Administrative Regulation Review Subcommittee

 

Minutes of the<MeetNo1> November Meeting

of the 2003 Interim

 

<MeetMDY1> November 14, 2003

 

The<MeetNo2> November meeting of the Administrative Regulation Review Subcommittee was held on<Day> Friday,<MeetMDY2> November 14, 2003, at<MeetTime> 10:00 AM, in<Room> Room 149 of the Capitol Annex. Senator Damon Thayer, Co-Chair, called the meeting to order, and the secretary called the roll.

 

Present were:

 

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

 

Guests: Richard Casey, Kentucky Higher Education Assistance Authority; Jennifer Hays, Bonnie Lee, Eddie Mattingly, Charlotte Quarles, Revenue Cabinet; Jennifer A. Jones, Don Mullins, Shawn Sparks, Eric Wampler, Retirement Systems; Jim Abbott, Mike Burnside, Fran Pinkston, Angela Robinson, Ed Ross, Stuart Weatherford, Finance and Administration Cabinet; Thomas Fugate, Peggy Guier, Heritage Council; Tom Bennett, Ellen Benzing, Scott Porter, Department of Fish and Wildlife Resources; Mark Farrow, Chris Kring, Maria Rudder, Department of Agriculture; Frederick G. Huggins, Chuck Stribling, David Stumbo, Labor Cabinet; Gary Davis, Carla Montgomery; Department of Workers' Claims; Steve Horner, Alcoholic Beverage Control; Glenn Jennings, Elizabeth Johnson, Melea Kelch; Julie Mix McPeak, Rob Doctrow, Department of Insurance; Duane Drigenbury, Zach Ramsey, Alex Reese, Mike Robinson, Ben Sweger, Jessie WIlliams, Cabinet for Health Services; Rosanne Barkely, Virginia Carrington, Elizabeth Caywood, Fawn Conley, Karen Doyle, Shirley Eldridge, Rob Herrington, Patti Smith-Glover, Mary W. Sparrow, Mike Weinrauch, Cabinet for Families and Children; Julian M. Carroll, KALA; Jakie D. Holt; Lou Ortega; Ronny Pryor, Marriage and Family Therapists.

 

LRC Staff: Dave Nicholas, Donna Little, Donna Kemper, Sarah Amburgey, Laura Milam, Ellen Steinberg and Emily Caudill.

 

Administrative regulations reviewed by the Subcommittee:

 

Kentucky Higher Education Assistance Authority: Authority

 

11 KAR 4:040. Educational institution participation requirements. Rick Casey, General Counsel, represented the Authority.

 

In response to questions by Senator Roeding, Mr. Casey stated that this administrative regulation was amended to comply with KRS 164.785, which deleted the word “nonprofit” from the participation requirements for the Kentucky tuition grant program. Thus, Kentucky’s one for-profit, degree-granting institution, Sullivan University, could participate in the program. Private institutions accredited by a regional accrediting association were generally eligible for participation in the Kentucky tuition grant program. Both public and private institutions were eligible for the College Access Program (CAP) grants.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to correct statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 5, 6, 8, and 9 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Revenue Cabinet: Department of Law: Division of Tax Policy: Income Tax; Withholding

 

103 KAR 18:050. Withholding statements. Jennifer Hays, Director, and Bonnie Lee, Tax Consultant, represented the Cabinet.

 

In response to a question by Senator Roeding, Ms. Hays stated that the costs to businesses for implementing this administrative regulation would be minimal because of the implementation of a web-based secure environment for submitting employer reports. Most employers with more than 100 employees use electronic documentation currently and the Cabinet will work with those employers who do not have electronic documents.

 

A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert authorizing language; (2) to amend Sections 1 and 3 to delete language that is ambiguous or indefinite; and (3) 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.

 

103 KAR 18:070. Supplemental wages and other payments subject to withholding. In response to questions by Senator Roeding, Ms. Lee stated that this administrative regulation established a withholding requirement at the maximum rate for individual income tax on nonresident individual owners of limited liability corporations and partnerships. Kentucky has had difficulty in past years collecting income tax from these individuals if the individuals chose not to file Kentucky income tax forms. Fifteen states have imposed similar requirements already and the Multistate Tax Commission (MTC) has drafted model legislation for this withholding. The Cabinet has had statutory authority for this withholding since 1988. The withholding was not a tax increase, but rather it was collecting money up front from the partnership instead of going after the out-of-state individual when the tax was not paid. The withholding was similar to the income tax withholdings for regular employees, with the business withholding the proper amount for income taxes and the employee filing a return at the end of the tax year. During fiscal year 2003, the compliance department mailed out 521 initial contacts, billing almost $600,000 and collected $1,500,000 last year from out-of-state individuals who had not previously filed this required tax. With the partnership prepaying the tax, there should not be a compliance problem in future years. However, if a partnership did not collect the tax, the Cabinet would pursue noncompliance penalties against the partnership. The Cabinet did not receive comments during the comment period.

