The 1st meeting of the Budget Review Subcommittee on Economic Development and Tourism, Natural Resources and Environmental Protection of the Interim Joint Committee on Appropriations and Revenue was held on Thursday, July 27, 2006, at 10:00 AM, in Room 131 of the Capitol Annex. Representative John Arnold, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Ernie Harris, Co-Chair; Representative John Arnold, Co-Chair; Senators Alice Forgy Kerr and Richie Sanders; Representatives Larry Clark, Jim Gooch, Dennis Keene, Ruth Ann Palumbo, Arnold Simpson, Tommy Thompson, John Vincent, and Susan Westrom.
Guests: Franklin Reed, Director, Division of Safety Analysis, Training and Certification, Department of Natural Resources; Steve Coleman, Director, Division of Conservation, Department of Natural Resources; Rick Bender, Director, Division of Oil and Gas Conservation, Department of Natural Resources; Corden Porter, Deputy Commissioner, Department of Labor; Stephen Morrison, Executive Director, Office of Occupational Safety and Health, Department of Labor; Chris Smith, Executive Director, Office of Workplace Standards, Department of Labor; and Tom Cannady, Executive Director, Office of Labor, Management Relations and Mediation, Department of Labor.
LRC Staff: Jack McNear, Jeffery Hancock, Kevin Mason, Tom Willis, and Spring Emerson.
Chairman Arnold welcomed Franklin Reed, Director, Division of Safety Analysis, Training and Certification, Office of Mine Safety and Licensing, Department of Natural Resources, who gave a brief presentation outlining the mission and daily operations of that agency.
Chairman Arnold asked if the self-contained self-rescuers (SCSRs) operate for a long enough time. Mr. Reed replied that they have a shelf life of ten years that can become outdated, there can be physical damage to the cases, straps, etc., heat and moisture sensors could be activated, etc. He added that acoustic shake tests are performed on the devices.
Chairman Arnold asked if the devices are inspected on a regular schedule. Mr. Reed replied that the manufacturer recommends they be inspected every 90 days, adding that inspections are done more frequently than that.
Representative Clark asked if the mandatory tank inspections are documented. Mr. Reed replied in the affirmative, explaining that some have private companies to perform the inspections.
Representative Clark inquired if it is mandatory for miners to have safety training. Mr. Reed replied in the affirmative, adding that there are many different types of safety training required.
Chairman Arnold thanked Mr. Reed for coming before the committee and welcomed the next presenter, Steve Coleman, Director, Division of Conservation, Department of Natural Resources, to come forward.
Mr. Coleman gave a brief presentation outlining the mission and daily operations of the Division of Conservation.
Chairman Arnold asked why Logan County is divided into two conservation districts. Mr. Coleman replied that legislation was enacted to allow the consolidation of the two, but the parties involved have not chosen to do so.
Chairman Arnold expressed his appreciation for the conservation cooperative in his district.
Representative Thompson if there is a maximum amount appropriated for the Stewardship Program. Mr. Coleman replied in the affirmative, adding that if agronomic it is a 75/25 split. Representative Palumbo asked if we have met the match. Mr. Coleman replied that we have not.
Representative Palumbo requested that a list of priorities be provided to the committee. Mr. Coleman agreed to provide the information at a later date.
Chairman Arnold thanked Mr. Coleman and then asked Mr. Rick Bender, Director, Division of Oil and Gas Conservation, Department of Natural Resources, to come forward.
Mr. Bender gave a brief presentation outlining the mission and daily operations of the Division of Oil and Gas Conservation.
Chairman Arnold asked if the amount collected in fees from requests for new licenses would offset the cost of personnel. Mr. Bender replied in the affirmative, adding that fees continue to increase. Chairman Arnold commended the Division for their performance.
Representative Thompson asked if out-of-state entities are involved. Mr. Bender replied that 90% are from in-state business, adding that there some new operators in the state, with more outside companies coming in.
