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AN ACT relating to administrative law.



Be it enacted by the General Assembly of the Commonwealth of Kentucky:

1 SECTION 1. A NEW SECTION OF KRS CHAPTER 13B IS CREATED TO



2 READ AS FOLLOWS:



3 (1) The Administrative Law Board is hereby created as an independent agency



4 within the executive branch of state government.



5 (2) The Administrative Law Board shall consist of five (5) members who possess the



6 qualifications of a Circuit Judge.



7 (a) Two (2) members of the board shall be from the majority political party and



8 shall not be otherwise associated with state government and shall be



9 appointed by the Governor from a list of six (6) names submitted by the



10 executive committee of the majority political party;



11 (b) Two (2) members of the board shall be from the minority political party and



12 shall not otherwise be associated with state government and shall be



13 appointed by the Governor from a list of six (6) names submitted by the



14 executive committee of the majority political party;



15 (c) One (1) member of the board shall be an employee of the executive branch



16 of state government and shall be appointed by the Governor from a list of



17 three (3) names submitted by the organization representing the largest



18 number of state employees; and



19 (d) Members of the Administrative Law Board shall serve a term of four (4)



20 years and may be reappointed once, if their name is again submitted by the



21 nominating body.



22 (3) As used in Sections 1 to 6 of this Act unless the context otherwise requires:



23 (a) "Administrative law judge" means a person appointed as an administrative

24 law judge pursuant to Sections 1 to 6 of this Act and does not include any



25 administrative law judge appointed by the Worker's Compensation Board



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1 pursuant to KRS Chapter 342;



2 (b) "Board" means the Administrative Law Board;



3 (c) "Case" means a matter relating to discipline of a licensee or other



4 administrative matter filed by or against a cabinet or independent agency of



5 state government and shall be treated, for statistical purposes, as is a case in



6 the court system. Each hearing or other proceeding an administrative law



7 judge is required to have on the case shall not be counted for purposes of



8 assigning administrative law judges;



9 (d) "Claim" means a complaint filed with a cabinet or independent agency of



10 state government for relief or other purpose for which a hearing is required.



11 The number of hearings required on the claim shall not be counted for



12 purposes of assigning administrative law judges. The term "claim" does not



13 include any claim filed with the Board of Claims pursuant to applicable



14 statutes;



15 (e) "Majority political party" means the political party which received the



16 highest number of votes for the office of Governor in the immediately



17 preceding general election; and



18 (f) "Minority political party" means the political party which received the



19 second highest number of votes for the office of Governor in the



20 immediately preceding general election.



21 (4) Members of the board shall receive no salary but shall be reimbursed for their



22 actual and necessary expenses relating to their service on the board.



23 (5) The board shall:



24 (a) Recommend administrative law judges for appointment by the Governor;



25 (b) Unless a specific statute sets an administrative procedure, set by

26 administrative regulation, any duties and procedures relating to



27 administrative law judges;



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1 (c) Assign administrative law judges to executive branch cabinets and



2 independent agencies;



3 (d) Hear complaints against an administrative law judge and may take any



4 action against an administrative law judge which the Judicial Retirement



5 and Removal Commission could take against a judge; and



6 (e) Employ such professional, administrative, and support staff as necessary.

7 SECTION 2. A NEW SECTION OF KRS CHAPTER 13B IS CREATED TO



8 READ AS FOLLOWS:



9 (1) The position of administrative law judge is created within the executive branch of



10 state government. The administrative law judge shall:



11 (a) Possess the qualifications of a Circuit Judge;



12 (b) Be appointed by the Governor from a list of three (3) names submitted by



13 the administrative law board;



14 (c) Be confirmed by the Senate of the General Assembly;



15 (d) Serve a term of four (4) years and may be reappointed once if again placed



16 on the nomination list by the board;



17 (e) Conduct administrative hearings pursuant to KRS Chapter 13B and other



18 statutes in which an administrative hearing is required or authorized;



19 (f) Successfully complete the basic training and in-service training required by



20 administrative regulations of the board; and



21 (g) Receive the salary of a Circuit Judge;



22 (2) The board may disqualify an administrative law judge from hearing a case or



23 cases for grounds including, but not limited to, the following:



24 (a) Serving as an investigator, prosecutor, or defense attorney in the proceeding



25 or the preadjudicative states of the proceeding;

26 (b) Participating in an ex parte communication which would prejudice the



27 proceedings;



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1 (c) Having a pecuniary interest in the outcome of the proceeding; or



2 (d) Having a personal bias toward or against any party to the proceeding which



3 would cause a prejudgment of the outcome of the proceeding.

4 SECTION 3. A NEW SECTION OF KRS CHAPTER 13B IS CREATED TO



5 READ AS FOLLOWS:



6 (1) The board shall assign administrative law judges to cabinets and independent



7 agencies of state government on the basis of one (1) administrative law judge for



8 each nine hundred (900) claims and cases filed during the previous fiscal year.



9 (2) Each cabinet and each independent agency of the executive branch of state



10 government shall, by September 1 of each year, submit to the board and to the



11 Legislative Research Commission the number of claims and cases filed relating



12 to the cabinet or agency during the previous fiscal year.



13 (3) When the reported caseload for an administrative law judge exceeds nine



14 hundred (900) claims and cases filed per year the board shall, within budgetary



15 limitations, authorize the hiring of an additional administrative law judge.



16 (4) If a cabinet or independent agency of state government has fewer than nine



17 hundred (900) cases or claims in a fiscal year then the board may assign an



18 administrative law judge to cover enough cabinets or independent agencies to



19 reach the desired caseload.



20 (5) (a) An administrative law judge who serves one (1) cabinet or agency shall be



21 compensated by that agency which shall pay the salary and benefits of that



22 administrative law judge.



23 (b) An administrative law judge who serves more than one (1) cabinet or



24 agency shall be compensated by each agency served in proportion to the



25 number of claims or cases filed with each cabinet or agency. The agency

26 with the largest number of claims or cases shall be responsible for paying



27 the salary and benefits of that administrative judge and the other agency or



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1 other agencies served by the administrative law judge shall reimburse the



2 paying agency for its share of the salary and benefits based upon the claims



3 and cases.



4 (c) In the event of a disqualification or other inability of an administrative law



5 judge to serve in a particular case any other administrative law judge may



6 be assigned temporarily by the board to hear any particular claim or case.



7 (d) In the event of the filing of an excessive number of cases, a cabinet or



8 independent agency may request the board to assign an administrative law



9 judge from another cabinet or agency to the requesting agency for the



10 period necessary to resolve the claims or cases.



11 (e) In the event of a temporary assignment of an administrative law judge



12 pursuant to paragraph (c) or (d) of this subsection the agency by which the



13 administrative law judge is normally paid shall be reimbursed by the



14 requesting agency in the manner provided in paragraph (b) of this



15 subsection.

16 SECTION 4. A NEW SECTION OF KRS CHAPTER 13B IS CREATED TO



17 READ AS FOLLOWS:



18 (1) In any cabinet or independent agency the administrative law judge shall be



19 assigned to the inspector general of that cabinet or agency, if there is an inspector



20 general.



21 (2) If there is no inspector general in a cabinet or independent agency the



22 administrative law judge shall be assigned to the office of the general counsel for



23 the agency, if there is a general counsel.



24 (3) If there is no inspector general or general counsel in a cabinet or independent



25 agency the administrative law judge shall be assigned to the person with

26 administrative control of the agency.

27 SECTION 5. A NEW SECTION OF KRS CHAPTER 13B IS CREATED TO



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1 READ AS FOLLOWS:



2 (1) An administrative law judge cannot be fired or disciplined by the agency



3 employing the administrative law judge or the agency to which the administrative



4 law judge is assigned. In the event that discipline or firing is needed, the agency



5 shall file a complaint with the board which shall have exclusive jurisdiction over



6 the matter.



7 (2) An administrative law judge may be reassigned within the agencies of a cabinet



8 by the cabinet based upon caseload. Assignment of an administrative law judge to



9 another cabinet or independent administrative agency shall be under the



10 jurisdiction of the administrative law board. Any cabinet or independent agency



11 may request the board to make a temporary or permanent reassignment of an



12 administrative law judge.

13 SECTION 6. A NEW SECTION OF KRS CHAPTER 13B IS CREATED TO



14 READ AS FOLLOWS:



15 The General Assembly requests the Supreme Court of Kentucky, pursuant to Section



16 111 of the Constitution of Kentucky, to permit appeals from a decision of an



17 administrative law judge to be heard directly by the Court of Appeals of Kentucky.

18 Section 7. KRS 13B.010 is amended to read as follows:



19 As used in this chapter, unless the context requires otherwise:



20 (1) "Administrative agency" or "agency" means each state board, bureau, cabinet,



21 commission, department, authority, officer, or other entity in the executive branch



22 of state government authorized by law to conduct administrative hearings.



23 (2) "Administrative hearing" or "hearing" means any type of formal adjudicatory



24 proceeding conducted by an agency as required or permitted by statute or regulation



25 to adjudicate the legal rights, duties, privileges, or immunities of a named person.

26 (3) "Party" means:



27 (a) The named person whose legal rights, duties, privileges, or immunities are



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1 being adjudicated in the administrative hearing;



2 (b) Any other person who is duly granted intervention in an administrative



3 hearing; and



4 (c) Any agency named as a party to the adjudicatory proceeding or entitled or



5 permitted by the law being enforced to participate fully in the administrative



6 hearing.



7 (4) "Agency head" means the individual or collegial body in an agency that is



8 responsible for entry of a final order.

9 (5) "Recommended order" means the whole or part of a preliminary hearing report to an



10 agency head for the disposition of an administrative hearing.



11 (6) "Final order" means the whole or part of the final disposition of an administrative



12 hearing, whenever made effective by an agency head, whether affirmative, negative,



13 injunctive, declaratory, agreed, or imperative in form.



14 (7) "Administrative Law Judge[Hearing officer]" means the individual, duly qualified



15 and employed pursuant to Sections 1 to 6 of this Act[this chapter], assigned by an



16 agency head as presiding officer for an administrative hearing or the presiding



17 member of the agency head.



18 [(8) "Division" means the Division of Administrative Hearings in the Office of the



19 Attorney General created pursuant to KRS 15.111.]



20 Section 8. KRS 13B.050 is amended to read as follows:



21 (1) In any administrative hearing, the agency shall conduct the hearing as soon as



22 practicable and shall give notice of the hearing to the parties not less than twenty



23 (20) days in advance of the date set for the hearing, unless otherwise required by



24 federal law. An agency shall make reasonable effort to schedule a hearing on a date



25 that is convenient to the parties involved.

26 (2) The notice required by subsection (1) of this section shall be served on the parties



27 by certified mail, return receipt requested, sent to the last known address of the



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1 parties, or by personal service, with the exception of notices of Personnel Board



2 hearings and all board orders which may be served by first-class mail. Service by



3 certified mail shall be complete upon the date on which the agency receives the



4 return receipt or the returned notice.



5 (3) The notice required by this section shall be in plain language and shall include:



6 (a) A statement of the date, time, place, and nature of the hearing;



7 (b) The name, official title, and mailing address of the administrative law



8 judge[hearing officer];

9 (c) The names, official titles, mailing addresses, and, if available, telephone



10 numbers of all parties to the hearing, including the counsel or representative



11 of the agency;



12 (d) A statement of the factual basis for the agency action along with a statement



13 of issues involved, in sufficient detail to give the parties reasonable



14 opportunity to prepare evidence and argument;



15 (e) A reference to the specific statutes and administrative regulations which relate



16 to the issues involved and the procedure to be followed in the hearing;



17 (f) A statement advising the person of his right to legal counsel;



18 (g) A statement of the parties' right to examine, at least five (5) days prior to the



19 hearing, a list of witnesses the parties expect to call at the hearing, any



20 evidence to be used at the hearing and any exculpatory information in the



21 agency's possession; and



22 (h) A statement advising that any party who fails to attend or participate as



23 required at any stage of the administrative hearing process may be held in



24 default under this chapter.



25 (4) If an agency decides not to conduct an administrative hearing in response to a

26 petition, the agency shall notify the petitioner of its decision in writing, with a brief



27 statement of the agency's reasons and any administrative review available to the



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1 petitioner.



2 Section 9. KRS 13B.060 is amended to read as follows:



3 (1) The administrative law judge[hearing officer] shall grant a petition for intervention



4 if:



5 (a) The petitioner has a statutory right to initiate the proceeding in which he



6 wishes to intervene; or



7 (b) The petitioner has an interest which is or may be adversely affected by the



8 outcome of the proceeding.

9 (2) The administrative law judge[hearing officer] may grant intervention after



10 consideration of the following factors and a determination that intervention is in the



11 interests of justice:



12 (a) The nature of the issues;



13 (b) The adequacy of representation of the petitioner's interest which is provided



14 by the existing parties to the proceeding;



15 (c) The ability of the petitioner to present relevant evidence and argument; and



16 (d) The effect of intervention on the agency's ability to implement its statutory



17 mandate.



18 (3) Unless otherwise required by federal law, a petition for intervention shall be filed



19 and copies mailed to all parties named in the notice of the hearing, at least fourteen



20 (14) days before the hearing. The parties to the hearing shall have seven (7) days



21 within which to file any response they may have to the petition to intervene. If a



22 petitioner qualifies for intervention under subsection (2) of this section, the



23 administrative law judge[hearing officer] may impose conditions upon the



24 intervenor's participation in the proceedings, either at the time that intervention is



25 granted or at any subsequent time. Conditions may include:

26 (a) Limiting the intervenor's participation to designated issues in which the



27 intervenor has a particular interest demonstrated by the petition;



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1 (b) Limiting the intervenor's use of discovery, cross-examination, and other



2 procedures so as to promote the orderly and prompt conduct of the



3 proceedings; and



4 (c) Requiring two (2) or more intervenors to combine their presentations of



5 evidence and argument, cross-examination, discovery, and other participation



6 in the proceedings.



7 (4) The administrative law judge[hearing officer], at least three (3) days before the



8 hearing, shall issue an order granting or denying each pending petition for

9 intervention, specifying any conditions, and briefly stating the reasons for the order.



10 The administrative law judge[hearing officer] shall promptly give notice of an



11 order granting, denying, or modifying intervention to the petitioner for intervention



12 and to all parties.



13 Section 10. KRS 13B.070 is amended to read as follows:



14 (1) An administrative law judge[A hearing officer] may convene and conduct a



15 prehearing conference upon reasonable notice to all parties to explore jurisdictional



16 matters, mediation and settlement possibilities, preparation of stipulations,



17 clarification of issues, rulings on witnesses, taking of evidence, issuance of



18 subpoenas and orders, and other matters that will promote the orderly and prompt



19 conduct of the hearing.



20 (2) Upon conclusion of a prehearing conference, the administrative law judge[hearing



21 officer] shall issue a prehearing order incorporating all matters determined at the



22 prehearing conference. If a prehearing conference is not held, the administrative



23 law judge[hearing officer] may issue a prehearing order, based on the pleadings, to



24 regulate the conduct of the hearing.



25 (3) Except to the extent precluded by another provision of law, mediation or informal

26 settlement of matters that may make unnecessary more elaborate proceedings under



27 this chapter is encouraged. Agencies that employ informal settlement procedures



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1 shall establish by administrative regulation the specific procedures to be used. This



2 subsection shall not be construed, however, as requiring any party to settle a matter



3 pursuant to informal procedures when the right to an administrative hearing is



4 conferred.



5 Section 11. KRS 13B.080 is amended to read as follows:



6 (1) An administrative law judge[A hearing officer] shall preside over the conduct of an



7 administrative hearing and shall regulate the course of the proceedings in a manner



8 which will promote the orderly and prompt conduct of the hearing. When a

9 prehearing order has been issued, the administrative law judge[hearing officer]



10 shall regulate the hearing in conformity with the prehearing order.



11 (2) The administrative law judge[hearing officer], at appropriate stages of the



12 proceedings, shall give all parties full opportunity to file pleadings, motions,



13 objections, and offers of settlement. The administrative law judge[hearing officer],



14 at appropriate stages of the proceedings, may give all parties full opportunity to file



15 briefs, proposed findings of fact and conclusions of law, and proposed



16 recommended or final orders. The original of all filings shall be mailed to the



17 agency, and copies of any filed item shall be served on all parties and the



18 administrative law judge[hearing officer] by mail or any other means permitted by



19 law or prescribed by agency administrative regulation. The agency shall when it is



20 received stamp the time and date upon a document.



21 (3) The administrative law judge[hearing officer] may issue subpoenas and discovery



22 orders when requested by a party or on his own volition. When a subpoena is



23 disobeyed, any party may apply to the Circuit Court of the judicial circuit in which



24 the administrative hearing is held for an order requiring obedience. Failure to



25 comply with an order of the court shall be cause for punishment as a contempt of

26 the court.



27 (4) To the extent necessary for the full disclosure of all relevant facts and issues, the



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1 administrative law judge[hearing officer] shall afford all parties the opportunity to



2 respond, present evidence and argument, conduct cross-examination, and submit



3 rebuttal evidence, except as restricted by limited grant of intervention or a



4 prehearing order.



5 (5) Any party to an administrative hearing may participate in person or be represented



6 by counsel. In informal proceedings, a party may be represented by other



7 professionals if appropriate and if permitted by the agency by administrative



8 regulation.

