Administrative Regulation Review Subcommittee

 

Minutes of the<MeetNo1> June Meeting

 

<MeetMDY1> June 10, 2003

 

The<MeetNo2> June meeting of the Administrative Regulation Review Subcommittee was held on<Day> Tuesday,<MeetMDY2> June 10, 2003, at<MeetTime> 10:30 AM, in<Room> Room 149 of the Capitol Annex. Senator Damon Thayer, Chair, called the meeting to order, and the secretary called the roll.

 

Present were:

 

Members:<Members> Senator Damon Thayer, Co-Chair; Representative John Arnold Jr., Co-Chair; Senators Joey Pendleton, Richard Roeding, and Gary Tapp; Representatives James Bruce, Jimmie Lee, and Jon David Reinhardt.

 

Guests:  Barbara Cook, Dennis Taulbee, Council on Postsecondary Education; Johnna Ballinger and Tommy Greenwell, Secretary of State; William P. Hanes, Eric Wampler, Shawn Sparks, Department of Corrections; Dwight Price, Stephen Jones, Finance and Administration Cabinet; Jack Damron, Brenn O. Combs, Regina Crain, Lynn M. Aldridge, Department of Corrections; William Doyle, David Coyle, Department of Financial Institutions; John Gray, Ann Gordon, Sam Burnette, Jim Carreer, Duane Dringenburg, Charles Douglass, Leah Brown, Lynne Flynn, Patty Sewell, Linda Harney, Margaret Pennington, Colleen Ryall, Cabinet for Health Services; Karen Doyle, Rosanne Barkley, Barbara Wright, Patti Smith-Glover, Shirley Eldridge, Mary Sparrow, Elizabeth Caywood, Joyce Lea, Lisa Durbin, Cheryl Bentley, Cabinet for Families and Children; Thomas Black, Absolute Mortgage Solutions, Inc., Dwight G. Lewis, Conrad R. Carney, II, American Mortgage Lenders, and William G. Callahan, Consumers-Relatives Raising Chilldren.

 

LRC Staff: Dave Nicholas, Donna Little, Karen Smith, Sarah Amburgey, Emily Caudill, and Ellen Steinberg.

 

The Administrative Regulation Review Subcommittee met on Tuesday, June 10, 2003, and submits this report:

 

Council on Postsecondary Education: Public Educational Institutions

 

13 KAR 2:090. Kentucky Educational Excellence Scholarship (KEES) Program. Dennis Taulbee, General Counsel, and Barbara Cook, Associate of Academic Affairs, represented the Council.

 

In response to questions by Senator Roeding, Mr. Taulbee stated that to qualify for the KEES program, a high school student needed to maintain a grade point average (GPA) of 2.5 to 4.0. The scholarship amount ranged from $125.00 to $500.00 depending on the student's GPA. Additionally, the student received bonus points for any advanced placement courses because they were more difficult.

 

In response to a question by Senator Roeding, Mr. Taulbee stated that a home schooled student was not eligible for the basic KEES award because it was too difficult to determine the student's GPA. However, the student was eligible for a supplemental KEES award which was based on the student's ACT score. For home schoolers to qualify for the KEES award, legislative change was required.

 

In response to questions by Representative Reinhardt, Mr. Taulbee stated that the KEES award would not be impacted if an advanced placement student did not take foreign language his fourth year.

 

In response to questions by Representative Bruce, Mr. Taulbee stated that by statute, the Council was required to base the KEES award on a student's GPA rather than a standardized test score.

 

In response to questions by Senator Roeding, Mr. Taulbee stated that the GPA range for the KEES award started at 2.5 to discourage grade inflation by schools to help students qualify for the scholarship.

 

In response to a question by Co-Chair Thayer, Ms. Cook stated that the Council removed architecture from the list of approved five (5) year undergraduate programs for the KEES award because it was now only a four year program.

 

In response to a question by Senator Roeding, Ms. Cook stated that pharmacy did not qualify as a five (5) year undergraduate program because the fifth year was considered graduate level by the pharmacy schools.