Chairman Arnold asked if it was correct that there are no applications for drilling coal bed methane. Mr. Bender replied that is correct.
Representative Gooch asked if there is interest primarily for gas companies in Western Kentucky. Mr. Bender replied that there is some interest.
Chairman Arnold thanked Mr. Bender for his presentation. He then invited Mr. Corden Porter, Deputy Commissioner of the Department of Labor, to come forward.
Deputy Commissioner Porter gave a brief presentation outlining the mission of the Department of Labor and its various divisions.
Representative Simpson asked for elaboration on the issue of fair pay. Mr. Porter replied that the issue would be explained in more detail in the presentation of the Office of Workplace Standards.
Representative Simpson inquired about the Hispanic population in Kentucky's agricultural community. Mr. Porter stated that he couldn't speak for the agricultural community. Representative Simpson asked if bilingual communication is required for those issuing permits for residential construction. Mr. Porter replied that is correct. Representative Simpson asked about the responsibility for ascertaining if immigrants are legal. Mr. Porter replied that it is the responsibility of the federal government.
Chairman Arnold thanked Mr. Porter, then welcomed Stephan Morrison, Executive Director of the Office of Occupational Safety and Health, and asked him to step forward.
Mr. Morrison gave a brief presentation outlining the mission and daily operations of the Office of Occupational Safety and Health (KOSH).
Chairman Harris asked if Kentucky has input into federal changes in standards. Mr. Morrison replied that some input is given, because all states have delegates, adding that meetings are held three times per year with other states. He went on to say that the state plan is required to be "as effective as" federal regulations, or it can be more effective, in regard to such things as reporting requirements, etc.
Chairman Harris asked if KOSH has limited authority in agricultural issues. Mr. Morrison replied that it has none.
Chairman Harris remarked that it is a tough job and commended Mr. Morrison and his staff for their hard work. He then invited Chris Smith, Executive Director, Office of Workplace Standards, Department of Labor, to come before the committee.
Mr. Smith gave a brief presentation outlining the mission and daily operations of the Office of Workplace Standards (OWS).
Chairman Harris asked if the OWS investigates worker's comp fraud. Mr. Smith replied that they do not have the authority to conduct investigations, however, they do work closely with the Attorney General's office.
Chairman Arnold inquired about complaints from citizens. Mr. Smith answered that the majority of citizen complaints come from employees across the state. Chairman Arnold asked for an example. Mr. Smith said that most complaints are from employees who have quit or have been terminated and have not received a check within the appropriate amount of time.
Representative Simpson asked for numbers of overtime violations listed by type. Mr. Smith replied that there were over 1,700 violations reported last year, and will provide a breakdown of the violations by type to the committee at a later date.
Representative Simpson asked if there are complaints regarding the issue of exempt versus non-exempt employees. Mr. Smith replied in the affirmative, adding that these take longer to investigate.
Representative Simpson asked if a proactive stance is taken. Mr. Smith replied in the affirmative, adding that an attempt is being made to better educate employers.
Chairman Arnold thanked Mr. Smith for his presentation. He then invited Mr. Tom Cannady, Executive Director, Office of Labor, Management Relations and Mediation, Department of Labor, to come forward.
Mr. Cannady gave a brief presentation of the mission and daily operations of the Office of Labor, Management Relations and Mediation.
Chairman Arnold inquired about calls coming into the office and how busy they are. Mr. Cannady replied that they are very busy, especially at this time of year, due to the annual Kentucky Labor-Management Conference to be held this fall.
Chairman Arnold asked about the location of the conference. Mr. Cannady replied that it is to be held at Kentucky Dam Village. Representative Clark expressed his thanks for keeping the conference at that location.
Chairman Arnold thanked all the guests for appearing before the committee. He then announced that the next meeting is tentatively scheduled for August 24, 2006.
There being no further business, the meeting was adjourned at 11:35 A.M.