The second semiannual meeting of 2002 of the Special Advisory Commission of Senior Citizens convened on Thursday, November 7, 2002, at 1:00 PM, at the Holiday Inn Capital Plaza, in Frankfort. Robert Veazey, Chair, called the meeting to order.
Present were:
Members: Robert Veazey, Chair; Hugh Adams, Peggy Baldridge, Mabel Ballinger, Elizabeth Billings, Anna Birch, Joe Bishop, J. Boling, Joyce Bruce, Frances Cain, Frank Carlton, Bertha Daniels, Leon Dodge, Randall Donahue, Margie England, Doris Engle, Betty Fay, Finnell Fields, Hallie Folz, Rufus Fugate, Virgil Gilliam, James Halvatgis, Bill Harned, Frank Hatfield, Edna Hawkins, Winford Holt, Daisy Howard Williams, Betty Huff, Phil Hulsman, Bobby Humes, Charles Jackson, Mildred Jackson, Edgar Jamison, Argene Jones, W Keith, W. D. Kelley, Dorothy Laganosky, Gayle Lawson, Irving Lipetz, Abby Marlatt, Warren Massey, Pete McNeill, Gayle Muncy, Elmer Olson, Josephine Osborn, Raymond Osborn, Kenneth Overhults, Norman Pallarito, Jean Phelps, John Polivka, Don Potts, Nancy Purvis, Stanley Ramey, Lillian Rice, Esther Rigby, Jeane Robertson, Mary Robertson, Ray Roundtree, LaVerne Ryan, Don Sarver, Martha Sarver, John Searcy, Clayton Shannon, Berton Sisk, Delma Smith, Fred Smith, Joan Stivers, Pat Sutton, Mary Trimble, Laurel True, Glen Vanoy, Irene Vertrees, Vinson Watts, Edna Westerfield, Lillian Wheeler, Betty Whitehead, Jack Wines, Malcolm Wolford, and Dale Young.
Guests: Representative John Adams, Senator Tom Buford, Representative Gippy Graham, Hart Graves, former Senator Joe Graves, Senator Marshall Long, Sheila Mason-Burton, Representative Charles Siler, Betty P. Wells, and former Representative Dwight Wells.
LRC Staff: Emily Bottoms, Katie Carney, Eric Clark, Janice Clark, Gerard Donovan, Gilmore Dutton, Sally Everman, Rhonda Franklin, Jamie Griffin, Dawn Groves, Doug Huddleston, Linda Hughes, Kathy King, Lou Pierce, Cindy Smith, John Snyder, Mike Sunseri, and David Thomas.
Chairman Veazey welcomed everyone to the 25th anniversary meeting of the Special Advisory Commission of Senior Citizens. Chairman Veazey announced that the afternoon’s meeting had been shortened to accommodate the reception scheduled for 5 p.m. Chairman Veazey stated that there would be no formal program planned for the afternoon’s session, which was scheduled to adjourn by 1:30. Chairman Veazey announced that the subcommittees would begin meeting at 1:45 p.m. in their usual rooms, and should be adjourned by 3:30 p.m.
Chairman Veazey introduced those seated at the head table. He then introduced three new members who were appointed to the Commission since the last meeting. They were as follows:
Ms. Dorothy Laganosky, appointed by the National Association of Retired Federal Employees;
Ms. Daisy Howard Williams, appointed by the FIVCO Area Development District; and
Mr. Dale Young, appointed by AARP.
Chairman Veazey announced that two members had passed away since the last meeting. Mr. Charles E. Fisher passed away on June 10, 2002, and Mr. James V. Stokley passed away on July 15, 2002. He informed the members that resolutions for the two members had been adopted at the Commission’s Executive Committee meeting in October and that a copy had been forwarded to their families. Chairman Veazey stated that copies of both resolutions were in the members’ meeting folders.
Chairman Veazey recognized Mr. Gilmore Dutton, Commission Staff Coordinator, for some housekeeping items and announcements. After Mr. Dutton’s remarks, Chairman Veazey announced that the reception would commence at 5 p.m. in the Caucus Room and that dinner would commence at 6 p.m. in the Assembly Ballroom. Chairman Veazey adjourned the opening general session to allow the Subcommittees to convene.
