Call to Order and Roll Call
The August meeting of the Administrative Regulation Review Subcommittee was held on Monday, August 5, 2013, at 1:00 PM, in Room 149 of the Capitol Annex. Senator Ernie Harris, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Ernie Harris, Co-Chair; Senators Joe Bowen, Perry B. Clark, and Sara Beth Gregory; Representatives Jimmie Lee and Tommy Turner.
Guests: Becky Gilpatrick, Kentucky Higher Education Assistance Authority; C. Lloyd Vest II, Board of Medical Licensure; Mark Brengelman, Board of Physical Therapy; Jim Grawe, Tom Veit, Kentucky Real Estate Appraisers Board; James C. Cobb, Gil Crumbee, Brian Judy, Larry Rhodes, Stephen Wyatt, Board of Registration for Professional Geologists; Stephen Foreman, Ryan Halloran, Applied Behavior Analysis Licensing Board; Margaret Everson, Dan Figert, Benjy Kinman, Kentucky Department of Fish and Wildlife; Ann D'Angelo, Randall Royer; Transportation Cabinet; Mike Pettit, Kristi Redmon, Labor Cabinet; Trey Hieneman, Frederick A. Higdon, Department of Alcoholic Beverage Control; Jack Coleman, Michael T. Davis, Gary Feck, Department of Housing, Buildings and Construction; Mary Begley, Stephanie Brammer-Barnes, Sarah McCoun, Elizabeth Caywood, Mark Cornett, Michelle DeJohn, Mary Beth Jackson, Teresa C. James, Dionna Mullins, Emily Parento, Cabinet for Health and Family Services; Andrea Bennett, Kentucky Youth Advocates; Brenda Bowman, Southside Christian Child Care; Marion Gibson, Fayette County Race, Community and Child Welfare; Mike Hammons, Children, Inc.; Richard Morris, Child Care Advocates of Kentucky and Licensed Centers; Julie Swindler, Consultant for Kentucky Board of Medical Licensure; Sarah Vessels, Child Care.
LRC Staff: Donna Little, Emily Caudill, Sarah Amburgey, Emily Harkenrider, Karen Howard, Laura Napier, and Betsy Cupp.
The Administrative Regulation Review Subcommittee met on Monday, August 5, 2013, and submits this report:
Administrative Regulations Reviewed by the Subcommittee:
KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY: Division of Student and Administrative Services: Kentucky Loan Program
11 KAR 3:100. Administrative wage garnishment. Becky Gilpatrick, director, student aid services, represented the division.
KHEAA Grant Programs
11 KAR 5:001. Definitions pertaining to 11 KAR Chapter 5.
A motion was made and seconded to approve the following amendment: to amend Section 1(23) to insert a missing phrase in the definition of “resident of Kentucky” to comply with the drafting requirements of KRS 13A.222(4)(a). Without objection, and with agreement of the agency, the amendment was approved.
11 KAR 5:140. KTG award determination procedure.
11 KAR 5:145. CAP grant award determination procedure.
Teacher Scholarship Loan Program
11 KAR 8:030. Teacher scholarships.
A motion was made and seconded to approve the following amendments: to amend Section 1(13) to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Commonwealth Merit Scholarship Program
11 KAR 15:040. Kentucky Educational Excellence Scholarship award determination procedure.
A motion was made and seconded to approve the following amendments: to amend Section 1(2) to comply with the drafting requirements of KRS 13A.222(4)(j). Without objection, and with agreement of the agency, the amendments were approved.