 

A motion was made and seconded to approve the following amendments: to amend Section 4 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Secretary of State: Trademarks and Service Marks

 

30 KAR 3:010. Application for registration of trademarks and service marks. Application for registration of trademarks and service marks. Tommy Greenwell, Assistant Secretary of State, and Johnna Ballinger, Trademark Examiner, represented the Secretary.

 

In response to a question by Senator Roeding, Ms. Ballinger stated that the amendments to the registration application would not affect an applicant's fees. The amendments' only fiscal impact would be on the Secretary to print the new application forms.

 

In response to a question by Senator Tapp, Ms. Ballinger stated that the Secretary amended the registration application to comply with federal regulations. The amendments added an extra page requiring an applicant to provide a drawing of the mark at issue.

 

A motion was made and seconded to approve the following amendments: to amend Sections 3, 5, and 6 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

30 KAR 3:020. Application for renewal of registration. A motion was made and seconded to approve the following amendments: to amend Section 2 to correct typographical errors. Without objection, and with agreement of the agency, the amendments were approved.

 

30 KAR 3:030. Classification of goods and services for registration of trademarks and service marks.

 

Finance and Administration Cabinet: Kentucky Employees' Retirement System: General Rules

 

105 KAR 1:150 & E. Installment purchase procedures. Bill Haynes, Executive Director, and Eric Wampler, General Counsel, represented the System.

 

In response to a question by Senator Tapp, Mr. Haynes stated that this administrative regulation was amended to permit those in the retirement system to participate pretax in installment purchases. The change would not affect the actuaries on retirement.

 

A motion was made and seconded to approve the following amendments: (1) to update forms; and (2) to amend various sections to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

State Investment Commission

 

200 KAR 14:011. Qualified investments. Dwight Price, Investment Manager, and Stephen Jones, Portfolio Manager, represented the Commission.

 

In response to questions by Senator Roeding, Mr. Price stated that this administrative regulation was amended to require agencies to pay the cost of safekeeping their securities. Currently, that cost was subsidized by the general fund.

 

In response to questions by Representative Bruce, Mr. Price stated that the bank that serviced the Commission's accounts charged fees for check writing, deposits, and wire transfers.

 

In response to questions by Co-Chair Thayer, Mr. Jones stated that the Commission amended this administrative regulation to update and clarify its language and to provide consistency for each segment of the market.

 

In response to questions by Co-Chair Arnold, Mr. Price stated that the Commission only invested in fixed income and had made a profit of four (4) percent last year.

 

A motion was made and seconded to approve the following amendments: to amend Sections 1, 2, 4, 5, and 10 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Justice Cabinet: Department of Corrections: Division of Local Facilities: Jail Standards for Full-Service Facilities

 

501 KAR 3:020. Administration; management.

 

501 KAR 3:090. Medical services. Jack Damron, Counsel, and Brenn Combs, Counsel, represented the Department.

 

In response to questions by Senator Tapp, Mr. Damron stated that this administrative regulation was amended to better define the population information the Department needed from the local jails. The new population reports would not increase costs for the jails because the jails already kept those statistics on the prisoners.

 

In response to questions by Senator Roeding, Mr. Damron stated that the new report would enable the Department to keep better statistics on whether the local jails were housing federal, state, or county prisoners. The jailers had not complained about the proposed reporting requirements.

 

A motion was made and seconded to approve the following amendments: (1) to narrow its applicability to only jails electing to house state prisoners; (2) to use statutory term of "prisoner" rather than "inmate"; (3) to delete Section 5(6) as it was outdated; and (4) to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

501 KAR 3:100. Food services. In response to questions by Senator Roeding, Subcommittee staff stated that the Department had agreed to delete the provisions in this administrative regulation regarding mental health services for prisoners in local jails because KRS 441.047 required the Department of Health Services to regulate the administration of those services.

 

In response to questions by Representative Lee, Mr. Damron stated that nothing in this administrative regulation changed which governmental entity was responsible for the payment of mental health services for prisoners in local jails.

