The June meeting of the Administrative Regulation Review Subcommittee was held on Tuesday, June 13, 2006, at 10:00 AM, in Room 149 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: Brenda Allen, Education Professional Standards Board; Katie Dunnigan, Sarah Ball Johnson, State Board of Elections; Laura Ferguson, Eddie Mattingly, Gary Morris, Angela C. Robinson, Finance and Administration Cabinet; Nathan Goldman, Board of Nursing; James J. Grawe, Vivian Rodes, DPM, Board of Podiatry; Timothy Robertson, Board for Professional Counselors; Benjy Kinman, Jim Lane, Department of Fish and Wildlife Resources; Amy Barker, James Van Nort, Department of Corrections; Steve Lynn, Department of Criminal Justice Training; Philip J. Anderson, Steve Morrison, David Stumbo, Kendra Taylor, Department of Labor; Jeff Barnett, Glenn Bryant, Elizabeth Caywood, Wendy Cumpston, Steve Davis, David Gayle, Linda Harney, Trish Howard, Shane O'Donley, Stuart Owen, Zach Ramsey, Dave Sallengs, Cabinet for Health and Family Services; John Chilton, CPA, Penny Gold, Kentucky Society of CPAs; Elizabeth Cobb, Nancy Galvagni, Kentucky Hospital Association; and Rosanne Nields, Saint Elizabeth Medical Center.
LRC Staff: Dave Nicholas, Emily Caudill, Donna Little, Laura Milam, Karen Howard, Emily Harkenrider, Ellen Steinberg, and Roslyn Hendrickson.
Administrative Regulations Reviewed by the Subcommittee:
EDUCATION PROFESSIONAL STANDARDS BOARD: General Administration
16 KAR 1:050. Local educator assignment data. Brenda Allen, deputy executive director and general counsel, represented the Board.
A motion was made and seconded to approve the following amendments: to amend Section 7(1) to delete superfluous language as required by KRS 13A.222(4)(a). Without objection, and with agreement of the agency, the amendments were approved.
16 KAR 2:060. School nurse. In response to questions by Co-Chair Roeding, Ms. Allen stated that this administrative regulation had not been updated in over 20 years, had limited the number of nurses available to work in schools, and had established only one certification level for school nurses. The amended administrative regulation created three levels of certification and would allow more nurses to work in Kentucky’s public schools.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and 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.
16 KAR 5:010. Standards for accreditation of educator preparation units and approval of programs. In response to questions by Co-Chair Roeding, Ms. Allen stated that Kentucky was required to follow the national standards adopted by NCATE, which required that the accreditation cycle be based on a seven year cycle, rather than a five year cycle. Kentucky would continue to monitor its institutions through annual reporting requirements and use of its quality performance index.
A motion was made and seconded to approve the following amendments: (1) to amend Section 5 to clarify the annual reporting requirements for institutions seeking accreditation; (2) to amend Section 23 to specify the requirements for requesting a waiver for alternative route programs; and (3) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 5, 9, 11, 19, 23, 25, and 27 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
16 KAR 6:030. Examination prerequisites for principal certification. In response to questions by Senator Tapp, Ms. Allen stated that she would inform Senator Tapp of the maximum score possible on the School Leaders Licensure Assessment.
In response to a question by Co-Chair Roeding, Ms. Allen stated that language that applied prior to September 2004 was outdated and thus had been deleted from this administrative regulation.
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 2 and 5 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
STATE BOARD OF ELECTIONS: Forms and Procedures
31 KAR 4:160 & E. Elections Emergency Contingency Plan. Sarah Johnson, executive director, and Katie Dunnigan, general counsel, represented the board.
A motion was made and seconded to approve the following amendments: (1) to amend Section 1 to add a definition for "Elections Emergency Contingency Plan"; and (2) to amend Sections 2, 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.
