Call to Order and Roll Call
The 542nd meeting of the Legislative Research Commission was held on Wednesday, December 11, 2013, 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 Robert Stivers II, Co-Chair; Representative Greg Stumbo, Co-Chair; Senators R.J. Palmer II, Dan "Malano" Seum, Brandon Smith, Katie Stine, Damon Thayer, and Johnny Ray Turner; Representatives Rocky Adkins, John Carney, Larry Clark, Bob M. DeWeese, Jeff Hoover, Sannie Overly, and Tommy Thompson.
LRC Staff: Marcia Seiler and Christy Glass.
There being a quorum present, Speaker Gregory D. Stumbo called for a motion to approve the minutes of the November 6, 2013, meeting; accept and refer as indicated items A. through D. under Staff and Committee Reports; refer prefiled bills as indicated and approve items B. through D. under New Business; and accept and refer as indicated items 1. through 25. under Communications.
Senator Stivers asked for discussion on the motion. He believes the motion should reflect that this agenda should have included “discussion and action upon the presentations that were made at the last LRC meeting in November by the NCSL and the Hannah Group.” He said it would be appropriate that the members discuss amending the agenda to reflect what the minutes of the last meeting established for the current agenda. He moved to amend the motion that this agenda have included in it a discussion on the presentations that were made at the last LRC meeting. The motion was seconded by Senator Thayer.
Speaker Stumbo said a motion was made and seconded that the motion under discussion be amended to reflect a change in the minutes of the November 6, 2013, meeting.
Senator Stivers corrected him, saying that the agenda, which was established but should have reflected the agreement from the last meeting, should be in conformity with those minutes that they were about to adopt.
Speaker Stumbo said that, if he understood correctly, the motion would be that they actually amend the LRC agenda for a discussion about the presentations that were made in the November 6, meeting, before they adjourned.
Senator Stivers said that his motion would be that the agenda accurately reflect the minutes they were about to adopt.
Speaker Stumbo then asked if there was any discussion, and called for a voice vote. It passed unanimously.
Speaker Stumbo stated that the general motion before the body was to approve the minutes as amended by President Stivers’ motion and to accept and refer as indicated items A. through D. under Staff and Committee Reports; refer prefiled bills as indicated and approve items B. through D. under New Business; and accept and refer as indicated items 1. through 25. under Communications. The motion was made by Representative Clark and seconded by Representative Thompson. A roll call vote was taken, and the motion passed unanimously. The following items were approved, accepted, or referred.
The minutes of the November 6, 2013, meeting, were approved.
Staff and Committee Reports
A. Information requests for November 2013.
B. Committee Activity Reports for November 2013.
C. Report of the Administrative Regulation Review Subcommittee meeting on November 12, 2013.
D. Committee review of the administrative regulations by the Interim Joint Committee on Health and Welfare during its meeting of November 20, 2013.
New Business
A. Referral of prefiled bills to the following committees: BR 163 (relating to the donation of game meat) to Agriculture; BR 355 (relating to the angel investor tax credit), and BR 396 (relating to automated business record falsification devices) to Appropriations and Revenue; BR 267 (relating to the financial solvency of insurance companies) to Banking and Insurance; BR 54 (concurrent resolution encouraging recognition of trapshooting as a high school sport), BR 302 (relating to school-based decision making councils), BR 352 (relating to financial literacy), BR 353 (relating to financial literacy), and BR 438 (relating to training and assessment of new superintendents and declaring an emergency) to Education; BR 243 (relating to nuclear power), BR 257 (relating to eminent domain and declaring an emergency), BR 258 (relating to eminent domain and declaring an emergency), and BR 275 (relating to utilities) to Energy; BR 41 (relating to public benefit corporations), BR 177 (relating to criminal records), BR 232 (relating to crimes and punishments), BR 233 (relating to life imprisonment for persistent felony offenders), BR 234 (relating to parole), BR 235 (relating to crimes and punishments), BR 236 (relating to crimes and punishments), BR 242 (relating to booking photographs), BR 247 (relating to the disciplining of a child by a parent or guardian), BR 248 (relating to the Department of Public Advocacy and making an appropriation therefor), BR 320 (relating to trafficking in heroin), BR 334 (relating to driving under the influence), and BR 335 (relating to parental rights) to Judiciary; BR 108 (proposing an amendment to Section 226 of the Constitution of Kentucky relating to casino gaming), BR 109 (relating to gaming and making an appropriation therefor), BR 322 (relating to the Kentucky Board of Embalmers and Funeral Directors), and BR 323 (relating to the board or barbering) to Licensing and Occupations; BR 252 (relating to the disclosure of public retirement information), and BR 406 (relating to public financing for judicial campaigns and making an appropriation therefor) to State Government; BR 38 (relating to speed limits), BR 61 (joint resolution designating the “Officer Jason Ellis Memorial Highway”), and BR 224 (relating to transportation) to Transportation.
