The May meeting of the Administrative Regulation Review Subcommittee was held on Tuesday, May 8, 2001, 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: David Bratcher, Gordon Duke, Jeff Mosley, Agricultural Development Board; John Steffan, Governor's Office of Agricultural Policy; Rachel Belin, Commonwealth Postsecondary Education Prepaid Tuition Trust Board; Jeff Blair, Real Estate Commission; B. R. Salyer, Aubrey D. May, David Cox, Board of Engineers and Land Surveyors; Nathan Goldman, Board of Nursing; Mark Brengelman, Mike Vance, Nancy L. Black, Board of Alcohol and Drug Counselors; Mark Mangeot, Jim Villines, Carl Campbell, Natural Resources and Environmental Protection Cabinet; Maribeth Schmitt, Brenda Priestly, Jack Damron, Department of Corrections; Keith Horn, Department of Juvenile Justice; Bonnie Brinly, Department of Education; Bill Ralston, Gordon Slone, Labor Cabinet; Treva W. Donnell, Janie Miller, Julie Mix McPeak, Department of Insurance; Danny Chapman, Judith Walden, Department of Housing, Buildings and Construction; Alex Reese, Jay Klein, Philip Kremer, Mike Littlefield, Sharon Potter West, Dr. George Graham, Cabinet for Health Services; Karen Doyle, Cabinet for Families and Children; Dandridge F. Walton, KMHI; Mike Helton, KPMA; Carl Sumner, IIAK; Jan Gould, Kentucky Retail Federation; .Kelli Rodman, Almost Family; Mike Rodman, KAHCF; Thad Vann, Kentucky Manufactured Housing Institute.
LRC Staff: Dave Nicholas, Donna Little, Edna Lowery, Ellen Benzing, Karen Smith, Susan Wunderlich, Donna Valencia, Ellen Steinberg.
The Subcommittee determined that the following administrative regulations, as amended by the promulgating agency and the Subcommittee, complied with statutory requirements:
Subcommittee staff note: Due to technical difficulties, the first 45 minutes of the meeting did not record properly. Brief summaries of the discussion have been included based on Subcommittee staff notes.
Governor's Office, Agricultural Development Board
10 KAR 2:020 & E. Disbursement of monies from the Kentucky Agricultural Development Fund. David Bratcher, Gordon Duke, and Jeff Mosley, Agricultural Development Board, and John Steffan, Governor's Office of Agricultural Policy, represented the Board.
In response to questions by Senator Roeding, Representative Bruce, Representative Allen, and Chairman Arnold, Mr. Mosley and Mr. Duke explained the Kentucky Agricultural Development Fund. The fund was created during the 2000 Regular Session of the General Assembly and is governed by KRS 248.701 to 248.727. The fund received money from the tobacco settlement to disburse to applicants from individual counties and statewide projects. The Agricultural Development Board, which consisted of fifteen members appointed by the governor with statewide representation, administered the fund and performed the duties established in KRS 248.709. The criteria for application for the state funds were established in KRS 248.711. The Board was receiving ideas from individuals and attempting to coordinate those ideas so that they would benefit a number of farmers. Additionally, county agricultural development councils had been established in each county to devise a plan for agricultural development for that county. The Tobacco Settlement Agreement Fund Oversight Committee, a permanent subcommittee of the Legislative Research Commission, was charged with the task of reviewing projects that applied for the funding.
This administrative regulation was amended as follows: (1) Sections 1 through 5 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (2) a new Section 7 was established to incorporate by reference section to incorporate the application for applying for funds from the Agricultural Development Fund, as required by KRS 13A.224.
Department Of Treasury, Commonwealth Postsecondary Education Prepaid Tuition Trust Board of Director
20 KAR 2:010. Definitions for 20 KAR Chapter 2. Rachel Belin, General Counsel, represented the Board of Directors.
In response to questions by Senator Roeding, Ms. Belin stated that the prepaid tuition program was designed based on the experiences of nineteen other states and as a user-friendly program.
In response to a question by Chairman Arnold, Ms. Belin stated that interested parties could receive information about the program by calling their toll-free telephone number, 1-888-919-KAPT (5278).
This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the TITLE, the NECESSITY, FUNCTION, AND CONFORMITY paragraph, and Section 1 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (3) Section 1 was amended to: (a) specifically establish the dates of the application periods; (b) define “KAPT”, which is the program’s marketing name pursuant to KRS 164A.704(9); and (c) delete a definition that did not comply with KRS 13A.222(4)(e).
20 KAR 2:050. Prepaid tuition contract prices, payments, and default. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; and (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph, and Sections 1 through 3 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
20 KAR 2:060. Amendment of a prepaid tuition contract. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the RELATES TO paragraph was amended to correct statutory citations; (3) the NECESSITY, FUNCTION, AND CONFORMITY paragraph, and Sections 1 through 3 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (4) Sections 2 and 3 were amended to specify that 26 USC 529 establishes requirements relating to a change of beneficiary or a change of purchaser.