31 KAR 4:170 & E. Exceptions to prohibition on electioneering.
FINANCE AND ADMINISTRATION CABINET: Department of Revenue: General Administration
103 KAR 1:050 & E. Forms manual. Gary Morris, executive director, Laura Ferguson, general counsel, and Eddie Mattingly, legislative liaison, represented the department. John Chilton, Kentucky Society of CPAs, appeared in support of these administrative regulations.
In response to questions by Senator Tapp, Mr. Morris stated that while some of these administrative regulations might be affected by a potential special session on tax issues, the department wanted the package of administrative regulations to continue through the regulatory process. In response to a question by Co-Chair Pullin, Ms. Ferguson stated that deferring the administrative regulations would not be beneficial to the taxpayers who needed the guidance provided by the package for their 2005 income tax returns.
In response to a question by Co-Chair Pullin, Mr. Chilton stated that the Kentucky Society of CPAs supported the package of administrative regulations and appreciated the department’s willingness to work with their organization.
A motion was made and seconded to approve the following amendments: to amend Sections 1 to 22 to: (1) comply with the drafting and format requirements of KRS Chapter 13A; (2) correct the names and edition dates of the forms incorporated by reference; and (3) delete outdated forms no longer used by the Department of Revenue. Without objection, and with agreement of the agency, the amendments were approved.
Income Tax; General Administration
103 KAR 15:020 & E. Election to pay share of tax on behalf of corporation. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to insert statutory citations; and (2) to amend Sections 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.
103 KAR 15:100 & E. Nonrefundable and refundable corporation income tax credits. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to insert statutory citations; and (2) to amend 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.
Income Tax; Corporations
103 KAR 16:020 & E. Qualified exempt organization under KRS 141.040(8)(a). A motion was made and seconded to approve the following amendments: (1) to amend the TITLE to correct 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, as required by KRS 13A.220; and (3) to amend Section 1 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
103 KAR 16:060 & E. Income classification; business and nonbusiness. 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, as required by KRS 13A.220; (2) to amend Sections 2, 3, 4, 5, 7, 8, and 9 to comply with the drafting and format requirements of KRS Chapter 13A; and (3) to amend Section 7 to delete language relating to auditing the nonbusiness or nontaxable income of a taxpayer. Without objection, and with agreement of the agency, the amendments were approved.
103 KAR 16:090 & E. Apportionment; payroll factor. 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 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A; and (4) to amend Section 1 to specify that the corporation’s accounting method shall be the same method used for federal taxation purposes. Without objection, and with agreement of the agency, the amendments were approved.
103 KAR 16:150 & E. Apportionment and allocation; financial organizations and loan companies. 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 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, 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.
103 KAR 16:200 & E. Consolidated Kentucky corporation income tax return. 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, as required by KRS 13A.220; (2) to amend Sections 1, 2, 3, 4, 6, 7, 8, and 9 to: (a) correct statutory citations; and (b) comply with the drafting and format requirements of KRS Chapter 13A; (3) to amend Sections 7 and 8 to specify that Form 722 shall be filed as required by 103 KAR 1:050, with all applicable schedules attached; and (4) to delete Section 10, the incorporation by reference section, to comply with KRS 141.140. Without objection, and with agreement of the agency, the amendments were approved.
103 KAR 16:210 & E. Calculation of gross income for corporations that are pass-through entities and treatment of certain deductions for their individual members, partners, and shareholders. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph and Section 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; and (3) to amend Section 1 to correct a typographical error. Without objection, and with agreement of the agency, the amendments were approved.
103 KAR 16:230 & E. Intangible expenses, intangible interest expenses and management fees. 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, as required by KRS 13A.220; and (2) to amend Sections 1, 2, 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.
103 KAR 16:240 & E. Nexus standard for corporations and general partnerships. A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and 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.
103 KAR 16:250 & E. Net operating loss deduction for corporations. 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, as required by KRS 13A.220; 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.
103 KAR 16:270 & E. Apportionment; sales factor. 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 create a definitions section and add a definition for "Gross receipts"; and (4) to amend Sections 1 through 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.
