Call to Order and Roll Call
The 555th meeting of the Legislative Research Commission was held on Wednesday, June 7, 2017, at 3:30 PM, at the Northern Kentucky Convention Center. Senator Robert Stivers II, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Robert Stivers II, Co-Chair; Representative Jeff Hoover, Co-Chair; Senators David P. Givens, Jimmy Higdon, Ray S. Jones II, Dorsey Ridley, Dan "Malano" Seum, and Damon Thayer; Representatives Rocky Adkins, Kevin D. Bratcher, Dennis Keene, David Osborne, Jonathan Shell, and Wilson Stone.
LRC Staff: David Byerman, Robert Jenkins and Christy Glass.
There being a quorum, Senator Robert Stivers called the meeting to order.
At that time Senator Thayer welcomed new members to the Commission, and noted that this is the first LRC meeting since Leader Hoover became Speaker Hoover, and Republicans became a majority on the LRC for the first time in history. Senator Thayer welcomed the five members of Republican leadership to the LRC, and he also welcomed new LRC members Senator Dorsey Ridley, Representative Dennis Keene, and Representative Wilson Stone.
Senator Stivers asked that members look over the agenda, which was previously distributed prior to the meeting, which are all the actions that were taken after the October 5, 2016, meeting. The actions include President Stivers’ approval, as well as then Speaker Stumbo and now Speaker Hoover. President Stivers explained to the new members that they generally ask for a singular motion for ratification of the actions that he and the Speaker had approved.
President Stivers called for a motion to approve the minutes of the October 5, 2016, meeting; accept and refer as indicated items A. through K. under Staff and Committee Reports; refer prefiled bills and administrative regulations as indicated and approve items A. through R. under New Business; and accept and refer as indicated items 1. through 96. under Communications.
A motion was made by Senator Givens and seconded by Representative Hoover. Senator Stivers 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 October 5, 2016, meeting were approved.
STAFF AND COMMITTEE REPORTS
A. Information requests for October, November, and December 2016, and January, February, March, April, and May 2017.
B. Committee Activity Reports for October, November, and December 2016, and January, February, March and April 2017.
C. Report of the Administrative Regulation Review Subcommittee meetings of October 11, November 7, and December 13, 2016, and January 17, February 10, March 6, April 11, and May 11, 2017.
D. Committee review of the administrative regulations by the Interim Joint Committee on Education during its meetings of October 10 and November 14, 2016, and January 30, 2017.
E. Committee review of the administrative regulations by the Interim Joint Committee on Health and Welfare during its meetings of October 19, November 16, and December 14, 2016, and January 18, 2017.
F. From Senator Max Wise and Representative Russ Meyer, Co-Chairs of the Government Nonprofit Contracting Task Force: Memorandum submitting a Preliminary Report of the Government and Nonprofit Contracting Task Force.
G. From Senator Jared Carpenter and Representative Fitz Steele, Co-Chairs of the Federal Environmental Regulation Impact Assessment Task Force: Memorandum submitting Final Action of the Federal Environmental Regulation Impact Assessment Task Force.
H. From Senator Jared Carpenter and Representative Fitz Steele, Co-Chairs of the Free-Roaming Horse Task Force: Memorandum submitting the Final Report of the Free-Roaming Horse Task Force.
I. From Teresa Arnold, Deputy Director for Research and Communications: Report of the 2016 Workers’ Compensation Task Force.
J. From Teresa Arnold, Deputy Director for Research and Communications: Report of the Government Nonprofit Contracting Task Force.
K. Committee Review of FY 2017 Small Cities Community Development Block Grant and Section 108 Loan Guarantee Program Application by the Senate Standing Committee on State and Local Government and the House Standing Committee on Local Government during its meeting on February 15, 2017.
NEW BUSINESS
A. Referral of prefiled bills to the following committees: BR 38 (an act relating to Kentucky school bus drivers) and BR 39 (an act relating to school bus drivers) to Education.
B. Referral of administrative regulations to the following committees for secondary review pursuant to KRS 13A.290(6): 907 KAR 1:065 (Payments for price-based nursing facility services) to Appropriations and Revenue; 16 KAR 6:020 (Assessment requirements for occupation-based career and technical education teachers to Education; 201 KAR 20:056 (Advanced practice registered nurse license and certification requirements), 201 KAR 20:057 (Scope and standards of practice of advanced practice registered nurses), 900 KAR 10:041 (Repeal of 900 KAR 10:040 and 900 KAR 10:050), 902 KAR 2:060 (Immunization schedules for attending child day care centers, certified family child care homes, other licensed facilities which care for children, preschool programs, and public and private primary and second schools) and 902 KAR 21:030 (Pediatric Cancer Research and Treatment Grant Program) to Health and Welfare and Family Services; 501 KAR 6:040 (Kentucky State Penitentiary) to Judiciary; 301 KAR 2:075 (Wildlife rehabilitation permit); 301 KAR 2:083 (Holding and intrastate transportation of captive cervids) and 301 KAR 2:178 (Deer hunting on Wildlife Management Areas, state parks, other public lands and federally controlled areas) to Natural Resources and Energy; 601 KAR 1:018 (Special overweight or over dimensional motor vehicle load permits) to Transportation.
C. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum updating the membership of the 2016 Free-Roaming Horse Task Force.
D. From Senate President Robert Stivers and House Speaker Gregory D. Stumbo: Memorandum appointing Kent Westberry to replace Henry Stephens, Jr., as a full Commissioner to the National Conference of Commissioners on Uniform State Laws.
E. From Senate President Robert Stivers and House Speaker Jeff Hoover: Memorandum authorizing and approving the organization of the Tennessee Valley Authority Caucus
F. From Senate President Robert Stivers and House Speaker Jeff Hoover: Memorandum appointing David Rust to the Local Superintendents Advisory Council.
G. From Senate President Robert Stivers and House Speaker Jeff Hoover: Memorandum appointing Tony Goetz to the Kentucky Legislative Ethics Commission.
H. From Senator Joe Bowen and Representative Brian Linder, Co-Chairs of the Public Pension Oversight Board: Memorandum requesting approval and authorization to Expend Funds to Conduct an Actuarial Review/Audit Pursuant to KRS 7A.250.
I. From Senator Whitney Westerfield and Representative Joseph M. Fischer, Co-Chairs of the Interim Joint Committee on Judiciary: Memorandum requesting approval to meet on June 7, in conjunction with the Northern Kentucky Chamber of Commerce event, rather than the regularly scheduled meeting date of June 2. There are six (6) potential conflicts.
J. From Senate President Robert Stivers and House Speaker Jeff Hoover: Memorandum authorizing and approving the 2017 Interim Joint Committee and Budget Review Subcommittee Alignments.
K. From Senate President Robert Stivers and House Speaker Jeff Hoover: Memorandum authorizing and approving the 2017 Interim Joint Committee Regular Meeting Schedule.
L. From Senator Whitney Westerfield and Representative Joseph M. Fischer, Co-Chairs of the Interim Joint Committee on Judiciary: Memorandum requesting approval to meet on September 15, rather than the regularly scheduled meeting date of September 1. There are no apparent conflicts.
M. From Senator Alice Forgy Kerr, Representative Diane St. Onge, and Representative Tommy Turner, Co-Chairs of the Interim Joint Committee on Tourism, Small Business, and Information Technology: Memorandum requesting approval to meet on June 7, in conjunction with the Northern Kentucky Chamber of Commerce event, rather than the regularly scheduled meeting date of June 15. There are three (3) potential conflicts. The memorandum also is requesting approval to meet on July 5, rather than the regular meeting date of July 28. There are three (3) potential conflicts.
N. From Senator Alice Forgy Kerr and Representative Jim DeCesare, Co-Chairs of the Interim Joint Committee on Economic Development and Workforce Investment: Memorandum requesting approval to meet on July 5, rather than the regularly scheduled meeting date of July 28. There are two (2) potential conflicts.
O. From Senator John Schickel and Representative Adam Koenig, Co-Chairs of the Interim Joint Committee on Licensing, Occupations, and Administrative Regulations: Memorandum requesting approval to meet on June 7, in conjunction with the Northern Kentucky Chamber of Commerce event, rather than the regular meeting date of June 9. There are nine (9) potential conflicts
P. From Senator Chris McDaniel and Representative Steven Rudy, Co-Chairs of the Interim Joint Committee on Appropriations and Revenue: Memorandum requesting approval to meet on June 7, in conjunction with the Northern Kentucky Chamber of Commerce event, rather than the regular meeting date of June 22; and requesting approval to meet on August 24, in conjunction with the Kentucky State Fair, rather than the regular meeting date of August 29. There are no apparent conflicts.
Q. From Senator Chris McDaniel and Representative Steven Rudy, Co-Chairs of the Interim Joint Committee on Appropriations and Revenue: Memorandum requesting approval and appointing membership to the Subcommittee on 2018-2020 Budget Preparation and Submission.
R. From Senate President Robert Stivers and House Speaker Jeff Hoover: Memorandum authorizing adoption of the jurisdiction of Interim Joint Committees.