Chairman Veazey convened the dinner session and welcomed everyone and their guests. Chairman Veazey recognized Vice Chair Joe Bishop to give the invocation. Chairman Veazey introduced the head tables and the table of honor. After dinner Chairman Veazey recognized Mr. Dutton for the introduction of former members of the Commission, representatives from the nominating authorities, and the legislative hosts for the evening. Chairman Veazey recognized William A. Miller, Staff Coordinator Emeritus for a history of Mr. Vic Hellard’s involvement with the Commission.
Mr. Miller highlighted Mr. Hellard’s service to the Commission as Director of the Legislative Research Commission. He also talked about the Commission’s early history and structure. After Mr. Miller’s remarks, he displayed a Waterford crystal bowl which would be presented, on a later date, to Ms. Ellen G. Hellard in tribute to her late husband’s work in support of the Special Advisory Commission of Senior Citizens.
Chairman Veazey thanked Mr. Miller for his kind words and for sharing some of Mr. Hellard’s experiences with the Commission. Chairman Veazey introduced Representative Jody Richards, Speaker of the House and Co-Chair of the Legislative Research Commission.
Speaker Richards congratulated the Commission on its twenty-fifth anniversary. Speaker Richards recognized Ms. Gayle Lawson for being the only Charter member currently on the Commission. He then recognized his fellow legislators for supporting the Commission, and for being here tonight. He also thanked the current members of the Commission for their recommendations that they submit annually to the General Assembly. Speaker Richards then welcomed the former Commission members and their guests, the nominating authorities, and other special guests that were able to attend the 25th anniversary meeting of the Commission. Speaker Richards also thanked all the members for the example they set for other people, their leadership and involvement in senior citizens issues. He also recognized their commitment to this organization and other senior citizen activities.
Chairman Veazey thanked Speaker Richards for his comments. Chairman Veazey introduced Senator Brett Guthrie, Chairman of the Senate Licensing and Occupations Committee.
Senator Guthrie spoke about how people can leave something behind for the next generation. Senator Guthrie also spoke about what today’s senior citizens can accomplish and how they can make a difference for future generations. He then thanked the Commission members for all that they have contributed to today’s society.
Chairman Veazey thanked Speaker Richards and Senator Guthrie for their kind comments. Chairman Veazey then introduced Mr. Robert S. Sherman, the Director of the Legislative Research Commission.
Mr. Sherman talked about the Commission’s recommendations to the General Assembly and their impact upon the development of legislation. Mr. Sherman said that over the last ten years there have been sixty legislative actions that resulted from the Commission’s recommendations. Mr. Sherman thanked the former and current members for their efforts. He also spoke about the past and current staff that has served the Commission. Over the twenty-five years of the Commission’s existence there have been thirty-eight members of the Legislative Research Commission staff who have worked with the Commission’s subcommittees in addition to their regular jobs with the LRC. Mr. Sherman said the LRC will continue to provide staff and continue its support of the Commission in the years to come.
Chairman Veazey thanked Mr. Sherman for his continued support of the Commission and for his kind words. Chairman Veazey recognized Mr. Dutton to introduce Senator Joseph W. Prather, the guest speaker for the evening and the “Father” of the Special Advisory Commission of Senior Citizens.
Senator Prather told the Commission how happy he was to be at the meeting. Senator Prather recognized Representative Dwight Wells and Senator Joe Graves for their work on the 1977 Legislative Research Commission. He mentioned that the General Assembly was a lot different then than it is today. He stated that the interim committee system was set up in 1968. The system allowed committees to meet and consider issues during the interim between legislative sessions. With the new process in place the General Assembly began to see ordinary citizens coming to Frankfort and lobbying for issues that were of interest to them. During the 1970’s a lot of citizens came to Frankfort to discuss and lobby for issues of interest to the senior citizens of Kentucky.