9 (6) If a party properly served under KRS 13B.050 fails to attend or participate in a



10 prehearing conference, hearing, or other stage of the administrative hearing process,



11 or fails to comply with the orders of an administrative law judge[a hearing officer],



12 the administrative law judge[hearing officer] may adjourn the proceedings and



13 issue a default order granting or denying relief as appropriate, or may conduct the



14 proceedings without the participation of the defaulting party, having due regard for



15 the interests of justice and the orderly and prompt conduct of the proceedings. A



16 default order shall be considered a recommended order and shall be processed as



17 provided in KRS 13B.110.



18 (7) An administrative law judge[A hearing officer] may conduct all or part of an



19 administrative hearing, or a prehearing conference, by telephone, television, or other



20 electronic means, if each party to the hearing has an opportunity to hear, and, if



21 technically feasible, to see the entire proceeding as it occurs, and if each party



22 agrees.



23 (8) An administrative hearing shall be open to the public unless specifically closed



24 pursuant to a provision of law. If an administrative hearing is conducted by



25 telephone, television, or other electronic means, and is not closed, public access

26 shall be satisfied by giving the public an opportunity, at reasonable times, to hear or



27 inspect the agency's record.



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1 Section 12. KRS 13B.090 is amended to read as follows:



2 (1) In an administrative hearing, findings of fact shall be based exclusively on the



3 evidence on the record. The administrative law judge[hearing officer] shall exclude



4 evidence that is irrelevant, immaterial, unduly repetitious, or excludable on



5 constitutional or statutory grounds or on the basis of evidentiary privilege



6 recognized in the courts of this Commonwealth. Hearsay evidence may be



7 admissible, if it is the type of evidence that reasonable and prudent persons would



8 rely on in their daily affairs, but it shall not be sufficient in itself to support an

9 agency's findings of facts unless it would be admissible over objections in civil



10 actions.



11 (2) All testimony shall be made under oath or affirmation. Any part of the evidence



12 may be received in written form if doing so will expedite the hearing without



13 substantial prejudice to the interests of any party. The administrative law



14 judge[hearing officer] may make a recommended order in an administrative hearing



15 submitted in written form if the administrative law judge[hearing officer]



16 determines there are no genuine issues of material fact in dispute and judgment is



17 appropriate as a matter of law.



18 (3) Any party shall have the right to inspect, at least five (5) days prior to the hearing, a



19 list of all witnesses every other party expects to call at the hearing, and the available



20 documentary or tangible evidence relating to an administrative hearing either in



21 person or by counsel. Copies of documentary evidence may be obtained upon the



22 payment of a fee, except documents protected from disclosure by state or federal



23 law. Nothing in this section shall be construed as giving a party the right to examine



24 or copy the personal notes, observations, or conclusions of the agency staff, unless



25 exculpatory in nature, nor shall it be construed as allowing access to the work

26 product of counsel for the agency. Conditions for examining and copying agency



27 records, fees to be charged, and other matters pertaining to access to these records



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1 shall be governed by KRS 61.870 to 61.884. To the extent required by due process,



2 the administrative law judge[hearing officer] may order the inspection of any



3 records excluded from the application of KRS 61.870 to 61.884 under KRS 61.878



4 that relate to an act, transaction, or event that is a subject of the hearing, and may



5 order their inclusion in the record under seal.



6 (4) Objections to evidentiary offers may be made by any party and shall be noted in the



7 record.



8 (5) The administrative law judge[hearing officer] may take official notice of facts

9 which are not in dispute, or of generally-recognized technical or scientific facts



10 within the agency's specialized knowledge. The administrative law judge[hearing



11 officer] shall notify all parties, either before or during the hearing, or in preliminary



12 reports or otherwise, of any facts so noticed and their source. All parties shall be



13 given an opportunity to contest facts officially noticed.



14 (6) The agency shall cause all testimony, motions, and objections in a hearing to be



15 accurately and completely recorded. Any person, upon request, may receive a copy



16 of the recording or a copy of the transcript, if the hearing has been transcribed, at



17 the discretion of the agency, unless the hearing is closed by law. The agency may



18 prepare a transcript of a hearing or a portion of a hearing upon request but the party



19 making the request shall be responsible for the transcription costs. The form of all



20 requests and fees charged shall be consistent with KRS 61.870 to 61.884.



21 (7) In all administrative hearings, unless otherwise provided by statute or federal law,



22 the party proposing the agency take action or grant a benefit has the burden to show



23 the propriety of the agency action or entitlement to the benefit sought. The agency



24 has the burden to show the propriety of a penalty imposed or the removal of a



25 benefit previously granted. The party asserting an affirmative defense has the

26 burden to establish that defense. The party with the burden of proof on any issue has



27 the burden of going forward and the ultimate burden of persuasion as to that issue.



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1 The ultimate burden of persuasion in all administrative hearings is met by a



2 preponderance of evidence in the record. Failure to meet the burden of proof is



3 grounds for a recommended order from the administrative law judge[hearing



4 officer].



5 Section 13. KRS 13B.100 is amended to read as follows:



6 (1) Unless required for the disposition of ex parte matters specifically authorized by



7 statute, an administrative law judge[a hearing officer] shall not communicate off



8 the record with any party to the hearing or any other person who has a direct or

9 indirect interest in the outcome of the hearing, concerning any substantive issue,



10 while the proceeding is pending.



11 (2) The prohibition stated in subsection (1) shall not apply to[:



12 (a) ] communication with other agency staff, if the communication is not an ex



13 parte communication received by staff[; and



14 (b) Communication among members of a collegial body or panel which by law is



15 serving as a hearing officer].



16 (3) If an ex parte communication occurs, the administrative law judge[hearing officer]



17 shall note the occurrence for the record, and he shall place in the record a copy of



18 the communication, if it was written, or a memorandum of the substance of the



19 communication, if it was oral.



20 Section 14. KRS 13B.110 is amended to read as follows:



21 (1) Except when a shorter time period is provided by law, the administrative law



22 judge[hearing officer] shall complete and submit to the agency head, no later than



23 sixty (60) days after receiving a copy of the official record of the proceeding, a



24 written recommended order which shall include his or her findings of fact,



25 conclusion of law, and recommended disposition of the hearing, including

26 recommended penalties, if any. The recommended order shall also include a



27 statement advising parties fully of their exception and appeal rights.



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1 (2) If an extension of time is needed by the administrative law judge[hearing officer] to



2 complete and submit his recommended order to the agency head, the administrative



3 law judge[hearing officer] shall show good cause to the agency head, in writing,



4 and based upon substantial proof, that an extension of time is needed.



5 (3) If the agency head, after a showing of good cause, grants the administrative law



6 judge[hearing officer] an extension of time:



7 (a) The extension shall not exceed thirty (30) days from the date the extension



8 was granted;

9 (b) The statement granting the extension shall be included in the record of the



10 hearing; and



11 (c) Notice of the extension shall be sent to all parties.



12 (4) A copy of the administrative law judge's[hearing officer's] recommended order



13 shall also be sent to each party in the hearing and each party shall have fifteen (15)



14 days from the date the recommended order is mailed within which to file exceptions



15 to the recommendations with the agency head. Transmittal of a recommended order



16 may be sent by regular mail to the last known address of the party.



17 (5) The provisions of this section shall not apply in an administrative hearing where the



18 administrative law judge[hearing officer] conducts the hearing in the presence of



19 the agency head who renders a decision without the recommendation of the



20 administrative law judge[hearing officer].



21 Section 15. KRS 13B.120 is amended to read as follows:



22 (1) In making the final order, the agency head shall consider the record including the



23 recommended order and any exceptions duly filed to a recommended order.



24 (2) The agency head may accept the recommended order of the administrative law



25 judge[hearing officer] and adopt it as the agency's final order, or it may reject or

26 modify, in whole or in part, the recommended order, or it may remand the matter, in



27 whole or in part, to the administrative law judge[hearing officer] for further



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1 proceedings as appropriate.



2 (3) The final order in an administrative hearing shall be in writing and stated in the



3 record. If the final order differs from the recommended order, it shall include



4 separate statements of findings of fact and conclusions of law. The final order shall



5 also include the effective date of the order and a statement advising parties fully of



6 available appeal rights.



7 (4) Except as otherwise required by federal law, the agency head shall render a final



8 order in an administrative hearing within ninety (90) days after:

9 (a) The receipt of the official record of the hearing in which there was no



10 administrative law judge[hearing officer] submitting a recommended order



11 under KRS 13B.110; or



12 (b) The administrative law judge[hearing officer] submits a recommended order



13 to the agency head, unless the matter is remanded to the administrative law



14 judge[hearing officer] for further proceedings.



15 (5) Unless waived by the party, a copy of the final order shall be transmitted to each



16 party or to his attorney of record in the same manner as provided in KRS 13B.050.



17 (6) This section shall not apply to disposition pursuant to KRS 13B.070(3).



18 (7) If, pursuant to statute, an agency may review the final order of another agency, the



19 review is deemed to be a continuous proceeding as if before a single agency. The



20 final order of the first agency is treated as a recommended order and the second



21 agency functions as though it were reviewing a recommended order in accordance



22 with this section.



23 Section 16. KRS 13B.125 is amended to read as follows:



24 (1) An agency may take emergency action affecting the legal rights, duties, privileges or



25 immunities of named persons without a hearing only if duly authorized by statute to

26 so act. If an agency takes emergency action, the agency shall conduct an emergency



27 hearing in accordance with the provisions of this section.



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1 (2) An agency head or an official of an agency duly authorized by law to summarily act



2 in emergency situations may issue an emergency order to stop, prevent, or avoid an



3 immediate danger to the public health, safety, or welfare. The emergency order shall



4 contain findings of fact and conclusions of law upon which the agency bases the



5 emergency order. The agency shall give notice of the emergency order to all



6 affected parties as is practicable under the circumstances, and notice shall be served



7 in the same manner as provided in KRS 13B.050(2). The emergency order is



8 effective when received by the affected party or his representative.

9 (3) Any person required to comply with an emergency order issued under subsection (2)



10 of this section may request an emergency hearing to determine the propriety of the



11 order. The agency shall conduct an emergency hearing within ten (10) working days



12 of the request for hearing. The agency shall give all affected parties reasonable



13 notice of the hearing and to the extent practicable shall conduct the hearing in



14 conformity with this chapter. The hearing on the emergency order may be



15 conducted by an administrative law judge[a hearing officer qualified in accordance



16 with KRS 13B.040]. Within five (5) working days of completion of the hearing, the



17 agency or administrative law judge[hearing officer] shall render a written decision



18 affirming, modifying, or revoking the emergency order. The emergency order shall



19 be affirmed if there is substantial evidence of a violation of law which constitutes an



20 immediate danger to the public health, safety, or welfare.



21 (4) The decision rendered under subsection (3) of this section shall be a final order of



22 the agency on the matter, and any party aggrieved by the decision may appeal to



23 Circuit Court in the same manner as provided in KRS 13B.140.



24 Section 17. KRS 13B.130 is amended to read as follows:



25 In each administrative hearing, an agency shall keep an official record of the proceedings

26 which shall consist of:



27 (1) All notices, pleadings, motions, and intermediate rulings;



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1 (2) Any prehearing orders;



2 (3) Evidence received and considered;



3 (4) A statement of matters officially noticed;



4 (5) Proffers of proof and objections and rulings thereon;



5 (6) Proposed findings, requested orders, and exemptions;



6 (7) A copy of the recommended order, exceptions filed to the recommended order, and



7 a copy of the final order;



8 (8) All requests by the administrative law judge[ hearing officer] for an extension of

9 time, and the response of the agency head;



10 (9) Ex parte communications placed upon the record by the administrative law



11 judge[hearing officer]; and



12 (10) A recording or transcript of the proceedings.



13 Section 18. KRS 17.560 is amended to read as follows:



14 (1) Prior to the refusal to issue, renew, probate, suspend, or revoke the approval of a



15 provider, the board shall conduct a hearing in accordance with the provisions of this



16 chapter and KRS Chapter 13B.



17 (a) The hearing may be conducted by an administrative law judge[a hearing



18 officer];



19 (b) The administrative law judge[hearing officer] may only issue a recommended



20 order, and the recommended order shall be subject to review by a majority of



21 the full board, which shall issue a final order.



22 (2) The board may proceed against an approved provider on its own initiative, on the



23 basis of either information contained in its own records, or information obtained



24 through its informal investigation.



25 (3) If a formal complaint verified by affidavit is filed with the board by a responsible

26 citizen or organization containing allegations that if true would warrant action, the



27 board may proceed against the approved provider.



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1 (4) Any final order of the board may be appealed to the Franklin Circuit Court in



2 accordance with KRS Chapter 13B.



3 Section 19. KRS 18A.065 is amended to read as follows:



4 The board, each member of the board, the executive director and any administrative law



5 judge[hearing officer] of the board and the secretary shall have the power to administer



6 oaths, subpoena witnesses, and compel the production of books and papers pertinent to



7 any investigation or hearing authorized by KRS 18A.005 to 18A.200. Any person who



8 shall fail to appear in response to a subpoena or to answer any question or produce any

9 books or papers pertinent to any such investigation or hearing or who shall knowingly



10 give false testimony therein shall be subject to the provisions of KRS 18A.990.



11 Section 20. KRS 18A.090 is amended to read as follows:



12 (1) As provided by the budget enacted by the General Assembly and other laws



13 applicable to state personnel, the board shall appoint an executive director who shall



14 be the chief administrative officer of the board and serve as secretary to the board.



15 He shall have proven administrative and managerial experience and familiarity with



16 equal employment opportunity laws and regulations. The board shall appoint other



17 employees it deems necessary in accordance with the provisions of this chapter. The



18 salaries of the executive director and other employees of the board shall be



19 determined by order of the board. The executive director of the board shall prepare



20 the budget request for approval by the board in the form and manner required by



21 applicable law. For the purposes of KRS Chapter 48 the board shall be considered a



22 budget unit.



23 (2) The board shall appoint a general counsel pursuant to KRS 12.210 to provide legal



24 services for the board. Upon request of the board, the Attorney General may



25 designate the general counsel as an assistant attorney general. The general counsel

26 provided for by this subsection shall not be employed by personal service contract



27 and shall be a full-time employee of the board. The general counsel shall serve as



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1 an administrative law judge[a hearing officer] for the board.



2 Section 21. KRS 18A.095 is amended to read as follows:



3 (1) (a) The provisions of this section shall not apply to employees commissioned



4 pursuant to the provisions of KRS 281.770.



5 (b) Dismissals, demotions, suspensions, and other penalizations of these



6 commissioned employees, and appeals relating thereto, shall be governed by



7 the provisions of KRS 281.771 and 281.772.



8 (2) A classified employee with status shall not be dismissed, demoted, suspended, or

9 otherwise penalized except for cause.



10 (3) Prior to dismissal, a classified employee with status shall be notified in writing of



11 the intent to dismiss him. The notice shall also state:



12 (a) The specific reasons for dismissal including:



13 1. The statutory or regulatory violation;



14 2. The specific action or activity on which the intent to dismiss is based;



15 3. The date, time, and place of such action or activity; and



16 4. The name of the parties involved; and



17 (b) That the employee has the right to appear personally, or with counsel if he has



18 retained counsel, to reply to the head of the cabinet or agency or his designee.



19 (4) The Personnel Cabinet shall prescribe and distribute a form to be completed and



20 forwarded by an employee who wishes to appear before the head of the cabinet or



21 agency or his designee, to each appointing authority. The form shall be attached to



22 every notice of intent to dismiss, and shall contain written instructions explaining:



23 (a) The right granted an employee under the provisions of this section relating to



24 pretermination hearings; and



25 (b) The time limits and procedures to be followed by all parties in pretermination

26 hearings.



27 (5) No later than five (5) working days after receipt of the notice of intent to dismiss,



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1 excluding the day he receives the notice, the employee may request to appear,



2 personally or with counsel if he has retained counsel, to reply to the head of the



3 cabinet or agency or his designee.



4 (6) Unless waived by the employee, the appearance shall be scheduled within six (6)



5 working days after receipt of an employee's request to appear before the head of the



6 cabinet or agency or his designee, excluding the day his request is received.



7 (7) No later than five (5) working days after the employee appears before the head of



8 the cabinet or agency or his designee, excluding the day of the appearance, the

9 cabinet head or agency or his designee shall:



10 (a) Determine whether to dismiss the employee or to alter, modify, or rescind the



11 intent to dismiss; and



12 (b) Notify the employee in writing of the decision.



13 (8) If the cabinet or agency head or his designee determines that the employee shall be



14 dismissed or otherwise penalized, the employee shall be notified in writing of:



15 (a) The effective date of his dismissal or other penalization;



16 (b) The specific reason for this action, including:



17 1. The statutory or regulatory violation;



18 2. The specific action or activity on which the dismissal or other



19 penalization is based;



20 3. The date, time, and place of the action or activity; and



21 4. The name of the parties involved;



22 (c) That he may appeal the dismissal or other penalization to the board within



23 sixty (60) days after receipt of this notification, excluding the day he receives



24 notice.



25 (9) A classified employee with status who is demoted, suspended, or otherwise

26 penalized shall be notified in writing of:



27 (a) The demotion, suspension, or other penalization;



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1 (b) The effective date of the demotion, suspension, or other penalization;



2 (c) The specific reason for the action including:



3 1. The statutory or regulatory violation;



4 2. The specific action or activity on which the demotion, suspension, or



5 other penalization is based;



6 3. The date, time, and place of the action or activity; and



7 4. The name of the parties involved; and



8 (d) That he has the right to appeal to the board within sixty (60) days, excluding

9 the day that he received notification.



