Keywords: Ky Dept of Fish & Wildlife – Status Report - 00:05:39 KPPA administrative regulation 105 KAR 1:411 - 00:52:25 24 RS HB 777 – AN ACT relating to government contracts and declaring an emergency - 01:01:26 24 RS HB 141 – AN ACT relating to water fluoridation programs - 01:14:36, 958, all

Summary: The committee opened its October meeting with the Pledge of Allegiance, a prayer for people affected by the hurricane in North Carolina and Tennessee, and a roll call that established a quorum. Members approved the September 24, 2024 minutes. The committee then welcomed representatives from the Kentucky Department of Fish and Wildlife, including Commissioner Rich Storm and legislative liaison Jenny Gilbert, for an agency update. Fish and Wildlife’s presentation focused on the department’s mission, staffing, and public access programs. Storm said the agency has seven divisions, about 98 sworn personnel, and is working through recruitment and internal promotions to maintain staffing. He highlighted the K-9 program, information and education camps, hunter education, life jacket and fishing pole loaner programs, the Salato Wildlife Center, and accessibility projects such as handicap kayak/canoe launches and courtesy docks. He also discussed fisheries habitat work, stocking about 4.5 million fish annually, wildlife management, and a major land conservation effort involving 54,000 acres of easements purchased with legislative support. He noted the department’s audits had no findings and emphasized accountability and compliance with state and federal procedures. The presentation also included examples of public outreach and conservation partnerships, including Kentucky Wild membership, NASP archery, and a venison donation effort tied to food insecurity and a backpack ministry. Members praised the agency’s work and asked questions. One question raised concerns about turkey vultures on cell towers; Storm said they are federally protected birds and that the department’s options are limited, though he pointed to permit resources and other nonlethal measures. No votes or formal actions were taken beyond approval of the prior minutes.

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Summary: The commission met in interim session without a quorum, so it did not approve the minutes. Members offered brief recognitions, including praise for William Wells Brown Elementary’s strong test scores and growth, and comments about community support for the school. The chair then reminded members of the commission’s purpose: studying disparities in education, health, economic opportunity, juvenile justice, criminal justice, and related areas affecting minority communities. The main presentation was by Dr. Edward Miller of UofL Health on maternal health in Kentucky, with a focus on maternal mortality and health equity. He argued that maternal outcomes are shaped by social determinants of health such as poverty, neighborhood conditions, education, food access, safety, the health care system, and health literacy, and said policy should address these factors early, not only during pregnancy. He highlighted the PRAPARE social needs assessment used by Juniper Health after the Breathitt County floods as a model for standardized statewide data collection and ZIP-code-level targeting of interventions. Dr. Miller also reviewed disparities in poverty, obesity, cancer screening, and substance use. He said Appalachian and other high-poverty areas face much higher maternal risk, noted Kentucky’s high cancer burden and lower preventive screening rates, and cited studies showing lower Pap smear use among rural Appalachian women than urban women. He said obesity and smoking contribute to pregnancy complications and broader health problems, and that substance use was a contributing factor in 58% of maternal deaths, with overdose deaths declining overall but not equally across racial groups. The meeting did not include any votes or formal actions beyond bypassing the minutes because of the lack of quorum.

Keywords: 00:00:00 Meeting Start / Roll Call 00:01:18 Large US Districts, A Landscape of Governance and Achievement 00:32:28 Overview of the 2023 Transportation Audit Reports 01:13:44 Review of Management Audits and Previous Academic Performance 01:15:20 Review of Special Education Monitoring and Findings 01:45:59 Announcements / Adjournment, 958, all