On October 19, 1977, Senator Prather hosted a legislative listening seminar. Any senior citizen in the state who wished to attend was welcomed. Senator Prather told those assembled for the listening seminar his idea of forming a senior citizen advisory commission, and listed the objectives and guidelines of such a commission.
A proposal was passed by those in attendance at the October 19 seminar, urging Legislators to move forward to create the Special Advisory Commission of Senior Citizens. On November 11, 1977, Senator Prather made a motion during a meeting of the Legislative Research Commission to create the Special Advisory Commission of Senior Citizens. The motion was passed without objection.
Chairman Veazey thanked Senator Prather for his words and for his idea and effort twenty-five years ago, which resulted in the establishment of the Special Advisory Commission of Senior Citizens. Chairman Veazey asked Senator Prather to make a presentation on behalf of the Commission to Ms. Gayle Lawson. Senator Prather presented a citation to Ms. Lawson for her service to the Commission. Ms. Lawson expressed her gratitude and thanked everyone involved in the formation of the Commission, and also thanked Senator Prather for his involvement in the creation of the interim committee system.
Chairman Veazey thanked Senator Prather for making the presentation to Ms. Lawson. Chairman Veazey then made several announcements regarding the next day’s activities, thanked everyone again for coming, and thanked the speakers again for their remarks. Chairman Veazey adjourned the dinner session until the next morning, November 8, 2002.
Following the conclusion of the subcommittee meetings on Friday, November 8, 2002, Chairman Veazey convened the closing general session at 10:15 a.m.
Chairman Veazey introduced those seated at the head table, and then announced that Ms. Elizabeth Billings had been selected as the new coordinator of the FIVCO Regional Coordinating Committee, and that Ms. Pat Sutton had been selected as the new coordinator of the Lincoln Trail Regional Coordinating Committee.
The Commission adopted the following subcommittee reports:
(as reported by Ms. Jeane Robertson, Subcommittee Chair)
The following recommendations were adopted:
(1) That Kentucky provide all seniors with access to affordable prescription drugs and information on how to obtain discounted or free drugs from pharmaceutical companies;
(2) That the General Assembly enact legislation that will continue the funding of the full-time ombudsman program in each Area Development District, after the initial funding has expired in the first biennium;
(3) That the General Assembly reauthorize the Quality Long-Term Care Task Force as created by the 2001 Senate Concurrent Resolution 39 with emphasis on minimum staffing standards in long-term care facilities; and
(4) That the General Assembly recommend the state Office of Inspector General to accept certification by the U.S. Department of Veteran’s Affairs as evidence that a state Veteran’s nursing home is in compliance with all state licensure requirements.
On Thursday, November 7, the subcommittee heard testimony from Senator Dick Roeding and Representative Susan Westrom, co-chairs of the Senior Prescription Drugs Subcommittee, who presented information on the activities of the subcommittee and the various discount drug programs from pharmaceutical companies. It was noted that approximately 158,000 Kentucky seniors do not have prescription drug coverage and 67 percent of senior’s total drug costs are paid out-of-pocket. The legislature will address senior prescription drug coverage during the 2003 General Assembly when the recommendations and findings of the Senior Prescription Drug Subcommittee are completed.
The subcommittee also heard testimony from Bernie Vonderheide, an advocate for nursing home reform. Mr. Vonderheide presented information relating to the quality of nursing home care. Mr. Vonderheide emphasized the need to:
(1) Provide recurring funds to all of the full-time, long-term care ombudsman in each Area Development District;
(2) Implement statewide nursing staff ratios for long-term care facilities; and
(3) Reauthorize the Quality Long-Term Care Task Force that was created by the 2001 General Assembly.
During the Closing General Session Mr. Laurel True moved, and Mr. Bill Harned seconded, to amend the third recommendation of the subcommittee. The motion was to strike the following words from the recommendation, “with emphasis on minimum staffing standards in long-term care facilities.” The motion failed on a vote of the membership.
