before accepting responsibility, Members: Senator Danny Carroll, Co-Chair; the state. Budget and timeline were the driving FAC investigates each supervening event to determine Representative Lynn Bechler, Co-Chair; Senators forces that led to the contract being awarded before if it could have been mitigated or solved by the private Tom Buford, Perry B. Clark, Dan “Malano” Seum, negotiations were completed. vendor. Mr. Landrum said he is not sure of the CLEC Reginald Thomas, and Stephen West; Representatives The environment affecting the project included process, but Kentucky not being a CLEC caused a Chris Fugate, Adam Koenig, Steve Riley, Rob the need to fill service gaps. Also, moving to a new delay. Rothenburger, Arnold Simpson, and Walker Thomas. network allowed funds that were being paid to In response to questions from Senator West, Guests: Secretary William M. Landrum III, providers to be used as a funding stream. This includes Mr. Landrum said he has never awarded a contract and Pamela Trautner, Director of Communications, federal E-rate funds paid to school districts. In July prior to negotiations being completed. Awarding the Finance and Administration Cabinet. 2014, the Federal Communications Commission KentuckyWired project prior to negotiations being LRC Staff: Greg Hager, Committee Staff (FCC) had ruled that the E-rate program could be completed put the state at a disadvantage. Doing Administrator; Chris Hall, Colleen Kennedy; Van used for dark fiber. The Finance and Administration the project in stages would have been better. AT&T Knowles; Jeremy Skinner; William Spears; Shane Cabinet (FAC) proceeded as if the contract protested the KIH4 RFP because it knew the former Stevens; Susannah Stitzer; Joel Thomas; Richard with Macquarie met the FCC’s competitive bid FAC deputy secretary was involved in the bond sale Schufelt, Graduate Fellow; and Kate Talley, Committee requirements to access E-rate funds. Approving the and preparation of the RFP, and then became the Assistant. procurement before the previous administration left director of KCNA, which was a bidder for the RFP. Minutes for August 9, 2018 was also a factor. The RFP was a must win for Kentucky to secure E-rate Upon motion by Representative Rothenburger In order to use E-rate funds, the FCC advised revenue as a funding source for KentuckyWired. and second by Representative Fugate, the minutes for that there should be a separate competitive RFP In response to a request from Senator West, the August 9, 2018, meeting were approved by voice and a separate entity to manage KentuckyWired. Mr. Landrum said that he could provide a list of the vote without objection. The Kentucky Communications Network Authority attorneys who represented Macquarie. Presentation on Contracting Policies and (KCNA) was created by executive order in August In response to questions from Representative Procedures for Public Private Partnerships and 2015. The Kentucky Information Highway, version 4 Koenig, Mr. Landrum said that whether a project Capital Projects Similar to KentuckyWired (KIH4) procurement was must win to guarantee $11 is bonded all at once or in parts depends on the Secretary Landrum, who is the chief purchasing million in E-rate revenue as a funding source. The situation. In any case, a request must be made to the officer for Kentucky, described the four contracting KCNA executive director, who was the former deputy General Assembly every 2 years for appropriations for methods under the Kentucky Model Procurement secretary of FAC, was a participant in selling the debt service. The KentuckyWired project has greatly Code. The KentuckyWired project falls under $289 million in bonds for the KentuckyWired project energized the private sector. Some local governments competitive negotiation. Proposals deemed through FAC and in the preparation of the KIH4 RFP are also improving broadband access. The intent of responsive to the RFP are evaluated, scored, and through KCNA. AT&T filed a protest on November 6, the KentuckyWired project was for state and local ranked by scorers. Technical advisors are also 2015. The KIH4 RFP was canceled and not reissued. agencies to pay for access to the middle mile. Changes involved in this step in the process. Negotiations then Between the driving forces of the timeline and in the RFP process for P3s are not necessary because begin with the highest ranking vendor. If negotiations budget, project risks became apparent. Kentucky guidelines and regulations are already in place. break down, an option is to proceed with negotiations needed Competitive Local Exchange Carrier (CLEC) In response to a question from Senator Thomas, with the second highest ranking vendor. Once there is status to negotiate pole attachments. There were no Mr. Landrum said that the state had assumed that agreement, a contract is eventually awarded. pole attachment agreements with AT&T, Windstream, the initial bid was sufficient for E-rate funding. The For KentuckyWired, the first step was a request or any of the other 70-plus utility providers across the FCC said that this did not meet the competitive bid for proposal (RFP) on December 18, 2018 for a state. Nearly 45,000 property easements needed to be requirement for E-rate, so there would have to be a consultant to help with a request for information processed. Unfunded items such as site preparation, separate bidding process. (RFI). road relocation, getting commercial power to In response to a question from Senator Thomas, Representative Bechler noted that the committee communication huts and nodes, and system refreshes Mr. Landrum said that it could cost up to $475 million requested a number of people involved in awarding at 10 and 20 years needed to be worked out. These to complete the KentuckyWired project the contract to attend today’s meeting. Only two project risks caused direct project claims, which are In response to questions from Senator Carroll, attorneys who are now in Washington DC agreed to outside of project funding. Mr. Landrum said that the way the original contract attend. Public-private partnership (P3) legislation took was competitively bid was within the scope of how In response to questions from Senator Carroll, THE KENTUCKY GENERAL ASSEMBLY 45 procurement should proceed. During the process, determined that the competitive process for E-rate in Parkland, Florida precipitated calls from media decisions were not always wise given the constraints. funding was insufficient. outlets throughout the nation, prompting many The lack of expertise was not the problem. The In response to questions from Senator Carroll, superintendents to cast doubt if measures within their primary issue was the timeline, which meant that the Mr. Landrum said he could provide the names of the own schools adequately ensure student safety. Since process was rushed. E-rate funding was not known five scorers and five technical advisors for the RFP. the 1999 Columbine, Colorado school shooting, 425 and pole agreements were not in place. Senator P3 projects need to continue to move forward once students and educators have been injured or slayed in Carroll said that under the contract, contractors can begun. After bonds were sold, there was no avenue for our nation’s school shootings, with nearly one-quarter be rewarded for not performing in a timely fashion. punitive action or termination. of the shootings occurring from January through May Mr. Landrum said there was widespread involvement Senator Carroll commented that the need for 2018. of agencies in the process, which included the the project was evident. Many in the private sector Fayette County Schools immediately enhanced Kentucky Department of Education regarding E-rate are filling the voids for internet access. Mr. Landrum safety procedures but quickly found the measures were funds. The FAC secretary would have made the final said the project accelerated the private sector’s efforts insufficient. A tip from a student via an anonymous decision to sign the contract. across the state. tip line prompted an investigation, resulting in a In response to a question from Senator Carroll, The meeting was adjourned at 11:51. search which uncovered a student had purchased Mr. Landrum replied that he had not reviewed the an AR 15 rifle and 500 rounds of ammunition. The other proposals submitted for KentuckyWired. It is SCHOOL SAFETY WORKING student, who displayed no obvious warning signs and not normal to put all the risk on the state. Sometimes, was on track to graduate, was charged with 2nd degree the state buys insurance to mitigate risk. The FAC GROUP terroristic threatening. Following that incident, a Office of Financial Management handles bond Minutes of the 5th Meeting student at Henry Clay High School brought a loaded issues. He did not know if the E-rate problem was of the 2018 Interim gun onto campus, creating such fear among students September 10, 2018 known at the time the bonds were issued. The state that 80 percent of the student body did not attend was counting on a $28 million funding stream. The Call to Order and Roll Call school the following day. In yet another incident at state has authority to move public sector entities to The 5th meeting of the School Safety Working Frederick Douglas High School a student smuggled KentuckyWired, but the project is about providing Group was held on Monday, September 10, 2018, at a loaded gun into the school which accidentally the middle mile and is not trying to compete with the 9:00 AM, in Glasgow, Kentucky at the Barren County discharged, injuring his hand. These incidents private sector. Technology Center (BCTS). Senator Max Wise, Co- revealed that school shootings can happen anywhere Mr. Landrum said there is a need to move Chair, called the meeting to order, and the secretary and at any time. forward. The driving factors of funding and time led to called the roll. Fayette County Schools formed a District Safety decisions that put Kentucky at risk. Some of the issues Present were: Advisory Council (DSAC) of internal and external that became supervening events could have been Members: Senator Max Wise, Co-Chair; stakeholders in the community to ensure schools handled before the signing of the master agreement. Senators Danny Carroll and Alice Forgy Kerr; are safe and successful. The DSAC was comprised The process took 8 or 9 months; it normally takes Representatives John Blanton, George Brown Jr, and of first responders, school leaders, district leaders, about a year and half. Brandon Reed. teachers, families, students, members of the business In response to questions from Representative LRC Staff: Jo Carole Ellis, Yvette Perry, Maurya community, faith-based community leaders, civic Simpson, Mr. Landrum confirmed that Kentucky was Allen, and Christal White. organizations, representation from the district- under no financial obligation prior to the execution of Representative Steve Riley welcomed members wide PTA, and a governance team. The council was the contract in December 2014. FAC is still negotiating of the committee to Barren County and introduced charged with providing research, evidence, and actual pole attachments; this responsibility could have been the Superintendent of Barren County Schools, Mr. recommendations to ensure the safety of children placed on the vendor during the negotiating process. Beau Matthews. He also invited members to a meal in school, at home, and in the community. Fayette In response to questions from Senator Seum, prepared by the culinary class upon adjournment. County Schools sought national and state experts to Mr. Landrum said bond funds are drawn down Senator Wise recognized Barren County engage in discussions on school safety, social media, as needed and Kentucky does have oversight as Superintendent Beau Matthews and welcomed the and mental health. The DSAC also received student- the money is drawn down. The KentuckyWired many other superintendents in attendance panel recommendations to create a safe environment Infrastructure Company was set up to sell bonds and Co-Chair John Carney was absent due to and Fayette County Schools examined juvenile justice the KentuckyWired Operations Company was set up attending an NCSL Conference with school safety as across the spectrum. Dr. Caulk said legislation passed to manage the project and provide oversight of the the primary focus. by the General Assembly reforming the adoption and operation. Easements are individually negotiated and foster care system was a significant step to ensure then funds are drawn down. Responsibilities were not Senator Wise introduced the new working group children are safe at home. DSAC recommendations well defined during negotiations. member, Mr. Andy Smith, a social studies teacher were proposed to increase the in-school safety of In response to questions from Representative from Woodford County High School (WCHS). Mr. students through a 10-Point Safety Investment Plan. Rothenburger, Mr. Landrum said Kentucky did not Smith has more than 12 years of teaching experience Fayette County Schools proposed a terminate the contract because there was a need and has served on the WCHS Safety Committee, comprehensive plan to increase safety in facilities for the project. The turning point regarding risk worked with threat assessments, and served on the while also being proactive regarding mental health management was when authority was given to sell the site-based council. Mr. Smith replaced Ms. Glass who needs. The plan included additional law enforcement bonds. At the time, there was no immediate call date was unable to fulfill her appointment. officers, additional mental health professionals, on the bonds. Approval of Minutes exterior and interior facility upgrades, student and In response to questions from senator West, On a motion by Representative Blanton and a staff IDs, comprehensive adolescent assessment Mr. Landrum said invoices for attorneys from Baller, second by Senator Kerr, minutes of the August 13, and health promotion, metal detectors and security Stokes, & Lide PC and Polsinelli Law Group for 2018, meeting were adopted by voice vote. ambassadors, secure vestibules, social media approximately $800,000 were approved by the FAC Superintendents monitoring, education and training, and an upgraded Office of General Counsel. He did not know if the Fayette County School District emergency communication system. attorneys advised on project risks. Dr. Manny Caulk, Fayette County School The Fayette County School District has retained In response to questions from Representative District, said finding viable school safety solutions its own law enforcement division for more than 47 Bechler, Mr. Landrum said his predecessor was was precipitated as state and national events unfolded years at the high school level and have a goal to have responsible for deciding whether to sell the bonds. throughout the country. On February 14, during the one law enforcement officer in every middle and grade KCNA may be able to explain why the FCC 2018 National Superintendent’s Conference, a school school as well. The officers provide protection in the shooting at Marjory Stoneman Douglas High School

46 2018 Interim LEGISLATIVE RECORD event of a threat, facilitate Drug Abuse Resistance Schools for raising taxes for additional funding for in each building. Other initiatives include available Education (DARE) programs, and create a positive the increased protection of children. mental health professionals to treat children who and healthy relationship among children and law Dr. Bargione thanked Dr. Caulk for sharing the intend to harm themselves or others. Mr. Smith said enforcement. comprehensive approach of Fayette County Schools. two school psychologists are responsible for testing Many in-state and out-of-state facilities have With this being National Suicide Prevention Week, special needs students, administering mental health replicated Fayette County Schools model. Dr. he is impressed with the physical and psychological assessments, and building trusting relationships. Caulk said funding of legislation to hire retired law safety of students in schools, homes, and community. Mr. Caven said Hart County Schools assess enforcement officers as School Resource Officers Responding to a question by Dr. Bargione, building safety on a regular basis through active- (SRO) is a positive step for a well-trained, well-versed Dr. Caulk said the training provided in Fayette shooter trainings with the Hart County Sherriff’s support staff. The addition of counselors, social County Schools is the same training Kentucky law Department. Regardless of district size, Mr. Caven workers, and mental health professionals will enable enforcement officers endure during a rigorous 32- said safety issues are identical while financial needs schools to decrease counselor-student ratio from one week program. The training includes law enforcement differ. Resources ensure a quality education and helps counselor for 550 students to the nationally suggested agencies from other counties as well as Fayette County students to become productive citizens. Without practice of one counselor for 250 students. Dr. Caulk Metro officers. With the addition of officers in middle funding, other areas of education are compromised said many elementary schools currently have a ratio and grade school, Dr. Caulk said students can build and schools must seek financial resources through tax of one counselor for 650 to 700 students. trust and form positive relationships with them. increases. With over 1,700 entrances in Fayette County In response to Dr. Bargione’s second question, Mr. Smith’s first achievement was putting Schools, exterior emergency door alarms and interior Dr. Caulk said Fayette County administration a nurse in every building. His next priority is to facility door locks increase security. Dr. Caulk is working with schools to identify the need for generate new revenue to enable Hart County Schools said visibility from windows is also a concern. For additional counselors, social workers, and mental to retain a law enforcement officer in every building, increased security, middle and high school students health professionals. The five cent tax is separate as currently-stationed deputies could be called away and staff will carry identification badges at all times. from the general fund and can only be used for the for an emergency. initiatives in the comprehensive safety investment Comprehensive assessment and health plan. Fayette County Schools plan to hire 37 officers Mr. Caven performs regular safety walkthroughs, promotion is another component of the 10- point through in-state and out-of-state job fairs. ensures teachers are present in hallways during class plan and includes a health assessment for each high Responding to a question from Mr. Akers, Dr. changes, and advocates the importance of relationship school student at the beginning of the year. The Caulk said parental responsibility regarding safe gun building. With the utilization of the STOP tip line, assessments will expand to middle schools, providing control and monitoring children’s phones is essential. children are less afraid. Students and teachers are appropriate support to reduce suicide and addressing Fayette County School’s STOP tip line enables taking responsibility to keep schools safe. mental health. Dr. Caulk said partnering with the students and families to facilitate safety in our schools Moving forward, Mr. Smith said initiatives University of Kentucky will allow the presence of full- through family education and training. include having SROs in every building, increasing time nurses in each high school and will eventually Ms. Mohammadzadeh thanked Dr. Caulk for the number of school psychologists, and installing expand to middle and elementary schools. taking corrective measures for the incident at Dunbar tempered safety glass and enhanced camera systems Dr. Caulk said minor capital projects are High School. In response to her statements, Dr. Caulk in all facilities. Bus and event safety are other critical necessary to ensure buildings are welcoming and safe. said the Fayette County School District will create issues on which he wants to focus. Fayette County Schools have added hand-held wands a safer environment by moving forward with social In response to a question by Senator Wise, in every school and will move forward with stand- and emotional K-12 curriculum and bringing in Mr. Caven said Hart County Schools entertained alone metal detectors at a single-entry vestibule. additional mental health resources. The district will a proposal to use veterans as school safety officers, The addition of a computer application connected to ensure a welcoming and positive school climate and a veteran completed an assessment and provided the local emergency management system is part of culture in peer to peer relationships as well as staff to valuable information, but no action has been taken. the plan. Fayette County Schools will contract with students. The student voice at Dunbar High School Mr. Caven said Hart County Schools reached an entity for social media monitoring and inform has been phenomenal in helping shape a positive out to Tim Early, Director of Green River Regional families of available resources to ensure student safety. culture. Educational Cooperative (GRREC), who was unable Dr. Caulk said Fayette County School’s one-time Hart County School District to attend. He reported that GRREC has a quarterly investment will cost $13.4 million and revenue from Mr. Nathan Smith, Superintendent, and Steve meeting of a safety work group and Mr. Early provided the five cent property tax will generate $13.2 million Caven, Director of School Safety, said structural correspondence to each legislator on school safety. in November. A timeline for implementation of the security, communication, policy practices, and Senator Kerr said responsible gun owners should 10-point Safety Investment Plan has been finalized. training are necessary moving forward. be informed that recent shootings were by a student Additional meeting materials included a booklet Mr. Smith described the Hart County School with access to family-owned guns. Mr. Caven said entitled Fayette County Public School’s Annual Report District as a small district with 2,300 students, 450 information could be posted on the school Facebook 2017-2018, Champions for Children. For a copy employees, and the largest employer in Hart County. page and other ways to share with the community. contact Fayette County Public Schools, 701 East Main Hart County Schools consist of six school, 94 exterior Senator Carroll said while securing guns is Street, Lexington, KY 40502, or call 859/381-4100. doors, and a SRO in every school. The plan mirrors critical, there is a great need to facilitate a balance to In response to a question by Senator Carroll, Fayette County School’s plan. The district is looking provide gun owners immediate access as protection Dr. Caulk said Fayette County police officers serve in for available resources to meet school safety needs. for their families. In response to Senator Carroll’s the school system’s law enforcement division. Senator The Hart County School District is building a statement, Mr. Smith said this year’s tripling of Title Carroll said a drafting error in 2017 legislation new high school and vocational school ensuring the IV dollars was spent to have a nurse in every building. did not include continued health care coverage for facilities are up-to-date, including camera placement Mr. Akers said the Kentucky Council for School all retired officers and because KRS language was and exterior door alarms. Mr. Caven said a common Safety (KCSS) staff continually searches for available specific to SROs, Senator Carroll said additional sense approach taken during the planning of the funds from Congress. Responding to Senator Carroll’s legislation will be filed in January to include Special new schools included 20-inch thick exterior walls question, Mr. Smith said the addition of nurses has Law Enforcement Officers (SLEOs) in the statute. and bollards to prevent accidental or intentional created a safer environment. Mr. Caven said having Staff of Kentucky State Police (KSP) are designing collisions with the building. Foyers and vestibules are on-site health professionals has given districts insight contracts regarding structure and liability issues to secure and opportunities are minimized for access to into student mental health. allow troopers to contract individually with school the buildings. Hart County Schools contracted with a In response to a question by Senator Carroll, districts. Senator Carroll commended Fayette County local health professional to provide medical services Mr. Caven said the Hart County Sheriff’s department

THE KENTUCKY GENERAL ASSEMBLY 47 provides assistance at a cost of $5,000 per year versus mental health professionals. of police with other administrative responsibilities other resources at a cost of $58,000 per year. In response to a question by Senator Wise, Mr. within the district along with seven retired officers. Responding to a question by Representative Clark said local law enforcement will work with state Senator Carroll will contact the Justice Cabinet and Reed, Mr. Caven said metal detector wands are not police on active-shooter training for teachers. recruit someone from SLEO to testify. currently being used in Hart County Schools but Responding to a question by Senator Carroll, Senator Wise announced student-led tours of administration has plans to visit Green County Mr. Clark said students who are comfortable with a the Barren County Technology Center and lunch Schools to observe the effectiveness of the system. trusted adult, parent, or another student can provide was provided by the culinary students of BCTC upon In response to a question by Senator Wise, Mr. valuable information. Shelby County Schools conduct adjournment. Caven said his schools have not asked for any training parent academies to aid parents in what to look for There being no further business, the meeting programs to arm teachers. in a child’s social media account. Mr. Clark said an was adjourned at 10:45 A.M. Shelby County Schools anonymous tip line has been part of the discussion Michael S. Clark, Director of Student Services, but has not yet been implemented. CAPITAL PROJECTS AND BOND presented Shelby County School Safety Measures, 2018 In response to a question by Representative and Beyond. Shelby County Schools are focusing on Reed, Mr. Clark said Shelby County does not utilize OVERSIGHT COMMITTEE three distinct categories including facilities, staff and the Sources of Strength (SOS) program but pairs Minutes September 18, 2018 students, and community. Comprehensive reviews younger and older students using Link Crew. Due to after the tragic shootings determined safety measures the success of the SOS program, Representative Reed Call to Order and Roll Call used at the time were inadequate. recommended the district check availability of federal The Capital Projects and Bond Oversight Shelby County Schools installed an Aiphone grants. Committee meeting was held on Tuesday, September entry system at every school at a designated locked Mr. Akers said Shelby County Schools received 18, 2018, at 1:00 PM, in Room 169 of the Capitol entry. All exterior doors are locked and numbered and the Steve Kimberling Award at the Kentucky Annex. Representative Larry Brown, Chair, called the visitors enter and exit through a single-entry system, Association of School Administrators (KASA) meeting to order, and the secretary called the roll. providing visual and verbal contact as the first layer of Conference for being a model district including first Present were: protection. Should an incident occur, first responders responders meetings, training for active shooters and Members: Senator Stan Humphries, Co-Chair; are directed to the area of concern with directionally- responders, and other outside hazards. Mr. Akers said Representative Larry Brown, Co-Chair; Senator Rick labeled floors. The Shelby County School District The Kentucky Center for School Safety (KCSS) offers Girdler; Representatives Steven Rudy and Diane St. welcomes all first responders to become familiar with a free STOP tip line upon request. Onge. the layout of the district’s 3 schools, students, and Major General Humble commended speakers Guests: Ms. Janice Tomes, Deputy State Budget staff. First responders are provided with floor plans of for three excellent presentations and said an easily Director, Office of State Budget Director; Mr. Scott the schools and conduct trainings after school hours accessible, broad program of best practices is needed Aubrey, Director, Division of Real Properties, to hone their skills. To decrease response time, at for all districts since the need is the same but resources Department for Facilities and Support Services; least three emergency notification systems have been vary. In response to his question, Mr. Clark said the Ms. Donna McNeil, Executive Director, Kentucky installed in each school and sends a stress message to way to find best practices for school safety is through Infrastructure Authority; and Mr. Ryan Barrow, local law enforcement, all staff members, and district research findings regarding practicality, expense, Executive Director, Office of Financial Management. administrators. and benefit. Mr. Akers acknowledged the need to LRC Staff: Katherine Halloran, Committee Staff Proactive staff and student measures include at consolidate school safety best practices into one easily Administrator; and Jenny Wells Lathrem, Committee least one SRO in every school, eight licensed mental accessible location. He is hopeful superintendents and Assistant. health consultants on staff, three student counselors, central office staff will utilize 17-years of experience Approval of Minutes (August 21, 2018) a critical response plan, and first responders who from KCSS staff and the STOP tip line. A motion was made by Representative Rudy to attend school staff and student meetings. Mr. Clark In response to questions by Senator Carroll, Mr. approve the minutes of the August 21, 2018 meeting. said Shelby County Schools plans to expand mental Akers said KCSS and KASA partner for the KASA The motion was seconded by Representative St. Onge health professionals in the district to help students conference every year. Mr. Akers said a free, first-time and approved by voice vote. affected by trauma, most often experienced outside School Safety Coordinators Symposium will be offered Information Item of school. A recent study shows one in six children on September 26, 2018 at EKU in Richmond. Last Ms. Halloran reported one school district bond have some sort of mental health issue, translating year, KCSS met with school counselors throughout issue with 100 percent locally funded debt service for to approximately 1200 students in Shelby County the state regarding school safety and mental health. two projects in Daviess County. No tax increase was Schools alone. Mr. Akers said KCSS trains on a regular basis at necessary to pay debt service for the bond issue. Community measures include monthly cooperatives, conducts symposiums and workshops, Project Report from the Finance and meetings with first responders and administration and hosts non-public symposiums for private schools. Administration Cabinet from each school within the district, evacuation and Senator Carroll will ask the General Assembly to Ms. Tomes reported that the Secretary of the reunification sites, incident response procedures, and support the efforts of KCSS. Finance and Administration Cabinet approved, agreements with the local health department and Red Senator Wise announced there will be no IJCE pursuant to KRS 45.750(1)(g) and 45.780, a $9 million Cross. Shelby County Schools are also identifying the meeting in October and said the next meeting of the emergency repair, maintenance, or replacement vulnerabilities and threats of industry and railroads in SSWG will be held in Northern Kentucky on October capital project funded with insurance proceeds: close proximity to each school and the traffic patterns 8, 2018 at 10 A.M. Senator Wise suggested reaching Tourism, Arts and Heritage Cabinet, Kentucky Center for evacuation. out to CPE and focus on school safety on college for the Arts, Fire Damage Restoration. A fire on June Shelby County Schools will implement additional campuses as well. 13, 2018 caused extensive fire and water damage to measures including linking the camera systems to Senator Wise said Moms Demand Action and the interior and exterior roof, interior and ceilings the local Emergency Management Center, active Kentucky Youth Advocates are potential groups from of the main lobby, restrooms, and flooring as well as shooter training for school staff, delayed response whom the SSWG may add to a future agendas. extensive damage to the Bomhard Theatre control procedures, additional mental health consultants, Expressing difficulty in hiring SROs, Mr. room. No action was required. and additional SROs. Delayed response procedures Griesser suggested Senator Carroll’s proposed Lease Report from the Finance and are observed during a fire alarm to determine if the legislation regarding insurance for retired officers as a Administration Cabinet drill was planned, warranted, or unwarranted. SROs future agenda topic. Senator Carroll said McCracken A motion was made by Senator Humphries to are provided by the sheriff’s department but Shelby County Schools operate on a budget of $350,000 per roll four new lease renewals with the same terms and County Schools need on-site law enforcement and year and staff includes a director who acts as chief conditions into one roll call vote. The motion was seconded by Representative St. Onge and approved