Summary: The meeting began with a roll call and housekeeping items, including a reminder to silence cell phones and a decision to postpone approval of the previous meeting’s minutes until the next meeting. The committee then heard a presentation from Steven Puit, president of the Southern Regional Education Board, on large school district governance and achievement patterns, with a focus on comparing districts using NAEP’s Trial Urban District Assessment (TUDA) data. Puit said TUDA provides the best apples-to-apples comparison across large urban districts and noted that Jefferson County’s fourth-grade reading performance is below the national level but near the top among large districts, while its eighth-grade reading is around the national average. He emphasized that math performance has declined broadly, especially after COVID, and said most large districts saw significant losses in eighth-grade math and reading. He also described four governance models for large districts—operational, managerial, traditional, and policy—and gave examples such as Kent County, Minneapolis, Seattle, Boston, Providence, Houston, and Montgomery County. He said there is not strong evidence that governance model alone determines achievement; instead, leadership, clear priorities, communication, and feedback loops matter most. Members asked how Kentucky’s site-based decision-making councils fit into these models, and Puit said the structure can work well but depends on people and strong information flow between councils, superintendents, and boards. He also said he had not done a deep study of mayor-controlled school districts but did not see evidence that structure alone drives better results. In response to questions about PISA, he said the assessment offers an international comparison for 15-year-olds, that some states have participated to benchmark themselves against other countries, and that Massachusetts’ use of high school assessment as a graduation requirement helped improve its standing. When asked about JCPS’s move toward a student outcomes-focused governance model, he said it aligns most closely with a policy model and requires strong board-central office communication and ongoing feedback.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:03 Discussion of Phase II of KHC’s Housing Supply Gap Analysis & Housing Policies in other States 00:01:08 Discussion of Housing Issues in Northern Kentucky 00:40:10 Discussion of Housing Issues from perspective of affordable Housing Builders 00:58:38 Discussion of the Impact of Housing Shortages on Homelessness 01:20:57 Discussion of Rehabilitation of Dilapidated Homes 01:58:17, 958, all

Summary: The task force approved the September 23rd minutes and then heard a presentation from Wendy Smith of the Kentucky Housing Corporation on Kentucky’s housing supply gap analysis. Smith said phase one estimated a current statewide gap of just over 206,000 units, and phase two projects that gap will grow to more than 287,000 units by 2029. She explained that the shortage is concentrated in rental housing for lower-income households, while homeownership gaps are more evenly spread across income bands, and that the county-level need is not limited to urban areas but is spread across the Commonwealth. Smith said the five-year projection used more than Census data, including job announcements, local housing pipeline information, KHC pipeline data, and migration trends. She noted that KHC has been receiving increased interest from partners outside its normal funding programs who want to discuss workforce housing and supply issues. She then outlined policy approaches other states are using, grouping them into three broad categories: land-use and zoning changes, state housing tax credits, and funding/financing for housing infrastructure and development. In the zoning category, she described reforms such as by-right accessory dwelling units, allowing two- to four-unit housing in single-family zones, relaxing parking and lot-size rules, streamlining permits, requiring local housing plans, allowing housing in commercial or religious/nonprofit settings, supporting manufactured housing, and limiting institutional investor purchases of homes. She said there has been a surge of state activity in this area. In the tax credit category, she described state low-income housing tax credits and a newer Ohio single-family homeownership credit aimed at workforce buyers. In the infrastructure/development category, she highlighted Indiana’s Residential Infrastructure Fund and READY program, which provide financing for local infrastructure and regional development planning tied in part to housing and quality-of-place goals.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:12 Approval of Minutes 00:01:25 Update from the Kentucky Infrastructure Authority on the WWATERS program 00:01:43 Update from Kentucky’s Electric Cooperatives 00:17:43, 958, all