 

Representative Lee stated that a limited liability corporation or partnership operating in Kentucky with shareholders who live outside of Kentucky would now be required to withhold the taxes for the shareholders, similar to the withholdings made for employees. This would prevent the tax money from passing through to an out-of-state individual who may not file the required tax return or pay the required tax amount.

 

A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to add a citation; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert additional authorizing language; (3) to amend Section 3 to add an exception to the withholding requirements if the entity is a publicly traded partnership as defined by the Internal Revenue Code that is treated as a partnership for purposes of the Internal Revenue Code; and (4) 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.

 

Kentucky Retirement Systems: General Rules

 

105 KAR 1:380 & E. Minimum distribution. Eric Wampler, General Counsel, and Don Mullis, Chief Operating Officer, represented the Cabinet.

 

In response to a question by Senator Roeding, Mr. Wampler stated that this administrative regulation was based on federal rules regarding minimum distributions from retirement accounts. While retirement system members, beneficiaries and other individuals receiving retirement benefits were already subject to the federal rules, this amendment clarified that the federal rules applied in Kentucky.

 

A motion was made and seconded to approve the following amendments: (1) to amend Section 1 to create a definitions section in accordance with KRS 13A.222; 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.

 

Finance and Administration Cabinet: Office of the Secretary: Purchasing

 

200 KAR 5:021. Manual of policies and procedures. Angela Robinson, Attorney, Fran Pinkston, Assistant Director, Division of Contracting and Administration, and Mike Burnside, Director, Division of Material and Procurement Services, represented the Cabinet.

 

A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to delete superfluous language; (2) to amend Section 1 to correct an address; and (3) to amend the Manual of Policies & Procedures to delete the requirement that agencies maintain Personal Service Contracts permanently. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:051. Repeal of 200 KAR 5:025, 200 KAR 5:050 and 200 KAR 5:304. In response to questions by Senator Roeding, Mr. Burnside stated that information on memorandums of agreement or understandings were available electronically at any time, which was quicker than the requirement in 200 KAR 5:025 that agencies file a specific report with the information. Ms. Robinson stated that the statutes still required that the memorandums of agreement or understanding be reported to the Government Contract Review Committee.

 

A motion was made and seconded to approve the following amendments: to amend the Title and Section 1 to add 200 KAR 5:015, concerning legal documents, to the list of administrative regulations being repealed. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:076. Small and small minority business set asides. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to specify citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert additional authorizing language, to clearly state the function of the administrative regulation, and to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:302. Delegation of authority. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to specify citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert additional authorizing language and to delete superfluous language; and (3) to amend Sections 1 and 3 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:305. Performance bonds; forms; payments. In response to a question by Senator Roeding, Ms. Robinson stated that this administrative regulation did not affect the current requirement that all construction projects in excess of $25,000 have performance payment bonds equal to one hundred percent of the contract amount.

 

A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert additional authorizing language and to delete superfluous language; (2) to amend Sections 1 and 2 to delete language which repeats the statutes, pursuant to KRS 13A.120(2)(e); and (3) 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.

 

200 KAR 5:306. Competitive sealed bidding. A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to delete superfluous language; 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.

 

200 KAR 5:307. Competitively negotiated contracts. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs and Sections 2 and 5 to correct statutory citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert additional authorizing language and to delete superfluous language; and (3) 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.

 

200 KAR 5:309. Noncompetitive negotiations. In response to a question by Senator Roeding, Mr. Burnside stated that a noncompetitive negotiation was a contract allowed under KRS 45A.095 in which the agency could enter directly into negotiations with the vendor because it was not practical to collect bids on the item or there was no competition. An example of a noncompetitive negotiation would be negotiations regarding public utilities.

 

A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert additional authorizing language and to delete superfluous language; 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.

 

200 KAR 5:310. Multiple contracts. In response to questions by Senator Roeding, Mr. Burnside stated that multiple contracts were sometimes awarded through a single solicitation to meet specific requirements established in the solicitation. For instance, it would not be practical to contract solely with one computer company for all of the state’s 25,000 computers or one health insurance company for all state employees. The solicitation for multiple contracts took into consideration the variety of brands and geographic service areas covered by those companies. The Cabinet has researched the practice of reverse bidding but has not conducted a reverse auction yet.

 

A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to correct a citation and to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:311. Contract modifications. A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the function of the administrative regulation and to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:312. Termination of contracts. A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the function of the administrative regulation and to delete superfluous language; (2) to amend Section 3 to provide a general requirement of 30 days notice to a contractor if a contract is terminated for the convenience of the Commonwealth; (3) to amend Section 3 to state that a contractor shall take all steps necessary to minimize waste; and (4) 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.