103 KAR 16:290 & E. Apportionment; property factor. 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; (3) to amend Section 1 to clarify the definition of "Annual rent", delete the definition of "Annual rental rate," and move the requirements listed in these definitions to Section 7(1); (4) to amend Section 8 to state that fluctuations of more than fifty percent (50%) shall cause averaging by monthly values to apply; and (5) to amend Sections 1, 3, and 7 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 16:300 & E. Calculation of taxable net income for disregarded single member LLCs. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO 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; and (3) to amend Section 2 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
103 KAR 16:310 & E. Domestic production activity deduction. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO 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; and (3) 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.
103 KAR 16:320 & E. Claim of Right Doctrine. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO 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; and (3) to amend Section 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.
103 KAR 16:330 & E. Apportionment and allocation; separate accounting. 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, as required by KRS 13A.220; 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.
103 KAR 16:340 & E. Apportionment and allocation; completed contract method. 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, as required by KRS 13A.220; and (2) to amend Sections 2 to 7 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Income Tax; Individual
103 KAR 17:060 & E. Income subject to taxation; portions. 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, as required by KRS 13A.220; and (2) 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.
103 KAR 17:100 & E. Division of income between married individuals filing separate tax returns. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO 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; 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.
Income Tax; Withholding
103 KAR 18:070 & E. Supplemental wages and other payments subject to withholding. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to insert statutory citations; and (2) to amend 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.
103 KAR 18:160 & E. Partnership income, credits, and payments subject to withholding. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to insert statutory citations; (2) to amend Section 2(4) to clarify that withholding requirements apply to nonresident individual partners; and (3) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 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.
GENERAL GOVERNMENT CABINET: Board of Nursing: Board
201 KAR 20:370. Applications for licensure and registration. Nathan Goldman, general counsel, represented the board.
201 KAR 20:411. Sexual Assault Nurse Examiner Program standards and credential requirements.
Board of Podiatry: Board
201 KAR 25:031. Continuing education. Dr. Vivian Rodes, board member, and James Grawe, assistant attorney general, represented the board. In response to questions by Co-Chair Pullin, Dr. Rodes stated that there were only seven podiatry schools in the United States and graduates tended to stay in the general area of those schools. The closest podiatry school to Kentucky was located in Cleveland, Ohio.
A motion was made and seconded to approve the following amendments: to amend Sections 1, 2, 3, 5, and 7 for clarification and 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 Licensed Professional Counselors: Board
201 KAR 36:030. Continuing education requirements. Tim Robertson, board member, and James Grawe, assistant attorney general, represented the board.
A motion was made and seconded to approve the following amendments: (1) to amend Section 6(4) to cite to the relevant statutory provision rather than repeating it, as required by KRS 13A.120(2); and (2) to amend Sections 4, 6, 7, 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.
201 KAR 36:040. Code of ethics. A motion was made and seconded to approve the following amendments: (1) to delete Sections 4(4) and (5) because they repeated statutory provisions in violation of KRS 13A.120(2); and (2) to amend Sections 2, 3, 4, 5, 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.
201 KAR 36:070. Education requirements. A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to add a relevant citation; and (2) to amend Sections 1 and 2 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
COMMERCE CABINET: Department of Fish and Wildlife Resources: Fish
301 KAR 1:015. Boats and motor restrictions. Jim Lane, wildlife director, and Benjy Kinman, fisheries director, represented the department.
A motion was made and seconded to approve the following amendment: to amend Section 1 to correct a minor drafting error. Without objection, and with agreement of the agency, the amendment was approved.
301 KAR 1:110. Prohibition on raising or hatching fish in public waters. 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 correct a minor drafting error; and (3) to amend Section 2 to include a reference to the standards in 301 KAR 1:115, Section 6. Without objection, and with agreement of the agency, the amendments were approved.
301 KAR 1:115. Propagation of aquatic organisms. A motion was made and seconded to approve the following amendments: to amend Sections 1, 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.
