The December meeting of the Administrative Regulation Review Subcommittee was held on Tuesday, December 12, 2000, at 10:00 AM, in Room 149 of the Capitol Annex. Representative John Arnold Jr., Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representative John Arnold Jr., Chair; Senators Marshall Long, Joey Pendleton, and Richard Roeding; Representatives Woody Allen, James Bruce, and Jimmie Lee.
Guests: Pat Arnold, Prosecutors Advisory Council; Jackie Shrout, Howard Lawson, Daniel F. Egbers, Johnny R. Keene, Personnel Cabinet; Scott Porter, Office of Attorney General; Caroline Bevins-Taylor DVM, Nancy L. Black, Board of Veterinary Examiners; Becky Klusch, Board of Physical Therapy; Mark Farrow, Department of Agriculture; Ruth Thompson, Emily Burks, Cabinet for Economic Development; Hank Wiseman, Diana Andrews, Millie Ellis, Heather Weese, Natural Resources and Environmental Protection Cabinet; Brenda Priestley, Tamela Biggs, Department of Corrections; Kevin M. Noland, Board of Education; Sheila Vice, Terry Vance, Department of Education; Mary Ellen Wiederwohl, Education Professional Standards Board; Sherry Deatrick, Michael Harmon, Workforce Development Cabinet; Rick Johnstone, Department of Alcoholic Beverage Control; Suetta Dickinson, Randy Peppers, Ellen Navolio, Robin Coombs, Vicky Horn, Mona Carter, Ralph Von Derau, Department of Insurance; Judith Walden, Department of Housing, Buildings and Construction; Shirley Eldridge, Ann Gordon, Mike Littlefield, Pamela J. Aldridge, Charles Kendell, Jim Carreer, Cabinet for Health Services; Stephanie Brammer-Barnes, Janice Kline, Robert L. Blackburn, Cabinet for Families and Children; Bart Baldwin, Children's Alliance; Mike Mayes, Bob Barnett, Kentucky Pharmacists Association; Lloyd Cress, AIK; Jon OShaughnesy, Lake Cumberland Regional; Ronny Pryor, LifePoint Hospital; Sam Crawford, Kentucky Farm Bureau; Mike Rodman, KAHCF; Dan Walton, KMHI/KAPA; Gay Dwyer, Kentucky Retail Federation; Jim Carloss, HBAK; Nancy Galvagni, Kentucky Hospital Association.
LRC Staff: Dave Nicholas, Donna Little, Edna Lowery, Susan Wunderlich, Angela Phillips, Ellen Steinberg, Ellen Benzing.
The Subcommittee determined that the following administrative regulations, as amended by the promulgating agency and the Subcommittee, complied with statutory requirements:
Office of the Attorney General: Prosecutors Advisory Council: Medical Examination of Sexual Abuse Victims
40 KAR 3:010 & E. Payment schedule to hospitals, physicians and sexual assault nurse examiners for medical examination of victims of sexual offenses. Pat Arnold represented the Council. This administrative regulation was amended as follows: (1) the RELATES TO, STATUTORY AUTHORITY, and NECESSITY, FUNCTION, AND CONFORMITY paragraphs were amended to correct statutory citations; (2) Section 1 was deleted to remove superfluous language, not related to the statutory mandate; (3) Section 2 was amended for minor technical corrections; and (4) the TITLE was amended to delete superfluous language as required by KRS 13A.222(4)(a).
Personnel Cabinet, Classified
101 KAR 2:106. Annual leave sharing procedures. Howard Lawson, Office of Administrative Services, Dan Egbers, General Counsel, Johnny Keene, Office of Employee Evaluations, and Jackie Shrout, Director, Employee Records Division, represented the Cabinet.
In response to questions by Senator Roeding, Mr. Egbers stated that this administrative regulation treated classified and unclassified employees the same. The annual leave sharing procedures mirrored the sick leave sharing procedures which had been in effect for many years. House Bill 265 was enacted to enable employees to donate or receive annual leave if the employee was required to miss at least ten days of work because of a natural disaster or fire. The similar donation program for sick leave sharing had worked effectively and efficiently and the Cabinet anticipated the annual leave program to work the same way.
This administrative regulation was amended as follows: (1) the RELATES TO and STATUTORY AUTHORITY paragraphs were amended to correct statutory citations; (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220(3)(f); (3) Sections 1 and 2 were amended to: (a) delete provisions that repeated or summarized KRS 18A.203, as required by KRS 13A.120(2)(e) and (f); (b) specify the names of the required application and request forms; and (c) comply with the: 1. format requirements of KRS 13A.220(4); and 2. drafting requirements of KRS 13A.222(4); (4) a new Section 2 was created to clearly establish the employee eligibility requirements; and (5) a new Section 4 was created to incorporate by reference the required forms.