48 2018 Interim LEGISLATIVE RECORD by voice vote. Facilities Construction Commission (SFCC) Debt tutors, part-time or full-time enrollment in a non- Mr. Aubrey submitted a lease renewal for the Service Participation accredited school, or homeschool cooperatives. Department of Corrections in Campbell County, Mr. Barrow submitted four school district Homeschool parents attend conventions and $16.89 per square foot for 8,262 square feet of office bond issues with School Facilities Construction workshops with their children and invited OEA to space, through June 30, 2020. Commission (SFCC) debt service participation for attend a workshop led entirely by current or former Mr. Aubrey next submitted a lease renewal for projects [in East Bernstadt Independent (Laurel homeschool students advocating homeschool the Cabinet for Health and Family Services (CHFS) County), Erlanger-Elsmere Independent (Kenton interests. in Warren County, $12.95 per square foot for 8,284 County), Fulton County, and LaRue County]. The Data used in the report was based on results of square feet of office space, through June 30, 2027. total estimated issuance amount was $11.1 million, an OEA staff survey from school district Directors of The two other lease renewals were for CHFS with SFCC’s portion around $1.65 million, just under Pupil Personnel (DPPs), staff review of homeschool in Martin County, $10.50 per square foot for 12,685 15 percent. No tax increases were necessary to pay laws in other states, Kentucky Department of square feet of office space, through June 30, 2027, and debt service for any of the bond issues. Education (KDE) data, the Kentucky Council on the Department of Agriculture in Franklin County, A motion was made by Representative Rudy to Postsecondary Education (KCPE) data, and interviews $8.41 per square foot for 10,640 square feet of office approve the school district bond issues, seconded by with officials from school districts, Cabinet for Health space, through June 30, 2024. Senator Humphries, and approved by unanimous roll and Family Services (CHFS) staff, Administrative A motion was made by Senator Humphries call vote. Office of the Courts (AOC) staff, and homeschool to approve the lease renewals, seconded by With there being no further business the parents and groups. The report summarizes available Representative Rudy, and approved by unanimous meeting adjourned at 1:15 p.m. data and reviews legal requirements for homeschools roll call vote. in Kentucky compared to other states and describes Lastly, Mr. Aubrey reported an under $50,000 EDUCATION ASSESSMENT AND challenges in enforcing Kentucky laws. lease modification for CHFS in Fayette County. Dr. Nelson explained that homeschools are The improvements included security and network ACCOUNTABILITY REVIEW considered by KDE to be private, unaccredited infrastructure, fencing and gates (with card reader SUBCOMMITTEE schools operated by parents or guardians and access) for secure parking, and HVAC for three Minutes receive no financial support from the state. In a network rooms. Two estimates were obtained for each September 18, 2018 survey by Christian Home Educators of Kentucky improvement, with the low bid for each one selected, Call to Order and Roll Call (CHEK), members said the most frequent reason for a total amount of $49,761, amortized through the The 3rd meeting of the Office of Education for homeschooling was lack of trust and information current lease term expiring June 30, 2024. No action Assessment and Accountability Review Subcommittee provided by public schools. was required. was held on Tuesday, September 18, 2018, at 1:00 PM, Kentucky homeschool enrollment has increased, Report from the Office of Financial in Room 129 of the Capitol Annex. Representative slightly exceeding the national average. Outcome and Management Daniel Elliott, Co-Chair, called the meeting to order, demographic data for the majority of homeschooled Ms. McNeil submitted a Kentucky Infrastructure and the secretary called the roll. children are not available in Kentucky or the nation; Authority loan request. The Paducah McCracken Present were: however, available data indicates that homeschool Joint Sewer Agency (JSA) requested a $9.1 million Members: Representative Daniel Elliott, Co- graduates who enroll in Kentucky colleges outperform Fund A (Clean Water State Revolving Fund Loan Chair; Senators Gerald A. Neal and Mike Wilson; public school graduates although enrolling in lower Program) loan for construction of a 15 million gallon Representatives Derrick Graham and Regina Huff. percentages. A homeschool diploma may not have the sewer storage tank [Combined Sewer Storage Tank Guests: Erin Klarer, KHEAA. same legal status an accredited school provides. PWWTP project] to receive excess wet weather LRC Staff: Josh Collins, Yvette Perry, and Dr. Nelson said Kentucky requirements for flows. This project is required under JSA’s Long Term Christal White. homeschools are higher than some states but lower Control Plan and Consent Judgment. The monthly Approval of Minutes June 19, 2018 than others. Homeschool groups believe Kentucky sewer bill for 4,000 gallons is $23.32. The term is 20 On a motion by Representative Graham and a law provides accountability for education although years with a 1.75 percent interest rate. second by Representative Huff, minutes of the June many DPPs report insufficient accountability and A motion was made by Representative Rudy 19, 2018 meeting were approved by voice vote. express concern that some families take advantage to approve the Fund A loan, seconded by Senator OEA Report on Homeschooling in Kentucky of flexibility in homeschool laws to avoid legal Humphries, and approved by unanimous roll call The Office of Education Accountability (OEA) consequences of public school truancy. DPPs’ vote. presented a report on Homeschooling in Kentucky. authority to monitor or enforce homeschool laws Follow-up for Previously Approved Bond This report was approved by the subcommittee as is limited and accountability rests ultimately with Issues part of the 2018 Research Agenda and provided CHFS or local courts under laws pertaining to lack Mr. Barrow reported two previously approved information about homeschool enrollment. OEA staff of adequate education for children and considered a conduit debt transactions. The first was the Kentucky presenters were David Wickersham, Deputy Director; form of child neglect in Kentucky. Economic Development Finance Authority Taxable Dr. Bart Liguori, Research Division Manager; and Dr. Other challenges faced enforcing homeschool Hospital Revenue Refunding Bonds, Series 2018A Deborah Nelson, Research Analyst. laws include the division of monitoring and enforcing (Baptist Healthcare System Obligated Group). The The five homeschool categories presented by responsibilities among DPPs, KDE, and AOC; 30 year transaction sold August 9, 2018, with net Dr. Nelson were background and major conclusions, minimum criteria required for homeschool attendance proceeds of just under $130,000,000. No action was enrollment, available outcomes, Kentucky and and scholarship reports; and time limitations for required. national laws, and challenges enforcing Kentucky law. public officials responsible for enforcing laws. The The second was the Kentucky Housing Dr. Nelson stated that the Kentucky Constitution report notes that statute permits greater roles for the Corporation Tax-Exempt Conduit Multifamily protects the right to educate a child consistent with the Kentucky Board of Education (KBE) in clarifying Housing Revenue Bonds (Henry Green Apartments conscience of a parent or guardian. While homeschool requirements for homeschool attendance and KDE in Project), Series 2018. The short-term three year advocates sight social and academic benefits, public reviewing these reports. transaction, which financed a $17 million multifamily school officials have a major concern homeschooling Dr. Nelson indicated over 26,500 Kentucky project in Louisville (Jefferson Street), sold on August is used as a means to avoid truancy charges. Other school-aged children were reported as being 7, 2018, with net proceeds of exactly $8.2 million at reasons cited for increased homeschool enrollment enrolled in homeschool in 2017, or 3.6 percent an about two percent net interest rate. No action was are religion, flexibility, and safety. Homeschooling compared to the national average of 3.3 percent. required. in Kentucky includes instruction solely in the home, Although historical data is not available in Kentucky, School District Bond Issues with School home instruction combined with online education, the national percentage of students who entered

THE KENTUCKY GENERAL ASSEMBLY 49 homeschooling has more than tripled since the 1970s. recruited by colleges because they are known to there is evidence of physical neglect or abuse. Many It is nearly impossible to distinguish the number of be academically prepared and have good work DPPs believe Kentucky homeschools should have students who are homeschooled compared to those ethic. Parents said homeschool students learn to minimal requirements for attendance and stronger being reported. The majority of homeschool students manage their time and studies, be independent, and requirements for outcome data and scholarship in Kentucky fall within a few percentage points of the experience real world situations. Homeschool parents reports. state average, with seven districts having less than shared names of prominent Kentuckians who are Based on interviews, homeschool advocates one percent and ten districts having more than seven homeschool graduates. believe sufficient accountability exists under current percent. There is little association among districts in Dr. Nelson said that Kentucky compulsory law and that higher requirements would place an the percentage of students being homeschooled and homeschool attendance laws require all school- undue burden on families educating children without the percentage of students in the district considered aged children attend public school unless statutory state support. They feel some forms of accountability to be living in poverty. The report noted that the requirements are met. Homeschools are required to in other states compel parents to make choices which percentage of homeschool students is typically lower report enrollment to school districts annually and are not beneficial to a child’s education. Kentucky law in independent districts versus county districts. keep attendance and scholarship reports. While these gives children a fundamental right to educational Figures are skewed by students never enrolled two items are subject to direct monitoring by DPPs, instruction and lack of adequate education is in public schools, students previously enrolled in required subjects and duration of the school term are considered a form of child neglect in Kentucky. public school and transferred to homeschools, and not monitored. Dr. Nelson said DPPs have the duty to enforce those who transfer from homeschool and returned to Kentucky homeschool laws are difficult to compulsory attendance laws but do not have authority public school within a year. In recent years, studies compare with other states since Kentucky offers one to monitor or enforce all homeschool requirements indicate elementary and middle students experienced legal homeschool option while other states offer associated with the laws. They are directly authorized steady but moderate increases in transferring to two or more. Some states have higher requirements only to monitor whether enrollment is reported homeschools. In 2016, the number of students in than Kentucky in the primary homeschool option annually and request and review scholarship and grades 9 through 12 transferring to homeschools while others have much lower requirements. attendance reports. Without legal guidance and increased, possibly associated with the anticipated Alternative options are often based on religious or minimum standards, DPPs are confused about change of the legal dropout age from 16 to 18. Forty- conscientious objections to public school education. criteria used in reviewing reports, how to report six percent of DPPs believe families are transferring The report provides a broad comparison of Kentucky concerns, how to deal with conflicting information to homeschool to avoid legal consequences of public requirements with all 50 states and a more detailed received from various sources, and withdrawals from school truancy, including fines and withdrawal of comparison with surrounding states. Comparison public school due to truancy. A DPP or any CHFS or driving privileges. with the surrounding states shows similar results, with Department for Community Based Services (DCBS) Dr. Nelson said chronic absence was defined both higher and lower requirements. Comparisons staff member has a legal obligation to report to as ten percent or more absences of days enrolled. In are complicated considering legal requirements and authorities if they have legitimate concern about the 2017, chronic absences among students who were the manner in which they are executed. quality of educational being provided. subsequently homeschooled was four times greater In response to a question by Representative Dr. Nelson said CHFS, DCBS, and local courts than currently enrolled public students. Chronic Graham, Dr. Nelson said Kentucky does not require have legal authority to take action on charges of absence does not necessarily indicate reluctance of the reporting of outcome data annually as required educational neglect. If substantiated, CHFS can a child or parent to educate the child since social in some states but agrees outcome data should be investigate in the interest of a child are not being anxiety or fear for school safety may be contributing included. Fourteen states require homeschools to met and design a case plan requiring the parent to factors prior to withdrawal. report outcome data; however, comparisons appear provide education. If conditions of the plan are not Homeschool academic achievement and more rigorous on paper than are actually enforced. Dr. met, the case worker can refer the family to court, the outcome data in Kentucky and the nation is limited. Nelson said it is possible to contact each state which county attorney can order a court appearance, and a The majority of homeschool students’ outcome data requires outcome data to determine the number of judge may require a parent to produce evidence of is unknown since KDE lacks authority. In 2017, laws each state has and the public resources devoted to education or enroll them in public school. Neither the Dr. Nelson said 400 homeschooled students were enforcing the laws. Representative Graham requested cabinet nor the local courts are required to take any enrolled in dual credit classes compared to 25,032 this information be made available to members. He specific action on reports of neglect. OEA found these students from public and other schools. Other expressed concern about the cost to Kentucky when agencies have discretion in how reports are handled schools include private or religion-based schools. students do not register in the public school system and found educational neglect alone is unlikely to Seventy-three percent of homeschooled students, 57 and subsequent related costs once they become adults be addressed unless child neglect or abuse appear percent of public school students, and 60 percent of and are unable to find employment due to lack of skills present. students in the other category maintained a grade or a formal education. In response to his question, The report notes two challenges with the point average (GPA) of 3.5 or higher. The data also Dr. Nelson said OEA has identifying information for implementation of Kentucky laws requiring children revealed the number of homeschool students with a students who withdrew after being enrolled in public to be educated as they apply to homeschools. The GPA below 2.0 was nearly half of those who attended schools but was unable to gather information on authority to monitor and enforce the laws is dispersed public and other schools. The average ACT composite those who were never enrolled. She said the reporting among various individuals and entities. CHFS and score for homeschool students was slightly lower of social security numbers, birthdates, and other local courts have discretion to take specific actions on than the other student category and slightly higher personal information to allow for tracking would reports of educational neglect while DPP, the public than public school students. Comparison of these require a statutory change, at which time lost funds school official designated to enforce the laws, lacks groups during their first year of college revealed 61 to specific districts could be calculated. Dr. Nelson authority to require change made for accountability. percent of homeschool students, 41 percent of public said the effort required to analyze the data would There is little guidance in the law for DPPs to ensure schools students, and 49 percent of other students be minimal once available data is entered into the that homeschool children are educated and that maintained a GPA of 3.5 or above. The homeschool system; however, accruing the information would be determination is made at the discretion of judges or group had a lower percentage of students who earned a difficult process. caseworkers. a GPA of 2.0 or less than public and other schools. Dr. Nelson said that DPPs have strong Dr. Nelson indicated that in an attempt to clarify Also noted is that less than 20 percent of homeschool concerns about Kentucky homeschool laws. Almost the responsibilities of homeschools and DPPs, a students enroll in Kentucky institutions compared to half responded it is nearly impossible to enforce best practice document was developed in 1997 and approximately half of public school graduates. compulsory attendance laws for homeschools and updated by the CHEK, Kentucky Home Education Homeschool parents interviewed for this study less than one third said it is likely that a homeschool Association (KHEA), DPPs from four Kentucky reported that homeschool children are actively not educating children will face consequences unless districts, and the KDE liaison for nonpublic schools.

50 2018 Interim LEGISLATIVE RECORD It outlines the requirements and huge responsibility Graham, Dr. Nelson said that KRS 159.040 states Present were: for families wanting to homeschool and describes that current law allows room for greater clarification Members: Senator Stan Humphries, Co- and interprets the laws relating to attendance and of homeschool requirements in the same manner Chair; Senator Whitney Westerfield, Representative scholarship reports. Many DPPs are confused about as required by law or by regulation of public school DJ Johnson; Charles Byers, John Chilton, Carole the document as to whether it represents law or officials. If KDE proposed a regulation about required Henderson, John Hodgson, Stephen Knipper, and informal guidance. information in a scholarship report, it would also Katie Shepherd. DPPs, CHFS, and courts report there are apply to homeschool students. Dr. Nelson said Guests: Scott Aubrey, Director, and Nancy limitations of time and personnel available to address tracking students would require a statutory change Brownlee, Staff Assistant, Division of Real Properties, their many duties as described under the law. DPPs to include legal guidance regarding information Andy Casebier, Director, Division of Engineering feel their primary responsibility is to address duties included in attendance and scholarship reports and and Contract Administration, Finance and related to public school attendance whereas CHFS or could be useful in a judge’s determination to see if Administration Cabinet; David Beck, Chief Executive local courts may prioritize report of physical abuse, students are educationally neglected. She said DPPs Officer, Kevin Moore, Chief Financial Officer, and educational neglect, or case overload. who have previously engaged with truant students Cody Patterson, Director of Communications, While many DPPs sight concerns about may have observed red flags such as the lack of Kentucky State Fair Board. accountability, almost one-third report concerns books or instructional materials, lack of electricity or LRC Staff: Shawn Bowen and Jennifer Luttrell. that homeschool parents or guardians who are not internet connection, or being homeless. Dr. Nelson Approval of Minutes educating will not ultimately face consequences of said DPPs can authoritatively ask for only a school A motion to approve the minutes of the August educational neglect without other forms of neglect attendance and scholarship report that provides 21, 2018 meeting was made by Senator Westerfield, or abuse due to lack of time and employees’ heavy minimal information. The regulation is flexible seconded by Representative Johnson, and approved workloads. enough for homeschools to skirt stricter guidelines, by voice vote. Dr. Nelson said that all findings contained on which could provide public school officials with Information Item the report relate to the potential for greater clarity valuable information to ensure a quality homeschool Ms. Bowen briefed members on the capital and guidance under existing laws as they apply education. planning process for the 2020-2026 planning period. to homeschools, especially KRS 159.040, which Dr. Nelson said OEA conducted eight interviews Starting in May 2019, the board will meet the third authorizes but does not require the roles of KBE and with superintendents and DPPs to understand their Tuesday of each month at 10 a.m., with the exception KDE. KRS 159.040 state that attendance at private concerns. A good representation of large and small, of the July meeting, which will start at 9:30. and parochial schools shall be kept by the authorities rural and city schools were included in the interviews. Ms. Bowen noted there was one change to next of such in a register provided by the KBE, and In response to Representative Graham’s question year’s capital planning process. In place of the LRC such school authorities shall make attendance and about revising the statutes, Dr. Nelson said most Statewide Debt Report, the Office of State Budget scholarship reports in the same manner as is required DPPs expressed concern about the requirements but Director will provide a presentation on the state’s by law or by regulation of the KBE of public school a variety of concerns were expressed among each financial outlook. This report is provided annually to officials. Such schools shall at all times be open to district. She said while one DPP may work closely the A & R Committee and is similar in nature to the inspection by DPPs and officials of KDE. with the county attorney and CHFS, other districts LRC Statewide Debt Report. Dr. Nelson’s said OEA staff concluded that may have no accountability. Capital Plaza Redevelopment Project in homeschool enrollments are increasing in Kentucky On a motion by Senator Wilson and a second by Downtown Frankfort Presentation and the nation but vary among districts, outcome Representative Huff, OEA’s report,Homeschooling in Mr. Aubrey gave an overview of the Capital data for the majority of homeschool children is not Kentucky, was adopted by voice vote. Plaza Redevelopment project located at 500 Mero available, Kentucky requires more from homeschools Representative Elliott said tension exists Street in downtown Frankfort, Kentucky. The in some states and less than others, many DPPs between homeschools that are providing an project includes demolition of the Capital Plaza area, have concerns about insufficient accountability for acceptable education as opposed to those who are except for the YMCA, hotel, and associated parking, homeschools, and current law allows room for greater abusing the homeschool privilege. He said Kentucky and construction of a 385,500 square-foot office clarification of homeschool requirements. needs to revisit legislation, but it is difficult to make building for about 1,500 employees. Construction In response to a question by Senator Wilson, an informed decision due to lack of statistics. will also include a parking garage attached to the Dr. Nelson said OEA found that only a minority of In response to a question from Representative Transportation Cabinet Office Building parking truant students withdrew and began homeschooling. Graham, Dr. Nelson said it difficult to know if a garage. She said 15 percent of DPPs reported that social majority of homeschool students are provided with Senate Bill 238, 2017 Regular Session of the anxiety, mental health, bullying, and decisions being proper tools to succeed beyond high school without Kentucky General Assembly, authorized the Finance made by school administrators were the top reason more data. She said only a small minority of DPPs and Administration Cabinet to enter into a public- for withdrawing from public school and enrolling had grave concerns about a few homeschool families private partnership, built-to-suit lease agreement in homeschool. Dr. Nelson said almost five times but are not concerned about the majority. for the renewal of the Capital Plaza Complex. The as many students withdraw and then re-enroll, but There being no further business, the meeting procurement process for built-to-suit projects is coding errors skew the number of students returning adjourned at 2 p.m. The next meeting will be held part of a public-private partnership whereby the from homeschools to public schools. While OEA Tuesday, October 16. company constructing the building will finance the staff tracked the achievement of students who cost of construction. The property was conveyed to returned from homeschool, they felt it would be CAPITAL PLANNING ADVISORY CRM/DW Wilburn LLC and is being leased to the misleading to present the findings due to the small commonwealth. At the fulfillment of the lease term, percentage of homeschool responses. Dr. Nelson BOARD the property will be returned to the commonwealth. said data for incoming homeschooled students is not Minutes of the 2nd Meeting The lease will have a maximum annual cost of distinguished between students who have never been of the 2018 Calendar $7,594,254, with biennial renewals through June 30, September 18, 2018 in public schools or students who have re-enrolled. 2050. Additionally, a separate category relates to public Call to Order and Roll Call In response to questions from Senator school students who are highly mobile and numbers The 2nd meeting of the Capital Planning Westerfield, Mr. Aubrey said the occupants of the are hard to capture. The student information system Advisory Board was held on Tuesday, September 18, building will be selected by the end of the year. If has the capacity to monitor these students if a unique 2018, at 10:00 AM, in Room 169 of the Capitol Annex. employees are transferred to the new building from identifier were provided. Senator Stan Humphries, Chair, called the meeting to state-owned space, tenants currently occupying In response to a question by Representative order, and the secretary called the roll. leased space will be relocated to the vacated state-

THE KENTUCKY GENERAL ASSEMBLY 51 owned space. conducted when facilities are close to 50 years old. developers and maintaining the core mission of KSFB. Representative Johnson requested that the The results of the studies are used by the Division of On May 16, 2018, the Finance and Administration Finance Cabinet provide a list (when available) of Engineering to determine future construction needs. Cabinet released a Request for Information relative the state agencies that will occupy the new facility, The two buildings received facility assessment scores to the development of a hotel(s), restaurants, including the disposition of the agencies’ current of 43 and 35.9 respectively. entertainment venues, and retail outlets at KEC. leased or state-owned space. The results of the study provided four options. The responses to the solicitation may potentially be In response to a question from Representative Option one, at a cost of $123,660,000, consists of used to create one or more Requests for Proposal for Johnson, Mr. Casebier explained that Leadership in renovations and updates required to meet current construction of the hotel(s) and associated facilities. Energy and Environmental Design (LEED) is a green functional requirements and to bring the CHR Responses were due June 19, however, the due date building certification program administered by the and HSB buildings into compliance with Kentucky was extended to July 12. U.S. Green Building Council. There are four levels building and energy codes and ADA requirements. The project will include two parcels of land of certification: certified, silver, gold, and platinum. Option two, at a cost of $119,030,000, consists of totaling 133 acres. Parcel 1 is 45 acres located on the To achieve certification, new or remodeled buildings renovations and updates required to meet current south end of the property bordered by I-65, I-265, must include certain energy saving measures functional requirements and to bring the CHR Phillips Lane and the main entrance to KEC. A and HVAC improvements that create a healthier building into compliance with Kentucky building portion of this property was previously considered environment for employees. and energy codes and ADA requirements. This for a full-service hotel attached, via pedway, to the In response to questions from Mr. Chilton, Mr. option also includes the construction of a new HSB KEC South Wing to serve as a focal point at the Aubrey stated that the rent will be paid to the landlord, building attached to CHR Building. Option three, at entrance to KEC. Parcel 2 includes approximately CRM/DW Wilburn LLC, and at the fulfillment of a cost of $4,450,000 is an additive option and would 88 acres on the north end of the property bordered the lease term, the property will be returned to the be completed in conjunction with option one or two. by I-65 and the northern entrance to KEC facilities. commonwealth. CRM/DW Wilburn is responsible The project would construct an elevated parking It includes two vacant structures and two occupied for maintaining and managing the building during deck with access from the upper-level roadway, and buildings. Old Cardinal Stadium will be demolished the term of the lease agreement. Mr. Casebier added add 185 parking spaces and have ADA compliant prior to the development. KSFB also desires to that the cost of the furniture will be financed through spaces with access to the main building lobby. The develop an approximate 8-acre portion of parcel 2 as J.P. Morgan for a term of eight years. Agencies last option, determined to be the best choice, would a multi-purpose exposition center. The facility will occupying the facility will be responsible for the cost provide for a major renovation of the CHR building, be constructed by a third-party developer and leased of the furniture. and demolition and reconstruction of the HSB back to KSFB from the developer for a designated In response to another question from Mr. building separate from the CHR building. The new period of time. Chilton, Mr. Casebier said the new building does not HSB building will consist of an approximate 150,000 In response to questions from Senator include a large number of meeting spaces or a food square foot facility sited on the back parking lot of Humphries, Mr. Beck stated that Cardinal Stadium services area. The facility was designed in this manner the CHR property. The project is estimated to cost would be demolished in early 2019 or as soon as to avoid interfering with downtown businesses. $128,820,000. possible without interrupting events. Employees may utilize the Transportation Cabinet In response to a question from Senator In response to a question from Senator Building cafeteria located next door, the Capital Plaza Westerfield, Mr. Casebier said the CHR building will Humphries regarding the projected revenues from Hotel, and other downtown businesses. be renovated while the building is occupied. To free the new hotel development project, Mr. Beck said In response to questions from Mr. Knipper, Mr. up space in the CHR building, tenants that are not the hotel could be a good revenue source. KSFB’s Aubrey said the new building will consolidate state part of CHR would be relocated to other space. The goal is to add full-service lodging, as well as food and agencies located in multiple buildings. Finance and unoccupied space would then become swing space entertainment amenities for guests attending events Administration Cabinet leadership and other cabinet to be utilized by CHR staff as various areas of the at its facilities. The potential revenues may come from officials will make the final determination. building are being renovated. the lease of the property and from the sales side as Senator Humphries asked why construction Mr. Knipper asked if the facility assessment score well. is so far ahead of schedule. Mr. Casebier stated that for the building will be reevaluated based upon the Other Business the developer is utilizing the built-to-suit method selection of option four. Mr. Casebier said whichever Senator Humphries said the board will convene which enables him to take certain risks that speed up option was undertaken, one, two or four, in essence, its next meeting in May 2019. construction. He noted that the same developer and changes the assessment score. Adjournment construction team were used for the 300 Building, In response to a question from Mr. Hodgson, There being no further business, the meeting and the building design is similar to the 300 Building. Mr. Casebier explained that option four was selected was adjourned at 11:10 a.m. In response to another question from Senator because it is more cost effective, and it includes Humphries, Mr. Aubrey said the final completion advantages not associated with the other options. DIABETES MEDICAL EMERGENCY date for the facility and the parking garage is October Kentucky State Fair Board/Kentucky 2019. Exposition Center Presentation RESPONSE TASK FORCE Senator Humphries asked what steps the Mr. Beck said the Kentucky State Fair Board Minutes of the 1st Meeting developer will take to ensure the building is (KSFB) oversees two convention facilities in of the 2018 Interim September 20, 2018 maintained properly over the life of the 30-year lease. Louisville, the Kentucky Exposition Center (KEC) Mr. Casebier said the developer is using high-quality and the Kentucky International Convention Center. Call to Order and Roll Call construction materials which will help extend the life The facilities host a variety of events throughout the The 1st meeting of the Diabetes Medical of the building well beyond 30 years. At the fulfillment year. Emergency Response Task Force was held on of the lease term, when the property is returned to the The 2018-2020 Executive Budget authorized Thursday, September 20, 2018, at 10:30 AM, in Room commonwealth, warranties will still be in effect for three capital projects for the Tourism, Arts, and 171 of the Capitol Annex. Representative Danny the roof, chillers, and other construction materials. Heritage Cabinet, KSFB: Construct Gate One Hotel, Bentley, Chair, called the meeting to order, and the CHR Building and Health Services Building Construct Hotel Development, and Construct Agri- secretary called the roll. (HSB) Facility Study Presentation Plex. The projects will be constructed on land at KEC. Present were: Mr. Casebier provided an overview of the CHR Mr. Beck said KSFB is seeking innovative Members: Senator Ralph Alvarado, Co-Chair; building and HSB building facility study conducted development concepts to more fully utilize and Representative Danny Bentley, Co-Chair; Senator by Sherman Carter Barnhart Architects. Facility maximize its return on the KEC property while Reginald Thomas, Representatives Mary Lou Marzian assessment studies of state-owned buildings are providing an attractive investment for private sector and Addia Wuchner; Chris Bartley, Gregg Bayer, Robert Couch, Chuck O’Neal, Pat Thompson, and

