Call to Order and Roll Call
The 533rd meeting of the Legislative Research Commission was held on Wednesday, July 6, 2011, at 1:30 PM, in Room 125 of the Capitol Annex. Senator David L. Williams, 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, R.J. Palmer II, Dan "Malano" Seum, Katie Kratz Stine, Robert Stivers II, and Johnny Ray Turner; Representatives Rocky Adkins, Larry Clark, Robert R. Damron, Bob M. DeWeese, Danny Ford, Jeff Hoover, and Tommy Thompson.
LRC Staff: Robert Jenkins and Christy Glass.
Senator Williams called the meeting to order and the secretary called the roll. There being a quorum present, Senator Williams called for a motion to approve the minutes of the October 6, 2010, meeting; accept items A. through V. under Staff and Committee Reports; refer prefiled bills and administrative regulations as indicated and approve items C. through AA. under New Business; and accept and refer as indicated items 1. through 91. under Communications. Representative Clark asked for clarification on Item L. under New Business. He asked if LRC were ratifying the RFP and not actually hiring a vendor, to which Senator Williams answered yes. A motion was made by Representative Stumbo and seconded by Representative Adkins. A roll call vote was taken, and the motion passed unanimously. The following items were approved, accepted, or referred:
The minutes of the October 6, 2010 meeting were approved.
STAFF AND COMMITTEE REPORTS
A. Information requests for October through December 2010 and January through June 2011.
B. Committee Activity Reports for May and June 2011.
C. Reports of the Administrative Regulation Review Subcommittee meetings of October 12, November 9, and December 14, 2010, and January 11, February 14, March 8, April 12, May 10, and June 14, 2011.
D. Committee review of administrative regulations by the Interim Joint Committee on Health and Welfare during its meetings of October 20, November 17, and December 15, 2010, and June 15, 2011.
E. Committee review of administrative regulations by the Interim Joint Committee on Education during its meetings of October 11, and November 8, 2010.
F. Committee review of administrative regulations by the Interim Joint Committee on Appropriations and Revenue during its meeting of December 2, 2010.
G. Committee review of administrative regulations by the Interim Joint Committee on Veterans, Military Affairs, and Public Protection during its meeting of November 22, 2010.
H. Committee review of administrative regulations by the Senate Standing Committee on Education during its meetings of February 3, and March 1, 2011.
I. Committee review of administrative regulations by the House Standing Committee on Education during its meetings of February 2, and March 1, 2011.
J. Committee review of administrative regulations by the Interim Joint Committee on Education during its meeting on June 13, 2011.
K. Committee review of FY 2011 Community Mental Health Services Block Grant by the Interim Joint Committee on Health and Welfare during its meeting of November 17, 2010.
L. Committee review of FY 2011 Small Cities Services Block Grant Application by the Senate Standing Committee on State and Local Government and House Standing Committee on Local Government during their meeting of March 2, 2011.
M. Committee review of SFY 2012 Social Services Block Grant by the Interim Joint Committee on Health and Welfare during its meeting of June 15, 2011.
N. Committee review of FFY 2012-2013 Child Care and Development Fund Plan Application by the Interim Joint Committee on Health and Welfare during its meeting of June 15, 2011.
O. Committee review of Executive Reorganization Order 2010-856 by the Interim Joint Committee on Education during its meeting of December 6, 2010.
P. Committee review of Executive Reorganization Order 2010-927 by the Interim Joint Committee on Education during its meeting of December 6, 2010.
Q. Committee review of Executive Reorganization Order 2011-351 by the Interim Joint Committee on Education during its meeting on June 13, 2011.
R. Committee review of Executive Reorganization Order 2011-355 by the Interim Joint Committee on Education during its meeting on June 13, 2011.
S. Committee review of Executive Reorganization Order 2011-356 by the Interim Joint Committee on Education during its meeting June 13, 2011.