301 KAR 1:122. Importation, possession; live fish. A motion was made and seconded to approve the following amendment: to amend Section 1 to correct a minor drafting error. Without objection, and with agreement of the agency, the amendment was approved.
301 KAR 1:150. Waters open to commercial fishing. A motion was made and seconded to approve the following amendments: 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.
301 KAR 1:201. Fishing limits. A motion was made and seconded to approve the following amendments: to amend Section 1 to correct minor drafting errors. Without objection, and with agreement of the agency, the amendments were approved.
Game
301 KAR 2:050. Land Between the Lakes hunting requirements.
301 KAR 2:111. Deer and turkey hunting on special areas.
301 KAR 2:132. Elk depredation permits, landowner cooperator permits, and quota hunts.
In response to questions by Senator Tapp, Mr. Lane stated that all proceeds from the sale of landowner cooperator permits for elk hunting went to help wildlife management. Proceeds from an auction raffle by the nonprofit organization, Rocky Mountain Foundation, went to an Appalachian wildlife initiative in Eastern Kentucky.
In response to questions by Co-Chair Roeding, Mr. Lane stated that this administrative regulation increased the elk tag fees for residents by $5 and increased the fee amount for nonresidents to make that fee more consistent with the fees charged for similar activities in other states.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 3, 4, 5, and 7 to comply with the drafting and format requirements of KRS Chapter 13A; and (2) to amend Section 7 to require a landowner who sells a permit to provide the department with information showing: (a) the sale price of the permit; and (b) how the proceeds of the sale will be used in the state for wildlife management. Without objection, and with agreement of the agency, the amendments were approved.
301 KAR 2:174. Deer hunting zones.
301 KAR 2:176. Deer control tags. A motion was made and seconded to approve the following amendment: to amend Section 2 to correct a minor drafting error. Without objection, and with agreement of the agency, the amendment was approved.
301 KAR 2:178. Deer hunting on Wildlife Management Areas. A motion was made and seconded to approve the following amendments: to amend Section 2 to correct minor drafting errors. Without objection, and with agreement of the agency, the amendments were approved.
301 KAR 2:179. State park deer hunts.
JUSTICE AND PUBLIC SAFETY CABINET: Department of Corrections: Sex Offender Risk Assessment Advisory Board: Office of the Secretary
501 KAR 6:190. Approval process for mental health professionals performing comprehensive sex offender presentence evaluations and treatment of sex offenders. Amy Barker, assistant general counsel, and James Van Nort, board chairman, represented the department.
In response to questions by Co-Chair Roeding, Ms. Barker stated that court-ordered individuals were required to report to their probation and parole officers. Mr. Van Nort stated that other systems were in place to address reporting requirements for sex offenders. This administrative regulation established the requirements for becoming an approved provider for evaluating and treating the offenders.
In response to questions by Co-Chair Pullin, Ms. Barker stated that this administrative regulation was not affected by the passage of House Bill 3 during the 2006 Regular Session of the General Assembly.
A motion was made and seconded to approve the following amendments: (1) to amend Section 1 to delete definitions that were unnecessary or already defined by statute; and (2) to amend Sections 2 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.
Department of Criminal Justice Training: General Training Provision
503 KAR 3:070 & E. Telecommunications academy (non-CJIS). Steve Lynn, assistant general counsel, represented the board.
A motion was made and seconded to approve the following amendment: to amend the RELATES TO paragraph to add a relevant statutory citation. Without objection, and with agreement of the agency, the amendment was approved.
ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department of Labor: Office of Occupational Safety and Health
803 KAR 2:180. Recordkeeping; reporting; statistics. David Stumbo, health standards specialist, Steve Morrison, executive director, Phillip Anderson, commissioner, and Kendra Taylor, attorney, represented the department.