11 KAR 15:090. Kentucky Educational Excellence Scholarship (KEES) program.
Early Childhood Development Scholarship Program
11 KAR 16:001. Definitions for 11 KAR Chapter 16.
11 KAR 16:010. Early Childhood Development Scholarship Program applicant selection process.
11 KAR 16:040. Early Childhood Development Scholarship Program recordkeeping requirements.
11 KAR 16:050. Early Childhood Development Scholarship Program costs.
11 KAR 16:060. Early Childhood Development Scholarship Program system of monetary incentives.
GENERAL GOVERNMENT CABINET: Board of Physical Therapy: Board
201 KAR 22:045. Continued competency requirements and procedures. Mark Brengelman, board counsel, represented the board.
A motion was made and seconded to approve the following amendments: to amend the RELATES TO paragraph and Sections 1 and 2 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 22:055E. Interim standards for supervision for physical therapists.
201 KAR 22:130. Per diem of board members.
Real Estate Appraisers Board: Board
201 KAR 30:120. Temporary appraisal licenses and certificates. James Grawe, assistant attorney general, and Tom Veit, executive assistant, represented the board.
In response to a question by Senator Bowen, Mr. Veit stated that the fee increase in this administrative regulation was commensurate with similar fees in surrounding states.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 5 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 30:125. Continuing education for appraisers.
A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 3 to comply with the drafting and formatting requirements of KRS Chapter 13A; (2) to add Section 4 to incorporate by reference the application; and (3) to amend Section 1 to establish a $200 late fee. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 30:150. Education provider approval.
A motion was made and seconded to approve the following amendments: to amend Sections 2 and 3 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 30:200. Reciprocity requirements for applicants licensed or certified in another state.
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, 2, and 4 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Board of Registration for Professional Geologists: Board
201 KAR 31:010. Fees. Brian Judy, assistant attorney general, and Larry Rhodes, chair, represented the board.
In response to a question by Senator Bowen, Mr. Judy stated that the authorizing statute changed the fee schedule from annually to biennially for these licenses; therefore, the fees were not actually doubling but appeared to double because fees that previously covered twelve months now covered twenty-four months.
A motion was made and seconded to approve the following amendments: (1) to delete Section 3, which proposed an initial licensure fee; and (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, and 4 to clarify provisions and to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 31:020. Compensation of board members.
201 KAR 31:040. Applications and examinations.
A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 3 to comply with the drafting and formatting requirements of KRS Chapter 13A; and (2) to amend Section 4 and the material incorporated by reference to make technical corrections. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 31:050. Renewals.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 3 and 4 for consistency with statutory terminology; and (2) to amend Section 5 and the material incorporated by reference to make technical corrections. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 31:060. Code of professional conduct.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 2, 3, 5, and 6 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 31:080. Geologist-in-training.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO and NECESSITY, FUNCTION, AND CONFORMITY paragraphs to update statutory citations; and (2) to amend Section 5 and the material incorporated by reference to make technical corrections. Without objection, and with agreement of the agency, the amendments were approved.
201 KAR 31:090. Complaint management process.
A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 1 to delete references to "applicant" because those provisions did not apply to an applicant; and (2) to amend Sections 1 and 4 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Applied Behavior Analysis Licensing Board: Board
201 KAR 43:010. Application procedures for licensure. Stephen Foreman, vice chair, and Ryan Halloran, assistant attorney general, represented the board.
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 through 3 to comply with the drafting 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: Game
301 KAR 2:251. Hunting and trapping seasons and limits for furbearers. Margaret Everson, assistant attorney general; Dan Flaggert, assistant director of wildlife; and Benjy Kinman, deputy commissioner, represented the department.
In response to a question by Co-Chair Harris, Mr. Kinman stated that a rifle may be used to take a coyote during daylight hours, but only a shotgun could be used at night.
A motion was made and seconded to approve the following amendments: to amend Sections 1, 3, and 5 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
TRANSPORTATION CABINET: Office of Audits: Division of Road Fund Audits: Motor Carriers
601 KAR 1:147. Auditing of U-drive-it permit holders. Ann D’Angelo, assistant general counsel, and Randall Royer, director, represented the division.