101 KAR 2:180. Employee performance evaluation system. In response to questions by Senator Roeding, Mr. Egbers stated that this administrative regulation required evaluations of all classified employees but did not apply to unclassified employees. The unclassified employees were not included in the evaluation system because the procedures provided a right to appeal to the Personnel Board and that right only applied to merit system employees.
This administrative regulation was amended as follows: (1) the STATUTORY AUTHORITY paragraph was amended to correct statutory citations; (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220(3)(f); (3) Section 1 was amended to: (a) establish the annual performance period for the first year of the program; and (b) specify the name of the required form; and (4) Sections 1, 3, 5, 6, 7, 8, and 9 were amended to comply with the: (a) format requirements of KRS 13A.220(4) and 13A.2251(2); and (b) drafting requirements of KRS 13A.222(4).
Board of Physical Therapy
201 KAR 22:070. Requirements for foreign-educated physical therapists. Becky Klusch, Executive Director, represented the Board.
In response to questions by Chairman Arnold, Ms. Klusch stated that this administrative regulation reduced the amount of required supervised practice time for foreign educated physical therapists from one year to three months. If a therapist did not successfully complete the supervised work, the therapist was given an additional three month period for successful completion. After six months, the therapist would not be eligible to practice in Kentucky. Three or four foreign educated physical therapists came into Kentucky to practice within the last year. This administrative regulation would not affect the students educated in Kentucky.
In response to questions by Senator Roeding, Ms. Klusch stated that she was not familiar with the reasons for decreasing the score on the test of spoken English from 55 to 50. The reduction in the required supervised practice time would enable practitioners to evaluate therapists in a shorter time frame and to remove less competent therapists in a timelier manner. The administrative regulation also required foreign-educated physical therapists to practice, and be licensed, in their country prior to working in Kentucky.
Subcommittee staff stated that this administrative regulation established the score at the same level that was the national standard for tests for persons who were educated in a foreign program. The reduction in the required supervised practice time would protect consumers because students could be removed after six months instead of one year.
This administrative regulation was amended as follows: Sections 1, 2 and 3 were amended to comply with the: (1) format requirements of KRS 13A.220(4); and (2) drafting requirements of KRS 13A.222(4).
Department Of Agriculture: Division of Markets: Ginseng
302 KAR 45:010. Ginseng, general provisions. Mark Farrow, General Counsel, represented the Department.
In response to questions by Representative Allen, Mr. Farrow stated that this administrative regulation was amended to conform to federal standards by allowing for survival of the species and was not the result of Kentucky legislation. He was not aware of a fee charged for a ginseng dealer license. The costs of the licenses and record reporting were absorbed as part of the Department’s administrative costs. Violations of the ginseng laws were taken seriously by the Department and the federal government, because the plant was fragile. The Department would enforce this administrative regulation when a complaint was filed.
Representative Allen stated that the government should not be involved in regulating a process which the government was not able to enforce or properly monitor. Rather than enforcing requirements without proper monitoring capabilities, the government should encourage growers to have proper respect for the plants.
This administrative regulation was amended as follows: (1) the RELATES TO and STATUTORY AUTHORITY paragraphs were amended to correct statutory citations; (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 11 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4); and (3) a new Section 12 was created to incorporate by reference the application form ("Kentucky Ginseng Dealer Application") and the reporting forms (American Ginseng Export Certificate, Dealer Transaction Log - Sales, Ginseng Dealer Purchase Record, and Wild ginseng Purchase Record) used by the department.
Natural Resources and Environmental Protection Cabinet: Department for Environmental Protection: Division for Air Quality: Permits, Registrations, and Prohibitory Rules
401 KAR 52:001. Definitions for 401 KAR Chapter 52. Diana Andrews, Assistant Director, and Hank Wiseman represented the Cabinet.
In response to questions by Senator Roeding, Ms. Andrews stated that the definitions established in this administrative regulation were not more stringent than the federal definitions.
This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 were amended to: (1) correct statutory citations; and (2) correct minor typographical errors.
401 KAR 52:020. Title V permits. In response to questions by Senator Roeding, Mr. Wiseman stated that the material incorporated by reference had not been changed since the administrative regulations were filed after the public hearing. Title V, which was part of the Clean Air Act, referred to an operating permits program which required that all sources which emitted above a certain pollution level have an operating permit that contained all the applicable requirements for the source in one permit.
This administrative regulation was amended as follows: (1) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 3, 7, 11, 12, and 15 were amended to correct minor typographical errors; and (2) Section 21 was amended to establish the requirements for compliance certifications, including the deadline for submissions.
401 KAR 52:030. Federally-enforceable permits for non-major sources. In response to a question by Senator Roeding, Mr. Wiseman stated that the Cabinet had proposed an amendment to this administrative regulation, 401 KAR 52:020, and 401 KAR 52:040, at the request of AIK Industries. The amendment clarified when each type of source would be required to submit an annual compliance certification, which sources were required to submit the certification, and when the certifications were required.