20 KAR 2:070. Using prepaid tuition contract benefits. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the RELATES TO paragraph was amended to correct statutory citations; and (3) the NECESSITY, FUNCTION, AND CONFORMITY paragraph, and Sections 1 through 3 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
20 KAR 2:080. Terminating a prepaid tuition contract. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the RELATES TO paragraph was amended to correct statutory citations; (3) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (4) Section 1 was amended to clarify that documentation was required to accompany the termination application if the contract was terminated pursuant to KRS 164A.709(1)(a) or (6).
20 KAR 2:090. Refunds. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the RELATES TO paragraph was amended to correct statutory citations; (3) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (4) Section 1 was amended to specify when a refund request was required to be accompanied by a termination request.
20 KAR 2:100. Administrative fees. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 5, 6, 8, 10, 11, 12, 13, and 14 were amended to comply with the drafting and format requirements of KRS Chapter 13A; (3) Section 2 was amended to specify requirements for a waiver of the application fee; and (4) Section 11 was amended to specify the copying charges, in accordance with KRS 61.874(3) and 61.876(3) and 200 KAR 1:020.
20 KAR 2:110. Grievance procedure. This administrative regulation was amended as follows: (1) the agency name was amended to reflect the correct name of the agency; (2) the RELATES TO paragraph was amended to correct statutory citations; and (3) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 and 2 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
Real Estate Commission
201 KAR 11:440. Personal assistant duties. Jeff Blair, General Counsel, represented the Commission.
This administrative regulation was amended as follows: (1) the RELATES TO 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) Sections 1 through 3 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (4) Section 1(10), which restricted the method of compensation for nonlicensed personnel, was deleted, because it exceeded statutory authority.
Board of Licensure for Professional Engineers and Land Surveyors
201 KAR 18:141. Repeal of 201 KAR 18:140. B. R. Salyer, General Counsel, represented the Board.
This administrative regulation was amended as follows: (1) the TITLE was amended to delete the reference to 201 KAR 18:131; and (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 was amended to delete references to 201 KAR 18:131 and 133.
201 KAR 18:142. Code of professional practice and conduct. This administrative regulation was amended as follows: (1) the RELATES TO 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) Sections 1, 3, 5, 8, and 10 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
Tourism Development Cabinet, Department of Fish and Wildlife Resources, Fish
301 KAR 1:130. Live bait for personal use. Tom Bennett, Commissioner, and Scott Porter, Assistant Attorney General, represented the Department.
This administrative regulation was amended as follows: Section 2 was amended to comply with KRS 13A.222(4)(b).
Natural Resources And Environmental Protection Cabinet, Department for Surface Mining Reclamation and Enforcement, Performance Standards for Underground Mining Activities
405 KAR 18:210. Subsidence control. Carl Campbell, Commissioner, and Jim Villines, Branch Manager, represented the Department.
In response to questions by Chairman Arnold, Mr. Campbell stated that this administrative regulation was promulgated to comply with federal regulatory requirements. A lawsuit brought by the National Mining Association against the Office of Surface Mining resulted in changes to federal regulations, which Kentucky was required to implement. This administrative regulation amended the rules for items including pre-subsidence surveys, which undermined the property owners. The law allowed for planned subsidence under long wall mining and recognized that subsidence would exist when there was underground mining. Subsidence depended on the mining method, the size of the pillars left behind, and the thickness of the overburden. Most of the area around Madisonville was mined in the 1940s and 1950s. The Department was working with Geographic Information Systems to identify the areas mined in the 1940s and 1950s to identify old mine shafts to protect current landowners from future problems.
In response to a question by Senator Roeding, Mr. Campbell stated that a sinkhole was a type of subsidence occurrence caused by mining underground.
This administrative regulation was amended as follows: (1) the NECESSITY, FUNCTION, AND CONFORMITY paragraph was amended to correct a statutory citation; and (2) Section 1(2)(a) was amended to correct a minor typographical error.
Justice Cabinet, Department of Corrections, Class D and Class C Felons
501 KAR 2:020. Definitions. Jack Damron, General Counsel, and Mary Beth Smith, Assistant Branch Manager, Community Services of Adult Institutions, represented the Department.
This administrative regulation was amended as follows: (1) 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); and (2) Section 1 was amended to comply with the drafting and format requirements of KRS Chapter 13A.
501 KAR 2:040. Waivers. In response to a question by Senator Roeding, Ms. Smith stated that KRS 532.100 allowed for the housing of Class C and D felons in local jails. Class C felons were those felons in community custody, which was the lowest custody level.