52 2018 Interim LEGISLATIVE RECORD Troy Walker. other concerns regarding diabetes in Kentucky. are uninsured or have low income, but the programs Guests: Stewart Perry, National Diabetes Access to Insulin, Other Diabetes Drugs, and can be difficult to navigate. For individuals covered by Volunteer Leadership Council. Supplies commercial insurance there are copayment assistance LRC Staff: DeeAnn Wenk, Chris Joffrion, and George Huntley, Treasurer, National Diabetes programs that are usually temporary, difficult to Becky Lancaster. Volunteer Leadership Council; Treasurer, Children navigate, and there is no credit towards the insurance Where Kentucky Stands in the Fight Against with Diabetes; Past National Chair, American deductible when using these assistance programs. The Diabetes: Statistics, Trends, Recent Advancements, Diabetes Association; and Chief Operating Officer, Blink Health program offers assistance for patients and Future Opportunities Chief Financial Officer, Theoris Group Incorporated, with diabetes; however, there is no credit towards the Bob Babbage, Babbage Cofounder, stated stated that the National Diabetes Volunteer insurance deductible or out-of-pocket costs. The Lilly that Kentucky is ranked seventh in the nation for Leadership Council (NDVLC) is a patient advocacy Diabetes Solutions Center is a call center offering incidents of diabetes. The Cabinet for Health and organization committed to improving the safety individual assistance to people with diabetes. Family Services recognizes that 13 out of every and quality of life for people with diabetes. Christel Patient advocacy organizations are asking policy 100 Kentuckians have diabetes. Kentucky has Marachand Aprigliano, Chief Executive Officer, makers to consider through legislation: that insulin approximately 449,000 people with diabetes, and an Diabetes Patient Advocacy Coalition, stated that be on the preventive drug list and be exempt from the additional 26,000 people are diagnosed with diabetes the Diabetes Patient Advocacy Coalition (DPAC) is deductible; that the PBM be required to pass rebates each year. Kentucky’s obesity rate is 34.3 percent and a patient-led policy advocacy organization focused and discounts on to patients at the pharmacy; ensure ranks eighth in the nation. There is a new urgency on federal and state diabetes issues in the areas of that insulin be affordable and accessible; address non- around diabetes and the high cost to individuals and safety, quality, and access. Mr. Huntley stated that the medical switching; pass gag clause bills, and pass health plans. The Kentucky Employee Health Plan typical type 1 insulin pump user list price per month patient-centric transparency bills. New legislation (KEHP) has seen success implementing the Diabetes is approximately $835. The type 1 insulin pump user should increase adherence, decrease complications, Prevention Program (DPP). DPP is a lifestyle change with a $35 copayment and a 30 percent coinsurance, and provide open dialogue on how to increase course taught by diabetes educators who have been the price per month is approximately $116. The insulin dosage adherence by decreasing rationing and trained to help people deal with the extreme difficulties majority of that cost is the insulin. omission, thereby decreasing hospitalizations. of diabetes. For KEHP the financial benefits of DPP The National Center for Health Statistics In response to a question from Senator Alvarado, are positive and have been measured by actuaries. reports that 43 percent of employees are covered Mr. Huntley stated that the $562 monthly cost of KEHP examines supplies and medications differently by high-deductible health plans. A high deductible insulin at list price is based on a rapid acting insulin than other health plans and is more aggressive about plan requires that pharmacy benefits be part of product. providing them to members. The diabetes value the deductible. There is an increase in the use of In response to questions from Senator Thomas, benefit in KEHP offers diabetic members a reduced coinsurance in pharmacy benefit and an increase in Mr. Huntley stated that eliminating PBM would solve copayment and coinsurance with no deductible, for the list price of drugs. Pharmacy Benefit Managers problems regarding prescription costs. He stated most all of their maintenance diabetic prescriptions (PBM) have been instrumental in the rise of the cost of that if the legislature would exempt insulin from a and supplies. drugs by using higher rebate and discount programs, health plan’s deductible, it would force PBM to pass Kentucky is not offering DPP as a part of having exclusive formularies, and implementing non- the savings of a rebate on to the consumer providing Medicaid. There is a formal working group with medical switching of prescriptions. In 2016, 83 percent immediate relief for people with diabetes. Ms. representatives from managed care, hospitals, of employer plans have a pharmacy deductible in Aprigliano encouraged everyone to read An American health providers that specialize in diabetes, major comparison to 55 percent in 2006. The average price Sickness by Elisabeth Rosenthal, for an insight to the insurance companies, primary care associations, and of brand name drugs have more than doubled from history of health insurance in the United States. key leaders from public health that are examining 2008 to 2016. Between 2014 and 2018, more than In response to questions from Representative the complex aspects and issues of Medicaid as it one-fifth of all the formulary exclusions announced Wuchner, Ms. Aprigliano stated that DPAC has relates to offering DPP. The Kentucky Prescription by Express Scripts and CVS were for diabetes related a website, theaffordableinsulinproject.org, that Assistance Program (KPAP) serves citizens, who medications and treatments. provides data and statistics for patients to take to face hardships, in obtaining diabetes related drugs at The Centers for Disease Control and Prevention their human resource department when inquiring low or no cost from major companies. In 2018, drug (CDC) recognizes that one in every three adults with about having insulin exempt from their deductible companies have given over $8 million in products to diabetes require insulin every day. The CDC reports to increase affordability. She has created a worksheet 1,321 Kentuckians in need of assistance. The Diabetes that 57 percent of people on insulin are affected by available on the website, to help patients compare Action Plan (DAP) passed by the Kentucky legislature list price at some point in the year. Actuarial studies current and proposed insurance plan costs. Stewart has been copied by other states. DAP pulls together show that if a patient taking basal insulin pays more Perry, National Diabetes Volunteer Leadership medical professionals, public health employees, than $75 per month, then patients will start to ration Council, stated that that the average doctor treating Medicaid employees, and public employees to review their diabetes medications. Insulin rebates can exceed patients with diabetes spends 1500 hours a year doing diabetes progress in the state. The next DAP report is 60 percent. The discounts negotiated by PBM and appeals on non-medical switching without receiving due in January of 2019. Kentucky was the first state others are not passed on to patients at the point of reimbursement. to add licensing of diabetes educators. Kentucky sale. Nonadherence to insulin therapy affects many In response to questions from Representative has increased the number of professionals who are parts of the body and is associated with serious Marzian, Mr. Perry stated that one out of every qualified and available to teach DPP. Kentucky is the complications. However, if adherence increases 10 four healthcare dollars are spent on diabetic related only state to recognize in statute that November 14th percent, the annual healthcare cost is decreased illnesses. In 2012, Kentucky spent $3.85 billion on is World Diabetes Day. between 9 to 29 percent. medical costs and lost wages due to diabetes. The In response to questions from Gregg Bayer, The contracts between a PBM and the drug projected economic impact for 2020 is $6.5 billion Mr. Babbage stated that there are many initiatives to companies are not transparent and it is not known in total medical costs and lost wages. KEHP gives address the issues of eating healthier and lowering the how much of a drug rebate is held by a PBM. The PBM diabetic members their diabetes medications and financial burden for Type 2 diabetic patients. and plan provider will receive more money when supplies without a deductible or copayment. In response to questions from Senator Alvarado, the higher priced brand insulin is covered rather In response to a question from Dr. Couch, Mr. Babbage stated that Dr. Jeffrey Howard and Dr. than the less expensive biosimilar. Manufacturers Ms. Aprigliano stated that diabetes patients spend Connie White, in the Department for Public Health increase list prices mostly to pay larger rebates. a great amount of time each year asking for prior at the Cabinet for Health and Family Services, would From 2007 to 2016, the list price of insulin grew 252 authorizations for diabetes medicine and supplies be a good points of contact for legislators and task percent while the net price grew 57 percent. There that were previously approved. force members to discuss recommendations and are patient assistance programs for individuals that Adjournment

THE KENTUCKY GENERAL ASSEMBLY 53 There being no further business, the meeting List, with exception of those items selected for further Consulting Engineers, Inc., 1900002437; Third Rock was adjourned at 12:35 P.M. review by members of the committee. Representative Consultants, LLC, 1900002766. Fugate seconded the motion, which passed without objection. KENTUCKY RETIREMENT SYSTEMS Morris James, LLP, 1900002128. GOVERNMENT CONTRACT A motion was made by Representative Hart to REVIEW COMMITTEE consider as reviewed the Personal Service Contract KENTUCKY STATE UNIVERSITY Committee Minutes Amendment List, with exception of those items Ronald Chi, 19-08; BKD, LLP, 19-11. October 9, 2018 selected for further review by members of the Call to Order and Roll Call MILITARY AFFAIRS COMMISSION committee. Representative Fugate seconded the Thomas P. Miller and Associates, 1900002651. The Government Contract Review Committee motion, which passed without objection. met on Tuesday, October 9, 2018, at 10:00 AM, in MOREHEAD STATE UNIVERSITY Room 131 of the Capitol Annex. Representative A motion was made by Representative Hart to Robinson, Kirlew & Associates, 19-029. Stan Lee, Chair, called the meeting to order, and the consider as reviewed the Memoranda of Agreement secretary called the roll. List, with exception of those items selected for further NORTHERN KENTUCKY UNIVERSITY Present were: review by members of the committee. Representative Moody Nolan, Inc., 2019-124. Members: Senator Stephen Meredith, Co- Fugate seconded the motion, which passed without Chair; Representative Stan Lee, Co-Chair; Senators objection. PERSONNEL - OFFICE OF THE SECRETARY Julie Raque Adams; Representatives Chris Fugate, Al Rethink Autism, Inc., 1900002445. Gentry, and Mark Hart. A motion was made by Representative Hart to Guests: Beau Barnes, Brandon Smith, Deck consider as reviewed the Memoranda of Agreement UNIVERSITY OF KENTUCKY Decker, Kristi Putnam, and Lindsay Hughes Thurston. Amendment List, with exception of those items Optimum Healthcare IT, LLC, K19-213; LRC Staff: Kim Eisner, Jarrod Schmidt, and Kim selected for further review by members of the Leidos Health, LLC, K19-214; Hammes Company Smith. committee. Representative Fugate seconded the Healthcare, LLC, K19-215; Subsidium Healthcare motion, which passed without objection. LLC d/b/a Schumacher Clinical Partners, K19-216; Ankura Consulting Group, LLC, K19-217; The Mako AUGUST DEFERRED ITEMS: A motion was made by Representative Hart Group, K19-218; Greenwood/Asher & Associates, to consider as reviewed the Film Tax Incentive List, Inc., K19-219; Prism Healthcare Partners, Ltd., K19- DEPARTMENT FOR MEDICAID SERVICES with exception of those items selected for further 220; The CSI Companies, Inc. d/b/a CSI Healthcare Myers and Stauffer, LLC, 1900002320. Brandon review by members of the committee. Representative IT, K19-221. Smith, Deck Decker and Kristi Putnam discussed the Fugate seconded the motion, which passed without contract with the committee. A motion was made objection. UNIVERSITY OF LOUISVILLE by Senator Meredith to consider the contract as HBSA dba/PIRE, 19-048; Learfield A motion was made by Representative Communications, LLC, 19-049. reviewed. Representative Hart seconded the motion, Hart to consider as reviewed the Correction List. which passed. Representative Fugate seconded the motion, which WESTERN KENTUCKY UNIVERSITY KENTUCKY TEACHERS RETIREMENT passed without objection. Steven Weintraub, 182029; Multi, 182031; SYSTEM Ruffalo Noel Levitz, LLC, 182032. Williams and Jenson, PLLC, 0007. A motion was made by Representative Fugate to defer the contract THE FOLLOWING PERSONAL SERVICE to the November 2018 meeting. Senator Meredith CONTRACTS WERE REVIEWED WITHOUT THE FOLLOWING PERSONAL SERVICE seconded the motion, which passed. OBJECTION: AMENDMENTS WERE REVIEWED WITHOUT OBJECTION: BOARD OF ACCOUNTANCY SEPTEMBER DEFERRED ITEMS: Scanlan Associates, LLC, 1900002621. BEHAVIORAL HEALTH, DEVELOPMENTAL & INTELLECTUAL DISABILITIES DEPARTMENT FOR INCOME SUPPORT SECRETARY OF STATE Res-Care, Inc., 1900001582; The Chyron Group, Bornstein Psychological Services, Inc., LLC, 1900001728. Kinkead & Stilz, PLLC, 1900002235. Lindsay 1900000403-1. Hughes Thurston discussed the contract with the BOARD OF MEDICAL LICENSURE committee. A motion was made by Representative DEPARTMENT OF CRIMINAL JUSTICE Multi, 1900000777. Gentry to defer the contract to the November 2018 TRAINING meeting of the committee. Representative Hart Elizabeth Messer, 1900000337; Jacqueline D. DEPARTMENT FOR COMMUNITY BASED seconded the motion, which passed. Alexander, 1900000572. SERVICES Public Consulting Group, Inc., 1900001870. WESTERN KENTUCKY UNIVERSITY DEPARTMENT OF EDUCATION National Association of Student Personnel Kelly Stewart, COMS, LLC, 1900002459. DEPARTMENT FOR ENVIRONMENTAL Administrators, 181922. A motion was made by PROTECTION Senator Meredith to defer the contract to the November DEPARTMENT OF MILITARY AFFAIRS URS Corporation, 1000001352; Stantec 2018 meeting of the committee. Representative Hart Timothy Roark, 1900002757. Consulting Services, Inc., 1600001285; Aecom seconded the motion, which passed. Technical Services, Inc., 1600001323; Stantec DEPARTMENT OF VETERANS AFFAIRS Consulting Services, Inc., 1800000573. A motion was made by Representative Fugate Amerathon, LLC, 1900002642. to approve Minutes of the September 2018, meeting DEPARTMENT FOR INCOME SUPPORT of the committee. Senator Meredith seconded the EASTERN KENTUCKY UNIVERSITY Michelle D. Bornstein, 1900000403. motion, which passed without objection. Shirley Clarke Education, LLC, 20-124. DEPARTMENT OF HIGHWAYS A motion was made by Representative Hart to FACILITIES & SUPPORT SERVICES QK4, 1000000927; S&ME, Inc., 1100000552; consider as reviewed the Personal Service Contract CMTA, Inc., 1900002342; Staggs & Fisher Stantec Consulting Services, Inc., 1200001443; Strand

54 2018 Interim LEGISLATIVE RECORD Associates, Inc., 1500001578; Hanson Professional 1900002263. State University, 1600000959; Morehead State Services, Inc., 1600000599; Stantec Consulting University, 1600000961; Northkey Community Care, Services, Inc., 1600001742; Stantec Consulting DEPARTMENT FOR PUBLIC ADVOCACY 1600001042; Pennyroyal Mental Health, 1600001044; Services, Inc., 1800002069; Gresham Smith and University of Kentucky Research Foundation, Mountain Comp Care Center, 1600001045; Morehead Partners, C-01209233. 1900002385. State University, 1600001048. FACILITIES & SUPPORT SERVICES DEPARTMENT FOR PUBLIC HEALTH BEHAVIORAL HEALTH, DEVELOPMENTAL Ross Tarrant Architects, Inc., 1500001017; Norton Healthcare, Inc., 1900002349. & INTELLECTUAL DISABILITIES Omni Architects, 1800000919; Stantec Consulting DEPARTMENT FOR WORKFORCE St. Elizabeth Medical Center North, 1800000509. Services, Inc., 1800001103; Ross Tarrant Architects, INVESTMENT DEPARTMENT FOR COMMUNITY BASED Inc., 1800001197; Biagi Chance Cummins London Options Unlimited, Inc., 1900002345. Titzer, Inc., 1900002688. SERVICES DEPARTMENT OF EDUCATION Employment Solutions, Inc., 1800001630; Boys MURRAY STATE UNIVERSITY Department of Corrections, 1900001347; and Girls Club, Inc., 1800001632; Community Action Multi, 001-19; Multi, 003-19; Multi, 006-19; Kentucky School Board Association Educational Kentucky, Inc., 1800001946; Kentucky Housing Multi, 007-19. Foundation, Inc., 1900001878-1; Walton-Verona Corporation, 1800001948; Kentucky Housing Corporation, 1800001949. UNIVERSITY OF LOUISVILLE Independent School District, 1900002266; Pendleton K. Norman Berry Associates Architects, 16-002. County Board of Education, 1900002558; Daviess DEPARTMENT FOR ENVIRONMENTAL County Board of Education, 1900002646. PROTECTION WESTERN KENTUCKY UNIVERSITY U.S. Department of the Interior, 1900000371; Multi, 182014; Multi, 182026. DEPARTMENT OF JUVENILE JUSTICE Louisville Jefferson County Metro Government, Kentucky State Nature Preserves Commission, 1900002185. 1900001156. THE FOLLOWING MEMORANDA OF EDUCATION - OFFICE OF THE SECRETARY DEPARTMENT FOR LOCAL GOVERNMENT AGREEMENTS WERE REVIEWED WITHOUT Harvard University, 1900000008. Ohio County Fiscal Court, 1900002298. OBJECTION: KENTUCKY DEPARTMENT OF PARKS DEPARTMENT FOR MEDICAID SERVICES City of Taylorsville, 1900002593. University of Pennsylvania Trustees, BOARD OF INTERPRETERS FOR THE DEAF 1800001671. AND HARD OF HEARING KENTUCKY FISH AND WILDLIFE Department for Professional Licensing, RESOURCES DEPARTMENT FOR PUBLIC HEALTH 1900002153. Eastern Kentucky University, 1900001616. Multi, 1800001925. BOARD OF LICENSING HEARING AID KY RIVER AUTHORITY DEPARTMENT OF AGRICULTURE DEALERS & FITTERS United States Department of the Interior, Multi, 1700001659; Multi, 1700001857. Department for Professional Licensing, 1900000268. 1900002146. DEPARTMENT OF EDUCATION OFFICE OF INSPECTOR GENERAL Kentucky Valley Education, 1900000451; BOARD OF OPHTHALMIC DISPENSERS Christian Care Communities, Inc., 1900002177; Hart County Board of Education, 1900001048; Department for Professional Licensing, McKenzie Healthcare, 1900002178. Meade County Board of Education, 1900001157; 1900002134. Kentucky Community and Technical College System, TOURISM - OFFICE OF THE SECRETARY 1900001527; Fayette County Board of Education, BOARD OF PODIATRY Multi, 1900002424. 1900002184. Department for Professional Licensing, 1900002436. TRANSPORTATION - OFFICE OF THE DEPARTMENT OF MILITARY AFFAIRS SECRETARY Oldham County Fiscal Court, 1700000729; DEPARTMENT FOR ENVIRONMENTAL The Research Foundation for the State University Eminence Independent Board of Education, PROTECTION of New York, 1900002529; Kentucky Association of 1900001518. Larue County Conservation District, Chiefs of Police, 1900002655; Kentucky Association 1900002084. of Chiefs of Police, 1900002656; Kentucky Association JUSTICE - OFFICE OF THE SECRETARY of Chiefs of Police, Inc., 1900002657; Kentucky Unlawful Narcotics Investigations Treatment DEPARTMENT FOR LOCAL GOVERNMENT and Education, 1900001531. Rockcastle County, 1900002335; Harlan County Association of Chiefs of Police, 1900002658; Kentucky Fiscal Court, 1900002464; Harlan County Fiscal Association of Chiefs of Police, 1900002659; Norton OFFICE OF INSPECTOR GENERAL Court, 1900002466; Harlan County Fiscal Court, Healthcare, Inc., 1900002662. U of L Research Foundation, 1800000928. 1900002472; Floyd County Fiscal Court, 1900002610; UNIVERSITY OF KENTUCKY Floyd County Fiscal Court, 1900002617; Floyd Northern Kentucky University, 005-19. County Fiscal Court, 1900002619; Floyd County THE FOLLOWING FILM TAX INCENTIVES Fiscal Court, 1900002627; Morgan County Fiscal WERE REVIEWED WITHOUT OBJECTION: Court, 1900002641; City of Pikeville, 1900002672; Webster County Fiscal Court, 1900002694; Taylor THE FOLLOWING MEMORANDA OF AGREEMENT AMENDMENTS WERE TOURISM - OFFICE OF THE SECRETARY County Fiscal Court, 1900002695; City of Paducah, High Impact Productions, LLC, 1900002649. 1900002721; City of Beattyville, 1900002722. REVIEWED WITHOUT OBJECTION:

DEPARTMENT FOR NATURAL RESOURCES ADMINISTRATIVE OFFICE OF THE Multi, 1900001854; Multi, 1900001863; Multi, COURTS 1900001864; Multi, 1900001865; Multi, 1900001866; Morehead State University, 1600000957; Kentucky Department of Fish and Wildlife Resources, Morehead State University, 1600000958; Morehead