This administrative regulation was amended as follows: (1) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 2, 4, 7, 11, and 12 were amended to correct minor typographical errors; and (2) Section 21 was amended to establish the requirements for compliance certifications, including the deadline for submissions.
401 KAR 52:040. State-origin permits. This administrative regulation was amended as follows: (1) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 11 and 19 were amended to correct minor typographical errors; and (2) Section 19 was amended to establish the requirements for compliance certifications, including the deadline for submissions.
401 KAR 52:050. Permit application forms. This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 and 2 were amended to correct minor typographical errors.
401 KAR 52:060. Acid rain permits. This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct a minor typographical error.
401 KAR 52:070. Registration of designated sources. This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct minor typographical errors.
401 KAR 52:080. Regulatory limit on potential to emit. In response to questions by Chairman Arnold, Mr. Wiseman stated that this administrative regulation allowed sources that had the potential to emit enough to be a major source, but whose actual emissions were less than fifty percent of that level, to avoid Title V if the source maintained records that showed the source stayed below that fifty percent level. This administrative regulation was strictly enforced and the records were checked regularly.
In response to a question by Senator Roeding, Mr. Wiseman stated that the fifty percent level was the same level established in the federal program. This administrative regulation was promulgated many years ago before the federal government developed its own program that deferred sources with actual emissions of less than fifty percent. However, because the federal program was ending, Kentucky was required to have its own program approved as part of its state implementation plan or those sources would be required to have a Title V permit.
This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct minor typographical errors.
401 KAR 52:090. Prohibitory rule for hot mix asphalt plants. In response to questions by Senator Roeding, Mr. Wiseman stated that this administrative regulation established a tonnage limit for the amount of asphalt a plant could produce each year, depending on whether the plant was a batch or drum-mix plant. If the plant stayed below the tonnage limits, the plant was not required to have a Title V permit.
Ms. Andrews stated that this administrative regulation was developed in conjunction with, and supported by, the industry. This administrative regulation did not apply artificial limits to the industry to keep them from operating, but rather kept the plants out of the Title V permitted arena.
In response to a question by Chairman Arnold, Mr. Wiseman stated that this administrative regulation had been in effect for many years and was being recodified to a new chapter of the Kentucky Administrative Service.
In response to questions by Representative Allen, Mr. Wiseman stated that this administrative regulation affected 120 asphalt plants, but some of the plants were owned by the same companies. This administrative regulation applied to all asphalt plants in Kentucky unless the plant chose to obtain a Title V permit or another permit that had an established limit. This administrative regulation provided that Kentucky asphalt plants were not required to have a Title V permit if the plant did not produce more than 250,000 tons a year for a hot mix and 400,000 tons a year for a drum plant. The limits were calculated to insure that the source did not reach the major source threshold for emissions. Asphalt producers wanted the Department to promulgate this administrative regulation to enable them to avoid the Title V permitting process.
Ms. Andrews stated that this administrative regulation would assist small asphalt companies because the companies would not be required to obtain a Title V permit. She believed all asphalt companies supported this administrative regulation because relieved them of onerous permitting requirements. The tonnage limit was calculated to keep the plants below the major source threshold for Title V permits.
Mr. Wiseman stated that when this administrative regulation was first promulgated, there were no asphalt plants in Kentucky that produced close to 400,000 tons a year. Most asphalt plants produced between 100,000 and 200,000 tons a year. Recently, some plants wanted to exceed the 400,000 ton limit and the Cabinet said those plants would be required to obtain a Title V permit.
This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct minor typographical errors.
401 KAR 52:100. Public, affected state, and U.S. EPA review. This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct minor typographical errors.
Justice Cabinet: Department of Corrections: Division of Adult Institutions: Office of the Secretary
501 KAR 6:070. Kentucky Correctional Institution for Women. Tamela Biggs, Staff Attorney, represented the Department.
This administrative regulation was amended as follows: (1) Section 1 was amended to: (a) comply with the format requirements of KRS 13A.2251(2); and (b) reflect the new edition date of the material incorporated by reference; (2) Policy 03-01-01 was amended to refer to statutory sanctions; and (3) Policy 03-02-01 was amended to assure protection of an employee's 5th Amendment rights during an investigation.
501 KAR 6:170. Green River Correctional Complex. In response to a question by Chairman Arnold, Ms. Biggs stated that this administrative regulation required an inmate who entered the institution with medically-required contact lenses to purchase his own supplies. When the inmate needed an upgraded prescription, the inmate would be required to receive glasses, rather than contact lenses.
