ADMINISTRATIVE

REGISTER

OF KENTUCKY

LEGISLATIVE RESEARCH COMMISSION

Frankfort, Kentucky

VOLUME 34, NUMBER 11

THURSDAY, MAY 1, 2008

ARRS - MAY 13, 2008 TENTATIVE AGENDA

REGULATION REVIEW PROCEDURE

EMERGENCIES:

NONE

AS AMENDED:

KENTUCKY STATE BOARD OF ELECTIONS: Help America Vote Act of 2002

31 KAR 6:040. Elections and Voting Equipment Security Plan.

PERSONNEL BOARD: Board

101 KAR 1:325. Probationary Periods.

FINANCE AND ADMINISTRATION CABINET: Department of Revenue: Forms

103 KAR 3:010. Income Tax Forms Manual.

103 KAR 3:040. Income Tax Forms Manual.

GENERAL GOVERNMENT CABINET: Kentucky Board of Pharmacy: Board

201 KAR 2:300. Common database.

Kentucky State Board of Licensure for Professional Engineers and Land Surveyors: Board

201 KAR 18:196. Continuing professional development for engineers.

Kentucky Real Estate Appraisers Board

201 KAR 30:050. Examination, continuing education, and experience requirement

201 KAR 30:190. Educational requirements for certification effective January 1, 2008.

JUSTICE AND PUBLIC SAFETY CABINET

Department of Corrections

Office of the Secretary

501 KAR 6:070. Kentucky Correctional Institution for Women.

501 KAR 6:130. Western Kentucky Correctional Complex.

501 KAR 6:230. Little Sandy Correctional Complex.

ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department of Labor: Office of Workers' Claims

803 KAR 25:280. Certification of drug-free workplace.

Department of Public Protection: Kentucky Horse Racing Authority: Thoroughbred Racing

810 KAR 1:027. Entries, subscriptions, and declarations.

CABINET FOR HEALTH AND FAMILY SERVICES: Department for Medicaid Services: Medicaid Services

907 KAR 1:044. Community mental health center services.

907 KAR 1:815. Nondiagnostic related group inpatient hospital reimbursement.

907 KAR 1:820. Disproportionate share hospital distributors.

AMENDED AFTER COMMENTS:

NONE

PROPOSED AMENDMENTS RECEIVED THROUGH NOON, APRIL 14, 2008

EDUCATION PROFESSIONAL STANDARDS BOARD: Board

16 KAR 7:010. Kentucky Teacher Internship Program.

PERSONNEL BOARD: Board

101 KAR 1:335. Employee actions.

GENERAL GOVERNMENT CABINET: Kentucky Board of Pharmacy: Board

201 KAR 2:220. Collaborative care agreements.

Kentucky Board of Social Work: Board

201 KAR 23:015. Temporary permission to practice.

201 KAR 23:070. Qualifying education and qualifying experience under supervision.

COMMERCE CABINET: Department of Fish and Wildlife Resources: Fish

301 KAR 1:130. Live bait for personal use.

Game

301 KAR 2:049. Small game and furbearer hunting and trapping on public areas.

301 KAR 2:081. Transportation and holding of native wildlife.

301 KAR 2:111. Deer and turkey hunting on special areas.

301 KAR 2:122. Seasons, methods, and limits for small game.

301 KAR 2:172. Dear hunting seasons, zones, and requirements.

301 KAR 2:178. Deer hunting on Wildlife Management Areas and state parks.

ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department for Environmental Protection: Division of Waste Management: Standards Applicable to Generators of Hazardous Waste

401 KAR 32:010. General provisions for generators.

401 KAR 32:050. Special conditions.

Standards for Owners and Operators; Storage, Treatment and Disposal Facilities

401 KAR 34:005. Definitions for 401 KAR Chapter 34.

401 KAR 34:080. General financial requirements.

Interim Status Standards for Owners and Operators; Treatment, Storage and Disposal Facilities

401 KAR 35:005. Definitions for 301 KAR Chapter 35.

401 KAR 35:080. General financial requirements (IS).

Standards for Management of Specific Hazardous Wastes and Specific Types of Hazardous Waste Management Facilities