Summary: The committee first approved the minutes from its September 19 meeting and then received an update from Sandy Williams, executive director of the Kentucky Infrastructure Authority, on the Water and Wastewater Assistance for Troubled or Economically Restrained Systems program created by House Bill 563. Williams said applications were accepted from mid-July through August 30, about 160 applications were received, and requests totaled more than $700 million against $75 million available this fiscal year and $75 million next year. KIA is reviewing applications for completeness and eligibility, using a weighted scoring rubric based on 12 criteria, and will submit a report to LRC by December 1 with applicant evaluations, scores, eligible uses, and funding recommendations. Members asked about whether applicants knew the scoring criteria, how the program’s revolving-fund structure would work, and the source of the funds; Williams said the criteria were shared but weighting was finalized later, the program is intended as a revolving fund with grants and forgivable loans for entities that cannot service debt, and the money is believed to come from general fund dollars and the Budget Reserve Trust Fund. The committee then heard from Kentucky Electric Cooperatives, beginning with Vice President of Government Affairs Chase Krigler, who highlighted mutual-aid response to Hurricanes Helene and Milton and said 19 Kentucky co-ops sent line crews, in what he described as the largest mutual-aid deployment in state history. Krigler outlined the cooperative model, noting that co-ops are member-owned, not-for-profit utilities serving rural areas with lower customer density and lower household incomes, and that profits are reinvested or returned as capital credits. He also discussed legislative priorities from the 2024 session, including funding for an electric reliability defense fund, state park utility infrastructure, broadband-related temporary worker funding, and the EPIC Commission and PSC transparency measures in Senate Bill 349. David Samford, general counsel for East Kentucky Power Cooperative, followed with a more detailed overview of East Kentucky’s system, saying it is a $4 billion electric generation and transmission cooperative serving 16 distribution co-ops in 89 counties and about 1.1 million homes and businesses. He emphasized reliability, the complexity of the electric grid, and the cooperative’s investment in environmental equipment over the past decade. Members asked about the impact of federal energy policy on costs and the financial pressures of serving rural areas; Samford deferred some of that discussion to later in his presentation, while the co-op representatives stressed the need to keep rates affordable while maintaining and hardening infrastructure.

Keywords: Meeting Start: 00:00:01 Roll Call: 00:00:12 Approval of Minutes of the September 19, 2024 Meeting: 00:02:52 Uniform Law Proposals: 00:03:02 Medicaid for Justice-Involved Individuals: 00:39:25 Guardianship Law Update: 01:27:29, 958, all

Summary: The committee approved the September minutes and then heard a presentation from Turny Barry of the Uniform Law Commission on several proposed trust and estate measures. Barry said Kentucky has already modernized much of its trust law and argued these proposals would help keep trust business in-state rather than sending it to out-of-state trustees in places like Tennessee, Ohio, Delaware, Nevada, or Alaska. He first described the Uniform Directed Trust Act, which would let a trustee follow directions from trust directors without liability unless the trustee engaged in willful misconduct. Members questioned why a separate director role is needed and whether the proposal would encourage tying up family farms or businesses for generations. Barry responded that the structure is useful when family members want control over major decisions but do not want the administrative burdens of trusteeship, and that it can help preserve assets while still allowing judgment and flexibility. Barry then outlined the Uniform Trust Decanting Act, saying it would narrow Kentucky’s current broad decanting authority and make the law more uniform and safer, especially for older trusts or changing tax circumstances. He also discussed two electronic acts: an electronic wills act, which would allow fully electronic execution of wills with witnesses and notarization, and an electronic estate planning documents act, which would resolve confusion about whether powers of attorney and health care documents can be signed electronically. He said both are already adopted in many states and would be modest but useful improvements. Finally, Barry mentioned a domestic asset protection trust proposal modeled on Tennessee law and noted Kentucky had previously considered a similar measure that was vetoed. He said the goal is to provide a lawful asset-protection option for Kentucky residents while avoiding drafting problems that could invite court challenges.

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Summary: The committee met with a quorum, approved the minutes from the previous meeting, and then received an update on the Kentucky Livestock Innovation Center from Kentucky Cattlemen’s Association executive Dave Maples and project manager Nikki Whitaker. They thanked the committee, the Department of Local Government, and other partners for support of the project, describing it as a long-planned effort tied to House Bill 1 funding and a ground lease from the University of Kentucky on its Woodford County research farm. Whitaker said the center is intended to be a multidisciplinary tool for the livestock industry, supporting workforce development, value-added production, education and research, producer profitability, consumer information, student enrichment, and stronger food systems. She said construction planning is underway, an oversight committee of producers is in place, and completion is expected around fall 2027, with a groundbreaking planned for the following Tuesday. Committee members asked about possible collaboration with Murray State University’s veterinary initiatives, and Whitaker said the cattlemen’s group already works on veterinary mentorships and would be open to partnering on new or existing programs to improve rural veterinary care. The presentation emphasized collaboration across livestock sectors, public outreach, and using the facility to connect producers, students, health professionals, and researchers without disrupting biosecurity at the research farm. The committee then heard from Murray State University representatives Brian Parr, dean of the Hudson School of Agriculture, and Jordan Smith, assistant vice president of public affairs, who provided an update on the university’s agriculture programs. Parr said the school is undergoing major renovations supported by legislative appropriations and thanked the committee for its help. He highlighted new faculty hires, emergency response training involving livestock transport, endowed professorships and scholarships from private donors, and strong recruitment efforts through high school visits and FFA events. He also noted enrollment growth, expansion of classroom space, a new economic development in agriculture graduate program with Commissioner Jonathan Shell’s office, online graduate offerings, military transition pathways, and ongoing research partnerships with the University of Kentucky and industry partners such as Bayer and BASF.