LABOR CABINET: Department of Workplace Standards: Division of Occupational Safety and Health Compliance: Division of Occupational Safety and Health Education and Training: Occupational Safety and Health
803 KAR 2:300. General. Mike Pettit, OSH standards specialist, and Kristi Redmon, OSH standards specialist, represented the division.
In response to questions by Senator Bowen, Ms. Redmon stated that these administrative regulations made minor technical revisions to correspond to federal revisions. For example, personal protective equipment standards now established the option to use current standards or the previous standards, which provided more flexibility for the regulated community. These administrative regulations did not contain new compliance requirements.
803 KAR 2:307. Hazardous materials.
A motion was made and seconded to approve the following amendment: to amend Section 2 to correct a citation. Without objection, and with agreement of the agency, the amendment was approved.
803 KAR 2:308. Personal protective equipment.
803 KAR 2:314. Machinery and machine guarding.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Section 3 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
803 KAR 2:320. Toxic and hazardous substances.
803 KAR 2:400. Adoption of 29 C.F.R. 1926.1-6.
803 KAR 2:403. Occupational health and environmental controls.
803 KAR 2:404. Personal protective and lifesaving equipment.
803 KAR 2:407. Adoption of 29 C.F.R. Part 1926.250-252.
A motion was made and seconded to approve the following amendment: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
803 KAR 2:411. Scaffolds.
803 KAR 2:418. Underground construction, caissons, cofferdams, and compressed air.
803 KAR 2:419. Adoption of 29 C.F.R. Part 1926.850-860.
A motion was made and seconded to approve the following amendment: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.
803 KAR 2:425. Toxic and hazardous substances.
803 KAR 2:500. Maritime employment.
PUBLIC PROTECTION CABINET: Department of Alcoholic Beverage Control: Licensing
804 KAR 4:031. Repeal of 804 KAR 4:020, 804 KAR 4:030, 804 KAR 4:130, 804 KAR 4:140, 804 KAR 4:160, 804 KAR 4:170, 804 KAR 4:180, 804 KAR 4:200, 804 KAR 4:220, and 804 KAR 4:260. Trey Hieneman, legislative liaison, and Frederick A. Higdon, commissioner, represented the department.
804 KAR 4:250. Special temporary licenses.
A motion was made and seconded to approve the following amendments: to amend Sections 2, 4, and 5 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
804 KAR 4:390 & E. License renewals.
804 KAR 4:430E. Issuance of Licenses.
Transportation of Alcoholic Beverages
804 KAR 8:011. Repeal of 804 KAR 8:010, 804 KAR 8:020, and 804 KAR 8:030.
Quotas
804 KAR 9:010. Quota retail license limits.
Department of Housing, Buildings, and Construction: Division of Building Code Enforcement: Kentucky Building Code
815 KAR 7:125. Kentucky Residential Code. Jack Coleman, deputy commissioner; Michael T. Davis, general counsel; and Gary Feck, director, represented the division.
In response to a question by Senator Bowen, Mr. Davis stated that the revisions to this administrative regulation were not substantial. Mr. Coleman stated that the division usually allowed a period of preparation prior to enforcement of revisions to the code. That period was inadvertently omitted, and this amendment provided for that preparation period. Mr. Feck stated that the International Model Residential Code included provisions for seismic maps; however maps were split within counties and were difficult to interpret. The amendment simplified seismic maps and provided more current standards.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 1 and 2 to comply with the drafting requirements of KRS Chapter 13A; and (2) to amend Section 3 to update the Kentucky Residential Code to establish that the new requirements shall not take effect until January 1, 2014. Without objection, and with agreement of the agency, the amendments were approved.
CABINET FOR HEALTH AND FAMILY SERVICES: Office of Health Policy: Certificate of Need
900 KAR 6:030. Certificate of Need expenditure minimums. Diona Mullins, policy advisor, and Emily Parento, executive director, represented the cabinet.
900 KAR 6:120. Certificate of Need angioplasty two (2) year trial program.
900 KAR 6:125. Certificate of Need annual surveys, and registration requirements for new Magnetic Resonance Imaging units.