T. Memorandum from Teresa Arnold submitting the Update on the Practice of Denturitry in Kentucky as directed by 2010 House Bill 179. (Staff suggested committee referral: Health and Welfare) .
U. From the Task Force on the Penal Code and Controlled Substances Act: Report of the Task Force pursuant to 2010 House Concurrent Resolution 250. (Staff suggested committee referral: Judiciary).
V. Memorandum from Teresa Arnold submitting staff study of Certification and Escrow Requirements Associated With the Tobacco Master Settlement Agreement as directed by 2009 Senate Bill 48. (Staff suggested committee referrals: Appropriations and Revenue and Agriculture.)
NEW BUSINESS
A. Referral of prefiled bills to the following committees: BR 8 (relating to taxation) and BR 31(relating to the promotion of organ and tissue donation) to Appropriations and Revenue; BR 22 (relating to out-of-state durable medical equipment providers) to Health and Welfare; BR 9 (relating to judicial sales) and BR 30 (relating to crimes and punishment) to Judiciary.
B. Referral of the administrative regulations to the following committees for secondary review pursuant to KRS 13A.290(6): 103 KAR 15:195 & E (Endow Kentucky Tax Credit) and 907 KAR 1:715 (School-based health services) to Appropriations and Revenue; 16 KAR 6:030 (Examination prerequisites for principal certification) to Education; 201 KAR 8:550 & E (Anesthesia and sedation), 900 KAR 6:030 (Certificate of need expenditure minimums), and 900 KAR 7:030 (Data reporting by health care providers) to Health and Welfare; 505 KAR 1:130 (Department of Juvenile Justice policies and procedures; juvenile services in community) to Judiciary; 815 KAR 20:070 (Plumbing fixtures) to Labor and Industry; 811 KAR 2:190 (Kentucky Quarter Horse, Appaloosa, and Arabian Development) and 815 KAR 20:030 (License application; qualifications for examination, examination requirements, expiration, renewal, revival or reinstatement of license) to Licensing and Occupations; 301 KAR 2:300 (Black bears), 401 KAR 10:030 (Antidegradation policy implementation methodology) to Natural Resources and Environment; and 101 KAR 1:325 (Probationary periods) to State Government.
C. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum regarding the selection of Peggy Hyland as the 2010 Vic Hellard Jr. Award recipient. Also included please find a letter of gratitude from Ms. Hyland.
D. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum regarding the appointment of Hon. Gail Russell to the National Conference of Commissioners on Uniform State Laws upon the resignation of Brad Cowgill.
E. From Bobby Sherman: Memorandum regarding redistricting issues and staff recommendations.
F. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointing the membership of the 2011 Task Force on the Penal Code and Controlled Substances Act.
G. From Senator Julie Denton and Representative Tom Burch, Co-Chairs, Interim Joint Committee on Health and Welfare: Memorandum requesting authorization and the appointment of members to the Families and Children Subcommittee and to the Health Issues and Aging Subcommittee of the Interim Joint Committee on Health and Welfare.
H. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointing the membership of the Task Force on Childhood Obesity.
I. From Bobby Sherman: Memorandum regarding appointment of Representative Leslie Combs as a non-voting ex officio member of the Budget Review Subcommittee on Economic Development and Tourism, Natural Resources, and Environmental Protection of the Interim Joint Committee on Appropriations and Revenue.
J. From Senator Damon Thayer and Representative Mike Cherry, Co-Chairs, Interim Joint Committee on State Government: Memorandum requesting approval to meet on July 21, rather than the regularly scheduled meeting date of July 27. There are ten potential conflicts.
K. From Senator Damon Thayer and Representative Mike Cherry, Co-Chairs, Interim Joint Committee on State Government: Memorandum requesting approval to meet on November 16, rather than the regularly scheduled meeting date of November 23. There are four potential conflicts.
L. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing the issuance of a Request for Proposals for a consultant to study the effectiveness of economic development initiatives (2011 HJR 5).
