The Administrative Regulation Review Subcommittee met on Monday, March 13, 2006, at<MeetTime> 2:00 PM, in Room 131 of the Capitol Annex. Representative Tanya G Pullin, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Richard "Dick" Roeding, Co-Chair; Representative Tanya G Pullin, Co-Chair; Senators Alice Forgy Kerr, Joey Pendleton, and Gary Tapp; Representatives James E Bruce, Jimmie Lee, and Jon David Reinhardt.
Guests: Kathryn Dunnigan, State Board of Elections; Michael Burleson, Board of Pharmacy; Michael Rodman, Lloyd Vest, Board of Medical Licensure; Larry Brandstetter, Jim Grawe, Board of Architects; Jon Gassett, Department for Fish and Wildlife Resources; Gary R. Williams, United Bowhunters of Kentucky and Kentucky Bow Association; Phyllis Bruning, Catherine C. Staib, Cabinet for Economic Development; Bob Bickner, Ron Gruzesky, Bruce Scott, Division of Waste Management; Larry Lowe, Leah MacSwords, Division of Forestry; Richard J. Wahrer, Department for Natural Resources; Carrie Banahan, Glenn Jennings, Office of Insurance; Greg Jennings, Colleen Keefe, Office of Financial Institutions; Lisa Underwood, Kentucky Horse Racing Authority; and Jason Moseley, Cabinet for Health and Family Services.
LRC Staff: Dave Nicholas, Emily Caudill, Donna Little, Laura Milam, Karen Howard, Emily Harkenrider, Roslyn Hendrickson, and Ellen Steinberg.
Administrative Regulations Reviewed by the Subcommittee:
KENTUCKY STATE BOARD OF ELECTIONS: Forms and Procedures
31 KAR 4:130 & E. Submitting Federal Post Card Application by facsimile. Katie Dunnigan, general counsel, represented the board.
A motion was made and seconded to approve the following amendment: to amend the RELATES TO and NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Sections 1, 3, 4, 5, and 6 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
GENERAL GOVERNMENT CABINET: Board of Pharmacy: Board
201 KAR 2:020. Examination. Mike Burleson, executive director, represented the board.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs to correct statutory citations; (2) to amend Section 1 to delete provisions that repeated or summarized statutory provisions; and (3) to amend Sections 2 to 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.
201 KAR 2:030. License transfer. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs to correct statutory citations; (2) to amend Sections 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A; and (3) to incorporate by reference the required form. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 2:050. Licenses and permits; fees. In response to a question by Representative Lee, Mr. Burleson stated that this amended administrative regulation increased the fee for a duplicate license. There was not a specific fee for an original license.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs 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; and (3) to amend Section 1 to delete superfluous language. Without objection, and with agreement of the agency, the amendments were approved.
Board of Medical Licensure: Board
201 KAR 9:031. Examinations. Lloyd Vest, general counsel, represented the board.
A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation; 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.
Board of Architects: Board
201 KAR 19:040. Examinations required; general provisions. Larry Brandstetter, president, and Jim Grawe, assistant attorney general and general counsel, represented the board.
A motion was made and seconded to approve the following amendment: to amend Section 3 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
201 KAR 19:050. Reexamination; reconsideration.
COMMERCE CABINET: Department of Fish and Wildlife Resources: Game
301 KAR 2:144. Fall wild turkey hunting. Jon Gassett, commissioner, represented the department. Gary Williams, United Bowhunters of Kentucky and Kentucky Bow Association, appeared in favor of the amendments to these administrative regulations.
Senator Tapp introduced the following amendments to this administrative regulation: (1) to amend Sections 1 and 2 to set the fall crossbow season for wild turkey to be: (a) from October 1 through the end of the third full weekend in October; and (b) from the second Saturday in November through December 31; and (2) to amend Section 3 to change the bag limit to a total of four birds, only one of which may have a visible beard at least three inches long. He also thanked the department and the bow hunters for reaching a compromise on these amendments and those for 301 KAR 2:172.
In response to a question by Representative Bruce, Mr. Williams stated that he was in favor of the amendments to these two administrative regulations because they reflected a compromise that benefited the sportsmen.
A motion was made and seconded to approve the amendments introduced by Senator Tapp. Without objection, and with agreement of the agency, the amendments were approved.