A motion was made and seconded to approve the following amendments: to amend Sections 4 and 12 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Office of the Inspector General: Office
906 KAR 1:200. Use of Civil Money Penalty Funds collected from certified Long-term Care Facilities. Mary Begley, inspector general; Stephanie Brammer-Barnes, policy analyst; and Sarah McCoun, staff assistant, represented the cabinet.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to include an additional relevant citation; (2) to amend Section 1 to include additional relevant definitions; and (3) to amend Sections 3 and 9 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Department for Community Based Services: Child Welfare
922 KAR 1:130 & E. Kinship Care Program. Elizabeth Caywood, internal policy analyst; Mark Cornett, deputy commissioner; and Teresa C. James, commissioner, represented the cabinet. Andrea Bennett, chief external affairs officer, Kentucky Youth Advocates; Marion Gibson, co-chair, Fayette County Race, Community, and Child Welfare; and Patricia Tennen, member, Kentucky Youth Advocates, appeared in opposition to these administrative regulations.
Ms. James stated that the goal of the Kinship Care Program was to keep families together through extended family guardianship in cases of abuse or neglect while in the care of a parent or guardian. Under the basic program a guardian family was provided $350 per month for each child. The programmatic expenses were approximately $32,000,000 annually. The program currently experienced an $86,000,000 deficit. The program needed to be reorganized for efficiency to better meet the needs of families for less cost. The current programmatic changes were primarily for cost containment.
Mr. Cornett stated that these administrative regulations established a program moratorium, except that existing participants continued to be supported through the existing program and certain new participants would continue to be admitted. Requirements were established to continue background checks after April 1. Other programs and services outside of the Kinship Care Program remained available. Ms. James stated that many children would still be eligible for Medicaid assistance to maintain medical and dental care, and Social Security Insurance was issued in some cases.
In response to a question by Senator Bowen, Ms. James stated that as of June 1, 2013, there were 11,319 children who had experienced substantiated abuse or neglect and were in need of placement in the Kinship Care program. Ten years ago, there were approximately 3,000 children eligible for the program. That constituted a significant increase in substantiated cases of abuse or neglect.
In response to a question by Co-Chair Harris, Ms. James stated that the cabinet was considering means testing of placement guardians to determine the amount of support that would be appropriate. Mr. Cornett stated that the cabinet performed means testing on the eligible child, which included only the child’s income, such as Social Security Insurance, not the income of the placement guardian.
Representative Lee stated that children eligible for the Kinship Care Program already had court substantiation of abuse or neglect. There were many children who were not eligible for the Kinship Care Program because abuse or neglect had not been formally adjudicated. The Kinship Care Program needed to be reorganized to include these other children.
In response to a question by Senator Gregory, Ms. James stated that, while it was possible that the moratorium on the Kinship Care Program may funnel more children into the state’s foster care system, data collected since the moratorium began did not indicate that as a current trend. The cabinet was monitoring the situation on a regional and monthly basis.
Ms. Bennett stated that the Kinship Care Program was better for children and for families than the foster care system. Kentucky Youth Advocates anticipated more children being placed in the foster care system as a result of the Kinship Care Program moratorium. In addition to being better for children and families, the Kinship Care Program was less expensive for the state than the foster care system. Ms. Bennett requested that the subcommittee find these administrative regulations deficient.
Ms. Gibson stated that racial and ethnic disparity would be exacerbated by the moratorium on the Kinship Care Program. The foster care system was significantly more expensive per child per day than the Kinship Care Program. The Kinship Care Program provided stability for families and fewer school transfers. Children placed into the foster care system were more likely to fail, be incarcerated, and drop out of education opportunities.
Ms. Tennen stated that she agreed with the comments made by Ms. Bennett.