10 (10) Any unclassified employee who is dismissed, demoted, suspended, or otherwise



11 penalized for cause may, within thirty (30) days after the dismissal, demotion,



12 suspension, or other form of penalization, appeal to the board for review thereof.



13 (11) (a) An employee whose position is reallocated shall be notified in writing by the



14 appointing authority of:



15 1. The reallocation; and



16 2. His right to request reconsideration by the secretary within ten (10)



17 working days of receipt of the notice, excluding the day he receives



18 notification;



19 (b) He shall be provided with a form prescribed by the secretary on which to



20 request reconsideration; and



21 (c) The employee shall file a written request for reconsideration of the



22 reallocation of his position with the secretary in a manner and form prescribed



23 by the secretary and shall be given a reasonable opportunity to be heard



24 thereon by the secretary. The secretary shall make a determination within sixty



25 (60) days after the request has been filed by an employee. After

26 reconsideration of the request by the secretary, the employee may appeal to the



27 board.



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1 (12) Any state employee, applicant for employment, or eligible on a register may appeal



2 to the board on the grounds that his right to inspect or copy records, including



3 preliminary and other supporting documentation, relating to him has been denied,



4 abridged, or impeded by a public agency. The board shall conduct a hearing to



5 determine whether the records related to the employee, applicant, or eligible, and



6 whether his right to inspect or copy these records was denied, abridged, or impeded.



7 If the board determines that the records related to the employee and that the right to



8 inspect or copy these records has been denied, abridged, or impeded, the board shall

9 order the public agency to make them available for inspection and copying and shall



10 charge the cost of the hearing to the public agency. A state employee, an applicant



11 for employment, and an eligible on a register shall not have the right to inspect or to



12 copy any examination materials.



13 (13) Any classified employee may appeal to the board an action alleged to be based on



14 discrimination due to race, color, religion, national origin, sex, disability, or age



15 forty (40) and above. Nothing in this section shall be construed to preclude any



16 classified or unclassified employee from filing with the Kentucky Commission on



17 Human Rights a complaint alleging discrimination on the basis of race, color,



18 religion, national origin, sex, disability, or age in accordance with KRS Chapter



19 344.



20 (14) When an eligible's name is removed from a register, the secretary shall notify the



21 eligible of his action and the reasons therefor, together with his right of appeal. An



22 eligible's name shall be restored to the register upon presentation of reasons



23 satisfactory to the secretary or in accordance with the decision of the board.



24 (15) (a) Any employee, applicant for employment, or eligible on a register, who



25 believes that he has been discriminated against, may appeal to the board;

26 (b) Any applicant whose application for admission to an open-competitive



27 examination has been rejected shall be notified of this rejection and the



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1 reasons therefor and may appeal to the board for reconsideration of his



2 qualifications and for admission to the examination. Applicants may be



3 conditionally admitted to an examination by the secretary pending



4 reconsideration by the board;



5 (c) Any applicant who has taken an examination may appeal to the board for a



6 review of his rating in any part of the examination to assure that uniform



7 rating procedures have been applied equally and fairly;



8 (d) An appeal to the board by applicants or eligibles under subsections (11) and

9 (13) of this section and under this subsection shall be filed in writing with the



10 executive director not later than thirty (30) calendar days after the notification



11 of the action in question was mailed.



12 (16) An evaluation may be appealed to the board if an employee has complied with the



13 review procedure established in KRS 18A.110(7)(j).



14 (17) (a) Appeals to the board shall be in writing on an appeal form prescribed by the



15 board. Appeal forms shall be available at the employee's place of work. The



16 Personnel Cabinet shall be responsible for the distribution of these forms;



17 (b) The appeal form shall be attached to any notice, or copy of any notice, of



18 dismissal, demotion, suspension, fine, involuntary transfer, or other



19 penalization, reallocation, or notice of any other action an employee may



20 appeal under the provisions of this section. The appeal form shall instruct the



21 employee to state whether he is a classified or unclassified employee, his full



22 name, his appointing authority, work station address and telephone number,



23 and, if he has retained counsel at the time he files an appeal, the name,



24 address, and telephone number of his attorney;



25 (c) The form shall also instruct a classified employee to state the action he is

26 appealing in a short, plain, concise statement of the facts. The form shall



27 instruct an unclassified employee to make a short, plain, concise statement of



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1 the reason for the appeal and the cause given for his dismissal; and



2 (d) Upon receipt of the appeal by the board, the appointing authority and the



3 Personnel Cabinet shall be notified and the board shall schedule a hearing.



4 (18) All administrative hearings conducted by the board shall be conducted in



5 accordance with KRS Chapter 13B.



6 (19) (a) The board may deny a hearing to an employee who has failed to file an appeal



7 within the time prescribed by this section; and to an unclassified employee



8 who has failed to state the reasons for the appeal and the cause for which he

9 has been dismissed. The board may deny any appeal after a preliminary



10 hearing if it lacks jurisdiction to grant relief. The board shall notify the



11 employee of its denial in writing and shall inform the employee of his right to



12 appeal the denial under the provisions of KRS 18A.100;



13 (b) Any investigation by the board of any matter related to an appeal filed by an



14 employee shall be conducted only upon notice to the employee, the



15 employee's counsel, and the appointing authority. All parties to the appeal



16 shall have access to information produced by the investigations and the



17 information shall be presented at the hearing.



18 (20) Each appeal shall be decided individually, unless otherwise agreed by the parties



19 and the board. The board shall not:



20 (a) Employ class action procedures; or



21 (b) Conduct test representative cases.



22 (21) Board members shall abstain from public comment about a pending or impending



23 proceeding before the board. This shall not prohibit board members from making



24 public statements in the course of their official duties or from explaining for public



25 information the procedures of the board.

26 (22) An appeal to the board may be heard by the full board or one (1) or more of the



27 following: Its executive director, its general counsel, any nonelected member of the



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1 board, or any administrative law judge[hearing officer secured by the board



2 pursuant to KRS 13B.030].



3 (23) (a) If the board finds that the action complained of was taken by the appointing



4 authority in violation of laws prohibiting favor for, or discrimination against,



5 or bias with respect to, his political or religious opinions or affiliations or



6 ethnic origin, or in violation of laws prohibiting discrimination because of



7 such individual's sex or age or disability, the appointing authority shall



8 immediately reinstate the employee to his former position or a position of like

9 status and pay, without loss of pay for the period of his penalization, or



10 otherwise make the employee whole unless the order is stayed by the board or



11 the court on appeal;



12 (b) If the board finds that the action complained of was taken without just cause,



13 the board shall order the immediate reinstatement of the employee to his



14 former position or a position of like status and pay, without loss of pay for the



15 period of his penalization, or otherwise make the employee whole unless the



16 order is stayed by the board or the court on appeal;



17 (c) If the board finds that the action taken by the appointing authority was



18 excessive or erroneous in view of all the surrounding circumstances, the board



19 shall direct the appointing authority to alter, modify, or rescind the



20 disciplinary action;



21 (d) In all other cases, the board shall direct the appointing authority to rescind the



22 action taken or otherwise grant specific relief or dismiss the appeal.



23 (24) If a final order of the board is appealed, a court shall award reasonable attorney fees



24 to an employee who prevails by a final adjudication on the merits as provided by



25 KRS 453.260. This award shall not include attorney fees attributable to the hearing

26 before the board.



27 (25) When any employee is dismissed and not ordered reinstated after the appeal, the



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1 board in its discretion may direct that his name be placed on an appropriate



2 reemployment list for employment in any similar position other than the one from



3 which he had been removed.



4 (26) After a final decision has been rendered by the board or court, an employee who



5 prevails in his appeal shall be credited with the amount of leave time used for time



6 spent at his hearing before the board or court. Employees who had an insufficient



7 amount of leave time shall be credited with leave time equal to the amount of time



8 spent at their hearings before the board or court.

9 (27) If the appointing authority appeals the final order of the board, unless the board



10 rules otherwise, the reinstated employee shall remain in his former position, or a



11 position of like status or pay, until the conclusion of the appeals process, at which



12 time the appointing authority shall take action in accordance with the court order.



13 (28) For the purposes of subsections (3), (4), (5), (6), (7), and (8) of this section, the



14 word "agency" means any agency not assigned to a cabinet for organizational



15 purposes.



16 (29) Notwithstanding any other prescribed limitation of action, an employee that has



17 been penalized, but has not received a written notice of his or her right to appeal as



18 provided in this section, shall file his or her appeal with the Personnel Board within



19 one (1) year from the date of the penalization or from the date that the employee



20 reasonably should have known of the penalization.



21 Section 22. KRS 44.070 is amended to read as follows:



22 (1) A Board of Claims, composed of the members of the Crime Victims Compensation



23 Board as hereinafter provided, is created and vested with full power and authority to



24 investigate, hear proof, and to compensate persons for damages sustained to either



25 person or property as a proximate result of negligence on the part of the

26 Commonwealth, any of its cabinets, departments, bureaus, or agencies, or any of its



27 officers, agents, or employees while acting within the scope of their employment by



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1 the Commonwealth or any of its cabinets, departments, bureaus, or agencies;



2 provided, however, regardless of any provision of law to the contrary, the



3 Commonwealth, its cabinets, departments, bureaus, and agencies, and its officers,



4 agents, and employees, while acting within the scope of their employment by the



5 Commonwealth or any of its cabinets, departments, bureaus, or agencies, shall not



6 be liable for collateral or dependent claims which are dependent on loss to another



7 and not the claimant, damages for mental distress or pain or suffering, and



8 compensation shall not be allowed, awarded, or paid for said claims for damages.

9 Furthermore, any damage claim awarded shall be reduced by the amount of



10 payments received or right to receive payment from workers' compensation



11 insurance, social security programs, unemployment insurance programs, medical,



12 disability or life insurance programs, or other federal or state or private program



13 designed to supplement income or pay claimant's expenses or damages incurred.



14 Any claim against the Commonwealth, its departments, agencies, officers, agents,



15 or employees, or a school district board of education, its members, officers, agents,



16 or employees for damages sustained as the result of exposure to asbestos before,



17 during or after its removal from a facility owned, leased, occupied, or operated by



18 the Commonwealth or a school district board of education shall be brought before



19 the Board of Claims. Except as herein provided, the board shall be independent of



20 all agencies, cabinets, and departments of the Commonwealth except as provided in



21 KRS 44.070 to 44.160.



22 (2) The board shall be composed of the members of the Crime Victims Compensation



23 Board. The members shall not be entitled to additional compensation for their



24 services on the Board of Claims.



25 (3) The Governor shall designate a member of the board to serve as chairman for a term

26 of four (4) years. Any vacancy in the chairmanship shall be filled by the Governor.



27 No member shall, at the same time, serve as chairman of the Crime Victims



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1 Compensation Board and as chairman of the Board of Claims.



2 (4) The employees of the Crime Victims Compensation Board, without additional



3 compensation, shall be ex officio employees of the Board of Claims.



4 (5) Regardless of any provision of law to the contrary, the jurisdiction of the board is



5 exclusive, and a single claim for the recovery of money or a single award of money



6 shall not exceed two hundred thousand dollars ($200,000), exclusive of interest and



7 costs. However, if a single act of negligence results in multiple claims, the total



8 award may not exceed three hundred fifty thousand dollars ($350,000), to be

9 equitably divided among the claimants, but in no case may any claimant



10 individually receive more than two hundred thousand dollars ($200,000).



11 (6) The Governor shall appoint the necessary number of administrative law



12 judges[hearing officers], each of whom shall be an attorney admitted to practice law



13 in Kentucky and shall have practiced law for at least three (3) years. These officers,



14 upon the direction of the chairman or the board, shall conduct hearings, and



15 otherwise supervise the presentation of evidence and perform any other duties



16 assigned to them by the chairman or the board, except that such administrative law



17 judges[hearing officers] shall not render final decisions, orders, or awards.



18 However, such administrative law judges[hearing officers] may, in receiving



19 evidence on behalf of the board, make such rulings affecting the competency,



20 relevancy, and materiality of the evidence about to be presented and upon motions



21 presented during the taking of evidence as will expedite the preparation of the case.



22 (7) The board may at any time recommend the removal of any administrative law



23 judge[hearing officer] upon filing with the Governor a full written statement of its



24 reasons for such removal.



25 (8) Upon recommendation to the board by the attorney for the Commonwealth, its

26 cabinet, department, bureau, agency, or employee thereof, that a settlement has been



27 reached between the parties to the claim, and upon approval by the board that the



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1 settlement is reasonable for all parties concerned, the agreed judgment or dismissal



2 may be entered accordingly, even without a party's admission to liability.



3 Section 23. KRS 61.615 is amended to read as follows:



4 (1) If the board's medical examiner determines that a recipient of a disability retirement



5 allowance is, prior to his normal retirement date, employed in a position with the



6 same or similar duties, or in a position with duties requiring greater residual



7 functional capacity and physical exertion, as the position from which he was



8 disabled, except where the recipient has returned to work on a trial basis not to

9 exceed nine (9) months, the system may reduce or discontinue the retirement



10 allowance. Each recipient of a disability retirement allowance who is engaged in



11 gainful employment shall notify the system of any employment; otherwise, the



12 system shall have the right to recover payments of a disability retirement allowance



13 made during the employment.



14 (2) If the board's medical examiner determines that a recipient of a disability retirement



15 allowance is, prior to his normal retirement date, no longer incapacitated by the



16 bodily injury, mental illness, or disease for which he receives a disability retirement



17 allowance, the board may reduce or discontinue the retirement allowance.



18 (3) The system shall have full power and exclusive authority to reduce or discontinue a



19 disability retirement allowance and the system shall utilize the services of a medical



20 examiner as provided in KRS 61.665, in determining whether to continue, reduce,



21 or discontinue a disability retirement allowance under this section.



22 (a) The system shall select a medical examiner to evaluate the forms and medical



23 information submitted by the person. If there is objective medical evidence of



24 a mental impairment, the medical examiner may request the board's licensed



25 mental health professional to assist in determining the level of the mental

26 impairment.



27 (b) The medical examiners shall be paid a reasonable amount by the retirement



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1 system for each case evaluated.



2 (c) The medical examiner shall recommend that disability retirement allowance



3 be continued, reduced, or discontinued.



4 1. If the medical examiner recommends that the disability retirement



5 allowance be continued, the system shall make retirement payments in



6 accordance with the retirement plan selected by the person.



7 2. If the medical examiner recommends that the disability retirement



8 allowance be reduced or discontinued, the system shall send notice of

9 the recommendation by United States first-class mail to the person’s last



10 address on file in the retirement office.



11 a. The person shall have sixty (60) days from the day that the system



12 mailed the notice to file at the retirement office additional



13 supporting employment or medical information and certify to the



14 retirement office that the forms and additional supporting



15 employment information or medical information are ready to be



16 evaluated by the medical examiner or to appeal the



17 recommendation of the medical examiner to reduce or discontinue



18 the disability retirement allowance by filing at the retirement office



19 a request for a formal hearing.



20 b. If the person fails or refuses to file at the retirement office the



21 forms, the additional supporting employment information, and



22 current medical information or to appeal the recommendation of



23 the medical examiners to reduce or discontinue the disability



24 retirement allowance, his retirement allowance shall be



25 discontinued on the first day of the month following the expiration

26 of the period of the sixty (60) days from the day the system mailed



27 the notice of the recommendation to the person’s last address on



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1 file in the retirement office.



2 (d) The medical examiner shall make a recommendation based upon the



3 evaluation of additional supporting medical information submitted in



4 accordance with paragraph (c)2.a. of this subsection.



5 1. If the medical examiner recommends that the disability retirement



6 allowance be continued, the system shall make disability retirement



7 payments in accordance with the retirement plan selected by the person.



8 2. If the medical examiner recommends that the disability retirement

9 allowance be reduced or discontinued based upon the evaluation of



10 additional supporting medical information, the system shall send notice



11 of this recommendation by United States first-class mail to the person’s



12 last address on file in the retirement office.



13 a. The person shall have sixty (60) days from the day that the system



14 mailed the notice of the recommendation to appeal the



15 recommendation to reduce or discontinue the disability retirement



16 allowance by filing at the retirement office a request for formal



17 hearing.



18 b. If the person fails or refuses to appeal the recommendation of the



19 medical examiners to reduce or discontinue the disability



20 retirement allowance, his retirement allowance shall be



21 discontinued on the first day of the month following the expiration



22 of the period of the sixty (60) days from the day the system mailed



23 the notice of the recommendation to the person’s last address on



24 file in the retirement office.



25 (e) Any person whose disability benefits have been reduced or discontinued,

26 pursuant to paragraph (c)2. or (d)2. of this subsection, may file at the



27 retirement office a request for formal hearing to be conducted in accordance



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1 with KRS Chapter 13B. The right to demand a formal hearing shall be limited



2 to a period of sixty (60) days after the person had notice, as described in



3 paragraph (c) or (d) of this subsection. The request for formal hearing shall be



4 filed with the system, at the retirement office in Frankfort. The request for



5 formal hearing shall include a short and plain statement of the reasons the



6 reduction, discontinuance, or denial of disability retirement is being contested.



7 (f) Failure of the person to request a formal hearing within the period of time



8 specified shall preclude the person from proceeding any further with

9 contesting the reduction or discontinuation of disability retirement allowance,



10 except as provided in subsection (6)(d) of this section. This paragraph shall



11 not limit the person’s right to appeal to a court.