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); and (3) Sections 1 and 2 were amended to clarify the waiver requirements.
501 KAR 2:050. Transfer requests. 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; and (3) Sections 1 and 2 were amended to include Class C felons.
501 KAR 2:060. Procedures for housing of Class D and Class C felons. This administrative regulation was amended as follows: (1) 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); (2) Sections 2 and 8 were amended to clarify the requirements for custody assignments and furloughs; and (3) Sections 1 and 13 were amended to require annual photographs.
Department of Juvenile Justice, Child Welfare
505 KAR 1:040. Policy and procedures manual. Keith Horn, General Counsel, represented the Department.
In response to questions by Senator Roeding, Mr. Horn stated that, because juvenile records were considered confidential under Kentucky statutes, this administrative regulation did not permit persons to simply request those records. If a juvenile stated during a law enforcement interview that he did not want to speak to a police officer or anyone, the Department would not permit the interview. If the juvenile wants to speak to the police officer, the juvenile would be permitted to have a staff person present during the interview. The interview would not be permitted if the juvenile requested an attorney. If a court ordered a juvenile to detention, the juvenile would go to detention. The General Assembly authorized the Department to conduct a review of the state-run detention facilities to determine if a less secure alternative was available. The Department had established programs in each state-run detention facility for the review program.
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 amended to (a) correct the edition date of the material incorporated by reference; and (b) incorporate CPP 705.1 and 705.2 by reference; and (3) various policies were amended to comply with the drafting and format requirements of KRS Chapter 13A.
Education, Arts, And Humanities Cabinet, Kentucky Board of Education, Department of Education, Office of Learning Programs Development, Learning Support Services
704 KAR 7:130. Minority teacher recruitment. Bonnie Brinly, Legislative Liaison, and Austin Tuning, Associate Commissioner, represented the Department.
In response to questions by Senator Roeding, Ms. Brinly stated that KRS 160.380(2)(d) required local districts to report their minority teacher recruitment efforts. Thus, the Board promulgated this administrative regulation, which established the annual reporting requirements for minority teacher recruitment. The amendment clarified that the report’s data would be based on the number of applicants that voluntarily revealed their racial background.
This administrative regulation was amended as follows: (1) the STATUTORY AUTHORITY paragraph was amended to correct statutory citations; and (2) Section 1(2) was amended to clarify the annual reporting requirements.
Labor Cabinet, Occupational Safety and Health
803 KAR 2:500 & E. Maritime employment. Bill Ralston, Federal-State Coordinator, and Gordon Slone, Deputy General Counsel, represented the Cabinet.
This administrative regulation was amended as follows: Section 2 was amended to correct statutory citations.
Department of Insurance, Agents, Consultants, Solicitors and Adjusters
806 KAR 9:265. Rental vehicle agent and managing employee. Janie Miller, Commissioner, Treva Donnell, Director of Agent Licensing, and Julie McPeak, Interim General Counsel, represented the Department.
In response to questions by Senator Roeding, Ms. Miller stated that this administrative regulation did not establish or increase fees. This administrative regulation referenced the fee administrative regulation which had previously been approved by the Subcommittee. The fee for the establishment for the rental vehicle license was $100; the fee for the managing employee was $40; and the fee for each location was $50. This administrative regulation allowed car rental businesses to use unlicensed employees at the counter to sign-up customers for insurance covering the rental vehicle. The unlicensed employee was required to be under the supervision of a managing employee. The rental vehicle agent obtained the license.
This administrative regulation was amended as follows: (1) Sections 1 and 2 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (2) Section 9 was amended to include Form 8303 in the material incorporated by reference.
Captive Insurers
806 KAR 49:020. Captive insurer application requirements. In response to questions by Senator Roeding, Ms. McPeak stated that the certificate of authority for a captive insurer was the came certificate issued to other insurers, but the certificate specified a special brand of insurers known as captive insurers. That category of insurers was created by the 2000 General Assembly. A captive insurer involved the formation of a new insurer by a corporation with a purpose of essentially self-insuring the corporation. The newly-created insurer would be authorized to underwrite risk for the parent corporation and all affiliates. A pure captive insurer did underwriting for the insurer’s parent and affiliate corporations. Other varieties of captive insurers were more complicated and included an association captive insurer that could underwrite risks for associated companies.
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, 4, 5, and 6 were amended to comply with the drafting and format requirements of KRS Chapter 13A; (4) Section 1 was amended to define “Company”; (5) Section 2 was amended to list the forms to be completed; (6) Section 3 was amended to correct a statutory reference; and (7) a new Section 7 was created to incorporate the required material by reference.
806 KAR 49:030. Captive insurer reporting requirements. 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 2 through 7 were amended to comply with the drafting and format requirements of KRS Chapter 13A; (4) Section 1 was amended to define “Company”; and (5) Section 5 was amended to correct a statutory reference.
