The April meeting of the Administrative Regulation Review Subcommittee was held on Thursday, April 13, 2006, at 10:00 AM, in Room 149 of the Capitol Annex. Senator Richard "Dick" Roeding, 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 and Jon David Reinhardt.
Guests: Tom Howard, Angela Robinson, Finance and Administration Cabinet; Lori Flanery, Kentucky Housing Corporation; Mark Cramer, Jim Lane, Kentucky Department of Fish and Wildlife Resources; Amy Barker, Department of Corrections; Stacy Warnecke, Roger Wright, Kentucky State Police Forensic Lab; LaDonna Koebel, Libby Mills, Sherre Smith-Jones, Richard Thomas, Department of Juvenile Justice; Gail Robinson, Department of Public Advocacy; Kevin Noland, Kentucky Board of Education; Treva Donnell, Glenn Jennings, Office of Insurance; Greg A. Jennings, Colleen Keefe, Office of Financial Institutions; Jeff Barnett, Trish Howard, Lane Jurek, and Jason Moseley, Cabinet for Health and Family Services.
LRC Staff: Dave Nicholas, Emily Caudill, Donna Little, Laura Milam, Karen Howard, Emily Harkenrider, and Roslyn Hendrickson.
The Administrative Regulation Review Subcommittee met on Thursday, April 13, 2006, and submits this report:
Other Business:
Co-Chair Roeding stated that House Bill 374, which included provisions similar to Senate Bill 96 which he sponsored, was enacted by the 2006 Regular Session of the General Assembly and was signed into law by the Governor. It assisted Kentucky small businesses and other Kentucky citizens with the administrative regulation process in four ways. First, it required an analysis to determine the impact of proposed administrative regulations on regulated entities. Second, it required administrative bodies to consider the costs that an administrative regulation may cause state or local government to incur. Third, it enabled citizens to register to request notification regarding administrative regulations by completing an electronic registration form located on a centralized state government Web site. Lastly, the bill required administrative bodies to designate a small business ombudsman to respond to inquiries on administrative regulations and to report those inquiries annually.
Administrative Regulations Reviewed by the Subcommittee:
FINANCE AND ADMINISTRATION CABINET: Office of the Secretary: Kentucky Private Activity Bond Allocation Committee
200 KAR 15:010. Formula for allocation of private activity bonds. Tom Howard, executive director, represented the committee.
COMMERCE CABINET: Department of Fish and Wildlife Resources: Game
301 KAR 2:041. Shooting preserves and foxhound training enclosures. Mark Cramer, deputy commissioner, and Jim Lane, director, represented the department.
In response to a question by Representative Bruce, Mr. Lane stated that even though the trapping season for coyotes was limited, a farmer could trap year-round if the farmer was experiencing damage.
In response to a question by Representative Reinhardt, Mr. Lane stated that the farmer needed to document the damage by contacting a conservation officer or game warden.
In response to a question by Co-Chair Roeding, Mr. Lane stated that there was a year-round season for shooting coyotes because non-target capture was not an issue like it was with trapping.
A motion was made and seconded to approve the following amendment: to amend Section 4 to correct minor drafting errors. Without objection, and with agreement of the agency, the amendment was approved.
301 KAR 2:251. Hunting and trapping seasons and limits for furbearers and small game.
JUSTICE AND PUBLIC SAFETY CABINET: Department of Corrections: Office of the Secretary
501 KAR 6:020. Corrections policies and procedures. Amy Barker, counsel, represented the department.
A motion was made and seconded to approve the following amendment: to amend Section 1 and the material incorporated by reference to: (1) delete CPP 1.1; (2) renumber CPP 4.7 as 3.17 for organizational purposes; and (3) update the requirements for live work projects in CPP 20.1. Without objection, and with agreement of the agency, the amendment was approved.
Department of State Police: DNA
502 KAR 32:010 & E. Centralized database for DNA identification records. Roger Wright, assistant general counsel, and Stacy Warnecke, DNA database supervisor, represented the department.
A motion was made and seconded to approve the following amendment: to amend the STATUTORY AUTHORITY and NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Sections 1, 2, 3, 4, and 8 for clarification and to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
Department of Juvenile Justice: Division of Juvenile Services in Community: Child Welfare
505 KAR 1:130. Department of Juvenile Justice Policies and Procedures Manual: juvenile services in community. LaDonna Koebel, assistant general counsel, Sherre Smith-Jones, director, and Libby Mills, assistant director, represented the department. Gail Robinson, counsel, Department of Public Advocacy, appeared in opposition to this administrative regulation.
In response to a question by Co-Chair Pullin, Ms. Koebel stated that the pending lawsuit against the department regarding the classification and placement of youth did not involve this administrative regulation.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to delete an inapplicable citation; and (2) to amend Section 1 and DJJ 609.2 to require written notification to the court for all transfers or placements of juveniles and to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
EDUCATION CABINET: Board of Education: Department of Education: School Terms, Attendance and Operation
702 KAR 7:065. Designation of agent to manage high school interscholastic athletics. Kevin Noland, general counsel, represented the board.
In response to questions by Co-Chair Roeding and Co-Chair Pullin, Mr. Noland stated that the Board agreed to continue the use of the terms BC (Before Christ) and AD (Anno Domini) in reference to time within the program of studies. Additionally, students would be made aware of the terms BCE (Before the Common Era) and CE (Common Era) because of their use in national tests.
Senator Pendleton requested that the Board inform the subcommittee of any prominent issues in education administrative regulations that that were reviewed by the Education Assessment and Accountability Review Subcommittee. Mr. Noland agreed to do so.