 

200 KAR 5:313. General and special conditions for bidding. In response to a question by Senator Roeding, Mr. Burnside stated that the general and special conditions for bidding constituted boilerplate language used for bidding contracts. Rather than repeat provisions, such as those governing termination of contracts, in each bid, the Cabinet told vendors they needed to comply with the provisions of this administrative regulation. The state retained a right on its contracts, especially for large purchases, to rebid an item if it believed a better price could be obtained. State agencies were generally required to use state contracts for purchases over $1,000. While individual items might be available for purchase at a cheaper price locally, the state contracts were based on the overall level of business given to the vendor in exchange for the discounts.

 

In response to a question by Representative Bruce, Mr. Burnside stated that the general terms were the same provisions used for all bidders.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to specify citations;  and (2) to amend the STATUTORY AUTHORITY and the NECESSITY, FUNCTION, AND CONFORMITY paragraphs to correct a citation and to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:314. Disclosure of contractor's financial records and information to certain governmental entities. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a citation; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert language from the authorizing statute and to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:315. Disciplinary action for failure to perform. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a citation; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert language from the authorizing statute and to delete superfluous language.

 

200 KAR 5:317. Cost principles. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to specify citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to delete superfluous language; (3) to add a new Section 4 to incorporate by reference Office of Management and Budget Circulars concerning Contract Cost Principles and Procedures; and (5) 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.

 

200 KAR 5:325. Consideration to be given to use of Kentucky-made wood products. In response to a question by Representative Bruce, Mr. Burnside stated that a link for Kentucky-made wood products was included on the Department’s website. He did not think the Cabinet oversaw the money from that program.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to add a citation;  and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.

 

200 KAR 5:330. Purchase of goods, supplies, equipment, materials and printing with minimum recycled content. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to specify citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to insert language from the authorizing statute, to clearly state the function of the administrative regulation, and to delete superfluous language; and (3) 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.

 

Kentucky Heritage Council: Kentucky Military Heritage Commission

 

202 KAR 8:030. Nomination process for Kentucky military heritage designation. Tom Fugate, Administrator, Site Identification Program, and Peggy Guier, Staff Attorney, represented the Council.

 

In response to a question by Senator Roeding, Mr. Fugate stated that a local government fiscal note was not required for this administrative regulation. Local governments could voluntarily submit military heritage objects or sites to the Commission for identification and protection.

 

A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to: (a) correct statutory citations; and (b)clearly state the necessity for and function served by this administrative regulation; (2) to amend the STATUTORY AUTHORITY paragraph to correct statutory citations; (3) to amend the TITLE to clarify the subject matter of this administrative regulation; (4) to amend Section 2 to: (a) establish characteristics for determining qualification of an object or site for nomination as required by KRS 171.784(4); and (b) clarify distinctions between private and public property nominations in accordance with KRS 171.784(3); (5) to amend Section 4 to make notice requirements consistent with other provisions of this administrative regulation; and (6) to amend Sections 1 to 5 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

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

 

301 KAR 2:081 & E. Transportation and holding of native wildlife. Tom Bennett, Commissioner, Scott Porter, Assistant Attorney General, and Dr. Jon Gassett, Director, represented the Department.

 

In response to a question by Senator Pendleton, Commissioner Bennett stated that buffalo were classified in Kentucky as livestock because they were not free-ranging, native wildlife in Kentucky.

 

301 KAR 2:083 & E. Transportation and holding of captive cervids. Jake Holt, Elk Farmer, Marshall County, Lou Ortega, Deer Farmer, Cumberland County, and former Governor Julian Carroll, Attorney, Kentucky Alternative Livestock Association, appeared in opposition to this administrative regulation.

 

In response to a question by Co-Chair Thayer, Commissioner Bennett stated that the Department of Fish and Wildlife Resources and the Department of Agriculture had worked together for years to assist deer and elk farmers become eligible for certain USDA programs. The two agencies shared joint regulation responsibilities for livestock, including cattle, sheep, swine, elk, and deer. The two departments issued a joint press release on April 30 to announce the removal of the six (6) month ban on the intrastate movement of deer and elk. The ban had been issued to stop the spread of chronic wasting disease, which was found in Wisconsin and Illinois. The process required the deer and elk farmer to make two phone calls before moving the animals: one call to each department. The amendment proposed for this administrative regulation changed the process to require one phone call to the Department of Agriculture. That agency would then call the Department of Fish and Wildlife Resources for a number and then transmit the number to the individual farmer. The state had issued forty-one (41) permits for intrastate movement. The state veterinarian, Dr. Don Notter, and Dr. Jon Gassett, Director, Division of Wildlife, issued a letter on May 6 to all permittees who had captive cervids in Kentucky informing them of the process for obtaining a permit. The department was confident that chronic wasting disease was not in Kentucky, even though it was in Illinois, Wisconsin and Minnesota.