THE KENTUCKY GENERAL ASSEMBLY 55 THE FOLLOWING PERSONAL SERVICE Governor’s Office of Agricultural Policy has a significant economic impact as a result of CONTRACTS WERE SELECTED FOR FURTHER Report dedicated funding support that leverages $11.34 per REVIEW: Warren Beeler discussed his schedule for the dollar invested. The total economic impact is $707.4 months of September through November. million, 5,426 jobs, and $24 million in state and local KY TEACHERS RETIREMENT SYSTEM In response to a question from Senator Meredith, tax revenue. Due to the National Cancer Institute Mulloy Borland, LLC, 0008. Beau Barnes Mr. Beeler stated GOAP is still in discussion with designation, there has been an increase in funding discussed the contract with the committee. A motion Kroger regarding dairy farmers. There are new from $28.4 million in 2012 to $39.7 million in 2018. was made by Senator Meredith to consider the projects involving cheese, butter, and yogurt that will There are 20 MCC affiliate network sites and contract as reviewed. Representative Fugate seconded increase profits. The Trump Administration added six research network sites. The MCC directly or the motion, which passed. dairy to the new trade agreement that replaced the indirectly cares for 59 percent of all new cancer cases North American Free Trade Agreement. The problem in Kentucky. OFFICE OF THE ATTORNEY GENERAL is that dairy has a quota system in Canada. The Kentucky Clinical Trials Network was – CONTINGENCY FEE BASED LEGAL In response to a question from Representative established to increase access to relevant research CONTRACTS: King, Mr. Beeler stated that border fences and and serve Kentucky communities. There are 4,273 electronic tags are needed to enclose grazing cattle. participants in clinical trials. The item was not discussed. The issue is that broadband is required. There are highly effective efforts to improve EXEMPTION REQUESTS: In response to a question from Senator Meredith, the health of Kentuckians. About 34 percent of the Mr. Beeler stated that grape and wine production is a population is covered by statewide smoke-free acts. DEPARTMENT OF AGRICULTURE: growing industry. The Cigarette Excise Tax in Kentucky is below the The Department of Agriculture requested an Bill McCloskey described the Agricultural national average of $1.72 and should be increased. exemption from the two year contracting restrictions Development Board’s projects for September under The smoking prevalence would decrease as the excise for the purpose of implementing educational and the program. Mr. McCloskey highlighted programs tax increases. compliance activities related to the USFDA Produce including the County Agricultural Investment In response to a question from Senator Webb, Safety Rule. A motion was made by Representative Program (CAIP), Deceased Farm Animal Removal Dr. Evers stated that affiliate networks are hospitals Fugate to grant the request to June 30, 2021. Program, Next Generation Beginning Farmer, that partner with MCC. There are efforts to reduce the Representative Hart seconded the motion, which Shared-use Equipment, and Youth Agriculture number of former tobacco users who utilize vaping passed without objection. Incentives Program. because vaping is not considered a safe alternative to ENERGY AND ENVIRONMENT CABINET: Requested program amendments discussed smoking. The Energy and Environment Cabinet – included: University of Louisville James Graham Brown Division of Forestry requested an exemption from the Clinton County Farm Bureau Federation Cancer Center two year contracting restrictions for the Upland Oak requested an additional $90,000 in Clinton County Dr. Chesney, M.D., Ph.D., stated that in Sustainability and Management Grant. A motion was funds for CAIP. The board recommended approval, Kentucky, 35 percent of cancer deaths are related to made by Representative Fugate to grant the request which would bring the program total to $192,000. lung cancer and 119,000 youths die prematurely. Each to September 30, 2021. Representative Hart seconded Mercer County Conservation District requested year there are approximately 5,000 new cases of lung the motion, which passed without objection. an additional $20,711 in Mercer County funds for cancer and 9,000 deaths from smoking. There being no further business, the meeting CAIP. The board recommended approval, which The JGBCC was founded in 1981 by the people adjourned at 11:24 AM. would bring the program total to $188,764. of Louisville in response to the growing cancer Projects discussed included: crisis in Kentucky. Its mission is to reduce cancer- TOBACCO SETTLEMENT The Kentucky Department of Agriculture was related suffering and deaths locally and globally. It AGREEMENT FUND OVERSIGHT approved for $280,000 in state funds to be divided has a national reputation for the discovery of novel evenly across two years to support the efforts of the cancer drugs and testing of immunotherapeutics. Its COMMITTEE Kentucky Grape and Wine Council. approach in reducing lung cancer-related deaths is Minutes of the 6th Meeting The Greenup County Fiscal Court was approved prevention, early detection, pre-clinical therapeutics, of the 2018 Interim for $3,000 in Greenup County funds for agricultural and clinical therapeutics. October 3, 2018 building improvements at the Greenup County The impact of a $2 million investment in Call to Order and Roll Call Fairgrounds. tobacco settlement funds includes an investment of The 6th meeting of the Tobacco Settlement The Kentucky Department of Agriculture was $14.5 million in awarded grant funding for cancer Agreement Fund Oversight Committee was held on approved for $2,908,425 in state funds to continue research resulting in an economic impact of $38 Wednesday, October 3, 2018, at 10:00 AM, in Room initiatives of the state’s official agriculture marketing million, development of a nationally recognized 129 of the Capitol Annex. Senator C.B. Embry Jr., and promotion program, Kentucky Proud. clinical trials program, publishing of peer-reviewed Chair, called the meeting to order, and the secretary University of Kentucky Markey Cancer Center cancer research articles, securing five patents related called the roll. B. Mark Evers, M.D., stated that lung cancer to cancer treatment, and trials of test agents that are Present were: accounts for 35 percent of total cancer deaths in saving the lives of cancer patients. Members: Senator C.B. Embry Jr., Co-Chair; Kentucky, compared to 28 percent in the United The next meeting will be November 16, 2018. Representative Myron Dossett, Co-Chair; Senators States. In Kentucky, more than 24 percent of adults Documents distributed during the meeting are Stephen Meredith, Dennis Parrett, and Robin L. use tobacco, but the number of adults using tobacco available in the LRC Library and at www.lrc.ky.gov. Webb; Representatives Kim King, Brandon Reed, and has decreased the last several years. Annual health There being no further business, the meeting Dean Schamore. care costs attributed to tobacco use are $1.9 billion, was adjourned. Guests: Warren Beeler, Executive Director, and productivity losses account for $2.8 billion. Governor’s Office of Agricultural Policy (GOAP); Bill The MCC mission is to reduce cancer mortality McCloskey, Deputy Executive Director, GOAP; B. through cancer research, treatment, education, and Mark Evers, M.D., Director, University of Kentucky community engagement with a particular focus on Markey Cancer Center (MCC); and Jason Chesney, the underserved population of Appalachian Kentucky. M.D., Ph.D., Director, University of Louisville James In the next 5 to 10 years, MCC wants to reduce the Graham Brown Cancer Center (JGBCC). cancer mortality rate by 50 percent. LRC Staff: Stefan Kasacavage, Tanya Monsanto, The Kentucky Lung Cancer Research Program Nathan Smith, and Susan Spoonamore.

56 2018 Interim LEGISLATIVE RECORD PUBLIC PENSION OVERSIGHT incorporated into a valuation to help anticipate or investment professionals have the opinion that future manage the process, but over the long term, the true expectations will be lower than historical experience. BOARD cost of the plan is borne by the cost of benefits and This discussion begins with the decline seen within Minutes September 24, 2018 actual experience of the plan, not just the assumption. treasury yields, which in theory represent a risk-free In response to a question from Representative return. So, for example, a plan could purchase a bond Call to Order and Roll Call Miller regarding how plans tend to implement in 1988 with a yield of just over 9 percent, which now The 6th meeting of the Public Pension Oversight assumption changes, Mr. Newton noted that it was has a yield of just under 3 percent. Therefore, the bond Board was held on Monday, September 24, 2018, largely situation-dependent and many times subject market is one of the biggest drivers of change within at 1:00 PM, in Room 154 of the Capitol Annex. to a plan’s funding policy. Plans that began reducing plan portfolios. Given the decline, for many pension Representative Jerry T. Miller, Chair, called the assumptions earlier tend to be lower and can tolerate plans, their fixed income assets, which might have meeting to order, and the secretary called the roll. more incremental changes. Conversely, plans that earned 9 percent historically, are now being replaced Present were: have been slow to change will have a larger gap with bonds that return 3 or 4 percent. Members: Senator Joe Bowen, Co-Chair; between where they are and where they need to be, In response to a question from Representative Representative Jerry T. Miller, Co-Chair; Senators so the changes have been more dramatic and bigger. Kay with regards to pricing the debt of a pension Jimmy Higdon, Christian McDaniel, Gerald A. Neal, Funding levels and health of a plan can impact, but plan based on treasury rates, Mr. Newton stated Dennis Parrett, and Wil Schroder; Representatives small incremental changes are the desired outcome. there is an argument that the liability of a plan Ken Fleming, DJ Johnson, James Kay, Arnold Mr. White explained the critical nature of the should be calculated today based on treasury yields, Simpson, and Russell Webber; J. Michael Brown, John investment return assumption given it is used to since benefit payments are guaranteed and treasury Chilton, Mike Harmon, James M. “Mac” Jefferson, predict at what percent a future benefit payment will yields carry a similar credit risk. He outlined several and Sharon Mattingly. be financed versus what contribution rate will be counter arguments to that position, most notably the Guests: Joe Newton and Danny White, GRS needed. The lower the return assumption, the higher comparable volatility of treasury rates and balance Retirement Consulting; Brad Gross and Bo Cracraft, the plan’s required contribution rate. In addition, the of risk versus return. First, he noted the volatility Legislative Research Commission; David Eager, investment return assumption is critically sensitive on of historic treasury yields and discussed how that Executive Director, Kentucky Retirement Systems. impacting short term contribution rates as compared could lead to a lot of volatility in contribution rates LRC Staff: Brad Gross, Jennifer Black Hans, Bo to other assumptions, like cost-of-living adjustments and funding levels from year to year. Secondly, he Cracraft, and Angela Rhodes. (COLA). noted that using treasury rates assumes no risk, so Approval of Minutes Mr. White and Mr. Newton reviewed the there is a situation where being too conservative is Representative Fleming moved that the minutes Actuarial Standards of Practice (ASOP) and several a risk and asking current tax payers to take on more of the August 27, 2018 meeting be approved. guidelines found within ASOP #27, regarding the responsibility for the sake of future taxpayers. A Representative Johnson seconded the motion, and Selection of Economic Assumptions, which outlines proper balance might be found and some level of risk the minutes were approved without objection. the process for selecting reasonable assumptions for premium should be considered. Trends in Investment Return Assumptions for investment return and rate of inflation. Mr. Newton Mr. Newton discussed the equity side of Public Pension Plans said there is no exact or prescriptive approach, but markets. He introduced the Shiller Price to Earnings Joe Newton and Danny White, GRS Retirement one that often results in more than one estimate Ratio (S&P PE Ratio) metric, which measures the Consultants, reviewed recent trends in investment and involves professional judgement and estimates current earnings of the S&P 500 index compared to return assumptions for public pension plans. The on future experience. Mr. White discussed how the current price. A historical chart demonstrated the consultants discussed the purposes and use of the process is designed to consider, but not place rolling 20-year annual returns for the index dating to assumptions in the annual valuation process, the undue weight on, recent experience and how each 1926 compared to its S&P PE Ratio on the beginning of standards of practice in place regarding the selection individual assumption, along with the complete set of each calendar year. The data shows that the higher the of assumptions, current economic conditions, along assumptions, must satisfy the standards of practice. S&P PE Ratio, the lower the following 20-year return. with a review of what an appropriate time horizon is In response to questions from Senator Bowen Since 1926, the average 20-year return following a for selecting assumptions. with regards to why a system would take an overly January 1st date where the ratio was above 20 has been Mr. Newton reviewed the historical distribution optimistic approach, Mr. Newton said that, in general, 4.3 percent. Looking at current markets, the S&P PE of assumptions used across large retirement plans all stakeholders of a plan (members, employers, and Ratio today is 32.3 percent, which is almost as high as from fiscal year 2001 to the present. He discussed sponsors) tend to benefit more when optimistic before the Great Depression and, based on the data how the majority of plans were utilizing an 8 percent assumptions are used. In most cases, those involved shown, would lead to only moderate returns out of assumption in 2001, but since 2008 and 2009, there in the process are all current stakeholders, so there equity markets. has been a pretty consistent decline in assumptions is no representative to express concern or worry for Mr. Newton provided several simple examples across plans with fewer and fewer plans above 7.5 future stakeholders. Changes have always tended to of a plan’s portfolio from 20 years ago to the current percent. Mr. White summarized plans that had be slow. Expectations changed tremendously in the period. First, in 1998, when equity markets were conducted experience studies over the past couple 2008-2011 time frame, but it took plans several years returning 11 percent and bond yields were about 6 years and had continued to drop return assumptions to respond with lower assumptions. percent, an average pension plan portfolio of 60/40 with a median assumption of 7.33 percent. Mr. White discussed the components of stocks and bonds would have an expected return of In response to a question from Representative selecting an investment return assumption. The 9.1 percent, which would easily exceed the median Miller regarding the trend going forward, Mr. White assumption utilized a building block approach, return assumption of 8 percent. Fast forward to 2018, stated that GRS expected the downward trend to which incorporated both an assumption for the rate where current bond yields are close to 3.5 percent continue at least over the next five to six years. of inflation combined with an expected real return and using an aggressive expectation of 8.5 percent Mr. White reviewed the purpose of an for the plan. In evaluating the anticipated returns return for equity markets, the same 60/40 portfolio actuarial valuation and how assumptions factor of a plan, the actuary often reviews investment data of stocks and bonds now has an expected return of into the valuation process. The primary purpose of from third parties, such as investment consultants. only 6.5 percent, which is below most assumptions. a valuation is to assess the current funded status of The actuary cannot rely blindly on the judgment of In response, what most plans have done is reduced the plan and identify historical trends. The valuation investment consultants, but has to consider and use their fixed income exposure for more risker assets. is more forward-looking with the intent to identify the broad range of data and other inputs available. In their example, moving to an 80/20 portfolio mix the future contribution requirements given a plan’s Mr. Newton addressed several economic factors of stocks and bonds would be expected to achieve current funding policy, fixed contribution rate, or that, on average, are leading to a decline in expectations a 7.5 percent return. Mr. Newton showed a chart the pattern of contributions. Several assumptions are and thus lower investment assumptions. Many provided by the Wall Street Journal depicting the

THE KENTUCKY GENERAL ASSEMBLY 57 average portfolio required for an investor to reach a not nearly as harmful to the funding level. A plan assumption as a significant driver of contribution rates 7.5 percent return in 1995, 2005, and then 2015. In with large levels of negative cash flow should be because, in general, it is not a material assumption 1995, the investor could have had a 100 percent bond more conservative with investment assumptions, with regards to the normal cost of a plan. Mr. White portfolio with a standard deviation, which measures given short term underperformance will have a more and Mr. Newton agreed that the payroll assumption risk, of 6.0 percent. In 2015, in order to earn 7.5 significant impact. should have been included in their presentation given percent, investors would have to reduce bonds to 12 In response to questions from Mr. Jefferson the position of the KRS plans and the impact it has on percent with the remainder of the portfolio in equity, regarding if a plan’s funding level has more or less employer rates. real estate, or private equity, resulting in a standard impact from short term returns, Mr. Newton stated In response to a question from Mr. Chilton deviation of 17.2 percent, or almost 3 times the risk that plans which have lower funded status should regarding how relevant past performance is in of 1995. be getting more contributions, which should in turn setting an assumption, Mr. Newton stated that past In response to a question from Representative reduce the negative cash flow and impact of short term performance is not completely irrelevant, but it would Miller with regards to Kentucky Retirement Systems’ results. However, if a proper funding policy is not in not be prudent to just assume history will repeat (KRS) recent increase to fixed income assets, Mr. place, the worse funded a plan gets, the more impact itself. Determining the balance is where an actuary’s Newton stated that the change in allocation would short term underperformance can have. In response professional judgement comes into the process. bring the expected return down. to a follow up question regarding if a poorer funded Especially with economic assumptions, history has Mr. Newton reviewed historical 10-year plan would be more prudent to choose a conservative a low relevance, and more importance should be expected returns by various asset classes and a simple assumption, Mr. Newton indicated it would depend focused on what is expected to happen in the future. total portfolio dating back to 1998. Looking at major on the plans funding policy and the plan’s cash flow Representative Kay discussed several other asset classes, he discussed an overall trend downward, position. If poorly funded and using a 30-year period, clients of GRS and noted that the KERS and CERS noting that in 1998 public equity expectations were then one likely would want to be more defensive. plans were well below the range of 6.85 percent and about 10 percent for the next ten years, compared to If a plan gets to a positive cash flow position and 7.68 percent recommended to other GRS clients. He around 6 percent currently. Fixed income, which has contributions are stable, there could be paths where a expressed some concern, specifically with regards experienced an increase over the past 24 months, is still plan might look to take on a little more risk. to CERS, that the assumption of 6.25 percent was below expectations in 1998. Using the same asset class In response to a comment from Representative overly conservative and had resulted in the board expectations and applying it to an average portfolio, Miller regarding a more realistic time horizon, Mr. of KRS setting a portfolio asset allocation that took Mr. Newton outlined how the expected portfolio Newton agreed that 30 years was too long and 20 away some future upside opportunities. In response return would have dropped from around 8 percent years was more realistic. The next five years, for plans to comments from Representative Kay, Mr. White in 1998 to just under 6 percent in 2018. Much of the like CERS, which are around 50 percent funded, will indicated he felt like CERS, while probably not falling discussion surrounding lowered return assumptions dictate if current 30-year projections end up being on the optimistic side, was reasonable and provided are being driven by investment professionals lowering what actually happens. For a plan like KERS, which some margin in the event short term performance did return expectations going forward. only has 15 cents on the dollar invested, the next five not turn out as expected. Mr. Newton discussed time horizon and cash years will have less weight given that the impact of Representative Miller also commented on the flow considerations, both of which he believed good or bad performance will be minimal on such a CERS assumption, stating that he had previously are often overlooked. Many of the capital market low amount of assets. thought CERS might had aired slightly on the low expectations provided are for a 7 to 10 year period, In response to a question from Representative side, but after seeing all the information provided, he which is too short given that a retirement plan’s Kay regarding the cash flow of KERS, Mr. Newton expressed more comfort and belief that a 6.25 percent liability stream is clearly longer than 10 years. On indicated that GRS’s primary concern and goal was assumption was reasonable. the other side, many in the industry claim a pension getting KERS out of a negative cash flow situation. Senator Bowen commented that, while not plan should have almost an infinite time horizon and The KRS Board had a couple different options of refuting Representative Kay’s point, one has to also only focus on very long term expectations, but that getting there, such as reducing their payroll growth consider the other side of the equation, which is brings its own issues. A more applicable time horizon assumption, adjusting their funding policy, or the fact that Kentucky is assuming all of the risk. A for choosing an investment return assumption changing a combination of assumptions. GRS was lower return assumption reduces the risk of missing should incorporate the duration of a plan’s liability, less concerned with the exact combination ultimately assumptions, which would create a situation where or by calculating a midpoint when all current benefit chosen as long as it resulted in a funding outcome that the state will have to step up and fund more. payments would be due. Mr. Newton provided an eliminated the negative cash flow and the changes Representative Kay responded that his comments example using a large retirement plan, but also said were reasonable. Mr. White noted that adjusting the were based off an argument that has been made by that within the County Employees Retirement System funding period was not an option, given it is outlined others, which is a concern that the KRS portfolios (CERS) and Kentucky Employees Retirement System in state statute, but changing the investment return are being allocated to reach lower assumed rates of (KERS) plans, benefit payments due are being driven and payroll growth assumptions were options and also return and have little ability to provide stronger, by current retirees, which would suggest using a time were reasonable when looking at actual experience. more attractive returns in periods where markets are horizon of 15 to 20 years is the more optimal choice. Mr. Newton discussed the process used by positive. In addition to the duration of a plan’s liability, the KRS Board in 2017 when they reviewed return Mr. David Eager was asked to join the discussion Mr. Newton discussed how cash flow and the order of assumptions and ultimately adopted their current and he began by commenting that the process begins returns can have a significant impact on a plan’s funding assumptions. After choosing a desired asset allocation with establishing the portfolio first, not the return level. He provided an example of three different return for each underlying plan, the board plugged in capital assumption. A desired portfolio, based on liquidity streams, all which resulted in an annualized return of market expectations from several consultants and needs, cash flow characteristics, and risk tolerance 7 percent on a geometric basis, but noted that returns sources to develop a range of return expectations for is established to determine what the plan can be resulted in very different funding levels. The reason each plans portfolio. KRS’ ultimate choice fell in the expected to return and then those results lead to the was that order of returns matters in relation to cash middle of the range of expectations. 6.25 percent assumption. flow. If a plan underperforms their assumption early In response to a question from Representative Mr. Eager also made a comment with regards in a period, assets decline faster than projected, so Miller regarding their advice to other GRS clients, to a question from Senator Higdon during the outperformance later in the period does not have as Mr. Newton stated that GRS is encouraging clients to KRS Administrative Subcommittee meeting, held much an impact because the asset base is lower. On adjust their assumptions lower and closer to around previously during the day, about the increase in the opposite side, a plan which outperforms their 7 percent. administrative cost of KRS. Administrative expenses assumption early in a period will see assets grow In response to a question from Senator Higdon, increased just over 240 percent since 2001, but over faster than expected, so underperformance later is Mr. White stated that GRS included the payroll growth the 17 year period, that growth resulted in just over

58 2018 Interim LEGISLATIVE RECORD 5 percent annually. Given inflation was around 2 returns during the fiscal year. most partnerships allocate profit based on the percent, the real growth of administrative expenses Mr. Cracraft provided a review of historical initial capital provided by each partner, in a carried was 3 percent. Membership growth over the same fiscal year returns over the last 22 years for each plan. interest arrangement, the limited partners agree to period of time was also 3 percent, so Mr. Eager stated Looking at the ten year returns, trailing returns are allocate, or pay, a portion of a fund’s net profit back expenses were held in line over that 17 year period, improving as 2008 and 2009 returns are replaced. to the general partner in exchange for performance. even with employer contribution rates for that period However, with regards to trailing 20-year returns, General partners prefer carried interest agreements of time increasing from 6 percent of payroll to 49 strong returns from the late 90s will be difficult to due to preferential tax treatment and stated that percent of payroll. replace an indicated there will be some downward management fees would definitely have to increase if Senator McDaniel commented on Representative pressure until the tech telecom bubble period of 2001- carried interest did not exist or was eliminated. Kay’s earlier point. He agreed that everyone would 2002 has dropped off. like to see KRS achieve greater returns, but there has Mr. Cracraft also provided a summary of trailing In response to a question from Senator Bowen, to be an offset for the amount of risk the plan can take. period returns for each retirement plan over the most Mr. Cracraft confirmed there was a management The risk in this case is all the people who are retiring recent 1-, 3-, 5-, 10-, and 20-year periods compared fee plus carried interest in most partnership level and counting on the system. There could be some to each plans assumed rates of return, benchmark, investments. In many cases the carried interest is not short term general fund pain if the plans are in fact and peer group results. Mr. Cracraft discussed the calculated until after the management fee has been shooting to low, but in the long term, the plan should three primary metrics of performance review for each returned. have excess money from the greater contributions plan, which include (1) how have they done versus Mr. Cracraft continued discussing carried and outsized returns. their assumption, (2) how have they done versus their interest and stated that SB 2 required the plans to In response to questions from Mr. Jefferson with benchmark, and (3) how have they done versus their request the data and report it if received. TRS has regards to plans surviving a 1 percent or 2 percent peer groups. Over the short term, at a broad level, the testified that managers have been asked for the data, miss on their assumptions over a 10 year period, Mr. plans exceeded their assumed rates of return, either but have not been able to report. KRS, has received Newton indicated a plan that is better funded actually met or outpaced their benchmark, and were close to the information from most of their mangers, and the has a harder time passing the back-of-envelope test, the median returns for that time period. Looking out dollar amount was reported on the prior slide. Mr. given the amount of investment risk that comes beyond 10 years, performance has been a little mixed. Cracraft provided an example of three states, who with the amount of assets a fully funded plan has. A Mr. Cracraft provided a snapshot of asset are reporting carried interest, to demonstrate how plan that is 100 percent funded, but misses its return allocations as of June 30, 2018 for all eight retirement significant the dollar amounts can become and how assumption by 2 percent over 10 years, will impact plans. Some of the differences that could be seen many times carried interest might even double the much more than a plan that is only 20 percent funded. within the KRS plans, such as the KERS plans holding management fee. In general, when looking at a plan, they need to be less equity and more fixed income. TRS had roughly With no further business, the meeting was in a position where they can survive a 1 percent miss 63 percent of their portfolio invested in equities and adjourned. The next regularly scheduled meeting is on their assumption over a 10 year period. If a plan 21 percent in fixed income, which did include some Monday, October 22, 2018. cannot survive, then they need to reassess because no below investment credit assets. The Judicial Form plan can survive a 2 percent miss. Retirement System (JFRS), which is managed by a Mr. Jefferson and Representative Miller both single manager, had about a 70/30 split between U.S. PUBLIC PENSION OVERSIGHT commented and expressed some concern with large cap equity and fixed income. BOARD regards to the return assumption being used by the Mr. Cracraft discussed the plans asset allocation Kentucky Retirement Systems Administrative Teacher Retirement System (TRS) of Kentucky. in comparison to some of their peers. KERS and Subcommittee In response to a question from Representative CERS have less equity than the peer groups, slightly Minutes Johnson with regards to KERS, Mr. Newton agreed more fixed income exposure, and a similar weight to September 24, 2018 that the short term goal for KERS should be asset alternatives. TRS and JFRS plans are above average Call to Order and Roll Call growth and positive cash flow. Expected returns or equity exposure and similar fixed income. The 2nd meeting of the Kentucky Retirement actual returns will have little impact over the short Mr. Cracraft discussed investment expenses Systems Administrative Subcommittee of the Public term given its lack of assets. Mr. Newton said that for the pension and insurance funds of TRS, KRS, Pension Oversight Board was held on Monday, the contribution rates included in the budget will put and JFRS as of June 30, 2018. Management fees September 24, 2018, at 10:00 AM, in Room 154 of the KERS in a positive cash flow situation. are expenses that are invoiced quarterly and easily Capitol Annex. Representative Russell Webber, Chair, Semi Annual Investment Review reported. With passage of SB2, TRS and KRS are called the meeting to order, and the secretary called Bo Cracraft began with a snapshot of total now required to attempt to identify any other fees the roll. assets under management across all retirement plans or incentives, such as carried interest. KRS reported Present were: administered by the state. On the pension side, TRS other fees, while TRS is unable to report as a result of Members: Senator Wil Schroder, Co-Chair; accounted for about 61 percent of the $32.7 billion in managers not providing. Representative Russell Webber, Co-Chair; Senators assets. The CERS nonhazardous and hazardous plans In response to questions from Representative Jimmy Higdon and Dennis Parrett; Representatives combined to account for about 29 percent, with the Miller regarding why TRS fees were lower than KRS, DJ Johnson and Arnold Simpson; John Chilton, and remaining plans accounting for 10 percent. Of the $6.2 Mr. Cracraft indicated there were two primary factors James M. “Mac” Jefferson. billion in total insurance assets, the two CERS plans leading to lower fees for TRS. TRS manages more Guests: Larry Totten, Kentucky Public Retirees; accounted for 58 percent, the KERS nonhazardous assets internally, specifically within fixed income, Jim Carroll, Kentucky Government Retirees; and hazardous plans account for 22 percent, and TRS real estate, and public equity, which has helped keep Bryanna Carroll, Kentucky League of Cities; Shellie accounts for about 17 percent. fees lower. TRS has fewer managers and has utilized a Hampton, Kentucky Association of Counties; Eric Mr. Cracraft provided a general review of strategy of selecting a few managers, but having larger Kennedy, Kentucky School Boards Association; performance across markets and stated that the fiscal portfolios or multiple portfolios with managers. In Dr. Tom Shelton, Kentucky Association of School year ended June 30, 2018, much like the prior, was regards to a follow up question regarding how both Superintendents; and Joe Baer, Kentucky Professional another positive year. Multiple asset classes were systems fees relate to peers, TRS would likely fall on Fire Fighters. positive and many provided strong returns at or above the low end while KRS is likely near the median for a LRC Staff: Brad Gross, Jennifer Black Hans, Bo return assumptions. Within the U.S., investors are plan its size. Cracraft, and Angela Rhodes. experiencing the longest bull market in U.S. history, Mr. Cracraft discussed the topic of carried Approval of Minutes with markets up 320 percent since March 2009. interest, which is a method of compensating Representative Fleming moved that the minutes Only high quality bonds fell short of posting positive general partners for fund performance. While of the August 27, 2018 meeting be approved. Representative Johnson seconded the motion, and THE KENTUCKY GENERAL ASSEMBLY 59 the minutes were approved without objection. The state does not directly appropriate money to who are impacted by both KERS and CERS. All of the Kentucky Public Retirees CERS, which is funded with local tax dollars. CERS is members have an equal desire for the funded status of Larry Totten, on behalf of Kentucky Public the largest system within KRS based on membership every public pension system in the state to continue Retirees (KPR), discussed the issues KPR believes and assets with 236,000 members and $13.9 billion in to improve in order for the payment of retiree benefits need to be addressed before an opinion is made to assets. Although CERS accounts for 75 percent of the to continue as expected and under the terms of the separate the County Employees Retirement System total assets of KRS, it only holds 6 of 17 board seats, inviolable contract. (CERS) pension and insurance trust funds from the which represents only 35 percent, and only holds one Kentucky School Boards Association Kentucky Retirement System (KRS). Someone without seat on the investment and actuarial subcommittees. Eric Kennedy discussed some of the unique a vested interest should conduct a complete analysis Ms. Carroll discussed recent CERS returns characteristics of the Kentucky School Board on the actuarial, administrative, and financial impacts and asset growth, saying that total investments had Association (KSBA) members included in the of separating CERS. KPR encourages the Public increased an average of 8.68 percent per year since CERS plan. Approximately 52 percent of the active Pension Oversight Board (PPOB) to re-establish the FY 2001 and the 30-year average return for the members in the CERS nonhazardous fund are Subcommittee under its own authority if the Supreme system was 8.9 percent, both of which exceeded the non-teacher school district employees who are Court decision were to negate SB 151. KPR expressed assumed rate of return. In comparison, the Kentucky represented by KSBA. Locally elected school boards concerns about potential conflicts of interest and the Employees Retirement System (KERS) had seen its and superintendents have a vested interest in the effect they may have on the pension plan on which total investments decline 1.5 percent per year and was health of the CERS system and are bound by state law CERS employees and retirees rely. In a Senate Bill 226 the only plan within KRS that saw total assets decline to pay the full contribution rates on behalf of their (SB 226) model, six of nine board members would be during the 2018 fiscal year. employees. appointed by the three advocacy groups pushing the Ms. Carroll discussed the history timeline of Mr. Kennedy discussed how the plans are hardest for the CERS separation. Such a model could CERS under KRS and stated that, since 2000, KRS’ becoming more divergent and noted that, while create unique situations where employees, employers, administrative costs have increased 247 percent, 63 attending KRS Board meetings, one could get a sense and the trustees have conflicted duties or interests. percent of which CERS is responsible for paying. of how difficult, diverse, and unique the plans are and Kentucky Government Retirees Using FY 2018, CERS administrative expenses totaled how difficult of a charge the KRS Board of Trustees Jim Carroll, on behalf of Kentucky Government $20 million of the $32 million total reported by KRS. has to administer them. As the plans become more Retirees (KGR), commented that the discussion of In comparison, a report from October 3rd conducted divergent, particularly in their funding status, the stabilizing retirement plans within the state is being by an outside actuarial firm hired by KLC reported more difficult it becomes for one board of trustees to sidetracked by this issue of separation, which was that administrative expenses for a separated CERS give adequate due diligence, care, and focus to all of resolved decades ago when KRS was consolidated. system would cost approximately $8 to $10 million the plans as there is a limited bandwidth within the Separation of CERS would create no tangible gain or per year. Ms. Carroll discussed recent changes to board and for the staff at KRS. KSBA has an interest benefit to taxpayers, would not save taxpayer money, the KRS Board, saying legislation in 2013 and 2017 in the separation proposal. KSBA believes that a would create a new redundant bureaucracy, and increased the majority of unelected trustees, all of separated CERS plan can provide a laser focus to would result in higher fees for the remaining KRS whom are appointed by the Governor. their plan, can provide investment decisions for CERS funds. The administration of CERS would be a large Ms. Carroll discussed the proposed CERS that make sense for that plan, and also that the other new unfunded mandate that would burden an already separation, which is supported by a coalition of 25 plans, like KERS, have a proper focus provided to understaffed KRS organization. Mr. Carroll expressed employer and employee groups. Separation would them as well. concern over the length, cost, and administration of create a new CERS Board, which would be free of Kentucky Association of School any transition. The transition should be limited to one political influence and solely focused on making Superintendents year in length, all costs should be borne by CERS, and decisions to ensure continued growth of the plan. Dr. Tom Shelton noted there are roughly 47,000 that a mediator should be appointed to manage the Details of the proposal included the creation of a classified employees across the 173 public school transition. A provision should be included that would nine member board, which would include the three districts who are performing needed tasks daily for limit CERS from poaching top KRS employees, who currently elected CERS representatives from the KRS the benefit of the children of the Commonwealth. are saddled under the personnel system and receiving Board, three appointed members with 10 years of The Kentucky Association of School Superintendents limited raises, during the transition. KPR believes investment experience, and three appointed members (KASS) believes there are many compelling reasons separation is a bad idea at exactly the wrong time. with 10 years of retirement management experience. shared that would indicate reasons for a CERS Senator Higdon commented on his concern that The PPOB would still have oversight of the separated separation and noted that CERS separation is one of two different and separately administered systems CERS Board. KASS’ strongest legislative priorities. could lead to increased administrative costs. He Ms. Carroll said that SB 226 initially provided for Kentucky Professional Fire Fighters encouraged a thorough examination of any impact a one-year transition period, but KRS staff requested Joe Baer noted that with the reform packages before anything is done. a longer separation period. As a result, the proposed from 2003, 2008, 2013, and with SB 151 this past year, In response to a question from Mr. Chilton bill calls for an immediate separation of CERS, thus there has been a continual reduction of retirement regarding their organizations’ ultimate position on creating a board, but then allowing for a transition benefits, which is causing problems with the retention separation, Mr. Totten said KPR would like to see a period of up to five years during which CERS could and recruitment of fire fighters. He highlighted that full review conducted before taking a position. Mr. contract with KRS for services. most firefighters do not participate in Social Security, Carroll stated that KGR would be adamantly opposed Kentucky Association of Counties so CERS represents their sole retirement option. if the decision for separation was similar to the model Shellie Hampton noted that Kentucky Given these characteristics, along with several other created by SB 226, but would possibly consider Association of Counties (KACo) had supported reasons expressed during the meeting, the Kentucky its position if a proposal was based on another the separation of CERS from KRS for the past five Professional Fire Fighters are in favor of separating organizational scheme. years. KACo believes that a separate board can CERS. Kentucky League of Cities employ a laser focus on CERS, based on the singular Ms. Carroll discussed that changes made in 2013, Bryanna Carroll presented on behalf of the performance of CERS, something which cannot which created the hybrid cash balance plan, has put Kentucky League of Cities (KLC). She said that occur today with CERS holding only 35 percent of the CERS plans on an upward trajectory. While there separation of CERS had been a top legislative priority the KRS Board. KACo had intentionally included continues to be much discussion regarding the health of the KLC Board and KLC membership since 2015. specific requirements in SB 226 regarding who could of other plans and the need for systemic changes, this KLC firmly believes that separation is the best path be included on the new CERS Board and highlighted is not the case for CERS. To better evaluate CERS, forward to deal with management and administration a few of those trustee requirements. KLC hired its own actuary and has produced data concerns and to ensure CERS sees continued growth. Ms. Hampton said that KACo has members that shows CERS will be fully funded by the end of