12 (g) A final order of the board shall be based on substantial evidence appearing in



13 the record as a whole and shall set forth the decision of the board and the facts



14 and law upon which the decision is based. If the board orders that the person’s



15 disability retirement allowance be discontinued or reduced, the order shall



16 take effect on the first day of the month following the day the system mailed



17 the order to the person’s last address on file in the retirement office. Judicial



18 review of the final board order shall not operate as a stay and the system shall



19 discontinue or reduce the person’s disability retirement allowance as provided



20 in this section.



21 (h) Notwithstanding any other provisions of this section, the system may require



22 the person to submit to one (1) or more medical or psychological



23 examinations at any time. The system shall be responsible for any costs



24 associated with any examinations of the person requested by the medical



25 examiner or the system for the purpose of providing medical information

26 deemed necessary by the medical examiner or the system. Notice of the time



27 and place of the examination shall be mailed to the person or his legal



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1 representative. If the person fails or refuses to submit to one (1) or more



2 medical examinations, his rights to further disability retirement allowance



3 shall cease.



4 (i) All requests for a hearing pursuant to this section shall be made in writing.



5 (4) The board may establish an appeals committee whose members shall be appointed



6 by the chair and who shall have the authority to act upon the recommendations and



7 reports of the administrative law judge[hearing officer] pursuant to this section on



8 behalf of the board.

9 (5) Any person aggrieved by a final order of the board may seek judicial review after all



10 administrative appeals have been exhausted by filing a petition for judicial review



11 in the Franklin Circuit Court in accordance with KRS Chapter 13B.



12 (6) If a disability retirement allowance is reduced or discontinued, the person may apply



13 for early retirement benefits as provided under KRS 61.559, subject to the following



14 provisions:



15 (a) The person may not change his beneficiary or payment option;



16 (b) If the person has returned to employment with an employer participating in the



17 system from which he retired, the service and creditable compensation shall



18 be used in recomputing his benefit, except that the person's final



19 compensation shall not be less than the final compensation last used in



20 determining his retirement allowance;



21 (c) The benefit shall be reduced as provided by KRS 61.595(2);



22 (d) The person shall remain eligible for reinstatement of his disability allowance



23 upon reevaluation by the medical review board until his normal retirement



24 age. The person shall apply for reinstatement of disability benefits in



25 accordance with the provisions of this section. If the person establishes that

26 the disability benefits should be reinstated, the retirement system shall pay



27 disability benefits effective from the first day of the month following the



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1 month in which the person applied for reinstatement of the disability benefits;



2 and



3 (e) Upon attaining normal retirement age, the person shall receive the higher of



4 either his disability retirement allowance or his early retirement allowance.



5 (7) No disability retirement allowance shall be reduced or discontinued by the system



6 after the person's normal retirement date except in case of reemployment as



7 provided for by KRS 61.637. If a disability retirement allowance has been reduced



8 or discontinued, except if the person is reemployed as provided for by KRS 61.637,

9 the retirement allowance shall be reinstated upon attainment of the person's normal



10 retirement age to the retirement allowance prior to adjustment. No reinstated



11 payment shall be less than the person is receiving upon attainment of the person's



12 normal retirement age.



13 Section 24. KRS 61.645 is amended to read as follows:



14 (1) The County Employees Retirement System, Kentucky Employees Retirement



15 System, and State Police Retirement System shall be administered by the board of



16 trustees of the Kentucky Retirement Systems composed of nine (9) members, who



17 shall be selected as follows:



18 (a) The secretary of the Personnel Cabinet shall serve as trustee for as long as he



19 occupies the position of secretary under KRS 18A.015, except as provided



20 under subsections (5) and (6) of this section;



21 (b) Two (2) trustees, who shall be members or retired from the County Employees



22 Retirement System, elected by the members and retired members of the



23 County Employees Retirement System;



24 (c) One (1) trustee, who shall be a member or retired from the State Police



25 Retirement System, elected by the members and retired members of the State

26 Police Retirement System;



27 (d) Two (2) trustees, who shall be members or retired from the Kentucky



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1 Employees Retirement System, elected by the members and retired members



2 of the Kentucky Employees Retirement System; and



3 (e) Three (3) trustees, appointed by the Governor of the Commonwealth. Of the



4 three (3) trustees appointed by the Governor, one (1) shall be knowledgeable



5 about the impact of pension requirements on local governments.



6 (2) The board is hereby granted the powers and privileges of a corporation, including



7 but not limited to the following powers:



8 (a) To sue and be sued in its corporate name;

9 (b) To make bylaws not inconsistent with the law;



10 (c) To conduct the business and promote the purposes for which it was formed;



11 (d) To contract for investment counseling, actuarial, auditing, medical, and other



12 professional or technical services as required to carry out the obligations of



13 the board without limitation, notwithstanding the provisions of KRS Chapters



14 45, 45A, 56, and 57;



15 (e) To purchase fiduciary liability insurance;



16 (f) To acquire, hold, sell, dispose of, pledge, lease, or mortgage, the goods or



17 property necessary to exercise the board's powers and perform the board's



18 duties without limitation, notwithstanding the limitations of KRS Chapters 45,



19 45A, and 56; and



20 (g) The board shall reimburse any trustee, officer, or employee for any legal



21 expense resulting from a civil action arising out of the performance of his



22 official duties.



23 (3) Notwithstanding the provisions of subsection (1) of this section, each trustee shall



24 serve a term of four (4) years or until his successor is duly qualified except as



25 otherwise provided in this section. An elected trustee shall not serve more than five

26 (5) consecutive four (4) year terms. An elected trustee who has served five (5)



27 consecutive terms may be elected again after an absence of four (4) years from the



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1 board.



2 (4) (a) The trustees selected by the membership of each of the various retirement



3 systems shall be elected by ballot. For each trustee to be elected, the board



4 may nominate, not less than six (6) months before a term of office of a trustee



5 is due to expire, three (3) constitutionally eligible individuals;



6 (b) Individuals may be nominated by the retirement system members which are to



7 elect the trustee by presenting to the executive director, not less than four (4)



8 months before a term of office of a trustee is due to expire, a petition, bearing

9 the name, Social Security number, and signature of no less than one-tenth



10 (1/10) of the number voting in the last election by the retirement system



11 members;



12 (c) Within four (4) months of the nominations made in accordance with



13 paragraphs (a) and (b) of this subsection, the executive director shall cause to



14 be prepared an official ballot. The ballot shall carry the name, address, and



15 position title of each individual nominated by the board and by petition.



16 Provisions shall also be made for write-in votes;



17 (d) The ballots shall be distributed to the eligible voters by mail to their last



18 known residence address;



19 (e) The ballots shall be addressed to the Kentucky Retirement Systems in care of



20 a predetermined box number at a United States Post Office located within



21 Kentucky. Access to this post office box shall be limited to the board's



22 contracted auditing firm. The individual receiving a plurality of votes shall be



23 declared elected;



24 (f) The eligible voter shall cast his ballot by checking a square opposite the name



25 of the candidate of his choice. He shall sign and mail the ballot at least thirty

26 (30) days prior to the date the term to be filled is due to expire. The latest



27 mailing date shall be printed on the ballot;



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1 (g) The board's contracted auditing firm shall report in writing the outcome to the



2 chair of the board of trustees. Cost of an election shall be payable from the



3 funds of the system for which the trustee is elected.



4 (5) Any vacancy which may occur in an appointed position shall be filled in the same



5 manner which provides for the selection of the particular trustee, and any vacancy



6 which may occur in an elected position shall be filled by appointment by a majority



7 vote of the remaining trustees, and if the secretary of the Personnel Cabinet resigns



8 his position as trustee, it shall be filled by appointment made by the Governor;

9 however, any vacancy shall be filled only for the duration of the unexpired term.



10 (6) (a) Membership on the board of trustees shall not be incompatible with any other



11 office unless a constitutional incompatibility exists. No trustee shall serve in



12 more than one (1) position as trustee on the board; and if a trustee holds more



13 than one (1) position as trustee on the board, he shall resign a position.



14 (b) A trustee shall be removed from office upon conviction of a felony or for a



15 finding of a violation of any provision of KRS 11A.020 or 11A.040 by a court



16 of competent jurisdiction.



17 (7) Trustees who do not otherwise receive a salary from the State Treasury shall receive



18 a per diem of eighty dollars ($80) for each day they are in session or on official



19 duty, and they shall be reimbursed for their actual and necessary expenses in



20 accordance with state administrative regulations and standards.



21 (8) The board shall meet at least once in each quarter of the year and may meet in



22 special session upon the call of the chair or the executive director. It shall elect a



23 chair and a vice chair. A majority of the trustees shall constitute a quorum and all



24 actions taken by the board shall be by affirmative vote of a majority of the trustees



25 present.

26 (9) (a) The board of trustees shall appoint or contract for the services of an executive



27 director and fix the compensation and other terms of employment for this



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1 position without limitation of the provisions of KRS Chapters 18A and 45A



2 and KRS 64.640. The executive director shall be the chief administrative



3 officer of the board.



4 (b) The board of trustees shall authorize the executive director to appoint the



5 employees deemed necessary to transact the business of the system. For an



6 appointee deemed to be in a policy-making position, the board shall determine



7 the compensation and other terms of employment for the policy-making



8 position without limitation of the provisions of KRS Chapter 18A. Anything

9 in the Kentucky Revised Statutes to the contrary notwithstanding, the power



10 over and control of determining and maintaining an adequate complement of



11 employees shall be under the exclusive jurisdiction of the board of trustees.



12 (c) Effective December 1, 2002, all employees of the Kentucky Retirement



13 Systems shall be transferred to a personnel system adopted by the board.



14 Employees of Kentucky Retirement Systems covered by the personnel system



15 adopted by the board shall be:



16 1. Provided the same health insurance coverage as all other state



17 government employees as provided in KRS 18A.225;



18 2. Eligible to participate in the deferred compensation system provided for



19 all state government employees as provided in KRS 18A.250 to



20 18A.265;



21 3. Provided the same life insurance coverage provided all state employees



22 as provided in KRS 18A.205 to 18A.215;



23 4. Reimbursed for all reasonable and necessary travel expenses and



24 disbursements incurred or made in the performance of official duties in



25 accordance with KRS Chapter 45;

26 5. Ensured equal employment opportunity regardless of race, color, gender,



27 religion, national origin, disability, sexual orientation, or age;



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1 6. Given those holidays and rights granted to state employees as provided



2 in KRS 18A.190;



3 7. Paid a salary not less than the salary paid as of the date of transfer to the



4 personnel system, unless voluntarily demoted or involuntarily demoted



5 for cause;



6 8. Credited with all accumulated sick leave, compensatory time, and



7 annual leave accumulated in accordance with KRS Chapter 18A, and for



8 an employee leaving service, the system shall attest to the employee's

9 accumulated sick leave, compensatory time, and annual leave which



10 shall be credited with other state and county employers to the extent



11 provided for by statute or policy. The Kentucky Retirement Systems



12 may, at the discretion of the board, accept from other state and county



13 employers all accumulated sick leave, compensatory time, and annual



14 leave for an employee leaving a state or county employer and accepting



15 employment with the Kentucky Retirement Systems. The executive



16 branch shall accept from the Kentucky Retirement Systems all



17 accumulated sick leave, compensatory time, and annual leave for an



18 employee leaving the Kentucky Retirement Systems and accepting



19 employment with the executive branch. The Kentucky Retirement



20 Systems shall accept from the executive branch all accumulated sick



21 leave, compensatory time, and annual leave for an employee leaving the



22 executive branch and accepting employment with the Kentucky



23 Retirement Systems;



24 9. Classified with status upon transfer to the personnel system on



25 December 1, 2002, if the employee was classified with status as a merit

26 employee under KRS Chapter 18A. Any employee of the Kentucky



27 Retirement Systems transferred on December 1, 2002, during the



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1 probationary period before earning classified status as a merit system



2 employee under KRS Chapter 18A shall transfer all accrued



3 probationary time and the time shall be credited to the probationary time



4 required to attain classified status in the personnel system;



5 10. Ensured a grievance appeal procedure and the employee's right to have a



6 representative present at each step of the grievance procedure; and



7 11. Ensured of the right of appeal in a manner consistent with the provisions



8 of KRS 18A.095 to the Kentucky Personnel Board and employees

9 classified with status in the personnel system shall not be dismissed,



10 demoted, suspended, or otherwise penalized except for cause.



11 (d) The board shall adopt by administrative regulation a fair, equitable, and



12 comprehensive personnel policy with a minimum of the following provisions



13 for the personnel system:



14 1. A code of conduct including provisions describing performance of



15 duties, abuse of position, conflicts of interest, and outside employment;



16 2. An appointments plan including provisions describing the appointing



17 authority, appointments, equal employment policy, sexual harassment



18 policy, and drug-free workplace policy;



19 3. A classification plan including provisions describing class



20 specifications, position actions, and employee actions;



21 4. A compensation plan based on qualifications, experience, and



22 responsibilities and including provisions which describe a salary



23 schedule, salary adjustments, salary advancements, and an employee



24 suggestion program;



25 5. Separations, disciplinary actions, and appeal policies including

26 provisions describing classified with status, exemptions from classified



27 with status, layoffs, abolishment of position, dismissals and notification



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1 of dismissal, dismissals during probationary period, disciplinary actions,



2 right of appeal, grievance and appeal procedures, and an employee



3 grievance and appeal committee;



4 6. Service and benefits regulations including provisions describing hours of



5 work, fringe benefits, workers' compensation, payroll deductions,



6 holidays, inclement weather days, compensatory time, retirement,



7 resignations, employee evaluations, and political activities; and



8 7. Leave policies including provisions describing special leave, annual

9 leave, court leave and jury duty, military leave, voting leave, educational



10 leave, sick leave, family medical leave, leave without pay, absence



11 without leave, and blood donation leave.



12 (e) The board shall require the executive director and the employees as it thinks



13 proper to execute bonds for the faithful performance of their duties



14 notwithstanding the limitations of KRS Chapter 62.



15 (f) The board shall establish a system of accounting.



16 (g) The board shall do all things, take all actions, and promulgate all



17 administrative regulations, not inconsistent with the provisions of KRS 61.515



18 to 61.705, 16.510 to 16.652, and 78.520 to 78.852, necessary or proper in



19 order to carry out the provisions of KRS 61.515 to 61.705, 16.510 to 16.652,



20 and 78.520 to 78.852. Notwithstanding any other evidence of legislative



21 intent, it is hereby declared to be the controlling legislative intent that the



22 provisions of KRS 61.515 to 61.705, 16.510 to 16.652, and 78.520 to 78.852



23 conform with federal statute or regulation and meet the qualification



24 requirements under 26 U.S.C. sec. 401(a), applicable federal regulations, and



25 other published guidance. Provisions of KRS 61.515 to 61.705, 16.510 to

26 16.652, and 78.520 to 78.852 which conflict with federal statute or regulation



27 or qualification under 26 U.S.C. sec. 401(a), applicable federal regulations,



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1 and other published guidance shall not be available. The board shall have the



2 authority to promulgate administrative regulations to conform with federal



3 statute and regulation and to meet the qualification requirements under 26



4 U.S.C. sec. 401(a), including an administrative regulation to comply with 26



5 U.S.C. sec. 401(a)(9). The board shall have the authority to promulgate an



6 administrative regulation to comply with any consent decrees entered into by



7 the board in Civil Action No. 3:99CV500(C) in order to bring the systems into



8 compliance with the Age Discrimination in Employment Act, 29 U.S.C.

9 Section 621, et seq., as amended.



10 (10) All employees of the board shall serve during its will and pleasure. Notwithstanding



11 any statute to the contrary, employees shall not be considered legislative agents



12 under KRS 6.611.



13 (11) The Attorney General, or an assistant designated by him, may attend each meeting



14 of the board and may receive the agenda, board minutes, and other information



15 distributed to trustees of the board upon request. The Attorney General may act as



16 legal adviser and attorney for the board, and the board may contract for legal



17 services, notwithstanding the limitations of KRS Chapter 12 or 13B.



18 (12) The system shall publish an annual financial report showing all receipts,



19 disbursements, assets, and liabilities. The annual report shall include a copy of an



20 audit conducted in accordance with generally accepted auditing standards. The



21 board may select an independent certified public accountant or the Auditor of



22 Public Accounts to perform the audit. If the audit is performed by an independent



23 certified public accountant, the Auditor of Public Accounts shall not be required to



24 perform an audit pursuant to KRS 43.050(2)(a), but may perform an audit at his



25 discretion. All proceedings and records of the board shall be open for inspection by

26 the public. The system shall make copies of the audit required by this subsection



27 available for examination by any member, retiree, or beneficiary in the office of the



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1 executive director of the Kentucky Retirement Systems and in other places as



2 necessary to make the audit available to all members, retirees, and beneficiaries. A



3 copy of the annual audit shall be sent to the Legislative Research Commission no



4 later than ten (10) days after receipt by the board.



5 (13) All expenses incurred by or on behalf of the system and the board in the



6 administration of the system during a fiscal year shall be paid from the retirement



7 allowance account. Any other statute to the contrary notwithstanding, authorization



8 for all expenditures relating to the administrative operations of the system shall be

9 contained in the biennial budget unit request, branch budget recommendation, and



10 the financial plan adopted by the General Assembly pursuant to KRS Chapter 48.



