Call to Order and Roll Call
The 554th meeting of the Legislative Research Commission was held on Wednesday, October 5, 2016, 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 Julian M. Carroll, David P. Givens, Ray S. Jones II, Gerald A. Neal, Dan "Malano" Seum, and Damon Thayer; Representatives Rocky Adkins, Johnny Bell, Jeff Hoover, Stan Lee, and Jody Richards.
LRC Staff: David Byerman and Christy Glass.
There being a quorum, Representative Greg Stumbo called for a motion to approve the minutes of the August 3, 2016, meeting, accept and refer as indicated items A. through D. under Staff and Committee reports, refer prefiled bills and administrative regulations as indicated and approve items A. though J. under New Business, and accept and refer as indicated items 1. through 53. under Communications.
A motion was made by Representative Hoover and seconded by Representative Adkins. Representative Stumbo asked for discussion. Seeing none, a roll call vote was taken, and the motion passed unanimously. The following items were approved, accepted, or referred.
The minutes of the August 3, 2016, meeting were approved.
STAFF AND COMMITTEE REPORTS
A. Information requests for July, August, and September 2016.
B. Committee Activity Reports for August and September 2016.
C. Report of the Administrative Regulation Review Subcommittee meetings of August 4 and September 13, 2016.
D. Committee review of the administrative regulations by the Interim Joint Committee on Health and Welfare during its meetings of August 17 and September 21, 2016.
NEW BUSINESS
A. Referral of prefiled bills to the following committees: BR 166 (resolution urging the United States Environment Protection Agency to prioritize compliance assistance and environmental protection over economically ruinous regulatory enforcement practices) to Agriculture; BR 74 (relating to promise zone tax incentives), BR 95 (relating to a tax credit for volunteer firefighters), BR 110 (proposing an amendment to Section 170 of the Constitution of Kentucky relating to exemptions from taxation), BR 141 (relating to the property tax on unmined coal), BR 142 (relating to coal severance revenues), BR 143 (relating to sales and use tax holidays and declaring an emergency), BR 148 (relating to legislative procedures for state fiscal measures), BR 157 (relating to the Bowling Green Veterans Center, making an appropriation therefor, and declaring an emergency), BR 179 (relating to the law enforcement and firefighters foundation programs and making an appropriation therefor), BR 183 (relating to greater public awareness of taxes levied by school districts), BR 184 (relating to the property tax on unmined coal), BR 185 (relating to the use of local government economic assistance fund moneys), BR 225 (relating to promise zone tax incentives) to Appropriations and Revenue; BR 80 (relating to the Kentucky educational excellence scholarship), BR 132 (relating to superintendent screening committee membership), BR 145 (relating to a board of directors of a college within the Kentucky Community and Technical College System), BR 150 (relating to school notification of persons authorized to contact or remove a child) to Education; BR 176 (relating to nuclear power) to Energy; BR 59 (relating to prescriptive authority for physician assistants), BR 64 (resolution decrying the lack of services and specialized services for medically fragile young adults with intellectual and developmental disabilities and directing the establishment of the Task Force on Subacute Care for Medically Fragile Adults), BR 134 (relating to kinship care), BR 135 (relating to child abuse and neglect), BR 180 (relating to the tracking of drug convictions) to Health and Welfare; BR 97 (relating to general principles of justification), BR 125 (relating to day reporting programs), BR 147 (relating to sex offender registrants), BR 149 (relating to foreign law), BR 186 (relating to firearms), BR 195 (relating to juries), BR 196 (relating to juror pay), BR 209 (relating to juries), BR 210 (relating to promise zone tax incentives) to Judiciary; BR 138 (relating to wages) to Labor and Industry; BR 81 (relating to spas), BR 152 (relating to pawnbrokers), to Licensing and Occupations; BR 35 (relating to the filing deadline for candidates running for a seat in the General Assembly), BR 62 (relating to travel required for certain state employees), BR 63 (proposing an amendment to Section 32 of the Constitution of Kentucky relating to terms of members of the General Assembly), BR 66 (relating to retirement benefits for legislators), BR 86 (relating to the independence and transparency of the board of trustees of the Kentucky Retirement Systems and declaring an emergency), BR 103 (proposing an amendment to Section 170 of the Constitution of Kentucky relating to exemptions from taxation), BR 112 (proposing an amendment to Section 32 of the Constitution of Kentucky relating to terms of members of the General Assembly), BR 124 (relating to public procurement), BR 151 (proposing an amendment to Section 42 of the Constitution of Kentucky relating to compensation for members of the General Assembly), BR 191 (relating to retirement benefits for legislators) to State Government; BR 111 (relating to operator’s license testing), BR 123 (relating to railroads) to Transportation.