60 2018 Interim LEGISLATIVE RECORD the period. She emphasized the timely matter of this Hampton stated there has been no concerns about Safety and Health Review Commission; Stephanie topic due to KRS undergoing an experience study the handling of calls or the ability of KRS to counsel Bowker, Patrick O’Connor, Department of Insurance; soon and referenced that, during the presentation retirees or employees. In a response to a follow up Jonathan Scott, Department for Medicaid Services; of the last experience study to the KRS Board, the question regarding the investment of CERS funds, Stephanie Brammer-Barnes, David McMahan, Office CERS data was not presented, yet decisions and Ms. Carroll stated KRS has indicated they combine Inspector General. recommendations were made for all plans based only funds from each of the plans for investment purposes, LRC Staff: Sarah Amburgey, Stacy Auterson, on the KERS data. but each is accounted for separately. Some would say Emily Caudill, Betsy Cupp, Ange Darnell, Emily In response to questions from Senator Higdon, that this combination of funds is commingling even Harkenrider, Karen Howard, and Carrie Klaber. Ms. Carroll stated a separated CERS would be a though they are accounted for separately. In response The Administrative Regulation Review creature of statute, so the General Assembly would to a follow up question regarding any drawbacks or Subcommittee met on Tuesday, October 9, 2018, and still have oversight and be subject to PPOB oversight. risk to separation, Ms. Hampton stated that the only submits this report: She referenced the Lexington Police and Firefighters down side of separating at this point is it will be a new Administrative Regulations Reviewed by the Retirement Plan and indicated that a separated CERS system with obvious growing pains. Subcommittee: plan would operate in a similar fashion. In addition, In response to a question from Senator Higdon FINANCE AND ADMINISTRATION Ms. Carroll confirmed that the current unfunded proposing a statutory cap on administrative costs, CABINET: Department of Revenue: Income Tax; liability of CERS would move with the CERS plan Ms. Carroll indicated KLC would have to look at General Administration upon separation. Regarding Senator Higdon’s follow the matter further, but she did not see a problem 103 KAR 15:041. Repeal of 103 KAR 15:040 and up question concerning the state’s liability for the with statutory language that would cap CERS at an 103 KAR 15:090. Todd Renner, executive director of debt of the new system, Mr. Kennedy and Ms. industrial standard percentage for administrative tax policy, represented the department. Carroll noted that due to the inviolable contract costs. 103 KAR 15:110. Ethanol tax credit. with the Commonwealth the ultimate answer is Senator Schroder gave Mr. Carroll and Mr. A motion was made and seconded to approve difficult to ascertain. Given the limited history of Totten the opportunity to respond with regards the following amendments: to amend Sections 1, 3, cities and counties failing, this is a question of first to the question of board representation and asked and 4 to comply with the drafting and formatting impression. KLC was hiring outside attorneys to help both representatives if their organizations would requirements of KRS Chapter 13A. Without objection, with this topic and going forward hope to have more be in favor of or opposed to CERS having more and with agreement of the agency, the amendments clarity. In response to a follow up question regarding representation. Mr. Carroll stated that he believed were approved. outsourcing, Ms. Carroll noted that a separated KRS was no longer an independent agency and that 103 KAR 15:120. Cellulosic ethanol tax credit. CERS Board would likely consider outsourcing. KERS, CERS, and the State Police Retirement System A motion was made and seconded to approve Senator Higdon commented on the trend toward are all under represented. Mr. Carroll agreed that he the following amendments: to amend Sections 1 and consolidation in other states, including Tennessee. had no problem with proportional representation 4 to comply with the drafting requirements of KRS In response to questions from Senator Schroder, of the elected representatives on the basis of the Chapter 13A. Without objection, and with agreement Ms. Carroll stated that CERS would pay their holdings of assets. Mr. Totten stated he felt the board of the agency, the amendments were approved. obligations for any administrative costs associated membership should be legislatively mandated. 103 KAR 15:140. Biodiesel tax credit. with CERS during the transition. CERS would be In response to a question from Representative A motion was made and seconded to approve separated immediately so a new board could be Johnson, Mr. Totten stated that KRS should be asked the following amendments: to amend Sections 3 and created, but services could be contracted with KRS how there was a 247 percent increase in administrative 5 to comply with the drafting requirements of KRS for up to five years. Employers of CERS, as a shared costs. Chapter 13A. Without objection, and with agreement retirement plan, would share in the cost resulting With no further business, the meeting was of the agency, the amendments were approved. from the unlikely event a city failed to meet their adjourned. The next regularly scheduled meeting is Income Tax; Corporations liabilities. The inviolable contract is listed as an Monday, October 22, 2018. 103 KAR 16:011. Repeal of 103 KAR 16:010, 103 agreement between the CERS members and the KAR 16: 210, 103 KAR 16: 310, and 103 KAR 16:360. Commonwealth. ADMINISTRATIVE REGULATION Income Tax; Individual Representative Simpson asked about the state 103 KAR 17:042. Repeal of 103 KAR 17:041. liability and whether CERS would be opposed to REVIEW SUBCOMMITTEE 103 KAR 17:100. Division of income between indemnifying the state if separation occurs. In Minutes of the October Meeting married individuals filing separate tax returns. response, Ms. Hampton indicated that she could of the 2018 Interim A motion was made and seconded to approve October 9, 2018 not take a position and would have to consult with the following amendments: to amend the RELATES her board, and Ms. Carroll stated that KLC could Call to Order and Roll Call TO paragraph and Sections 1 and 2 to comply with not agree to it at this time. In a follow up regarding The October meeting of the Administrative the drafting and formatting requirements of KRS administrative costs, Ms. Carroll stated that she would Regulation Review Subcommittee was held on Chapter 13A. Without objection, and with agreement be happy to share the KLC actuary’s administrative Tuesday, October 9, 2018, at 1:00 PM, in Room 149 of of the agency, the amendments were approved. cost analysis. The actuary has reviewed other state the Capitol Annex. Representative David Hale, Chair, 103 KAR 17:130. Individual income tax – plans and that outsourcing is approximately $8 to $10 called the meeting to order, and the secretary called military personnel – nonresidents. million per year. In response to an additional question the roll. A motion was made and seconded to regarding board representation, Ms. Carroll indicated Present were: approve the following amendments: to amend the she did not believe additional seats on the KRS Board Members: Senator Ernie Harris, Co-Chair; RELATES TO and NECESSITY, FUNCTION, AND or a reorganization would provide long term security Representative David Hale, Co-Chair; Senators Perry CONFORMITY paragraphs and Sections 1, 3, and for CERS. B. Clark and Alice Forgy Kerr; Representatives Mary 4 to comply with the drafting requirements of KRS In response to questions from Mr. Chilton Lou Marzian and Jason Petrie. Chapter 13A. Without objection, and with agreement regarding what a separated CERS might look like, Ms. Guests: Todd Renner, Department of Revenue; of the agency, the amendments were approved. Carroll indicated the model would be up to the new Nathan Goldman, Board of Nursing; Amber Arnett, 103 KAR 17:140. Individual income tax – CERS Board and executive director. One option could Karen Waldrop, Department of Fish and Wildlife reciprocity – nonresidents. be very similar to what KRS looks like, but during the Resources; Clint Quarles, Department of Agriculture; A motion was made and seconded to approve the transition period, the board could figure out what is Amy Barker, Law Enforcement Council; Todd following amendments: to amend the NECESSITY, the best approach, whether it would be outsourcing, Allen, Chad Collins, Department of Education; FUNCTION, AND CONFORMITY paragraph keeping it in house, or contracting with others. Ms. B. Dale Hamblin, Robert Swisher, Department of and Sections 3 and 5 to comply with the drafting Workers’ Claims; Jeremy Sylvester, Occupational THE KENTUCKY GENERAL ASSEMBLY 61 and formatting requirements of KRS Chapter 13A. to comply with the drafting requirements of KRS following amendments: to amend the STATUTORY Without objection, and with agreement of the agency, Chapter 13A; and (2) to amend deer management AUTHORITY and NECESSITY, FUNCTION, AND the amendments were approved. permit language for consistency. Without objection, CONFORMITY paragraphs to comply with the Income Tax; Withholding and with agreement of the agency, the amendments drafting requirements of KRS Chapter 13A. Without 103 KAR 18:180. Kentucky economic were approved. objection, and with agreement of the agency, the development acts wage assessment. Wildlife amendments were approved. 103 KAR 18:191. Repeal of 103 KAR 18:190, 103 301 KAR 4:090. Buying and selling of inedible Purchase of Agricultural Conservation KAR 18:200, 103 KAR 18: 210, and 103 KAR 18:220. wildlife parts. Easement Corporation BOARDS AND COMMISSIONS: Board of A motion was made and seconded to approve the 302 KAR 100:011. Repeal of 302 KAR 100:010. Nursing following amendments: to amend Sections 1 through In response to questions by Co-Chair Harris, Mr. 201 KAR 20:057. Scope and standards of practice 3 to comply with the drafting requirements of KRS Quarles stated that there was still a voluntary ability of advanced practice registered nurses. Nathan Chapter 13A. Without objection, and with agreement for the department to receive land donations. There Goldman, general counsel, represented the agency. of the agency, the amendments were approved. was currently a purchase project in the Fort Campbell TOURISM, ARTS, AND HERITAGE CABINET: DEPARTMENT OF AGRICULTURE: Office of area. The voluntary program was implemented by Department of Fish and Wildlife Resources: Fish the State Veterinarian: Livestock Sanitation statute. 301 KAR 1:015. Boat and motor restrictions. 302 KAR 20:211. Repeal of 302 KAR 20:210. 302 KAR 100:021. Repeal of 302 KAR 100:020. Amber Arnett, counsel, and Karen Waldrop, deputy Clint Quarles, counsel, represented the department. JUSTICE AND PUBLIC SAFETY CABINET: commissioner, represented the department. A motion was made and seconded to approve the Department of Corrections: Kentucky Law 301 KAR 1:132. Sale of live bait. following amendments: to amend the STATUTORY Enforcement Council Game AUTHORITY and NECESSITY, FUNCTION, AND 503 KAR 1:110 & E. Department of Criminal 301 KAR 2:225 & E. Dove, wood duck, teal, and CONFORMITY paragraphs and Section 1 to comply justice Training basic training graduation other migratory game bird hunting. with the drafting requirements of KRS Chapter 13A. requirements; records. Amy Barker, assistant general In response to questions by Representative Without objection, and with agreement of the agency, counsel, represented the department. Marzian, Ms. Waldrop stated that this administrative the amendments were approved. EDUCATION AND WORKFORCE regulation pertained to the Western Goose Zone, to 302 KAR 20:221. Repeal of 302 KAR 20:220. DEVELOPMENT CABINET: Board of Education: which migratory geese came from St. John’s Bay. That A motion was made and seconded to approve the Department of Education: School Terms, Attendance, was a small population of geese in the past; however, the following amendments: to amend the STATUTORY and Operation population was now stable and hunting opportunities AUTHORITY and NECESSITY, FUNCTION, AND 702 KAR 7:065. Designation of agent to manage could be expanded. This administrative regulation CONFORMITY paragraphs and Section 1 to comply middle and high school interscholastic athletics. was unrelated to matters of deer management. with the drafting requirements of KRS Chapter 13A. Todd Allen, deputy general counsel, represented A motion was made and seconded to approve Without objection, and with agreement of the agency, the department, and Chad Collins, general counsel, the following amendments: to amend Sections 2 and the amendments were approved. represented the Kentucky High School Athletic 3 to comply with the drafting requirements of KRS 302 KAR 20:231. Repeal of 302 KAR 20:230. Association. Chapter 13A. Without objection, and with agreement A motion was made and seconded to approve the A motion was made and seconded to approve of the agency, the amendments were approved. following amendments: to amend the STATUTORY the following amendments: to amend Sections 4 and Hunting and Fishing AUTHORITY and NECESSITY, FUNCTION, AND 6 to comply with the drafting requirements of KRS 301 KAR 3:022. License, tag, and permit fees. CONFORMITY paragraphs and Section 1 to comply Chapter 13A. Without objection, and with agreement In response to a question by Senator Clark, Ms. with the drafting requirements of KRS Chapter 13A. of the agency, the amendments were approved. Waldrop stated that the fifteen (15) day nonresident Without objection, and with agreement of the agency, LABOR CABINET: Department of Workers’ fish license, which was rarely used, was being the amendments were approved. Claims discontinued. Nonresidents could still purchase the 302 KAR 20:541. Repeal of 302 KAR 20:054. 803 KAR 25:089 & E. Workers’ Compensation seven (7) day license. A motion was made and seconded to approve the Medical Fee Schedule for Physicians. B. Dale In response to questions by Representative following amendments: to amend the STATUTORY Hamblin, Jr., assistant general counsel, and Robert Petrie, Ms. Waldrop stated that approximately eight AUTHORITY and NECESSITY, FUNCTION, AND Swisher, commissioner, represented the department. (8) months ago the department increased hunting CONFORMITY paragraphs and Section 1 to comply In response to questions by Co-Chair Harris, Mr. and fishing fees for Kentucky residents. These fee with the drafting requirements of KRS Chapter 13A. Swisher stated that reimbursement was based on the increases were part of the department’s long-term, Without objection, and with agreement of the agency, CPT code, of which there were 7,400. The fee schedule strategic plan to address costs. Many department fees the amendments were approved. was updated every two (2) years. Stakeholders were had not been raised in the past decade and, in some 302 KAR 20:561. Repeal of 302 KAR 20:056. involved in fee reimbursement development, and cases, longer. The department intended to analyze the A motion was made and seconded to approve the reimbursement rates were adjusted in response to fee structure every four (4) to five (5) years. These following amendments: to amend the STATUTORY stakeholder input. Generally, reimbursement rates in- increases were based on a two (2) to three (3) year AUTHORITY and NECESSITY, FUNCTION, AND creased; however, increases or decreases were capped analysis of agency expenditures. All department CONFORMITY paragraphs to comply with the at twenty (20) percent juxtaposed to the prior rate. revenue was generated from fees or federal funds. drafting requirements of KRS Chapter 13A. Without There were no significant increases. In response to questions by Co-Chair Hale, Ms. objection, and with agreement of the agency, the In response to a question by Representative Waldrop stated that the nonresident youth elk hunt fee amendments were approved. Petrie, Mr. Hamblin stated that, in order to determine was being increased from forty (40) dollars to $200, 302 KAR 20:571. Repeal of 302 KAR 20:057. reimbursement rates, the department contracted with making the fee commensurate with those for similar A motion was made and seconded to approve the a data-collection agency that analyzed rates pursuant permits. Very few nonresident youth elk hunt permits following amendments: to amend the STATUTORY to individual CPT codes. had been is-sued. The department would follow up AUTHORITY and NECESSITY, FUNCTION, AND A motion was made and seconded to approve the with more detailed revenue information, but these fee CONFORMITY paragraphs to comply with the following amendments: to amend the STATUTORY increases were forecast to provide approximately $1.9 drafting requirements of KRS Chapter 13A. Without AUTHORITY paragraph and Sections 3 and 4 million more in revenue. objection, and with agreement of the agency, the to comply with the drafting requirements of KRS A motion was made and seconded to approve the amendments were approved. Chapter 13A. Without objection, and with agreement following amendments: (1) to amend the NECESSITY, 302 KAR 20:581. Repeal of 302 KAR 20:058. of the agency, the amendments were approved. FUNCTION, AND CONFORMITY paragraph A motion was made and seconded to approve the Occupational Safety and Health Review