 

In response to questions by Representative Bruce, Commissioner Bennett stated that chronic wasting disease (CWD) was a Transmissible Spongiform Encephalopathy, somewhat related to mad cow disease. The disease posed difficulty for detection since the only tests were performed after the animal died. A suspicion that an animal had CWD could be made if the animal was wasting away but the tests could not be conclusive until conducted on a dead animal. An animal could carry the disease for five (5) years before showing any symptoms.

 

In response to questions by Representative Reinhardt, Commissioner Bennett stated that the closest case of CWD was located about 300 miles away in North Central Illinois. Even though CWD has spread rapidly in the last two years, it was originally isolated in a small area around Ft. Collins, Colorado for thirty years. Now, CWD had been identified in twelve states, 2 Canadian provinces, and in South Korea. The Department believed the disease spread through nose-to-nose contact among deer. The presence of CWD greatly affected the economy of the states in which the disease has been found. For instance, Wisconsin will be spending $12 to 15 million to eradicate CWD. The disease could only be detected through tests conducted on deceased animals.

 

In response to questions by Senator Thayer, Commissioner Bennett stated that there were ninety (90) permitted deer and elk farmers in Kentucky. The farmers raised the deer and elk for a variety of reasons: including the velvet antlers, the meat, and to sell to hunting preserves.

 

In response to questions  by Representative Reinhardt, Mr. Porter stated that the license sales in Wisconsin had dropped twelve (12) percent since the eradication program.

 

Commissioner Bennett stated that federal statistics indicated that deer hunting in Kentucky generated about $400 million annually, with much of that occurring in rural Kentucky.

 

In response to questions by Co-Chair Arnold, Commissioner Bennett stated that CWD was not transmissible to livestock. The research mostly came from Fort Collins, Colorado, since the disease was discovered there around 1967.

 

Dr. Gassett stated that CWD could remain undetected in sheep for up to fifteen (15) years. The current research on CWD in deer and elk indicated that it could remain undetected for five (5) years. The disease was not considered a problem until about four years ago when animals were moved more frequently around the country and Canada.

 

In response to questions by Co-Chair Thayer, Commissioner Bennett stated that the Department tested 2500 hunter-harvested deer and elk last year for CWD. All of the tests showed negative results. The Department was careful to balance the legitimate business needs of the deer and elk farmers with the public protection needs of the state. The Department was concerned about the problems that would be encountered if CWD came into Kentucky. When CWD began spreading rapidly, the two departments stopped importation into Kentucky to reduce the likelihood of bringing an infected animal into Kentucky. There were approximately 800,000 wild deer and 3400 elk in Kentucky. Because the Department was funded entirely by its licensure fees, the state would suffer economic loss if CWD came into Kentucky due to a reduced number of licenses and the costs of eradication efforts.

 

Dr. Gassett stated that 1200 samples have been tested this year and are on the way to the laboratory currently. An animal might look perfectly healthy while alive yet it could still have the disease.

 

Mr. Porter stated that each animal that died on a permitted captive cervid farm was submitted for testing. The dual regulation of deer and elk was not much different than regulatory requirements for other farming facilities regulated dually by the Department of Agriculture and the Natural Resources and Environmental Protection Cabinet.

 

In response to a question by Co-Chair Thayer, Mark Farrow, General Counsel, Department of Agriculture, stated that his department supported this administrative regulation.

 

In response to questions by Representative Bruce and Representative Reinhardt, Commissioner Bennett stated that elk came to Kentucky between 1997 and 2002 from western states that at the time did not have chronic wasting disease. Approximately 800 elk came from Utah and 350 came from New Mexico. The two departments were testing statistically valid samples to ensure Kentucky remained CWD-free. They also tested animals that were killed by vehicles to see if those animals had the disease.

 

Mr. Holt stated that a separate administrative regulation promulgated by the Department of Agriculture covered this subject already. House Bill 470 authorized the Department of Agriculture to regulate the health issues and the Department of Fish and Wildlife Resources to regulate the holding and permitting of facilities. At a March 2002 meeting, it was agreed that Kentucky would adopt the USDA recommended CWD program to eradicate and keep CWD out of Kentucky. A July 2002 letter signed by Commissioner Bennett stated that the Department would not require intrastate permits if the CWD program was adopted. The Department of Agriculture required the deer and elk farmers to obtain health certificates from a veterinarian and a permit from the Department before an animal could be moved inside Kentucky. The CWD program restricted the importation of animals into Kentucky, unless the animals came from a state that has never had CWD or has had a three year monitor herd. Most states have adopted a five year monitor herd requirement. He did not think CWD was actually spreading, but rather, because more states were testing for the disease, more states were discovering its presence.

