Call to Order and Roll Call
The 4th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, June 7, 2017, at 10:00 AM, in Room 129 of the Capitol Annex. Representative Myron Dossett, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator C.B. Embry Jr., Co-Chair; Representative Myron Dossett, Co-Chair; Senators Stephen Meredith, Dennis Parrett, and Robin L. Webb; Representatives Phillip Pratt, Rick Rand, and Dean Schamore.
Guests: Warren Beeler, Executive Director, and Bill McCloskey, Deputy Executive Director, Governor’s Office of Agricultural Policy, and Kerri Verden, Program Administrator, Cabinet for Health and Family Services, Kentucky Tobacco Prevention and Cessation Program.
LRC Staff: Tanya Monsanto, Kelly Ludwig, Janine Coy-Geeslin, and Susan Spoonamore, Committee Assistant.
The May 31, 2017 minutes were approved by voice vote, without objection, upon motion made by Senator Parrett and seconded by Senator Embry.
Governor’s Office of Agricultural Policy
Warren Beeler and Bill McCloskey, Governor’s Office of Agricultural Policy, described currently approved projects and future projects under the program funding offered by the Agricultural Development Board. In addition, they included several highlights from the Governor’s Office of Agricultural Policy 2016 Annual Report. The programs highlighted in discussion included County Agricultural Investment Program (CAIP), Deceased Farm Animal Removal Program, Shared-use Equipment Program, Beginning Farmer, On-Farm Energy, Youth-Agriculture Incentives, and Kentucky Agricultural Finance Corporation (KAFC). In May, $5 million was transferred to KAFC accounts to be used for loans to Kentucky farmers and agribusiness enterprises.
After a question about the importance to agriculture of the Murray State University Breathitt Veterinary Center, Mr. Beeler stated that the diagnostic center is handling 40 percent of poultry work at the laboratory in Hopkinsville.
In response to a question about the lack of inclusion of counties located east of Interstate 75 in the approved list of projects approved by the Agricultural Development Board that is located east of Interstate 75, given that those counties were tobacco-impacted areas, Mr. Beeler said that there is a lack of applications from that area and it probably is in relation to the types of programs. Energy savings programs are available, and if there was a demand for programs for energy generation, then he would take those requests to the board.
In follow-up, a member asked whether an application for horses would be approved, and are there applications for beef cattle. Currently, there are no equine applications. A member commented that the lack of applications before the board for equine and beef is due to none being written and that is something for the University of Kentucky Cooperative Extension Service to work with county committees in developing applications.
Mr. McCloskey stated that some counties roll over funding to the subsequent year before making a grant. Also there are programs at the University of Kentucky which provide cost-share dollars for limited resource producers in Eastern Kentucky. Also, there is also a small loan program targeting the Appalachian counties. These programs may be driving demand away from grant and loan programs available at the GOAP. Mr. Beeler added that the CAIP program is done every other year. If there are ideas about how to expand its usefulness to Eastern Kentucky counties, then those ideas can be taken to the board, the GOAP officials said.
Mr. McCloskey highlighted several applications that came before the board. The approved project list including Beef Solutions, LLC, which is integrating the slaughter and processing of beef to create a consistent ground beef product to be sold to Kroger. It will be a way for the public to purchase verified Kentucky beef and will enhance the Kentucky Proud program. Beef Solutions LLC received a grant of $127,196 from the board. The partner with Beef Solutions, LLC is Creation Gardens.
One member commented on the importance of a poultry education facility that will be located in Ohio County near the Ohio-Daviess county line. Another member added that the project is very proactive, especially given the difficulties animal agriculture faces from those in public who do not understand the nature of animal farming and processing operations.
In response to a member who discussed a letter from the Governor asking for input on tax policy before July 15, 2017 and the need for the committee members to defend agricultural tax policies that are beneficial to the industry, Mr. Beeler stated that placing certain taxes on agriculture will make Kentucky less competitive. In follow-up, a legislator commented on how agriculture in Christian County was integral to keeping the community and the local economy going after losing a major company from the industrial base.
Kentucky Tobacco Prevention and Cessation Program
Kerri Verden, Program Administrator, Kentucky Tobacco Prevention and Cessation Program, Cabinet for Health and Family Services, stated that there have been several achievements in Kentucky. There continues to be a decline in the smoking rate. Approximately one in four Kentuckians smoke.
There also is a decline in the youth smoking rate, which currently stands at one in six who smoke. The number of “100 percent Tobacco Free Schools” has increased, she reported. Schools have been improving their policies to reduce the access to and normalization of smoking. Roughly 37 percent of school districts are currently listed among “100 percent Tobacco Free Schools,” but 22 school districts within that group still do not have policies on E-cigarettes and vaping, according to the report.
Ms. Verden presented a video about the Russel County School District and the process the school and community went through to develop their “100 percent Tobacco Free School Policy.”
The state Retailer Underage Sales Training Program is offered free of charge and over 4,000 retailers have been trained in Kentucky since the program’s inception. Local grants from the federal Centers for Disease Control funds are used to enhance and expand local initiatives. Those funds can be used for smoking cessation, smoking awareness, and third-hand smoke programs. All 61 health departments in Kentucky use the CDC national smoking cessation campaign. Funds have been used for radio advertisements that describe the effects of tobacco use. Ms. Verden then described the QuitnowKentucky campaign.
Local grants also support tobacco control laws. The U.S. Department of Housing and Urban Development (HUD) requires a national smoke-free housing policy by August 2018. In Northern Kentucky, a smoke free policy was implemented for public housing in 2015 and as a result, HUD used the Northern Kentucky experience to create a tool kit to help other public housing authorities statewide.
In response to a question about policy with public assistance, Ms. Verden explained that the policy is directed toward public housing authorities that are multi-family facilities.
One member expressed concerns that the rule was rushed, given that there are questions about maintaining the program if CDC funds are cut. Department of Justice grants have stopped and the opioid epidemic continues to draw program dollars away from smoking toward other issues like drug control. Ms. Verden said that the impacts to program funding are unknown. However, there has been a reduction in grants, and the CDC has said that how much or whether funding will be available has not been decided due to questions about the federal budget funds. Currently, the state Tobacco Prevention and Cessation Program gets 8 percent of its funding from the CDC.
In response to a question about what are the impediments to Kentucky’s success in reducing the state’s smoking rate to the national average, Ms. Verden said that policies are of central importance. The state has a very low tax on tobacco products in comparison to other states and research has shown there is a relationship between taxes and smoking rates. Also raise the purchase age to 21, she indicated, adding that most smokers begin smoking before age 21.
The chair stated the next meeting is July 5, 2017. Documents distributed during the meeting are available with meeting material in the LRC Library. There being no further business, the meeting was adjourned.