The February 2010 meeting of the Administrative Regulation Review Subcommittee was held on Monday, February 8, 2010, at 1:00 PM, in Room 149 of the Capitol Annex. Senator Elizabeth Tori, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Elizabeth Tori, Co-Chair; Representative Leslie Combs, Co-Chair; Senators David Givens, Alice Forgy Kerr, and Joey Pendleton; Representatives Robert R. Damron, Danny Ford, and Jimmie Lee.
Guests: Diana Barber, Becky Gilpatrick, Kentucky Higher Education Assistance Authority; Dennis Taulbee, Council on Postsecondary Education; Kathryn Gabhart, State Board of Elections; Dinah Bevington, Personnel Cabinet; Tom Crawford, Greg Jennings, Department of Revenue; DeVon Hankins, Mark Johnson, Gary Morris, Bruce Nix, Don Richardson, Department of Revenue; Tony Barrett, Jane Gardner, Scott Hannah, State Board of Landscape Architects; Mark Brengelman, Becky Klusch, Board of Physical Therapy; Angela Evans, Stephanie Head, Frances Short, Board of Marriage and Family Therapists; Ron Brooks, Benjy Kinman, Catherine York, Kentucky Department of Fish and Wildlife Resources; Amy Barker, James VanNort, Department of Corrections; Ann Dangelo, Godwin Onodu, Todd Shipp, Transportation Cabinet; Kevin Brown, Ronald Flora, Denise Hagan, Mark Johnson, Kentucky Department of Education; Charlene Davis, Clay Lamb, Terry Manuel, Beth Milburn, Wayne Onkst, Barbara Teague, Kentucky Department for Libraries and Archives; Tom Howard, Jeff Mosely, Rob Ramsey, Bob Tarvin, Finance and Administration Cabinet; Bob Elkins, Kristi Redmon, Labor Cabinet; Dawn Bellis, Tim House, George Mann, Richard Moloney, Melissa Smith, Department of Housing, Buildings and Construction; Shirley Eldridge, Tonia Wells, Mary Sparrow, Steven Veno, Virginia Carrington, Elizabeth Caywood, Cabinet for Health and Family Services; Virginia T. Hillis, Fred Roser, Robert Fleenor, Bill Gibson, Russ Sanders, Harry Gibson, John Knight, Frank Henn Jr., Barry Edwards, Hank Hancock, Jack Reckner, Tom Underwood, Corey Roblee, Lewis Abbott, Wesley Abbott, Ralph Cornelius, Michael Doolin, Billy Slone, Bobby Mills, Roy Cornelius, Chad Cartwright, Susan Snipes, Charles Moore, Arthur Ellis, Billy Caudill, Don Blevins, Randy Vanhook.
LRC Staff: Dave Nicholas, Donna Little, Sarah Amburgey, Chad Collins, Emily Harkenrider, Karen Howard, Emily Caudill, Jennifer Beeler, and Laura Napier.
The Administrative Regulation Review Subcommittee met on Monday, February 8, 2010, and submits this report:
Administrative Regulations Reviewed by the Subcommittee:
KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY: Division of Student and Administrative Services: KHEAA Grant Programs
11 KAR 8:030. Teacher scholarships. Diana Barber, general counsel, and Becky Gilpatrick, Student Aid Branch Manager, represented the authority.
A motion was made and seconded to approve the following amendments: to amend Sections 5, 6, and 12 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
COUNCIL ON POSTSECONDARY EDUCATION: Public Educational Institutions
13 KAR 2:045 & E. Determination of residency status for admission and tuition assessment purposes. Dennis Taulbee, general counsel, represented the council.
In response to questions by Representative Damron, Mr. Taulbee stated that an armed forces, active-duty member or member's spouse who qualified as a home-of-record Kentucky resident for tax purposes also qualified as a Kentucky resident for purposes of online or correspondence courses.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 8, 10, 12, and 14 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 STATE BOARD OF ELECTIONS: Board
31 KAR 4:020. Election costs and county clerk reimbursement form. Kathryn Gabhart, 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, as required by KRS 13A.220; and (2) to amend Section 1 to clarify requirements pertaining to the reimbursement form. Without objection, and with agreement of the agency, the amendments were approved.
31 KAR 4:030. Reporting forms.
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 Section 1 to clarify who is required to file the forms incorporated by reference; and (3) to amend Section 2 to revise material incorporated by reference. Without objection, and with agreement of the agency, the amendments were approved.