 

A motion was made and seconded to approve the following amendments: (1) to specify the scope of its applicability to jails electing to house state prisoners and to jails not electing to house state prisoners; (2) to delete mental health services provisions as they were in conflict with KRS 441.047; (3) to use statutory term of "prisoner" rather than "inmate"; and (4) to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

501 KAR 3:130. Prisoner programs; services. A motion was made and seconded to approve the following amendments: to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Office of the Secretary

 

501 KAR 6:020. Corrections policies and procedures. In response to a question by Co-Chair Thayer, Mr. Damron stated that 501 KAR 6:020, 6:050, 6:060, and 6:070 only applied to state prisons and did not address alleged mistreatment of prisoners by local jails.

 

A motion was made and seconded to approve the following amendments: to amend Section 1 and the material incorporated by reference to: (1) remove prisoners after final release from the scope of CPP 3.22; (2) clarify guidelines regarding sexual misconduct in CPP 3.22; and (3) delete outdated references in CPP 8.6 and 13.11. Without objection, and with agreement of the agency, the amendments were approved.

 

501 KAR 6:050. Luther Luckett Correctional Complex. A motion was made and seconded to approve the following amendments: to amend Section 1 and the material incorporated by reference to: (1) delete outdated references; and (2) insert page numbers in various policies. Without objection, and with agreement of the agency, the amendments were approved.

 

501 KAR 6:060. Northpoint Training Center. A motion was made and seconded to approve the following amendments: to amend Section 1 and the material incorporated by reference to: (1) delete outdated references; and (2) comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

501 KAR 6:070. Kentucky Correctional Institution for Women. In response to a question by Senator Tapp, Subcommittee staff stated that the Department had agreed to delete the provision in this administrative regulation authorizing all employee liability claims to be filed under the Small Claims Act, regardless of the amount in controversy, because it conflicted with KRS 24A.200 to 24A.360.

 

A motion was made and seconded to approve the following amendments: to amend Section 1 and the material incorporated by reference to: (1) delete or update outdated references; and (2) delete provision in KCIW 02-01-01 authorizing all employee liability claims to be filed under the Small Claims Act, regardless of the amount in controversy, because it was in conflict with KRS 24A.200 to 24A.360. Without objection, and with agreement of the agency, the amendments were approved.

 

Jail Standards for Counties Housing Class D Felons

 

501 KAR 13:010. Life safety issues. A motion was made and seconded to approve the following amendments: (1) to specify citations; (2) to narrow its applicability to only jails electing not to house state prisoners; (3) to use statutory term of "prisoner" rather than "inmate"; and (4) to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Cabinet for Health Services: Department for Public Health: Certificate of Need

 

900 KAR 6:050 & E. Certificate of need administrative regulation. John Gray, Director, represented the Department.

 

A motion was made and seconded to approve the following amendments: to amend Sections 2, 6, 7, 8, 10, 16, 18, 20, and 27 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Department for Medicaid Services: Medicaid Services

 

907 KAR 1:479 & E. Durable medical equipment covered benefits and reimbursement. Duane Dringenburg, Division Director, Charles Douglass, Branch Manager, Leah Brown, Program Coordinator, and Ann Gordon represented the Department.

 

In response to questions by Representative Reinhardt, Mr. Dringenburg and Ms. Brown stated that this administrative regulation was amended to institute better management practices for durable medical equipment benefits. Before an equipment benefit was authorized, a physician now had to specify the recipient's medical necessity for the benefit on a MAP-1000 certificate. The Department hoped that by using the MAP-1000, they could better manage the Medicaid program and avoid cutting services or instituting caps.

 

In response to questions by Representative Reinhardt, Mr. Dringenburg stated that utilizing the MAP-1000 should generate about $1,600,000.00 in savings, offset by the Department's costs to contract out the certificates for peer review by other medical specialists. The Department predicted that there would be a net savings, but they would not know for certain until after a quarter.

 

In response to a question from Co-Chair Arnold, Mr. Dringenburg stated that once a piece of durable medical equipment was no longer needed by the recipient, there was no legislative mandate for that equipment to be returned to the Department. The recipient or the recipient's family's family usually gave it to someone else to use.