806 KAR 49:040. Captive insurer parents and affiliates. In response to questions by Senator Roeding, Ms. McPeak stated that generally the risk management functions included loss prevention and control. The actual type of risk management depended on the parent corporation and might include materials handling, safety precautions, policies and procedures. The Department wanted to ensure the captive insurer was involved in the risk management functions but remained independent in underwriting the risks associated with that business.
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 3, 4, and 6 were amended to comply with the drafting and format requirements of KRS Chapter 13A; (4) Section 1 was amended to define “Company”; and (5) Section 5 was amended to clarify the language.
Department of Housing, Buildings and Construction, Office of State Fire Marshal, Manufactured Homes and Recreational Vehicles
815 KAR 25:050. Administration and enforcement of manufactured housing construction standards. Judith Walden, General Counsel, Dennis Langford, Commissioner, and Dan Chapman, Assistant to the Commissioner, represented the Department.
In response to questions by Chairman Arnold, Ms. Walden stated that this administrative regulation did not lower the standards for manufactured housing construction. The Department had worked over the last few years with the Board and industry to restructure these administrative regulations to enable better enforcement and increased public protection.
In response to questions by Representative Allen, Ms. Walden stated that the fees were established in 815 KAR 25:050, 25:080, and 25:090. This administrative regulation increased the fee from $35 to $75 for a Department employee to inspect a manufactured home and install a B seal, which indicated that the home met minimum manufacturer’s requirements. Generally, seals were placed on homes by licensed retailers who purchased the seals from the Department. The retailers inspected the used homes received through trade and applied the seals. In some instances, individuals who brought manufactured homes from outside Kentucky or bought a home from an individual who was not a retailer would request the Department to inspect the home. In those instances when the Department was required to inspect the home, the Department would charge a $75 fee. The previous fee of $35 was established in 1991.
This administrative regulation was amended as follows: (1) the RELATES TO and STATUTORY AUTHORITY paragraphs were amended to correct statutory citations; (2) Section 1 was amended to: (a) clarify the definition of "retailer"; and (b) comply with the drafting and format requirements of KRS Chapter 13A; (3) Sections 2 through 13 were amended to: (a) clarify language; (b) comply with the drafting and format requirements of KRS Chapter 13A; (4) Section 2 was amended to include "mobile home" where relevant; (5) Section 4 was amended to correct Form titles; and (6) Section 9 was amended to adjust travel expenses to conform to current state guidelines.
815 KAR 25:060. Licensing of manufactured home retailers. This administrative regulation was amended as follows: (1) the RELATES TO and STATUTORY AUTHORITY paragraphs were amended to correct statutory citations; and (2) the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 8 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
815 KAR 25:070. Licensing of manufacturers of manufactured homes. In response to questions by Senator Roeding, Ms. Walden stated that the amendment clarified that the $500 fee was an annual renewal fee.
This administrative regulation was amended as follows: (1) the TITLE was amended to change "licensing" to "certification"; (2) the RELATES TO, STATUTORY AUTHORITY, and NECESSITY, FUNCTION, AND CONFORMITY paragraphs were amended to correct statutory citations; (2) Section 1 was amended to delete reference to release of proprietary information; and (3) Sections 1 and 2 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
815 KAR 25:080. Requirements for certifying manufactured home installers. In response to questions by Representative Allen, Ms. Walden stated that the Department currently certified individuals who installed homes for retailers. The Department required independent contractors used by the retailers to have met training, testing, and continuing education requirements. This administrative regulation increased the initial certification fee for these individuals from $25 to $100 and increased the annual renewal fee from $25 to $50.
This administrative regulation was amended as follows: (1) the RELATES TO and NECESSITY, FUNCTION, AND CONFORMITY paragraphs were amended to correct statutory citations; (2) Sections 1(7) and 1(9) were amended to delete superfluous material; and (3) Sections 1 through 6 were amended: (a) for clarity; and (b) to comply with the drafting and format requirements of KRS Chapter 13A.
815 KAR 25:090. Site preparation and installation minimum requirements. In response to questions by Representative Allen, Ms. Walden stated that this administrative regulation restated the method by which the Department held dealers responsible for the contractual arrangements made with purchasers. This administrative regulation also defined permanent foundation and established the requirements of dealers regarding the site, foundations, and inspections. This administrative regulation applied when a consumer purchased a manufactured home from a retailer but wanted to do his own site preparation and foundation. In that situation, the Department would make an inspection before the home was delivered by the retailer and would charge $100 for the inspection.