B. From Senator Whitney Westerfield and Representative John Tilley, Co-Chairs of the Interim Joint Committee on Juvenile Code Task Force: Memorandum requesting approval to meet outside the interim on December 19. There are no apparent conflicts.
C. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum regarding the retention of Hon. Leslie Patterson Vose.
D. From Senator Joe Bowen and Representative Darryl Owens, Co-Chairs of the Military and Overseas Voting Assistance Task Force: Memorandum requesting approval to meet outside the interim on December 11. There are no apparent conflicts.
Communications
1. From the Office of the Attorney General: Constitutional Challenge Report for the months of September and October, 2013.
2. From the Finance and Administration Cabinet: Monthly Investment Income Report for the month of October 2013.
3. From the Auditor of Public Accounts: FY 13 Report of the Audit of the Kentucky Artisan Center at Berea.
4. From the Auditor of Public Accounts: FYS 12-13 Report of the Audit of the Kentucky Public Employees Health Plan.
5. From the Cabinet for Economic Development: FY 13 Agricultural Warehousing Sites Cleanup Fund Annual Report.
6. From the Kentucky Pollution Prevention Center: FY 13 Annual Report.
7. From the Kentucky Office of Homeland Security: 2013 Annual Report.
8. From the Cabinet for Health and Family Services: Human Trafficking Report pursuant to KRS 620.029(2)(b).
9. From the Cabinet for Health and Family Services: 2013 Public Health Child Fatality Review Program Annual Report.
10. From the Cabinet for Health and Family Services: 2013 Charitable Health Providers Annual Report.
11. From the Cabinet for Health and Family Services: FY 13 Annual Report for the Kentucky HIV/AIDS Planning and Advisory Council.
12. From Kentucky Employers’ Mutual Insurance Authority: Quarterly Statement and Financial Status for the period ending September 30, 2013.
13. From the Kentucky Employers’ Mutual Insurance: 2013 Third Quarter financial statements.
14. From Northern Kentucky University: FY 13 Annual Financial Report.
15. From the Kentucky Judicial Form Retirement System: FY 13 Audited Financial Statements of the Kentucky Judicial Form Retirement System.
16. From the Kentucky Judicial Form Retirement System: Actuarial Valuation Report as of July 1, 2013, for the Kentucky Judicial Retirement Plan and Actuarial Valuation Report as of July 1, 2013, for the Kentucky Legislators Retirement Plan.
17. From the Department of Revenue, Division of Corporation Tax: FY 13 Energy Efficiency Products Credits Claimed Report.
18. From the Department of Revenue, Division of Corporation Tax: FY 13 Energy Star Home and Energy Star Manufactured Home Credits Claimed Report.
19. From the Cabinet for Health and Family Services: FY 13 Statewide Strategic Planning Committee for Children in Placement Annual Report.
20. From the Office of the Attorney General: County Attorney Traffic Safety Programs Annual Report.
21. From the Commission on Small Business Advocacy: From the Kentucky Business One-Stop Portal Advisory Committee: 2013 Report Assessment and Recommendations.