 

In response to questions by Representative Reinhardt, Ms. Gordon stated that over the last three (3) years, the Department had cost avoided or saved nearly $5,000,000.00 in the Medicaid program by using other better management practices.

 

Representative Reinhardt stated that he hoped there would be a net savings from using the MAP-1000 because otherwise he would prefer that the money be spent on providing more equipment benefits rather than paying other physicians to conduct peer reviews of the certificates.

 

Representative Lee stated that using the MAP-1000 would generate a net savings because if a physician knew the medical necessity certificate would be reviewed, the physician would be less likely to fill out a form for a patient without a true medical necessity for the equipment.

 

A motion was made and seconded to approve the following amendments: to amend Sections 1, 3, 7, 8, and 11 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

907 KAR 1:680. Vaccines for Children Program. Lynne Flynn, Director, and Patty Sewell, Manager, represented the Department.

 

In response to questions by Senator Roeding, Ms. Flynn stated that to comply with federal requirements, this administrative regulation was amended so children age eighteen (18) or under were eligible for the Vaccines for Children Program. That amendment was not inconsistent with other administrative regulations specifying the age of children because those were separate regulations governing the age of children for which physicians were paid an administrative fee. Under the Vaccines for Children Program, the vaccine could be administered by physicians, nurse practitioners, physician assistants, and local health departments

 

Department for Mental Health and Mental Retardation Services: Institutional Care

 

908 KAR 3:050. Per diem rates pursuant to KRS 210.710 to 210.760. Linda Harney, Director, and Margaret Pennington, Commissioner, represented the Department.

 

In response to questions by Senator Roeding, Ms. Harney stated that the Department was statutorily required to publish by administrative regulation the per diem rates for state operated or owned psychiatric hospitals. The rates were determined separately for each facility by cost reports and needed to be at least as high as Medicaid and Medicare rates for the hospitals to receive the maximum amount of reimbursement to which they were legally entitled.

 

In response to questions by Senator Roeding, Ms. Pennington stated that residential facilities for children with mental health problems were funded through the Cabinet for Families and Children rather than the Cabinet for Health Services.

 

A motion was made and seconded to approve the following amendments: to amend Section 1 to: (1) delete outdated provisions to comply with KRS 13A.222(4)(a); and (2) increase the per diem rates for Oak Knoll, Rolling Hills, and Willow Run from $315.00 to $335.00, as requested by the agency. Without objection, and with agreement of the agency, the amendments were approved.

 

Kentucky Traumatic Brain Injury Trust Fund Board

 

908 KAR 4:030. Traumatic Brain Injury Trust Fund operations. Colleen Ryall, Director, represented the Board.

 

A motion was made and seconded to approve the following amendments: to amend various sections to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Cabinet for Families and Children: Department for Community Based Services: Family Support: Child Support

 

921 KAR 1:400. Establishment, review, and modification of child support and medical support orders. Karen Doyle, Assistant Director, Roseanne Barkley, and Barbara Wright represented the Department.

 

In response to a question by Senator Roeding, Ms. Wright stated that child support obligors submitted their support payments to the state centralized collection unit which disbursed the payments to the obligees. Ms. Doyle added that obligors in private cases also could utilize that service to avoid direct contact with the obligees.

 

K-TAP, Kentucky Works, Welfare to Work, State Supplementation

 

921 KAR 2:015 & E. Supplemental programs for persons who are aged, blind, or have a disability. Karen Doyle, Assistant Director, and Roseanne Barkley represented the Department.

 

In response to a question by Senator Roeding, Ms. Doyle stated that the supplemental programs paid the differential for persons with disabilities that were receiving SSI who needed additional financial assistance for residential or personal care. The supplemental programs were not funded through Medicaid.

 

Protection and Permanency: Child Welfare

 

922 KAR 1:130. Kinship Care Program. Elizabeth Caywood, Roseanne Barkely, and Karen Doyle, Assistant Director, represented the Department. William Callahan appeared in response to this administrative regulation.