62 2018 Interim LEGISLATIVE RECORD Commission deferred or removed from the October 9, 2018, Homes and Recreational Vehicles 803 KAR 50:010. Hearings: procedure, subcommittee agenda: 815 KAR 25:001. Definitions for 815 KAR disposition. Jeremy Sylvester, executive director, rep- STATE BOARD OF ELECTIONS: Forms and Chapter 025. resented the commission. Procedures 815 KAR 25:020. Recreational vehicles. A motion was made and seconded to approve 31 KAR 4:100 & E. Evaluation of precinct 815 KAR 25:040. Fire safety requirements in the following amendments: to amend the TITLE; the election officers. manufactured and mobile homes. NECESSITY, FUNCTION, AND CONFORMITY BOARDS AND COMMISSIONS: Board of 815 KAR 25:060. Licensing and certifications paragraph; and Sections 3, 9, 15, 16, 19, 20, 26 Podiatry with manufactured homes and mobile homes. through 29, 33, 36, 38, 40, 43, and 55 to comply with 201 KAR 25:090. Prescribing and dispensing 815 KAR 25:081. Repeal of 815 KAR 025:070 the drafting and formatting requirements of KRS controlled substances. Tony Cotto, executive advisor, and 815 KAR 025:080. Chapter 13A. Without objection, and with agreement represented the board. 815 KAR 25:100. Alternative dispute resolution of the agency, the amendments were approved. Mr. Cotto requested deferral of this and mediation program. PUBLIC PROTECTION CABINET: administrative regulation with the intent of Electrical Division Department of Insurance: Health Insurance Contracts withdrawing then refiling. A motion was made and 815 KAR 35:015. Certification of electrical 806 KAR 17:570. Minimum standards for seconded, to agree to defer consideration of this inspectors. Medicare supplement insurance policies and administrative regulation. Without objection, and 815 KAR 35:020. Electrical inspections. certificates. Stephanie Bowker, program manager, with agreement of the agency, this administrative 815 KAR 35:080. Electrical code of ethics. and Patrick O’Connor II, deputy commissioner, regulation was deferred. 815 KAR 35:101. Repeal of 815 KAR 035:100. represented the department. JUSTICE AND PUBLIC SAFETY CABINET: Department of Charitable Gaming A motion was made and seconded to approve Department of Corrections: Office of the Secretary 820 KAR 1:001. Definitions. the following amendments: to amend the RELATES 501 KAR 6:999. Corrections secured policies 820 KAR 1:005. Charitable gaming licenses and TO paragraph and Sections 1 through 3, 5 through and procedures. exemptions. 12, 14, 16 through 17, 19 through 20, 22, and 26 Pursuant to KRS 61.810(1)(k), 61.815(2), and 820 KAR 1:011. Repeal of 820 KAR 1:010, 1:015, through 27 to comply with the drafting requirements 197.025(6), the subcommittee needs to go into closed 1:016, 1:017, 1:026, 1:027, 1:028, 1:029, 1:033, 1:034, of KRS Chapter 13A. Without objection, and with session to review this administrative regulation. 1:036, 1:044, 1:056, 1:058, 1:100, 1:110, 1:120. agreements of the agency, the amendments were TRANSPORTATION CABINET: Department 820 KAR 1:025. Reports. approved. of Vehicle Regulation: Administration 820 KAR 1:032. Pulltabs. CABINET FOR HEALTH AND FAMILY 601 KAR 2:030 & E. Ignition interlock. 820 KAR 1:042. Bingo. SERVICES: Commissioner’s Office: Administration LABOR CABINET: Workers’ Compensation 820 KAR 1:050. Raffles. 900 KAR 1:091. Repeal of 900 KAR 1:090. Funding Commission 820 KAR 1:055. Charity fundraising event Jonathan Scott, regulatory and legislative advisor, 803 KAR 30:021. Repeal of 803 KAR 030:020. standards. represented the office. PUBLIC PROTECTION CABINET: 820 KAR 1:057. Recordkeeping. Office of Inspector General Department of Housing, Buildings and Construction 820 KAR 1:060. Prohibited conduct. 906 KAR 1:190. Kentucky National Background 815 KAR 2:030. Vehicle identification. 820 KAR 1:125. Gaming inspections. Check Program (NBCP). Stephanie Brammer – 815 KAR 2:040. Fees and refunds. 820 KAR 1:130. Administrative actions. Barnes, regulation coordinator, and David McMahan, Building Code Enforcement: Elevator Safety 820 KAR 1:135. Disposal of gaming supplies. program manager, represented the office. 815 KAR 4:071. Repeal of 815 KAR 004:040, CABINET FOR HEALTH AND FAMILY In response to questions by Co-Chair Harris, 815 KAR 004:050, 815 KAR 004:060, and 815 KAR SERVICES: Department for Public Health: Division Ms. Brammer – Barnes stated that these requirements 004:070. of Public Health Protection and Safety: Radiology were mandatory for state-owned facilities and Kentucky Building Code 902 KAR 100:018. Repeal of 902 KAR 100:017, voluntary for privately owned facilities. Mr. McMahan 815 KAR 7:070. The Kentucky Certified Building 902 KAR 100:060, and 902 KAR 100:090. stated that the disqualifier for checks with insufficient Inspector Program. 902 KAR 100:052. Specific domestic licenses of funds was being re-moved due to frequency and Division of Heating, Ventilation, and Air broad scope for by product material. because most incidents did not result in follow-up Conditioning: Heating, Ventilation, and Air Department of Community Based Services: action. Ms. Brammer – Barnes stated that background Conditioning Licensing Requirements Division of Family Support: Supplemental Nutrition disqualifiers for other programs in the cabinet were 815 KAR 8:010. Licensing requirements Assistance Program similar but sometimes differed slightly, depending on for master contractors and journeyman HVAC 921 KAR 3:025. Technical requirements. the program. mechanics. 921 KAR 3:035. Certification process. In response to questions by Representative 815 KAR 8:030. Apprentice HVAC mechanic The subcommittee adjourned at 1:45 p.m. The Petrie, Ms. Brammer – Barnes stated that the registration and certification requirements. next meeting of the subcommittee is tentatively program was voluntary since 2012 because legislation 815 KAR 8:091. Repeal of 815 KAR 008:020, 815 scheduled for November 13, 2018, at 1 p.m. to make the background checks mandatory had yet KAR 008:035, 815 KAR 008:050, 815 KAR 008:060, to be approved by the General Assembly. The office 815 KAR 008:090, and 815 KAR 008:095. agreed to provide follow-up data to the subcommittee Division of Plumbing: Boilers and Pressure showing participation percentages among facilities Vessels that may voluntarily participate in the background 815 KAR 15:080. Boiler and pressure vessel checks. The cost of a fingerprint-supported back- licenses. ground check was sixty-three (63) dollars. Many Plumbing facilities opted to use a name-based, state-only 815 KAR 20:030. Plumbing licenses. background check, which was twenty (20) dollars. 815 KAR 20:041. Repeal of 815 KAR 020:012, Department for Medicaid Services: Medicaid 815 KAR 020:015, 815 KAR 020:018, 815 KAR Services 020:032, 815 KAR 020:034, and 815 KAR 020:040. 907 KAR 1:121. Repeal of 907 KAR 1:120 and Division of Fire Prevention: Fire Protection, 907 KAR 1:130. Johnathan Scott, regulatory and Sprinkler Contractors, and Inspectors legislative advisor, represented the department. 815 KAR 22:011. Repeal of 815 KAR 022:010. The following administrative regulations were Building Code Enforcement: Manufactured

THE KENTUCKY GENERAL ASSEMBLY 63 2019 Prefiled Bills

154A.030 to prohibit owners of professional BR21 - Representative Rob Rothenburger, BR3 - Senator Gerald Neal sports teams from serving on the board; amend Representative Mark Hart (6/6/2018) KRS 154A.050 and 154A.060 to include (9/4/2018) sports wagering; amend 154A.063 to allow AN ACT relating to racial and ethnic the corporation to accept wagers on collegiate AN ACT relating to fire protection and community criminal justice and public safety and professional sports contests; amend KRS making an appropriation therefor. impact statements. 154A.065 to prohibit sports wagers on horse Amend KRS 95A.520 and Create new sections of KRS racing; amend KRS 154A.070 to include 95A.540, relating to volunteer fire department Chapters 6 and 15A to make legislative sports wagering; amend KRS 154A.090 to mergers, to make it applicable to volunteer findings and require racial and ethnic include sports wagering retailers; amend KRS fire departments merging prior to the effective community criminal justice and public safety 154A.110 to prohibit sales of sports wagers date of the Act; create a new section of KRS impact statements for certain legislation and to persons under 18 years of age, provide for Chapter 95A to provide that for volunteer fire administrative regulations. the allocation of unclaimed sports wager prize departments merging after the effective date of (Prefiled by the sponsor(s).) money, and restrict owners, coaches players, the Act, the Fire Commission shall pay to the and others involved in a sporting contest from departments the number of qualified shares of BR4 - Senator Gerald Neal placing sports wagers; create new sections of volunteer fire department aid each is entitled (6/6/2018) KRS Chapter 154A to permit sports wagering to for a period of 20 years after the date of at lottery retailers, horse racing tracks, and the merger, upon the expiration of which the AN ACT relating to prosecutions under simulcast facilities; require the corporation to merged department receives only one share; criminal gang statutes. promulgate administrative regulations needed provide contingency protocols if the merged Create a new section of KRS to establish and oversee sports wagering and fire department becomes unqualified; create a Chapter 506 to require a report for any charge prohibit participants in sporting events from new section of KRS Chapter 95A to provide or conviction under KRS 506.120, 506.135, placing wagers on games in which they are a contingency protocol if a new volunteer fire 506.140, 506.150, 506.160, 506.170, 506.180, participating; create new sections of KRS department is created out of the merged one or 506.190. Chapter 154A to establish the sports wagering during the 20 year period; create new sections (Prefiled by the sponsor(s).) distribution trust fund and a problem gambling of KRS Chapter 75 to allow an alternative awareness and treatment fund and limit uses of tax rate and board structure for fire districts BR7 - Representative DJ Johnson the sports wagering revenue to administrative electing to do so; set tax rate at a maximum (6/27/2018) costs, problem gambler treatment funding, and of $0.15 for a district, and maximum of $0.25 pension system funding; amend KRS 154A.120 for a district operating the sole emergency AN ACT relating to property taxes for to include sports wagering; amend KRS ambulance service and make the tax subject veteran service organizations. 154A.130 to exempt sports wagering receipts to the recall provisions; establish a seven Create a new section of KRS and specify that sports wagering receipts shall member board of which one is appointed by Chapter 132 to allow any veteran service be deposited in the sports wagering distribution the county executive head, four are elected by organization that is exempt from federal trust fund; amend KRS 154A.400 and persons owning property within the district, income tax under Section 501(c)(19) of the 154A.410 to include sports wagering; amend and two are firefighters of the districts elected United States Internal Revenue Code to be KRS 154A.420 to include sports wagering and by the firefighters of the district; set election exempt from all city and county property allow the corporation to require a retailer to procedures and times; amend KRS 132.023, taxes, if certain conditions are met; authorize establish a separate sports wagering electronic relating to tax recall provisions, to integrate the Department of Revenue to promulgate funds transfer account, where available; amend applicable fire districts, as defined in the administrative regulations. KRS 154A.430 to include sports wagering; section, within the scope of the section. (Prefiled by the sponsor(s).) amend KRS 154A.440 to require retailers to (Prefiled by the sponsor(s).) accept sports wagers only at the location listed BR15 - Representative Dennis Keene on their contract; amend KRS 154A.600 and BR22 - Representative Mary Lou Marzian (9/7/2018) 154A.650 to include sports wagering; amend (8/22/2018) KRS 154A.990 to establish penalties for selling AN ACT relating to sports wagering a sports wager to anyone under 18 years of AN ACT relating to public charter and making an appropriation therefor. age, to establish the crime of tampering with schools. Create a new section of the outcome of a sporting event, to prohibit Amend KRS 156.095 to KRS Chapter 154A to require the Kentucky participants from wagering on a sporting event, remove references to public charter schools; Lottery Corporation to institute a sports and establish penalties; APPROPRIATION. repeal KRS 160.1590, 160.1591, KRS wagering system; amend KRS 154A.010 to (Prefiled by the sponsor(s).) 160.1592, 160.1593, 160.1594, 160.1595, define “collegiate sports contest,” “net sports 160.1596, 160.1597, 160.1598, 160.1599, and wagering receipts,” “professional sports 161.141. contest,” and “sports wagering”; amend KRS

64 2018 Interim LEGISLATIVE RECORD (Prefiled by the sponsor(s).) to apportionment of fixed, direct capital costs trust fund and appropriate moneys from that for metering, billing, connection, and service; fund; amend KRS 230.320 to include sports BR24 - Representative John Blanton amend KRS 278.190 to allow the commission wagering among the activities that are regulated (9/20/2018) to examine the determination of costs and apply by the racing commission; amend KRS 230.360 standards for rates that include affordability to include sports wagering among the activities AN ACT relating to the taxation of and balancing of interests of various parties that are not subject to local control; amend KRS pension income, making an appropriation affected by the rate; amend KRS 278.255 to 230.990 to establish penalties for tampering therefor, and declaring an emergency. require a management and operations audit with the outcome of a sporting event and Amend KRS 141.019 to beginning December 31, 2019, and every five participant wagering on a sporting event, amend increase the pension income exclusion from years thereafter and to require the results of the KRS 243.500 to exempt sports wagering. $31,110 to $41,110; declare this Act to apply audit be made available on the Public Service (Prefiled by the sponsor(s).) retroactively for taxable years beginning on or Commission and each audited utility’s Web after January 1, 2018; require the Department site; exempt electric distribution cooperatives BR31 - Representative Attica Scott of Revenue to automatically issue refunds; from the initial and periodic audit requirements; (7/24/2018) APPROPRIATION; EMERGENCY. amend KRS 278.260 to require the Public (Prefiled by the sponsor(s).) Service Commission to give the Office of the AN ACT relating to public charter Attorney General’s Office of Rate Intervention schools. BR25 - Senator John Schickel notice of any investigation into unreasonable or Amend KRS 156.095 to (8/28/2018) discriminatory rates, measurements or practices remove references to public charter schools; by a utility under its jurisdiction. repeal KRS 160.1590, KRS 160.1591, KRS Honor the life and (Prefiled by the sponsor(s).) 160.1592, KRS 160.1593, KRS 160.1594, KRS accomplishments of Jack Reno. 160.1595, KRS 160.1596, KRS 160.1597, KRS (Prefiled by the sponsor(s).) BR29 - Senator Julian Carroll 160.1598, KRS 160.1599, and KRS 161.141. (6/15/2018) (Prefiled by the sponsor(s).) BR26 - Senator John Schickel (8/28/2018) AN ACT relating to sports wagering BR32 - Representative Attica Scott and making an appropriation therefor. (6/21/2018) Honor Judge Charles T. Moore Create a new section of KRS upon the occasion of his retirement. Chapter 230 to require the Kentucky Horse AN ACT relating to the investigation (Prefiled by the sponsor(s).) Racing Commission to institute a sports of a shooting or deadly incident by a law wagering system; amend KRS 230.210 to enforcement officer. BR27 - Senator John Schickel define “exempt sports contest,” “net sports Create new sections of (8/24/2018) wagering receipts,” “sports wagering,” and KRS Chapter 15A to provide definitions and “sports wagering facility”; amend KRS 230.215 establish an Officer Shooting Review Board Honor Father Richard G. Bolte to declare it the policy of the Commonwealth to investigate any shooting of an individual for his many years of service. to encourage the conduct of wagering on by a law enforcement officer or officers or any (Prefiled by the sponsor(s).) sporting events, and to vest forceful control deadly incident involving law enforcement; set over sports wagering in the racing commission; requirements for board members; provide duties BR28 - Representative Chris Harris, amend KRS 230.225 to include sports of the board; specify requirements related to Representative Angie Hatton wagering and to include consideration of investigatory work performed by the Kentucky (5/30/2018) members of professional and collegiate sports State Police Critical Incident Response Team organizations in the Governor’s appointments on behalf of the board; establish investigatory AN ACT relating to public utilities. to the commission; amend KRS 230.240 to procedures and protocols; provide requirements Create new section of KRS allow the director of the racing commission for submission of the board’s report to the 278.010 to 278.450 to set a residential fixed to take personnel action relating to sports Commonwealth’s attorney of the jurisdiction customer charge to recover no more than fixed wagering; amend KRS 230.260 to include in which the shooting or deadly incident took capital costs for metering, billing, service promotion of fair sports wagering among the place or to the Attorney General; provide connections, and customer service for electric, purposes of the racing commission; create a requirements for independent investigation natural gas, and water utilities; amend KRS new section of KRS Chapter 230 to establish of any shooting of an individual by a law 278.010 to define “customer charge”; amend licensing requirements and establish a licensing enforcement officer or officers or any deadly KRS 278.030 to include affordability as a fee of $250,000; create a new section of KRS incident involving law enforcement. criterion for utility rates and to establish Chapter 230 to require the racing commission (Prefiled by the sponsor(s).) that the policy of the Commonwealth is to to promulgate administrative regulations require costs to be reasonable and to provide prescribing the manner in which sports BR36 - Representative Kim King for their recovery; require the Public Service wagering shall be conducted; provide minimum (6/12/2018) Commission to balance the interests of the criteria; prohibit participants from wagering utility, investors, and consumer in establishing on a sporting event; create a new section of AN ACT proposing an amendment fair, just, reasonable and affordable rates; KRS Chapter 138 to establish a 3 percent tax to Section 42 of the Constitution of Kentucky amend KRS 278.183 to require that the costs on the total amount wagered at sports wagering relating to compensation for members of the paid through the environmental surcharge facilities; create a new section of KRS Chapter General Assembly. and subjected to two year review are subject 230 to establish the sports wagering distribution Propose to amend Section 42 THE KENTUCKY GENERAL ASSEMBLY 65 of the Constitution of Kentucky to prohibit BR65 - Representative Attica Scott members of the General Assembly from BR48 - Senator Gerald Neal (7/31/2018) receiving legislative pay for a special session (6/19/2018) that has been called by the Governor because AN ACT relating to the exemption the General Assembly adjourned without AN ACT relating to firearm storage. certain baby products from sales and use passing a state budget; submit to the voters with Create a new section of KRS taxation. ballot question. Chapter 527 to prohibit the unlawful storage of Amend KRS 139.010 to define (Prefiled by the sponsor(s).) a firearm. “diapers”; amend KRS 139.480 to exempt (Prefiled by the sponsor(s).) from sales and use tax the sale or purchase BR37 - Representative Kim King ofdiapers and certain baby products; provide (7/19/2018) BR51 - Senator Alice Kerr that the exemptions apply to sales or purchases (8/17/2018) made after August 1, 2019, but before August AN ACT relating to legislative 1, 2023; require the Department of Revenue procedures for state fiscal measures. AN ACT relating to pregnancy-related to report to the Interim Joint Committee on Create a new section of KRS discrimination. Appropriations and Revenue the amount of Chapter 6 to require roll call votes on any state Amend KRS 344.030 to exemptions claimed. fiscal measure, including an appropriation include within the definition of “reasonable (Prefiled by the sponsor(s).) or revenue-raising measure, voted upon in accommodation” accommodations made for the Senate or House of Representatives or a pregnancy, childbirth, and related medical BR66 - Representative Walker Wood Thomas, committee thereof; require identification of conditions; define “related medical condition”; Representative Jim DuPlessis, Representative any state fiscal measure by the director of amend KRS 344.040 to make it unlawful for an DJ Johnson the Legislative Research Commission upon employer to fail to accommodate an employee (10/10/2018) request of a legislator, the Senate, the House of affected by pregnancy, childbirth, or a related Representatives, or a committee of the Senate medical condition; require employers to provide AN ACT relating to domestic violence. or House; require separate votes for any state notice to all employees regarding the right to Amend KRS 525.135 to fiscal measure. be free from discrimination for pregnancy, prohibit pretrial diversion for a person charged (Prefiled by the sponsor(s).) childbirth, and related medical conditions. with torture of a dog or cat, to make torture of (Prefiled by the sponsor(s).) a dog or cat a Class D felony, and to prohibit BR45 - Senator Julie Adams any form of early release for those who torture (8/21/2018) BR55 - Representative Mark Hart a dog or cat as a way to threaten, intimidate, (9/14/2018) coerce, harass, or terrorize a family member AN ACT establishing the Kentucky or member of a dating relationship; amend Rare Disease Advisory Council and making an AN ACT relating to local boards of KRS 533.250 to prohibit the pretrial diversion appropriation therefor. education. program from being used for someone charged Create new sections of KRS Amend KRS 160.190 to change with torture of a dog or cat. Chapter 211 to establish the Kentucky Rare a local board vacancy from being appointed by (Prefiled by the sponsor(s).) Disease Advisory Council; list members to be the chief state school officer to being appointed appointed by the Governor; state the duties by a majority vote of the local board; establish BR67 - Representative Rob Rothenburger of the council; require a report of council a timeline and procedures of appointment; (9/7/2018) activities; create a rare disease trust fund to establish a procedure for a failure to make be administered by the Cabinet for Health and appointment by local board; make changes AN ACT relating to local procurement. Family Services to finance the operation of throughout to conform. Amend KRS 45A.385 to the council and support rare disease research (Prefiled by the sponsor(s).) increase from $20,000 to $30,000 the maximum and treatment; require a report on expenditures amount of a contract for which a local public from the fund; provide that the council shall BR64 - Representative Attica Scott agency may use small purchase procedures; to cease to exist on December 1, 2029, unless (7/31/2018) amend KRS 424.260 to allow local officals reestablished by the General Assembly. to make contracts up to $30,000, rather than (Prefiled by the sponsor(s).) AN ACT relating to an exemption of up to $20,000, without taking out newspaper feminine hygiene products from sales and use advertisements for bids. BR47 - Representative Regina Huff taxation. (Prefiled by the sponsor(s).) (9/13/2018) Amend KRS 139.010 to define feminine hygiene products; amend BR69 - Senator Julie Adams AN ACT relating to family resource KRS 139.480 to exempt from sales and use (8/31/2018) and youth services centers. tax the sale or purchase of feminine hygiene Amend KRS 156.496 to allow products; apply to sales or purchases made after AN ACT relating to mental illness. school districts to accept monetary donations August 1, 2019, but before August 1, 2023; Amend KRS 532.130, 532.135, for the operation and maintenace of family require Department of Revenue to report to the and 532.140 to add a diagnosis of serious resource and youth services centers; require Interim Joint Committee on Appropriations and mental illness to the disabilities which prevent that donations be used exclusively for those Revenue the amount of exemptions claimed. execution for persons convicted of capital purposes. (Prefiled by the sponsor(s).) offenses. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).)

66 2018 Interim LEGISLATIVE RECORD Honor the life and (Prefiled by the sponsor(s).) BR72 - Representative Dennis Keene accomplishments of William “Bill” Edgar (9/7/2018) Graves. BR103 - Representative (Prefiled by the sponsor(s).) (7/20/2018) AN ACT relating to exempting admissions to events held by nonprofit BR94 - Representative David Meade AN ACT relating to minimum staffing organizations from sales and use taxation. (9/6/2018) requirements for long-term care facilities. Amend KRS 139.470 to Create new sections of KRS exempt from sales and use tax the sale of AN ACT relating to the taxation of Chapter 216B to require staff-to-resident ratios admissions to events held by nonprofit admissions for sales and use tax. in long-term care facilities as a condition of organizations and to remove the specific Amend KRS 139.010 to licensure or relicensure; establish minimum exemption for county fairs to conform; amend exclude fees paid to enter or participate in staffing requirements; prohibit long-term care KRS 139.200 to conform; apply to transactions a fishing tournament and fees paid for the facilities from admitting new residents if the occuring on or after July 1, 2019. usage of a boat ramp from the definition of facility fails to comply with the minimum (Prefiled by the sponsor(s).) admissions; apply to fees paid on or after July staffing requirements, beginning on the second 1, 2018. day of noncompliance and continuing until six BR76 - Representative David Osborne, (Prefiled by the sponsor(s).) days after the required staffing is achieved, with Representative Lynn Bechler, Representative exceptions allowed for weather emergencies Danny Bentley, Representative John Blanton, BR96 - Representative Robert Goforth and other similar events; require additional Representative , Representative (9/24/2018) staffing based on the needs of the residents; Larry Brown, Representative John Carney, exempt intermediate-care facilities for persons Representative Myron Dossett, Representative Direct the Transportation with intellectual disabilities, institutions for Jim DuPlessis, Representative Daniel Elliott, Cabinet to designate a bridge on Interstate 75 in the treatment of mental illnesses, personal Representative Joseph Fischer, Representative Laurel County in honor and memory of fallen care homes, and family care homes from Ken Fleming , Representative Jim Gooch Jr., soldier SFC Lance Scott Cornett. the minimum staffing requirements; create Representative David Hale, Representative (Prefiled by the sponsor(s).) a 17-member board to review staffing Mark Hart, Representative Richard Heath, requirements on an annual basis; establish Representative Regina Huff, Representative BR97 - Representative Robert Goforth a civil fine of no more than $1,000 for each DJ Johnson, Representative Kim King, (10/5/2018) day that the staffing requirements are not Representative Adam Koenig, Representative maintained; establish legislative findings and Stan Lee, Representative Chad McCoy, AN ACT relating to concealed deadly declarations. Representative David Meade , Representative weapons. (Prefiled by the sponsor(s).) Suzanne Miles, Representative Jerry Miller, Amends KRS 527.020, Representative Phil Moffett, Representative 237.110, 237.115, 244.125, and 527.070 to BR106 - Representative Robert Goforth Tim Moore, Representative Kimberly Moser, remove location restrictions for persons with a (9/24/2018) Representative Jason Nemes, Representative concealed deadly weapon license. Jason Petrie, Representative Phillip Pratt, (Prefiled by the sponsor(s).) AN ACT relating to all-terrain vehicles Representative Melinda Prunty, Representative and making an appropriation therefor. Brandon Reed, Representative Sal Santoro, BR98 - Representative Robert Goforth Amend KRS 186.010 to Representative Diane St. Onge, Representative (8/29/2018) specify that for registration purposes an all- Walker Wood Thomas, Representative James terrain vehicle (ATV) shall be considered a Tipton, Representative Tommy Turner AN ACT relating to an emergency motor vehicle; amend KRS 186A.070 to allow (7/13/2018) contact information registry. ATVs operating under this bill to operate on Create a new section of KRS roadways of the Commonwealth; create new AN ACT relating to nonprofit 186.400 to 186.640 to establish an emergency sections of KRS Chapter 189 to allow a person exemptions in taxation and declaring an contact information registry within the to operate an all-terrain vehicle on roadways in emergency. Kentucky Driver’s License Information System. the Commonwealth; outline requirements for Amend KRS 139.495 to (Prefiled by the sponsor(s).) operation; establish a fee of $25 for registration; exempt from sales and use tax the sale of allow a local government to allow or prohibit admissions by nonprofit educational, charitable, BR99 - Representative Robert Goforth ATV operation on roadways in its jurisdiction; or religious institutions; amend KRS 139.200 (10/5/2018) provide for nonresident reciprocity; require to add the exemption; amend KRS 132.195 to the Transportation Cabinet to promulgate exempt from property tax leasehold interests in AN ACT relating to the renewal of administrative regulations; allow nonresidents property owned by a purely public charity when identity documents. to operate an ATV on roadways of the the property and income are used to further the Amend KRS 186.4101 to Commonwealth; outline requirements; establish purely public charity’s mission; EMERGENCY. clarify schedules for renewal of operator’s a fee of $25 for registration; specify that (Prefiled by the sponsor(s).) licenses and personal ID cards; allow registration is valid for one year; amend KRS individuals whose operator’s licenses will 189.515 to specify that the section shall only BR84 - Senator John Schickel expire while they are out of the country to apply to ATVs that have not been registered (9/14/2018) renew those licenses prior to the six-month for highway operation; amend KRS 189.990 to window prior to expiration. establish a fine of $20 to $50 for a violation of THE KENTUCKY GENERAL ASSEMBLY 67 Section 3 or 4 of this Act. procedures for determination of sanctuary not scheduled; provide that an employee may (Prefiled by the sponsor(s).) status; provide for the withholding of state identify time limitations for scheduling work funding from sanctuaries; create new sections hours; establish the rate of compensation to be BR107 - Representative Robert Goforth of KRS Chapter 164 to prohibit postsecondary paid if an employer changes the schedule; set (8/29/2018) educational institutions from enrolling, forth unlawful practices; amend KRS 337.990 employing, or contracting with illegal aliens; to establish a penalty for violations of Sections AN ACT proposing to amend Sections require postsecondary educational institutions 1 to 8 of this Act. 99, 124, and 144 of the Constitution of to keep records of immigration status; provide (Prefiled by the sponsor(s).) Kentucky relating to a Judge of the County for the withholding of state funding from Court. postsecondary educational institutions that BR142 - Representative Joni Jenkins Propose to amend Sections 99, enroll, employ, or contract with illegal aliens; (9/20/2018) 124, and 144 of the Constitution of Kentucky to limit who may be considered a Kentucky eliminate the Office of Judge of County Court resident for in-state tuition purposes. AN ACT relating to leave from in urban-county governments; submit to the (Prefiled by the sponsor(s).) employment for crime victims. voters for approval or disapproval. Amend KRS 337.415, relating (Prefiled by the sponsor(s).) BR138 - Representative Robert Goforth to court-ordered appearances by employees, (8/29/2018) to prohibit employers from discharging or BR120 - Representative Kevin Bratcher retaliating against an employee who is a crime (8/15/2018) AN ACT relating to homestead food victim when the employee takes leave to attend operators and homestead food products. proceedings associated with a crime; require AN ACT relating to the safety of Create a new section in KRS an employee to give an employer reasonable canines and felines. Chapter 217C to define “homestead food notice to take leave when practicable; provide Create a new section of KRS operator,” “potentially hazardous food,” and guidelines for use of paid leave; require the Chapter 411 to provide civil immunity for “homestead food product”; create a new section employer to maintain confidentiality of records damaging a vehicle if a person enters the in KRS Chapter 217C to allow homestead and communication with employee crime vehicle with the reasonable, good-faith belief food operators and homestead food products victim; create a penalty for failing to maintain that a dog or cat is in immediate danger of to be exempt from licensure and permitting as confidentiality; define terms. death if not removed. required by the Cabinet for Health and Family (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) Services; repeal KRS 217C.090, relating to the sale of unpasteurized goat milk. BR144 - Representative Chad McCoy BR121 - Representative Kevin Bratcher (Prefiled by the sponsor(s).) (9/7/2018) (8/15/2018) BR140 - Representative Joni Jenkins, AN ACT relating to charitable gaming. AN ACT relating to an animal abuse Representative McKenzie Cantrell Amend KRS 238.545 to registry. (9/24/2018) remove some of the restrictions on the Create new sections of KRS frequency with which charity fundraising Chapter 17 to establish the animal abuse AN ACT relating to workers’ events may be held at unlicensed facilities. offender registry; require the Kentucky State compensation for first responders. (Prefiled by the sponsor(s).) Police to maintain a registry of offenders who Amend KRS 342.0011 commit an animal abuse offense; establish the to clarify definition of “injury” to include BR155 - Representative Dennis Keene animal abuse offender registry fund; amend psychological injuries for certain employees; (9/10/2018) KRS 525.130 to increase the penalty for cruelty create a new section of KRS Chapter 342 to to animals in the second degree to a Class D set out when the psychological injuries are AN ACT relating to drug treatment felony for a second or subsequent offense; valid workers’ compensation claims when no and prevention and making an appropriation establish a short title of “Arrow’s Law”; physical injury exists. therefor. APPROPRIATION. (Prefiled by the sponsor(s).) Create a new section of KRS (Prefiled by the sponsor(s).) Chapter 222 to establish the Kentucky addiction BR141 - Representative Joni Jenkins prevention, recovery, and enforcement fund; BR134 - Representative Lynn Bechler, (9/20/2018) establish administering committee membership; Representative Brandon Reed direct all revenues from the Commonwealth (9/26/2018) AN ACT relating to employment related to the drug epidemic to the fund; schedules. describe authorized fund expenditures; require AN ACT relating to sanctuary cities Create new sections of KRS fund reporting; APPROPRIATION. and universities. Chapter 337 to require employers to give (Prefiled by the sponsor(s).) Amend KRS 65.133 to require employees a written good-faith estimate of local law enforcement agencies and Kentucky the employee’s work schedule at the time BR156 - Representative Regina Huff State Police to enforce immigration laws; create of hire, maintain a voluntary standby list of (10/3/2018) a new section of KRS Chapter 65 to define employees who wish to work additional hours, terms, including “sanctuary” and “sanctuary post weekly work schedules at least seven days AN ACT relating to the display of the policy”; prohibit local governments from in advance, and provide certain rest periods national motto in public schools. adopting sanctuary policies; establish hearing for employees, during which the employee is Amend KRS 158.195 to require each