PERSONNEL CABINET: Personnel Cabinet, Classified
101 KAR 2:120. Incentive programs. Dinah Bevington, general counsel, represented the cabinet.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 1 through 3 to comply with the drafting and format requirements of KRS Chapter 13A; and (2) to amend Section 2 to update two (2) forms incorporated by reference. Without objection, and with agreement of the agency, the amendments were approved.
FINANCE AND ADMINISTRATION CABINET: Department of Revenue: Office of Property Valuation: Ad Valorem Tax; Administration
103 KAR 5:190 & E. State registration requirements and application process for purchasing certificates of delinquency; fees; and definitions for related entities and related interest. Tom Crawford, staff advisor, and Greg Jennings, staff attorney, represented the department.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 8 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with the agreement of the agency, the amendments were approved.
Office of Income Taxation: Income Tax; General Administration
103 KAR 15:110. Ethanol tax credit. Bruce Nix, policy advisor, and Don Richardson, executive director, represented the office.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 through 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.
103 KAR 15:120. Cellulosic ethanol tax credit.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 through 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.
103 KAR 15:140. Biodiesel tax credit.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 through 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.
Division of Individual Income Tax: Income Tax; Withholding
103 KAR 18:110. Withholding methods. Bruce Nix, policy advisor, and Don Richardson, executive director, represented the division.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 through 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.
GENERAL GOVERNMENT CABINET: Board of Physical Therapy: Board
201 KAR 22:053. Code of ethical standards and standards of practice for physical therapists and physical therapist assistants. Mark Brengelman, assistant attorney general, and Becky Klusch, executive director, represented the board.
A motion was made and seconded to approve the following amendments: to amend Sections 2 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.
Board of Licensure for Marriage and Family Therapists: Board
201 KAR 32:035. Supervision of marriage and family therapist associates. Angela Evans, board counsel; Stephanie Head, board co-chair; and Frances Short, Executive Director, Office of Occupations and Professions, represented the board.
A motion was made and seconded to approve the following amendments: to amend Sections 1, 2, 6, 7, and 8 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
TOURISM, ARTS AND HERITAGE CABINET: Department of Fish and Wildlife Resources: Fish
301 KAR 1:016. Use of lands and waters on lakes owned or controlled by the department. Benjy Kinman, deputy commissioner, and Catherine York, deputy general counsel, represented the department. Virginia T. Hillis, Lake Malone resident, appeared in support of this administrative regulation.
Senator Pendleton and Senator Kerr thanked the department for cooperating with stakeholders to develop this administrative regulation.
In response to a question by Senator Pendleton, Mr. Kinman stated that a new boat dock development would begin the process with a public hearing.
Ms. Hillis thanked the Department of Fish and Wildlife Resources for cooperating with stakeholders to develop this administrative regulation. She stated that she preferred for future policy to require public input for commercial docks.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 1, 4, and 5 to change July 1, 2009 dates to the “effective date of this administrative regulation”; (2) to amend Section 1 to define the term “rebuild”; (3) to amend Section 4 to prohibit additional community boat docks not approved as of January 1, 2010; (4) to amend Section 5(10) and (11) to exempt existing land owners from having to meet new access structure requirements; (5) to amend Section 5(14) to allow non-access structures to be kept if the landowner maintained a valid shoreline use permit; (6) to amend Section 7(4) to delete the waiver provisions for rebuilding; (7) to amend Section 8(1)(a)2. to delete “boat dock walkway” from the list of items that cannot be renovated without department approval; (8) to amend Section 9 to provide for an amended application; and (9) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 5 through 8 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with the agreement of the agency, the amendments were approved.
Hunting and Fishing
301 KAR 3:022. License, tag, and permit fees.
JUSTICE AND PUBLIC SAFETY CABINET: Department of Corrections: Sex Offender Risk Assessment Advisory Board
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 Dr. James VanNort, board chair, represented the board.
A motion was made and seconded to approve the following amendments: to amend Sections 3, 5, 7, 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 amendments were approved.
EDUCATION CABINET: Kentucky Board of Education: Department of Education: Food Service Programs
702 KAR 6:100. Appeal procedures for nutrition and health services programs. Kevin Brown, general counsel, and Denise Hagan, director, represented the department.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph and Section 4 to correct 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.