In response to questions by Representative Lee, Ms. Walden stated that the Department’s intent was to maintain a fee structure that was sufficient to cover the programs administered by the Department. In 1999, the number of manufactured homes in Kentucky increased forty-six percent, which required the Department’s staff size to double. The current fees did not generate enough revenue to continue the program’s administration. The licensure fee was increased to the maximum allowed by statute from $200 to $250.
In response to questions by Representative Lee, Mr. Chapman stated that current certified retailers charged thirty-two cents per mile for travel expenses incurred in driving to a person’s home to inspect the home and place the appropriate seal on the home. Most retailers charged between $90 and $110. Since 1991, the Department had charged $35 for the inspection and $25 for the seal. Because of the distance the Department’s eight inspectors traveled, those fees were increased $75. The Department had worked on the fee increase proposals for approximately two years with various representatives of the manufactured housing industry, the Kentucky Manufactured Housing Institute, the Board, and other committees to ensure that the increases were fair for all involved entities.
Representative Lee stated that he did not object to fee increases that were based on valid reasons. Gasoline prices in 1991 were less than one dollar per gallon and today, gas prices averaged $1.75 to $1.85 per gallon. He believed that affected parties should be informed about fee increases prior to their effective dates, including the reasons for the increase. Additionally, it was important to note that fees should not be increased if the agency would have a surplus in excess of one million dollars at the end of the fiscal year. It was impossible to operate a vehicle today for the same amount of money it cost in 1991. He would not arbitrarily vote against all fee increases because some fee increases were well-justified and should be approved by the Subcommittee.
Mr. Chapman stated that the Department would carry-over approximately $100,000 from this fiscal year to the next fiscal year. Department staff covered the entire state of Kentucky, with some employees covering fifteen counties. The Department as a whole averaged close to four million miles a year.
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) Sections 1(6) and 1(9) were amended to delete superfluous language; (3) Section 2 was amended to insert standards for permanent foundations; and (4) Section 4 was amended to comply with the drafting and format requirements of KRS Chapter 13A.
Cabinet for Health Services, Department for Medicaid Services, Services
907 KAR 1:479 & E. Durable medical equipment covered benefits and reimbursement. Dr. George Graham, Deputy Commissioner, and Phil Kremer, Director, Physical Health Division, and Sharon Potter West represented the Department.
In response to questions by Senator Roeding, Dr. Graham stated that Section 7 of this administrative regulation listed a number of durable medical equipment items that required prior authorization. Additional items were listed in the Medicaid Fee Schedule. A supplier was required to have prior authorization for those listed items before the supplier could bill Medicaid for them. Because the prior authorization system already existed, this administrative regulation was promulgated to clarify the specific items that required prior authorization. The prior authorization was accomplished over the telephone.
In response to questions by Representative Lee, Dr. Graham stated that this administrative regulation explained what items required prior authorization and clarified that the Medicaid fee schedule included an indicator that showed a supplier in advance what equipment required a prior authorization prior to dispensing the item. The prior authorization process did not take very long as long as the necessary information was available.
This administrative regulation was amended as follows: (1) the STATUTORY AUTHORITY and NECESSITY, FUNCTION, AND CONFORMITY paragraphs were amended to correct statutory citations; (2) Sections 1, 6, 7, 8, and 11 were amended to comply with the drafting and format requirements of KRS Chapter 13A; and (3) Section 11 was amended to incorporate by reference required material.
907 KAR 1:505. Psychiatric residential treatment facility services. In response to questions by Senator Roeding, Ms. West stated that this administrative regulation established the same requirements previously established in the manual that had been incorporated by reference. The Department extracted the requirements from the manual and placed them in the body of this administrative regulation, to comply with the requirements of KRS Chapter 13A. This administrative regulation required two reviews: an internal review of what residents the facility accepted and a health care review corporation review regarding the facility’s Medicaid utilization review process. There were approximately fourteen psychiatric residential treatment facilities (PRTF) in Kentucky, with an additional PRTF waiting for its Medicaid provider number. A number of certificates of need had been approved throughout Kentucky for PRTF for those facilities had not yet been established. The PRTFs were required to operate under the inpatient guidelines, including rules that applied to psychiatric hospitals. The Department used a four-part utilization and placement review manual established with the approval of the Health Care Financing Administration (HCFA). The first part established the review procedures for the health care review corporation; the second and third parts applied specifically to hospitals; and the fourth part established placement review guidelines for PRTFs. While the requirements for PRTFs differed from the requirements for hospitals, the requirements were included in the same review manual. Kentucky law did not permit psychiatric hospitals to build PRTFs and restricted PRTFs to eight beds. Originally, the facilities were authorized to hold sixteen beds, but that requirement was reduced to eight beds during the legislative process.
Representative Lee stated that PRTFs provided highly specialized treatment services for the most emotionally-disturbed children in the state. Most facilities required at least two staff members per resident. In order to retain the home-like atmosphere of the facilities, as compared to an institutional atmosphere, the PRTFs were limited to eight beds.