COMMUNICATIONS
1. From Senator Danny Carroll and Representative Lynn Bechler, Co-Chairs of the Program Review and Investigations Committee: Memorandum regarding opportunity for appointment of ex officio members for particular studies.
2. From the Office of the Attorney General: Constitutional Challenge Report for the months of August, September, October, November and December 2016, and January, February, March and April 2017.
3. From the Finance and Administration Cabinet: Monthly Investment Income Report for the months of September, October, November and December 2016, and January, February, March, and April 2017.
4. 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 3, 4, 5, 6, 7, 8, 9, and 10, and year-to-date activity for the period of July 1, 2016, through April 30, 2017.
5. From the Kentucky Employers’ Mutual Insurance Authority: 2017 Administrative Budget.
6. From the Cabinet for Health and Family Services: 2016 Charitable Health Providers Registered with the Cabinet for Health and Family Services.
7. From the School Facilities Construction Commission: FY 2016 Report of the Emergency and Targeted Investment Fund’s activities.
8. From the Department of Public Advocacy: FY 2016 Annual Litigation Report.
9. From the Department for Local Government: 2017 Special Purpose Governmental Entities Compliance Report.
10. From the Teachers’ Retirement System of Kentucky: FY 2016 Annual Report.
11. From the Teachers’ Retirement System of Kentucky: FY 2016 In-State Investments Report.
12. From the Personnel Cabinet: Personnel Cabinet Quarterly Report as of September 30, and December 31, 2016, and March 31, 2017, which lists all employers holding more than one state position
13. From the Personnel Cabinet: Personnel Cabinet Quarterly Report as of September 30, and December 31, 2016, and March 31, 2017
14. From the Kentucky Public Transportation Infrastructure Authority: FY 2016 Operating and Financial Statement
15. From the Cabinet for Economic Development: FY 2016 Linked Deposit Loan Investment Program Annual Report.
16. From the Kentucky Personnel Cabinet: Executive Summary of the Kentucky Employees Health Plan Annual Report.
17. From the Cabinet for Economic Development: Construction activity reports for each loan approved as of the quarters ending September 30, December 31, 2016, and March 31, 2017.
18. From the Cabinet for Health and Family Services, Department for Community Based Services: Response to Citizen Review Panel 2016 Annual Report.
19. From the Finance and Administration Cabinet, Department of Revenue: FY 2016 Disaster Relief Sales and Use Tax Refund Totals.
20. From the Finance and Administration Cabinet, Commonwealth Office of Technology: Personal Information Security and Breach Notification Annual Report.
21. From the Kentucky Higher Education Assistance Authority: FY 2016 Annual Actuarial Valuation of the Prepaid Tuition Trust Fund for Kentucky’s Affordable Prepaid Tuition (KAPT).
22. From the Cabinet for Health and Family Services: FY 2016 Commission on Services and Supports for Individuals with Intellectual and Other Developmental Disabilities.
23. From the Tourism, Arts and Heritage Cabinet, Kentucky Department of Fish and Wildlife Resources: FY 2016 Annual Report on Law Enforcement Division Training.
24. From the Cabinet for Economic Development: FY 2016 Annual Reports.
25. From the University of Kentucky: FY 2016 Kentucky Interagency Groundwater Monitoring Network Annual Report.
26. From the Cabinet for Health and Family Services: 2016 Public Health Child Fatality Report.
27. From the Kentucky Employers’ Mutual Insurance Authority: Statement of Assets, Liabilities, and Policyholder Equity; Statement of Income; and Statement of Solvency as of September 30, 2016, and March 31, 2017.
28. From the Kentucky Employers’ Mutual Insurance Authority: Quarterly Statement and Financial Status for the periods ending September 30, 2016, and March 31, 2017.
29. From the Cabinet for Health and Family Services: 2016 Annual Report of Kentucky Child Victims of Human Trafficking.
30. From the Teachers’ Retirement System of Kentucky: FY 2016 Report of the Actuary on the Annual Valuation of the Retiree Medical and Life Insurance Plans, and Report of the Actuary on the Annual Valuation.
31. From the Kentucky Commission on Human Rights: 2016 Annual Report.
32. From the Kentucky Council on Postsecondary Education: 2016 Optometry Report
33. From the Kentucky Legislative Ethics Commission: FY 2016 Annual Report.
34. From the Department of Revenue, Division of Corporation Tax: FY 2016 Energy Efficiency Products Credits Claimed Report.
35. From the Department of Revenue, Division of Corporation Tax: FY 2016 Energy Star Home and Energy Star Manufactured Home Credits Claimed Report
36. From the Energy and Environment Cabinet: Technologically Enhanced Naturally Occurring Radioactive Materials (TENORM) Associated with Oil and Gas Activities.