EDUCATION AND WORKFORCE DEVELOPMENT CABINET: Department for Libraries and Archives: Public Records Division: Archives
725 KAR 1:020. Recording and reproducing public records. Clay Lamb, staff attorney, and Wayne Onkst, State Librarian and commissioner, represented the division.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 Section 7 to reflect the new publication dates of material incorporated by reference contained in this administrative regulation; and (4) to amend Sections 1 through 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.
725 KAR 1:025. Transfer of public records.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 Section 6 to reflect the new publication dates of material incorporated by reference contained in this administrative regulation; and (4) to amend Sections 1 through 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.
Libraries
725 KAR 2:060. Certification of public librarians. Clay Lamb, staff attorney, and Wayne Onkst, State Librarian and commissioner, represented the division.
In response to a question by Representative Ford, Mr. Onkst stated that there were approximately 1,400 librarians and that one (1) certificate would be eliminated, but that those librarians already operating under that certificate would be "grandfathered" in.
In response to a question by Senator Givens, Mr. Onkst stated that the five (5) dollar fee had been established in 1942 and had not changed since. He stated that the new fifteen (15) dollar fee was for a scholarship fund for a librarian to work in a public library and that the fee would be due once each five (5) years.
725 KAR 2:070. Certification renewal of public librarians.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct 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 Section 8 to reflect the new publication dates of material incorporated by reference contained in this administrative regulation; and (4) to amend Sections 1 through 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.
FINANCE AND ADMINISTRATION CABINET: Office of the Secretary: Procedures
750 KAR 1:010 & E. Commission procedures. Tom Howard, executive director; Bob Tarvin, policy analyst; and Jeff Moseley, general counsel, represented the office.
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 Sections 7, 10, and 11 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
LABOR CABINET: Department of Workplace Standards: Division of Occupational Safety and Health Compliance: Occupational Safety and Health
803 KAR 2:300. General. Bob Elkins, safety standards specialist, and Kristie Redmon, safety standards specialist, represented the division.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to add a statutory citation; 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.
803 KAR 2:307. Hazardous materials.
A motion was made and seconded to approve the following amendments: 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.
PUBLIC PROTECTION CABINET: Department of Housing, Buildings and Construction: Division of Building Code Enforcement: Kentucky Building Code
815 KAR 7:125. Kentucky Residential Code. Dawn Bellis, general counsel; George Mann, deputy commissioner; and Richard Moloney, commissioner, represented the division.
Division of Plumbing: Plumbing
815 KAR 20:055. Water heater devices. Dawn Bellis, general counsel; Tim House, Director of the Division of Plumbing; and Richard Moloney, commissioner, represented the division.
A motion was made and seconded to approve the following amendments: (1) to amend the STATUTORY AUTHORITY paragraph to correct citations; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
CABINET FOR HEALTH AND FAMILY SERVICES: Department for Aging and Independent Living: Division of Operations Support: Brain Injury
910 KAR 3:030. Traumatic brain injury trust fund operations program. Shirley Eldridge, regulation coordinator, and Tonia Wells, program director, represented the division.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to correct a citation; (2) to amend Sections 14 and 15 for clarification; and (3) to amend Sections 1 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 Income Support: Child Support Enforcement: Child Support
921 KAR 1:380. Child support enforcement program application and interstate process. Mary W. Sparrow, supervisor, and Steven P. Veno, deputy commissioner, represented the department.
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 Section 3 to comply with the 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 Family Support: K-TAP, Kentucky Works, Welfare to Work, State Supplementation
921 KAR 2:055. Hearings and appeals. Virginia Carrington, branch manager, and Elizabeth Caywood, internal policy analyst, represented the division.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 1 and 13 for clarification; (2) to amend Section 15 to specify when new evidence or exhibits may be submitted to the appeal board; (3) 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 (4) to amend Sections 3, 4, 7, and 14 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 March 8, 2010, meeting of the Subcommittee:
FINANCE AND ADMINISTRATION CABINET: Office of the Secretary: Purchasing
200 KAR 5:314. Disclosure of contractor's financial records and information to certain governmental entities.
200 KAR 5:315. Suspension.
GENERAL GOVERNMENT CABINET: State Board of Examiners and Registration of Landscape Architects: Board
201 KAR 10:050. Fees. Tony Barrett, secretary - treasurer, and Scott Hannah, President of the Kentucky Society of Landscape Architects, represented the board.
A motion was made and seconded to approve the following amendments: (1) to amend Section 1(3) to clarify that the original license fee shall be paid by all licensees; and (2) to amend Section 1(4) to reduce the reciprocal license fee from $250 to $200. Without objection, and with agreement of the agency, the amendments were approved.
