Final Reports of the Interim Joint, Special, and Statutory Committees 2006 Presented to the Legislative Research Commission and the 2007 Kentucky General Assembly Informational Bulletin No. 222 Legislative Research Commission Frankfort, Kentucky lrc.ky.gov December 2006 Paid for with state funds. Available in alternative form by request. Legislative Research Commission Foreword 2006 Final Committee Reports Foreword Sections 36 and 42 of the Kentucky Constitution provide that the General Assembly shall meet on the “first Tuesday after the first Monday in January” for 60 legislative days in even-numbered years, and for 30 legislative days, including up to 10 days for an organizational component, in odd-numbered years. Between legislative sessions, the interim joint committees of the Legislative Research Commission (LRC), as well as special and statutory committees, meet to discuss and take testimony on a number of important issues that may confront the General Assembly. During the 2006 Interim, all 14 interim joint committees held meetings. Two special committees were authorized by LRC. All eight statutory committees met during the 2006 Interim. LRC provides this informational booklet as a summary of the activity of the interim joint, special, and statutory committees since adjournment of the 2006 General Assembly. The reports were prepared separately by the committee staff. Robert Sherman Director Legislative Research Commission Frankfort, Kentucky December 2006 i ii Legislative Research Commission Contents 2006 Final Committee Reports Contents Foreword........... ..................................................................................................................i Reports of the 2006 Interim Joint Committees Agriculture and Natural Resources.............................................................................1 Appropriations and Revenue.....................................................................................11 Banking and Insurance..............................................................................................21 Economic Development and Tourism ......................................................................25 Education ..................................................................................................................35 Energy.......................................................................................................................43 Health and Welfare ...................................................................................................47 Judiciary....................................................................................................................67 Labor and Industry....................................................................................................73 Licensing and Occupations.......................................................................................79 Local Government ....................................................................................................85 Seniors, Veterans, Military Affairs, and Public Protection ......................................91 State Government......................................................................................................99 Transportation.........................................................................................................105 Reports of the 2006 Special Committees Kentucky Broadband Task Force............................................................................115 Task Force on Local Taxation ................................................................................117 Reports of the Statutory Committees Administrative Regulation Review Subcommittee.................................................121 Capital Planning Advisory Board ...........................................................................125 Capital Projects and Bond Oversight Committee ...................................................129 Education Assessment and Accountability Review Subcommittee........................141 Government Contract Review Committee..............................................................145 Medicaid Oversight and Advisory Committee .......................................................149 Program Review and Investigations Committee.....................................................155 Tobacco Settlement Agreement Fund Oversight Committee .................................159 iii iv Legislative Research Commission Agriculture and Natural Resources 2006 Final Committee Reports Report of the 2006 Interim Joint Committee on Agriculture and Natural Resources Sen. Tom Jensen, Co-Chair Rep. Tom McKee, Co-Chair Rep. James Gooch, Co-Chair Sen. David E. Boswell Rep. Mike Denham Sen. Ernie