M. From Senator Tom Jensen and Representative John Tilley, Co-Chairs, Interim Joint Committee on Judiciary: Memorandum requesting approval to change the regular monthly meeting day of the Interim Joint Committee on Judiciary from the second Wednesday to the first Friday.
N. From Senator Ken Winters and Representative Carl Rollins, Co-Chairs, Interim Joint Committee on Education: Memorandum requesting authorization and the appointment of members to the Subcommittee on Postsecondary Education and the Subcommittee on Elementary and Secondary Education of the Interim Joint Committee on Education.
O. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum removing Representative Tommy Turner as a member and appointing Representative Julie Adams as a liaison member of the Budget Review Subcommittee on Postsecondary Education of the Interim Joint Committee on Appropriations and Revenue.
P. From Senator Ken Winters and Representative Carl Rollins, Co-Chairs, Interim Joint Committee on Education: Memorandum requesting approval to meet on August 1, rather than the regularly scheduled meeting date of August 8. There are no apparent conflicts.
Q. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum appointing Senator R. J. Palmer to the Interim Joint Committee on Transportation.
R. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointing membership to the Subcommittee on Kentucky Waterways of the Interim Joint Committee on Transportation.
S. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum appointing Representative Steven Rudy to the Subcommittee on Kentucky Waterways of the Interim Joint Committee on Transportation.
T. From Senator Tom Buford and Representative Jeff Greer, Co-Chairs, Interim Joint Committee on Banking and Insurance: Memorandum requesting approval to meet October 20 in conjunction with the Kentucky Credit Union League annual meeting, rather than the regularly scheduled meeting date of October 25. There are seven potential conflicts.
U. From Senator Bob Leeper and Representative Rick Rand, Co-Chairs, Interim Joint Committee on Appropriations and Revenue: Memorandum requesting authorization and appointment of membership to the Subcommittee on 2012-2014 Budget Preparation and Submission of the Legislative Research Commission.
V. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum listing the membership of the Special Subcommittee on Energy.
W. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointing the membership to the Task Force on Elections, Constitutional Amendments, and Intergovernmental Affairs of the Interim Joint Committee on State Government.
X. From Senate President David L. Williams and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointing the membership to the Task Force on Economic Development of the Interim Joint Committee on Economic Development and Tourism.
Y. From Senator Julie Denton and Representative Tom Burch, Co-Chairs, Interim Joint Committee on Health and Welfare: Memorandum requesting approval to meet on September 13 in conjunction with activities of Prevent Child Abuse Kentucky, rather than the regularly scheduled meeting date of September 14. There are five potential conflicts.
Z. From Senator David Givens and Representative Tom McKee, Co-Chairs, Interim Joint Committee on Agriculture: Memorandum requesting approval to meet on August 25 in Louisville at the Kentucky State Fair Board, rather than the regularly scheduled meeting date of August 10. This will be the third out-of-town meeting. There are 14 potential conflicts.
AA. From Senator David Givens and Representative Tom McKee, Co-Chairs, Interim Joint Committee on Agriculture: Memorandum requesting approval to meet on September 9 in Lexington at the University of Kentucky, rather than the regularly scheduled meeting date of September 14. This will be the fourth out-of-town meeting. There are five potential conflicts.
COMMUNICATIONS
1. From Senator Jimmy Higdon and Representative Fitz Steele, Co-Chairs, Program Review and Investigations Committee: Opportunity for LRC appointment of ex officio members for study topics.
2. From the Office of the Attorney General: Constitutional Challenge Reports for the months of August, September, October, and November 2010 and January, February, March, and April 2011.
3. 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, 2010, and March 31, 2011.
4. From the Teachers’ Retirement System: In-state Investment Report for FY 2010.
5. From the University of Kentucky, Office of the Treasurer: University of Kentucky Capital Construction Report for FY 2010.
