The 528th meeting of the Legislative Research Commission was held on Wednesday, June 3, 2009, at 1:30 PM, in Room 125 of the Capitol Annex. Representative Greg Stumbo, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator David L. Williams, Co-Chair; Representative Greg Stumbo, Co-Chair; Senators Carroll Gibson, Dan Kelly, Jerry P. Rhoads, Dan "Malano" Seum, Katie Kratz Stine, Johnny Ray Turner, and Ed Worley; Representatives Rocky Adkins, Larry Clark, Robert R. Damron, Bob M. DeWeese, David Floyd and John Will Stacy.
Guests: Mary Lassiter.
LRC Staff: Bobby Sherman and Christy Glass.
Representative Stumbo called the meeting to order and the secretary called the roll. There being a quorum present, Representative Stumbo called for a motion to approve the minutes of September 24, 2008; accept items A. through L. under Staff and Committee Reports; refer prefiled bills and administrative regulations as indicated and approve items C. through V. under New Business; accept and refer as indicated items 1. through 88. under Communications; and approve Resolutions A. through H. A motion was made by Representative Clark and seconded by Representative Damron. A roll call vote was taken and the motion passed unanimously. The following items were approved, accepted or referred:
STAFF AND COMMITTEE REPORTS
A. Information requests for September 2, 2008 through June 3, 2009.
B. Committee Activity Report. Reports of the Administrative Regulation Review Subcommittee meetings of September 9, October 14, November 12, and December 9, 2008 and January 13, February 9, March 9, April 14, and May 12, 2009.
C. Committee review of administrative regulations by the Interim Joint Committee on Health and Welfare during its meeting of October 15, 2008.
D. Committee review of administrative regulations by the House Standing Committee on Health and Welfare during its meeting of February 12, 2009.
E. Committee review of administrative regulations by the Senate Standing Committee on Health and Welfare during its meeting of February 18, 2009.
F. Committee review of administrative regulations by the House Standing Committee on Health and Welfare during its meeting of March 10, 2009.
G. Committee review of administrative regulations by the Senate Standing Committee on Health and Welfare during its meeting of March 11, 2009.
H. Committee review of administrative regulations by the Interim Joint Committee on Seniors, Veterans, Military Affairs, and Public Protection during its meeting of December 4, 2008.
I. Report of the 2008 SJR 80 Subcommittee to Study the Penal Code and Controlled Substances Act of the Interim Joint Committee on Judiciary.
J. Committee review of administrative regulations by the Education Assessment and Accountability Review Subcommittee during its meeting of December 9, 2008.
K. Committee review of the FY 2009 Small Cities Community Block Grant Application by the Senate Standing Committee on State and Local Government and the House Standing Committee on Local Government during its joint meeting of March 11, 2009.
NEW BUSINESS
A. Referral of prefiled bill to the following committee: BR 1 (proposing an amendment to Section 145 of the constitution of Kentucky relating to persons entitled to vote) to State Government.