 

In response to a question by Co-Chair Thayer, Ms. Doyle stated that this administrative regulation was amended to tighten up the eligibility requirements for the Kinship Care Program due to the increasing number of program participants. Now, the kinship caregiver was required to pursue permanent custody within a specified timeframe so the child could be in a permanent protected environment.

 

Representative Lee stated that he commended the Department's efforts to resolve many concerns of kinship caregivers with the amendments to this administrative regulation.

 

Mr. Callahan stated that he was speaking as a kinship caregiver for his grandchild and on behalf of several grandparent support groups. He was concerned that the amendments to this administrative regulation removed its childcare provision. Currently, there were 80,000 children being raised by someone other than a parent. With childcare costing an average of $75.00 per week, that cost alone would nullify the benefit of the $300.00 kinship care supplement. He requested that the childcare provision be reinstated.

 

Representative Lee stated that the amendments to this administrative regulation did not eliminate any existing childcare benefits to which a caregiver was entitled. They only deleted a reference to another administrative regulation that governed those benefits.

 

A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct statutory citations; (2) to amend Sections 1 to 10, 12 to 15, and 20 to comply with the drafting and format requirements of KRS Chapter 13A; (3) to amend Section 2 to extend Kinship Care Program benefits to a nonparental relative who had received a child from the Cabinet for placement; (4) to amend Section 14 to: (a) revise the provisions relating to start-up costs, including deletion of the allotment for attorney fees and the ninety day limitation; and (b) increase the maximum payment amounts for start-up costs; (5) to amend Section 15 to specify that the Cabinet shall facilitate access to services that included case management; and (6) to amend Section 20 to update the material incorporated by reference and to incorporate a new form required by the administrative regulation. Without objection, and with agreement of the agency, the amendments were approved.

 

Block Grants

 

922 KAR 3:031. Repeal of 922 KAR 3:030, Matching requirements for CSBG.

 

Community Action Agencies

 

922 KAR 6:010. Standards. In response to questions by Senator Roeding, Ms. Caywood stated that at the request of Community Action Agencies, this administrative regulation was amended to increase the eligibility level of recipients of Community Service Block Grants from 100 to 125 percent of the federal poverty guideline.

 

In response to a question by Senator Tapp, Ms. Caywood stated that the amendments increased the number of community members that were eligible for Community Action services.

 

In response to questions by Representative Reinhardt, Ms. Caywood stated that that the amendments did not increase the amount of the block grant. They only increased the number of eligible beneficiaries of the grant, such as welfare recipients needing additional support as they transitioned from welfare to work.

 

922 KAR 6:061. Repeal of 922 KAR 6:060, CSBG audit specifications, and 922 KAR 6:070, Program state plan for CSBG.

 

The Subcommittee and the promulgating administrative agencies agreed to defer consideration of the following administrative regulations to the next meeting of the Subcommittee:

 

Education Professional Standards Board: General Administration

 

16 KAR 1:040E. Teachers' National Certification Incentive Trust Fund.

 

Department of State: Registry of Election Finance: Practice and Procedure

 

32 KAR 2:220E. Electronic reporting file format and test file compliance procedure.

 

Boards and Commissions: State Board for Proprietary Education

 

201 KAR 40:040E. Commercial driver license training school curriculum.

 

201 KAR 40:050E. Application for license for commercial driver license training school.

 

201 KAR 40:060E. Application for renewal of license for commercial driver license training school.

 

201 KAR 40:070E. Commercial driver license training school instructor and agent application and renewal procedures.

 

201 KAR 40:080E. Maintenance of student records, schedule of fees charged to students, contracts and agreements involving licensed commercial driver training schools, advertising and solicitation of students by commercial driver license training schools.

 

201 KAR 40:090E. Complaint procedure against agents, commercial driver license training schools, uncredentialed agents, and uncredentialed commercial driver license training schools.