301 KAR 2:172. Deer hunting seasons and requirements. Senator Tapp introduced the following amendments to this administrative regulation: to amend Section 5 to set the crossbow season for deer to be: (1) from October 1 through the end of the third full weekend in October; (2) from the second Saturday in November through December 31; and (3) during any season when a firearm may be used for taking deer. A motion was made and seconded to approve the amendments. Without objection, and with agreement of the agency, the amendments were approved.
CABINET FOR ECONOMIC DEVELOPMENT: Kentucky Economic Development Finance Authority
307 KAR 4:020. Kentucky Enterprise Initiative Act. Catherine Staib, assistant general counsel, represented the cabinet.
In response to questions by Co-Chair Roeding, Ms. Staib stated that the Kentucky Enterprise Initiative Act was a new statewide program that refunded sales tax paid for certain construction materials and research and development equipment. Fourteen applicants had requested refunds so far.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO, STATUTORY AUTHORITY, and NECESSITY, FUNCTION, AND CONFORMITY paragraphs to insert statutory citations; (2) to amend Sections 1 to 4 to comply with the drafting and format requirements of KRS Chapter 13A; and (3) to update the Application for Kentucky Enterprise Initiative Act, incorporated by reference, to comply with the definitions in the administrative regulation. Without objection, and with agreement of the agency, the amendments were approved.
ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department for Environmental Protection: Division of Waste Management: Special Waste
401 KAR 45:010. Definitions. Bruce Scott, director, Ron Gruzesky, manager, and Bob Bickner, supervisor, represented the division.
In response to a question by Co-Chair Roeding, Mr. Scott stated that coal combustion waste, mining waste, water treatment plant waste, waste water treatment sludge, and oil and gas drilling waste were all examples of special waste sites or facilities as defined by this administrative regulation.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to insert a statutory citation; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation; and (3) to amend the title 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.
401 KAR 45:070. Special waste registered permit-by-rule. A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation; and (2) to amend Sections 2, 3, 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.
Department for Natural Resources: Division of Forestry
402 KAR 3:020. Master Logger Program. Leah MacSwords, director, and Larry Lowe, program supervisor, represented the division.
In response to questions by Co-Chair Roeding, Ms. MacSwords stated that by statute, the division was allowed to charge a reasonable application fee for master loggers. The current fee of $50 had not been increased since 1988. Although the division determined that a reasonable fee would be $120, this administrative regulation only increased the fee to $85. The application fee was a one-time fee that was followed by a $50 renewal fee every three years. There were approximately 4,200 master loggers in Kentucky.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs 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) to amend Sections 2, 5, and 6 to specify the names of the required application forms; (4) to amend Sections 6, 7, 8, and 9 to comply with the drafting and format requirements of KRS Chapter 13A; and (5) to amend two application forms incorporated by reference to conform to the other changes. Without objection, and with agreement of the agency, the amendments were approved.
402 KAR 3:040. Removal of bad actor designation. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and STATUTORY AUTHORITY paragraphs 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; and (3) to amend Sections 1, 2, 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.
Department of Public Protection: Office of Insurance: Division of Health Insurance Policy and Managed Care: Health Insurance Contracts
806 KAR 17:510. Health benefit plan exclusionary rider requirements. Glenn Jennings, executive director, and Carrie Banahan, deputy executive director, represented the office.
In response to a question by Co-Chair Roeding, Mr. Jennings stated that an exclusionary rider enabled an applicant to obtain health insurance at a more reasonable rate by excluding coverage for up to three medical conditions, such as diabetes. To protect the consumer, this administrative regulation required the insurer to fully disclose the exclusions in the application and required the consumer to acknowledge them in writing.
In response to questions by Representative Lee, Ms. Banahan stated that exclusionary riders were not permitted for renewed policies if they were not attached to the original policy. The original policy was guaranteed renewable each year.
In response to a question by Co-Chair Pullin, Mr. Jennings stated that the amendments to this administrative regulation resolved any concerns of the chiropractors and optometrists.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO, STATUTORY AUTHORITY, and NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Section 2 to comply with the drafting and format requirements of KRS Chapter 13A; and (2) to amend Sections 2(1) and 3(3) to add that the exclusionary rider applied to a medical condition that was diagnosed prior to the issuance of coverage. Without objection, and with agreement of the agency, the amendments were approved.