In response to a question by Co-Chair Tori, Mr. Barrett stated that the board agreed to defer consideration of this administrative regulation. Without objection, and with agreement of the agency, this administrative regulation was deferred to the March 8, 2010 meeting of the Subcommittee.
Kentucky Real Estate Commission: Commission
201 KAR 11:190. Disciplinary proceedings.
Board of Podiatry: Board
201 KAR 25:012 & E. Licensing examinations.
Board of Licensed Professional Counselors: Board
201 KAR 36:060. Qualifying experience under supervision.
TOURISM, ARTS AND HERITAGE CABINET: Department of Fish and Wildlife Resources: Game
301 KAR 2:142. Spring wild turkey hunting.
ENERGY AND ENVIRONMENT CABINET: Department for Environmental Protection: Division of Waste Management: Solid Waste Facilities
401 KAR 47:090. Solid waste permit fees.
Department for Natural Resources: Division of Mine Permits: Permits
405 KAR 8:015 & E. Processing assessments.
TRANSPORTATION CABINET: Department of Vehicle Regulation: Division of Motor Vehicle Licensing: Division of Motor Carriers
601 KAR 1:220. Theft of motor fuel; procedures to obtain motor vehicle record. Ann DAngelo, assistant general counsel; Godwin Onodu, assistant director; and Todd Shipp, special assistant, represented the division.
In response to a question by Co-Chair Tori, Mr. Shipp stated that the department had not yet received any requests for personal information following the theft of motor fuel. Ms. DAngelo stated that it was difficult to anticipate if requests would be made for the personal information. Mr. Shipp stated that the fee increase was estimated based on the costs charged by surrounding states and average costs to produce reports. He stated that the division expected the cost of the fee to be subject to restitution from the motor fuel theft offender.
In response to questions by Representative Ford, Mr. Shipp stated that the report would contain the information for the registered owner of a vehicle based on the license number of the vehicle allegedly involved in the motor fuel theft. He stated that the information was not expected to assist in matters of previous motor fuel theft violations.
In response to questions by Co-Chair Tori, Mr. Onodu stated that there had not been requests for personal information after theft of motor fuel but that there had been commercial requests for opens records, into which category the motor fuel theft report fell. Mr. Shipp stated that the average size of a commercial open records request was fifty two (52) to 150 pages of documents. Mr. Godwin stated that, in the past, the two (2) dollar processing fee had not been based on the actual costs of processing the reports.
In response to a question by Representative Ford, Mr. Shipp agreed to consider if a ten (10) dollar fee for a report that costs, on average, eighty-eight (88) dollars to prepare was reasonable.
A motion was made and seconded to approve the following amendments: (1) to amend the title to make technical changes for consistency with other administrative regulations; and (2) to amend the STATUTORY AUTHORITY and NECESSITY, FUNCTION, AND CONFORMITY paragraphs to correct a statutory citation. Without objection, and with agreement of the agency, the amendments were approved.
Co-Chair Tori asked if the division would defer consideration of this administrative regulation in order to consider the appropriate fee amount and to ensure that the statutory requirements were met. Mr. Shipp stated that the division agreed to the deferral. Without objection, and with agreement of the agency, this administrative regulation was deferred to the March 8, 2010 meeting.
Department of Vehicle Regulation: Division of Drivers License: Driver's License
601 KAR 12:060. Hardship driver's license.
PUBLIC PROTECTION CABINET: Kentucky Horse Racing Commission: Division of Licensing: Thoroughbreds
810 KAR 1:025 & E. Licensing thoroughbred racing.
810 KAR 1:034 & E. Licensing of racing association.
Harness Racing
811 KAR 1:034 & E. Licensing of racing associations.
PUBLIC PROTECTION CABINET: Department of Housing, Buildings and Construction: Division of Building Code Enforcement: Kentucky Building Code
815 KAR 7:120 & E. Kentucky Building Code. Dawn Bellis, general counsel; George Mann, deputy commissioner; and Richard Moloney, commissioner, represented the division. Corey Roblee, representative of the International Code Council, and Tom Underwood, Executive Director of the Kentucky Fire Sprinkler Contractors' Association, appeared in opposition to this administrative regulation.
Mr. Underwood stated that the fee increase would be a burden to the industry. He also stated that he made comments during the public comment period but had not received a timely copy of the division's Statement of Consideration. He requested that the administrative regulation be deferred to the March meeting of the Subcommittee so that he had time to review the Statement of Consideration.