A motion was made and seconded to approve the following amendments: (1) 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; and (2) to amend Section 3 to establish reporting requirements, including requirements to report an amputation or hospitalization of fewer than three employees within 72 hours following a work-related incident to the department by telephone, within 72 hours, effective November 1, 2006 through December 31, 2008. 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: State Health Plan
900 KAR 5:020 & E. State health plan for facilities and services. Jeff Barnett, deputy general counsel and deputy executive director, and Shane O’Donley, division director, represented the office. Nancy Galvagni, senior vice president, Kentucky Hospital Association, and Elizabeth Cobb, director of health policy, Kentucky Hospital Association, appeared in support of these administrative regulations.
In response to questions by Co-Chair Pullin, Mr. Barnett stated that the office appreciated the involvement by the Kentucky Hospital Association and others in the regulatory process and that involvement would bring better outcomes to both the state health plan and certificate of need processes.
In response to questions by Co-Chair Pullin, Ms. Galvagni stated that the Kentucky Hospital Association supported the state health plan and was happy with the overall outcomes. The office had been very responsive to their comments in a number of areas. The acute care bed formula was extremely outdated and had consisted of a two-part test, including the number of beds in a general area (measured by area development districts) and exceptions based on high occupancy rates for individual hospitals. Those outdated tests did not factor in current medical practice, such as using acute care beds for patient observations to help determine if patients needed to be admitted to the hospital.
In response to questions by Representative Reinhardt, Ms. Galvagni stated that these two administrative regulations would have a positive impact on the general public since the standards were in line with current needs and medical practices. Mr. Barnett stated that the moratoriums issued over the last decade regarding certificates of need had prevented growth and the amended administrative regulations considered Kentucky’s aging population, service and provider access needs, and other factors. The result would be a positive impact on Kentucky, especially on the number of specialty beds, such as neonatal care beds.
In response to a question by Representative Bruce, Mr. Barnett stated that the Kentucky Medical Association provided input throughout the process as did providers in all practice areas.
In response to a question by Co-Chair Roeding, Ms. Galvagni stated that the Kentucky Hospital Association planned to send regulatory information to all hospitals regarding the changes made to these administrative regulations. Additionally, many hospitals had already submitted applications under the revised guidelines available under the emergency administrative regulations.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY and NECESSITY, FUNCTION, AND CONFORMITY paragraphs to delete references to an expired Executive Order; and (2) to amend Sections 1, 6, 7, 8, 12, 15, 16, 17, 18, 19, 20, 21, 27, 28, 29, and 30 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 Inspector General: Health Services and Facilities
902 KAR 20:091. Facilities specifications, operation and services; community mental health center. Steve Davis, deputy inspector general, Zach Ramsey, division director, and Dave Sallengs, branch manager, represented the office.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 1, 5, and 6 to update citations; and (2) to amend Sections 3 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 Health: Controlled Substances
902 KAR 55:110. Monitoring system for prescription controlled substances. A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to delete 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 2(1) to reference statutory exceptions to reporting dispensed controlled substances; (4) to amend Sections 4(2) and 6 to include the correct forms and website to be used for requests for KASPER reports; and (5) to amend Sections 1, 2, 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 amendments were approved.
Office of Inspector General
906 KAR 1:110. Critical access hospital services. 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 4 to delete the phrase "on a twenty-four (24) hour basis" from certain hospital service requirements to avoid conflict with KRS 216.380(5)(b); and (3) to amend 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.
Department for Medicaid Services: Medicaid Services
907 KAR 1:019 & E. Outpatient Pharmacy Program. Stuart Owen, regulation coordinator, represented the department.
In response to questions by Representative Lee, Mr. Owen stated that he believed that prescription drugs used for smoking cessation purposes were excluded from coverage in compliance with federal requirements. He agreed to check on the reasons for that existing exclusion and inform the subcommittee.
In response to questions by Co-Chair Pullin, Mr. Owen stated that the department encouraged pharmacists to communicate with the prescribing physicians regarding the prescriptions. However, Kentucky law did not mandate that physicians indicate the underlying medical diagnosis on a prescription. The department would audit a pharmacy that showed a continued pattern of excessive and inappropriate overrides to the four-prescription limit.