401 KAR 36:030. Recyclable materials used in a manner constituting disposal.

Land Disposal Restrictions

401 KAR 37:005. Definitions for 301 KAR Chapter 37.

401 KAR 37:040. Treatment standards.

Hazardous Waste Permitting Process

401 KAR 38:005. Definitions for 301 KAR Chapter 38.

401 KAR 38:040. Changes to permits; expiration of permits.

Standards for Special Collection System Wastes

401 KAR 43:005. Definitions for 301 KAR Chapter 43.

JUSTICE AND PUBLIC SAFETY CABINET: Department of Corrections: Jail Standards for Full-service Facilities

501 KAR 3:140. Prisoner rights.

Jail Standards for Restricted Custody Center Facilities

501 KAR 7:070. Safety; emergency procedures.

Jail Standards for Life Safety Facilities

501 KAR 13:010. Life safety issues.

EDUCATION CABINET: Kentucky Board of Education: Department of Education: Facilities Management

702 KAR 4:180. Implementation guidelines - Kentucky School Facilities Planning Manual.

PROPOSED NEW ADMINISTRATIVE REGULATIONS RECEIVED THROUGH NOON, APRIL 14, 2008:

PERSONNEL CABINET: Classified

101 KAR 2:221. Employee Educational Assistance Program.

COMMERCE CABINET

Department of Fish and Wildlife Resources

Wildlife

301 KAR 4:201. Repeal of 301 KAR 4:200.

APRIL 14, 2008 MINUTES OF THE ARRS

OTHER COMMITTEE REPORTS

LOCATOR INDEX

KRS INDEX

TECHNICAL AMENDMENT INDEX

SUBJECT INDEX

MEETING NOTICE

The Administrative Regulation Review Subcommittee is tentatively scheduled to meet at 10:00 a.m. May 13, 2008 in room 149, Capitol Annex, Frankfort, Kentucky.

The ADMINISTRATIVE REGISTER OF KENTUCKY is the monthly supplement for the 2007 Edition of KENTUCKY ADMINISTRATIVE REGULATIONS SERVICE.

HOW TO CITE: Cite all material in the ADMINISTRATIVE REGISTER OF KENTUCKY by Volume number and Page number. Example: Volume 34, Kentucky Register, page 318 (short form: 34 Ky.R. 318).

KENTUCKY ADMINISTRATIVE REGULATIONS are codified according to the following system and are to be cited by Title, Chapter and Regulation number, as follows:

Title Chapter Regulation

806 KAR 50: 155

Cabinet, Department, Office, Division, Specific

Board, or Agency or Major Function Regulation

ADMINISTRATIVE REGISTER OF KENTUCKY

(ISSN 0096‑1493)

The Administrative Register of Kentucky is published monthly by the Legislative Research Commission, 700 Capitol Avenue, Room 300, Frankfort, Kentucky 40601. Subscription rate, postpaid in the United States: $96 (plus 6% Kentucky sales tax) per year for 12 issues, beginning in July and ending with the June issue of the subsequent year. Periodical postage paid at Frankfort, Kentucky.

POSTMASTER: Send address changes to Administrative Register of Kentucky, 700 Capitol Avenue, Room 64, State Capitol, Frankfort, Kentucky 40601.

KENTUCKY LEGISLATIVE RESEARCH COMMISSION

Chairmen

Senator David L. Williams Representative Jody Richards

Senate President House Speaker

Senate and House Members

Senator Katy Kratz Stine Representative Larry Clark

President Pro Tem Speaker Pro Tem

Senator Dan Kelly Representative Rocky Adkins

Majority Floor Leader Majority Floor Leader

Senator Ed Worley Representative Jeffrey Hoover

Minority Floor Leader Minority Floor Leader

Senator Dan Seum Representative Charlie Hoffman

Majority Caucus Chairman Majority Caucus Chairman

Senator Johnny Ray Turner Representative Bob DeWeese

Minority Caucus Chairman Minority Caucus Chairman

Senator Carroll Gibson Representative Rob Wilkey

Majority Whip Majority Whip

Senator Joey Pendleton Representative Stan Lee

Minority Whip Minority Whip

Robert Sherman, Director

Mike Robinson, Printing and Publications Officer

ADMINISTRATIVE REGULATION REVIEW SUBCOMMITTEE

Members Staff

Senator Richard L. “Dick” Roeding, Co-Chair Dave Nicholas

Representative Robert R. Damron, Co-Chair Emily Caudill

Senator Alice Kerr Donna Little

Senator Joey Pendleton Kara Daniel

Senator Gary Tapp Emily Harkenrider

Representative Danny R. Ford Laura Milam

Representative Jimmie Lee Jennifer Beeler

Representative Ron Weston Laura Napier

Ellen Steinberg

ADMINISTRATIVE REGULATION REVIEW PROCEDURE

(See KRS Chapter 13A for specific provisions)

Filing and Publication

Administrative bodies shall file with the Regulations Compiler all proposed administrative regulations, public hearing and comment period information, regulatory impact analysis and tiering statement, fiscal note, federal mandate comparison, and incorporated material information. Those administrative regulations received by the deadline established in KRS 13A.050 shall be published in the Administrative Register.