68 2018 Interim LEGISLATIVE RECORD public elementary and secondary school to (Prefiled by the sponsor(s).) to pay all new full-time employees whose display the national motto in a prominent jobs were created as a result of the economic location in the school. BR172 - Representative Attica Scott development project no less than the minimum (Prefiled by the sponsor(s).) (9/5/2018) weekly wage and provide employee benefits for those jobs equal to at least 15% of the BR159 - Representative Brandon Reed, AN ACT relating to gang violence. minimum weekly wage established by the Representative Kevin Bratcher, Representative Amend KRS 506.120 to agreement; amend KRS 154.32-030 to delete Mark Hart, Representative Richard Heath, remove language related to “criminal gang all provisions that allow the approved company Representative Melinda Prunty syndicate;” repeal KRS 506.135 relating to to receive full incentives if 90% of the job and (8/16/2018) definitions, 506.140 relating to criminal gang wage requirements are met upon activation recruitment, 506.150 relating to criminal gang or annual review; amend KRS 154.32-040 AN ACT relating to the display of the activity or recruitment, 506.160, relating to to delete a provision that would allow the national motto in public schools. minimum service of sentence for defendant approved company to receive a reduction in Amend KRS 158.195 to require acting as a member of a criminal gang KRS tax incentives for failing to meet job and wage each public elementary and secondary school 506.170 relating to enhancement of penalty for requirements; specify that Act’s provisions to display the national motto in a prominent conviction for criminal gang related felonies, apply to applications preliminarily approved location in the school. KRS 506.180 relating to cause of action by prior to the Act’s effective date. (Prefiled by the sponsor(s).) victim of criminal gang incident, and KRS (Prefiled by the sponsor(s).) 506.190 relating to criminal gang-related BR165 - Representative McKenzie Cantrell, property subject to forfeiture; amend KRS BR177 - Representative Joni Jenkins Representative Joni Jenkins 532.080 to conform. (9/20/2018) (9/24/2018) (Prefiled by the sponsor(s).) AN ACT relating to the AN ACT relating to earned paid sick BR174 - Representative Jeffery Donohue misclassification of employees in the leave. (9/13/2018) construction industry. Create a new section of KRS Create new sections of KRS Chapter 337 to require employers to provide AN ACT relating to public Chapter 337 to set forth legislative findings and earned paid sick leave to employees; provide procurement. declarations behind employee misclassification that employees earn paid sick leave upon the Create new sections of KRS problems; provide definitions; set forth date of hire and can use the leave after being Chapter 45A to set forth findings of the determination of misclassified workers; set employed for 90 days; set forth allowable General Assembly and establish a policy of forth investigation process and violations; uses of earned paid sick time; designate how the Commonwealth of Kentucky to promote establish court remedies; require notice by notice of need to use sick time is provided by the Kentucky and United States economies an employer; grant commissioner authority employees; amend KRS 337.990 to establish by requiring a preference for iron, steel, and to promulgate administrative regulations; penalty for employers that fail to follow paid manufactured goods produced in Kentucky require agencies to share the information of sick leave requirements. and the United States; define “manufactured a misclassifying employer to other interested (Prefiled by the sponsor(s).) in Kentucky,” “manufactured in the United state agencies; amend KRS 337.990 to States,” and “United States”; require preference establish penalties for violations; amend KRS BR166 - Representative McKenzie Cantrell, for iron, steel, and manufactured goods made 45A.485 to prohibit contractors with multiple Representative Joni Jenkins in Kentucky in construction and maintenance violations from contracting with the state for (9/24/2018) contracts and subcontracts; provide for a waiver two years; amend KRS 131.190 to require the of the Kentucky preference requirement; Department of Revenue to provide copies to AN ACT relating to employment require preference for iron, steel, and three other state agencies; create a new section provisions for employees on maternity leave. manufactured goods made in the United States of KRS Chapter 341 to require the Office of Create a new section of KRS if the Kentucky waiver is granted; provide Employment and Training to provide copies Chapter 337 to require employers with 50 or for a waiver of the United States preference of orders to three other state agencies; create a more employees to provide six weeks of paid requirement; establish a short title of “Kentucky new section of KRS Chapter 342 to require the maternity leave for an employee who has Buy American Act”; amend KRS 45A.343, commissioner to provide copies to three other been employed for at least one year; allow an 45A.352, 65.027, 162.070, 164A.575, 176.080, state agencies. employee to waive the paid maternity leave. and 424.260 to require compliance with the (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) Kentucky Buy American Act. (Prefiled by the sponsor(s).) BR178 - Representative Brandon Reed BR168 - Representative Linda Belcher (9/6/2018) (9/12/2018) BR175 - Representative Jeffery Donohue (9/13/2018) AN ACT relating to a youth crossbow AN ACT relating to prevailing wage. deer hunting season. Create new sections of KRS AN ACT relating to economic Create a new section of KRS Chapter 337 to establish a prevailing wage development incentives. Chapter 150 to require the Department of law for all public works projects; amend KRS Amend KRS 154.32.010 to Fish and Wildlife Resources to promulgate 12.020, 99.480, 227.487, 336.015, 337.010, and define” minimum weekly wage”; amend KRS administrative regulations to establish a 337.990 to conform. 154.32-020 to require an approved company statewide youth crossbow deer hunting season; THE KENTUCKY GENERAL ASSEMBLY 69 define terms; require the statewide youth BR202 - Representative Jerry Miller include, as criminal littering, permitting unsafe crossbow deer hunting season to take place (10/15/2018) amounts of mowed grass to remain on a each year on the same dates established by highway. the department for the statewide archery deer AN ACT relating to reemployment of (Prefiled by the sponsor(s).) hunting season; require participants to comply elected officials. with all statewide deer hunting requirements, Amend KRS 61.637 to provide BR212 - Representative Ken Fleming , including supervision requirements for youth that if an elected official participating in one Representative Kimberly Moser deer hunters. of the systems administered by Kentucky (9/26/2018) (Prefiled by the sponsor(s).) Retirement Systems retires and is elected to the same office within 12 months of retiring, his or AN ACT relating to legislative ethics. BR180 - Representative Danny Bentley her retirement shall be voided. Create new sections of KRS (9/20/2018) (Prefiled by the sponsor(s).) 6.601 to 6.849 to make it ethical misconduct for a legislator, legislative agent, or director Urge federal policymakers to BR204 - Representative Robert Goforth of the Legislative Research Commission incorporate standards for safety and efficacy in (10/5/2018) to engage in discrimination, harassment, or the use of medical marijuana. sexual harassment; define “discrimination,” (Prefiled by the sponsor(s).) AN ACT relating to the reporting of “harassment,” “sexual harassment,” and retirement contributions. “workplace complaint”; grant the Legislative BR181 - Representative Jill York Amend KRS 78.625 and Ethics Commission jurisdiction to investigate (8/31/2018) 61.675 to require the Kentucky Retirement and proceed upon receipt of a complaint Systems to notify state and local employers and from an employee of the legislative branch AN ACT relating to accountability of employees if retirement contributions are not regarding discrimination, harassment, or sexual charitable organizations. timely made, to list the potential consequences harassment allegedly committed by a legislator, Create a new section of that may result, and to post on the systems’ Web legislative agent, or director of the Legislative KRS Chapter 367 to require the Office of site the employer’s name and the amount of Research Commission; require that allegations the Attorney General to make available on a delinquent contributions. of discrimination, harassment, or sexual publicly accessible Web site a list of charities (Prefiled by the sponsor(s).) harassment by one employee of the legislative that fail to meet the financial accountability branch against another employee of the standards recommended by the American BR205 - Representative Robert Goforth legislative branch be referred to the Legislative Institute of Philanthropy’s CharityWatch, based (10/19/2018) Research Commission; require the Legislative on a three-year average of annual expenditures. Ethics Commission to establish a legislative (Prefiled by the sponsor(s).) AN ACT relating to county finance. ethics telephone tip line to allow employees Create a new section of KRS of the legislative branch to report complaints BR188 - Senator John Schickel Chapter 68 to require counties found deficient of discrimination, harassment, and sexual (10/12/2018) by the Auditor of Public Accounts to purchase harassment; require the Legislative Ethics insurance covering financial losses; set the Commission and the Legislative Research Honor Robert J. Storer upon term of maintenance and minimum coverage Commission to publicize the existence of the the auspicious occasion of his retirement as the amount. legislative ethics telephone tip line; require Superintendant of the Walton-Verona School (Prefiled by the sponsor(s).) the legislative ethics telephone tip line to be District available 24 hours a day, seven days a week, (Prefiled by the sponsor(s).) BR207 - Representative Regina Huff, with the Legislative Ethics Commission Representative Jill York providing staff during regular business hours BR194 - Senator John Schickel (9/13/2018) and allowing for recorded messages during (9/17/2018) nonbusiness hours; require the forwarding of AN ACT relating to the taxation of information reported on the legislative ethics Honoring Connie Crigger upon pension income, making an appropriation telephone tip line to the executive director being named by the Kentucky Association of therefor, and declaring an emergency. of the Legislative Ethics Commission or School Administrators as Administrator of the Amend KRS 141.019 to his or her designee on an approved form; Year for 2018. increase the pension income exclusion from provide that within 24 hours of the receipt of (Prefiled by the sponsor(s).) $31,110 to $41,110; apply retroactively a workplace complaint that the Legislative for taxable years beginning on or after Ethics Commission executive director make BR198 - Senator John Schickel January 1, 2018; require the Department an initial determination as to whether a (9/17/2018) of Revenue to automatically issue refunds; workplace complaint meets the criteria for APPROPRIATION; EMERGENCY. consideration and notify the complainant of the Adjourn the Senate in honor (Prefiled by the sponsor(s).) determination; provide that the alleged violator and loving memory of Damian Kevin Stanton shall be notified and given the opportunity to (Prefiled by the sponsor(s).) BR208 - Representative Regina Huff file a written response after receiving a written (9/13/2018) statement detailing allegations; provide that within seven days of receiving a response AN ACT relating to road safety. or expiration of the deadline for receiving Amend KRS 512.070 to a response from the alleged violator the

70 2018 Interim LEGISLATIVE RECORD Legislative Ethics Commission chair, vice inquiry, the Legislative Ethics Commission may a driver manual available in printed format, chair, and executive director shall interview dismiss the complaint without prejudice via electronic format, or both, that contains the the complainant, the alleged violator, and any teleconference; amend KRS 6.701 to include information needed for an operator’s license other person with information relevant to the legislative branch employees in mandatory examination; require that the manual have a complaint; provide that within 14 business days ethics education already required for legislators; section regarding a driver’s conduct during of completion of the interviews, the Legislative amend KRS 6.716 to require the Legislative interactions with law enforcement officers; Ethics Commission shall give notice of the Ethics Commission to administer a current require the operator’s license examination to status of the workplace complaint and a general issues seminar for legislative branch employees test the driver’s knowledge regarding conduct statement of applicable law to the complainant in addition to the existing requirement for during interactions with law enforcement and alleged violator; provide that within legislators; amend KRS 6.787 to include in officers; amend KRS 186.574 to require the 30 business days of receipt of a workplace legislator “statement of financial interests” course of instruction for new drivers in the complaint the complaint file shall be closed if information regarding out of state travel state traffic school to include information on the Legislative Ethics Commission chair and associated with the performance of legislative how drivers should act during interactions vice chair agree that the workplace complaint duties, including the name of any person or with law enforcement officers; create a new is resolved or agree that there is no credible organization who paid for transportation, food, section of KRS Chapter 332 to require driver allegation of discrimination, harassment, or lodging, or travel expenses and the value of the training schools to include in the course of sexual harassment; allow the Legislative Ethics expenses paid. instruction for new drivers information on how Commission chair and vice chair to refer a (Prefiled by the sponsor(s).) a driver should act during interactions with law workplace complaint to another federal or state enforcement officers. agency if they determine that the case does not BR238 - Representative Kimberly Moser (Prefiled by the sponsor(s).) fall under the jurisdiction of the Legislative (9/14/2018) Ethics Commission; if the Legislative Ethics BR259 - Senator John Schickel Commission chair and vice chair do not agree AN ACT relating to Kentucky (9/25/2018) whether a workplace complaint is resolved educational excellence scholarships and but agree that there is a credible allegation declaring an emergency. Adjourn the Senate in honor of discrimination, harassment, or sexual Amend KRS 164.7884 to allow and loving memory of Amy Register Bales. harassment, the Legislative Ethics Commission KEES funds to be used for qualified workforce (Prefiled by the sponsor(s).) enforcement counsel shall file a complaint; a training programs; EMERGENCY. legislator, legislative agent, or an employee (Prefiled by the sponsor(s).) BR271 - Representative Danny Bentley of the legislative branch may file a complaint (10/9/2018) of discrimination, harassment, or sexual BR240 - Representative Myron Dossett harassment at any time under KRS 6.686; set (10/15/2018) AN ACT relating to pharmacists. forth confidentiality provisions; provide that Amend KRS 217.215 to permit complainants shall not be subject to reprisal; AN ACT relating to income tax pharmacists to dispense a prescription refill require the annual reporting of complaints checkoff programs and making an appropriation in an amount equal to the standard unit of processed using the legislative ethics telephone therefor. dispensing for the drug without authorization tip line; provide that nothing prevents a Create a new section of KRS by the prescribing practitioner in emergency legislator, legislative agent, or legislative Chapter 141 to provide taxpayers the option to situations in which such authorization may not branch employee from pursuing other avenues donate to the Kentucky YMCA Youth Assembly be readily or easily obtained; require the Board to report complaints of discrimination, program from their individual income tax of Pharmacy to promulgate administrative harassment, or sexual harassment; permit refunds; require the Department of Revenue regulations to carry out these provisions. employees who report complaints to seek to place the designation on the face of the (Prefiled by the sponsor(s).) assistance from the Kentucky Employee Kentucky individual income tax return; provide Assistance Program or from private health information about the Kentucky YMCA Youth BR272 - Representative Jeffery Donohue professionals for matters related to workplace Assembly program in the return’s instructions; (10/19/2018) complaints; declare that if a provision of KRS transfer the funds designated by taxpayers to 6.601 to 6.849 is designated a misdemeanor the Kentucky YMCA Youth Association by July AN ACT relating to special grand or felony, an alleged violation of the provision 1. juries. may be adjudicated by the Legislative Ethics (Prefiled by the sponsor(s).) Amend KRS 15.200 to allow Commission as ethical misconduct; amend the Attorney General to petition the Supreme KRS 6.661 to restrict political activity by the BR251 - Representative Reginald Meeks Court to convene a special grand jury to Legislative Ethics Commission staff; amend (9/26/2018) investigate crimes that cross multiple judicial KRS 6.686 to allow dismissal of complaints by circuits; amend KRS 15.205 to allow the teleconference held by the Legislative Ethics AN ACT relating to operator’s license Attorney General to direct a Commonwealth’s Commission; allow complaints to be filed testing. or county attorney to act as a special prosecutor against former legislators, former legislative Create a new section of KRS when the Supreme Court approves the Attorney agents, and for employers of former legislative Chapter 158 to require that a driver’s education General’s petition for a special grand jury; agents for extended periods if they are related program to include instruction regarding a amend KRS 29A.220 to outline the process and to discrimination, harassment, or sexual driver’s conduct during interactions with law harassment; if a complainant publicly discloses enforecement officers; amend KRS 186.480 or comments on a complaint or preliminary to require the Kentucky State Police to make THE KENTUCKY GENERAL ASSEMBLY 71 duties of a special grand jury. BR25*, 26*, 27*, 84*, 188*, 194*, 198*, Marzian, Mary Lou (Prefiled by the sponsor(s).) 259*, 275* BR22* McCoy, Chad BR275 - Senator John Schickel House BR76, 144* (10/12/2018) Bechler, Lynn Meade , David BR76, 134* BR76, 94* Honor Greg Johnson upon his Belcher, Linda Meeks, Reginald retirement as the commissioner of the Kentucky BR168* BR251* Department of Fish and Wildlife Resources. Bentley, Danny Miles, Suzanne (Prefiled by the sponsor(s).) BR76, 180*, 271* BR76 Blanton, John Miller, Jerry T. BR276 - Representative Walker Wood Thomas, BR24*, 76 BR76, 202* Representative Tim Moore, Representative Bratcher, Kevin D. Moffett, Phil Myron Dossett, Representative Mark Hart, BR76, 120*, 121*, 159 BR76 Representative DJ Johnson, Representative Brown, Larry Moore, Tim Phillip Pratt, Representative Dean Schamore BR76 BR76, 276* (10/12/2018) Cantrell, McKenzie Moser, Kimberly Poore BR140*, 165*, 166* BR76, 212, 238* AN ACT relating to an exemption of Carney, John Nelson, Rick G. income taxation for military pensions. BR76 BR103* Amend KRS 141.019 to Donohue, Jeffery Nemes, Jason exclude United States military retirees’ pension BR174*, 175*, 272* BR76 income from income taxation for taxable years Dossett, Myron Osborne, David beginning on or after January 1, 2021; require BR76, 240*, 276 BR76* reporting by the Department of Revenue; DuPlessis, Jim Petrie, Jason amend KRS 131.190 to include the reporting BR66, 76 BR76 within the information that can be provided to Elliott, Daniel Pratt, Phillip the Legislative Research Commission. BR76 BR76, 276 (Prefiled by the sponsor(s).) Fischer, Joseph M. Prunty, Melinda Gibbons BR76 BR76, 159 BR304 - Senator Paul Hornback Fleming , Ken Reed, Brandon (10/10/2018) BR76, 212* BR76, 134*, 159*, 178* Goforth, Robert Rothenburger, Rob AN ACT relating to grain discounts. BR96*, 97*, 98*, 99*, 106*, 107*, 138*, BR21*, 67* Amend KRS 251.015 to 204*, 205* Santoro, Sal authorize the Department of Agriculture to Gooch Jr., Jim BR76 investigate grain discounts; impose a penalty BR76 Schamore, Dean for hindering, obstructing, or interfering Hale, David BR276 with inspectors; require the Department BR76 Scott, Attica of Agriculture to report its findings on Harris, Chris BR31*, 32*, 64*, 65*, 172* investigations relating to grain discounts to BR28* St. Onge, Diane the Legislative Research Commission and the Hart, Mark BR76 Interim Joint Committee on Agriculture by BR21, 55*, 76, 159, 276 Thomas, Walker November 1 of each year. Hatton, Angie BR66*, 76, 276* (Prefiled by the sponsor(s).) BR28 Tipton, James Heath, Richard BR76 BRs by Sponsor BR76, 159 Turner, Tommy * - denotes primary sponsorship of BRs Huff, Regina BR76 BR47*, 76, 156*, 207*, 208* York, Jill Senate Jenkins, Joni L. BR181*, 207 Adams, Julie Raque BR140*, 141*, 142*, 165*, 166*, 177* BR45*, 69* Johnson, DJ Index Headings Carroll, Julian M. BR7*, 66, 76, 276 BR29* Keene, Dennis A Hornback, Paul BR15*, 72*, 155* Administrative Regulations and Proceedings BR304* King, Kim Aged Persons and Aging Kerr, Alice Forgy BR36*, 37*, 76 Agriculture BR51* Koenig, Adam Amusements and Recreation Neal, Gerald A. BR76 Animals, Livestock, and Poultry BR3*, 4*, 48* Lee, Stan Appropriations Schickel, John BR76 Associations

