Call to Order and Roll Call
The meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, September 2, 2015, at 10:00 AM, in Room 129 of the Capitol Annex. Senator C.B. Embry Jr., Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator C.B. Embry Jr., Co-Chair; Representative Wilson Stone, Co-Chair; Senators Carroll Gibson, Paul Hornback, Dennis Parrett, Robin L. Webb, and Whitney Westerfield; Representatives Mike Denham, Tom McKee, Terry Mills, Ryan Quarles, and Jonathan Shell.
Guests: Dr. Donald Miller, Director, Brown Cancer Center, University of Louisville; Dr. Mark Evers, Director, Markey Cancer Center, University of Kentucky; Mr. Roger Thomas, Mr. Joel Neaveille, Mr. Bill McCloskey, Ms. Angela Blank, Dr. Luther Hughes, Governor’s Office of Agricultural Policy; Mr. Pat Henderson, Agricultural Development Board.
LRC Staff: Lowell Atchley, Kelly Ludwig, and Kelly Blevins.
The August 5, 2015 minutes were approved, without objection, by voice vote, upon a motion by Representative McKee and seconded by Representative Mills.
Kentucky Lung Cancer Research Program
Dr. B. Mark Evers and Dr. Donald Miller, Directors of the Markey Cancer Center at the University of Kentucky and the Brown Cancer Center, University of Louisville, discussed the latest developments at the institutions relating to lung cancer research, funded partially by tobacco settlement dollars.
Dr. Evers discussed the mission of the Markey Cancer Center. Turning to the burden of cancer in Kentucky, he indicated the state leads the nation in overall cancer mortality, the Appalachian region has the highest cancer mortality rate in the state, and lung cancer accounts for 35 percent of total cancer deaths in the Commonwealth. He updated the committee on the National Cancer Institute (NCI) designation in 2013 that ultimately resulted in $7.5 million in funding over five years. Overall funding for the cancer center has continued to grow, he said, aided by the NCI designation.
Dr. Evers discussed the research and work being done at Markey, particularly attacking cancer through genomics and personalized medicine, treating tobacco addition in cancer patients, and survivorship care. He covered Markey’s outreach through its affiliates, professional education and training and community outreach.
Dr. Miller discussed the toll that cancer has on Kentuckians. According to Dr. Miller, the state has fallen behind the nation in cancer mortality since 1975, when Kentucky cancer mortality rates were comparable to U.S. rates.
Dr. Miller discussed Brown’s translational drug research programs that extend from the laboratory to use in patients. He mentioned a breath analysis system for early cancer detection of lung cancer, the development of a tobacco-based cervical cancer vaccine that should be in clinical trials next year, research on a tobacco-based colon cancer vaccine, the possibility of using fruits such as grapes to combat cancer, and a mouse embryonic stem cell vaccine. He talked about the significance of a data gathering project involving a number of schools throughout the state.
The cancer center directors responded to several committee members’ questions both during and after their presentations.
Dr. Evers responded to Co-Chair Stone and Representative McKee, mentioning that Kentucky’s cancer rates are similar to some Southern states, such as Alabama, Louisiana, and Mississippi. Smoking contributes to high cancer rates in the state, but there are other factors such as genetics and environmental aspects, such as the prevalence of radon.
Responding to Senator Gibson, Dr. Evers and Dr. Miller commented on the handling of donations to the American Cancer Society (ACS). Dr. Evers mentioned he has not seen a downtick in ACS funding and Dr. Miller told the committee the organization has done good work in terms of supporting research.
Dr. Evers responded to Representative Denham’s comments on smoking cessation funding in the state, noting that one Markey researcher has received national funding for smoking cessation work.
Responding to Representative McKee regarding the cervical cancer work, Dr. Miller said he believes researchers are getting closer to getting the drug out, in particular for use as an oral vaccine in Third World countries. A national foundation that has taken an interest in the research. Oral vaccines are good to use in the Third World.
Dr. Miller told Representative McKee that work is being conducted on vaccines for melanoma and other cancers.
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 August meeting.
GOAP officials summarized funding allocations for the previous month under the County Agricultural Improvement (CAIP), Deceased Farm Animal Disposal Assistance, and Shared-Use Equipment programs.
GOAP officials responded to committee members’ questions about the latest county account balance report, which showed that all counties receiving tobacco funds have over $9.7 million available to fund projects. Responding to Co-Chair Stone initially and to Representative Mills later, it was reported that fund balances are on par with previous years. Mr. Neaveill said it is typical for 85-90 counties use their available funds in a given year. The funds roll over and are regained by counties from one year to the next.
GOAP staff provided details on the statewide and regional projects approved for funding at the last ADB meeting: Summit Meat Processing, $165,000 as a forgivable loan to establish a meat processing facility in Pulaski County; Seven Springs Sorghum Producers, $30,000 in state and county contributions to construct an events barn to be used for agritourism events, including a sorghum festival and other agricultural related events; Cumberland Agricultural Management, $50,000 in state funds, a $225,000 loan, and other county funds to build and equip an animal rendering facility in Metcalfe County; Daviess County Fiscal Court, $25,000 in county funds for a storm water master plan directed at flood risk management; and Hickman County Board of Education, $4,221 in Hickman County funds to buy welding equipment for the high school agriculture department.
Responding to Co-Chair Stone, GOAP officials described the rationale for the use of a forgivable loan arrangement in the Summit Meat Processing project. According to Mr. Thomas, the loan arrangement was the first approved by the board since about 2007. Tracking cost reimbursements were a problem in the past, but the terms and conditions of the Summit project would assure the enterprise will have to stay in business for five years.
In a response to Senator Gibson, Mr. Neaveill described the principals in the business and how the business will operate.
Responding to Senator Parrett, Mr. McCloskey described the loan collateral for the Seven Springs project, indicating that land will secure the loan. In a response to Senator Webb, Mr. Thomas said that reimbursement provisions on the project were standard. He agreed with the senator that there also would be other typical legal remedies available.
Senator Webb commented on whether it was appropriate to help fund the Daviess County storm water project. She commented on a precedent being set and indicated that the U.S. Army Corps of Engineers should be undertaking such projects.
Responding to the senator’s comments and to Co-Chair Stone, Mr. Thomas said the board had delayed a decision on the project and that he had mentioned that in a prior committee meeting. He said the board felt a connection was made for a direct farmer benefit with the project.
Regarding a project that did not receive tobacco settlement funding, Shoppes of Kentucky, based in Campbell County, Mr. Neaveill indicated the board’s reluctance to approve funds for a project that may not be viable.
As the meeting ended, Mr. Thomas said that a new set of commercials touting the importance of commodity meat production in Kentucky will be airing soon. The board and commodity groups are paying for the commercials.
Documents distributed during the meeting are available with meeting materials in the LRC Library. There being no further business, the meeting was adjourned.