22. From the Kentucky Legislative Ethics Commission: FY 13 Annual Report.
23. From the Kentucky Council on Postsecondary Education: 2011-12 Accountability Report.
24. From the Justice and Public Safety Cabinet: Child Fatality and Near Fatality External Review Panel Annual Report.
25. From the Auditor of Public Accounts: Report of the Audit of the Office of the Kentucky Health Benefit Exchange Kentucky Access Program.
Other Business: Discussion of presentations made by NCSL and Hannah Group at November 6, 2013 meeting
Speaker Stumbo recognized President Stivers.
President Stivers said that, in the last LRC meeting, there were two presentations about internal audit reviews and pay and compensation. When the agenda came out, discussion of the presentations was not placed on it, and the minutes reflect that that was something they had agreed to pass. He said that leadership staff had been working with NCSL to make a proposal for an audit and review, and to begin the process of taking applications and advertising the Director’s position of the LRC. Senator Stivers said the Speaker’s general counsel had also been given the new proposal to review. Earlier that week, NCSL had given a pricing on the audit, and it was delivered as soon as it was received to the Speaker’s office. It would be his motion that LRC retain NCSL, in conformity with its presentation and proposal that was submitted to the LRC, and priced and distributed, to conduct a performance audit of the LRC, in accordance with this revised proposal. The motion was seconded by Senator Thayer.
Speaker Stumbo asked if there was a document that reflected the proposal.
President Stivers said copies conveying the substance of the proposal and the pricing that was received this week were being handed out by staff.
Speaker Stumbo asked if it was the same document that he had received the day before.
President Stivers said he believed the document was received the prior week but that the compensation package had been transmitted within the past two days.
Speaker Stumbo said he understood the motion was to adopt the document that was handed out.
President Stivers clarified that the motion is to retain the NCSL to perform the audit in conformity with the current document and the proposal that was revised from the last LRC meeting, and delivered to his office the previous week. He said that the substance was not new from what NCSL had already presented to LRC, but that it had been revised and narrowed.
Speaker Stumbo called for a second on the motion to which Senator Thayer responded. Speaker Stumbo recognized Representative Clark for discussion on the motion.
Representative Clark said that he thinks they all want to move the process along, but he was concerned that he there was no real structure relating to compensation for the LRC employees, how employees can advance, how employees can be helped with their career ladder and path, and how employees can be retained. He said this needs to be done to let LRC employees know that the Commission does is trying to enhance what is going on.
Speaker Stumbo then recognized President Stivers.
President Stivers said he did not disagree or agree with Representative Clark. He said it is appropriate to finish the proposed study before looking at the other issues. He said that, if they do not proceed with the study, they will miss an important opportunity.
Speaker Stumbo said the original proposal of October 13 had apparently been modified by the recent proposal, most particularly to delete the staff compensation and classification study, to which Representative Clark had alluded. Speaker Stumbo asked why this had been done.
President Stivers said LRC needed to define the appropriate agency model. If it is an appropriate model, then a type of staff compensation issue and other issues would be addressed. NCSL may recommend that LRC to look at differing models. He said that a human resources study that examined compensation, performance, hiring, firings, and promotions at this time might then need to be repeated.
Speaker Stumbo recognized Senator Seum.
Senator Seum said that this is something that a new director of LRC would want to be part of.
There being no further discussion, a roll call vote was taken, and the motion passed with nine yes votes, five no votes, and one pass.
Representative Clark asked to explain his vote after voting no. He said they have to send a signal to LRC employees that the members are concerned about them and concerned about their career ladder. He did not know why both studies could take place in one proposal.
Speaker Stumbo also asked to explain his vote after voting no. He said he thinks they all want to do the same thing and use this opportunity to create a stronger institutional foundation. He said it appeared that NCSL would simply conduct interviews. Speaker Stumbo said he agrees with Representative Clark that, even though employees were not under the members’ direct control, the complaint he was hearing most often from nonpartisan staff was that there was not a structured pay scale consistent with moving up the ladder based upon performance and regular performance audits. He thinks if they are going to address any morale problem at LRC that a human resources person should be contacted.
There being no further business, the meeting was adjourned.