11 (14) Any person adversely affected by a decision of the board, except as provided under



12 subsection (16) of this section or KRS 61.665, involving KRS 16.510 to 16.652,



13 61.515 to 61.705, and 78.520 to 78.852, may appeal the decision of the board to the



14 Franklin Circuit Court within sixty (60) days of the board action.



15 (15) (a) A trustee shall discharge his duties as a trustee, including his duties as a



16 member of a committee:



17 1. In good faith;



18 2. On an informed basis; and



19 3. In a manner he honestly believes to be in the best interest of the



20 Kentucky Retirement Systems.



21 (b) A trustee discharges his duties on an informed basis if, when he makes an



22 inquiry into the business and affairs of the Kentucky Retirement Systems or



23 into a particular action to be taken or decision to be made, he exercises the



24 care an ordinary prudent person in a like position would exercise under similar



25 circumstances.

26 (c) In discharging his duties, a trustee may rely on information, opinions, reports,



27 or statements, including financial statements and other financial data, if



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1 prepared or presented by:



2 1. One (1) or more officers or employees of the Kentucky Retirement



3 Systems whom the trustee honestly believes to be reliable and competent



4 in the matters presented;



5 2. Legal counsel, public accountants, actuaries, or other persons as to



6 matters the trustee honestly believes are within the person's professional



7 or expert competence; or



8 3. A committee of the board of trustees of which he is not a member if the

9 trustee honestly believes the committee merits confidence.



10 (d) A trustee shall not be considered as acting in good faith if he has knowledge



11 concerning the matter in question that makes reliance otherwise permitted by



12 paragraph (c) of this subsection unwarranted.



13 (e) Any action taken as a trustee, or any failure to take any action as a trustee,



14 shall not be the basis for monetary damages or injunctive relief unless:



15 1. The trustee has breached or failed to perform the duties of the trustee's



16 office in compliance with this section; and



17 2. In the case of an action for monetary damages, the breach or failure to



18 perform constitutes willful misconduct or wanton or reckless disregard



19 for human rights, safety, or property.



20 (f) A person bringing an action for monetary damages under this section shall



21 have the burden of proving by clear and convincing evidence the provisions of



22 paragraphs (e)1. and (e)2. of this subsection, and the burden of proving that



23 the breach or failure to perform was the legal cause of damages suffered by



24 the Kentucky Retirement Systems.



25 (g) Nothing in this section shall eliminate or limit the liability of any trustee for

26 any act or omission occurring prior to July 15, 1988.



27 (16) When an order by the system substantially impairs the benefits or rights of a



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1 member, retired member, or recipient, except action which relates to entitlement to



2 disability benefits, the affected member, retired member, or recipient may request a



3 hearing to be held in accordance with KRS Chapter 13B. The board may establish



4 an appeals committee whose members shall be appointed by the chair and who shall



5 have authority to act upon the recommendations and reports of the administrative



6 law judge[hearing officer] on behalf of the board. The member, retired member, or



7 recipient aggrieved by a final order of the board following the hearing may appeal



8 the decision to the Franklin Circuit Court, in accordance with KRS Chapter 13B.

9 (17) The board shall give the Kentucky Education Support Personnel Association



10 twenty-four (24) hours notice of the board meetings, to the extent possible.



11 Section 25. KRS 61.665 is amended to read as follows:



12 (1) The board shall employ at least three (3) physicians, licensed in the state and not



13 members of the system, upon terms and conditions it prescribes to serve as medical



14 examiners, whose duty it shall be to pass upon all medical examinations required



15 under KRS 61.510 to 61.705, 16.505 to 16.652, and 78.510 to 78.852, to investigate



16 all health or medical statements and certificates made by or in behalf of any person



17 in connection with the payment of money to the person under KRS 61.510 to



18 61.705, 16.505 to 16.652, and 78.510 to 78.852, and who shall report in writing to



19 the system the conclusions and recommendations upon all matters referred to them.



20 The board may employ one (1) or more licensed mental health professionals in



21 making recommendations regarding mental impairments.



22 (2) (a) Each person requesting disability retirement shall file at the retirement office



23 an application for disability retirement and supporting medical information to



24 report the person's physical and mental condition. The person shall also file at



25 the retirement office a complete description of the job and duties from which

26 he received his last pay as well as evidence that the person has made a request



27 for reasonable accommodation as provided for in 42 U.S.C. sec. 12111(9) and



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1 29 C.F.R. Part 1630. The person shall certify to the retirement office that the



2 application for disability retirement and supporting medical information are



3 ready to be evaluated by the medical examiners in accordance with paragraph



4 (d) of this subsection. If, after good faith efforts, the person informs the



5 system that he has been unable to obtain the employment or medical



6 information, the system shall assist the person in obtaining the records and



7 may use the authority granted pursuant to KRS 61.685(1) to obtain the



8 records. If the person fails to file, at the retirement office within one hundred

9 eighty (180) days of the date the person filed his notification of retirement,



10 any of the forms, certifications, or information required by this subsection, the



11 person's application for disability retirement shall be void. Any subsequent



12 filing of an application for disability retirement or supporting medical



13 information shall not be evaluated, except as provided in paragraph (f) of this



14 subsection or KRS 61.600(2).



15 (b) The employer shall file at the retirement office a complete description of the



16 job and duties for which the person was last paid and shall submit a detailed



17 description of reasonable accommodations attempted.



18 (c) The cost of medical examinations and the filing of the medical information,



19 reports, or data with the retirement office shall be paid by the person applying



20 for disability retirement.



21 (d) The system shall select three (3) medical examiners to evaluate the medical



22 evidence submitted by the person. The medical examiners shall recommend



23 that disability retirement be approved, or that disability retirement be denied.



24 If there is evidence of a mental impairment, the medical examiners may



25 request the board's licensed mental health professional to assist in determining

26 the level of the mental impairment.



27 (e) If two (2) or more of the three (3) medical examiners recommend that the



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1 person be approved for disability retirement, the system shall make retirement



2 payments in accordance with the retirement plan selected by the person.



3 (f) If two (2) or more of the three (3) medical examiners recommend that the



4 person be denied disability retirement, the system shall send notice of this



5 recommendation by United States first-class mail to the person's last address



6 on file in the retirement office. The person shall have one hundred eighty



7 (180) days from the day that the system mailed the notice to file at the



8 retirement office additional supporting medical information and certify to the

9 retirement office that the application for disability retirement and supporting



10 medical information are ready to be evaluated by the medical examiners or to



11 appeal his denial of disability retirement by filing at the retirement office a



12 request for a formal hearing. Any subsequent filing of an application for



13 disability retirement or supporting medical information shall not be evaluated,



14 except as provided in KRS 61.600(2).



15 (g) If two (2) or more of the three (3) medical examiners recommend that the



16 person be approved for disability retirement based upon the evaluation of



17 additional supporting medical information in accordance with paragraph (f) of



18 this subsection, the system shall make retirement payments in accordance with



19 the retirement plan selected by the person.



20 (h) If two (2) or more of the three (3) medical examiners recommend that the



21 person be denied disability retirement based upon the evaluation of additional



22 supporting medical information in accordance with paragraph (f) of this



23 subsection, the system shall send notice of this recommendation by United



24 States first-class mail to the person's last address on file in the retirement



25 office. The person shall have one hundred eighty (180) days from the day that

26 the system mailed the notice to appeal his denial of disability retirement by



27 filing at the retirement office a request for a formal hearing.



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1 (i) The medical examiners shall be paid a reasonable amount by the retirement



2 system for each case evaluated.



3 (j) Notwithstanding the foregoing provisions of this section, the system may pay



4 for one (1) or more medical examinations of the person requested by the



5 medical examiners for the purpose of providing medical information deemed



6 necessary by the medical examiners. The system may require the person to



7 submit to one (1) or more medical examinations.



8 (3) (a) Any person whose disability benefits have been reduced, discontinued,

9 or denied pursuant to subsection (2)(f) or (2)(h) of this section may file at the



10 retirement office a request for a formal hearing to be conducted in accordance



11 with KRS Chapter 13B. The right to demand a formal hearing shall be limited



12 to a period of one hundred eighty (180) days after the person had notice of the



13 system's determination, as described in subsection (2)(f) or (2)(h) of this



14 section. The request for a formal hearing shall be filed with the executive



15 director, at the retirement office in Frankfort. The request for a formal hearing



16 shall include a short and plain statement of the reasons the denial of disability



17 retirement is being contested.



18 (b) Failure of the person to request a formal hearing within the period of time



19 specified shall preclude the person from proceeding any further with the



20 application for disability retirement, except as provided in KRS 61.600(2).



21 This paragraph shall not limit the person's right to appeal to a court.



22 (c) The system may require the person requesting the formal hearing to submit to



23 one (1) or more medical or psychological examinations. Notice of the time



24 and place of the examination shall be mailed to the person or his legal



25 representative. The system shall be responsible for the cost of the

26 examination.



27 (d) A final order of the board shall be based on substantial evidence appearing in



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1 the record as a whole and shall set forth the decision of the board and the facts



2 and law upon which the decision is based.



3 (e) All requests for a hearing pursuant to this section shall be made in writing.



4 (4) The board may establish an appeals committee whose members shall be appointed



5 by the chair and who shall have the authority to act upon the recommendations and



6 reports of the administrative law judge[hearing officer] pursuant to this section on



7 behalf of the board.



8 (5) Any person aggrieved by a final order of the board may seek judicial review after all

9 administrative appeals have been exhausted by filing a petition for judicial review



10 in the Franklin Circuit Court in accordance with KRS Chapter 13B.



11 (6) The system, pursuant to regulations, may refer an employee determined by it to be



12 disabled to the Kentucky Office of Vocational Rehabilitation for evaluation and, if



13 appropriate, retraining.



14 (a) The cost of the evaluation and retraining shall be paid by the system in



15 accordance with the regulations established by the board.



16 (b) The member shall perform all acts that are necessary to enroll in and satisfy



17 the requirements of Vocational Rehabilitation as prescribed by the board. This



18 shall include the exchange of confidential information between Kentucky



19 Retirement Systems and the Kentucky Office of Vocational Rehabilitation as



20 necessary to conduct the rehabilitation process. Failure of the member to



21 cooperate with the system or Vocational Rehabilitation may result in his



22 disability allowance being discontinued, reduced, or denied until the member



23 complies with the agency requests. If the refusal continues for one (1) year, all



24 his rights to any further disability allowance shall cease.



25 Section 26. KRS 66.310 is amended to read as follows:

26 (1) No county may issue bonds which, together with all other net indebtedness of the



27 county plus the principal amount of any outstanding self-supporting obligations, is



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1 in excess of one-half of one percent (0.5%) of the value of the taxable property



2 therein, as determined by the next preceding certified assessment, without having



3 first secured the written approval of the state local debt officer. Any other bonds to



4 be issued by any county may be submitted for approval as hereinafter provided.



5 When the fiscal court of any county has petitioned the state local debt officer under



6 KRS 66.320 for assistance in formulating a plan for reorganizing its debt structure,



7 or has received the approval of any issue of county bonds voluntarily as provided in



8 this section, all bonds thereafter issued by the county must be approved as provided

9 in this section.



10 (2) Without the approval of the state local debt officer a county may not lease, as



11 lessee, a building or public facility that has been or is to be financed at the county's



12 request or on its behalf through the issuance of bonds by another public body or by



13 a nonprofit corporation serving as an agency and instrumentality of the county for



14 that purpose, unless the bonds, if issued by the county itself as its own general



15 obligations, would be exempt under the provisions of subsection (1). If his or her



16 approval is required, the state local debt officer shall hold a hearing for the purpose



17 of considering the terms of the lease upon the same basis as is provided under



18 subsections (3) and (4) of this section, and interested parties shall have the same



19 right of appeal as is therein provided. This subsection does not apply to leases



20 entered into before July 1, 1964, nor to renewals thereafter of leases entered into



21 before that date, nor to bonds referred to in this subsection if those bonds have been



22 sold prior to that date, whether or not actually delivered to the purchaser or



23 purchasers thereof before that date.



24 (3) The state local debt officer shall hold a hearing in accordance with KRS Chapter



25 13B for the purpose of determining whether any issue of bonds submitted to him or

26 her for approval should be approved or disapproved. The state local debt officer



27 shall provide notice of the hearing to the county judge/executive of the county



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1 proposing to issue bonds, and the county judge/executive shall cause a copy of that



2 notice to be published not less than twenty (20) days in advance of the date set for



3 the hearing. Any person having a material interest in the issuance of the bonds shall



4 have an opportunity to be heard and to present evidence at the hearing held by an



5 administrative law judge[a hearing officer] appointed by the state local debt officer.



6 A record of the proceedings of the hearing shall be made, and the state local debt



7 officer shall review the record and prepare a written decision approving or



8 disapproving the issuance of the proposed bonds. The decision shall set forth the

9 findings of fact upon which the state local debt officer bases his or her decision. On



10 the day that the state local debt officer issues a decision, he or she shall mail a copy



11 to the county judge/executive of the county proposing to issue the bonds and to any



12 person who attended the hearing and requested to receive a copy of the decision.



13 (4) The state local debt officer shall disapprove the issuance of the proposed bonds if he



14 or she finds that one (1) or more of the following conditions exist:



15 (a) The financial condition and prospects of the county do not warrant a



16 reasonable expectation that interest and principal maturities can be met when



17 due without seriously restricting other expenditures of the county, including



18 the debt service on the other outstanding obligations of the county;



19 (b) The issue of bonds will not serve the best interests of both the county issuing



20 the bonds and a majority of its creditors; or



21 (c) The bonds or the issuance thereof will be invalid.



22 (5) If the state local debt officer is petitioned by any county to approve the issuance of



23 bonds to refund outstanding county bonds, and if the state local debt officer is



24 unable to find that the bonds sought to be refunded were in their entirety validly



25 issued, he or she shall nevertheless find that bonds may be issued validly for the

26 purpose of refunding the bonds, in equivalent or lesser par principal amount,



27 provided that the interest rate to be borne by the refunding bonds shall be sufficient



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1 to make possible their liquidation within their life at no greater average annual cost



2 to the county than would be required to liquidate, within the same number of years,



3 the portion of the outstanding indebtedness found to be valid at the interest rate



4 borne by it before refunding.



5 (6) Within thirty (30) days after the date of a decision by the state local debt officer



6 approving a county's proposal to issue bonds, any interested party or taxpayer of the



7 county may appeal to the Circuit Court of the county proposing to issue the bonds.



8 Appeal shall be taken by filing a complaint with the clerk of the court and serving a

9 copy of the complaint upon the state local debt officer by certified mail, return



10 receipt requested. The fiscal court and, in the case of funding or refunding bonds,



11 the creditors whose claims or bonds are proposed to be funded or refunded, shall be



12 made parties to the appeal. The state local debt officer shall not be named as a party



13 to an appeal under this subsection, but shall be allowed to intervene in the appeal



14 upon his or her motion. Summons shall be served and class representatives



15 designated as provided in the Rules of Civil Procedure. Within thirty (30) days of



16 receipt of the complaint, the state local debt officer shall certify and file a copy of



17 the record of the proceedings and his or her decision with the Circuit Court.



18 (7) A county proposing to issue bonds may appeal a decision of the state local debt



19 officer disapproving the issuance of the bonds by filing a complaint with the



20 Franklin Circuit Court within thirty (30) days after the date of the decision. The



21 state local debt officer shall be named as a defendant in an appeal under this



22 subsection. Summons shall be issued and served as provided in the Rules of Civil



23 Procedure. With his or her answer, the state local debt officer shall certify and file a



24 copy of the record of the proceedings and his or her decision.



25 (8) Appeals to the Circuit Court shall be advanced on the docket and shall be heard and

26 decided upon the record certified by the state local debt officer. The findings of fact



27 of the state local debt officer shall be final if supported by any substantial evidence;



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1 however, if only the question of the validity of the bonds proposed to be funded or



2 refunded is in issue, additional evidence relating to the validity of the bonds may be



3 presented.



4 (9) An appeal may be taken from the Circuit Court to the Court of Appeals in the



5 manner provided in the Rules of Civil Procedure.



6 (10) If no appeal is taken from the approval of a bond issue by the state local debt officer



7 as provided in this section, the decision as to the legality of the bonds shall be res



8 judicata in any subsequent case or cases raising the question of their legality.

9 (11) Record of the approval of bonds as provided in this section shall be made in the



10 minutes of the next meeting of the fiscal court of the county issuing the bonds so



11 approved, and copies of all decisions of the state local debt officer shall be filed



12 with the Secretary of State.



13 (12) As used in this section, bonds means bonds and obligations.



14 Section 27. KRS 67A.6906 is amended to read as follows:



15 Violations of the provisions of KRS 67A.6904 shall be deemed to be unfair labor



16 practices remedial by the department in the following manner.



17 (1) Whenever it is charged by an urban-county government or a labor organization that



18 any person has engaged in or is engaging in any unfair labor practices, the



19 department or any administrative law judge[hearing officer] designated by the



20 department shall conduct an administrative hearing in accordance with KRS



21 Chapter 13B.



22 (2) If, upon the preponderance of the evidence presented, the department is of the



23 opinion that any person named in the charge has engaged in or is engaging in an



24 unfair labor practice, then it shall issue a final order requiring the person to cease



25 and desist from the unfair labor practice, and to take any affirmative action

26 including reinstatement of police officers, firefighter personnel, firefighters, or



27 corrections personnel with or without back pay, as will effectuate the policies of this



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1 section. The final order may further require the person to make reports from time to



2 time showing the extent to which he or she has complied with the order. If, upon the



3 preponderance of the evidence presented, the department is not of the opinion that



4 the person named in the charge has engaged in or is engaging in the unfair labor



5 practice, then the department shall issue a final order dismissing the complaint. No



6 final order shall issue based upon any unfair labor practice occurring more than six



7 (6) months prior to the filing of the charge with the department, unless the person



8 aggrieved thereby was prevented from filing the charge by reason of service in the

9 Armed Forces, in which event, the six (6) month period shall be computed from the



10 day of his or her discharge. No final order of the department shall require the



11 reinstatement of any individual as a police officer, firefighter personnel, firefighter,



12 or corrections personnel who has been suspended or discharged, or the payment to



13 the individual of any back pay, if the individual was suspended or discharged for



14 cause.