This administrative regulation was amended as follows: Sections 1, 2, 5, 7, 8, and 10 were amended to comply with the drafting and format requirements of KRS Chapter 13A.
The Subcommittee determined that the following administrative regulations complied with statutory authority:
Real Estate Commission
201 KAR 11:071. Repeal of 201 KAR 11:070. Jeff Blair, General Counsel, represented the Commission.
Board of Nursing
201 KAR 20:460. Declaratory rulings. Nathan Goldman, General Counsel, represented the Board.
In response to questions by Senator Roeding, Mr. Goldman stated that this administrative regulation did not establish provisions for a request for reconsideration or appeal of a declaratory ruling, but a person was authorized to appeal those decisions to the courts. Additionally, this administrative regulation did not establish a time frame for issuance of the rulings because the Board needed to evaluate each declaratory ruling request separately and could not predict how much time would be needed.
Board of Certification for Alcohol and Drug Counselors
201 KAR 35:020. Fees. Nancy Black, Director, Division of Occupations and Professions, Mike Vance, Board Chair, and Mark Brengelman, Assistant Attorney General, represented the Board.
In response to questions by Senator Roeding, Mr. Vance stated that he had been chairperson since the Board was established in 1996. The Board operated in relationship with the International Certification Reciprocity Consortium on Alcoholism and Drug Abuse (ICRC). Kentucky law required the Board to administer the examinations in accordance with requirements established by ICRC. In 1996, the Board established a $50 oral examination fee, but did not realize the costs would exceed that amount. Three trained panelists interviewed a candidate in the exam administration for forty-five minutes. The Board was required to pay for the panelists’ training, expenses, and honorarium. The oral examination cost approximately $150 per candidate. The Board decided to increase the application fee by $25 because each person who applied would take the oral examination, and increased the examination from $50 to $125 to more accurately reflect the cost of the examination to the Board. Without the increase, the Board would not be able to cover its costs beyond 2003-2004.
In response to questions by Senator Roeding, Ms. Black stated that because licensees renewed their licenses on a three-year cycle, the Board was required to budget their income to meet the expenses of the following three years.
Mr. Vance stated that the Board struggled with the fee increase proposal because the Board did not want to raise the fees too high. However, given the Board’s financial situation, the Board decided to increase the fees as established in this administrative regulation. There were approximately fifty-nine new applicants per year. The renewal fee of $200 every three years was not increased by this administrative regulation.
This administrative regulation was approved, with Senator Roeding and Representative Allen voting not to approve this administrative regulation.
Tourism Development Cabinet, Department of Fish and Wildlife Resources, Game
301 KAR 2:111 & E. Deer and turkey hunting on federal areas. Tom Bennett, Commissioner, and Scott Porter, Assistant Attorney General, represented the Department.
In response to questions by Representative Allen, Mr. Bennett stated that the Department wanted to lower the number of deer by leaving the buck deer in the herd for a longer period of time. If a deer’s antlers extended beyond the tips of the ears, the antler spread would exceed the required fifteen inches. This requirement existed on six wildlife management areas this year and only one citation was issued for a violation of the requirement. That citation was issued for a spike buck which clearly did not have a fifteen inch antler spread. The fine for a violation was $25 on one of the six quality deer management sites, plus an inability to hunt in that area the following year.
In response to a question by Chairman Arnold, Mr. Bennett stated that he would request the Department to post notices regarding the reasons for closing areas when a certain area was roped to indicate its closure. Typically, the areas were cabled closed because of damage and erosion caused by garbage disposal or off-road vehicles.
301 KAR 2:144. Fall wild turkey hunting.
301 KAR 2:226 (& E). Youth waterfowl hunting season.
Hunting and Fishing
301 KAR 3:100 (& E). Special commission permits.
Department of Housing, Buildings and Construction, Office of State Fire Marshal, Manufactured Homes and Recreational Vehicles
815 KAR 25:011. Repeal of 815 KAR 25:010 and 815 KAR 25:030. Judith Walden, General Counsel, Dennis Langford, Commissioner, and Dan Chapman, Assistant to the Commissioner, represented the Department.
In response to a question by Representative Allen, Ms. Walden stated that previously the Department had promulgated three administrative regulations to establish all the requirements for manufacturing. The Department repealed those three administrative regulations with this administrative regulation and promulgated new administrative regulations divided into separate topics, as required by KRS Chapter 13A.
In response to a question by Senator Roeding, Subcommittee staff stated that the fees established in the repealed administrative regulations would be deleted and replaced with new fees established in the administrative regulations that replaced the repealed administrative regulations.
Cabinet For Health Services, Department for Public Health, Health Services and Facilities
902 KAR 20:066 (& E). Operation and services; adult day health care programs. Alex Reese, Office of the Inspector General, represented the Department.
