The second meeting of the Special Advisory Commission of Senior Citizens for 2003 was convened on Thursday, November 6, 2003, at 1:00 PM, at the Holiday Inn Capital Plaza, in Frankfort . Joe Bishop, Chair, called the meeting to order.
Present were:
Members: Joe Bishop, Chair; Hugh Adams, Frances Baccus, Peggy Baldridge, Mary Barlow, Elizabeth Billings, Anna Birch, J. Boling, Joyce Bruce, Frances Cain, Scott Cederholm, Douglas Cole, Bertha Daniels, Leon Dodge, Joe Doebler, Rowena Emerson, Margie England, Doris Engle, Betty Fay, Finnell Fields, Hallie Folz, Jane Fugate, Rufus Fugate, Virgil Gilliam, Bill Harned, Frank Hatfield, Edna Hawkins, Lee Hopkins, Betty Huff, James 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, Phillip Martin, Warren Massey, Pete McNeill, Denver Moore, Frederic Ogden, Elmer Olson, Josephine Osborn, Raymond Osborn, Kenneth Overhults, Norman Pallarito, Jean Phelps, John Polivka, Don Potts, Nancy Purvis, Stanley Ramey, Lillian Rice, Esther Rigby, Retta Riggen, Jeane Robertson, Mary Robertson, Ray Roundtree, Don Sarver, Martha Sarver, John Searcy, Clayton Shannon, Martha Shircliffe, Berton Sisk, Delma Smith, Fred Smith, Martha Smith, Joan Stivers, Pat Sutton, Jim Terrell, Claude Tiller, Mary Trimble, Laurel True, Irene Vertrees, Lillian Wheeler, Betty Whitehead, Daisy Williams, Malcolm Wolford, and Dale Young.
Guests: Representative Carolyn Belcher, Senator Tom Buford, Representative Derrick Graham, Representative Mary Harper, Senator Virgil Moore, Mrs. Betty Jean Moseley, Dr. Doug Moseley, Senator Dan Seum, Representative Charlie Siler, Representative Dottie Sims, Senator Elizabeth Tori, and Representative Mike Weaver.
LRC Staff: Kristen Burton, Katie Carney, Eric Clark, Janice Clark, Gerard Donovan, Gilmore Dutton, Sally Everman, Rhonda Franklin, Jamie Griffin, Doug Huddleston, Linda Hughes, Lou Pierce, Cindy Smith, Ellen Steinberg, and Matt Trebelhorn.
Chairman Bishop welcomed everyone to the Commission’s second meeting for 2003, the 26th year of the founding of the Special Advisory Commission of Senior Citizens. Chairman Bishop expressed hope that everyone had a safe and pleasant trip from their home to Frankfort. He then introduced those seated at the head table.
Chairman Bishop announced that two members had passed away since the last meeting. Mr. Winford Holt and Mr. Robert Veazey. Mr. Holt passed away on October 24, 2003. Chairman Bishop informed members that a resolution in memory of Mr. Holt was in their folders, and asked them to review the resolution. Chairman Bishop called for a motion to adopt the resolution. A motion was made and seconded, and the resolution was adopted. Chairman Bishop announced that a copy would be forwarded to Mrs. Holt.
Mr. Veazey passed away on October 21, 2003. Chairman Bishop informed members that a resolution in memory of Mr. Veazey was in their folders, and asked them to review the resolution. Chairman Bishop called for a motion to adopt the resolution. A motion was made and seconded, and the resolution was adopted. Chairman Bishop announced that a copy would be forwarded to Mrs. Veazey.
Chairman Veazey asked Mr. Gilmore Dutton, Commission Staff Coordinator, to introduce the program and presenters. Mr. Dutton introduced Senator Dan Seum and Representative Mike Weaver, Co-Chairs for the Interim Joint Committee on Seniors, Veterans, Military Affairs, and Public Protection. Mr. Dutton stated that Senator Seum and Representative Weaver had been asked to discuss “How Senior Citizen Issues Will Fare in the 2004 Session of the General Assembly.”
Senator Seum began the presentation by stating that he has been a member of the Veterans Affair’s Committee since the early 1980’s. He said that there are three veteran’s nursing homes in Kentucky, located in Wilmore, Hazard, and Madisonville. Senator Seum informed the members that he has sponsored veteran’s cemetery bills to create Kentucky veterans’ cemeteries in addition to the federal veterans’ cemeteries in the Commonwealth. He also said that he is in favor of the elimination of income tax imposed on retirement income.
Representative Weaver informed members that he has sponsored a bill relating to identity theft. He noted that the bill’s provisions will restrict access to identity documents by unauthorized persons.
Representative Weaver stated that he plans to sponsor legislation which will enhance an automobile insurance reporting system. He added that he is in favor of the General Assembly enacting a primary seatbelt law.