(as reported by Mr. Frank Carlton, Subcommittee Chair)
The Subcommittee approved the following recommendations:
(1) That the General Assembly place restrictions on predatory lending to prohibit the following:
(a) Flipping, especially on low interest loans,
(b) Financing insurance premiums,
(c) Financing points and fees,
(d) Imposing prepayment penalties,
(e) Requiring balloon payments,
(f) Requiring consumer consent to mandatory arbitration clauses,
(g) Requiring waiver of consumer’s right to participate in a class action suit,
(h) Lending without home ownership counseling,
(i) Lending without considering ability to repay,
(j) Releasing checks to home improvement contractors before the borrower certifies completion of work,
(k) Paying yield spread premiums to the broker, and
(l) Closing a loan at a borrower’s home;
(2) That the General Assembly oppose the deregulation of electricity;
(3) That the Attorney General’s Office use fines from telemarketers being appropriated to educate seniors on consumer affairs; and
(4) That the General Assembly adopt the Attorney General’s Cemetery Task Force Regulations.
On Thursday, November 7, the subcommittee heard testimony from John Rosenberg and Ann Marie Reagan. Mr. Rosenberg and Ms. Reagan both spoke on prohibiting predatory lending.
On Friday, November 8, the subcommittee heard testimony from Dan Yates with the Kentucky Association of Electric Cooperatives, Inc. Mr. Yates addressed the dangers for Kentucky on deregulating electricity.
During the Closing General Session Mr. Bill Cooper, Green River Area Development District, suggested that the Area Agencies on Aging focus on the following areas:
(1) Consumer Protection,
(2) Crime Prevention, and
(3) Elder abuse/elder exploitation.
(as reported by Ms. Esther Rigby, Subcommittee Chair)
The Subcommittee approved the following recommendations:
(1) That the General Assembly adopt BR 129, a primary seat belt law, in the 2003 Regular Session;
(2) That the General Assembly enact legislation requiring young drivers take mandatory driver education courses prior to testing for an operator’s license; and
(3) That the General Assembly adopt BR 132 and BR 133, establishing a paperless auto insurance reporting system, in the 2003 Regular Session.
The subcommittee heard testimony from Mr. Steve Hill, with Rocall, Inc. Mr. Hill provided statistics regarding the safety of the roadways. Mr. Hill stated that much attention is focused on interstates and other four-lane highways, while seventy-five percent of roads in this country are two-lane roads and about eighty-five percent of fatalities occur on these two-lane roads. Mr. Hill presented visual samples of how highway signage, with advanced retroreflectivity, can substantially increase visibility and safety.
The subcommittee heard testimony from Mr. Duane Thomas, with the Kentucky Transportation Cabinet. Mr. Thomas discussed the use of Traffic Control Devises, such as pavement marking, traffic signs, traffic signals, and roadway lighting. Mr. Thomas stated that Kentucky’s elderly population is estimated to increase seventy-five percent by 2020 and the elderly have the highest traffic fatality rate per miles driven and the highest pedestrian fatality rate. Mr. Thomas stressed the importance of receiving reports from citizens who notice problems with traffic control devices, such as damaged signs and tree limbs obscuring signs.
Mr. John Snyder, subcommittee staff, gave an update on prefiled legislation for the 2003 Regular Session of the General Assembly. Mr. Snyder stated that some of the prefiled bills affecting transportation issues are:
(1) Revival of the primary seat belt law;
(2) A measure eliminating state property taxes on automobiles;
(3) A proposal to eliminate some of the driver licensing restrictions placed on non-citizens during the last session; and
(4) A proposal to automate reporting of auto insurance data, eliminating the need for insurance cards.
(as reported by Mr. Ray Roundtree, Subcommittee Chair)
The Subcommittee approved the following recommendations:
(1) That the 2003 General Assembly direct a study to be conducted regarding the long-term cost savings to the Commonwealth if the state should enact a prescription drug program for senior citizens, specifically the savings to the state by affording persons access to drugs in order to prevent or treat chronic illnesses;
(2) That the General Assembly and the Department of Insurance continue efforts to increase the availability of health insurance to senior citizens in Kentucky at affordable and/or justifiable premiums; and
(3) That the Kentucky Department of Insurance and the General Assembly explore and implement new ways to better inform consumers of their rights and more efficient ways to file consumer complaints.