6. From the Auditor of Public Accounts: Report entitled Registered Sex Offender Address Comparisons Can Strengthen the Monitoring Process for Child Care and Out-of-Home Placement Providers.
7. From the Kentucky Personnel Cabinet: FY 2010 Annual Report.
8. From the Cabinet for Health Services: Kentucky Council on Developmental Disabilities 2010 Annual Update.
9. From the Energy and Environment Cabinet: Listings of Agency Owned Lands Open and Closed to Hunting.
10. From the Finance and Administration Cabinet, Office of the Controller: Surtax Receipts Statements for the Law Enforcement and Professional Firefighters Foundation Fund Programs for the months of September, October, November, and December 2010 and year-to-date activity for FY 2010; and for the months of January, February, March, April, and May 2011 and year-to-date activity for FY 2011.
11. From the Kentucky Personnel Board: Annual Report for FY 2010.
12. From the Finance and Administration Cabinet: Monthly Investment Income Report for the months of September, October, November, and December 2010 and January, February, March, April, and May 2011:
13. From the Kentucky’s Resource Center for Environmental Sustainability: 2009-2010 Annual Report.
14. From the University of Kentucky, Kentucky Geological Survey, Kentucky Interagency Groundwater Monitoring Network: FY 2010 Annual Report.
15. From the Kentucky Labor Cabinet, Division of Workers’ Compensation Funds: Report for Kentucky Coal Workers’ Pneumoconiosis Fund, Quarters Ending September 30 and December 31, 2010, and March 31, 2011.
16. From the Cabinet for Health and Family Services: FY 2011 Substance Abuse Prevention and Treatment (SAPT) Block Grant Summary.
17. From the Personnel Cabinet: Personnel Cabinet Quarterly Reports pursuant to 2010 HB 387.
18. From the Auditor of Public Accounts: Examination of Allegations of Potential Fraud and Other Related Issues Regarding Procurement Practices of Lexington-Fayette Urban County Government.
19. From the Cabinet for Economic Development: Kentucky Enterprise Initiative Act Annual Report for FY 2010.
20. From the Finance and Administration Cabinet: FY 2009 Report on Energy Efficiency in Leased-In Facilities.
21. From Eastern Kentucky University: FY 2010 Financial Report.
22. From the Cabinet for Health and Family Services, Office of the Inspector General: Medicaid Fraud and Abuse Report for FY 2010.
23. From State Budget Director Mary E. Lassiter: September 2010 monthly update on ARRA formula funding.
24. From the Cabinet for Economic Development: Bluegrass State Skills Corporation Annual Report FY 2010.
25. From the Personnel Cabinet: Semi-annual reports (October 27, 2010, and May 15, 2011) of all Non-Merit Positions for Selected Qualifications.
26. From the Finance and Administration Cabinet, Kentucky Higher Education Assistance Authority: Annual Actual Valuation of the Prepaid Tuition Trust Fund for Kentucky’s Affordable Prepaid Tuition for FY 2010.
27. From the Kentucky Department of Fish and Wildlife: The Status of Chronic Wasting Disease (CWD) in animals.
28. From the Personnel Cabinet: Statewide Turnover Report for the 3rd Quarter, 2010.
29. From the Kentucky Office of Homeland Security: 2010 Annual Report.
30. From the Cabinet for Economic Development: Kentucky Enterprise Initiative Act Annual Report for FY 2010.
31. From the Department of Education: FY 2010 Physical Activity Report.
32. From the Department of Education: Energy Efficient School Design Within Kentucky’s Education System FY 2010.
33. From Kentucky Employers’ Mutual Insurance Authority: Quarterly Statement and Financial Status for the periods ending September 30, 2010, and March 31, 2011.
34. From the Auditor of Public Accounts: Letter to Dr. James R. Ramsey regarding Examination Findings of University Health Care, Inc., DBA Passport Health Plan.