15 (3) Until a final order has been appealed, the department at any time, upon reasonable



16 notice and in the manner that it deems proper, may modify or set aside, in whole or



17 in part, any final order made or issued by it.



18 (4) The department or the charging party may petition for the enforcement of the final



19 order and for appropriate temporary relief or restraining order in the Circuit Court



20 for the county in which the violation occurred.



21 (5) Any person aggrieved by a final order of the department may obtain a review of the



22 final order by filing a petition in the Circuit Court assigned jurisdiction under



23 subsection (4) of this section in accordance with KRS Chapter 13B.



24 Section 28. KRS 67C.410 is amended to read as follows:



25 Violations of the provisions of KRS 67C.406 shall be deemed to be unfair labor practices

26 remedial by the department in the following manner.



27 (1) Whenever it is charged by a consolidated local government or a labor organization



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1 that any person has engaged in or is engaging in any unfair labor practices, the



2 department or any administrative law judge[hearing officer] designated by the



3 department shall conduct an administrative hearing in accordance with KRS



4 Chapter 13B.



5 (2) If, upon the preponderance of the evidence presented, the department is of the



6 opinion that any person named in the charge has engaged in or is engaging in an



7 unfair labor practice, then it shall issue a final order requiring the person to cease



8 and desist from the unfair labor practice, and to take any affirmative action

9 including reinstatement of police officers with or without back pay, as will



10 effectuate the policies of this section. The final order may further require the person



11 to make reports from time to time showing the extent to which he or she has



12 complied with the order. If, upon the preponderance of the evidence presented, the



13 department is not of the opinion that the person named in the charge has engaged in



14 or is engaging in the unfair labor practice, then the department shall issue a final



15 order dismissing the complaint. No final order shall issue based upon any unfair



16 labor practice occurring more than six (6) months prior to the filing of the charge



17 with the department, unless the person aggrieved thereby was prevented from filing



18 the charge by reason of service in the Armed Forces, in which event the six (6)



19 month period shall be computed from the day of his or her discharge. No final order



20 of the department shall require the reinstatement of any individual as a police



21 officer who has been suspended or discharged, or the payment to the individual of



22 any back pay, if the individual was suspended or discharged for cause.



23 (3) Until a final order has been appealed, the department at any time, upon reasonable



24 notice and in the manner that it deems proper, may modify or set aside, in whole or



25 in part, any final order made or issued by it.

26 (4) The department or the charging party may petition for the enforcement of the final



27 order and for appropriate temporary relief or restraining order in the Circuit Court



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1 for the county in which the violation occurred.



2 (5) Any person aggrieved by a final order of the department may obtain a review of the



3 final order by filing a petition in the Circuit Court assigned jurisdiction under



4 subsection (4) of this section in accordance with KRS Chapter 13B.



5 Section 29. KRS 103.2101 is amended to read as follows:



6 (1) It shall be the duty of the state local debt officer to review only those projects



7 authorized by KRS 103.200(1) (k), (l), (m), and (n), and only off-street parking



8 facilities, cable television, and mass communication facilities as authorized by KRS

9 103.200(1)(b), whether by cities, counties, urban-county governments, air boards, or



10 riverport authorities. The Kentucky Private Activity Bond Allocation Committee



11 shall review only those projects to be issued by the Kentucky Economic



12 Development Finance Authority and authorized by KRS 103.200(1) (k), (l), (m),



13 and (n). Such review shall include but need not be limited to, the following:



14 (a) Whether the project creates long-term economic growth, creates or retains



15 jobs in a previously designated empowerment or enterprise zone, or aids in the



16 prevention or elimination of slums or blight;



17 (b) Whether there is substantiating documentation to demonstrate that the project



18 places an unjustified competitive disadvantage on existing business in the



19 area;



20 (c) Whether there is substantiating documentation to demonstrate that normal



21 commercial financing is unavailable for this project or, if available, at what



22 rates it must be secured and under what terms and conditions;



23 (d) If the project is in accord with the intent of KRS 103.200 to 103.285, this



24 section, and KRS 103.2451; and



25 (e) The project's economic soundness.

26 (2) If the committee or the state local debt officer finds that the project does not meet



27 all of the above listed criteria, it shall deny approval of the project until the



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1 objections thereto have been met.



2 (3) The committee and the state local debt officer may require the submission of



3 testimony, project data, or any other information deemed appropriate with regard to



4 any project submitted to it for approval.



5 (4) The committee and the state local debt officer, within fourteen (14) days of



6 receiving application, shall notify in writing the agency or unit of government



7 proposing the issuance of bonds, the appropriate county judge/executive, mayor,



8 and school superintendent, and the developers of the project of the date on which

9 the project will be considered by the committee at a public hearing. Any person may



10 attend the hearing and may personally, or through counsel, address the committee



11 with regard to the project and make recommendations to the committee thereon.



12 Notice shall be given to the agency or unit of government proposing to issue the



13 bonds and the developers of the project not less than forty-five (45) days before the



14 date the committee has set for the hearing on the project. The agency or unit of



15 government proposing the issuance of the bonds shall, not less than thirty (30) days



16 before the date of the hearing, publish notice of the hearing in the manner required



17 by KRS Chapter 424. The agency or unit of government proposing the issuance of



18 the bonds shall require the developer of the project (if it is other than the agency or



19 unit of government) to reimburse the agency or unit of government for the cost of



20 the advertising required herein. An administrative law judge[A hearing officer]



21 may conduct the hearing with a proposed order to the committee or the state local



22 debt officer.



23 (5) The committee and the state local debt officer shall have the right to approve or



24 disapprove any project submitted to it, and over which it has jurisdiction as



25 described in subsection (1) of this section, and no bonds or other evidence of

26 indebtedness for any such project shall be issued until the project has been approved



27 by the committee.



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1 (6) When the revenues of the respective local government or school district are



2 negatively impacted by the project, the committee and the state local debt officer



3 shall require submission of a written statement of assurance that the appropriate



4 county judge/executive, mayor, and school superintendent are in agreement with the



5 negotiated financial arrangement. This written statement of assurance shall be used



6 for advisory purposes.



7 (7) The maximum length of any bond authorization under this section shall not exceed



8 the anticipated useful life of the building or equipment purchased or thirty (30)

9 years, whichever is shorter.



10 Section 30. KRS 131.355 is amended to read as follows:



11 (1) All proceedings before the board shall be officially reported and all records of



12 proceedings shall be public records, except in cases of appeals of unmined mineral



13 assessments where the records before the board include information provided to the



14 Department of Revenue by the taxpayer or its lessees, and were generated at the



15 taxpayer's expense. Furthermore, no recorded or transcribed testimony concerning



16 these records shall be considered a public record. Examples of these records would



17 include, but are not limited to, mineral exploration records; photographs; core data



18 information; maps whether acquired for ownership information, for coal seam



19 thickness, for depletion by mining or otherwise; and/or records calculating



20 production or reserves, leased and/or unleased. Neither records containing



21 confidential information nor testimony concerning same shall be disclosed to parties



22 outside the appeals proceedings. A protective order shall be entered and shall



23 remain in effect during the entire appeals process, including appeals to the courts,



24 and thereafter, preventing the parties, their agents and representatives, except the



25 taxpayer, from disclosing the information.

26 (2) All appeals to the Kentucky Board of Tax Appeals shall be heard by the full board,



27 but one (1) member or an administrative law judge[a hearing officer] may be



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1 authorized to hear an individual appeal. The final order in any appeal heard by a



2 single member or an administrative law judge[a hearing officer] shall be made and



3 entered by a majority of the board.



4 Section 31. KRS 133.040 is amended to read as follows:



5 (1) The property valuation administrator shall complete the tax roll of all real property



6 in his county before the first Monday in April of each year in accordance with law,



7 and on or before that date he shall file with the department, on forms provided by



8 the department, a recapitulation of all property assessed on the tax roll with his

9 official certificate attached. The recapitulation shall show the assessment of



10 property by type of property and by taxing district. Within fifteen (15) calendar days



11 after receiving the recapitulation, the department shall direct the property valuation



12 administrator to make any changes that are necessary to correct the assessment. The



13 department shall preserve all recapitulations and schedules or a photographic



14 facsimile for a period of seven (7) years from the assessment date.



15 (2) At the time the property valuation administrator submits his property recapitulations



16 to the department, he shall submit a copy of the recapitulations to the county



17 judge/executive, the treasurer or chief officer of each special district in the county,



18 the chief administrative officer of the urban-county, and the superintendent of each



19 local school district in his county.



20 (3) Beginning with the 1995 assessment year, if the property valuation administrator



21 has not submitted an acceptable recapitulation to the department by the first



22 Monday in August, the department shall, within fifteen (15) days, conduct an



23 investigation into the reasons for the failure. The department shall notify the



24 property valuation administrator in writing of his right to appear before the



25 commissioner or his designee during the investigation to provide an explanation for

26 the failure to submit an acceptable recapitulation. At any time after the completion



27 of an investigation resulting in a finding that the failure to submit an acceptable



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1 recapitulation was not reasonably justified, the department may declare an



2 emergency assessment under the provisions of KRS 132.660.



3 (4) If the commissioner determines upon the conclusion of the investigation that the



4 failure to submit an acceptable recapitulation was not reasonably justified, the



5 commissioner shall notify the property valuation administrator in writing of the



6 department's findings, and of the department's intent to suspend the property



7 valuation administrator's compensation as of the date of the notification and until



8 the date an acceptable recapitulation is submitted. The notification shall inform the

9 property valuation administrator that the amount of compensation suspended under



10 this subsection is subject to forfeiture as provided in subsection (5) of this section.



11 (5) The property valuation administrator may, within ten (10) days of the date of notice



12 provided for in subsection (4) of this section, request in writing a formal



13 administrative hearing before a department administrative law judge



14 assigned[hearing officer appointed] by the commissioner. All hearings shall be



15 conducted in accordance with KRS Chapter 13B. If in the recommended order:



16 (a) The administrative law judge[hearing officer] determines, and the



17 commissioner agrees, that the failure to submit an acceptable recapitulation



18 was not reasonably justified, the commissioner shall reaffirm the notice of



19 forfeiture provided for in subsection (4) of this section and issue a final order



20 in writing to the property valuation administrator.



21 (b) The administrative law judge[hearing officer] determines, and the



22 commissioner agrees, that the failure to submit an acceptable recapitulation



23 was reasonably justified, the commissioner shall notify the property valuation



24 administrator in a final order, and compensation suspended under subsection



25 (4) of this section shall be paid with interest at the tax interest rate defined in

26 KRS 131.010(6).



27 (6) If the property valuation administrator does not request in writing a formal



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1 administrative hearing within the time prescribed in subsection (5) of this section,



2 the commissioner shall reaffirm the notice of forfeiture provided for in subsection



3 (4) of this section and issue a final order in writing to the property valuation



4 administrator.



5 (7) The property valuation administrator may appeal the commissioner's final order in



6 the same manner, and subject to the same provisions as set forth in KRS



7 132.370(7).



8 (8) A property valuation administrator who fails to submit an acceptable recapitulation,

9 within the times prescribed in subsection (3) of this section and after a previous



10 finding that a prior year's failure to submit an acceptable recapitulation was



11 determined to not be reasonably justified, shall be subject to removal from office as



12 provided by KRS 132.370(4).



13 Section 32. KRS 151.184 is amended to read as follows:



14 (1) All hearings under this chapter shall be held before a qualified administrative law



15 judge[hearing officer], who may be a full-time employee of the cabinet,[ serve by



16 contract,] or be paid on a per diem basis at the discretion of the cabinet. After the



17 conclusion of the hearing, the administrative law judge[hearing officer] shall



18 within thirty (30) days make a report to the secretary and a recommended order



19 which shall contain a finding of fact and a conclusion of law. If the secretary finds



20 upon written request of the administrative law judge[hearing officer] that additional



21 time is needed, then the secretary may grant an extension. The administrative law



22 judge[hearing officer] shall serve a copy of his report and recommended order upon



23 all parties of record to the proceeding and they shall be granted the right to file



24 within fourteen (14) days of receipt exceptions thereto. The secretary shall consider



25 the report, exceptions, and recommended order and decide the case. The decision

26 shall be served by mail upon all parties and shall be a final order of the cabinet.



27 (2) Any party to a hearing conducted pursuant to this chapter may be represented by



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1 counsel, make oral or written argument, offer testimony, cross-examine witnesses,



2 or take any combination of such actions. The record of the hearing shall be open to



3 public inspection, and copies thereof shall be made available to any person upon



4 payment of the actual cost of reproducing the original.



5 (3) In connection with a hearing the cabinet shall issue subpoenas in response to any



6 reasonable request by any party to the hearing requiring the attendance and



7 testimony of witnesses and the production of evidence relevant to any matter



8 involved in the hearing. In case of refusal to obey a subpoena issued to any person,

9 the Franklin Circuit Court, upon application by the cabinet, may issue to that person



10 an order requiring him to appear before the cabinet, there to produce documentary



11 evidence if so ordered or to give evidence touching the matter under investigation or



12 in question; and any failure to obey the order of the court may be punished by the



13 court as a contempt of court.



14 (4) All hearings conducted pursuant to this chapter shall be open to the public.



15 Section 33. KRS 151B.010 is amended to read as follows:



16 As used in this chapter, unless the context indicates otherwise:



17 (1) "Appointing authority" means the commissioner for the Department of Workforce



18 Investment or any person authorized by the commissioner to act on behalf of the



19 Office of Career and Technical Education with respect to employee appointments,



20 position establishments, payroll documents, reemployment lists, waiver requests, or



21 other position actions. The designation shall be in writing and signed by both the



22 commissioner and the designee;



23 (2) "Base salary" means the compensation to which an employee is entitled under the



24 salary schedule adopted pursuant to the provisions of KRS 151B.035(3)(h);



25 (3) "Board" means the Kentucky Technical Education Personnel Board established in

26 KRS 151B.097;



27 (4) "Certified employees" means those employees who fill school or educational



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1 assignments requiring the issuance of a certificate. These employees in the Office of



2 Career and Technical Education are subject to personnel administration under this



3 chapter;



4 (5) "Class" means a group of positions sufficiently similar as to the duties performed,



5 scope of discretion and responsibility, minimum requirements of training, and other



6 characteristics that the same title and the same schedule of compensation have been



7 or may be applied to each position in the group;



8 (6) "Classified" means status as merit system employees under the provisions of KRS

9 Chapter 18A;



10 (7) "Continuing status" means the acquisition of tenure with all rights and privileges



11 granted by the provisions of this chapter which must be preceded by four (4) years



12 of successful employment;



13 (8) "Demotion" means a change in an employee's position to another class having less



14 discretion or responsibility;



15 (9) "Emergency appointment" means employment for a maximum period of sixty (60)



16 days without regard to the certification process for any position in the Office of



17 Career and Technical Education requiring certification or its equivalent;



18 (10) "Employee" means a person regularly employed in a position in the Office of Career



19 and Technical Education for which compensation is on a full-time or part-time



20 basis;



21 (11) "Equivalent employees" means those employees with educational backgrounds



22 similar to certified personnel in the administration and conduct of educationally



23 related services. These employees in the Office of Career and Technical Education



24 shall be subject to personnel administration under this chapter;



25 (12) "Administrative law judge[Hearing officer]" means an administrative law judge[a

26 member of the board, a person] hired for this purpose[ by personal service contract,



27 or an assistant attorney general];



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1 (13) "Index" means the percentage add-on in a salary structure which compensates for



2 the scope of discretion and responsibility of the position;



3 (14) "Initial probation" means the one (1) year period following initial appointment of



4 certified and equivalent employees under KRS 151B.070 which requires special



5 observation and evaluation of a person's work and which must be passed



6 successfully before eligibility for renewal of limited status;



7 (15) "Limited status" means employment that is renewable on an annual basis;



8 (16) "Penalization" means actions including demotion, dismissal, suspension,

9 involuntary transfer, reduction in rank or pay, or the abridgement or denial of rights



10 granted to state employees or other disciplinary actions;



11 (17) "Position" means employment involving duties requiring the services of one (1)



12 person;



13 (18) "Promotion" means changing an employee from a position in one (1) class to a



14 position in another class carrying a greater scope of discretion and responsibility;



15 (19) "Promotional probation" means the twelve (12) month period of service following



16 the promotion of an employee with continuing status which must be successfully



17 completed in order for the employee to remain in the position;



18 (20) "Reemployment" means the rehiring of an employee with continuing status who has



19 been laid off;



20 (21) "Reemployment list" means the separate list of names of persons who have been



21 separated from certified or equivalent positions in the Office of Career and



22 Technical Education by reason of layoff. Reemployment lists shall be used as



23 provided by the provisions of KRS 151B.080;



24 (22) "Reinstatement" means the restoration of a certified or equivalent employee who



25 has resigned in good standing or who has been ordered reinstated by the board or a

26 court to a position in the former class or to a position of like status and pay;



27 (23) "Seasonal employees" means employees employed in a seasonal position. Seasonal



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1 position means a position that is temporary, and which coincides with a particular



2 season or seasons of the year;



3 (24) "Temporary employee" means an employee appointed to a temporary position.