This administrative regulation was amended as follows: (1) Section 1 was amended to reflect the new edition date of the material incorporated by reference; and (2) GRCC 13-11-01 was amended to: (a) clarify the policy statement relating to informed consent; (b) establish the requirements relating to an inmate’s refusal of treatment or examinations and missed appointments; and (c) reference the medical director, rather than the health services manager.
Education, Arts, and Humanities Cabinet: Board of Education: Department of Education: Office of District Support Services: General Administration
702 KAR 1:150 & E. Employment of retired teachers in critical shortage areas. Kevin Noland, General Counsel, represented the Department.
In response to questions by Senator Roeding, Mr. Noland stated that a program had been established by statute to provide alternative certification for persons who were retired from the military to become teachers. This administrative regulation helped address the teacher shortage in schools and implemented House Bill 519, enacted during the 2000 Regular Session, by permitting retired teachers to teach in critical shortage areas (including math, science, and special education). Under the previous law, a retired teacher receiving retirement benefits could work up to 100 days during a fiscal year as a substitute teacher. After that limit, the teacher’s retirement benefits would be reduced. Under the new law, school districts were allowed to hire retired teachers in critical shortage areas for one year contract periods. School districts could hire a limit of two retired teachers or one percent of their teaching force, whichever was greater. After September 15, the unused slots were placed in a statewide pool for use by the remaining school districts. This administrative regulation established the application process for the employment of retired teachers in critical shortage areas. The superintendent would be required to fax the form to the Department, which would respond within two days. This year, fifty-eight applications were submitted and approved. Because the statewide quota is 571 teaching slots, there were 513 positions available for school districts to use.
This administrative regulation was amended as follows: the RELATES TO and STATUTORY AUTHORITY paragraphs were amended to correct statutory citations.
Education Professional Standards Board
704 KAR 20:120 & E. Emergency certification and out-of-field teaching. Mary Ellen Wiederwohl, Legislative Liaison, represented the Board.
In response to questions by Chairman Arnold, Ms. Wiederwohl stated that the definition of out-of-field teaching established in this administrative regulation addressed the issues that had risen during the 2000 Regular Session. During the session, there was concern that teachers who held a previously-granted certificate to teach kindergarten (or first grade) through eighth grade would be classified as out-of-field teachers. This administrative regulation did not classify teachers with that certificate who taught in a content area at a middle school as an out-of-field teacher. This administrative regulation defined out-of-field teachers as those people who had not been fully prepared as teachers, including those without a teaching certificate or those with an emergency, probationary, or temporary provisional certificate, who were required to undergo additional preparation for full certification. The information gathered in this administrative regulation was used for reporting purposes and did not affect a teacher’s employment.
In response to questions by Senator Roeding, Ms. Wiederwohl stated that this administrative regulation equally affected vocational and regular education teachers, but would have a greater affect in special education and other shortage areas. There was not a teacher shortage in vocational education because those individuals were able to obtain certification based on their occupational experience without additional education requirements prior to their employment. Because of the shortage of gifted and talented teachers, the Board promulgated a separate administrative regulation earlier this year to establish a probationary endorsement for gifted and talented teachers. This endorsement enabled teachers to concurrently complete preparation and teach in a critical shortage area.
This administrative regulation was amended as follows: (1) the RELATES TO and STATUTORY AUTHORITY paragraphs and Section 3(2) were amended to correct statutory citations; (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220(3)(f); (3) Section 3(3) was amended to delete provisions that repeated existing statutes, as prohibited by KRS 13A.120(2)(e) and (f); (4) Section 4 was amended to establish the classification of out-of-field teaching, pursuant to KRS 161.1221(1), in four separate categories; and (5) Sections 2, 3, and 5 were amended to comply with the: (a) format requirements of KRS 13A.220(4) and 13A.2251(2); and (b) drafting requirements of KRS 13A.222(4).
Workforce Development Cabinet: Office of Training and Reemployment
790 KAR 1:020. 1999-2004 Strategic Five (5) Year State Workforce Investment Plan. Sherry Deatrick, General Counsel, and Mike Harmon, Office of Training and ReEmployment, represented the Cabinet.
In response to questions by Senator Roeding, Ms. Deatrick stated that the state workforce investment plan was a plan the United Stated Department of Labor required states to submit under the Workforce Investment Act, which replaced the Job Training Partnership Act. The plan established the goals and strategies for implementing the legislation and enabled people to receive services for job training from one stop centers throughout Kentucky.
This administrative regulation was amended as follows: (1) the RELATES TO, STATUTORY AUTHORITY, and NECESSITY, FUNCTION, AND CONFORMITY paragraphs were amended to correct statutory citations; and (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 2 were amended to comply with the: (a) format requirements of KRS 13A.2251(2); and (b) drafting requirements of KRS 13A.222(4).
Public Protection and Regulation Cabinet: Department of Alcoholic Beverage Control: Licensing
804 KAR 4:015. Interlocking interest between licensees prohibited. Rick Johnstone, Commissioner, represented the Department. Dan Meyer, Wine Spirits Wholesaler Association, appeared in support of this administrative regulation.