Public Hearing and Public Comment Period

The administrative body shall schedule a public hearing on proposed administrative regulations which shall not be held before the 21st day or later than the last workday of the month of publication. Written comments shall also be accepted until the end of the calendar month in which the administrative regulation was published.

The administrative regulation shall include: the place, time, and date of the hearing; the manner in which persons may submit notification to attend the hearing and written comments; that notification to attend the hearing shall be sent no later than 5 workdays prior to the hearing date; the deadline for submitting written comments; and the name, position, address, and telephone and fax numbers of the person to whom notification and written comments shall be sent.

The administrative body shall notify the Compiler, by phone and letter, whether the hearing was held or cancelled and whether written comments were received. If the hearing was held or written comments were received, the administrative body shall file a statement of consideration with the Compiler by the fifteenth day of the calendar month following the month of publication.

No transcript of the hearing need to be taken unless a written request for a transcript is made, and the person requesting the transcript shall have the responsibility of paying for same. A recording may be made in lieu of a transcript.

Review Procedure

After the public hearing and public comment period processes are completed, the administrative regulation shall be reviewed by the Administrative Regulation Review Subcommittee at its next meeting. After review by the Subcommittee, the administrative regulation shall be referred by the Legislative Research Commission to an appropriate jurisdictional committee for a second review. The administrative regulation shall be considered as adopted and in effect as of adjournment on the day the appropriate jurisdictional committee meets or 30 days after being referred by LRC, whichever occurs first.

ADMINISTRATIVE REGULATION REVIEW SUBCOMMITTEE

Minutes of April 14, 2007

The April meeting of the Administrative Regulation Review Subcommittee was held on Monday, April 14, 2008 at 9:00 a.m., in Room 149 of the Capitol Annex. Representative Robert Damron called the meeting to order, the roll call was taken. The minutes of the March 10, 2008 meeting were approved.

Present were:

Members: Senators Joey Pendleton, Richard "Dick" Roeding, and Gary Tapp; and Representatives Robert Damron, Danny Ford, Jimmie Lee, and Ron Weston.

LRC Staff: Dave Nicholas, Donna Little, Kara Daniel, Emily Harkenrider, Laura Milam, Emily Caudill, Jennifer Beeler, Laura Napier, and Ellen Steinberg.

Guests: Katie Gabhart, State Board of Elections; Andy Crocker, Personnel Board; Gary Morris, Celeste Popplewell, Department of Revenue; Michael Burleson, Kentucky Board of Pharmacy; Jonathan Buckley, David Cox, Kentucky Board of Licensure for Professional Engineers and Land Surveyors; J.W. Grabell, Jim Grawe, Kentucky Real Estate Appraisers Board; Darrin Moore, Department for Fish and Wildlife Resources; Karen Howard, Justice and Public Safety Cabinet; Tara Aziz, Carol Hughes, Lucretia Johnson, Carla Montgomery, Office of Workers Claims; John Forgy, Marty Maline, Kentucky Horse Racing Authority; Carrie Banahan, Paul Cooper, Christina Haydon, Betsy Johnson, Jim Kimbraugh, Angela Kirkland, Theresa Meyer, Neville Wise, Department for Medicaid Services; Elizabeth Caywood, Justin Dearinger, Robin Herring, Department of Community Based Services.

The Administrative Regulation Review Subcommittee met on Monday, April 14, 2008, and submits this report:

KENTUCKY STATE BOARD OF ELECTIONS: Help America Vote Act of 2002

31 KAR 6:040. Elections and voting equipment security plan. Katie Gabhart, general counsel, represented the board.

A motion was made and seconded to approve the following amendments: to amend Sections 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

PERSONNEL BOARD: Board

101 KAR 1:325. Probationary periods. Andy Crocker, general counsel, represented the board.

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph and Section 2 to correct statutory citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220; and (3) to amend Sections 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

FINANCE AND ADMINISTRATION CABINET: Department of Revenue: Forms

103 KAR 3:010 & E. General administrative forms manual. Gary Morris, executive director, and Celeste Popplewell, section supervisor, represented the department.