72 2018 Interim LEGISLATIVE RECORD Athletics Firefighters and Fire Departments Reports Mandated Attorney General Fish and Wildlife Reproductive Issues Attorney, Commonwealth’s Foods Research and Methods Auditor of Public Accounts G Retirement and Pensions Audits and Auditors Gambling Retroactive Legislation B General Assembly S Boards and Commissions Governor Safety Boats and Boating Grain Secretary of State Budget and Financial Administration H Sheriffs C Health and Medical Services Short Titles and Popular Names Charitable Organizations and Institutions Highways, Streets, and Bridges Special Districts Children and Minors Honorary Highway Designations Special Purpose Governmental Entities Circuit Clerks Horses and Horse Racing State Agencies Cities Hospitals and Nursing Homes State Employees Civil Actions Hunting and Fishing Substance Abuse Civil Procedure I T Civil Rights Immigration Taxation Commendations and Recognitions Insurance Taxation, Income--Corporate Commerce J Taxation, Income--Individual Consolidated Local Governments Juries and Jurors Taxation, Property Constitution, Ky. Justices of the Peace and Magistrates Taxation, Sales and Use Contracts L Teachers Cooperatives Labor and Industry Traffic Safety Corrections and Correctional Facilities, State Legislative Research Commission Transportation Corrections Impact Licensing U Counties Local Government Unemployment Compensation Counties, Charter Local Mandate Unified Local Governments Counties, Urban Lottery United States County Clerks M Universities and Colleges County Judges/Executive Memorials V Court, Supreme Mental Disability Veterans Courts Mental Health W Courts, Circuit Military Affairs and Civil Defense Wages and Hours Courts, Fiscal Motor Vehicles Women Crime Victims N Workers’ Compensation Crimes and Punishments Notices Workforce Criminal Procedure O D Occupational Safety and Health BR Index Dairying and Milk Marketing Occupations and Professions Deaths P Administrative Regulations and Proceedings Disabilities and the Disabled Peace Officers and Law Enforcement Attorney General, charitable organizations, Diseases Personnel and Employment publication of financial accountability - Dogs Pharmacists BR181 Domestic Relations Physicians and Practitioners Department of Revenue, authority to Drugs and Medicines Police, City and County promulgate - BR7 E Police, State Labor, employee misclassification - BR177 Economic Development Probation and Parole Racial and ethnic community criminal justice Education, Elementary and Secondary Property and public safety impact statement, requiring Education, Finance Public Buildings and Grounds - BR3 Education, Higher Public Health Sanctuary Education, Vocational Public Officers and Employees cities, determination of, establishment of Effective Dates, Emergency Public Protection hearing procedures - BR134 Elections and Voting Public Records and Reports postsecondary institution, determination of, Emergency Medical Services Public Safety hearing procedures - BR134 Energy Public Utilities Statewide youth crossbow deer hunting season, Ethics Public Works establishment of - BR178 F Publications Federal Laws and Regulations Purchasing Aged Persons and Aging Fees R Long-term-care staffing ratios, implementation Firearms and Weapons Racing of - BR103 Religion THE KENTUCKY GENERAL ASSEMBLY 73 gang activity - BR4 - BR48 Agriculture Special grand jury, convening of - BR272 Grain discounts, investigation of - BR304 Circuit Clerks Homestead food products, permits, exemption Attorney, Commonwealth’s Driver’s manual, Kentucky State Police to of - BR138 Report required, charges or convictions relating make available - BR251 Medical marijuana, safety and efficacy to gang activity - BR4 Operator’s standards, advocating for - BR180 Shooting of an individual by a law enforcement license testing, interactions with law officer or deadly incident, investigation of enforcement, driver’s manual to include - Amusements and Recreation - BR32 BR251 Charitable gaming, unlicensed facilities, use of Special grand jury, convening of - BR272 license testing, interactions with law - BR144 enforcement, exam to include - BR251 Sports wagering, authorization for - BR15; Auditor of Public Accounts licenses and personal ID cards, emergency BR29 Audits of county officers, findings of contact information registry, establishing improprieties, purchase of insurance - BR98 Animals, Livestock, and Poultry requirement - BR205 licenses, early renewal for citizens traveling Animal abuse offender registry, establishment abroad - BR99 of - BR121 Audits and Auditors Cruelty to animals, penalty for, increasing - Audits of county officers, findings of Cities BR121 improprieties, purchase of insurance CCDW, license holders, remove location Danger of death, dog or cat, removal from requirement - BR205 restrictions for - BR97 vehicle, civil immunity - BR120 Procurement, increase small purchase limit and Statewide youth crossbow deer hunting season, Boards and Commissions amend publication requirement - BR67 establishment of - BR178 Board of Pharmacy, prescription refill Retirement and pensions, notification of Torture of a dog or cat, Class D felony - BR66 in emergency situations, promulgate delinquent retirement contributions - BR204 administrative regulation - BR271 Veteran service organization, exemption from Appropriations Fire districts, alternative tax structure - BR21 property tax - BR7 Animal abuse offender registry fund, creation Local boards of education, appointment of of - BR121 vacancies - BR55 Civil Actions Constitutional amendment, General Assembly, Officer Shooting Review Board, establishment Criminal gangs, relating to - BR172 budget special session, compensation of - BR32 Immunity, vehicle damage, removal of dog or suspended - BR36 cat in danger of death - BR120 Kentucky addiction prevention, recovery, and Boats and Boating Kentucky addiction prevention, recovery, and enforcement fund - BR155 Sales tax exemption, fishing tournament and enforcement fund, direct litigation revenues Pension income exclusion, retroactively raise boat ramp fees - BR94 - BR155 - BR24; BR207 Rare disease trust fund, creating - BR45 Budget and Financial Administration Civil Procedure Roll call vote, requirement for - BR37 Constitutional amendment, General Assembly, Criminal gangs, relating to - BR172 Sports wagering tax - BR15; BR29 budget special session, compensation Immunity, vehicle damage, removal of dog or suspended - BR36 cat in danger of death - BR120 Associations Roll call vote, requirement for - BR37 Kentucky YMCA Youth Assembly program tax Civil Rights designation, creation of - BR240 Charitable Organizations and Institutions Discrimination based on pregnancy, childbirth, Financial accountability, publication by and related medical conditions - BR51 Athletics Attorney General - BR181 Charter Property tax, leasehold interests, exemption of Commendations and Recognitions school statutes, repeal - BR31 - BR76 Bolte, Richard, recognition - BR27 school statutes, repealing - BR22 Sales and use tax, sale of admissions, Crigger, Connie, Kentucky Administrator of the Sports wagering, authorization for - BR15; exemption of - BR72; BR76 Year, honoring - BR194 BR29 Unlicensed facilities, use of, restricting - Moore, Charles, retirement - BR26 BR144 Storer, Robert J., honoring - BR188 Attorney General Charitable organizations, publication of Children and Minors Commerce financial accountability - BR181 Baby products and diapers, exemption of sales Grain discounts, investigation of - BR304 Kentucky addiction prevention, recovery, and and use tax - BR65 enforcement fund, add as committee member Family resource and youth services centers, Consolidated Local Governments - BR155 authorize donations to - BR47 Audits of county officers, findings of Office of Rate Intervention, notice, Kentucky YMCA Youth Assembly program tax improprieties, purchase of insurance discriminatory or unreasonable rates - BR28 designation, creation of - BR240 requirement - BR205 Officer Shooting Review Board, establishment Statewide youth crossbow deer hunting season, of - BR32 establishment of - BR178 Constitution, Ky. Report to, charges or convictions relating to Unlawful storage of a firearm, prohibition of General Assembly, budget special session,

74 2018 Interim LEGISLATIVE RECORD compensation for services, suspension of - County Judges/Executive of - BR32 BR36 Audits of county officers, findings of Racial and ethnic community criminal justice Judge of County Court in urban-county improprieties, purchase of insurance and public safety impact statement, requiring governments, abolishing - BR107 requirement - BR205 - BR3 Judge of County Court in urban-county Report required, charges or convictions relating Contracts governments, abolishing - BR107 to gang activity - BR4 Procurement, increase small purchase limit Torture of a dog or cat, pretrial diversion for, and amend publication requirement for local Court, Supreme prohibiting - BR66 governments - BR67 Special grand jury, convening of - BR272 Unlawful storage of a firearm, prohibition of - BR48 Cooperatives Courts Distribution cooperatives, exemption, CCDW, license holders, remove location Dairying and Milk Marketing management and operations audits - BR28 restrictions for - BR97 Homestead food products, permits, exemption Criminal gangs, relating to - BR172 of - BR138 Corrections and Correctional Facilities, Special grand jury, convening of - BR272 State Deaths Racial and ethnic community criminal justice Courts, Circuit Capital offense, executions, mental illness - and public safety impact statement, requiring Special grand jury, convening of - BR272 BR69 - BR3 Courts, Fiscal Disabilities and the Disabled Corrections Impact Procurement, increase small purchase limit and Long-term-care staffing ratios, implementation Racial and ethnic community criminal justice amend publication requirement - BR67 of - BR103 and public safety impact statement, requiring - BR3 Crime Victims Diseases Criminal gangs, relating to - BR172 Long-term-care staffing ratios, implementation Counties Leave from employment for court appearances, of - BR103 Audits of county officers, findings of requirements for the employer and employee Medical marijuana, safety and efficacy improprieties, purchase of insurance - BR142 standards, advocating for - BR180 requirement - BR205 Rare Disease Advisory Council, establishing CCDW, license holders, remove location Crimes and Punishments - BR45 restrictions for - BR97 Animal abuse offender registry, establishment Fire of - BR121 Dogs districts, alternative tax structure - BR21 Capital offense, executions, mental illness - Animal abuse offender registry, establishment districts, board of trustees, alternative BR69 of - BR121 constituency - BR21 Criminal gangs, relating to - BR172 Cruelty to animals, penalty for, increasing - Procurement, increase small purchase limit and Cruelty to animals, penalty for, increasing - BR121 amend publication requirement - BR67 BR121 Danger of death, removal from vehicle, civil Retirement and pensions, notification of Domestic violence, torture of a dog or cat, immunity - BR120 delinquent retirement contributions - BR204 offenses involving family members, early Domestic violence, torture of a dog or cat, Veteran service organization, exemption from release - BR66 offenses involving family members, Class D property tax - BR7 Immigration laws, enforcement of, requiring felony - BR66 Volunteer fire departments, state aid to merging - BR134 departments - BR21 Racial and ethnic community criminal justice Domestic Relations and public safety impact statement, requiring Domestic violence, torture of a dog or cat, Counties, Charter - BR3 offenses involving family members, Class D Audits of county officers, findings of Report required, charges or convictions relating felony - BR66 improprieties, purchase of insurance to gang activity - BR4 requirement - BR205 Torture Drugs and Medicines of a dog or cat, Class D felony - BR66 Kentucky addiction prevention, recovery, and Counties, Urban of a dog or cat, prohibit pretrial diversion for enforcement fund, direct litigation revenues Audits of county officers, findings of - BR66 - BR155 improprieties, purchase of insurance Unlawful storage of a firearm, prohibition of Medical marijuana, safety and efficacy requirement - BR205 - BR48 standards, advocating for - BR180 Pharmacists, emergency prescription refill, County Clerks Criminal Procedure permit to dispense up to standard dispensing All-terrain vehicle, titling and registration of Animal abuse offender registry, establishment unit - BR271 - BR106 of - BR121 Procurement, increase small purchase limit Capital offense, executions, mental illness - Economic Development - BR67 BR69 KBI program, minimum weekly wage, Criminal gangs, relating to - BR172 requirement for - BR175 Officer Shooting Review Board, establishment THE KENTUCKY GENERAL ASSEMBLY 75 Education, Elementary and Secondary Ethics Governor CCDW, license holders, remove location Legislative ethics telephone tip line, Report to, charges or convictions relating to restrictions for - BR97 establishing - BR212 gang activity - BR4 Charter school statutes, repeal - BR31 Federal Laws and Regulations Grain school statutes, repealing - BR22 Immigration laws, enforcement of, requiring Grain discounts, investigation of - BR304 Driver training school, interactions with law - BR134 enforcement, course of instruction to include Health and Medical Services - BR251 Fees Long-term-care staffing ratios, implementation Family resource and youth services centers, Sports wagering, licensing fees for - BR15; of - BR103 authorize donations to - BR47 BR29 Medical marijuana, safety and efficacy Kentucky YMCA Youth Assembly program tax standards, advocating for - BR180 designation, creation of - BR240 Firearms and Weapons Pharmacists, emergency prescription refill, Local boards of education, appointment of CCDW, license holders, remove location permit to dispense up to standard dispensing vacancies - BR55 restrictions for - BR97 unit - BR271 National motto display, prominent location, Unlawful storage of a firearm, prohibition of Rare Disease Advisory Council, establishing requiring - BR156; BR159 - BR48 - BR45

Education, Finance Firefighters and Fire Departments Highways, Streets, and Bridges Family resource and youth services centers, Fire All-terrain vehicle, highway operation of, authorize donations to - BR47 districts, alternative tax structure - BR21 allowing - BR106 KEES, allowing use for qualified workforce districts, board of trustees, alternative Contracts, Kentucky Buy American Act, training program - BR238 constituency - BR21 compliance with - BR174 Sanctuary postsecondary institution, state Volunteer fire departments, state aid to merging Cornett, SFC Lance Scott, memorial bridge funding, withholding of - BR134 departments - BR21 designation, Laurel County - BR96 Workers’ compensation, psychological injuries Criminal littering, permitting unsafe amounts Education, Higher - BR140 of mowed grass to remain on a highway - CCDW, license holders, remove location BR208 restrictions for - BR97 Fish and Wildlife Contracts, Kentucky Buy American Act, Cruelty to animals, penalty for, increasing - Honorary Highway Designations compliance with - BR174 BR121 Cornett, SFC Lance Scott, memorial bridge KEES, allowing use for qualified workforce Sales tax exemption, fishing tournament and designation, Laurel County - BR96 training program - BR238 boat ramp fees - BR94 Sanctuary postsecondary institution, state Statewide youth crossbow deer hunting season, Horses and Horse Racing funding, withholding of - BR134 establishment of - BR178 Racing venues, sports wagering conducted at - BR15 Education, Vocational Foods Sports wagering, racing commission oversight KEES, allowing use for qualified workforce Homestead food products, permits, exemption of - BR29 training program - BR238 of - BR138 Hospitals and Nursing Homes Effective Dates, Emergency Gambling Long-term-care staffing ratios, implementation Charitable organization, leasehold interest, Charitable gaming, unlicensed facilities, use of of - BR103 property tax, exemption of - BR76 - BR144 Rare Disease Advisory Council, establishing KEES, allowing use for qualified workforce Sports wagering, authorization for - BR15; - BR45 training program - BR238 BR29 Pension income exclusion, retroactively raise Hunting and Fishing - BR24; BR207 General Assembly Sales tax exemption, fishing tournament and Constitutional amendment, budget special boat ramp fees - BR94 Elections and Voting session, compensation suspended - BR36 Statewide youth crossbow deer hunting season, Constitutional amendment, General Assembly, Ethical misconduct, prohibited behavior, establishment of - BR178 budget special session, compensation complaint procedures - BR212 suspended - BR36 Legislative ethic telephone tip line, establishing Immigration - BR212 Immigration laws, enforcement of, requiring Emergency Medical Services Racial and ethnic community criminal justice - BR134 Workers’ compensation, psychological injuries and public safety impact statement, requiring - BR140 - BR3 Insurance Report to, charges or convictions relating to Audits of county officers, findings of Energy gang activity - BR4 improprieties, purchase of insurance Affordable rates and service, distinction Roll call vote for appropriation or revenue requirement - BR205 between base rates and surcharges - BR28 measure, requirement for - BR37

76 2018 Interim LEGISLATIVE RECORD Juries and Jurors Local Mandate licenses and personal ID cards, emergency Special grand jury, convening of - BR272 Fire districts, alternative tax structure - BR21 contact information registry, establishing - BR98 Justices of the Peace and Magistrates Lottery Shooting of an individual by a law enforcement Audits of county officers, findings of Sports wagering, oversight of - BR15 officer or deadly incident, investigation of improprieties, purchase of insurance - BR32 requirement - BR205 Memorials Workers’ compensation, psychological injuries Bales, Amy Register, memorializing - BR259 - BR140 Labor and Industry Graves, William “Bill” Edgar, memorializing Crime victims, leave from employment - - BR84 Personnel and Employment BR142 Johnson, Greg, honoring - BR275 Construction industry, misclassification of Earned paid sick leave provided by employers, Reno, Jack, memorializing - BR25 employees - BR177 requirement for - BR165 Stanton, Damian Kevin, memorializing - Crime victims, leave from employment - Employment discrimination based on BR198 BR142 pregnancy, childbirth, and related medical Discrimination based on pregnancy, childbirth, conditions - BR51 Mental Disability and related medical conditions - BR51 Misclassification of employees, construction Capital offense, executions, mental illness - Earned paid sick leave provided by employers, industry - BR177 BR69 requirement for - BR165 Paid maternity leave for employees, employers Paid maternity leave for employees, employers with fifty or more employees - BR166 Mental Health with fifty or more employees - BR166 Prevailing wage for public works, creation of Capital offense, executions, mental illness - Work Schedules for employees, requirements of - BR168 BR69 - BR141 Work Schedules for employees, requirements of - BR141 Military Affairs and Civil Defense Pharmacists Workers’ compensation, psychological injuries Pensions, income tax deduction - BR276 Emergency prescription refill, permit to - BR140 dispense up to standard dispensing unit - Motor Vehicles BR271 Legislative Research Commission All-terrain vehicle, highway operation of, Appropriation or revenue measure, requirement allowing - BR106 Physicians and Practitioners for designation of - BR37 Damage, civil immunity, removal of dog or cat Long-term-care staffing ratios, implementation Legislative - BR120 of - BR103 Ethics Commission, jurisdiction, granting Operator’s Rare Disease Advisory Council, establishing - BR212 licenses and personal ID cards, emergency - BR45 ethics telephone tip line, establishing - BR212 contact information registry, establishing - BR98 Police, City and County Licensing licenses, early renewal for citizens traveling Driver’s manual, Kentucky State Police to CCDW, license holders, remove location abroad - BR99 make available - BR251 restrictions for - BR97 Immigration laws, enforcement of, requiring Charitable gaming, unlicensed facilities, use of Notices - BR134 - BR144 Procurement, amend publication requirement Operator’s Sports wagering, licensing for - BR29 for lcoal governments - BR67 license testing, interactions with law enforcement, driver’s manual to include - Local Government Occupational Safety and Health BR251 All-terrain vehicle, local ordinance permitting Work Schedules for employees, requirements of license testing, interactions with law or prohibiting operation of, allowing - BR106 - BR141 enforcement, exam to include - BR251 Audits of county officers, findings of licenses and personal ID cards, emergency improprieties, purchase of insurance Occupations and Professions contact information registry, establishing requirement - BR205 Construction industry, misclassification of - BR98 Contracts, Kentucky Buy American Act, employees - BR177 Shooting of an individual by a law enforcement compliance with - BR174 officer or deadly incident, investigation of Fire Peace Officers and Law Enforcement - BR32 districts, alternative tax structure - BR21 Driver’s manual, Kentucky State Police to districts, board of trustees, alternative make available - BR251 Police, State constituency - BR21 Immigration laws, enforcement of, requiring Driver’s manual, Kentucky State Police to Judge of County Court in urban-county - BR134 make available - BR251 governments, abolishing - BR107 Operator’s Immigration laws, enforcement of, requiring Procurement, increase small purchase limit and license testing, interactions with law - BR134 amend publication requirement - BR67 enforcement, driver’s manual to include - Operator’s Volunteer fire departments, state aid to merging BR251 license testing, interactions with law departments - BR21 license testing, interactions with law enforcement, driver’s manual to include - enforcement, exam to include - BR251 BR251 THE KENTUCKY GENERAL ASSEMBLY 77 license testing, interactions with law between base rates and surcharges - BR28 contributions - BR204 enforcement, exam to include - BR251 licenses and personal ID cards, emergency Public Works Retroactive Legislation contact information registry, establishing Contracts, Kentucky Buy American Act, Pension income exclusion, raise for tax years - BR98 compliance with - BR174 beginning on or after January 1, 2018 - BR24; Shooting of an individual by a law enforcement Prevailing wage, creation of - BR168 BR207 officer or deadly incident, investigation of - BR32 Publications Safety Procurement, amend publication requirement CCDW, license holders, remove location Probation and Parole for local governments - BR67 restrictions for - BR97 Domestic violence, torture of a dog or cat, Dog or cat in vehicle, removal, civil immunity offenses involving family members, early Purchasing - BR120 release - BR66 Public contracts, Kentucky Buy American Act, compliance with - BR174 Secretary of State Property Constitutional amendment, General Assembly, Veteran service organization, exemption from Racing budget special session, compensation property tax - BR7 Sports suspended - BR36 wagering, prohibition for certain facilities Public Buildings and Grounds - BR15 Sheriffs CCDW, license holders, remove location wagering, racing commission oversight of Immigration laws, enforcement of, requiring restrictions for - BR97 - BR29 - BR134 Contracts, Kentucky Buy American Act, Procurement, increase small purchase limit compliance with - BR174 Religion - BR67 National motto, required public elementary and Shooting of an individual by a law enforcement Public Health secondary school display of - BR156; BR159 officer or deadly incident, investigation of Homestead food products, permits, exemption - BR32 of - BR138 Reports Mandated Kentucky addiction prevention, recovery, and Department Short Titles and Popular Names enforcement fund, direct litigation revenues of revenue expenditure report, baby products Arrow’s Law, animal abuse offender registry - BR155 and diapers - BR65 - BR121 Rare Disease Advisory Council, establishing of Revenue, expenditure report, feminine Kentucky Buy American Act - BR174 - BR45 hygiene products - BR64 of Revenue, military pension income tax Special Districts Public Officers and Employees deduction - BR276 Fire Immigration laws, enforcement of, requiring Grain discounts, investigation of - BR304 districts, alternative tax structure - BR21 - BR134 Legislative ethics telephone tip line, complaints districts, board of trustees, alternative Retirement, void if retiring elected official received - BR212 constituency - BR21 returns to same position within 12 mos. of Rare Disease Advisory Council and General Procurement, increase small purchase limit and retirement - BR202 Assembly, annual reports to - BR45 amend publication requirement - BR67 Volunteer fire departments, state aid to merging Public Protection Reproductive Issues departments - BR21 CCDW, license holders, remove location Paid maternity leave for employees, employers restrictions for - BR97 with fifty or more employees - BR166 Special Purpose Governmental Entities Sales and use tax, feminine hygiene products, Procurement, increase small purchase limit and Public Records and Reports exemption of - BR64 amend publication requirement - BR67 Operator’s licenses, emergency contact information registry, exemption from Open Research and Methods State Agencies Records Act - BR98 Medical marijuana, safety and efficacy Contracts, Kentucky Buy American Act, Shooting of an individual by a law enforcement standards, advocating for - BR180 compliance with - BR174 officer or deadly incident, investigation of Department of Education, commissioner, - BR32 Retirement and Pensions appointment of local board vacancies - BR55 Kentucky Retirement Systems, void elected Fire Commission, volunteer fire department aid Public Safety official retirement if elected to same position relating to merging departments - BR21 Shooting of an individual by a law enforcement in 12 mos. - BR202 Kentucky officer or deadly incident, investigation of Military, income tax deduction - BR276 Retirement Systems, void elected official - BR32 Pension income exclusion, retroactively raise retirement if elected to same position in 12 Unlawful storage of a firearm, prohibition of - BR24; BR207 mos. - BR202 - BR48 Sports wagering, revenue generated by - BR15; State Police, animal abuse offender registry, BR29 establishment of - BR121 Public Utilities State and local employers and employees, Retirement and pensions, notification of Affordable rates and service, distinction notification of delinquent retirement delinquent retirement contributions - BR204

78 2018 Interim LEGISLATIVE RECORD Revenue Department, Labor Cabinet, requirement - BR205 Unemployment Insurance, Workers’ Claims Taxation, Property Department, information - BR177 Charitable organization, leasehold interest, United States Transportation Cabinet, operator’s licenses, exemption of - BR76 National motto, required public elementary and early renewal for citizens traveling abroad Fire districts, alternative tax structure - BR21 secondary school display of - BR156; BR159 - BR99 Veteran service organization, exemption of - BR7 Universities and Colleges State Employees Immigration laws, enforcement of, requiring Retirement and pensions, notification of Taxation, Sales and Use - BR134 delinquent retirement contributions - BR204 Baby products and diapers, exemption of - KEES, allowing use for qualified workforce Workers’ compensation, psychological injuries BR65 training program - BR238 - BR140 Feminine hygiene products, exemption of - Sanctuary BR64 postsecondary institution, determination of, Substance Abuse Fishing tournaments and boat ramp fees, hearing procedures - BR134 Kentucky addiction prevention, recovery, and exempting - BR94 postsecondary institution, state funding, enforcement fund, direct litigation revenues Nonprofit organizations, sale of admissions, withholding of - BR134 - BR155 exemption of - BR72; BR76 Veterans Taxation Teachers Veteran service organization, exemption from Family resource and youth services centers, Charter property tax - BR7 authorize donations to - BR47 school statutes, repeal - BR31 Fire districts, alternative tax structure - BR21 school statutes, repealing - BR22 Wages and Hours Individual income tax, Kentucky YMCA Youth Construction industry, misclassification of Assembly program designation, creation of Traffic Safety employees - BR177 - BR240 Criminal littering, permitting unsafe amounts Earned paid sick leave provided by employers, KBI program, minimum weekly wage, of mowed grass to remain on a highway - requirement for - BR165 requirement for - BR175 BR208 Paid maternity leave for employees, employers Military pensions, income tax deduction - with fifty or more employees - BR166 BR276 Transportation Prevailing wage for public works, creation of Pension income exclusion, retroactively raise All-terrain vehicle, highway operation of, - BR168 - BR24; BR207 allowing - BR106 Property, charitable organization, leasehold Criminal littering, permitting unsafe amounts Women interest, exemption of - BR76 of mowed grass to remain on a highway - Employment discrimination based on Roll call vote, requirement for - BR37 BR208 pregnancy, childbirth, and related medical Sales Driver training school, interactions with law conditions - BR51 and use, nonprofit organizations, sale of enforcement, course of instruction to include Paid maternity leave for employees, employers admissions, exemption of - BR72; BR76 - BR251 with fifty or more employees - BR166 and use tax, baby products and diapers, Driver’s manual, Kentucky State Police to Sales and use tax, feminine hygiene products, exemption of - BR65 make available - BR251 exemption of - BR64 and use tax, feminine hygiene products, Operator’s exemption of - BR64 license testing, interactions with law Workers’ Compensation tax, admissions definition - BR94 enforcement, driver’s manual to include - Misclassification of employees, information Sports wagering, excise tax on - BR29 BR251 sharing with other agencies - BR177 license testing, interactions with law Psychological injuries for police, firefighters, Taxation, Income--Corporate enforcement, exam to include - BR251 emergency medical services, and social Family resource and youth services centers, licenses and personal ID cards, emergency workers - BR140 authorize donations to - BR47 contact information registry, establishing KBI program, minimum weekly wage, - BR98 Workforce requirement for - BR175 licenses, early renewal for citizens traveling Discrimination based on pregnancy, childbirth, abroad - BR99 and related medical conditions - BR51 Taxation, Income--Individual State traffic school, interactions with law Work Schedules for employees, requirements of Family resource and youth services centers, enforcement, course of instruction to include - BR141 authorize donations to - BR47 - BR251 KBI program, minimum weekly wage, requirement for - BR175 Unemployment Compensation Kentucky YMCA Youth Assembly program Construction industry, misclassification of designation, creation of - BR240 employees - BR177 Military pensions, income tax deduction - BR276 Unified Local Governments Pension income exclusion, retroactively raise Audits of county officers, findings of - BR24; BR207 improprieties, purchase of insurance THE KENTUCKY GENERAL ASSEMBLY 79 2018 Interim Robert Stivers David W. Osborne LEGISLATIVE SENATE PRESIDENT SPEAKER PRO TEM RECORD Jimmy Higdon Jonathan Shell PRESIDENT PRO TEM DESIGNATE MAJORITY FLOOR LEADER Published monthly by Robert Jenkins Damon Thayer Rocky Adkins the Legislative Research Deputy Director for MAJORITY FLOOR LEADER MINORITY FLOOR LEADER Commission, the Interim Committee and Staff Coordination Ray S. Jones II David R. Meade RECORD is designed to in- MINORITY FLOOR LEADER MAJORITY CAUCUS CHAIRMAN form the citizens of Kentucky Rob Weber Dan “Malano” Seum of the between-sessions work Dennis Keene Public Information MAJORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN of the General Assembly. Officer Dorsey Ridley Kevin Bratcher Paper subscriptions are Joe Cox MINORITY CAUCUS CHAIRMAN MAJORITY WHIP free upon request. Contact the Publications and Printing Mike Wilson Wilson Stone LRC Public Information Office, Officer MAJORITY WHIP MINORITY WHIP Capitol Annex, Frankfort KY, Rebecca Mullins Dennis Parrett 40601 at 502-564-8100, ext. 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80 2018 Interim LEGISLATIVE RECORD