This administrative regulation was amended as follows: Sections 1 through 5 were amended to comply with the drafting requirements of KRS 13A.222(4).
Department of Insurance: Agents, Consultants, Solicitors and Adjusters
806 KAR 9:060 & E. Identification cards. Mona Carter, Deputy Commissioner, Vicky Horn, Staff Attorney, and Suetta Dickinson, Staff Attorney, represented the Department.
This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 were amended to comply with the drafting requirements of KRS 13A.222(4)(j).
806 KAR 9:120 & E. Unlicensed adjusters. In response to questions by Representative Bruce, Ms. Carter stated that insurance companies were required to request an additional extension for unlicensed adjusters to work in Kentucky. The Department had difficulty controlling agents who came into Kentucky to fraudulently sell insurance because those individuals were not associated with an insurance company and the Department might not be aware of their location. The Department’s fraud unit patrolled the state and would respond to complaints regarding agents. This administrative regulation addressed the situation where a large company, such as State Farm or Allstate, did not have enough adjusters in the state to respond to an emergency situation and requested assistance of adjusters from other states. Recent examples include the tornado and hail storms in Bullitt and Jefferson Counties and in Bowling Green. Some larger companies required additional time to process the claim. The Commissioner was authorized to grant an extension up to ninety days depending on the circumstances. If a disaster hit Kentucky, Tennessee, Indiana, and Ohio at the same time, the state would need to be more tolerant regarding the number of adjusters allowed in Kentucky and the timeframes.
Representative Bruce stated that he did not agree with this administrative regulation. Insurance companies made money from interest and if the companies were given extra time to complete their claims, some companies would simply use the extra time to delay claims to earn more interest.
Ms. Carter stated that insurance companies were required to submit a list of the adjusters and their license information for Department approval. The Department was fully aware of each adjuster that insurance companies brought into Kentucky and checked their license with their home states.
In response to questions by Chairman Arnold, Ms. Carter stated that unlicensed adjusters referred to adjusters who were licensed in another state but were not licensed in Kentucky. The unlicensed adjusters were brought into Kentucky to assist with a catastrophic problem to process citizens’ claims quicker. The criminal fraud division of the Department handled fraudulent claims.
This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 were amended to comply with the drafting requirements of KRS 13A.222(4)(j).
806 KAR 9:200 & E. Volume of insurance agent exchange of business. This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 3, and 4 were amended to: (1) correct a statutory citation; and (2) comply with the drafting requirements of KRS 13A.222(4).
806 KAR 9:210 & E. Time limit for replacement of evidence of licensee financial responsibility. In response to questions by Senator Roeding, Ms. Carter stated that a solicitor was a staff person in an agent’s office who was licensed but needed the agent’s authorizations to act. Now, those individuals were licensed as agents.
This administrative regulation was amended as follows: (1) the STATUTORY AUTHORITY paragraph was amended to correct a statutory citation; (2) Section 1 was amended to comply with the drafting requirements of KRS 13A.222(4)(j); and (3) Section 4 was amended to change the edition date of the material incorporated by reference.
806 KAR 9:250 & E. Specialty credit insurance producer and managing employee. In response to a question by Senator Roeding, Ms. Carter stated that House Bill 595, enacted during the 2000 Regular Session, created the specialty credit producers for retail establishments to permit licensure of establishments and to authorize them to have a managing agent.
This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct statutory citations; and (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to comply with the drafting requirements of KRS 13A.222(4).
Unauthorized Insurers' Prohibitions, Process and Advertising
806 KAR 11:010 & E. Industrial insured, government entity insured, and exempt commercial policyholder. In response to questions by Senator Roeding, Ms. Carter stated that this administrative regulation implemented commercial deregulation legislation enacted during the 2000 Regular Session. This administrative regulation established two additional categories of persons that could register as exempt from using forms and rates filed with the Department. The three categories included industrial insureds, government entity insureds, and exempt commercial policyholders. Those entities were required to submit an application to register with the Department to use manuscript rates and to use forms and rates not approved by the Department. The Department estimated its costs of implementation at $2500. Rate filings cost $100.
Subcommittee staff stated that this administrative regulation did not establish fees. The rate filing fees were established in 806 KAR 4:010E, which, as an emergency administrative regulation, was deferred until the January, 2001 Subcommittee meeting.
This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct statutory citations; and (2) amends Sections 1, 8, 9 and 10 were amended to comply with the drafting requirements of KRS 13A.222(4).
Rates and Rating Organizations
806 KAR 13:090. Premium financing. This administrative regulation was amended as follows: the RELATES TO paragraph was amended to correct statutory citations.