B. Referral of administrative regulations to the following committees for secondary review pursuant to KRS 13A.290(6): 103 KAR 15:180 & E (Kentucky new markets development program tax credit) to Appropriations and Revenue; 808 KAR 1:081 (Repeal of 808 KAR 1:080 and 808 KAR 1:100), 808 KAR 1:160 (Fees for services rendered to banks and trust companies), 808 KAR 4:021 (Repeal of 808 KAR 4:020), 808 KAR 11:011 (Repeal of 808 KAR 11:010), 808 KAR 12:021 (Licensing and registration) and 808 KAR 12:055 (Uniform standards for mortgage loan processor applicant employee background checks) to Banking and Insurance; 11 KAR 15:090 (Kentucky Educational Excellence Scholarship (KEES) program), 102 KAR 1:165 (Surviving children’s benefits), 102 KAR 1:290 (Disability retirement application, review, and examinations), 102 KAR 1:320 (Qualified domestic relations orders), 702 KAR 7:065 (Designation of agent to manage middle and high school interscholastic athletics), 703 KAR 4:041 (Repeal of 703 KAR 4:040) and 704 KAR 3:342 (Repeal of 704 KAR 3:340) to Education; 201 KAR 22:045 (Continued competency requirements and procedures), 201 KAR 32:030 (Fees), 910 KAR 1:210 (Kentucky long-term care ombudsman program) and 921 KAR 1:420 (Child support distribution) to Health and Welfare; 201 KAR 30:030 (Types of appraisers required in federally related transactions; certification and licensure), 201 KAR 45:110 (Supervision and work experience), 804 KAR 4:381 (Repeal of 804 KAR 4:380), 804 KAR 4:390 (License renewals), 804 KAR 4:400 & E (ABC basic application and renewal form incorporated by reference) and 804 KAR 4:410 & E (Special applications and registration forms incorporated by reference) to Licensing and Occupations; 301 KAR 1:015 (Boat and motor restrictions), 301 KAR 1:201 (Taking of fish by traditional fishing methods) and 301 KAR 2:132 (Elk quota hunts, elk depredation permits, landowner cooperator permits, and voucher cooperator permits) to Natural Resources and Environment; 30 KAR 7:010 (Standard form for occupational license fee return) to State Government.
C. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum authorizing and appointing membership to the 2016 Free-Roaming Horse Task Force
D. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum updating the membership of the 2016 Free-Roaming Horse Task Force.
E. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum updating the membership of the 2016 Free-Roaming Horse Task Force.
F. From Senator John Schickel and Representative Dennis Keene, Co-Chairs of the Interim Joint Committee on Licensing and Occupations: Memorandum requesting approval to meet on November 28, rather than the regularly scheduled meeting date of November 11, which is Veterans’ Day. There are no apparent conflicts.
G. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum updating the membership to the Government Nonprofit Contracting Task Force.
H. From Director David Byerman: Memorandum requesting approval of prefiling deadlines for the 2016 Regular Session.
I. From Senator Paul Hornback and Representative Tom McKee, Co-Chairs of the Interim Joint Committee on Agriculture: Memorandum reauthorizing the membership of the Subcommittee on Rural Issues and the Horse Farming Subcommittee.
J. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum authorizing the appointment of Dr. Phoebe C. Winter and Dr. Marianne Perie to membership of the National Technical Advisory Panel on Assessment and Accountability (NTAPAA).
COMMUNICATIONS
1. From the Finance and Administration Cabinet: Monthly Investment Income Report for the months of July and August 2016.
2. From the Office of the Attorney General: Constitutional Challenge Report for the months of June and July 2016.
3. From the Finance and Administration Cabinet, Office of the Controller: Surtax Receipts Statements for the Law Enforcement and Professional Firefighters Foundation Fund Programs, which reflect activity for Accounting Periods 1 and 2 of BFY 2017 and year-to-date activity for the period of July 1, 2016 through July 31, 2016.