4 Temporary position means a position that is created for a definite period of time;



5 (25) "Transfer" means a movement of any certified or equivalent employee from one (1)



6 position to another having the same salary range and the same level of



7 responsibility; and



8 (26) "Unclassified employee" means any temporary or seasonal employee and any

9 employee in a policymaking position who shall be exempt from the state service



10 under KRS Chapter 18A and who is employed in the Office of Career and



11 Technical Education under this chapter.



12 Section 34. KRS 151B.035 is amended to read as follows:



13 (1) The executive director of the Office of Career and Technical Education shall



14 promulgate, by administrative regulations, personnel policies and procedures for all



15 full-time and part-time unclassified employees, certified and equivalent staff,



16 including administrative, teaching, and supervisory staff in the Office of Career and



17 Technical Education central office and state-operated vocational facilities. All other



18 staff shall remain under the authority of the Kentucky Personnel Cabinet and KRS



19 Chapter 18A. Employees who transfer to or from the KRS Chapter 18A personnel



20 system shall transfer accrued annual, compensatory, and sick leave.



21 (2) As provided in this chapter, the executive director of the Office of Career and



22 Technical Education shall promulgate comprehensive administrative regulations for



23 the administration of a personnel system in the Office of Career and Technical



24 Education which are consistent with the provisions of this chapter and with federal



25 standards for state government agencies receiving federal grants.

26 (3) The executive director of the Office of Career and Technical Education shall



27 promulgate comprehensive administrative regulations for full-time and part-time



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1 certified and equivalent staff governing:



2 (a) Establishment and abolishment of positions;



3 (b) Applications;



4 (c) Classification and compensation plans;



5 (d) Incentive programs;



6 (e) Selection of employees;



7 (f) Types of appointments;



8 (g) Attendance, including hours of work, compensatory time, and annual, court,

9 military, sick, voting, and special leaves of absence;



10 (h) Preparation, maintenance, and revision of a position classification plan and an



11 equitable salary schedule for certified and equivalent staff based on



12 qualifications, experience, and responsibilities;



13 (i) Extent and duration of the state-operated area vocational education and



14 technology centers' school term, use of school days, and extended



15 employment;



16 (j) Employee evaluations;



17 (k) Programs to improve the work effectiveness of employees including staff



18 development;



19 (l) Demotion;



20 (m) Dismissal;



21 (n) Layoffs;



22 (o) Suspensions and other disciplinary measures;



23 (p) Probationary periods, limited employment status, and continuing employment



24 status;



25 (q) Promotion;

26 (r) Transfer;



27 (s) Appeals; and



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1 (t) Employee grievances and complaints.



2 (4) (a) Administrative regulations promulgated by the executive director of the Office



3 of Career and Technical Education shall comply with the provisions of this



4 chapter and KRS Chapter 13A and shall have the force and effect of law,



5 when approved by the commissioner of the Department of Workforce



6 Investment and after compliance with the provisions of KRS Chapter 13A.



7 (b) Administrative regulations promulgated by the executive director of the Office



8 of Career and Technical Education shall not expand or restrict rights granted

9 to, or duties imposed upon, employees and administrative bodies by the



10 provisions of this chapter.



11 (c) No administrative body other than the executive director of the Office of



12 Career and Technical Education shall promulgate administrative regulations



13 governing the subject matters specified in this section.



14 (d) Policies and procedures for the implementation of administrative regulations



15 shall be developed by the Office of Career and Technical Education.



16 (5) The commissioner for the Department of Workforce Investment shall be the



17 appointing authority with respect to all personnel actions for the Office of Career



18 and Technical Education. The commissioner may authorize a designee to act on



19 behalf of the agency with respect to employee appointments, position



20 establishments, payroll documents, reemployment lists, waiver requests, or other



21 position actions. Any personnel designation shall be in writing. Authority to employ



22 personnel may be delegated to the vocational school management by the



23 commissioner. Any recommendation for employment from the local level shall be



24 based on guidelines promulgated by the executive director and shall be contingent



25 upon confirmation by the executive director.

26 (6) The executive director of the Office of Career and Technical Education shall



27 promulgate other administrative regulations to govern proceedings which relate to



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1 certified and equivalent employees and which shall provide for:



2 (a) The procedures to be utilized by the Kentucky Technical Education Personnel



3 Board in the conduct of hearings, consistent with KRS Chapter 13B;



4 (b) Discharge, as provided by this section;



5 (c) Imposition, as a disciplinary measure, of a suspension from service without



6 pay for up to thirty (30) working days and, in accordance with the provisions



7 of KRS 151B.055, for the manner of notification of the employee of the



8 discipline and right of appeal;

9 (d) Promotions which shall give appropriate consideration to the applicant's



10 qualifications, record of performance, and conduct;



11 (e) Supplementary information for the salary schedule for certified and equivalent



12 staff including teachers, counselors, administrators, managers, and educational



13 consultants in state-operated vocational technical facilities, field offices, and



14 central office in the Office of Career and Technical Education that shall



15 provide uniformity, recognition of education, teaching, and supervisory



16 experience and use as a base the average salary paid to beginning classroom



17 teachers by all public schools in the state for personnel with comparable



18 qualifications and experience. Indexes may be incorporated in the



19 compensation plan for administrative responsibilities. The salary schedule



20 shall be computed annually, and shall be submitted to and approved by the



21 Governor;



22 (f) Reemployment of laid-off employees in accordance with the provisions of this



23 chapter;



24 (g) Establishment of a plan for resolving employee grievances and complaints.



25 The plan shall not restrict rights granted employees by the provisions of this

26 chapter; and



27 (h) Any other administrative regulations not inconsistent with this chapter and



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1 KRS Chapter 13A proper and necessary for its enforcement.



2 (7) The executive director of the Office of Career and Technical Education shall make



3 investigations, either on petition of a citizen, taxpayer, interested party, or as



4 deemed necessary by the executive director, concerning the enforcement and effect



5 of KRS 151B.035 to 151B.090, shall require observance of the provisions and the



6 administrative regulations promulgated pursuant to the provisions of this chapter



7 and KRS Chapter 13A, and shall make investigation as requested by the General



8 Assembly or the Governor and to report thereon.

9 (8) The executive director of the Office of Career and Technical Education shall



10 promulgate administrative regulations, pursuant to KRS Chapter 13A, for an appeal



11 system for aggrieved certified or equivalent employees.



12 (9) The Kentucky Technical Education Personnel Board shall hear appeals from



13 applicants for positions or from certified, equivalent, and unclassified employees



14 who have been dismissed, demoted, suspended, or otherwise penalized for cause.



15 Effective August 15, 2000, appeals from assistants and secretaries in the Office of



16 Career and Technical Education attached to policymaking positions shall be



17 governed by KRS 18A.095. The State Personnel Board, established in KRS



18 18A.045, shall hear appeals that are pending as of August 15, 2000, from assistants



19 and secretaries attached to policymaking positions in the Office of Career and



20 Technical Education.



21 (10) The Kentucky Technical Education Personnel Board may, any statute to the



22 contrary notwithstanding, delegate the conduct of the hearing and the rendition of a



23 recommended order to the full board, to a panel of the board, or to an



24 administrative law judge[a hearing officer], relative to any hearing appeal, or



25 decision, judicial or quasi-judicial in nature, which the board is empowered or

26 directed, by this or any other chapter, to conduct, hear, or make; provided, however,



27 that the full board as provided by statute, makes the final order, based upon the



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1 evidence submitted.



2 (11) The executive director of the Office of Career and Technical Education shall



3 promulgate administrative regulations, pursuant to KRS Chapter 13A, governing



4 the unclassified service including the preparation and maintenance of a salary



5 schedule and other administrative regulations authorized by this chapter.



6 (12) The annual percentage salary increment for all certified and equivalent employees



7 subject to the personnel system established under this chapter shall be at least equal



8 to that funded and provided for other elementary and secondary teachers.

9 (13) The positions of employees who are transferred, effective July 1, 1998, from the



10 former Cabinet for Workforce Development to the Kentucky Community and



11 Technical College System shall be abolished and the employees' names removed



12 from the roster of state employees. Employees who are transferred, effective July 1,



13 1998, to the Kentucky Community and Technical College System under KRS



14 Chapter 164 shall have the same benefits and rights as they had under KRS Chapter



15 18A and have under KRS 164.5805; however, they shall have no guaranteed



16 reemployment rights in the KRS Chapter 151B or KRS Chapter 18A personnel



17 systems. An employee who seeks reemployment in a state position under KRS



18 Chapter 151B or KRS Chapter 18A shall have years of service in the Kentucky



19 Community and Technical College System counted toward years of experience for



20 calculating benefits and compensation.



21 Section 35. KRS 156.071 is amended to read as follows:



22 The Kentucky Board of Education may, any statute to the contrary notwithstanding,



23 delegate the taking of evidence, and the rendition of a written recommendation of



24 disposition to the full board, to a panel of the board,[ to a single member of the board



25 acting as a hearing officer,] or to an administrative law judge[a hearing officer]

26 appointed by the board relative to any hearing, appeal, or decision, judicial or quasi-



27 judicial in nature, which the board is empowered or directed, by this or any other chapter,



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1 to conduct, hear, or make; provided, the full board, as provided by statute, makes the final



2 decision or determination, based upon the evidence submitted. For the purpose of serving



3 as an administrative law judge[a hearing officer] for the board, the board and the



4 Department of Education shall not[ enter into a personal service contract;] employ



5 additional staff; or provide additional compensation to existing staff, except for



6 compensatory time for staff who conduct school facility public hearings outside of their



7 regular working hours.



8 Section 36. KRS 157.224 is amended to read as follows:

9 (1) The Commonwealth of Kentucky is committed to providing a comprehensive



10 educational program for its exceptional children and youth. The Department of



11 Education coordinates, directs, and monitors that program. State direction and



12 implementation of a statewide special education program is manifested in the



13 biennial appropriation of funds to assure a quality educational opportunity for



14 exceptional children and youth in existing, locally operated, classrooms.



15 (2) All county and independent boards of education shall operate special education



16 programs pursuant to an annual application which has been approved by the



17 Kentucky Department of Education pursuant to standards set out in administrative



18 regulations promulgated by the Kentucky Board of Education. If any county or



19 independent board of education fails to operate and implement special education



20 programs in accordance with the standards, the application of the county or



21 independent board of education for funding pursuant to KRS 157.360 may be



22 considered insufficient and the add-on funds generated under that statute may be



23 withheld by the Kentucky Board of Education until the program is in compliance



24 with all substantive requirements designed to ensure that students with disabilities



25 receive an appropriate education under the Federal Individuals with Disabilities

26 Education Act, as amended. The add-on funds shall not be withheld until the district



27 has had the benefit of intense assistance from the Department of Education, a



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1 Kentucky Special Education Mentor under the provisions of KRS 157.197 or other



2 assistance approved by the department for at least two (2) years. The superintendent



3 of each local school district shall certify its enrollment of exceptional children and



4 youth to the Department of Education. The department shall audit student



5 enrollment and monitor local district compliance in accordance with Kentucky



6 Board of Education administrative regulations.



7 (3) The Kentucky Board of Education administrative regulations shall set forth the data



8 local school districts shall submit in their annual applications and reports. The data

9 shall be reported in the same format as data submitted to the Department of



10 Education for all other students and shall include, but not be limited to:



11 (a) The number of students who are suspended, expelled, and quit school



12 annually;



13 (b) The success of students placed in various classroom settings including, but not



14 limited to, regular classrooms, resource rooms, self-contained classrooms, and



15 vocational programs as measured by the state assessment program; and



16 (c) Information about students' successful transition to adult life.



17 (4) Local school districts and schools found to be noncompliant with state board



18 administrative regulations shall develop an improvement plan that shall be



19 submitted to the Department of Education for approval. Local school districts shall



20 use specialized resources in the development of the plan which may include



21 universities, regional resource centers, professional organizations, and constituent



22 advocacy groups.



23 (5) There is hereby created a special education trust fund to receive the funds withheld



24 under subsection (2) of this section and interest accrued from the funds invested.



25 The funds and interest shall not lapse, but shall be returned to the district when it is

26 in compliance with all substantive requirements designed to ensure that students



27 with disabilities receive an appropriate education under the Federal Individuals with



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1 Disabilities Education Act, as amended.



2 (6) All administrative hearings conducted under authority of this section shall be



3 conducted in accordance with KRS Chapter 13B. The provisions of KRS Chapter



4 13B notwithstanding, the decision of the administrative law judge[hearing officer]



5 in hearings under this section shall be the final order and shall be rendered pursuant



6 to 34 C.F.R. 300.511. A parent, public agency, or eligible student may only request



7 the administrative hearing within three (3) years of the date the parent, public



8 agency, or eligible student knew about the alleged action that forms the basis for the

9 complaint, unless a longer period is reasonable because the violation is continuing.



10 This three (3) year limit shall not limit the introduction of evidence older than three



11 (3) years if the evidence is relevant to the complaint and shall not apply to the



12 parent or the eligible student if the parent or eligible student was prevented from



13 requesting the hearing due to:



14 (a) Failure of the local educational agency to provide prior written or procedural



15 safeguards notices;



16 (b) False representations that the local educational agency was attempting to



17 resolve the problem forming the basis of the complaint; or



18 (c) The local educational agency's withholding of information relevant to the



19 hearing issues from the parent.



20 Section 37. KRS 161.120 is amended to read as follows:



21 (1) Except as described in KRS 161.795, the Education Professional Standards Board



22 may revoke, suspend, or refuse to issue or renew; impose probationary or



23 supervisory conditions upon; issue a written reprimand or admonishment; or any



24 combination of those actions regarding any certificate issued under KRS 161.010 to



25 161.100, or any certificate or license issued under any previous law to

26 superintendents, principals, teachers, substitute teachers, interns, supervisors,



27 directors of pupil personnel, or other administrative, supervisory, or instructional



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1 employees for the following reasons:



2 (a) Being convicted of, or entering an "Alford" plea or plea of nolo contendere to,



3 notwithstanding an order granting probation or suspending imposition of any



4 sentence imposed following the conviction or entry of the plea, one (1) of the



5 following:



6 1. A felony;



7 2. A misdemeanor under KRS Chapter 218A, 508, 509, 510, 522, 525,



8 529, 530, or 531; or

9 3. A misdemeanor involving a student or minor.



10 A certified copy of the conviction or plea shall be conclusive evidence of the



11 conviction or plea;



12 (b) Having sexual contact as defined in KRS 510.010(7) with a student or minor.



13 Conviction in a criminal proceeding shall not be a requirement for disciplinary



14 action;



15 (c) Committing any act that constitutes fraudulent, corrupt, dishonest, or immoral



16 conduct. If the act constitutes a crime, conviction in a criminal proceeding



17 shall not be a condition precedent to disciplinary action;



18 (d) Demonstrating willful or careless disregard for the health, welfare, or safety of



19 others;



20 (e) Physical or mental incapacity that prevents the certificate holder from



21 performing duties with reasonable skill, competence, or safety;



22 (f) Possessing, using, or being under the influence of alcohol, which impairs the



23 performance of duties;



24 (g) Unlawfully possessing or unlawfully using a drug during the performance of



25 duties;

26 (h) Incompetency or neglect of duty;



27 (i) Making, or causing to be made, any false or misleading statement or



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1 concealing a material fact in obtaining issuance or renewal of any certificate;



2 (j) Failing to report as required by subsection (2) of this section;



3 (k) Failing to comply with an order of the Education Professional Standards



4 Board;



5 (l) Violating any state statute relating to schools or the teaching profession;



6 (m) Violating the professional code of ethics for Kentucky school certified



7 personnel established by the Education Professional Standards Board through



8 the promulgation of administrative regulation;

9 (n) Violating any administrative regulation promulgated by the Education



10 Professional Standards Board or the Kentucky Board of Education; or



11 (o) Receiving disciplinary action or having the issuance of a certificate denied or



12 restricted by another jurisdiction on grounds that constitute a violation of this



13 subsection.



14 (2) (a) The superintendent of each local school district shall report in writing to the



15 Education Professional Standards Board the name, address, phone number,



16 Social Security number, and position name of any certified school employee



17 in the employee's district whose contract is terminated or not renewed, for



18 cause except failure to meet local standards for quality of teaching



19 performance prior to the employee gaining tenure; who resigns from, or



20 otherwise leaves, a position under threat of contract termination, or



21 nonrenewal, for cause; who is convicted in a criminal prosecution; or who



22 otherwise may have engaged in any actions or conduct while employed in the



23 school district that might reasonably be expected to warrant consideration for



24 action against the certificate under subsection (1) of this section. The duty to



25 report shall exist without regard to any disciplinary action, or lack thereof, by

26 the superintendent, and the required report shall be submitted within thirty



27 (30) days of the event giving rise to the duty to report.



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1 (b) The district superintendent shall inform the Education Professional Standards



2 Board in writing of the full facts and circumstances leading to the contract



3 termination or nonrenewal, resignation, or other absence, conviction, or



4 otherwise reported actions or conduct of the certified employee, that may



5 warrant action against the certificate under subsection (1) of this section, and



6 shall forward copies of all relevant documents and records in his possession.