Representative Lee stated that he shared concerns about losing the Kinship Care Program, and the Governor also was concerned. Kentucky Youth Advocates and Fayette County Race, Community, and Child Welfare should remain involved in reorganizing the Kinship Care Program to include children not officially adjudicated as abused or neglected. Ms. Bennett stated that Kentucky Youth Advocates would like to work with the cabinet on reorganizing or reforming the Kinship Care Program. Representative Lee stated that statistical data was needed to assist in budgeting and effective administration of program funds.
In response to a question by Senator Bowen, Ms. Bennett stated that Kentucky Youth Advocates was supportive of programs to prevent abuse or neglect. Education for first-time parents had been shown to reduce the likelihood of abuse or neglect. Children in the Kinship Care Program had already experienced abuse or neglect and needed treatment and placement.
In response to a question by Representative Gooch, Ms. Tennen stated that Kentucky Youth Advocates did not have data on repeat maltreatment if children were returned to families after abuse or neglect. Ms. Bennett stated that the aim of the Kinship Care Program was to provide permanent placement with alternative relatives. Representative Gooch stated that the cabinet seemed overly eager to place children back into risky homes just to keep families together.
In response to a question by Senator Clark, Ms. Gibson stated that Fayette County Race, Community, and Child Welfare had national statistical data, but not Kentucky-specific data.
Ms. James stated that the cabinet had national and Kentucky-specific data, and the cabinet was beginning to track post-placement outcomes. In the past, federal funds had allowed the Kinship Care Program to continue, but now that federal funds were no longer available options were limited. Families were being adversely affected.
Representative Lee stated that, for both the Kinship Care Program and the foster care system, there were both good and bad placement families. More statistical data was needed in order for the cabinet to provide the most effective support with cost-efficiency measures. Ms. James stated that, as part of reorganizing the program, the cabinet was considering basing support on age because needs changed as a child aged. The cabinet was also considering auditing current participants.
A motion was made and seconded to approve the following amendments: to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 2, 3, 6, 8, 13, 17, and 20 to comply with the drafting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
922 KAR 1:140 & E. Foster care and adoption permanency services.
A motion was made and seconded to approve the following amendments: (1) to amend Sections 1, 6, and 11 to update citations; and (2) to amend Sections 1, 8, and 12 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
922 KAR 1:320 & E. Service appeals.
A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph and Sections 2 and 6 to update citations; and (2) to amend Sections 2, 3, and 9 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
922 KAR 1:400 & E. Supportive services.
A motion was made and seconded to approve the following amendments: to amend the RELATES TO paragraph and Sections 1, 2, 4, 11, and 12 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.
Division of Child Care: Day Care
922 KAR 2:020. Child Care Assistance Program (CCAP) improper payments, claims, and penalties. Elizabeth Caywood, internal policy analyst; Mark Cornett, deputy commissioner; and Teresa C. James, commissioner, represented the cabinet. Brenda Bowman, CEO, Southside Christian Child Care and Child Care Advocates of Kentucky; Mike Hammons, director of advocacy, Children, Inc; Richard Morris, owner, Child Care Advocates of Kentucky and eleven licensed centers; Susan Vessels, executive director, 4-C Child Care; and Andrea Bennett, chief external affairs officer, Kentucky Youth Advocates, appeared in opposition to these administrative regulations.
Ms. James stated that funding for child care was important and expensive. Because of funding problems, a moratorium was being placed on this program, except for existing participants. Existing participants would encounter stricter requirements upon renewal. Previously, requirements included meeting up to 150 percent of federal poverty standards. The new requirements required up to 100 percent of federal poverty standards. The other administrative regulations in this group provided for stricter precautions regarding fraud and abuse of funds.