Keywords: Meeting start 00:00:00 Roll Call 00:00:10 Tax Expenditure Report Update 00:02:10 Current Process for Position Compression Study 00:20:00 Various State Government Employees 00:35:50 Property Tax on Mains, Conduits, Popes, and Pipelines 01:00:55 Structure of Fire Departments Organized under KRS Chapter 75 01:07:22 Volunteers of America 01:25:25 Correspondence and Reports Received 01:45:18, 958, all

Summary: The committee first established quorum, approved the prior meeting minutes, and then took up an update on Kentucky’s tax expenditure report with State Budget Director John Hicks. Hicks reviewed the long-running tax expenditure analysis process, noted that Kentucky’s disclosure practices were rated favorably for transparency, and explained that the report covers 258 items and more than $9 billion in estimated annual tax expenditure cost, with a small number of large items making up most of the total. He said House Bill 8 asked for possible elimination of up to 40 tax expenditures, but emphasized that evaluating that many items would require a structured process, clear purpose and performance standards, and likely a multi-year review cycle similar to other states. Hicks recommended that the General Assembly create either a legislative entity or an independent outside body to oversee periodic review of tax expenditures, and said the work would likely require outside consulting support. He identified a few possible starting points for review—such as the gambling losses deduction, long-term lodging exemption, non-commercial aircraft property tax treatment, and federally documented vessels—explaining that they were selected as relatively narrow items with limited beneficiaries. Members discussed how many expenditures could realistically be reviewed each year, with Hicks saying five annually might be manageable if the goals are clear, but that the office would still need outside expertise. Representative Fleming said the effort was overdue and offered support, while the chair asked Hicks to provide any underlying analysis for the suggested items. The committee then heard from Personnel Cabinet Secretary Mary Elizabeth Bailey, General Counsel R. Mary Hook, and Commissioner Jamie Caldwell on the state’s position compression study. Members reviewed prior requests for an outside RFP-based study to identify the root causes of pay compression and evaluate possible solutions. Personnel officials said a prior recommendation used a tiered percentage increase based on months of service—1% for 24 to 83 months, 3% for 84 to 119 months, 5% to 155 months, and 7% for 156 months or more—and that the proposal had been estimated at about $90 million. They said the recommendation was based on payroll modeling and the goal of spreading employees out to reduce compression, but acknowledged the analysis had not been updated since changes in schedules and regulations. Committee members asked what tools remain available to address pay issues and how much each tool affects compression. Personnel officials said agencies can still reclassify or promote employees up to the midpoint of a grade, and the cabinet also uses ACE awards, resign-and-rehire practices, locality premiums, and other premiums. They agreed to provide information on the relative impact of those tools and said an updated payroll analysis of the compression proposal would take about a month. Senator Boswell also raised concerns about new-hire pay jumps contributing to compression, and Personnel officials responded that hiring rates are driven by market analysis and the state’s job classification review.

Keywords: 0:00:03 Call to Order and Roll Call 0:00:50 Approval of Minutes 0:01:09 Cash Management System 0:30:12 Personnel Review 0:50:14 Riverlink Bridges 1:00:06 Mega Projects Grant Update 1:23:57 Adjournment, 958, all