 

Mr. Ortega stated that he owned a 1,000 acre farm in Cumberland County and was in the process of developing a white-tail deer farm in Cumberland County. The administrative regulations promulgated by the Department of Fish and Wildlife prevented him from developing his farm’s livestock. The regulatory requirements were driving deer farms out of business.

 

Governor Carroll stated that there was a difference of opinion between the two departments regarding whether the deer and elk were farm animals or wildlife. He believed the departments were engaged in a turf fight over the regulation of farm raised cervids. 302 KAR 20:066, promulgated by the Department of Agriculture, regulated the intrastate movement of farm raised cervids in Kentucky. The requirement for a separate permit issued by the Department of Fish and Wildlife was burdensome to the farming community and amounted to over-regulation based on the fear of CWD. A conflict also existed between the two departments involving the interstate importation of these animals with the Department of Agriculture requiring that a herd be disease-free for three years and the Department of Fish and Wildlife Resources requiring a five year period. However, the Department of Fish and Wildlife Resources had a moratorium on animal importation.

 

Senator Thayer stated that he did not think it was over-burdensome for the ninety deer and elk farmers in Kentucky to make one phone call to receive two permits for the intrastate transport of animals.

 

Governor Carroll stated that while the two departments had agreed on the procedure established in this administrative regulation, he believed there were other areas of disagreement that remained. Additionally, the requirements in this administrative regulation were duplicative of the requirements already established in 302 KAR 20:066.

 

In response to questions by Senator Roeding, Commissioner Bennett stated that 2003 Senate Bill 112 would have addressed the permitting problems raised by Mr. Ortega but that legislation did not become law. Additionally, an executive order was issued that prohibited the issuance of permits.

 

In response to a question by Co-Chair Arnold, Mr. Holt stated that his objection to this administrative regulation involved the regulation of health issues by an agency when that authority was given to a different state agency.

 

In response to a question by Co-Chair Arnold, Mr. Ortega stated that he was concerned about the overlap in regulation from the two departments, but he did not object to specific process established in this administrative regulation.

 

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 7 and 9 to remove language no longer needed after original implementation of the administrative regulation; (3) to amend Section 10 to correct a regulatory citation; and (4) to amend Section 11 to: (a) delete the requirement to apply for an intrastate authorization number from the department; and (b) comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

301 KAR 2:172. Deer hunting seasons and requirements.

 

301 KAR 2:178. Deer hunting on Wildlife Management Areas.

 

301 KAR 2:221 & E. Waterfowl seasons and limits.

 

301 KAR 2:222 & E. Waterfowl hunting requirements.

 

301 KAR 2:225 & E. Dove, wood duck, teal, and other migratory game bird hunting.

 

Department of Agriculture: Organic Agricultural Product Certification

 

302 KAR 40:010. Certification of organic production, processing, or handling operations. Mark Farrow, General Counsel, Chris Kring, Organic Program, and Maria Rudder represented the Department.

 

In response to a question by Senator Pendleton, Mr. Farrow stated that this administrative regulation related to organic products, not certified kitchens.

 

In response to questions by Senator Pendleton, Mr. Green stated that this administrative regulation established fees for farmers based on the amount of sales and for certification by the Department of Agriculture.

 

Mr. Farrow stated that the certification could be obtained from an independent certification company, which would establish its own certification fees. The Department fees were reasonable compared to other stated.

 

A motion was made and seconded to approve the following amendments: (1) to amend Section 2(1) to delete the soil analysis and irrigation water test requirements, at the request of the agency;  (2) to create a Section 2(6) to permit producers, processor, or handlers with organic sales of less than $5,000 annually to be registered rather than be certified and to pay a $25 fee rather than a $125 fee, at the request of the agency; (3) to amend Section 3 to permit non-profit, educational, and charitable organizations with organic sales of less than $5,000 annually to be registered rather than be certified and to pay a $25 fee rather than a $125 fee, at the request of the agency; (4) to amend Section 8 to incorporate by reference the required forms; and (5) to amend Sections 2 to 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.

 

Labor Cabinet: Occupational Safety and Health

 

803 KAR 2:180 & E. Recordkeeping; statistics. Chuck Stribling, Safety Standards Specialist, David Stumbo, Health Standards Specialist, and Fred Huggins, Attorney, represented the Cabinet.

 

A motion was made and seconded to approve the following amendments: (1) to amend Section 1(2) to delete a repeated definition; and (2) to amend Sections 1 and 2 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 of Workers' Claims

 

803 KAR 25:175. Filing of insurance coverage and notice of policy change or termination. Carla Montgomery, Assistant General Counsel, represented the Department.