Harris Rep. C.B. Embry, Jr. Sen. Dan Kelly Rep. W. Keith Hall Sen. Robert J. Leeper Rep. Jimmy Higdon Sen. Vernie McGaha Rep. Charlie Hoffman Sen. Joey Pendleton Rep. Charles E. Meade Sen. J. Dorsey Ridley Rep. Reginald K. Meeks Sen. Richie Sanders, Jr. Rep. Brad Montell Sen. Ernesto Scorsone Rep. Fred Nesler Sen. Damon Thayer Rep. Don R. Pasley Rep. Royce W. Adams Rep. Marie L. Rader Rep. Adrian K. Arnold Rep. Rick W. Rand Rep. John A. Arnold, Jr. Rep. Steven Rudy Rep. James E. Bruce Rep. Terry Shelton Rep. Dwight D. Butler Rep. Brandon D. Smith Rep. Mike Cherry Rep. Jim Stewart III Rep. Hubert Collins Rep. Tommy Turner Rep. James R. Comer, Jr. Rep. Ken Upchurch Rep. Howard D. Cornett Rep. Robin L. Webb Rep. Tim Couch Rep. Susan Westrom Rep. W. Milward Dedman, Jr. LRC Staff: Tanya Monsanto, Biff Baker, Hank Marks, Lowell Atchley, and Kelly Blevins Presented to the Legislative Research Commission and the 2007 Kentucky General Assembly 1 Agriculture and Natural Resources Legislative Research Commission 2006 Final Committee Reports Subcommittee Organization and Membership Subcommittee on Rural Issues Sen. Vernie McGaha, Co-Chair Rep. Mike Denham, Co-Chair Sen. Tom Jensen, ex officio Rep. James Gooch, Jr., ex officio Sen. Robert J. Leeper Rep. Jimmy Higdon Sen. Richie Sanders, Jr. Rep. Tom McKee, ex officio Rep. Adrian K. Arnold Rep. Fred Nesler Rep. John A. Arnold, Jr. Rep. Marie L. Rader Rep. Dwight D. Butler Rep. Rick W. Rand Rep. Mike Cherry Rep. Steven Rudy Rep. James Comer, Jr. Rep. Tommy Turner Rep. C.B. Embry, Jr. Subcommittee on Horse Farming Sen. Damon Thayer, Co-Chair Rep. Susan Westrom, Co-Chair Sen. Tom Jensen, ex officio Rep. James Gooch, Jr., ex officio Sen. Joey Pendleton Rep. Charlie Hoffman Rep. Royce W. Adams Rep. Tom McKee, ex officio Rep. James E. Bruce Rep. Brad Montell Rep. James Carr Rep. Don R. Pasley Rep. W. Milward Dedman, Jr. Rep. Ken Upchurch Subcommittee on Natural Resources Sen. Ernie Harris, Co-Chair Rep. W. Keith Hall, Co-Chair Sen. David E. Boswell Rep. James Gooch, Jr., ex officio Sen. Tom Jensen, ex officio Rep. Tom McKee, ex officio Sen. Dan Kelly Rep. Charles E. Meade Sen. J. Dorsey Ridley Rep. Reginald K. Meeks Sen. Ernesto Scorsone Rep. Terry Shelton Rep. Hubert Collins Rep. Brandon D. Smith Rep. Howard Cornett Rep. Jim Stewart III Rep. Tim Couch Rep. Robin L. Webb 2 Legislative Research Commission Agriculture and Natural Resources 2006 Final Committee Reports Interim Joint Committee on Agriculture and Natural Resources Jurisdiction: Matters pertaining to crops, livestock, poultry, and their marketing, disease control, and warehousing; tobacco; stockyards; agricultural cooperatives and marketing associations; agriculture weights and measures; veterinarians; State Fair; county fairs; water pollution; air pollution; management of waste; protection of the environment; noise pollution; forestry; mining; fish and wildlife resources; soil and water conservation; flood control and water usage; drainage and irrigation; geology and water resources; waterways and dams; oil, gas, and salt water wells; state and national parks; Environmental and Public Protection Cabinet; all matters not specifically assigned to another committee relating to administrative, regulatory, or operating issues which, because of their smaller size, uniquely impact small business. Committee Activity The Interim Joint Committee on Agriculture and Natural Resources held six monthly meetings during the 2006 Interim. Three subcommittees were reauthorized from the 2005 Interim: Natural Resources Subcommittee, the Horse Farming Subcommittee, and the Rural Issues Subcommittee. The Interim Joint Committee on Agriculture and Natural Resources received testimony on a variety of natural resources and environmental issues including coal mine safety and storm water management; however, the majority of the committee meetings were devoted to agricultural issues. The agricultural topics were varied and illustrated the changing nature of the agricultural sector in the national economy and the role that nonagricultural sectors, like energy, play in agricultural production and trade. Regarding agricultural issues, testimony received at the July meeting illustrated the importance of rising energy costs on the production costs borne by Kentucky crop farmers. It also dramatized the way the agricultural sector is changing as the nation searches for new fuel stocks. According to testimony received from the Office of Energy Policy, the agricultural economy will be impacted by the changing nature of the energy industry. There will be an industrialization of energy resources. The recent emphasis on biofuels and ethanols is causing a surge in demand for grains like corn and is encouraging agencies like the Governor’s Office of Agricultural