Department of Public Protection: Office of Financial Institutions: Administration
808 KAR 1:150. Establishment and relocation of bank branches or offices. Greg Jennings, general counsel, and Colleen Keefe, director of securities, represented the office.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to add statutory citations; (2) to amend Sections 1 and 3 to make additional changes to conform to the reorganization/statutory changes; (3) to amend Section 2 to add in references to the appropriate federal citations; and (4) to amend Section 3 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Credit Unions
808 KAR 3:020. Records retention schedule. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to add a federal citation; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to comply with KRS 13A.220; 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.
Securities
808 KAR 10:331. Repeal of 808 KAR 10:330.
808 KAR 10:360. Safe harbor for limited liability company membership interests. In response to a question by Co-Chair Roeding, Ms. Keefe stated that this amended administrative regulation clarified when a membership interest in a limited liability company met the safe harbor criteria so that the interest was not subject to the Securities Act of Kentucky, KRS Chapter 292.
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 the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 2 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
808 KAR 10:430. Required filing for oil, gas, and mineral securities offerings relying upon the registration exemption in KRS 292.410(1)(i). A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to comply with KRS 13A.220; and (2) to amend 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.
Kentucky Horse Racing Authority: Thoroughbred Racing
810 KAR 1:028. Disciplinary measurements and penalties. Lisa Underwood, deputy commissioner and general counsel, represented the authority.
In response to a question by Senator Pendleton, Ms. Underwood stated that the amendments to this administrative regulation provided more guidance to the authority and to the stewards in assessing penalties for violations.
Senator Pendleton stated that he appreciated the authority's forthrightness with the subcommittee and their continuing progress in developing threshold levels and withdrawal guidelines for equine medications.
Representative Lee stated that he opposed this administrative regulation because it did not contain threshold levels for all fifty of the most commonly used equine medications. Enforcement of this administrative regulation as currently drafted would be unfair and legally questionable.
Representative Bruce thanked the authority's vice chair Connie Whitfield for her work on the amendments to this administrative regulation.
A motion was made and seconded to approve the following amendments: (1) to amend Section 1 to clarify that the term "drug" as used when defining drugs by class also included "medications or substances"; (2) to amend Section 2 to: (a) clarify that alleged violations of Title 810 shall be adjudicated in accordance with 810 KAR 1:029 and KRS Chapter 13B; (b) require license suspensions or revocations to be calculated in racing days only; and (c) insert standards for when a horse may be required to be housed prior to race time; (3) to rewrite Sections 4, 5, 6, 9, and 10 to: (a) insert the new requirement that fines, if agreed to by the alleged violator and the Authority, may be assessed in mitigation of a license suspension or revocation for certain violations of 810 KAR 1:018 and other sections of Title 810, and delete language allowing the Authority and the stewards to assess fines without the agreement of the alleged violator; and (b) insert language requiring penalties to be assessed in keeping with the seriousness of the violation and the facts of the case; (4) to amend Section 11 to incorporate by reference the KHRA Withdrawal Guidelines and threshold levels for certain medications; and (5) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 7, 8, and 11 to comply with the drafting and format requirements of KRS Chapter 13A. With agreement of the agency, the amendments were approved, with Representative Lee voting not to approve.
CABINET FOR HEALTH AND FAMILY SERVICES: Department for Community Based Services: Division of Policy Development: 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. Jason Moseley, director, represented the division.
A motion was made and seconded to approve the following amendment: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 4, 6, 7, 12, 13, and 14 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
The following administrative regulations were deferred to the next meeting of the Subcommittee:
JUSTICE AND PUBLIC SAFETY CABINET: Department of Criminal Justice Training: General Training Provision
503 KAR 3:050 & E. Telecommunications academy: graduation requirements; records.
ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department of Public Protection: Office of Insurance: Agents, Consultants, Solicitors and Adjusters
806 KAR 9:310. Viatical settlement broker license.
Office of Financial Institutions: Securities
808 KAR 10:200. Investment advisers' minimum liquid capitalization; bond.
CABINET FOR HEALTH AND FAMILY SERVICES: Department for Mental Health and Mental Retardation Services: Institutional Care
908 KAR 3:190 & E. Drug testing policies at a state operated facility for persons with mental illness or mental retardation.
The subcommittee adjourned at 2:45 p.m. until April, 2006.