Representative Weaver commented to the members that Kentucky’s new driver’s licenses are more secure than any other state’s. Representative Weaver informed the members that he sponsored House Bill 188 in the 2002 Regular Session of the General Assembly which became law. Part of the legislation would only allow immigrants to receive a driver’s license from 13 circuit court clerk’s offices across the state.
Following Senator Seum and Representative Weaver’s presentation there was a short question and answer period. Chairman Bishop thanked Senator Seum and Representative Weaver for participating on the Commission’s program.
Chairman Bishop introduced five new members added to the Commission since the last meeting. They were as follows:
Mr. Douglas Cole, appointed by the Kentucky Retired Teachers Association;
Mr. Joe Doebler, appointed by the Joint Executive Council of Veterans Organizations;
Mrs. Rowena Emerson, appointed by the Purchase Area Development District;
Mrs. Jane Fugate, appointed by the Kentucky River Area Development District; and
Mr. Jim Terrell, appointed by the Joint Executive Council of Veterans Organizations.
Chairman Bishop recognized Mr. Dutton to oversee the nominations for the election of Commission Vice Chairman to be held on November 7, 2003. Mr. Dutton announced he would entertain motions from the floor for the position of Commission Vice Chairman to replace Mr. Bishop who assumed the position of Commission Chairman upon the death of Robert Veazey. The following people were nominated for the position of Commission Vice Chairman:
Mr. Finnell Fields,
Dr. Phil Hulsman,
Mr. Irving Lipetz, and
Ms. Esther Rigby.
Mr. Dutton continued with some housekeeping items and announcements. After Mr. Dutton’s remarks, Chairman Bishop adjourned the opening general session to allow the subcommittees to convene.
Chairman Bishop convened the dinner session and welcomed everyone and their guests. Chairman Bishop gave the invocation and introduced those seated at the head table. After dinner Chairman Bishop recognized Mr. Dutton for the introduction of the legislative hosts and the speaker for the evening.
The speaker for the evening was Dr. Doug Moseley. Dr. Moseley is a retired Methodist minister, former Kentucky State Senator (1974-1986), and author of the regional best seller, There is More to Preaching, Than Just Preaching, (South Central Press, 2001). Dr. Moseley gave a very thought provoking and entertaining speech. Dr. Moseley shared with the members some of his more humorous experiences while practicing as a minister and serving as a Kentucky State Senator.
Chairman Bishop thanked Dr. Moseley for a very entertaining address. Chairman Bishop then made several announcements regarding the next day’s activities, announced that Mr. Frank Hatfield was elected Vice Chairman of the Consumer Affairs Subcommittee, that Mr. Hugh Adams was elected Vice Chairman of the Insurance Subcommittee, that Ms. Lillian Wheeler was selected to be Coordinator for the Big Sandy Regional Coordinating Committee, that Ms. Betty Huff was selected to be Coordinator for the Purchase Regional Coordinating Committee, and thanked everyone again for coming. Chairman Bishop adjourned the dinner session until the next morning, November 7, 2003.
Following the conclusion of the subcommittee meetings on Friday, November 7, 2003, Chairman Bishop convened the closing general session at 10:15 a.m.
Chairman Bishop introduced those seated at the head table, and then recognized Mr. Dutton for the election of Commission Vice Chairman. Mr. Dutton recited the names of those nominated for Vice Chairman and the ballots were passed out and collected from members.
Chairman Bishop recognized Ms. Lillian Rice for a report from the Nominating Committee for the Commission Chairman and Vice Chairman. Ms. Rice announced the following members to be nominated for the position of Commission Chairman:
Mr. Joe Bishop,
Mr. Burton Sisk, and
Ms. Esther Rigby.
Ms. Rice announced the following members to be nominated for the position of Commission Vice Chairman:
Dr. Phil Hulsman,
Mr. Finnell Fields, and
Mr. Laurel True.
A motion was made and seconded to accept the Nominating Committee report. The report was adopted by the Commission.
Chairman Bishop recognized Mr. Dutton for announcements. Mr. Dutton called the members’ attention to the press release placed at each seat and reminded members to turn in their name badges and expense vouchers with the hotel receipt.
Chairman Bishop then introduced each of the Subcommittee spokesman who, in turn, presented their subcommittee’s report for adoption by the full membership. The following subcommittee reports were adopted by the Commission.