806 KAR 13:150 & E. Property and casualty rate and rule filings. This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct statutory citations; and (2) Sections 6, 8, 9, 10, 11, 12 and 13 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4).
Insurance Contract
806 KAR 14:005 & E. Rate and form filing for life and health insurers. In response to a question by Senator Roeding, Ms. Carter stated that this administrative regulation streamlined requirements for insurers.
This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct statutory citations; and (2) Sections 1 through 10 were amended to comply with the: (a) format requirements of KRS 13A.220(4) and 13A.2251(2); and (b) drafting requirements of KRS 13A.222(4).
806 KAR 14:006 & E. Property and casualty insurance form filings. In response to a question by Senator Roeding, Ms. Carter stated that the Department did not anticipate additional costs to the insurers from this administrative regulation, because the changes streamlined and clarified existing requirements.
This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct statutory citations; and (2) Sections 6 through 13 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4).
Casualty Insurance Contracts
806 KAR 20:010. Declination, cancellation, and nonrenewal of property and casualty insurance. This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct statutory citations; and (2) Sections 1, 2, 3, 5, and 6 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4).
Health Maintenance Organizations
806 KAR 38:020 & E. Health maintenance organization agent license. In response to a question by Representative Bruce, Ms. Carter stated that the fee for a health maintenance organization agent license was not increased by this administrative regulation. This administrative regulation defined an HMO agent.
In response to a question by Senator Roeding, Ms. Carter stated that this administrative regulation clarified that HMO agents were required to comply with Subtitle 9, which established requirements for agent licensing.
This administrative regulation was amended as follows: the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct statutory citations.
Department of Housing, Buildings and Construction: Kentucky Building Code
815 KAR 7:110. Criteria for expanded local jurisdiction. Judith Walden, General Counsel, represented the Department.
In response to a question by Senator Roeding, Ms. Walden stated that Kentucky law authorized local governments to regulate certain buildings and authorized the Department to regulate other buildings. This administrative regulation established a process for expanding local jurisdiction to enable to local government to inspect buildings previously inspected by the Department. The inspection fees would be charged by the entity that inspected the building. The Department did not anticipate an increase in fees from this administrative regulation.
This administrative regulation was amended as follows: (1) Section 5 was amended to correct a statutory citation; and (2) Sections 1, 3, and 6 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4).
Cabinet for Health Services: Department for Public Health: State Health Plan
902 KAR 17:040. Data reporting by health care providers. Charles Kendall, Director, Health Policy Development Branch, Department of Public Health, represented the Cabinet.
This administrative regulation was amended as follows: (1) the RELATES TO paragraph was amended to correct a statutory citation; (2) Section 1 was amended to move substantive provisions from Section 1(2) to Section 2(2)(b), as required by KRS 13A.222(4)(e); and (2) Section 1 through 9 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4).
Department for Mental Health and Mental Retardation Services: Institutional Care
908 KAR 3:050 & E. Per diem rate pursuant to the "Patient Liability Act of 1978." Mike Littlefield, Administrative Regulation Coordinator, and Pam Aldridge, Division of Administration and Financial Management, represented the Department.
This administrative regulation was amended as follows: (1) the RELATES TO and STATUTORY AUTHORITY paragraphs were amended to correct statutory citations; (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220(3)(f); (3) Section 1 was amended to delete provisions that established the all-inclusive per diem rate for Eastern State Hospital because that facility is not operated by the Cabinet; (4) Section 2 was amended to: (a) clarify that the rates established in this administrative regulation applied to facilities operated by the cabinet; and (b) increase the per diem rate for Oakwood from $205 to $243; and (5) Section 3 was amended to conform.
Cabinet for Families and Children: Department for Community Based Services: Division of Policy Development: Child Welfare
922 KAR 1:360 & E. Private child care placements, levels of care and payment. Janice Kline, Assistant Director, and Karen Doyle, Director’s Staff, represented the Cabinet. Bart Baldwin, Children’s Alliance, appeared in support of this administrative regulation.
In response to questions by Senator Roeding, Ms. Kline stated that this administrative regulation increased the reimbursement rates for private child care to reflect actual costs. The rates were comparable between those paid for agency care and for private care.
This administrative regulation was amended as follows: (1) the TITLE, the NECESSITY, FUNCTION, AND CONFORMITY paragraph, and Sections 1 through 11 were amended to comply with the: (a) format requirements of KRS 13A.220(4); and (b) drafting requirements of KRS 13A.222(4); and (2) a new Section 2 was created to: (a) reflect the statutory requirement to provide incentives for successful placements; and (b) describe the calculations upon which payments will be made.
The Subcommittee determined that the following administrative regulations complied with statutory authority:
Board of Veterinary Examiners
201 KAR 16:100. Examination. Nancy Black, Director, Division of Occupations and Professions, and Scott Porter, Assistant Attorney General, represented the Board.