B. Referral of the administrative regulations to the following committees for secondary review pursuant to KRS 13A.290(6): 907 KAR 1:585 (Estate recovery); 907 KAR 1:645 (Resource standards for Medicaid); 907 KAR 1:650 (Trust and transferred resource requirements for Medicaid); 907 KAR 1:655 (Spousal impoverishment and nursing facility requirements for Medicaid); and 907 KAR 3:170 (Telehealth services and reimbursement) to Appropriations and Revenue; 806 KAR 17:480 (Uniform evaluation and reevaluation of providers) to Banking and Insurance; 16 KAR 5:010 (Standards for accreditation of educator preparation units and approval of programs); and 702 KAR 3:090 (Depository bond, penal sum) to Education; 201 KAR 20:225 (Reinstatement of license); 201 KAR 20:270 (Programs of nursing site visits); and 201 KAR 20:290 (Standards for prelicensure registered nurse and practical nurse secondary or distance learning sites) to Health and Welfare; 505 KAR 1:100 & E (Department of Juvenile Justice Policies and Procedures: admissions) to Judiciary; 201 KAR 10:050 (Fees); and 811 KAR 2:120 & E (Kentucky Horse Breeders’ Incentive fund) to Licensing and Occupations; 815 KAR 25:060 (Licensing of manufactured and home retailers) to Local Government; 301 KAR 2:111 (Deer and turkey hunting on special areas; 301 KAR 2:172 (Deer hunting seasons, zones, and requirements); 301 KAR 2:178 (Deer hunting on wildlife management areas and state parks); 401 KAR 8:040 (Laboratory certification); 401 KAR 8:050 (Drinking water program fees); 401 KAR 10:026 (Designation of uses of surface waters); 401 KAR 10:029 (General provisions); 401 KAR 10:031 (Surface water standards); 401 KAR 101:001 (Definitions for 401 KAR Chapter 101); 401 KAR 101:010 (Contractor certification); 401 KAR 101:020 (Financial requirements); 401 KAR 101:030 (Tiered response system); and 401 KAR 101:040 (Cleanup and sampling requirements) to Natural Resources and Environment; 200 KAR 5:380 (Protests); and 200 KAR 14:011 & E (Qualified investments) to State Government.
C. From Senate President David L. Williams and House Speaker Jody Richards: Memorandum authorizing and making appointments to the Land Stewardship and Conversation Task Force.
D. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum approving the NCSL 2010 Annual Meeting Committee Structure.
E. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum recommending the appointment of Speaker Stumbo to the NCSL Executive Committee.
F. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum confirming that Senator Mike Reynolds will not be serving as a member of the Interim Joint Committee on Licensing and Occupations.
G. From Bobby Sherman: Memorandum recommending amendment of the interim joint committee structure and regular monthly meeting schedule to include an Interim Joint Committee on Agriculture and an Interim Joint Committee on Natural Resources and Environment.
H. From Bobby Sherman: Memorandum recommending a name change for the Interim Joint Committee on Seniors, Veterans, Military Affairs, and Public Protection to the Interim Joint Committee on Veterans, Military Affairs, and Public Protection.
I. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum appointing Representative Will Coursey to the Interim Joint Committee on Transportation.
J. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum recommending alignment of the budget review subcommittees to include a Budget Review Subcommittee on Primary and Secondary Education and a Budget Review Subcommittee on Postsecondary Education.
K. From Senator Robert Stivers and Representative John Tilley, Co-Chairs, Interim Joint Committee on Judiciary: Memorandum requesting a change in the regular monthly meeting day of the committee and requesting authorization of and approval of membership for the Subcommittee on the Penal Code and Controlled Substances Act.
L. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointment membership for the Subcommittee on Kentucky Waterways of the Interim Joint Committee on Transportation.
M. From Senator Charlie Borders and Representative Rick Rand, Co-Chairs, Interim Joint Committee on Appropriations and Revenue: Memorandum requesting approval to meet on June 4, rather than the regular meeting date of June 25. There are no apparent conflicts.
N. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum appointing Elizabeth Lloyd Jones to the Land Stewardship and Conservation Task Force (filling a vacancy).
O. From Senator Julie Denton and Representative Tom Burch, Co-Chairs, Interim Joint Committee on Health and Welfare: Memorandum requesting authorization of and appointments to the Subcommittee on Families and Children and the Subcommittee on Health Issues and Aging.
P. From Senator Ken Winters and Representative Carl Rollins, II, Co-Chairs, Interim Joint Committee on Education: Memorandum requesting authorization of and appointments to the Subcommittee on Postsecondary Education and the Subcommittee on Elementary and Secondary Education.
Q. From Senator Julie Denton and Representative Tom Burch, Co-Chairs, Interim Joint Committee on Health and Welfare: Memorandum requesting approval to meet on August 12, rather than the regular meeting date of August 19. There are no apparent conflicts.