702 KAR 7:125. Pupil attendance. A motion was made and seconded to approve the following amendment: to amend Sections 7, 12, and 17 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
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. Glenn Jennings, executive director, and Treva Donnell represented the office.
A motion was made and seconded to approve the following amendments: (1) to amend the entire administrative regulation to implement Senate Bill 107, enacted during the 2006 Regular Session of the General Assembly, which allowed a licensed insurance agent to act as a viatical settlement broker without being licensed as a viatical settlement broker if the agent complies with notification and other requirements; 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.
Health Insurance Contracts
806 KAR 17:160. Creditable coverage for health insurance.
806 KAR 17:330. Kentucky Access health benefit plans. In response to a question by Co-Chair Roeding, Mr. Jennings stated that this amended administrative regulation updated the health benefit plans offered by Kentucky Access to reflect the recent changes to the standard health benefit plan. By statute, Kentucky Access was required to base their health benefit plans on the current standard health benefit plan.
A motion was made and seconded to approve the following amendments: (1) to amend Section 1 to correct a statutory citation; and (2) 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.
Office of Financial Institutions: Securities
808 KAR 10:010. Forms for application, registration; notice filing; reporting and compliance. Greg Jennings, general counsel, and Colleen Keefe, director, represented the office.
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 correct statutory citations; and (2) to amend Sections 1 and 2 to: (a) correct the title and edition dates of the material incorporated by reference; and (b) comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
808 KAR 10:200. Investment advisers' minimum liquid capitalization; bond. 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; (3) to amend Section 1 to move requirements and standards from the definition of “custody” to a newly-created Section 2, to comply with KRS 13A.222(4)(d); (4) to amend Sections 2, 3, and 4 to delete the requirement that specified notifications be filed on Form ADV; and (5) to amend Sections 1 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.
CABINET FOR HEALTH AND FAMILY SERVICES: Office of Health Policy: Division of Certificate of Need: Certificate of Need
900 KAR 6:020 & E. Certificate of need application fee schedule. Jeff Barnett, deputy executive director, represented cabinet.
In response to a question by Co-Chair Roeding, Mr. Barnett stated that this administrative regulation modified the fee structure for certificate of need applications. It replaced the existing fee schedule, which was based on a sliding scale, with a more commonly applied fee rate.
In response to questions by Representative Bruce, Mr. Barnett stated that the new structure would increase fees for some applicants but would decrease fees for others. Additionally, five employees worked for the division and there were approximately ten hearing officers under the administrative branch.
In response to questions by Senator Tapp, Mr. Barnett stated that in comparison to surrounding states, the new structure included a lower minimum fee and a maximum cap. The maximum cap would benefit many applicants by reducing their fee. For example, the cap would reduce the fee for a $10 million application from $61,000 to $25,000.
In response to questions by Co-Chair Roeding, Mr. Barnett stated that the division did not receive any complaints about the new fee structure and they did take into account their costs when determining the structure. Additionally, the application fee was refundable if the applicant withdrew the application within five working days of receipt.
In response to a question by Co-Chair Pullin, Mr. Barnett stated that because most projects had capital expenditures in the higher ranges, more projects would receive fee decreases than fee increases.
Department for Community Based Services: Energy Assistance Program/Weatherization
921 KAR 4:116 & E. Low Income Home Energy Assistance Program or "LIHEAP." Jason Moseley, director, and Lane Jurek represented the department.
A motion was made and seconded to approve the following amendments: (1) to amend the definitions of "Emergency" and "Life-threatening situation" to clarify that the events take place at the time of application; (2) to amend Section 4(2)(e) and (3) to clarify household eligibility requirements; and (3) to amend the RELATES TO paragraph and Sections 1, 3, 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.
The following administrative regulations were deferred to the next meeting of the Subcommittee:
FINANCE AND ADMINISTRATION CABINET: Department of Revenue: General Administration
103 KAR 1:050 & E. Forms manual.
Income Tax; General Administration
103 KAR 15:140 & E. Biodiesel tax credit.
Income Tax; Withholding
103 KAR 18:070 & E. Supplemental wages and other payments subject to withholding.
OFFICE OF THE GOVERNOR: Kentucky Infrastructure Authority: Authority
200 KAR 17:050. Clean Water State Revolving Fund.
200 KAR 17:070. Drinking Water State Revolving Fund.
GENERAL GOVERNMENT CABINET: Real Estate Commission
201 KAR 11:011 & E. Definitions for 201 KAR Chapter 11.
201 KAR 11:121 & E. Improper conduct.
Board of Chiropractic Examiners
201 KAR 21:015. Code of ethical conduct.
201 KAR 21:025. Board; officers, duties.
201 KAR 21:031. Board meetings.
201 KAR 21:041. Licensing; renewals, fees.
201 KAR 21:045. Specialties.
201 KAR 21:051. Board hearings; complaints.
201 KAR 21:055. Colleges and universities; accreditation, approval.
201 KAR 21:060. Clinics; offices.
201 KAR 21:065. Professional advertising.
201 KAR 21:070. Licensing examination requirements.
201 KAR 21:075. Peer review procedures and fees.
201 KAR 21:080. Seventy-two (72) hour right of rescission.
201 KAR 21:085. Preceptorship program.
201 KAR 21:095. Licensure and registration of persons performing peer review.
201 KAR 21:100. Minimum standards for recordkeeping/itemized statements.
COMMERCE CABINET: Department of Parks: Parks and Campgrounds
304 KAR 1:060. Boat ramp fees.
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 Labor: Office of Occupational Safety and Health
803 KAR 2:180. Recordkeeping; reporting; statistics.
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 10:55 a.m. until Thursday, May 11, 2006.