Summary: The committee first approved the minutes from the last three meetings after a motion and second. Members then received an update from Transportation Cabinet officials on the cabinet’s deployment of highway employees and equipment to North Carolina to assist with flood recovery. Officials said 115 employees would be on the ground by the end of the week, described the mission as self-sufficient and well-prepared, and noted the work had been well received by North Carolina residents. Committee members praised the effort and the cabinet’s willingness to respond quickly. The main presentation covered the cabinet’s cash management system for highway projects. Staff explained that the system, established in the 2022 budget bill and continued in later budgets, is used to ensure the Road Fund maintains a minimum $100 million balance while authorizing project funding based on monthly cash-flow projections for the current year and the next two fiscal years. They described the monthly review process, the authorization review team, and the project initiation steps, including checks for funding availability, programmatic constraints, environmental and right-of-way compliance, and federal/state requirements. If a project does not meet the criteria, it is held until issues are resolved or carried into the next Highway Plan. Members asked about the current Road Fund balance, which officials said was a little over $200 million, while noting the low point is usually in August and planning is already underway for that period. They also discussed how much money is being put out the door, with officials saying the cabinet is working toward about $1.1 billion by the end of the calendar year, and asked about mega projects, which were deferred to later in the agenda. A member also raised concerns about single bids and project safeguards; officials responded that the cabinet uses an estimating process, review committee, and contract criteria to ensure projects meet requirements and that they are comfortable with the process. Another member asked about interest earnings, and officials said the Road Fund is invested through the State’s Office of Financial Management and does earn interest. The committee then heard a personnel review from the Office of Human Resource Management. Officials said 61% of employees are on a 40-hour work week, with the remaining conversion estimated to cost $14.6 million, mostly from the Road Fund. They outlined the cabinet’s telecommuting policy, noting it requires formal agreements, safety checks, and at least three days per week at the primary workstation. They also reported 559 vacancies cabinet-wide, 288 of which are actively in process, with temporary staff being used to maintain services while permanent hires are completed. A pilot weekly hiring program for Highway Technician Assistant I positions in three districts was also announced, with results expected in January and possible expansion statewide if successful.

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Summary: The Budget Subcommittee on Economic Development, Tourism, and Environmental Protection received an update from Kentucky State Parks Commissioner Russ Meyer on the status of capital projects funded in the last session. Meyer thanked the committee for increasing the Parks Construction Branch project limit from $250,000 to $500,000 and for approving $150 million in park funding, including amounts released in 2023 and 2024, plus additional line-item funding. He said the department is working closely with the Finance Cabinet’s DECA and other agencies to administer projects, with many requiring design, RFP, and bidding processes that take months. The presentation reviewed major categories of work: campground and bathhouse upgrades, utility and broadband improvements, structural repairs, wastewater and electrical infrastructure, life-safety upgrades, pools, beaches, playgrounds, golf courses, and dam safety. Specific projects mentioned included campground work at Carter Caves, Cumberland Falls, Ken Lake, and My Old Kentucky Home; broadband projects at multiple campgrounds; emergency structural repairs at Lake Barkley and Jenny Wiley; electrical grid resiliency work at Ken Lake and Kentucky Dam Village; wastewater upgrades at several parks; and improvements to pools, beaches, playgrounds, and accommodations. Meyer also noted that the park system manages 44 state parks across more than 49,000 acres and that facility management is handling 284 additional capital projects totaling nearly $70 million beyond the $150 million package. Members asked follow-up questions about Yatesville Lake marina design, consultant costs, the status of the closed General Butler golf course, and whether golf operations are financially sustainable. Meyer said Yatesville Lake is in design with $1 million currently allocated and the remaining $14 million expected next year, consultants are paid a set fee, General Butler’s former golf course will not be reopened, and the state’s active golf courses are seeing stable play levels. He said the department does not have a hard revenue threshold for closing courses but emphasized that golf facilities also serve tourism and economic development purposes. No votes or formal actions were taken during the meeting.