37. From the Commission on Small Business Advocacy: 2016 Kentucky Business One Stop Portal Annual Report
38. From the Cabinet for Health and Family Services: SWIFT Adoption Teams Report for the third and fourth quarters of 2016, and the first quarter of 2017.
39. From the Kentucky Retirement Systems: FY 2015 and FY 2016 Financial Statements and Supplementary Information.
40. From the Justice and Public Safety Cabinet: 2016 Child Fatality and Near Fatality External Review Panel Annual Report.
41. From the Office of the Attorney General: 2015-2016 County Attorney Traffic Safety Program Annual Report.
42. From the Cabinet for Health and Family Services, Department for Community Based Services: 2016 Statewide Strategic Planning Committee for Children in Placement Annual Report.
43. From the Cabinet for Health and Family Services, Department for Community Based Services: 2016 Annual Report on Committed Children.
44. From the Kentucky Personnel Board: FY 2016 Annual Report.
45. From the Kentucky Personnel Cabinet: 2016 Annual Report of the Kentucky Group Health Insurance Board.
46. From the Department of Education: FY 2015-2016 Efficient School Design Annual Report.
47. From Northern Kentucky University: FY 2015 Annual Financial Report.
48. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Kentucky Heritage Land Conservation Fund.
49. From the Auditor of Public Accounts: FFY 2015 Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Batten & Batten, Inc.
50. From the Auditor of Public Accounts: FFY 2015 Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Crescent Hill Child Care, Inc.
51. From the Auditor of Public Accounts: FFY 2015 Independent Accountant’s Report on Applying Agreed-Upon Procedures to the Kentucky Department of Education, Southside Christian Day Care.
52. From the Auditor of Public Accounts: Agreed-Upon Procedures Engagement of the Kentucky Office for the Blind’s Administration of the McDowell Center’s Adult Education Grant for the Period July 1, 2014, through June 30, 2015.
53. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Kentucky River Authority.
54. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Kentucky Artisan Center at Berea.
55. From the Auditor of Public Accounts: Examination of Certain Policies, Procedures, Controls, and Financial Activity for the City of Irvine.
56. From the Auditor of Public Accounts: Report of the Audit of the Kentucky Lottery Corporation for the years ended June 30, 2015, and June 30, 2016.
57. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Cabinet for Health and Family Services Breast Cancer Research and Education Trust Fund.
58. From the Auditor of Public Accounts: FYS 2015-2016 Report of the Audit of the Kentucky Public Employee Health Insurance Program.
59. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Kentucky Department of Agriculture Spay and Neuter Program.
60. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Kentucky Judicial Form Retirement System.
61. From the University of Kentucky: Letter providing the link to the 2016 Audited Financial Statements of the University of Kentucky and its affiliated corporations, http://www.uky.edu/EVPFA/Controller/finst.htm.
62. From the Department of Criminal Justice Training: 2016 Annual Carrying Concealed Deadly Weapons Report.
63. From the Cabinet for Health and Family Services: FY 2016 Domestic Violence Batterer Intervention Provider Program Report.
64. From the Cabinet for Health and Family Services: FY 2016 Kentucky Elder Abuse Annual Report.
65. From the Cabinet for Health and Family Services: Social Service Worker Caseload Averages Reporting.
66. From the Personnel Cabinet: Semi-Annual Reports, which lists all filled positions, as of September 30, 2016, and March 1, 2017.
67. From the Kentucky Law Enforcement Council: 2016 Annual Report on Mandatory Training (Reports attached.)
68. From the Energy and Environment Cabinet: CY 2016 Waste Tire Program Report.
69. From Murray State University: 2016 Annual Financial Report.
70. From the Finance and Administration Cabinet: Contract Workers reports for the periods of July 1, 2014 through June 30, 2015, and July 1, 2015, through March 31, 2016.
71. From the Court Appointed Special Advocates for Children: 2017 Biennial Report.
72. From the Justice and Public Safety Cabinet: FY 2016 SMART Program Annual Report.
73. From the Auditor of Public Accounts: FY 2016 Report of the Statewide Single Audit of the Commonwealth of Kentucky, Volumes I and II.
74. From the Administrative Office of the Courts: 2016 Citizen Foster Care Review Board Annual Report.
75. From the Finance and Administration Cabinet: 2016 Kentucky Comprehensive Annual Financial Report.
76. From the Kentucky Employers’ Mutual Insurance Authority: Annual Statement and Financial Status for the year ended December 31, 2016.