 

A motion was made and seconded to approve the following amendments: to amend Sections 3, 4, and 5 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Public Protection and Regulation Cabinet: Department of Alcoholic Beverage Control: Licensing

 

804 KAR 4:040. Bottling house storage. Steve Horner, Commissioner, represented the Department.

 

A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:130. Beer storage. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Section 1 to specify statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:140. Distributor's storage. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and the NECESSITY, FUNCTION, AND CONFORMITY paragraphs to specify statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:160. Beer transporter. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and the NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Section 1 to specify statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:220. Riverboats. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and the NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Section 9 to specify statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 5, 6, 7, 8, and 9 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:230. Extended hours supplemental licenses. In response to a question by Co-Chair Thayer, Commissioner Horner stated that this administrative regulation was amended to comply with the changes enacted in KRS 244.050 regarding extended hours licenses for the urban county government in Lexington.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph and Section 2 to specify statutory citations; (2) to create a Section 10 to incorporate by reference the required application form; and (3) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 4, 5, 8, and 9 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:240. Registration of brands. A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:250. Special temporary licenses. A motion was made and seconded to approve the following amendments: (1) to create a Section 4 to incorporate by reference the required application form; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:260. Horse race track license. In response to a question by Co-Chair Thayer, Commissioner Horner stated that this administrative regulation was amended to conform to the new licensing expiration dates. Previously, all Alcohol Beverage Control licenses expired on June 30 and now they expire on a staggered monthly basis based on zip codes.

 

In response to a question by Senator Roeding, Commissioner Horner stated that the distilled spirits administrator and malt beverage administrator had discretion in issuing licenses. A person denied a license by the administrator could appeal the decision to the full board.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and the NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Section 5 to specify statutory citations; and (2) to amend the STATUTORY AUTHORITY and NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Sections 2, 4, 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.

 

804 KAR 4:310. Caterer's license. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs to specify statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 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.

 

804 KAR 4:340. Brew-on-premises license. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs and Section 8 to specify statutory citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

804 KAR 4:350. Out-of-state brewers' licenses. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph and Section 2 to specify statutory citations; and (2) to amend Sections 2 and 3 to comply with the drafting and format requirements of KRS Chapter 13A.

 

804 KAR 4:380. Farm and small winery functions. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph and Sections 7 and 8 to specify statutory citations; (2) to create a Section 9 to incorporate by reference the required application form; and (3) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 5, 6, 7, and 8  to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Alcoholic Beverage Control Board

 

804 KAR 6:010. Procedures. A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Transportation of Alcoholic Beverages

 

804 KAR 8:050. Signs on vehicles used. A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to comply with the drafting and format requirements of KRS Chapter 13A; and (2) to delete Section 2 at the request of the agency. Without objection, and with agreement of the agency, the amendments were approved.

 

Department of Insurance : Authorization of Insurers and General Requirements

 

806 KAR 3:230. Standards for safeguarding customer information. Glenn Jennings, Deputy Commissioner, and Julie Mix McPeak, Acting General Counsel, represented the Department.

 

In response to questions by Senator Roeding, Ms. McPeak stated that this administrative regulation complied with the federal Gramm-Leach-Bliley Act, codified in 15 USC 6801(b), and did not affect the number of insurance companies coming into the state. The provisions were taken from model legislation prepared by the National Association of Insurance Commissioners (NAIC) and already enacted in the majority of states.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to add a citation; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 5 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Health Insurance Contracts

 

806 KAR 17:180 & E. Standard health benefit plan and comparison format. In response to questions by Senator Roeding, Mr. Jennings stated that the standard health benefit plan was statutorily-required. He did not know if Kentucky’s standard health plan was more or less generous than standard plans available in other states. Kentucky insurers were required to offer the standard plan, in addition to other plans the insurer offered.

 

Representative Lee stated that because the General Assembly mandated specific items for inclusion in the state’s standard health benefit plan, the General Assembly would need to enact legislation before any changes could be made.

 

A motion was made and seconded to approve the following amendments: (1) to amend the POS and PPO Health Benefit Plan Comparison Forms and the Kentucky Standard Health Benefit Plan to give Out-of-Network providers the option to choose between 30% coinsurance or a $25 copayment; (2) to amend the POS Health Benefit Plan Comparison Form and the Kentucky Standard Benefit Health Plan to delete the provision for "allergy serum and injections" because this benefit is already included as a part of Out Patient Services; and (3) to amend various sections of this administrative regulation to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Cabinet for Health Services: Office of Inspector General: Office

 

906 KAR 1:100. Nurse aide abuse registry, home health aide abuse registry, and hearing procedures. Alex Reese, Office of Inspector General, represented the Department.

 

In response to questions by Representative Lee, Mr. Reese stated that the Office of Inspector General maintained the nurse aide abuse registry in accordance with federal law. The Office has contracted with the Kentucky Board of Nursing for the board to provide the day-to-day operations for the registry.