In response to a question by Representative Reinhardt, Mr. Owen stated that he did not know if indicating an underlying medical condition on a prescription form would violate patient rights under federal privacy laws.
In response to a question by Representative Lee, Mr. Owen stated that the department was working to educate individual pharmacies about the procedures relating to the outpatient pharmacy program and had not taken punitive action against a pharmacist for violating the four-prescription limit.
A motion was made and seconded to approve the following amendments: (1) to amend Section 3 to clearly establish the exceptions to the four prescription limit; and (2) to amend Sections 1 to 5 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.
907 KAR 1:022. Nursing facility services and intermediate care facility for individuals with mental retardation or a developmental disability services.
Department for Mental Health and Mental Retardation Services: Division of Administration and Financial Management: Institutional Care.
908 KAR 3:060. "Means test" pursuant to the "Patient Liability Act of 1978". Linda Harney, deputy commissioner, and Glenn Bryant, assistant director, represented the department.
In response to questions by Representative Reinhardt, Mr. Bryant stated that this amended administrative regulation increased the amount of deductions allowed in accordance with the federal poverty guidelines and would decrease the amount of money persons had to pay for services at a facility under this program.
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 the NECESSITY, FUNCTION, AND CONFORMITY paragraphs and Sections 2, 3, 4, and 7 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 Community Based Services: Division of Policy Development: Food Stamp Program
921 KAR 3:060. Administrative disqualification hearings and penalties. Elizabeth Caywood, assistant director, and David Gayle, regulations coordinator, represented the department.
A motion was made and seconded to approve the following amendment: to amend Section 6(1) to delete the phrase “and benefit level” to comply with federal law. 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 1:040 & E. Waiver of penalties.
Income Tax; General Administration
103 KAR 15:020 & E. Election to pay share of tax on behalf of corporation.
103 KAR 15:140 & E. Biodiesel tax credit.
Income Tax; Corporations
103 KAR 16:220 & E. Alternative minimum calculation. Gary Morris, executive director, Laura Ferguson, general counsel, and Eddie Mattingly, legislative liaison, represented the department.
In response to questions by Representative Bruce and Co-Chair Pullin, Ms. Ferguson and Mr. Morris stated that the department would agree to defer this administrative regulation due to the impending special session that might affect its provisions. The emergency administrative regulation would remain in effect until September 9, 2006.
Upon motion by Senator Kerr, seconded by Senator Pendleton, the subcommittee agreed to defer consideration of this administrative regulation.
GENERAL GOVERNMENT CABINET: State Board of Accountancy: Board
201 KAR 1:015. Meetings.
201 KAR 1:050. License application.
201 KAR 1:190. Computer-based examination sections, applications, and procedures.
Real Estate Commission: Commission
201 KAR 11:011 & E. Definitions for 201 KAR Chapter 11.
201 KAR 11:121 & E. Improper conduct.
Board of Chiropractic Examiners: Board
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.
Board of Physical Therapy: Board
201 KAR 22:045. Continued competency requirements and procedures.
201 KAR 22:070. Requirements for foreign-educated physical therapists.
JUSTICE AND PUBLIC SAFETY CABINET: Department of Juvenile Justice: Child Welfare
505 KAR 1:101E. Department of Juvenile Justice Scoring SOP.
EDUCATION CABINET: Kentucky Board of Education: Department of Education: Office of Instruction
704 KAR 3:305. Minimum requirements for high school graduation.
704 KAR 3:490. Teacher's Professional Growth Fund.
704 KAR 3:530. Mathematics Achievement Fund.
ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department of Public Protection: Office of Financial Institutions: Administration
808 KAR 1:050. Retention of records.
Kentucky Horse Racing Authority: Thoroughbred Racing
810 KAR 1:080. International wagering hubs.
The subcommittee adjourned at 11:15 a.m. until July 11, 2006 at 10 a.m. in room 149 Capitol Annex.