A motion was made and seconded to approve the following amendments: (1) to amend Sections 1 and 2 to comply with the drafting requirements of KRS Chapter 13A; and (2) to amend Section 2 to update a form incorporated by reference to include pass-through entities in the corporation nexus questionnaire. Without objection, and with agreement of the agency, the amendments were approved.

103 KAR 3:040 & E. Income tax forms manual.

A motion was made and seconded to approve the following amendments: (1) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 to 3 to comply with the drafting and format requirements of KRS Chapter 13A; (2) to amend Section 1 to clarify when specified forms should be used; and (3) to amend Section 3 to amend eight of the forms incorporated by reference to comply with the changes made to this administrative regulation. Without objection, and with agreement of the agency, the amendments were approved.

GENERAL GOVERNMENT CABINET: Kentucky Board of Pharmacy: Board

201 KAR 2:300. Common database. Mike Burleson, executive director, represented the board.

A motion was made and seconded to approve the following amendment: (1) to amend the STATUTORY AUTHORITY paragraph to make technical corrections; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220; and (3) to amend Sections 1 and 2 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendment was approved.

Kentucky State Board of Licensure for Professional Engineers and Land Surveyors: Board

201 KAR 18:196. Continuing professional development for engineers. Jonathan Buckley, general counsel, and David Cox, executive director, represented the board.

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to include additional statutory citations; (2) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph to clearly state the necessity for and function served by this administrative regulation, as required by KRS 13A.220; (3) to amend Sections 1 and 3 through 9 to comply with the drafting and format requirements of KRS Chapter 13A; and (4) to delete Section 10 in its entirety. Without objection, and with agreement of the agency, the amendments were approved.

Kentucky Real Estate Appraisers Board: Board

201 KAR 30:050. Examination, continuing education, and experience requirement. J.W. Grabeel, chair, and Jim Grawe, assistant attorney general, represented the board.

A motion was made and seconded to approve the following amendments: to amend Section 3(4) to correct a minor drafting error. Without objection, and with agreement of the agency, the amendments were approved.

201 KAR 30:190 & E. Educational requirements for certification effective January 1, 2008.

In response to a question by Co-Chair Roeding, Mr. Grawe stated that this administrative regulation was not stricter than the federal requirements.

A motion was made and seconded to approve the following amendments: (1) to amend the TITLE of the administrative regulation to delete language no longer needed; and (2) to amend Sections 3, 5, and 6 to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

COMMERCE CABINET: Department for Fish and Wildlife Resources: Game

301 KAR 2:015. Feeding of wildlife. Darin Moore, director, represented the department.

JUSTICE AND PUBLIC SAFETY CABINET: Department of Corrections: Office of the Secretary

501 KAR 6:070. Kentucky Correctional Institution for Women. Karen Howard, attorney, represented the department.

A motion was made and seconded to approve the following amendments: (1) to update the edition dates; and (2) to amend various policies to clarify requirements and comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

501 KAR 6:130. Western Kentucky Correctional Complex.

A motion was made and seconded to approve the following amendments: (1) to update the edition dates; and (2) to amend various policies to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

501 KAR 6:230. Little Sandy Correctional Complex.

A motion was made and seconded to approve the following amendments: (1) to update the edition dates; (2) to correct a policy title; and (3) to amend various policies to comply with the drafting and formatting requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department of Labor: Office of Workers' Claims: Department of Workers' Claims

803 KAR 25:280. Certification of drug-free workplace. Carla Montgomery, general counsel, represented the department.

In response to a question by Co-Chair Roeding, Ms. Montgomery stated that after this administrative regulation became effective, applicants would be able to move quickly through the certification process.