 

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs and Section 1 to specify statutory citations; (2) to amend Section 1 to delete definitions for unused terms; and (3) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 and 2 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 1:011 & E. Technical eligibility requirements. Mike Robinson, Commissioner, Jesse Williams, Manager, Eligibility Policy Branch, Zach Ramsey, Director, Program Integrity, and Duane Dringenburg, Division Director, Physicians Specialty Services Division, represented the Department.

 

A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; (2) to amend Section 2 to: (a) reorganize the section for clarity, to comply with KRS 13A.222(4)(a); and (b) comply with the drafting and format requirements of KRS Chapter 13A; and (3) to amend Section 3 to correct an internal cross-reference. Without objection, and with agreement of the agency, the amendments were approved.

 

907 KAR 1:015 & E. Payments for hospital outpatient services. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct statutory citations; and (2) to amend Sections 1, 2, 4, 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.

 

907 KAR 1:031 & E. Payments for home health services. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; and (2) to amend Sections 1, 3, 4, 5, 7, 8, and 10 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 1:585 & E. Estate recovery. In response to questions by Representative Bruce, Mr. Ramsey stated that this administrative regulation eliminated the $50,500 exemption that had been available since the beginning of the estate recovery program. Now the Department would have the ability to recover from the full value of any homestead.

 

In response to a question by Representative Reinhardt, Mr. Ramsey stated that this change would provide about $3.75 million additional for Medicaid based on the resources recovered from the estates.

 

Mr. Robinson stated that the Department was authorized to recover the amount of the actual Medicaid cost for the individual’s institutional care. The change was motivated solely as a revenue-raising measure for the Department to prevent it from cutting more services or asking for additional revenue.

 

Senator Roeding stated that many other states already eliminated this exemption when they revamped their Medicaid programs.

 

In response to questions by Representative Bruce, Mr. Robinson stated that the Centers for Medicare and Medicaid Services had expressed concerns about the implementation of the original exemption. If the exemption was not eliminated, the estate recovery program would need modification to address those federal concerns. The Department had reviewed all aspects of the Medicaid program in recent years to manage costs and improve overall management of the program.

 

Representative Lee stated that most of the states were reexamining their Medicaid programs and making similar changes. The elimination of the homestead exemption was another step towards controlling Kentucky’s Medicaid expenditures.

 

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 the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220(3)(f); (3) to amend Section 1, 2, and 3 to comply with the drafting and format requirements of KRS Chapter 13A; and (4) to amend Section 3 to clarify the provisions relating to  cost effectiveness and undue hardship exemptions, as requested by the agency. Without objection, and with agreement of the agency, the amendments were approved.

 

907 KAR 1:640 & E. Income standards for Medicaid. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph and Section 6 to correct statutory citations; and (2) to amend Sections 1, 2, 3, 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.

 

907 KAR 1:645 & E. Resource standards for Medicaid. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; and (2) to amend Sections 1 and 3 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 1:650 & E. Trust and transferred resource requirements for Medicaid. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs and Sections 1 and 2 to correct statutory citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220(3)(f); and (3) to amend Sections 1, 2, and 3 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 1:665 & E. Special income requirements for hospice and home and community-based services. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; and (2) to amend Sections 1, 2, and 3 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

 

Payments and Services

 

907 KAR 3:005. Physicians' services. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; (2) to amend Sections 1, 2, 4, and 5 to comply with the drafting and format requirements of KRS Chapter 13A; and (3) to delete Section 8, which established a delayed effective date. Without objection, and with agreement of the agency, the amendments were approved.

 

907 KAR 3:010. Reimbursement for physicians' services. In response to questions by Senator Roeding, Mr. Dringenburg stated that this administrative regulation affected reimbursement rates for physicians but did not affect health clinics. Health clinics were reimbursed on a cost-based methodology under another administrative regulation.

 

Senator Roeding stated that he wanted the Department to look at the cost-based methodology for health clinics. Clinics billed at $80 to $100 for a service that a general practitioner would receive $27 for performing.

 

A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; (2) to amend Sections 1, 2, 3, and 5 to comply with the drafting and format requirements of KRS Chapter 13A; and (3) to delete Section 7, which established a delayed effective date. Without objection, and with agreement of the agency, the amendments were approved.

 

907 KAR 3:030 & E. Coverage and payments for IMPACT Plus services. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct a statutory citation; and (2) to amend Sections 1 to 10 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: Division of Policy Development: Child Support

 

921 KAR 1:410. Child support collection and distribution. Karen Doyle, Assistant Director, Rosanne Barkley, Patti Smith-Glover, Elizabeth Cawood, and Robin Herring, Branch Manager, Division of Child Care, represented the Department.

 

A motion was made and seconded to approve the following amendments: (1) to amend Section 10 to incorporate by reference a form; 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.