Ms. Bowman requested that the subcommittee find these administrative regulations deficient. She represented six others who would be affected by these administrative regulations. A child care license may be revoked for financial or administrative issues, even paperwork mistakes, even if the licensee was appropriately complying with health and safety requirements. A revoked license shall not be reinstated for at least seven years. Fraud seemed inconsistently defined in these administrative regulations. Sometimes it seemed to indicate substantiated fraud and sometimes suspected. These administrative regulations had already been found unlawful by the Franklin County Circuit Court. Facilities were required to protect the confidentiality of the children being cared for; however, forms required by these administrative regulations made that impossible. Information for multiple children was to be on a single form.
Mr. Morris stated that the vast majority of compliant licensees should not be punished because of a minority who commit fraud and abuse of funds. These administrative regulations will have a negative impact on children and families. Employees could be terminated if a license was revoked because of a paperwork error. Many child care facilities had already closed or were closing.
Mr. Hammons stated that Child, Inc. served over 3,000 children. Mr. Hammons requested that the subcommittee find these administrative regulations deficient. At least one-third of the funding for this program was being cut; that was more than the amount of cuts to other state agencies. These administrative regulations would likely negatively affect more than 25,000 of Kentucky’s children. These measures would cost state and local government and would be detrimental to the economy. Parents who lose jobs because of inability to afford child care would have less money to spend, which would affect other businesses. Reduced staff at child care facilities because of fewer children would add to unemployment. The effect of these administrative regulations was likely to be children placed in unsafe situations and an increase in protective placements and associated expenses, including court costs. This program needed more funding not less. The requirement that renewing participants demonstrate less than 100 percent of the federal poverty standards resulted in Kentucky being the lowest qualifier in the nation. Child, Inc. was available to work with the cabinet to reorganize this program.
In response to a question by Co-Chair Harris, Mr. Hammons stated that the two primary issues with these administrative regulations were: (1) funding cuts; and (2) due process concerns, especially regarding suspected fraud. Co-Chair Harris stated that the General Assembly had authorized the governor to shift funds among programs as necessary.
Representative Lee stated that the funding was unavailable because federal funds were no longer available after sequestration. More cuts were expected. If the subcommittee found these administrative regulations deficient, the funding problems would continue. Mr. Hammons stated that the cabinet was aware of federal funding issues before sequestration. Providers had alternative savings ideas that were not addressed. Representative Lee stated that he and the cabinet would entertain alternative savings ideas, and these administrative regulations could be recalled by the subcommittee as necessary.
Senator Gregory stated that she hoped to address these funding issues during the upcoming budget session of the General Assembly. She was concerned about due process issues and the confidentiality of forms. Ms. Bowman stated that the confidentiality concern was easy to address; the form could be amended to contain information for a single child. Ms. Vessels stated that such an amendment would also reduce paperwork in the event of an audit.
Co-Chair Harris stated that budget concerns, while crucial, could not be addressed through the administrative regulation process. The remainder of the discussion regarding these administrative regulations should focus on the due process and confidentiality issues.
Ms. Caywood stated that many of the concerns regarding fraud were expressed during the public hearing and public comment period. The cabinet responded to those concerns in the STATEMENT OF CONSIDERATION. A new facility shall not be licensed and a license shall not be transferred to another owner during an investigation of fraud in order to protect the public and avoid investigatory complications. Only if fraud was substantiated would a license be revoked. Some commenters regarding the fraud issue were mistaken regarding suspected fraud resulting in license revocation. All issues in the Franklin County Circuit Court matter have been settled. The form incorporated by reference was not new but was a standardized vehicle for transmitting already required information. The form was not any more of a confidentiality concern than a guardian or child spotted entering a child care facility. The form was amended in the Amended After Comments version to make it more user friendly. The form would enhance billing accuracy. Amending the form again now would require deferral, which would result in the emergency administrative regulations expiring before the ordinary administrative regulations were effective. Such an expiration would create a gap in the cabinet’s ability to enforce these requirements.
Ms. James stated that the cabinet recently experienced serious incidences of fraud pertaining to this program. It was vital for good stewardship of state funds to ensure that children reported as receiving child care actually received that care.