(Reported by Mr. Frank Hatfield, Subcommittee Vice Chairman)
Mr. Frank Hatfield stated that the subcommittee heard testimony on predatory lending from Harold Turner, Financial Integrity Enforcement Division, Office of the Attorney General. Mr. Hatfield announced that the Subcommittee had adopted the following recommendations:
(1) That the General Assembly raise the cigarette tax 25 cents above its current tax rate and dedicate the tax for funding Medicaid;
(2) That the General Assembly strengthen predatory lending by:
(a) Reducing the points and fee trigger for financial disclosure requirements from eight percent to four percent;
(b) Prohibit financing points and fees;
(c) Provide for recovery of attorney fees under both consumer protection and usury laws; and
(d) Tighten flipping provisions.
(3) That the General Assembly enact 2004 BR 76 which contains the provision of House Bill 242 from the 2003 Session of the General Assembly and the prosecutorial provisions contained in House Bill 105 from the 2003 Session of the General Assembly; and
(4) That the General Assembly remove the requirement in the Continuing Care Retirement Community legislation that nursing home bed provisions be reviewed every two years.
A motion to adopt the Subcommittee’s recommendations was made and seconded, and passed on a voice vote.
(Reported by Ms. Jeane Robertson, Subcommittee Chairman)
Ms. Jeane Robertson reported that on Thursday, November 6, the subcommittee heard testimony on the impact of Medicaid’s cost containment strategies on senior care from Mr. Dennis Boyd, a former Department for Medicaid Services Commissioner who is currently with the University of Louisville. Mr. Boyd informed the members about the current Medicaid cuts. He stated that on April 1, 2003, the Department for Medicaid Services implemented a new level of care criteria for nursing facility care. He noted that the new criteria is very strict and now many seniors do not qualify for nursing facility services. Mr. Boyd stated that the next Governor of Kentucky faces a $4 to $5 million deficit in Medicaid. He emphasized to the members that Medicaid should take a disease management approach to its programs rather than operate programs like a health insurance company. He suggested that one of the approaches in dealing with the Medicaid budget shortfall would be to focus on program management. Mr. Boyd concluded that an administrative service organization could help the Department for Medicaid Services save money through internal management rather than by cutting services to Kentuckians.
The subcommittee also heard testimony from Ms. Paula Holbrook and Mr. Shane O’Donley from the Cabinet for Health Services. The two updated the subcommittee on the Olmstead decision and Kentucky’s response in implementing the U.S. Supreme Court ruling. They stated that the Olmstead decision facilitates the placement of older persons in the most integrated setting. Ms. Holbrook noted the barriers of Olmstead compliance in Kentucky are transportation in Eastern Kentucky and housing in Western Kentucky. She emphasized the need for more money for supported community living services. Mr. O’Donley provided an informative overview of the Cabinet for Health Services web-site related to Olmstead.
The subcommittee concluded its testimony on Thursday with Mr. Marty Pinkston of the Department of Veterans Affairs. Mr. Pinkston provided the subcommittee with three areas of concern to veterans across Kentucky. The three areas are:
(1) Veterans need better access to health care;
(2) The Department of Veterans Affairs needs to double their field benefits representatives workforce; and
(3) The state should show a commitment to operate new state veterans cemeteries at Fort Knox and Williamstown.
Mr. Pinkston concluded his testimony by stating that the Department of Veterans Affairs ultimate goal is to gain independence from the general fund in the state budget and be able to act as its own entity.
Ms. Robertson announced that the Subcommittee had adopted the following recommendations:
(1) That the General Assembly advance a plan that provides prescription drug cost assistance to low-income seniors and Kentuckians with disabilities;
(2) That the General Assembly enact the provisions of House Bill 242 from the 2003 Kentucky General Assembly during the 2004 regular session;
(3) That the General Assembly establish an administrative service organization within the Department for Medicaid Services that would help save money through internal management, rather than by cutting services to seniors;
(4) That the General Assembly support the Joint Executive Council of Veterans Organizations (JECVO) 2004 legislative agenda for the Department for Veterans Affairs, which would:
(a) Increase health care to veterans;
(b) Double the Departments field benefits representative workforce; and
(c) Require the state to operate the new veterans cemeteries at Fort Knox and Williamstown.
A motion to adopt the Subcommittee’s recommendations was made and seconded, and passed on a voice vote.
(Reported by Mr. Ray Roundtree, Subcommittee Chairman)
Mr. Ray Roundtree reported that the Subcommittee heard testimony from Mr. Tyler Thompson, Kentucky Academy of Trial Attorneys. Mr. Thompson addressed the subcommittee regarding medical malpractice insurance. Mr. Thompson stated that the increases in medical malpractice cannot be blamed on jury verdicts. He stated that it is an insurance management problem, and that it is also due to bad investments, and money management problems. He stated that some individuals are in favor of putting a cap on damages awarded to victims of medical malpractice. He stated that this will not lower premiums and will only hurt the victims. He stated that in other states that have capped damages the premiums have not been reduced. Mr. Thompson concluded his testimony by stating that if Kentucky caps damages it will effect the people who need it most and takes away the people’s right to a trial by jury.