4. From the Personnel Cabinet: Personnel Cabinet Quarterly Reports as of June 30, 2016.
5. From the Cabinet for Economic Development: Construction activity reports for each loan approved as of the quarter ending June 30, 2016.
6. From Kentucky Employers’ Mutual Insurance Authority: Quarterly Statement and Financial Status for the period ending June 30, 2016.
7. From Kentucky Employers’ Mutual Insurance Authority: Statement of Assets, Liabilities, and Policyholder Equity; Statement of Income; and State of Solvency as of June 30, 2016.
8. From the Kentucky Judicial Form Retirement System: Operating Statements of the Judicial Retirement Fund and the Legislators Retirement Fund for FY16; list of investments held by the Fund as of June 30, 2015; and Portfolio Valuations of the Fund as of June 30, 2016.
9. From the Cabinet for Health and Family Services: SWIFT Adoption Teams Report for the second quarter of 2016.
10. From the Cabinet for Health and Family Services: FY16 Statewide Strategic Planning Committee for Children in Placement, Statewide Strategic Plan and Finding and Recommendations.
11. From the Department of Military Affairs, Adjutant General Stephen R. Hogan: Military Assistance Trust Fund State FY16 Annual Report.
12. From the Auditor of Public Accounts: Special Examination of the Buffalo Fire Department, Inc. for the period January 1, 2012, through December 31, 2015.
13. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Big Sandy Community and Technical College’s Administration of Floyd County’s Kentucky Adult Education Grant.
14. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Jessamine County Adult Education’s Administration of Jessamine County’s Kentucky Adult Education Grants.
15. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Johnson County Adult Education-KCTCS’ Administration of Johnson County’s Kentucky Adult Education Grant.
16. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Lawrence County Adult Education’s Administration of Lawrence County’s Kentucky Adult Education Grant.
17. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Todd County Adult Education’s Administration of Todd County’s Kentucky Adult Education Grant.
18. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Whitley County Adult Education’s Administration of Whitley County’s Kentucky Adult Education Grant.
19. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Academy of Learning, Inc. 11189.
20. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Caring Center Corporation DBA: MegaMinds Educare 12047.
21. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Funshine Childcare 12040.
22. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Kinderplay, Inc. 11285.
23. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Little Learners, Inc. 12037.
24. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Kings Kids, Inc. 11101.
25. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Big Blue Bird, LLC 11387.
26. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Excellence in Learning 11424.
27. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Kidz Konnection 11099.
28. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, OMB Circular A-133 Desk Reviews.
29. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Let’s Go Play Academy 11106.
30. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Tot’s LLC, DBA: Tot University 12059.
31. From the Cabinet for Health and Family Services, Office of the Inspector General: FY16 Medicaid Fraud and Abuse Report.
32. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Russell County Adult Education’s Administration of Russell County’s Kentucky Adult Education Grant.
33. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Elizabethtown Community and Technical College’s Administration of Meade County’s Kentucky Adult Education Grant.
34. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the LaRue County Adult Education’s Administration of LaRue County’s Kentucky Adult Education Grant.
35. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Carl D. Perkins Rehabilitation Center’s Kentucky Adult Education Grant.
36. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Newport Adult Learning Center’s Kentucky Adult Education Grant.
37. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Butler County Adult Education’s Administration of Butler County’s Kentucky Adult Education Grant.
38. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, A Little Miracle Child Development Center 11553.
39. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Mac’s Childcare III, LLC 12103.
40. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Nanny’s House Daycare 11497.
41. From the Council on Postsecondary Education: FY16 Ovarian Cancer Screening Annual Report.
42. From the Council on Postsecondary Education: FY16 Annual Report of the Kentucky Lung Cancer Research Program.
43. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Batten & Batten, Inc. 11384.
44. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Crescent Hill Child Care, Inc. 11226.
45. From the Auditor of Public Accounts: Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Southside Christian Day Care 11524.
46. From the Finance and Administration Cabinet, Department of Revenue: 2016 Insurance Premiums Surcharge.
47. From the Cabinet for Health and Family Services: 2016 Annual Child Fatality and Near Fatality Report.
48. From the Cabinet for Health and Family Services: Family Resource and Youth Services Centers Report in which 70 percent or more of the funding level provided by the state is utilized to support the salary of the center director.
