Call to Order and Roll Call
The 9th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, October 5, 2016, at 10:00 AM, in Room 171 of the Capitol Annex. Representative Wilson Stone, 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, Dennis Parrett, Robin L. Webb, and Whitney Westerfield; Representatives Mike Denham, Tom McKee, Terry Mills, Jonathan Shell, and James Tipton.
Guests: Dr. Donald Miller, Director of the Brown Cancer Center, University of Louisville; Dr. B. Mark Evers, Director of the Markey Cancer Center, University of Kentucky Albert B. Chandler Hospital; Warren Beeler, Executive Director, Governor’s Office of Agricultural Policy; Stefanie Osterman, Project Manager, Governor’s Office of Agricultural Policy; and Tammy Miller, Director of KADF Programs, Governor’s Office of Agricultural Policy.
LRC Staff: Lowell Atchley, Kelly Ludwig, and Marielle Manning.
Upon motion by Senator Embry and second by Representative Mills, the September 7, 2016 minutes were approved by voice vote and without objection.
Upon motion by Representative Denham and second by Representative McKee, the Resolution honoring Karen M. Curtis for her service on the Agricultural Development Board was approved by voice vote and without objection.
Kentucky Lung Cancer Research Program Presentations
Dr. Donald Miller, Director of the Brown Cancer Center, gave a report on the Kentucky Lung Cancer Research Program at the University of Louisville Hospital. Dr. Miller explained improvements in cancer treatments and therapy that have resulted in decreasing numbers of cancer deaths in Kentucky. Dr. Miller explained a few of the new treatment drugs developed at the Brown Cancer Center.
Responding to Senator Parrett, Dr. Miller said Kentucky is number one in the U.S. for cancer-related deaths, but the state has made improvements.
Responding to Representative Tipton, Dr. Miller explained that electric cigarettes are probably safer than real cigarettes; however, no nicotine in any form would be the best approach to reduce cancer rates.
In response to Representative Mills, Dr. Miller said he has worked on advanced melanoma cases for the past 40 years. He has only seen significant success in the past two or three years.
Responding to Representative Denham, Dr. Miller further described the new drug development, AS1411. Dr. Miller said AS1411 was used as a control drug and led to a third generation drug, non-toxic, synthetic DNA that turns off a gene that is present in all cells.
Responding to Representative McKee, Dr. Miller explained the plant-based pharmaceuticals developed as a partnership between the Owensboro Medical System and the University of Louisville in conjunction with Kentucky Bioprocessing, LLC plant. It is the only pharmaceutical plant in the world that can make drugs out of tobacco. There are three vaccines that are close to testing.
In response to Senator Westerfield, Dr. Miller said that the teenage smoking rate in Kentucky is 16.9 percent. The national average is 10.5 percent, and there are rates as low as five percent.
Responding to Representative Stone, Dr. Miller explained that Kentucky is closely ranked to North Carolina and Virginia, but Kentucky’s drop in smoking rates is positive.
Dr. B. Mark Evers, Director of the Markey Cancer Center, discussed the Kentucky Lung Cancer Research Program at the University of Kentucky Albert B. Chandler Hospital. Dr. Evers said annual health care costs caused by tobacco use in Kentucky are $1.92 billion. Lung cancer accounts for 35 percent of total cancer deaths in Kentucky. He discussed the Markey Cancer Center’s mission and its path to the National Cancer Institute designation. Dr. Evers explained the increase in cancer research funding since 2011 and Markey Cancer Center’s new recruitments in staff.
In response to Senator Embry, Dr. Miller said AS1411 was very successful on animal and tissue cultures. AS1411 will probably not be a replacement for prostate cancer.
Responding to Representative Stone, Dr. Miller said the center has made great progress in understanding the genome and genes involved in lung cancers. Dr. Evers said the center is looking for genetic mutations in cancers in eastern Kentucky with funding from Kentucky Lung Cancer Research Programs.
Governor’s Office of Agricultural Policy
Mr. Warren Beeler, Executive Director, Stefanie Osterman, Project Manager, and Tammy Miller, Director of KADF Programs, Governor’s Office of Agricultural Policy, presented projects receiving the Agricultural Development Board approval at its September 2016 meeting. Those included facility upgrades, farmers market, Youth Ham Project, on-farm investments, environmental stewardship, shared-use equipment, on-farm energy efficiency incentives, and major statewide or regional projects.
Responding to a question from Representative Tipton, Mr. Beeler confirmed that $497 million of tobacco settlement funds have been given to cancer research.
Responding to Representative McKee, Mr. Beeler stated that the hemp farm of Brian Furnish has the most uniform hemp fiber crop he had seen. The crop production will be six tons per acre and $100 per ton of hemp fibers. Compared to the Winchester hemp plant which processes seed, Brian Furnish’s farm processes fiber.
In response to Senator Parrett, Mr. Beeler said the hemp was kept clean by using Roundup weed killer in the early stages of growth and then burning the hemp down and allowing it to regrow.
The committee received reports on three regional projects: (1) Franklin County Fair and Horseshow Association, Inc., approved by the board for $6,000 in Franklin County funds to upgrade the public address system for its livestock facilities; (2) Hickman County Fiscal Court, approved by the board for $19,000 in Hickman $90,450 in State funds to construct a 60’ x 40’ farmers market pavilion in Clinton, KY; (3) Metcalfe County 4-H Council, Inc., approved by the board for $3,800 in Metcalfe County funds to purchase country hams for its youth country ham project.
GOAP officials described one funding denial: (1) Veering, LLC, turned down for $24,500 in State funds to purchase a hops harvester, drying floor with heater and a baler. Lack of producer impact was mentioned as reason for denial.
GOAP officials answered questions about the three regional projects received by the board in September.
Representative Stone commented on ham projects and how they help to prolong the art of curing ham practiced in Kentucky.
Responding to Representative Mills, GOAP representatives explained that Russell County does not have its own composting facility.
In response to Senator Webb, GOAP officials explained that, for the energy program, a score sheet is based on energy savings.
Documents distributed during the meeting are available with meeting materials in the LRC Library.
There being no further business, the meeting was adjourned.