35. From the Auditor of Public Accounts: Examination of Certain Policies, Procedures, Controls, and Financial Activity of University Health Care, Inc., DBA Passport Health Plan, and Its Affiliation with the University of Louisville and the Cabinet for Health and Family Services.
36. From the University of Kentucky: Audited Financial Statements of the University of Kentucky and its affiliated corporations for FY 2010.
37. From the University of Kentucky, Kentucky Tobacco Research & Development Center: Quarterly Report for the period July 1 through September 30, 2010.
38. From the Transportation Cabinet: Minutes of the Kentucky Public Transportation Infrastructure Authority (KPTIA) for meetings conducted during FY 2010.
39. From the Kentucky Judicial Form Retirement System: Audited Financial Statements of the Kentucky Judicial Form Retirement System for FY 2009 and FY 2010.
40. From the Kentucky Judicial Form Retirement System: GASB Disclosure Report as of July 1, 2010, for the Kentucky Judicial Retirement Plan and GASB Disclosure Report as of July 1, 2010, for the Kentucky Legislators Retirement Plan.
41. From the Finance and Administration Cabinet, Kentucky Higher Education Assistance Authority: FY 2010 Audited Financial Statements for the Kentucky Higher Education Assistance Authority, Kentucky Higher Education Student Loan Corporation, and the Kentucky Affordable Prepaid Tuition Program.
42. From Northern Kentucky University: FY 2010 Financial Report.
43. From the Cabinet for Health and Family Services, Department for Community Based Services: Child Abuse and Neglect Annual Report of Child Fatalities and Near Fatalities, September 2010.
44. From the Kentucky Employers’ Mutual Insurance: 2011 Administrative Budget, Third Quarter 2010 Financial Statements; Statement of Assets, Liabilities, and Policyholder Surplus; Statement of Income; Statement of Solvency; and Statement of Actuarial Opinion for the year ended December 31, 2009.
45. From the Cabinet for Health and Family Services: Report of the Department for Community Based Services Tuition Waiver Program for Youth for the reporting period September 2009-September 2010.
46. From the Horse Racing Commission: 2008-2009 Biennial Report.
47. From the Transportation Cabinet: Pursuant to 10 SS HB 3, Report of Maximization of Road Fund Resources Achieved Through the Review of Contract Expenditures.
48. From the Cabinet for Economic Development: Incentives for Energy Independence Act Annual Report, October 2010.
49. From the Justice and Public Safety Cabinet, Department of Corrections: Response and Implementation of Audit Recommendations found in the report entitled Examination of the Kentucky Department of Corrections’ Food Service Contract with ARAMARK Correctional Services, LLCC.
50. From the Finance and Administration Cabinet: Report of Contract Efficiencies due to rebidding or renegotiation for FY 2011.
51. From the Kentucky Retirement Systems: FY 2010 Financial Statements.
52. From the Kentucky Legislative Ethics Commission: FY 2009-2010 Annual Report.
53. From the Finance and Administration Cabinet: Memorandum regarding Insurance Premiums Surcharge pursuant to KRS 136.392.
54. From the Public Protection Cabinet, Department of Insurance: Report of Kentucky Access, January 2011.
55. From the Cabinet for Health and Family Services: 2010 Child Fatality Review Annual Report.
56. From the Personnel Cabinet, Department of Employee Insurance: Kentucky Employees’ Health Plan Tenth Annual Report.
57. From the Public Protection Cabinet, Department of Insurance: FY 2010 Annual Report of the Kentucky Health Care Improvement Authority.
58. From the Public Service Commission: An Investigation of Natural Gas Retail Competition Programs, pursuant to 10 RS HJR 141.
59. From the Kentucky Labor Cabinet: 2010 Annual Report.
60. From the Justice and Public Safety Cabinet, Department of Corrections: Report on the Commonwealth’s need for correctional facilities in response to 10 SS HB 1.