 

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

 

921 KAR 2:046. Adverse action; conditions. 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.

 

Protection and Permanency: Child Welfare

 

922 KAR 1:500 & E. Educational and training vouchers. In response to a question by Senator Roeding, Ms. Caywood stated that the Cabinet applied for, and received, a federal grant for educational training vouchers. The state met the minimal state matching requirements through its existing tuition waiver program. The funds would be used for vouchers for children who aged out of foster care, were adopted from state foster care after the age of 16, or were between the ages of 18 and 21. The money could be used for anything associated with the cost of attendance at a trade school, technical school, college or university.

 

A motion was made and seconded to approve the following amendments: (1) to amend Section 2 to clarify that the Institution of Higher Education makes the determination whether an individual is making satisfactory progress towards completion; 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.

 

Day Care

 

922 KAR 2:230. Director's credential. In response to questions by Senator Roeding, Ms. Herring stated that the implementation costs did not constitute a direct cost to providers but what the amount of money necessary for paying the Department staff to issue the certificates. The credentials would improve the quality of child care services because it would improve the education of providers.

 

Ms. Doyle stated that the program would be funded through the phase one tobacco settlement money as part of the governor’s initiative on child care. Legislation on this subject was enacted several years ago.

 

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.

 

922 KAR 2:250. Commonwealth child care credential. A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to use standard regulatory language; and (2) to amend Section 4 to further specify the type of child development training required by the cabinet for renewal of the Commonwealth Child Care Credential. Without objection, and with agreement of the agency, the amendments were approved.

 

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

 

General Government Cabinet: Boards and Commissions: Board of Optometric Examiners

 

201 KAR 5:010. Application for licensure; endorsement.

 

Board of Dentistry

 

201 KAR 8:490. Expungement of records.

 

Board of Licensure of Marriage and Family Therapists

 

201 KAR 32:010. Definitions.

 

201 KAR 32:025. Marriage and family therapist associate.

 

201 KAR 32:060. Continuing education requirements.

 

Board for Private Investigators

 

201 KAR 41:025 & E. Application for licensure.

 

Tourism Development Cabinet: Department of Fish and Wildlife Resources: Water Patrol

 

301 KAR 6:070. Boat dealers. Tom Bennett, Commissioner, Scott Porter, Assistant Attorney General, and Dr. Jon Gassett, Director, represented the Department.

 

In response to a question by Senator Roeding, Mr. Porter stated that the Department worked with the boat dealers’ association in promulgating this administrative regulation. The association wanted to establish uniformity and more professionalism in the industry and was in support of increasing the registration fee from $25 to $150.

 

Commissioner Bennett stated that under current provisions, a person could pay the $25 boat dealer license fee instead of registering the individual’s boat and paying property tax on the boat. This amended administrative regulation closed that loophole.

 

In response to questions by Representative Lee, Commissioner Bennett stated that unlike automobile dealers, boat dealers were not currently required to sell a minimum number of boats per year to register as a boat dealer. The Department would consider requiring boat dealers to have a minimum number of transactions in order to register.

 

Representative Lee made a motion to defer consideration of this administrative regulation. Without objection, and with the agreement of the agency, this administrative regulation was deferred.

 

Justice Cabinet: Department of Criminal Justice Training: Kentucky Law Enforcement Council

 

503 KAR 1:160 & E. Department of Criminal Justice Training - Kentucky Police Corps basic training: graduation requirements; records.

 

Public Protection and Regulation Cabinet: Department of Alcoholic Beverage Control: Licensing

 

804 KAR 4:030. Transport permit, nonresident licensee. Steve Horner, Commissioner, represented the Department.

 

In response to questions by Representative Lee, Commissioner Horner stated that this administrative regulation increased the lettering requirements by one-half inch to a three (3) inch requirement. This change would make the sizes uniform for all vehicles for Alcoholic Beverage Control disclosures. He was not aware of other reasons for increasing the size by one-half inch.

 

Senator Roeding stated that this administrative regulation should be amended to require the changed letter sizes for new vehicles or when vehicles are repainted, rather than requiring the changes immediately for all vehicles. Representative Reinhardt agreed with the suggestion made by Senator Roeding.

 

Senator Roeding made a motion to defer consideration of this administrative regulation. Without objection, and with the agreement of the agency, this administrative regulation was deferred.

 

Department of Housing, Buildings and Construction: Electrical Inspectors

 

815 KAR 35:040 & E. Licensing of electrical contractors, electricians, and master electricians.

 

Cabinet for Health Services: Office of Inspector General: Office

 

906 KAR 1:120. Informal dispute resolution.

 

 

The Subcommittee adjourned at 12:50 p.m. until December 10, 2003, at 10:30 a.m., in Room 149 of the Capitol Annex.