 

Tourism and Development Cabinet: Department of Fish and Wildlife Resources: Game

 

301 KAR 2:095E. Importation of cervid carcasses and parts.

 

Department of Agriculture: Marketing and Product Promotion

 

302 KAR 39:010E. Agritourism.

 

Economic Development Cabinet: Kentucky Economic Development Finance Authority: Venture Capital

 

307 KAR 6:010. Kentucky Investment Fund Act.

 

Natural Resources and Environmental Protection Cabinet: Department for Environmental Protection: Division for Air Quality: General Standards of Performance

 

401 KAR 63:105. Requirements for control technology determinations for major sources in accordance with Clean Air Act section 112(g) and (j).

 

Department for Surface Mining Reclamation and Enforcement: Surface Effects of Noncoal Mining

 

405 KAR 5:001 & E. Definitions for 405 KAR Chapter 5.

 

405 KAR 5:030 & E. Permit requirements.

 

405 KAR 5:035 & E. Sings, markers, and safety barriers.

 

405 KAR 5:038 & E. Blasting.

 

405 KAR 5:045 & E. Protection of environmental resources.

 

405 KAR 5:053 & E. Replacement of water supply.

 

405 KAR 5:060 & E. Handling of materials.

 

405 KAR 5:075 & E. Contemporaneous reclamation.

 

405 KAR 5:080 & E. Reclamation bond.

 

Justice Cabinet: Department of Corrections: Division of Local Facilities: Jail Standards for Full-service Facilities

 

501 KAR 3:140. Prisoner rights. Jack Damron, Counsel, and Brenn Combs, Counsel, represented the Department.

 

In response to questions by Representative Reinhardt, Mr. Damron stated that this administrative regulation was amended to provide clear written guidelines for the local jails regarding when prisoner visitation could be restricted for safety reasons. Additionally, this administrative regulation was amended to provide mental health training for local jail staff to assist them in identifying and responding to depressed or suicidal prisoners. He did not know the fiscal impact of the new staff training on the local jails.

 

Mr. Damron stated that the Department wanted to defer the Subcommittee's review of this administrative regulation until the Department could provide the Subcommittee the fiscal impact of the new staff training. Without objection, this administrative regulation was deferred.

 

Co-Chair Thayer stated that in addition to the Department providing the Subcommittee their fiscal impact information for the new staff training, the Subcommittee also requested testimony on that issue from a representative of the local jailers association.

 

Labor Cabinet: Department of Workers Claims

 

803 KAR 25:010E. Procedure for adjustments of claims.

 

Public Protection and Regulation Cabinet: Department of Financial Institutions: Mortgage Loan Companies and Mortgage Loan Brokers

 

808 KAR 12:050. Regulation of charges for services rendered in processing and closing real estate loans to consumers. William Doyle, Staff Attorney, and David Coyle, Director, represented the Department. Thomas Black, Owner, Absolute Mortgage Solutions, Corbin, Kentucky, Dwight Lewis, Employee, American Mortgage Lenders, and Conrad Carney, President, American Mortgage Lenders, appeared in opposition to this administrative regulation.

 

In response to questions by Representative Bruce, Mr. Doyle stated that this administrative regulation codified the Department's policy against markups for procedures used in loan closings. Mr. Coyle added that it was related to the predatory lending bill from the 2003 Regular Session of the General Assembly.

 

In response to a question by Co-Chair Thayer, Mr. Doyle stated that this administrative regulation was classified as a consumer protection measure.

 

Mr. Carney stated that Kentucky Mortgage Brokers Association was opposed to Section 2 of this administrative regulation because it established a $100.00 cap on the markup fee for biweekly payment programs. The cap was discriminatory because it only applied to loan originators under KRS Chapter 294 and not other lenders. Additionally, because the cap was so low, it would discourage brokers from offering a product which consumers benefited from and wanted. Lastly, because biweekly payment programs were not settlement services but were merely ancillary to them, they should not have been included in this administrative regulation.

 

In response to questions from Representative Reinhardt, Mr. Carney stated that the average fee charged for biweekly payment programs was $995.00. When determining the $100.00 fee cap, the Department had included only the cost of what the service provider charged the brokers and had not included the brokers' overhead costs.