The subcommittee heard testimony from Mr. Dustin Miller and Mr. Prentice Harvey, representatives of State Farm Insurance, and Mr. Greg Kosse and Mr. David Finney, representatives of Farm Bureau Insurance. All four spoke about the increasing rates of homeowner’s insurance. Mr. Harvey stated that the problem with the increasing rates of homeowner’s insurance is not just a problem in Kentucky but nationwide. Mr. Miller stated that there have been several trends that have affected the industry and caused the increase in homeowner’s insurance. Mr. Miller also stated that claim frequency and severity, rising costs of building materials, labor, and medical costs are just a few of the trends that have caused increases. Mr. Miller stated that in the past ten years the insurance companies have been able to use investment income to help pay claims, but the economy in the past year has caused a problem. Mr. Miller stated that State Farm is currently only writing policies to existing customers. Mr. Miller stated that State Farm is committed to accommodating their customers. Mr. Miller stated that there are weekly meetings regarding State Farm getting back in the market as soon as possible.
Mr. Kosse stated that Farm Bureau only sells in Kentucky and has offices and agents in all 120 counties. Mr. Kosse stated that Farm Bureau has experienced the same problems that State Farm has regarding losses. He stated that on May 1, 2002, the largest storm in Farm Bureau history caused over $140 million in losses. He stated that because of this storm and problems with the economy Farm Bureau had to file for a rate increase.
Ms. Sharon Clark, Director, Consumer Protection Division, Department of Insurance, addressed the subcommittee regarding the services that the Consumer Protection Division provides to the citizens of the Commonwealth. She gave the members a listing of publications and a consumer complaint form. She also gave the members a toll free number and website for the division. She stated that her division performs several functions including investigating complaints, fielding telephone calls, providing educational materials, making complaint ratios available to the public, and responding to disasters.
(as reported by Mr. Winford Holt)
The Subcommittee approved the following recommendations:
(1) That the General Assembly enact legislation to reform the tax system to achieve a system which:
(a) is fair;
(b) is not detrimental to economic growth;
(c) compares favorably with surrounding states;
(d) is administratively reasonable; and
(e) yields adequate revenue for state government;
(2) That the General Assembly enact legislation requiring tax credits be given to those who care for the elderly in the elderly person’s home, or in the caregiver’s home;
(3) That the General Assembly enact legislation to:
(a) Eliminate the status of married filing separately on a combined form; and
(b) Use the federal standard deduction for all filers; and
(4) Eliminate the inheritance tax on Class B and Class C beneficiaries and retain the federal estate tax pick-up.
The subcommittee heard testimony on Thursday, November 7, from Mr. Brad Thomas, a tax consultant with the Kentucky Revenue Cabinet. Mr. Thomas announced the results of the Tax Amnesty Program, which waived penalties and interest for taxpayers who paid their overdue taxes during the months of August and September of this year. The Tax Amnesty Program was projected to raise $20 million but it has brought in over $100 million. The subcommittee received copies of the 2002 tax forms. The Revenue Cabinet has been quite pleased with the results of electronically filed tax returns and is encouraging the public to use that filing method because it will save the state a sizable sum of money. Mr. Thomas announced that the Kentucky Revenue Cabinet has eliminated the 740-S form. The elimination of this form has been a recommendation of the subcommittee to the General Assembly. The elimination of this form will save the state about $2.2 million. Mr. Thomas then gave a report on the history of taxation in Kentucky and of the Revenue Cabinet.
The subcommittee also heard how the Revenue Cabinet is attempting to deal with the tax issues relating to catalog sales, sales over the Internet, and sales made from home shopping over the television. Currently only one percent of the population reports Use Tax on their returns.
Chairman Veazey thanked all of the staff persons involved with the meeting and the organization of the 25th Anniversary Celebration. Chairman Veazey recognized Mr. Gilmore Dutton for some announcements. After Mr. Dutton’s announcements Chairman Veazey adjourned the meeting with the announcement that the next meeting of the Special Advisory Commission of Senior Citizens will be May 8-9, 2003.