The Subcommittee also heard testimony from Mr. William Doll, Kentucky Medical Association, who addressed the history of medical malpractice insurance, including a self insurance fund. Mr. Doll stated that he feels a starting point would be a constitutional change.
The Subcommittee then elected Mr. Hugh Adams to serve as Vice Chairman to replace Mr. Vinson Watts, who had resigned from the Commission for health reasons.
Ms. Rhonda Franklin, Subcommittee staff, updated the Subcommittee on pre-filed legislation for the 2004 General Assembly relating to insurance. Ms. Franklin also updated the Subcommittee on Medicare coverage of seniors as it relates to prescription drug coverage.
Mr. Roundtree announced that the Subcommittee had adopted the following recommendations:
(1) That the General Assembly and the Department of Insurance be encouraged to continue efforts to increase the availability of health insurance to senior citizens in Kentucky at affordable and justifiable premiums;
(2) That the General Assembly enact legislation to require insurers who provide personal motor vehicle liability insurance coverage in Kentucky to file the vehicle identification number (VIN) and the name of the policy holder each month with the Department of Motor Vehicle Regulation, as proposed in 2004 BR 158, to assist in the enforcement of mandatory auto liability insurance coverage; and
(3) That the General Assembly address the issue of medical malpractice premium increases, and assure that the life expectancy of senior citizens not be a justifiable reason to reduce non-economic damages.
A motion to adopt the Subcommittee’s recommendations was made and seconded, and passed on a voice vote.
(Reported by Mr. Pete McNeill, Subcommittee Chairman)
Mr. Pete McNeill reported that on Thursday, November 6, the Subcommittee heard testimony on the taxation of pension income in Kentucky from Bonnie Lee, Kentucky Revenue Cabinet. Ms. Lee gave a brief history of the tax and some facts and figures on it’s impact on various income groups and state revenues. Ms. Lee stated that the exclusions on the taxation of pension income benefit individual retirees, but cost the state several hundred million dollars each year in lost revenue. Ms. Lee concluded her testimony by discussing various proposals to reform pension income taxation.
The Subcommittee also heard testimony on caring for elderly persons in their homes from Karen Hinkle, Kentucky Home Health Association. Ms. Hinkle explained that the cost of caring for the elderly in their homes can be a great financial burden on families, but that government aid goes mainly to nursing homes and other institutional care. Ms. Hinkle stated that providing tax credits to home care givers is one way to somewhat ease the financial burden and provide an incentive for home care.
Mr. McNeill announced that the Subcommittee had adopted the following recommendations:
(1) That the General Assembly enact legislation to reform the state’s 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 raise the excise tax on cigarettes to $1.00 per pack and impose a fifty percent tax on smokeless tobacco, cigars, rolling paper, and other tobacco products not covered by the cigarette tax; and
(3) That the General Assembly enact legislation providing tax credit to those who care for the elderly in the elderly person’s home or in the caregiver’s home.
A motion to adopt the Subcommittee’s recommendations was made and seconded, and passed on a voice vote.
(Reported by Ms. Esther Rigby, Subcommittee Chair)
Ms. Esther Rigby reported that the Subcommittee first held a discussion with John Snyder, staff, on a potential mass transit check-off on income tax returns. Mr. Snyder informed the Subcommittee that there are currently four check-offs on Kentucky’s tax forms that raise funds for public causes. He noted that any new check-off must be adopted by the General Assembly. He added that several attempts have been made in recent years to establish new check-offs, but none have been successful. Mr. Snyder noted that even if a mass transit check-off were adopted, it is unclear how much would be raised. Mr. Snyder added that before 2001, fewer than one percent of income tax return filers used any of the four check-offs, and all four causes combined collected less than $200,000.
Mr. Snyder then gave the Subcommittee an update on driver license renewal procedures. He then gave the Subcommittee an overview of Florida’s Commission for the Transportation Disadvantaged (CTD).
Ms. Rigby announced that the Subcommittee had adopted the following recommendations:
(1) That the General Assembly establish an electronic, paperless automobile insurance reporting system; and
(2) That the General Assembly enact a primary seatbelt law.
A motion to adopt the Subcommittee’s recommendations was made and seconded, and passed on a voice vote.
Mr. Bill Harned made a motion to include in the overall recommendations from the Commission that the General Assembly make the restoration and protection of Medicaid the number one priority of the upcoming 2004 Regular Session of the General Assembly. Ms. Bertha Daniels seconded the motion, and the motion carried.
The Subcommittee reports having been given and adopted, Chairman Bishop announced the next semiannual meeting would be held May 6-7, 2004. There being no further business, the meeting was adjourned.