 

In response to questions from Representative Bruce, Mr. Carney stated that the Association was not opposed to a cap on the markup fee, but the $100.00 cap was arbitrary and unfair. Currently, the amount of the markup fee charged by the industry varied depending on whether the payment program was transferable or not. The fees started at $295.00 to $395.00 for non-transferable programs. The biweekly payment program provided a structure for a participant to prepay a mortgage to reduce the number of years of mortgage payments. Brokers made money on the program from the one-time markup fee.

 

In response to a question by Co-Chair Thayer, Mr. Carney stated that the Association recommended a cap of $995.00.

 

In response to questions by Co-Chair Thayer, Mr. Doyle stated that the Department established the $100.00 cap because it did not feel that the service was worth a $995.00 fee. The Department was willing to agree to amend the fee to any fee proposed by the Subcommittee.

 

In response to a question by Representative Lee, Mr. Coyle stated that the Department rationalized the $100.00 fee as sufficient to cover the broker's administrative costs in providing the program such as the costs of paperwork and meeting a few extra minutes with the consumer.

 

In response to a question by Co-Chair Thayer, Mr. Coyle stated that if he were a mortgage broker, he would not be satisfied with a $100.00 fee cap.

 

In response to a question by Representative Bruce, Mr. Carney stated that none of the surrounding states regulated biweekly payment program fees.

 

To provide an opportunity for the Department and the industry to agree on the amount of the fee cap, Representative Bruce made a motion, seconded by Representative Lee, to defer review of this administrative regulation. Without objection, and with agreement of the agency, this administrative regulation was deferred.

 

Kentucky Racing Commission: Thoroughbred Racing

 

810 KAR 1:027E. Entries, subscriptions, and declarations.

 

Cabinet for Health Services: Department for Public Health: Sanitation

 

902 KAR 10:060. On-site sewage disposal application fee.

Health Services and Facilities

 

902 KAR 20:014E. Effect of previous denial or revocation on applications for a license to operate a health facility or service.

 

Food and Cosmetics

 

902 KAR 45:065E. Tattooing.

 

Milk and Milk Products

 

902 KAR 50:050. Manufacturing plant requirements.

 

902 KAR 50:110. Grade A milk and milk products standards.

 

Department for Medicaid Services: Medicaid Services

 

907 KAR 1:006E. Coverage of and payment for services for persons eligible for benefits under both Tittle XIX and Title XVIII.

 

907 KAR 1:011E. Technical eligibility requirements.

 

907 KAR 1:013E. Payments for hospital inpatient services.

 

907 KAR 1:015 & E. Payments for hospital outpatient services.

 

907 KAR 1:018E. Reimbursement for drugs.

 

907 KAR 1:022E. Nursing facility and intermediate care facility for the mentally retarded and developmentally disabled level of care criteria.

 

907 KAR 1:145 & E. 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 1:520E. Payments for targeted case management services for adults with chronic mental illness.

 

907 KAR 1:530E. Payments for targeted case management services for severely emotionally disturbed children.

 

907 KAR 1:650E. Trust and transferred resource requirements for Medicaid.

 

907 KAR 1:805E. Breast and cervical cancer eligibility for Medicaid.

 

Payment and Services

 

907 KAR 3:030E. Coverage and payments for IMPACT Plus services.

 

907 KAR 3:090E. Acquired brain injury services.

 

907 KAR 3:110E. Community mental health center substance abuse services.

 

Commission for Children with Special Health Care Needs

 

Kentucky Early Intervention System

 

911 KAR 2:120 & E. Kentucky Early Intervention Program evaluation and eligibility.

 

911 KAR 2:130 & E. Kentucky Early Intervention Program assessment and service planning.

 

911 KAR 2:200 & E. Coverage and payment for Kentucky Early Intervention Program services.

 

Cabinet For Families and Children: Protection and Permanency: Day Care

 

922 KAR 2:160. Child Care Assistance Program.

 

The Subcommittee adjourned at 1:00 p.m. until July 8, 2003, at 10:30 a.m., in Room 149 of the Capitol Annex.