Natural Resources and Environmental Protection Cabinet: Department for Environmental Protection: Division for Air Quality: Air Quality - General Administrative Procedures
401 KAR 50:071. Repeal of 401 KAR 50:030, 401 KAR 50:031, 401 KAR 50:032, 401 KAR 50:033, 401 KAR 50:034, 401 KAR 50:035, and 401 KAR 50:072. Diana Andrews, Assistant Director, and Hank Wiseman represented the Cabinet.
Education, Arts, and Humanities Cabinet: Board of Education: Department of Education: Office of Learning Programs Development: Office of Instruction
704 KAR 3:490 & E. Teachers' Professional Growth Fund. Kevin Noland, General Counsel, represented the Department.
Health and Physical Education Programs
704 KAR 4:020 & E. School health services.
Department of Insurance: Agents, Consultants, Solicitors and Adjusters
806 KAR 9:006 & E. Repeal of 806 KAR 9:005, 806 KAR 9:100, 806 KAR 9:150, 806 KAR 9:170, 806 KAR 9:180. Mona Carter, Deputy Commissioner, Vicky Horn, Staff Attorney, and Suetta Dickinson, Staff Attorney, represented the Department.
In response to questions by Representative Bruce, Ms. Carter stated that this administrative regulation repealed these five administrative regulations because their topics were now addressed in other administrative regulations.
Department of Housing, Buildings and Construction: Division of Plumbing
815 KAR 20:020. Parts or materials list. Judith Walden, General Counsel, represented the Department.
The Subcommittee and promulgating administrative bodies agreed to defer consideration of the following administrative regulations to the next meeting of the Subcommittee:
Kentucky Higher Education Assistance Authority: Division of Student Services: Early Childhood Development Scholarship Program
11 KAR 16:030. Early Childhood Development Scholarship Program overawards and refunds.
11 KAR 16:040. Early Childhood Development Scholarship Program recordkeeping requirements.
11 KAR 16:050. Early Childhood Development Scholarship Program costs.
Revenue Cabinet: Department of Law: Division of Tax Policy: Sales and Use Tax; Miscellaneous Retail Transactions
103 KAR 28:140E. Telephonic and telegraphic communications and services.
Selective Excise Tax; Motor Vehicle Usage
103 KAR 44:060. Motor vehicle usage tax valuation.
Board of Medical Licensure
201 KAR 9:021E. Medical and osteopathic schools approved by the board; denial or withdrawal of approval; application of KRS 311.271; postgraduate training requirements; approved programs; recognition of degrees.
Board of Certification for Professional Counselors
201 KAR 36:020. Fees - renewal date.
201 KAR 36:070. Education requirements.
Tourism Development Cabinet: Department of Fish and Wildlife Resources: Game
301 KAR 2:111E. Deer and turkey hunting on federal areas.
301 KAR 2:178E. Deer hunting on wildlife management areas.
301 KAR 2:225E. Dove, wood duck, teal and other migratory game bird hunting.
301 KAR 2:226E. Youth waterfowl hunting season.
Hunting and Fishing
301 KAR 3:100E. Special commission permits.
Licensing
301 KAR 5:030E. Purchasing licenses and obtaining replacement licenses.
Cabinet For Economic Development: Department of Financial Incentives: Tax Incentives Division: Kentucky Economic Opportunity Zone Program
307 KAR 7:010. Definitions. Ruth Thompson and Emily Burks, Attorney, represented the Department.
In response to questions by Representative Bruce, Ms. Thompson stated that this administrative regulation established the Kentucky Economic Opportunity Zone program which allowed manufacturing companies and service and technology companies to receive credit against their Kentucky income tax and to assess job development assessment fees if the local government agreed. The program mirrored other economic development programs currently in place. The Department established economic opportunity zones in inner city areas of nine counties (Campbell, Christian, Daviess, Fayette, Henderson, Jefferson, Kenton, Madison, McCracken and Warren Counties). Additionally, the sixty-two counties that had been approved to receive credits under the Kentucky Rural Economic Development Act were eligible for the program. While the program did not apply to retail centers (such as a Walmart store), the program could apply to a distribution center, which would receive the same credits. The Kentucky Economic Development Finance Authority approved all projects in the program.
In response to questions by Senator Roeding, Ms. Thompson stated that the counties that were picked were contained census tracts that met the three criteria established in the statute, including a minimum poverty rate of 150 percent of the US poverty rate, an unemployment rate greater than the overall Kentucky rate, and a minimum population density of 200 percent of the average Kentucky census tract. Each county had a certain number of tracts eligible for the program.
Ms. Burke stated that the identification of the nine counties was based on a preliminary determination the Cabinet made during the 2000 Regular Session and the eligible counties could change. The qualified zones and areas were based on census tract criteria relating to population density, unemployment rates and the area’s general poverty. The program was designed to assist overpopulated, impoverished areas develop an economic base to benefit the citizens of the zone, county, and state.