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Summary: The Budget Review Subcommittee on Education met without a quorum and delayed approval of the minutes. The main presentation came from John Akers of the Kentucky Center for School Safety, who reviewed school safety funding and the evolution of Kentucky’s school safety laws from House Bill 330 (1998) through Senate Bill 8, Senate Bill 1, Senate Bill 2, and Senate Bill 91. He described the center’s work on emergency planning, access control, mental health prevention, the Stop Tip Line, threat assessment training, school safety assessments, and principal mentoring, and said recent funding increases allowed the center to expand services and eliminate waiting lists for school districts. Akers also explained how school safety funds are distributed, including a flat allocation to districts plus a per-student amount, and said the center works with EKU, Murray State, and the Kentucky School Boards Association. He noted that House Bill 63 increased demand for school resource officers and that the center now supports private schools more openly after Senate Bill 91 included them. He also highlighted partnerships for training and support, including the use of retired educators as consultants and mentors for new principals. Members raised concerns about school threats, hoaxes, and evacuations. Representative Riley urged stronger consequences for false threats and said schools, parents, and communities are burdened by repeated rumors; Akers responded that Senate Bill 8 strengthened terroristic threatening penalties and that schools must notify parents early in the year about the law. Representative Tipton echoed concerns about evacuations and asked about principal preparation and the continuation of mentorship programs as COVID funds expire. Akers said the legislature had increased his operating budget, that the mentorship program had grown to 60 participants, and that he would monitor whether funding remains sufficient. Senator McDaniel asked about support for private schools, and Akers said the center has long assisted them and now can do so more directly under current law.

Keywords: Meeting Start 00:00:00 Call to Order and Roll Call 00:00:33 Talent Wars - Workforce Competition Has Intensified 00:01:25 Greater LEX Talent Campaign 00:18:01 Live in Lou! 00:38:23 The Role of Apprenticeship Programs in Attracting and Retaining Kentucky Workers 01:02:40, 958, all

Summary: The Workforce Attraction and Retention Task Force approved the September meeting minutes and then heard a presentation from Ted Abernathy of Economic Leadership on workforce competition and “talent wars.” Abernathy said workforce is now the top competitiveness issue for states and businesses, and argued Kentucky’s flat labor force, aging population, lower-than-average participation rate, and limited in-migration could constrain future growth. He outlined four ways to grow the workforce—more births, higher labor force participation, migrant/foreign workers, and talent attraction—and emphasized that states must actively market themselves or risk having others define their image for them. Abernathy pointed to examples from other states, including Michigan, Florida, New Hampshire, Ohio, and Oklahoma, to illustrate aggressive talent attraction campaigns and urged Kentucky to develop a clear statewide narrative, target key industries, and support child care, education, and other participation-boosting policies. He also noted that workforce attraction is distinct from traditional business attraction and requires a more consumer-focused strategy. No votes were taken on his presentation, and members did not ask questions before he left due to time constraints. The task force then heard from representatives of Commerce Lexington and Greater Louisville Inc., including Andy Johnson, Christine Tarquino, and Shelby Somerville, about a regional competitiveness plan and talent attraction campaign in the Lexington region. They described a collaborative, research-based process involving business, government, education, and tourism leaders across nine counties, with outside assistance from Economic Leadership and Development Counsellors International. Their findings showed the region was in the middle of the pack on competitiveness, had strong quality-of-life assets but weak momentum indicators, and was not widely known in target markets such as Cincinnati, Indianapolis, Nashville, and Chicago. The presenters said the regional effort is funded by both private business and local government, with more than $1 million raised from businesses and nearly $600,000 from governments, and that the plan aims to double annual workforce growth from about 600 people. They stressed that the campaign should represent all nine counties and focus on a small number of actionable priorities that can be resourced and executed effectively. No formal action or vote was taken on this presentation.

Keywords: KY LRC YouTube, https://www.youtube.com/watch?v=2pHQkA6U3zc, 2026-07-05T06:58:06+00:00, 2.2.24, Data collected via generic collector engine, Meeting Start – 0:00:00 Roll Call - 0:00:14 Credit Union Industry Update – 0:01:45 Kentucky Bankers Assoc. Update – 0:17:30 Adjournment – 0:56:29, 958, all, 2.2.43, 2.1.47

Keywords: The live stream cut out early and will be uploaded later from back up., 958, all