R. From Senator Elizabeth Tori and Representative Tanya Pullin, Co-Chairs, Interim Joint Committee on Veterans, Military Affairs, and Public Protection: Memorandum requesting approval to change the committee’s regular monthly meeting day from the first Thursday of the month to the afternoon of the second Thursday of the month. There are no apparent conflicts.
S. From Senator Charlie Borders and Representative Rick Rand, Co-Chairs, Interim Joint Committee on Appropriations and Revenue: Memorandum requesting authorization of and appointments to the Subcommittee on 2010-2012 Budget Preparation and Submission of the Legislative Research Commission; and requesting authorization for meetings during June and July upon joint call of the subcommittee co-chairs.
T. From Senator Alice Forgy Kerr and Representative Rick Nelson, Co-Chairs, Interim Joint Committee on Labor Industry: Memorandum requesting approval to meet on September 15, rather than the regular meeting date of September 17. There is potential conflict with one member.
U. From Senator Alice Forgy Kerr and Representative Eddie Ballard, Co-Chairs, Interim Joint Committee on Economic Development and Tourism: Memorandum requesting approval to hold a two-day meeting on July 30 and 31, rather than the regular meeting date of July 16. There are no apparent conflicts.
V. From Representative Reginald Meeks: Memorandum requesting LRC recognition of the Kentucky Black Caucus of State Legislators, consisting of all African American members of the General Assembly.
COMMUNICATIONS
1. From Senator John Schickel and Representative Reginald Meeks, Co-Chairs, Program Review and Investigations Committee: Memorandum advising of the opportunity to appoint of ex officio members.
2. From the Office of the Attorney General: Constitutional Challenge Reports for August, September, October, November, and December 2008 and January, February, and March 2009.
3. From the Auditor of Public Accounts: Report of the Audit of the Boone County Fiscal Court for FY 2006.
4. From the University of Kentucky: University of Kentucky Capital Construction Report for FY 2008.
5. From the Auditor of Public Accounts: Briefing Report: An Overview of Charitable Gaming in Kentucky.
6. From the Cabinet for Economic Development: The Agricultural Warehousing Sites Cleanup Fund Annual Report for FY 2008.
7. From the Teachers’ Retirement System of Kentucky: In-state Investment Report for FY 2008 and Interim Financial Statements for the Quarter ended June 30, 2008.
8. From the Teachers’ Retirement System of Kentucky: FY 2008 Annual Report.
9. From the Personnel Cabinet: 2008 Annual Report from the Kentucky Group Health Insurance Board.
10. From the Cabinet for Economic Development, Department of Financial Incentives: Loan data sheets for each loan approved as of the quarters ending September 30 and December 31, 2008 and March 31, 2009.
11. From the Kentucky Council on Developmental Disabilities: 2008 Annual Update.
12. From the Kentucky Housing Corporation: Methamphetamine Housing Clean-Up Assistance Program Activity Update – October 1, 2008.
13. From the Cabinet for Health and Family Services: The Commission on Services and Supports for Individuals with Mental Retardation and Other Developmental Disabilities Seventh Annual Status Report.
14. From the Department of Education: 2008 Annual Audit of School Districts.
15. From the Cabinet for Health and Family Services: Healthcare in Kentucky Report, FY 2008.
16. From the Kentucky Board of Medical Licensure: Annual Report for FY 2008.
17. From the University of Kentucky, Kentucky Tobacco Research & Development Center: Quarterly Report for the period of July 1-September 30, 2008.
18. From the Finance and Administration Cabinet, Kentucky Higher Education Assistance Authority: FY 2008 Actuarial Valuation of the Prepaid Tuition Trust Fund for Kentucky’s Affordable Prepaid Tuition.
19. From the Finance and Administration Cabinet: Monthly Investment Income Reports for the months of September, October, November, and December 2008, and January, February, March, and April 2009.