In response to a question by Co-Chair Combs, Mr. Roblee stated that those who would be responsible for enforcing the gas code were opposed to the code change.
Ms. Bellis stated that all comments that were received during the public comment period were included in the Statement of Consideration. She stated that there was not a "speed review" in place for sprinkler projects.
Mr. Mann stated that the fee increase was reviewed and approved unanimously by the Board of Housing.
In response to questions by Representative Lee, Mr. Moloney stated that it was mandatory that the division increase the staffing level in order to prevent a backlog of permitting. He stated that, with the fee increase, the program was expected to break even by the end of the year and that, without the fee increase, the permitting process would slow down significantly. He also stated that, with the fee increase even if the economy improved and construction returned to stronger levels, the agency would be able to maintain the ten (10) to fifteen (15) day turn-around time for processing permits.
In response to questions by Senator Givens, Mr. Underwood stated that the fee increase disproportionately affected small sprinkler installations. He preferred a staggered approach to the fees with smaller jobs having smaller fee increase increments.
In response to a question by Co-Chair Combs, Mr. Mann stated that the division would consider staggering the fee schedule so that smaller jobs would have smaller fee increase increments. Mr. Moloney also agreed to consider such an amendment.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and 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. In response to a request by Representative Damron, Mr. Moloney stated that the division agreed to defer consideration of this administrative regulation. Without objection, and with agreement of the agency, this administrative regulation was deferred to the March 8, 2010 meeting.
Division of Plumbing: Plumbing
815 KAR 20:050 & E. Installation permits. Dawn Bellis, general counsel; George Mann, deputy commissioner; Richard Moloney, commissioner; and Melissa Smith, acting director of budgets, represented the division. Harry P. Gibson, owner of Harry P. Gibson and Company, appeared in support of this administrative regulation. Frank Henn, Jr., plumber and President of the Kentucky Association of Plumbers and Housing Construction Contractors, appeared in opposition to this administrative regulation.
In response to questions by Co-Chair Tori, Mr. House stated that the Division of Plumbing needed a fee increase in order to keep the division solvent and to maintain a reasonable permit-processing turn-around time. He stated that the bulk of the plumbing industry supported the fee increase.
Representative Lee stated that fee increases to compensate for budget shortfalls was unacceptable.
In response to a question by Representative Ford, Mr. House stated that, without the fee increase, twenty-six (26) division employees would be laid off and the permit processing turn-around time may increase by six (6) to eight (8) weeks. Mr. House stated that inspections would also be delayed and opportunities for the licensing examinations would have to be significantly truncated.
In response to a question by Senator Givens, Mr. House stated that excess funds swept into the General Fund would have to be reallocated through General Fund appropriations in order to be transferred within the department. Mr. Moloney stated that the Division of Plumbing funds were not swept in 2009. Ms. Smith stated that the 2009 budget bill required funds transferred within the department to be repaid to the original division at the end of the biennium.
Mr. Gibson stated that, because of better enforcement and more timely inspection and permit processing turn-around times, he would rather pay the increased fees than lose services.
In response to a question by Representative Lee, Mr. Gibson stated that he would pass the added fee expenses on to the final customer.
In response to a question by Co-Chair Tori, Mr. Gibson stated that the monetary savings of not raising the fee would not adequately provide for the protection of the public.
Mr. Henn stated that a fee increase during a slow economy would be difficult in the context of an already shrinking market share. He stated that more customers would probably have plumbing work performed without having the work properly inspected because of the fee increases that would be passed on to the final customer.
In response to a question by Senator Givens, Mr. Henn stated that the fee increases would create an uneven playing field.
In response to a question by Mr. House, staff noted that an emergency administrative regulation stayed in effect until it expired, was withdrawn, or the ordinary administrative regulation filed to replace it was withdrawn or became effective.
In response to a question by Senator Pendleton, there was a show of hands from plumbers in the audience regarding the proposed fee increases. More hands were raised in support of the fee increases than hands raised in opposition to the fee increases by approximately a three (3) to one (1) ratio, respectively.
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 citations; 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.
In response to a request by Senator Givens, Mr. Moloney stated that the division agreed to defer consideration of this administrative regulation until more direction was available regarding budget expectations. Without objection, and with agreement of the agency, this administrative regulation was deferred to the March 8, 2010 meeting.
The subcommittee adjourned the meeting at 3:10 p.m. until March 8, 2010.