Summary: The committee heard extensive public testimony on a Department of Corrections regulation affecting prisoners with serious mental illness and on a separate regulation governing prisoner participation in medical research. Advocates argued the department’s definition of serious mental illness was too narrow, citing national prevalence estimates, their own observations in prisons, and concerns that inmates with untreated conditions face self-harm, suicide, solitary confinement, and recidivism. They urged the department to adopt the broader American Correctional Association definition and to defer the regulation. In response, Corrections officials said their policies already include multiple layers of review, regular mental-health checks in restrictive housing, and procedures to move inmates to psychiatric treatment when needed. On the research issue, the department said federal IRB and informed-consent requirements already protect inmates’ capacity to consent, and that an added screening requirement could unnecessarily block some inmates, especially those in jails or the community, from research opportunities. After discussion, the committee approved staff amendments and moved on without further questions. The committee then took up the Office of Medical Cannabis regulations on application, licensing, issuance, petition, and revocation procedures for cannabis business licenses. Staff amendments were adopted without objection. Officials explained the fee structure, including nonrefundable application and renewal fees, and said the application fees were intended to help fund the program. Members asked about the number of applications and whether the fees would cover program costs; the office reported 4,998 applications and roughly $27.7 million in nonrefundable application fees, which officials said would substantially offset costs, though additional funding might be needed later. Next, the committee considered Kentucky Community and Technical College System regulations on capital construction project management and contracting. Staff amendments were approved without objection, and no member questions were raised. The committee also reviewed a Department of Insurance regulation updating Medicare supplement insurance standards, including new definitions, health-status discrimination protections for certain Medicare-eligible individuals, guaranteed issue periods, and technical conforming changes; staff amendments were approved without objection. Finally, the committee heard Department for Public Health regulations establishing hemp-derived cannabinoid product definitions, permits, registration, manufacturing, sampling, and testing requirements. After staff amendments were adopted, industry witnesses raised concerns that the rules may exceed statutory authority, create overlapping regulation with the Department of Agriculture, restrict shipment of extract between licensed processors, and rely on outdated background-check standards. The committee then heard additional testimony from a retail representative, and the discussion continued.

Keywords: 00:10 Call to Order and Roll Call 01:35 Information Items 04:40 Approval of Minutes 05:17 Lease Rpt from Postsecondary Institutions 07:14 Project Rpt from Finance and Admin Cabinet 14:15 Lease Rpt from Finance and Admin Cabinet 16:23 Rpt from OFM – KY Infrastructure Authority 29:07 Office of Financial Mgmt – New Debt Issues 31:13 School District Debt Issues – New Projects 35:57 Adjournment, 958, all

Summary: The committee first handled routine business, including a quorum call and approval of the minutes. Members then received a series of informational capital project and property reports covering state agencies, universities, and school districts. These included quarterly and annual capital project status reports, debt reports, lease reports, and notices of university and school district financing activity. Several items were approved by voice or roll call votes, including a UK Healthcare lease in Lexington, a Rockcastle County Cabinet for Health and Family Services lease, and multiple capital project actions. Janice Thomas, Deputy State Budget Director, presented seven projects. The three action items were a $3 million Clark County eastbound rest area remodel, a $600,000 amendment to the Ashland Readiness Center renovation, and a $252,200 increase for heating and cooling replacements at the Western Kentucky Veteran Center. She also reported four non-action projects: two Cabinet for Health and Family Services maintenance projects at Outwood Cottage and Western State Hospital, a Big Sandy Community and Technical College chiller replacement, and Lake Barkley wastewater and infrastructure upgrades. All of these were described as maintenance, safety, accessibility, or infrastructure improvements, and the action items were approved. The Kentucky Infrastructure Authority then reported two loans and a large set of grants. The loans were a $22.5 million Clean Water SRF loan for Shepherdsville wastewater treatment plant improvements and a $4.47 million Drinking Water SRF loan for the Logan Todd Regional Water Commission. Members asked about how projects are evaluated and were told the authority uses a 4,000-gallon average bill and median household income to assess affordability and disadvantaged community status, and that rates are reviewed to ensure loan repayment. Sandy Williams also explained a $1.827 million emergency grant for the City of Marion tied to a water shortage and regional consolidation efforts, and provided a brief update that 36 of 40 House Bill 1 line-item grants had been administered, with 11 sewer grants and 25 water grants. The committee approved the reported items and then approved two debt issues: a Kentucky Housing Corporation conduit bond issue and a Western Kentucky University bond issuance for new construction, renovations, and refunding. It also approved four school district debt issues totaling about $111 million, with discussion noting the state’s improved credit rating and the importance of structural budgeting discipline.