20. From the Cabinet for Economic Development: Linked Deposit Loan Investment Program Annual Report for FY 2008.
21. From the Finance and Administration Cabinet, Kentucky Higher Education Assistance Authority: Financial Statements for FY 2008.
22. From the Office of the Governor, Kentucky Office of Homeland Security: 2008 Annual Report.
23. From the Cabinet for Economic Development: FY 2008 Bluegrass State Skills Corporation Annual Report.
24. From the Kentucky Employers’ Mutual Insurance: 2009 Administrative Budget, Financial Status, and Actuarial Condition.
25. From Eastern Kentucky University: Financial Statements for FY 2007 and 2008, and Independent Auditors’ Report
26. From the Finance and Administration Cabinet, Office of the Controller: Surtax Receipts Statements for the Law Enforcement and Professional Firefighters Foundation Fund Programs for FY 2008, and year-to-date activity through April 30, 2009.
27. From Kentucky Employers’ Mutual Insurance: Quarterly Statement and Financial Status for the period ending September 30, 2008.
28. From the Cabinet for Health and Family Services: Breast Cancer Trust Fund Annual Report for FY 2007
29. From the Transportation Cabinet: Evaluation of Kentucky’s General Aviation Aircraft Performance Audit.
30. From the University of Kentucky: 2008 Financial Statements.
31. From the Public Protection Cabinet, Department of Alcoholic Beverage Control: 2008 Annual Report.
32. From the Kentucky Retirement Systems: Financial Statements for FY 2007 and 2008.
33. From the Cabinet for Health and Family Services, Office of the Secretary: 2008 Charitable Health Provider Report.
34. From the Kentucky Legislative Ethics Commission: FY 2008 Annual Report.
35. From the Energy and Environment Cabinet: Intelligent Choices for Kentucky’s Energy Future.
36. From the Office of the State Budget Director: Report detailing revised revenue estimates for the General Fund, Road Fund, and Phase I, Master Settlement Agreement for FY 09.
37. From the Labor Cabinet, Division of Workers’ Compensation Funds: Report for Kentucky Coal Workers’ Pneumoconiosis Fund, Quarters Ending September 30, 2008, and March 31, 2009.
38. From the Cabinet for Health and Family Services, Department for Public Health: Statewide Hepatitis C Education, Awareness, and Information Program, December 2008 Status Report.
39. From the Cabinet for Health and Family Services, Office of the Secretary: Report Regarding the Replacement of Glasgow State Nursing Facility.
40. From the Cabinet for Economic Development: Incentives for Energy Independence Act Annual Report.
41. From the Public Protection Cabinet, Office of the Secretary: Letter from Department of Charitable Gaming addressing the Auditor’s recommendations contained in Briefing Report: An Overview of Charitable Gaming in Kentucky.
42. From the Public Protection Cabinet, Department of Insurance: Report of Kentucky Access, January 2009.
43. From the Energy and Environment Cabinet, Department for Environmental Protection, Division of Waste Management: E-Scrap in Kentucky, A Report with Recommendations for an Electronic Waste and Recycling System.
44. From the Transportation Cabinet: Letter from Secretary Joseph W. Prather pertaining to selection of new school building sites.
45. From the Tourism, Arts, and Heritage Cabinet: A Report to the Kentucky Recreational Trails Authority. All Terrain Vehicle/Off Highway Vehicle Trespass: Reducing the Problem and Property Damage.
46. From the Public Protection Cabinet, Department of Insurance: 2008 Annual Report of the Kentucky Health Care Improvement Authority.
47. From Northern Kentucky University: FY 2008 Financial Report.
48. From the Kentucky Labor Cabinet, Department of Workers’ Claims: Commissioner’s Report on AMA Guidelines.
49. From the Cabinet for Health and Family Services, Office of the Secretary: Elder Abuse in Kentucky, 2008 Annual Report.