61. From the Kentucky Geological Survey, University of Kentucky: 2009-2010 Annual Report.
62. From Murray State University: FY 2010 Annual Financial Report.
63. From the Cabinet for Health and Family Services: 2010 Report on federally licensed blood establishments in Kentucky.
64. From the Cabinet for Health and Family Services: FY 2008 and 2009 Domestic Violence Batterer Intervention Provider Program Annual Report.
65. From the Cabinet for Health and Family Services: SWIFT Adoption Teams Report for the third quarter of 2010.
66. From the Auditor of Public Accounts: Examination of Certain Policies, Procedures, Controls, and Financial Activity of the Mountain Water District.
67. From the University of Kentucky, Kentucky Tobacco Research & Development Center: FY 2010 Annual Report.
68. From the Personnel Cabinet: 2010 Turnover Reporting, 4th Quarter Reports:
69. From the Personnel Cabinet: 2010 Annual Turnover Report.
70. From the Kentucky State Nature Preserves Commission: 2011 Biennial Report.
71. From Senator Jack Westwood and Representative Ted Edmonds, Co-Chairs, Education Assessment and Accountability Review Subcommittee: Memorandum acknowledging the approval of the 2011 Office of Education Accountability (OEA) study agenda and authorizing the use of NTAPAA by OEA.
72. From the Cabinet for Economic Development: 2010 Annual Report for the Business Information Clearinghouse.
73. From the Kentucky Pollution Prevention Center: KEEPS 2010 Annual Status Report.
74. From the Public Protection Cabinet, Department of Alcoholic Beverage Control: 2008-2009 Annual Report.
75. From the Public Protection Cabinet, Department of Alcoholic Beverage Control: 2009-2010 Annual Report.
76. From Kentucky Employers’ Mutual Insurance: Annual Statement and Letter of Actuarial Opinion for the year ended December 31, 2010.
77. From the Cabinet for Health and Family Services: 2010 Kentucky Colon Cancer Screening Advisory Committee Annual Report.
78. From the Cabinet for Health and Family Services: FY 2009 Kentucky Women’s Cancer Screening Program Annual Report.
79. From the Tourism, Arts, and Heritage Cabinet, Kentucky Department of Fish and Wildlife Resources: FY 2010 Hunger Relief Program Report.
80. From the Auditor of Public Accounts: Report of the Audit of the McCracken County Fiscal Court for FY 2009.
81. From the Auditor of Public Accounts: Examination of Certain Policies, Procedures, Controls, and Financial Activity of Dismas Charities, Inc.
82. From the Finance and Administration Cabinet, Department of Revenue, Office of Property Evaluation: 2011 Real Property Exempt List.
83. From the Office of State Budget Director: 2012-2014 Branch Budget Request Manual.
84. From the University of Kentucky, College of Agriculture: Kentucky Tobacco Research and Development Center Quarterly Report for the period January 1 through March 31, 2011.
85. From the Kentucky Employers’ Mutual Insurance: First Quarter 2011 Financial Statements; Statement of Assets, Liabilities, and Policyholder Surplus; Statement of Income; and Statement of Solvency as of March 31, 2011.
86. From Kentucky Employers’ Mutual Insurance: 2010 Annual Report.
87. From Murray State University: Regulations adopted by the Murray State University Board of Regents pursuant to KRS 164.367.
88. From the Cabinet for Economic Development: Semi-annual Report of Riverport Marketing Assistance for the period January 1 through June 30, 2011.
89. From the Kentucky State Board for Proprietary Education: Update on the implementation of recommendations contained in Report of the Audit of the Kentucky State Board for Proprietary Education, April 20, 2011.
90. From the Cabinet for Health and Family Services, Department for Aging and Independent Living: FY 2010 Traumatic Brain Injury Trust Fund Program Annual Report.
91. From the Cabinet for Health and Family Services: 2010 Annual Report of the Kentucky Spinal Cord and Head Injury Research Board.
ADJOURNMENT
There being no further business, the meeting was thereby adjourned at 1:48 p.m.