Call to Order and Roll Call
The meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, May 7, 2014, at 10:00 AM, in Room 131 of the Capitol Annex. Senator Paul Hornback, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Paul Hornback, Co-Chair; Senators Carroll Gibson, Jimmy Higdon, Dennis Parrett, Robin L. Webb, and Whitney Westerfield; Representatives Mike Denham, Tom McKee, Terry Mills, and Ryan Quarles.
Guests: Roger Thomas, Joel Neaveill, Bill McCloskey, Angela Blank, Brian Murphy, and Biff Baker, Governor’s Office of Agricultural Policy; Jason Vincent, Pennyrile Area Development District; and Lisa Cooper, Northern Kentucky Area Development.
LRC Staff: Kelly Ludwig and Kelly Blevins.
The March 10, 2014, minutes were approved without objection by voice vote, upon motion by Senator Webb and second by Senator Higdon.
Governor’s Office of Agricultural Policy
Mr. Roger Thomas, Executive Director, Mr. Joel Neaveill, Chief of Staff, and Mr. Bill McCloskey, Director of Financial Services, Governor’s Office of Agricultural Policy (GOAP), testified about project funding decisions made by the Agricultural Development Board (ABD) during its March and April meetings.
Mr. Neaveill summarized tobacco settlement funding allocations for the previous months under the County Agricultural Improvement (CAIP), Deceased Farm Animal Disposal Assistance, and Shared-use Equipment programs.
In response to Chairman Hornback, Mr. Neaveill confirmed that CAIP funds are lower this year because overall Master Settlement Agreement (MSA) funds have decreased. In 2014, counties received six million dollars. During fiscal years 2015 and 2016, counties will receive approximately $29 million dollars. Counties determine the amount of funding that goes to CAIP.
The GOAP officials summarized those projects approved for state funding during the previous ADB meeting: Kentucky Sheep and Goat Development Office, Inc. was approved for $60,000 in state funds over two years. Mr. McCloskey stated that the number of sheep and goats in Kentucky has doubled since funding has been allocated to the Kentucky Sheep and Goat program.
Lee’s Plant Farms, Inc. requested and was approved for $60,000 in state funds to construct and equip a vegetable processing facility. Senator Parrett complimented the Agricultural Development Board on its approval of the project and noted that Lee’s Plant Farms provides local food and produce to schools.
The Kentucky Distillers’ Association requested and was approved for $11,250 in State funds to update an expanded economic impact analysis of the distilling industry in Kentucky. Several members complimented the Agricultural Development Board for including additional provisions to the Kentucky Distillers’ Association economic impact study as it relates to total corn usage.
In addition, Mr. Thomas stated that the Breathitt Veterinary Diagnostic Laboratory is involved in the accreditation process.
Update on the Master Settlement Agreement arbitration issues
Mr. Thomas then provided an update on the MSA litigation. Mr. Thomas stated that Pennsylvania courts awarded a partial settlement. Other states that have been ruled to be non-diligent have hearings scheduled in the coming months. No action on Kentucky’s hearing is expected until May 12, 2014. In response to Representative McKee, Mr. Thomas stated that Kentucky has not implemented policy changes after Kentucky was ruled as being non-diligent.
Kentucky Agricultural Development Information System
Mr. Jason Vincent, Executive Director of the Pennyrile Area Development District and Ms. Lisa Cooper, Executive Director of the Northern Kentucky Area Development District (ADD) presented the Kentucky Agricultural Development Information System. The system will be the state’s first interactive agricultural asset map designed to help identify agricultural trends within the state, plan for disaster mitigation and drive economic development efforts. Mr. Vincent stated existing information is not accurate or easily accessible.
In response to Senator Webb, Mr. Vincent explained the origins of the concept and the Agricultural Development Districts’ intentions to interact and partner with the agriculture sector. Mr. Vincent stated existing information is not centralized or web based.
Senator Parrett encouraged Mr. Vincent and Ms. Cooper to train local Agricultural Development Districts on ways to utilize the data.
In response to Representative Mills, Mr. Vincent stated that they anticipate the website to launch in the fall of 2014.
A record of all meeting materials is on file with the LRC Library.
There being no further business the meeting was adjourned.