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to insert statutory citations; (2) to amend Sections 1(5), 2(2)(a), 3(6), and 5(8) to provide identifying information regarding procedures, laws, and regulations that are required for compliance with the Drug-Free Workplace Program; (3) to amend Section 3(8)(b)1. to clarify that the MRO shall certify that test results do not indicate unlawful use of alcohol or a controlled substance if the MRO determines there is a legitimate medical explanation for a positive test result; and (4) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 6 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

Department of Public Protection: Kentucky Horse Racing Authority: Thoroughbred Racing

810 KAR 1:027. Entries, subscriptions, and declarations. John Forgy, general counsel, represented the authority. Marty Maline, executive director, represented the Horsemen's Benevolent and Protective Association.

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to delete a citation; (2) to amend Section 1 to delete definitions already defined by KRS 230.210; (3) to amend Section 3 to: (a) clarify that horses entered as “main track only” shall be considered only if the race is taken off the turf, and (b) clarify the types of evidence that shall indicate adequate training to race from the starting gate; (4) to amend Section 5 to clarify that waiver of the prohibition against a horse owned or trained by a person whose spouse is under license suspension depends upon the severity of the offense; (5) to amend Section 6(4)(a) to remove the provision prohibiting two horses having common ties through training from starting in a purse race to the exclusion of a single entry; (6) to amend Section 16(4) to decrease the number of days a horse would be placed on the veterinarian list if scratched due to physical disability or sickness from nine days to six; and (7) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1 through 12, 16, and 17 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

CABINET FOR HEALTH AND FAMILY SERVICES: Department for Medicaid Services: Medicaid Services

907 KAR 1:044. Community mental health center services. Betsy Johnson, commissioner; Carrie Banahan, deputy commissioner; and Christine Haydon, policy analyst, represented the department.

A motion was made and seconded to approve the following amendments: to amend Sections 1 to 6 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

907 KAR 1:815 & E. Nondiagnostic related group inpatient hospital reimbursement.

A motion was made and seconded to approve the following amendments: (1) to amend the TITLE and Sections 1, 17, and 20 to change the word "diagnostic" to "diagnosis", as requested by the agency; (2) to amend the RELATES TO paragraph to correct statutory citations; (3) to amend the NECESSITY, FUNCTION, AND CONFORMITY paragraph and Sections 1, 2, 3, 5, 7, 10, 11, 16, 17, 19, 20, 21, and 22 to comply with the drafting and format requirements of KRS Chapter 13A; (4) to amend Section 2 to delete the separate reimbursement rates for psychiatric care in an in-state acute care hospital; and (5) to amend Section 16 to specify that: (a) the psychiatric operating per diem rate shall equal seventy percent of the median operating cost; and (b) the psychiatric capital per diem rate shall equal seventy percent of the median psychiatric capital per diem cost. Without objection, and with agreement of the agency, the amendments were approved.

907 KAR 1:820 & E. Disproportionate share hospital distributors.

A motion was made and seconded to approve the following amendments: (1) to amend the RELATES TO paragraph to correct statutory citations; and (2) to amend Sections 1 to 5, 7, 8, and 9 to comply with the drafting and format requirements of KRS Chapter 13A. Without objection, and with agreement of the agency, the amendments were approved.

The following administrative regulations were deferred to the next meeting of the Subcommittee:

FINANCE AND ADMINISTRATION CABINET: Department of Revenue: Sales and Use Tax: Administration and Accounting

103 KAR 31:180 & E. Signature project refunds on construction costs.

Tax Increment Financing

103 KAR 50:050. Incremental revenues for income and limited liability entity taxes.

GENERAL GOVERNMENT CABINET: Kentucky Board of Veterinary Examiners: Board

201 KAR 16:110. Prescriptions and dispensation of drugs for animal use.

Board of Licensure and Certification for Dietitians and Nutritionists: Board

201 KAR 33:020. Renewals.

COMMERCE CABINET: Department for Fish and Wildlife Resources: Game

301 KAR 2:041. Shooting preserves and foxhound training enclosures.

JUSTICE AND PUBLIC SAFETY CABINET: Kentucky Law Enforcement Council: Council

503 KAR 1:190 & E. Kentucky Law Enforcement Council.

TRANSPORTATION CABINET: Department of Vehicle Regulation: Driver Improvement

601 KAR 13:070. KRS 159.051. Compliance verification for a minor.

EDUCATION CABINET: Kentucky Board of Education: Department of Education: School Administration and Finance

702 KAR 3:270. SEEK funding formula.

ENVIRONMENTAL AND PUBLIC PROTECTION CABINET: Department of Public Protection: Office of Insurance: Trade Practices and Frauds

806 KAR 12:180. Military sales practices.

CABINET FOR HEALTH AND FAMILY SERVICES: Office of the Secretary: E-Health

900 KAR 7:020. Kentucky e-Health Corporation.

Department for Medicaid Services: Medicaid Services

907 KAR 1:013 & E. Diagnostic-related group (DRG) inpatient hospital reimbursement.

907 KAR 1:160 & E. Home and community based waiver services. Betsy Johnson, commissioner; Carrie Banahan, deputy commissioner; and Christine Haydon, policy analyst, represented the department.