In response to a question by Senator Bowen, Ms. Caywood stated that the form was based on the federal model. The cabinet was willing to change the form, but these administrative regulations needed to continue through the process now. The cabinet agreed to amend the form in the near future.
A motion was made and seconded to approve the following amendments: (1) to amend Section 1 to place definitions in alphabetical order; and (2) to amend Section 10 to delete language referencing provisions that were deleted in the Amended After Comments version of 922 KAR 2:160. Without objection, and with agreement of the agency, the amendments were approved.
922 KAR 2:090 & E. Child-care center licensure.
Ms. Bowman stated that Section 6 of this administrative regulation required an employee to be discharged if that employee was found to have a felony conviction, even if the conviction was for matters unrelated to the health and safety of children, such as a conviction for endorsing checks without sufficient funds.
922 KAR 2:100. Certification of family child-care homes.
922 KAR 2:110. Child-care center provider requirements.
922 KAR 2:120. Child-care center health and safety standards.
A motion was made and seconded to approve the following amendments: (1) to amend Section 4 to make a technical correction; and (2) to amend Section 13 to clarify provisions. Without objection, and with agreement of the agency, the amendments were approved.
922 KAR 2:160 & E. Child Care Assistance Program.
Ms. Vessels stated that 4-C Child Care had alerted the cabinet of incidences of fraud, and the facility supported some portions of this administrative regulation; however, some requirements were more burdensome than federal requirements without justification. Some requirements placed undue burdens on small businesses. It was possible that innocent mistakes in paperwork may be deemed intentional fraud. Discrepancies in paperwork had sometimes caused audits resulting in overburdensome paperwork, including a situation in which copying costs alone were over $1,400. Ms. Vessels requested that the subcommittee find this administrative regulation deficient.
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 Section 7 to make technical corrections; and (3) to amend Sections 10 and 17 to correct citations. Without objection, and with agreement of the agency, the amendments were approved.
922 KAR 2:180. Requirements for registered child care providers in the Child Care Assistance Program.
The following administrative regulations were deferred to the September 2013 meeting of the subcommittee:
AGRICULTURAL EXPERIMENT STATION: Seeds
12 KAR 1:116. Sampling, analyzing, testing, and tolerances.
12 KAR 1:135. Tags available for purchase from the director.
12 KAR 1:145. Registration of agricultural seed dealers, noncertified custom seed conditioners, certified seed growers, and certified seed conditioners.
12 KAR 1:150. Stop sale orders.
12 KAR 1:155. Schedule of charges for samples submitted for testing.
12 KAR 1:165. Germination standards for vegetable seed.
GENERAL GOVERNMENT CABINET: Board of Medical Licensure: Board
201 KAR 9:016. Restrictions on use of amphetamine and amphetamine-like anorectic controlled substances. C. Lloyd Vest II, general counsel, represented the board.
Mr. Vest stated that the board inadvertently failed to file the suggested amendment in time for the subcommittee meeting. The board requested deferral to the September meeting of the subcommittee. Without objection, and with agreement of the subcommittee, this administrative regulation was deferred to the September meeting.
ENERGY AND ENVIRONMENT CABINET: Department for Environmental Protection: Division of Water: Water Quality Standards
401 KAR 10:030. Antidegradation policy implementation methodology.
Department for Natural Resources: Division of Technical and Administrative Support: General Administrative Procedures
418 KAR 1:040. Grant applications.
CABINET FOR HEALTH AND FAMILY SERVICES: Department for Public Health: Division of Maternal and Child Health: Kentucky Early Intervention System
902 KAR 30:120. Evaluation and eligibility.
902 KAR 30:200. Coverage and payment for services.
Department for Medicaid Services: Payment and Services
907 KAR 3:230 & E. Reimbursement policies and requirements for specialty intermediate care (IC) clinic services.
The subcommittee adjourned at 3:25 p.m. until the September meeting date, which will be scheduled after other committee schedules can be determined.