In response to questions by Senator Roeding, Mr. Reese stated that he did not know the number of occupational therapists employed in the counties. This administrative regulation established a mechanism for an adult day health care center to provide occupational therapy by providing the therapy or contracting with others to provide the therapy.
In response to questions by Representative Lee, Mr. Reese stated that this administrative regulation applied only to the medical model of adult daycare. Previously, day health care programs were not allowed to provide invasive therapy, but the programs were paid by Medicaid’s home and community-based waiver program, which required provision of nursing services. This administrative regulation was amended to bring the two programs into compliance with the federal requirements.
The Subcommittee and the promulgating administrative agencies agreed to defer consideration of the following administrative regulations to the next meeting of the Subcommittee:
Governor's Office, Telehealth Board
10 KAR 3:020E. Establishing and funding telehealth network training centers.
10 KAR 3:030E. Establishing and funding telehealth network rural sites.
Department Of Treasury, Commonwealth Postsecondary Education Prepaid Tuition Trust Board of Director
20 KAR 2:040. Applying for a prepaid tuition contract.
Finance And Administration Cabinet, Statewide Accounts
200 KAR 24:020E. Allocation of driving under the influence service fees.
Board of Optometric Examiners
201 KAR 5:010. Application for licensure; endorsement.
201 KAR 5:030. Annual courses of study required.
201 KAR 5:037. Advertising.
201 KAR 5:040. Unprofessional conduct.
201 KAR 5:050. Office locations.
201 KAR 5:061. Repeal of 201 KAR 5:060.
201 KAR 5:090. Annual renewal fees.
Board of Medical Licensure
201 KAR 9:105E. Repeal of 201 KAR 9:101, 201 KAR 9:111, 201 KAR 9:121, 201 KAR 9:131, 201 KAR 9:136, 201 KAR 9:141, 201 KAR 9:151, 201 KAR 9:161, 201 KAR 9:171, 201 KAR 9:180, 201 KAR 9:330, 201 KAR 9:335, 201 KAR 9:340.
Board of Licensure for Professional Engineers and Land Surveyors
201 KAR 18:102E. Electronic stamps, seals and signatures.
Board of Emergency Medical Services
202 KAR 7:030E. Fees.
202 KAR 7:050E. Requirements for examination, certification and recertification of the emergency medical technician-basic.
202 KAR 7:060E. Emergency medical technician-basic course requirements.
202 KAR 7:070E. Emergency medical technician-basic instructors and EMT-instructor trainers.
202 KAR 7:080E. Emergency medical technician-basic authorized procedures.
202 KAR 7:090E. Disciplinary actions of emergency medical technicians.
202 KAR 7:092E. Emergency medical technician first responder training, examination, and certification.
202 KAR 7:094E. Emergency medical services educational institutions and emergency medical services testing agencies.
202 KAR 7:100E. Rules of practice and procedure for the board, committees of the board and subcommittees of the board.
202 KAR 7:102E. Committees and subcommittees of the board.
202 KAR 7:110E. Referral of matters for criminal prosecution.
202 KAR 7:120E. Mental or physical examination of licensee or applicant, suspension or denial of application until person submits to examination.
202 KAR 7:130E. Procedure for immediate temporary suspension of license or certification against which disciplinary action or investigation is pending.
202 KAR 7:140E. Investigation and disposition of complaints.
202 KAR 7:150E. Procedures for disciplinary hearings pursuant to KRS 311.652 to 311.658.
202 KAR 7:160E. Offenses.
202 KAR 7:405E. Requirements to become a paramedic student.
202 KAR 7:407E. Paramedic training requirements.
202 KAR 7:409E. Educational institution.
202 KAR 7:413E. Continuing education.
202 KAR 7:426E. The paramedic license.
202 KAR 7:433E. Out-of-state paramedic not licensed in Kentucky.
202 KAR 7:435E. Supervision of out-of-state paramedic student.
202 KAR 7:436E. Procedure for licensing paramedic who is licensed or certified in another state or territory under the jurisdiction of the United States or who is nationally registered.
202 KAR 7:461E. Scope of practice matters.
202 KAR 7:465E. Medical director for an advanced life support ambulance service or other organization providing advanced life support.
202 KAR 7:491E. Establishes a fee schedule.
202 KAR 7:493E. Discontinuance of resuscitation by a paramedic.
202 KAR 7:495E. Determination of death by a paramedic.
202 KAR 7:497E. Training of paramedics in determination of death and preservation of evidence.
202 KAR 7:520E. Allocation of funding assistance for purchase of ambulances and equipment for emergency medical services.