Senator Roeding stated that the economic development programs concerned him because the programs differentiated between counties. Because businesses moving to Kentucky naturally would relocate to areas with the economic development incentives, the incentives should be offered to all counties.
Representative Bruce stated that he wanted to study this administrative regulation and the program an additional month and requested that this administrative regulation be deferred.
Ms. Thompson stated that the Department would agree to his request to defer consideration of this administrative regulation.
In response to a request by Representative Bruce, Ms. Thompson stated that she would provide additional information regarding the program and this administrative regulation to the Subcommittee members.
Without objection, this administrative regulation was deferred.
Labor Cabinet: Department of Workers' Claims
803 KAR 25:110E. Workers' compensation managed health care plans.
803 KAR 25:190E. Utilization review and medical bill audit.
Department of Insurance: Fees and Taxes
806 KAR 4:010E. Fees of the Department of Insurance.
Agents, Consultants, Solicitors and Adjusters
806 KAR 9:001E. Prelicensing courses of studies; instructors.
806 KAR 9:070E. Examinations.
806 KAR 9:220E. Continuing education.
806 KAR 9:260E. Rental vehicle agent.
806 KAR 9:280E. Business entity election.
806 KAR 9:300E. Current licensees in good standing to receive equivalent license.
Health Insurance Contracts
806 KAR 17:180E. Standard health benefit plan and comparison format.
806 KAR 17:220E. Approval criteria and requirements for reentry into the Kentucky health insurance market.
806 KAR 17:230E. Requirements regarding medical director's signature on health care benefit denials.
806 KAR 17:260E. Conversion policy minimum benefits.
806 KAR 17:280E. Registration, utilization review, and internal appeal.
806 KAR 17:290E. Independent external review program.
806 KAR 17:300E. Provider agreement filing requirements.
Kentucky Racing Commission: Thoroughbred Racing
810 KAR 1:009E. Jockeys and apprentices.
810 KAR 1:026E. Racing associations.
810 KAR 1:027E. Entries, subscriptions, and declarations.
810 KAR 1:028E. Disciplinary measures.
Harness Racing
811 KAR 1:075E. Racing and track rules.
Cabinet for Health Services: Certificate of Need
900 KAR 6:050E. Certificate of need administrative regulation.
Office of Administrative Services: Vital Statistics
901 KAR 5:050E. Fees for searches, certified copies of certificates and records.
Maternal and Child Health
902 KAR 4:085E. Newborn Hearing Screening Equipment Grant Award.
Sanitation
902 KAR 10:060E. On-site sewage disposal application fee.
902 KAR 10:121E. Inspection fees for public swimming and bathing facilities.
Health Services and Facilities
902 KAR 20:008E. License procedures and fee schedule.
902 KAR 20:066E. Operation and services; adult day health care programs.
Food and Cosmetics
902 KAR 45:006E. Kentucky bed and breakfast.
902 KAR 45:110E. Permits and fees for retail food establishments, food manufacturing plants, food storage warehouses, salvage processors and distributors, vending machine companies, and seasonal restricted food concessions.
902 KAR 45:120E. Inspection fees; permit fees; hotels, mobile home parks, recreational vehicle parks, youth camps and private water supplies.
Department for Medicaid Services: Medicaid Services
907 KAR 1:013E. Payments for hospital inpatient services.
907 KAR 1:019E. Pharmacy services.
907 KAR 1:145E. Supports for community living services for an individual with mental retardation or a developmental disability.
907 KAR 1:155E. Payments for supports for community living services for an individual with mental retardation or a developmental disability.
907 KAR 1:170E. Payment for home and community based waiver services.
907 KAR 1:320E. Kentucky patient access and care system (KenPAC).
907 KAR 1:475E. Repeal of 907 KAR 1:470, 907 KAR 1:472 and 907 KAR 1:474.
Payment and Services
907 KAR 3:030E. Coverage and payments for IMPACT Plus services.
907 KAR 3:125E. Chiropractic services and reimbursement.
OTHER BUSINESS:
Cabinet for Health Services: Department for Public Health: State Health Plan
902 KAR 17:041. State Health Plan for facilities and services.
Subcommittee staff stated that this administrative regulation was reviewed and amended at the November 14, 2000, Subcommittee meeting, and would become effective on December 21, 2000. At that meeting, Subcommittee members requested that interested parties appear at the next Subcommittee meeting to discuss the effects of the amendment made at that meeting. However, until this administrative regulation took effect, the Subcommittee would not be authorized to review the administrative regulation. Thus, the discussion regarding this administrative regulation would be deferred until the January, 2001, Subcommittee meeting.
The Subcommittee adjourned at 11:45 a.m. until January 9, 2001, at 10 a.m. in Room 149 of the Capitol Annex.