49. From the Kentucky Housing Corporation: Kentucky Affordable Housing Trust Fund FY16 Awards.
50. From the Kentucky Board of Medical Licensure: 2016 Annual Report.
51. From the Cabinet for Health and Family Services: 2015 Report of the Hospitalization of Kentucky Long-Term Care Facility Residents Due to Influenza Virus, Pneumococcal Disease, and Associated Complications.
52. 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 2015-August 2016.
53. From the Kentucky Association of Food Banks, Surplus Agricultural Commodities Advisory Committee: FY16 Annual Report of the Farms to Food Banks Program.
Representative Stumbo invited Director Byerman to present the LRC Visual Styling Manual.
Director Byerman said there have been many changes at LRC with communication practices and human resource policies in trying the change the culture at LRC. He stated that now seems the right time to rebrand LRC and change the way it presents itself to the public in its words and publications. LRC has started a new chapter as an agency.
Three months ago, Director Byerman asked Public Information Officer Rob Weber to pull together a multidisciplinary team within LRC representing a variety of different constituencies—OCIT, the print shop, including graphic designers, the research division, and members of the Public Information Office itself—to create a visual styling manual for the agency. He said the manual was based on a similar project that he had developed in Nevada that helped unify all of the communications to look and read consistently, using the same imagery, colors, and fonts.
Director Byerman thanked the following committee for putting together the LRC Visual Styling Manual: Rob Weber, Rebecca Hanchett, and Jeff Fossett from the Public Information Office, Robyn Kemper and Joel Redding from OCIT, Oreta O’Mara and Joe Cox from the Print Shop, and Teresa Arnold, Deputy Director for Research. He gave special recognition to Jenny Noran, who was the architect of the new seal for LRC.
The new seals were unveiled for the Commission to show the new fonts and color palettes, which evoke specific elements of life in Kentucky. Director Byerman indicated this was a three month process and was done at no cost to the taxpayer, was all produced in-house, and will be implemented at no cost. As letterhead, publications, and business cards are depleted, the new graphics and fonts will gradually be implemented within the next six to nine months.
Director Byerman asked for Commission approval of the LRC Visual Styling Manual.
Representative Stumbo thanked Director Byerman and asked for a motion to accept and approve as indicated Item 1. under Other Business, which is the official adoption of the new seal.
A motion was made by Representative Adkins and seconded by Senator Stivers. Representative Stumbo asked for discussion. Seeing none, a roll call vote was taken, and the motion passed unanimously.
Representative Stumbo asked if any other members wished to be recognized, and at that time, Senator Stivers thanked everyone for the well wishes and concerns regarding his back surgery. Senator Stivers asked for a moment of silence in remembrance of Ann Turner Lewis, who had worked at LRC for 20 years in the Senate offices as a non-partisan staff member. Mrs. Lewis, who was 92 years old, slipped and fell the previous weekend and subsequently passed away. A moment of silence was observed.
Senator Stivers distributed a document prepared by Senator Webb regarding the consistency and continuity of the interim joint calendar. He said many members have jobs outside of the General Assembly, and many jobs, trials, and appointments are scheduled three to four months in advance based on the interim committee schedule. Senator Stivers said that Senator Webb brings a very valid and legitimate concern that, when a schedule is proposed and adopted and then there is a change shortly before a scheduled meeting, it makes it very difficult to proceed with legislators’ normal private business activities. Senator Stivers said it is a valid issue and that LRC needs to develop a methodology. He said he thinks the Director has looked at this issue. When LRC sets a schedule, it will try to adhere to it as closely as possible. Senator Stivers said that he believes Director Byerman has sent his proposals to the Speaker, and he does not believe there is any action for LRC to take at this meeting, but as the 2017 session concludes, he hopes that an Interim calendar can be adopted that would help maintain consistency and adherence to a set schedule.
Representative Stumbo said he thinks that is a very good point. He said he would hope that the LRC would be able to do that. He agrees it is becoming more difficult for members to maintain their part-time status and maintain professional obligations that they have in their real lives, and that would be a help.
There being no further business, the meeting was adjourned.