77. From the Louisville Firefighters Pension Fund: 2017 Actuarial Report.
78. From the Cabinet for Health and Family Services: 2017 Kentucky Diabetes Report.
79. From the Louisville Policemen’s Retirement Fund: 2016 Actuarial Valuation and Report.
80. From the Auditor of Public Accounts: FY 2016 Report on Compliance with Civil Rights Laws Including Agency Title VI Implementation Plans, Updates, and Compliance Reports.
81. From the Cabinet for Health and Family Services: 2016 Kentucky Traumatic Brain Injury Trust Fund Board of Directors Annual Report.
82. From the Kentucky Employers’ Mutual Insurance Authority: 2016 Management’s Discussion and Analysis with Supplementary Schedules.
83. From Kentucky Employers Mutual Insurance: Statutory Basis Financial Statements and Supplementary Information Report of Independent Auditors for the years ended December 31, 2016, and 2015.
84. From the Kentucky Judicial Retirement System: Kentucky Judicial Retirement Plan GASB Disclosure Report as of July 1, 2016.
85. From the Kentucky Judicial Retirement System: Kentucky Judicial Retirement Plan – Hybrid Tier GASB Disclosure Report as of July 1, 2016.
86. From the Kentucky Legislators’ Retirement Plan: Kentucky Legislators Retirement Plan GASB Disclosure Report as of July 1, 2016.
87. From the Kentucky Legislators’ Retirement Plan: Kentucky Legislators Retirement Plan – Hybrid Plan GASB Disclosure Report as of July 1, 2016.
88. From the Auditor of Public Accounts: FY 2016 Report of the Audit of the Kentucky Judicial Form Retirement System.
89. From the Cabinet for Health and Family Services: FYS 2015-2016 Kentucky Health Care Improvement Authority Combined Annual Report.
90. From the Cabinet for Health and Family Services: 2016 Kentucky Spinal Cord and Head Injury Research Board Annual Report.
91. From the Cabinet for Health and Family Services: 2016 Pediatric Cancer Research Trust Fund Annual Report.
92.
From the Cabinet for Health and Family Services: FY 16 Public Health
Breast Cancer Research and Education Trust Fund Report.
From the Kentucky Department of Agriculture: 2017 Kentucky Equine Health and
Welfare Council Report.
93. From the Finance and Administration Cabinet, Department of Revenue, Office of Property Valuation: 2017 Summary of Property Assessments Exempt from Taxation.
94. From the Auditor of Public Accounts: Report of the Audit of the Louisville Arena Authority, Inc. for the years ended December 31, 2016, and 2015.
95. From the Auditor of Public Accounts: Report of the Audit of the Kentucky Department of Fish and Wildlife Resources for FY 2016, along with Governance and Management Representation letter.
Senator Stivers asked for discussion on any new business or anything that members want to be brought before the LRC that is not currently within the prior communications.
The chair recognized Representative Keene. Representative Keene said he appreciated the President giving him the opportunity, and that he wanted to make a note of something that he had experienced. He said that he does recollect in his fourteen years of service that he has done many recommendation letters for staff of LRC, but in the past several weeks he has written two letters of recommendation at the request of staff. He said that it seems LRC has a staff morale issue, and he wanted Commission members to be aware of it.
President Stivers thanked Representative Keene, and said he was not sure what he meant by doing two letters of recommendation for staff members.
Representative Keene explained that the staff members were trying to obtain other jobs and to leave LRC.
President Stivers said he was not clear if they were recommendations to be hired at LRC or recommendations to take jobs in other places. He said he appreciated the comment, and thanked Representative Keene for bringing it to their attention. President Stivers said as to hiring—to make sure there is total impartiality, and that there is not preference perceived either to party or to chamber for the new members, that members prohibit themselves from being involved in those types of hiring decisions, and that is why they have a Director through the respective people, because the last thing they want to do is have someone to request something that is perceived as bias towards a chamber or towards a party. President Stivers stated that is why he wanted to clarify what Representative Keene’s statement was.
President Stivers said he appreciates the fact that they are in a new dynamic, and that they will continue to operate as they have in the past. The next LRC meeting will be chaired by the Speaker. President Stivers stated that they really need to look at what they are doing in putting together the LRC budget, considering the times they are in and the needs that they have to fulfil pension obligations. He asked that over the next days, weeks, and months, members look into how they can more efficiently run the legislative branch of government. President Stivers stated that the Legislative Branch is a co-equal branch, and even though it is small in proportion, he thinks from a perception standpoint that the members should do what they can to show that they are serious about resolving issues with the KERS, KTRS, and the CERS Pension Plans.
There being no further business, the meeting was adjourned.