202 KAR 7:570E. License procedures and fee schedule for ambulance providers.
202 KAR 7:580E. Class I ground ambulance providers.
202 KAR 7:582E. Class II ground ambulance providers.
202 KAR 7:584E. Class III ground ambulance providers.
202 KAR 7:590E. Air ambulance service providers.
202 KAR 7:595E. Advanced life support (ALS) medical first response providers.
Tourism Development Cabinet, Department of Fish and Wildlife Resources, Game
301 KAR 2:050E. Land Between the Lakes hunting requirements.
301 KAR 2:132E. Elk depredation permits and quota hunts.
301 KAR 2:142E. Spring wild turkey hunting.
301 KAR 2:221E. Waterfowl seasons and limits.
301 KAR 2:222E. Waterfowl hunting requirements.
Hunting and Fishing
301 KAR 3:022E. License, tag and permit fees.
Natural Resources And Environmental Protection Cabinet, Department for Environmental Protection, Division for Air Quality, Attainment and Maintenance of the National Ambient Air Quality Standards
401 KAR 51:001. Definitions for 401 KAR Chapter 51.
401 KAR 51:160. NOx requirements for large utility and industrial boilers.
401 KAR 51:170. NOx requirements for cement kilns.
401 KAR 51:180. NOx credits for early reduction and emergency.
401 KAR 51:190. Banking and trading NOx allowances.
401 KAR 51:195. NOx opt-in provisions.
401 KAR 51:200. Regional NOx emission requirements.
Mobile Source Related Emission
401 KAR 65:001. Definitions for 401 KAR Chapter 65.
401 KAR 65:010. Vehicle emission control programs.
Justice Cabinet, Office of the Medical Examiner
500 KAR 12:010. Duplicate records request fee schedule.
Workforce Development Cabinet, Department for the Blind
782 KAR 1:060. Bioptic Driver Training Program.
Department for Employment Services, Unemployment Insurance
787 KAR 1:230E. Due dates.
Department of Alcoholic Beverage Control, Licensing
804 KAR 4:360E. Restaurant drink licenses for fifth and sixth class cities.
Department of Insurance, Health Insurance Contracts
806 KAR 17:150E. Health benefit plan rate filing requirements.
806 KAR 17:310E. Prompt payment of claims reporting requirements.
806 KAR 17:320E. Kentucky Access requirements.
806 KAR 17:330E. Kentucky Access health benefit plans.
806 KAR 17:350E. Guaranteed Acceptance Program (GAP) reporting requirements.
Cabinet For Health Services, Department for Public Health, Health Services and Facilities
902 KAR 20:008E. License procedures and fee schedule.
902 KAR 20:370E. Operations and services; private duty nursing agencies.
Department for Medicaid Services, Services
907 KAR 1:013E. Payments for hospital inpatient services.
907 KAR 1:015E. Payments for hospital outpatient services.
907 KAR 1:044E. Mental health center 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 1:160E. Home and community based waiver services.
907 KAR 1:320E. Kentucky Patient Access and Care System (KenPAC).
Payment and Services
907 KAR 3:005E. Physicians' services.
Department for Mental Health and Mental Retardation Services, Institutional Care
908 KAR 3:050E. Per diem rate pursuant to the "Patient Liability Act of 1978".
Cabinet For Families And Children, Department for Community Based Services, Family Support, K-TAP, Kentucky Works, Welfare to Work, State Supplementation
921 KAR 2:015E. Supplemental programs for persons who are aged, blind, or have a disability.
Food Stamp Program
921 KAR 3:010. Definitions.
921 KAR 3:030. Application process.
921 KAR 3:050. Claims and additional administrative provisions.
921 KAR 3:060. Administrative disqualification hearings and penalties.
OTHER BUSINESS
Representative Bruce stated that he found out this morning that the state police were preparing to establish check points for seat belts. He requested that the Subcommittee write a letter to the Kentucky State Police and inquire about the authority for this activity. The statutes did not authorize check points to check for seat belt usage.
Representative Lee stated that he did not know how a roadblock could be effective or legal when checking for secondary violations.
Representative Allen stated that a member of the press contacted him today about this plan. He believed the roadblocks would be established in late May or early June. The roadblocks represented a blatant abuse of legislative intent because the General Assembly has not enacted legislation to make seat belt usage a primary violation.
Representative Lee stated that the Subcommittee should request the Kentucky State Policy to inform the Subcommittee about the source of authority for this plan. If the roadblocks will be conducted, the police should inform the Subcommittee whether the purpose would be informational to inform the citizens about seat belt usage requirements without issuing citations, or if citations would be issued.
The Subcommittee approved a motion by Representative Lee, seconded by Representative Bruce, to send the requested letter to the Kentucky State Police.
The Subcommittee adjourned at 12:18 a.m. until June 12, 2001, at 10 a.m. in Room 149 of the Capitol Annex.