50. From the Kentucky Judicial Form Retirement System: Actuarial Valuation Report as of July 1, 2008, for the Kentucky Judicial Retirement Plan and Actuarial Valuation Report as of July 1, 2008, for the Kentucky Legislators Retirement Plan.
51. From the Kentucky Judicial Form Retirement System: Audit of the Kentucky Judicial Form Retirement System as of June 30, 2008.
52. From the Department of Education: Report on types of physical activity being provided students in grades K-5.
53. From the Cabinet for Health and Family Services, Department for Aging and Independent Living: Traumatic Brain Injury Trust Fund Program Annual Report for FY 2008.
54. From the Energy and Environment Cabinet, Department for Environmental Protection, Division of Water: Kentucky Drought Mitigation and Response Plan.
55. From the Cabinet for Health and Family Services: 2008 Annual Report on licensed blood establishments in Kentucky.
56. From the Auditor of Public Accounts: Performance Audit of the Kentucky Department of Education’s Oversight of State Assessment Contracts.
57. From Murray State University: Accountants’ Report and Financial Statements for the period FY 2008.
58. From the Personnel Cabinet: Statewide Turnover Report for the 4th Quarter, 2008.
59. From the Public Service Commission: Issuance of Net Metering/ Interconnection Guidelines.
60. From the Collaborative Center for Literacy Development: 2008 Annual Report.
61. From the Department of Agriculture, Division of Food Distribution: Kentucky Senior Farmers’ Market Nutrition Program 2008 Annual Report.
62. From the Auditor of Public Accounts: Hardin County 2007 Sherriff Tax Settlement Audit.
63. From the Auditor of Public Accounts: Breckinridge County Clerk 2007 Audit.
64. From the Auditor of Public Accounts: Trigg County Clerk 2007 Audit.
65. From the Auditor of Public Accounts: Knott County Sherriff 2007 Fee Audit.
66. From the Auditor of Public Accounts: Trigg County Sherriff 2007 Fee Audit.
67. From the Auditor of Public Accounts: Breckinridge County Sherriff 2007 Fee Audit.
68. From the Auditor of Public Accounts: Breckinridge County 2007 Sherriff Tax Settlement Audit.
69. From the Auditor of Public Accounts: Knott County Sherriff 2007 Tax Settlement and Unmined Coal Taxes Audit.
70. From the Labor Cabinet, Division of Workers’ Compensation Funds: Report for Kentucky Coal Workers’ Pneumoconiosis Fund, Quarter Ending December 31, 2008 (FY 2009 2nd Quarter).
71. From the Cabinet for Health and Family Services, Department for Community Based Services: Report of statewide random case reviews and exit interviews for social workers for the period July 1 through December 31, 2008.
72. From the University of Kentucky, Kentucky Tobacco Research & Development Center: Annual Report for FY 2008.
73. From the Office of the State Budget Director, Governor’s Office for Economic Analysis: Quarterly Economic and Revenue Report, Second Quarter, FY 2009.
74. From the Council on Postsecondary Education: Letter regarding information on postsecondary education students participating in the tuition and mandatory fee waiver program for foster or adopted children.
75. From the Kentucky State Nature Preserves Commission: January 2009 Biennial Report.
76. From Kentucky Employers’ Mutual Insurance: Annual Statement and Letter of Actuarial Opinion for 2008.
77. From the Cabinet for Health and Family Services, Spinal Cord and Head Injury Research Board: 2008 Annual Report.
78. From the Cabinet for Economic Development: 2008 Tax Increment Financing Annual Report.
79. From the Kentucky Pollution Prevention Center: 2007-2008 Annual Report.
80. From the Cabinet for Health and Family Services: SWIFT Adoption Teams Report for the second and third quarters of 2008.
81. From the Auditor of Public Accounts: Examination of Certain Financial Transactions, Policies, and Procedures of the Lexington Blue Grass Airport.