Jim Kimbrough, Kentucky Protection and Advocacy, spoke in opposition to this administrative regulation. He stated that his agency was very supportive of the consumer directed option (CDO) but disagreed with the department regarding the extent of an individual's autonomy to decide whether to live outside of an institutional setting using support available in the community. He stated that an individual may be willing to accept the level of support available in the community in order to stay out of an institution even though more support was needed. He stated that individuals living in the community did not need a caretaker with them at all times and some individuals were willing to take whatever supports were available in order to avoid institutionalization. He stated that in such situations, a risk management plan should be created to facilitate the individual's safety while preserving his or her autonomy.

Ms. Haydon stated that the department had to make certain assurances to the Centers for Medicare and Medicaid Services (CMS) guaranteeing the health, safety, and welfare of individuals and that some were in danger without 24-hour support.

Mr. Kimbrough stated that CMS encouraged using risk management plans to address the issue. In response to a question by Representative Lee, Mr. Kimbrough stated that in some cases the quality of care with the supports available in the community could be so low as to require the individual to be institutionalized, but that it should happen less frequently than it does.

Representative Lee stated he was not aware of anyone being denied a CDO waiver and that a balance should be struck between the quality of care provided and the individual's desire to remain in the community.

In response to a question by Co-Chair Damron, Mr. Kimbrough stated that his agency was involved in formal discussions with the cabinet about this administrative regulation for over a month.

In response to a question by Co-Chair Roeding, Mr. Kimbrough stated there was a 2006 report available that addressed the liability of all of the parties and it was used in discussions with the cabinet.

In response to questions by Representative Ford, Ms. Johnson stated the department recently reinstated a 21-day hold on payments to providers. She stated that this was consistent with administrative regulations that required payment within 30 days. She stated that the hold was instituted to help manage the department's cash flow and that there was an exemption process for providers who needed payment more quickly. She stated that she would review referral patterns.

A motion was made and seconded to defer consideration of this administrative regulation until the Subcommittee's May meeting. Ms. Johnson stated that the department would agree to defer this administrative regulation. Without objection, and with agreement of the agency, this administrative regulation was deferred.

Department of Community Based Services: Day Care

922 KAR 2:170. STARS for KIDS NOW Program for Type I licensed child-care centers. Elizabeth Caywood, policy analyst, and Robin Herring, branch manager, represented the department.

In response to questions by Representative Lee, Ms. Caywood stated that home-based child-care providers were eligible to become STARS providers. Ms. Herring stated that there were incentives for smaller providers and a scholarship program available to cover the cost of training.

Representative Lee stated that small child-care providers were prevented from participating in the program because they had to close their businesses to attend the training. He also stated that he was concerned about a lack of utilization because money for the program had not been spent.

Ms. Caywood stated that the money for the program came from the tobacco settlement and had to be used for child-care. She stated that it could not be used for child welfare initiatives.

Co-Chair Roeding stated he was concerned that the fiscal impact was estimated to require additional funding of over $1 million but the program had money left over in the past. He stated that the money was being used to incentivize the program but was not subsidizing child-care.

A motion was made and seconded to defer consideration of 922 KAR 2:170 and 922 KAR 2:210 until the Subcommittee's May meeting. Ms. Caywood stated that the department would agree to defer these administrative regulations. Without objection, and with agreement of the agency, these administrative regulations were deferred.

922 KAR 2:210. STARS for KIDS NOW Program for Type II licensed and certified family child-care homes.

The Subcommittee adjourned at 10:00 a.m. until May 13, 2008.

OTHER COMMITTEE REPORTS

COMPILER'S NOTE: In accordance with KRS 13A.290(9), the following reports were forwarded to the Legislative Research Commission by the appropriate jurisdictional committees and are hereby printed in the Administrative Register. The administrative regulations listed in each report became effective upon adjournment of the committee meeting at which they were considered.