82. From the Personnel Cabinet: Statewide Turnover Report for the 1st Quarter Report 2009.
83. From the Council on Postsecondary Education: 2007-2008 Accountability Report.
84. From the Personnel Cabinet: Statewide Turnover Report for calendar year 2008.
85. From the Auditor of Public Accounts: Performance Audit of the Nursing Services Contracts for Kentucky’s Mental Health/Mental Retardation Hospitals and Facilities.
86. From the Kentucky Council on Postsecondary Education: Comprehensive Process for the Revision of K-12 to College Entry-Level Course Content Standards.
87. Department of Revenue, Office of Property Valuation: 2009 Real Estate Exemption List.
88. From the Kentucky Employers’ Mutual Insurance: Quarterly Statement and Financial Status for the period ending March 31, 2009.
RESOLUTIONS
A. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of Dr. John C. Gunn;
B. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of Woodrow Leonard Stamper;
C. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of Robert Fredrick Holscher;
D. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of Glenn L. Harney;
E. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of Albert “Bert” Wall;
F. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of Karen Ann Riedinger;
G. A RESOLUTION adjourning the Legislative Research Commission in honor of Mary Dott Sidwell Gritton; and,
H. A RESOLUTION adjourning the Legislative Research Commission in honor and loving memory of R. K. Keith.
OTHER BUSINESS
Update on current and prospective American Recovery and Reinvestment Act (ARRA) fund receipts and expenditures.
Ms. Mary Lassiter, State Budget Director, gave an overview of the background and history of the ARRA. Ms. Lassiter stressed that eighty percent (80%) of the 3 Billion Dollars was in the form of programs and not projects. She broke down the categories of spending as shown on the handout she distributed.
Ms. Lassiter conveyed that, under the state fiscal stabilization category, there is $651,000,000 available over two years, of which eighty-two percent (82%) will be used for Education and 12% for other expenditures. Under the ARRA, Medicaid will receive seventy-nine percent (79%) of its funding from federal aid for twenty-seven (27) months, instead of the usual seventy percent (70%) and thirty percent (30%) from the state.
There will be $400,000,000 put into federal programs already in existence, such as Title I, with poorer districts receiving more money.
Ms. Lassiter discussed monies already spent to date, and indicated that there is significant accounting and reporting. October 10, 2009, is the statutory date to report spending to the U.S. Government. This information will be available on the state website. She said that this money is special, one-time dollars and should be treated as such.
Ms. Lassiter then discussed the Safety Net Programs and advised that food stamps would receive a 13.6% increase. There would also be an increase in Unemployment Insurance and the Workforce Investment Act.
Representative Adkins asked Ms. Lassiter how the Unemployment Insurance fund was doing. Ms. Lassiter replied that it is in the red by $220,000,000 and that they have been borrowing from the federal government. She stated that Transportation and Education are areas that are available for additional federal funds.
President Williams directed Ms. Lassiter to page six of her handout and asked if the match for Medicaid was retroactive to October 8, and will we have received all of that money. Ms. Lassiter replied yes, and that when the books are closed on this FY, there will be additional expenditures in the Medicaid fund. President Williams asked what her best guess was for a dollar figure, and she stated that it hasn’t been nailed down yet, but an estimate would be around $40-60 million dollars available to the General Fund. President Williams indicated that that amount is more than we had anticipated, and asked Ms. Lassiter if we will be able to balance the budget, to which she replied, “in this fiscal year, yes.”
Senator Seum then asked how close the estimates were on her handout. She said they really won’t know until the federal government gives the awards, but that they should be very close. Senator Seum asked if the entities receiving this money had to apply for it or if they automatically received it, and Ms. Lassiter advised that it depends. She said that most require application, but some don’t.
Speaker Stumbo asked if the additional money available to the Road Fund was it project specific. Ms. Lassiter said that yes, it is project specific, and that the projects would have to apply to the federal government for this funding.
There being no further business, the meeting was adjourned at 2:40 p.m.