7 (c) The Education Professional Standards Board may consider reports and



8 information received from other sources.

9 (d) The certified school employee shall be given a copy of any report provided to



10 the Education Professional Standards Board by the district superintendent or



11 other sources. The employee shall have the right to file a written rebuttal to



12 the report which shall be placed in the official file with the report.



13 (3) A finding or action by a school superintendent or tribunal does not create a



14 presumption of a violation or lack of a violation of subsection (1) of this section.



15 (4) The board may issue a written admonishment to the certificate holder if the board



16 determines, based on the evidence, that a violation has occurred that is not of a



17 serious nature. A copy of the written admonishment shall be placed in the official



18 file of the certificate holder. The certificate holder may respond in writing to the



19 admonishment within thirty (30) days of receipt and have that response placed in his



20 official certification file. Alternatively, the certificate holder may file a request for a



21 hearing with the board within thirty (30) days of receipt of the admonishment. Upon



22 receipt of a request for a hearing, the board shall set aside the written admonishment



23 and set the matter for hearing pursuant to the provisions of KRS Chapter 13B.



24 (5) (a) The Education Professional Standards Board shall schedule and conduct a



25 hearing in accordance with KRS Chapter 13B:

26 1. Before revoking, suspending, refusing to renew, imposing probationary



27 or supervisory conditions upon, issuing a written reprimand, or any



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1 combination of these actions regarding any certificate;



2 2. After denying an application for a certificate, upon written request filed



3 within thirty (30) days of receipt of the letter advising of the denial; or



4 3. After issuing a written admonishment, upon written request for a hearing



5 filed within thirty (30) days of receipt of the written admonishment.



6 (b) Upon request, a hearing may be public or private at the discretion of the



7 certified employee or applicant.



8 (c) The hearing shall be conducted before the full board, a panel of three (3)

9 members of the board, or a person appointed as administrative law



10 judge[hearing officer] by the board pursuant to KRS 13B.030(1).



11 (6) The Education Professional Standards Board or its chair may take emergency action



12 pursuant to KRS 13B.125. Emergency action shall not affect a certificate holder's



13 contract or tenure rights in the school district.



14 (7) If the Education Professional Standards Board substantiates that sexual contact



15 occurred between a certified employee and a student or minor, the employee's



16 certificate may be revoked or suspended with mandatory treatment of the employee



17 as prescribed by the Education Professional Standards Board. The Education



18 Professional Standards Board may require the employee to pay a specified amount



19 for mental health services for the student or minor which are needed as a result of



20 the sexual contact.



21 (8) At any time during the investigative or hearing processes, the board may enter into



22 an agreed order or accept an assurance of voluntary compliance with the certificate



23 holder.



24 (9) The board may reconsider, modify, or reverse its decision on any disciplinary



25 action.

26 (10) Suspension of a certificate shall be for a specified period of time, not to exceed two



27 (2) years.



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1 (a) At the conclusion of the specified period, upon demonstration of compliance



2 with any educational requirements and the terms set forth in the agreed order,



3 the certificate shall be reactivated.



4 (b) A suspended certificate is subject to expiration and termination.



5 (11) Revocation of a certificate is a permanent forfeiture. The board shall establish the



6 minimum period of time before an applicant can apply for a new certificate.



7 (a) At the conclusion of the specified period, and upon demonstration of



8 compliance with any educational requirements and the terms set forth in the

9 agreed order, the applicant shall bear the burden of proof to show that he or



10 she is again fit for practice.



11 (b) The board shall have discretion to impose conditions that it deems reasonably



12 appropriate to ensure the applicant's fitness and the protection of public safety.



13 Any conditions imposed by the board shall address or apply to only that time



14 period after the revocation of the certificate.



15 (12) An appeal from any final order of the Education Professional Standards Board shall



16 be filed in Franklin Circuit Court in accordance with KRS Chapter 13B.



17 Section 38. KRS 161.250 is amended to read as follows:



18 (1) The general administration and management of the retirement system, and the



19 responsibility for its proper operation and for making effective provisions of KRS



20 161.155 and 161.220 to 161.714 are vested in a board of trustees to be known as the



21 "Board of Trustees of the Teachers' Retirement System of the State of Kentucky."



22 The board of trustees shall consist of the chief state school officer, the State



23 Treasurer, and seven (7) other trustees elected as provided in KRS 161.260. Four



24 (4) of the elective trustees shall be members of the retirement system, to be known



25 as teacher trustees, two (2) shall be persons who are not members of the teaching

26 profession, to be known as the lay trustees, and one (1) shall be an annuitant of the



27 retirement system to be known as the retired teacher trustee. One (1) teacher trustee



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1 shall be elected annually for a four-year term. The retired teacher trustee shall be



2 elected every four (4) years. The chief state school officer and the State Treasurer



3 are considered ex officio members of the board of trustees and may designate in



4 writing a person to represent them at board meetings.



5 (2) A member, retired member, or designated beneficiary may appeal the retirement



6 system's decisions that materially affect the amount of service retirement allowance,



7 amount of service credit, eligibility for service retirement, or eligibility for



8 survivorship benefits to which that member, retired member, or designated

9 beneficiary claims to be entitled. All appeals must be in writing and filed with the



10 retirement system within thirty (30) days of the claimant's first notice of the



11 retirement system's decision. For purposes of this section, notice shall be complete



12 and effective upon the date of mailing of the retirement system's decision to the



13 claimant at the claimant's last known address. Failure by the claimant to file a



14 written appeal with the retirement system within the thirty (30) day period shall



15 result in the decision of the retirement system becoming permanent with the effect



16 of a final and unappealable order. Appeals may include a request for an



17 administrative hearing which shall be conducted in accordance with the provisions



18 of KRS Chapter 13B. The board of trustees may establish an appeals committee



19 whose members shall be appointed by the chairperson and who shall have the



20 authority to act upon the report and recommendation of the administrative law



21 judge[hearing officer] by issuing a final order on behalf of the full board of trustees.



22 A member, retired member, or designated beneficiary who has filed a timely,



23 written appeal of a decision of the retirement system may, following the



24 administrative hearing and issuance of the final order by the board of trustees,



25 appeal the final order of the board of trustees to the Franklin Circuit Court in

26 accordance with the provisions of KRS Chapter 13B.



27 Section 39. KRS 161.790 is amended to read as follows:



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1 (1) The contract of a teacher shall remain in force during good behavior and efficient



2 and competent service by the teacher and shall not be terminated except for any of



3 the following causes:



4 (a) Insubordination, including but not limited to violation of the school laws of



5 the state or administrative regulations adopted by the Kentucky Board of



6 Education, the Education Professional Standards Board, or lawful rules and



7 regulations established by the local board of education for the operation of



8 schools, or refusal to recognize or obey the authority of the superintendent,

9 principal, or any other supervisory personnel of the board in the performance



10 of their duties;



11 (b) Immoral character or conduct unbecoming a teacher;



12 (c) Physical or mental disability; or



13 (d) Inefficiency, incompetency, or neglect of duty, when a written statement



14 identifying the problems or difficulties has been furnished the teacher or



15 teachers involved.



16 (2) Charges under subsections (1)(a) and (1)(d) of this section shall be supported by a



17 written record of teacher performance by the superintendent, principal, or other



18 supervisory personnel of the district, except when the charges are brought as a result



19 of a recommendation made under KRS 158.6455.



20 (3) No contract shall be terminated except upon notification of the board by the



21 superintendent. Prior to notification of the board, the superintendent shall furnish



22 the teacher with a written statement specifying in detail the charge against the



23 teacher. The teacher may within ten (10) days after receiving the charge notify the



24 commissioner of education and the superintendent of his intention to answer the



25 charge, and upon failure of the teacher to give notice within ten (10) days, the

26 dismissal shall be final.



27 (4) Except as provided in KRS 163.032, upon receiving the teacher's notice of his



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1 intention to answer the charge, the commissioner of education shall appoint a three



2 (3) member tribunal, consisting of one (1) teacher, who may be retired, one (1)



3 administrator, who may be retired, and one (1) lay person, none of whom reside in



4 the district, to conduct an administrative hearing in accordance with KRS Chapter



5 13B within the district. Priority for selection as a tribunal member shall be from a



6 pool of potential tribunal members who have been designated and trained to serve



7 as tribunal members on a regular and ongoing basis, pursuant to administrative



8 regulations promulgated by the Kentucky Board of Education. Funds appropriated

9 to the Department of Education for professional development may be used to



10 provide tribunal member training. The commissioner of education shall name the



11 chairman and set the date and time for the hearing. The hearing shall begin no later



12 than forty-five (45) days after the teacher files the notice of intent to answer the



13 charge.



14 (5) An administrative law judge[A hearing officer] shall have final authority to rule on



15 dispositive prehearing motions.



16 (6) The hearing may be public or private at the discretion of the teacher. At the hearing,



17 an administrative law judge[a hearing officer] appointed by the commissioner of



18 education shall preside with authority to rule on procedural matters, but the tribunal



19 shall be the ultimate trier of fact. The local board shall pay each member of the



20 tribunal a per diem of one hundred dollars ($100) and travel expenses.



21 (7) Upon hearing both sides of the case, the tribunal may by a majority vote render its



22 decision or may defer its action for not more than five (5) days. Provisions of KRS



23 Chapter 13B notwithstanding, the tribunal decision shall be a final order and may be



24 rendered on the record.



25 (8) The superintendent may suspend the teacher pending final action to terminate the

26 contract, if, in his judgment, the character of the charge warrants the action. If after



27 the hearing the decision of the tribunal is against termination of the contract, the



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1 suspended teacher shall be paid his full salary for any period of suspension.



2 (9) The teacher shall have the right to make an appeal to the Circuit Court having



3 jurisdiction in the county where the school district is located in accordance with



4 KRS Chapter 13B. The review of the final order shall be conducted by the Circuit



5 Court as required by KRS 13B.150.



6 (10) As an alternative to termination of a teacher's contract, the superintendent upon



7 notifying the board and providing written notification to the teacher of the charge



8 may impose other sanctions, including suspension without pay, public reprimand, or

9 private reprimand. The procedures set out in subsection (3) of this section shall



10 apply if the teacher is suspended without pay or publicly reprimanded. The teacher



11 may appeal the action of the superintendent if these sanctions are imposed in the



12 same manner as established in subsections (4) to (9) of this section. Upon



13 completion of a suspension period, the teacher may be reinstated.



14 Section 40. KRS 164.748 is amended to read as follows:



15 The board shall have the following powers, functions, and duties:



16 (1) To provide loan guarantees, upon terms and conditions the board may prescribe



17 within the limitations provided by KRS 164.740 to 164.770, and the federal act in



18 respect of loans to eligible borrowers. The board may require additional security,



19 including endorsers it deems necessary and desirable and is not in contravention of



20 the federal act. The purpose of the loans shall be to assist individuals in meeting the



21 expense of their education.



22 (2) To enter into agreements and undertakings with the secretary as may be required



23 and necessary pursuant to the federal act in order to constitute the authority as a



24 state agency qualified and empowered to insure student loans within the meaning of



25 the federal act and to qualify insured student loans for interest payments,

26 reimbursement, reinsurance, and other benefits available under the federal act to the



27 authority.



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1 (3) To issue loan guarantees in respect of loans made to eligible borrowers by



2 participating lenders, including the authority. No loan guarantee shall be issued,



3 executed, and delivered by the authority unless any insured student loan resulting



4 shall be the subject of agreements pursuant to the federal act by which the insured



5 student loan is made the subject of interest payments, reimbursements, reinsurance,



6 and other benefits to the extent provided by the federal act.



7 (4) To promulgate administrative regulations pursuant to KRS Chapter 13A pertaining



8 to insured student loans, loan guarantees, loans, and work-study payments and the

9 awarding of grants, scholarships, and honorary scholarships, as provided in KRS



10 164.740 to 164.7891.



11 (5) To enter into contracts with eligible lenders, approved by the state to lend moneys,



12 upon terms and conditions agreed upon between the authority and the eligible



13 lender, to provide for the administration of student financial assistance programs,



14 including, but not by way of limitation, the authority's program of insured student



15 loans.



16 (6) To enter into contracts with eligible institutions, upon terms and conditions agreed



17 upon between the authority and the eligible institution, to provide for the



18 administration of student financial assistance programs, including, but not by way



19 of limitation, the authority's program of insured student loans.



20 (7) To receive funds from any source, public or private, by gift, grant, bequest, loan, or



21 otherwise, either absolutely or in trust, and to expend them, on behalf of the



22 authority and for any of its purposes; and to acquire from any source, public or



23 private, by purchase, lease, gift, bequest, or devise, any property, real, personal, or



24 mixed, absolutely or in trust, and to hold, administer, and dispose of it, on behalf of



25 the authority and for any of its purposes. The authority shall not make its debts

26 payable out of any funds except those of the authority.



27 (8) To administer federal funds allotted to the state in respect of insured student loans,



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1 loan guarantees, loans, work-study, grants, scholarships, administrative costs, and



2 related matters.



3 (9) To sue and be sued in the name of the authority and to plead and be impleaded, and



4 to purchase, on behalf of members of the board or officers and employees of the



5 authority, liability insurance for individual protection from liability for acts and



6 omissions committed in the course and scope of the individual's employment or



7 service.



8 (10) To collect from individual borrowers loans made by the authority and insured

9 student loans on which the authority has been compelled to meet its loan guarantee



10 obligations following the inability of the participating lender involved to collect the



11 insured student loans.



12 (11) To gather information on all loans, scholarships, honorary scholarships, grants, and



13 work-study opportunities available to Kentucky residents attending or planning to



14 attend an eligible institution and to disseminate the information through the



15 methods of mass communication necessary to ensure that Kentucky residents are



16 aware of financial resources available to those attending or desiring to attend an



17 eligible institution.



18 (12) To request reports from each eligible institution or eligible lender necessary for the



19 effective performance of its duties and to publish the information it deems



20 necessary.



21 (13) To approve, disapprove, limit, suspend, or terminate the participation of, or take



22 emergency action to withhold authority funds and insured student loans from



23 eligible institutions or eligible lenders in programs administered by the board,



24 subject to the provisions of the federal act and this chapter.



25 (14) To perform other acts necessary or appropriate to carry out effectively the purposes

26 of the authority as provided by KRS 164.740 to 164.7891 and KRS 164A.010 to



27 164A.380.



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1 (15) If any conflict exists between KRS 164.740 to 164.770 and the federal act, which



2 conflict would result in a loss by the authority of any federal funds, including, but



3 not by way of limitation, federal funds made available to the authority under the



4 federal act, including interest payments and reimbursement for insured student loans



5 in default, to promulgate regulations and policies consistent with the federal act not



6 in derogation of the Constitution and general laws of the Commonwealth.



7 (16) Except where specifically prohibited by law, to secure data from any other



8 Commonwealth of Kentucky agency or instrumentality or from any other source in

9 furtherance of any purposes of the authority related to any program or function



10 administered by the authority.



11 (17) To enter into contracts with public or private nonprofit agencies, eligible to hold or



12 insure student loans under the federal act, to provide for the exchange of



13 information, not in contravention of any federal or state law, or the provision of



14 services necessary to the administration of the authority's insured student loan



15 programs.



16 (18) To enter into contracts with the Kentucky Higher Education Student Loan



17 Corporation, the Kentucky Educational Savings Plan Trust, and the Commonwealth



18 postsecondary education prepaid tuition trust fund as necessary or appropriate to



19 facilitate their common administration, operation, and management, as required



20 pursuant to KRS Chapter 164A.



21 (19) To act as the board of directors of the Commonwealth postsecondary education



22 prepaid tuition trust fund under KRS 164A.700 to 164A.709.



23 (20) To conduct, in accordance with KRS Chapter 13B, administrative hearings



24 pertaining to any adverse action by the authority affecting participating institutions



25 and lenders, eligible students, and borrowers of loans made by the authority and

26 insured student loans guaranteed by the authority. Wage garnishment hearings and



27 administrative review procedures pertaining to disputes concerning setoff of federal



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1 tax refunds shall be exempt under KRS 13B.020 and shall be conducted in



2 accordance with applicable federal law. In an exempt hearing, the board or an



3 administrative law judge[a hearing officer] designated by the board may issue



4 administrative subpoenas for the attendance of witnesses and the production of



5 documents relevant to the issues in dispute. Compliance with the subpoenas shall be



6 enforceable by a court of competent jurisdiction.



7 (21) To provide upon termination of the retirement plan authorized by Executive Order



8 75-964 to active and retired employees of the authority who participated in that

9 plan, health insurance premiums and disability insurance benefits as provided to



10 employees who participate in a state-administered retirement system pursuant to



11 KRS 18A.225 to 18A.229, 61.600, and 61.702.



12 (22) To delegate to the executive director general supervision and direction over the



13 administrative function of the authority and its employees in carrying out the



14 policies, programs, administrative regulations, and directives of the board.



15 Section 41. KRS 197.510 is amended to read as follows:



16 Any contract entered on or after July 15, 1988, between the state and a private provider



17 for the operation and management of an adult correctional facility shall include terms



18 which comply with at least the following:



19 (1) Unless otherwise provided by KRS 197.505 to 197.525, any adult correctional



20 facility contracted for pursuant to KRS 197.505 shall submit a plan to the



21 department for achieving American Correctional Association standards within five



22 (5) years, which is appropriate for the specific type of adult correctional facility.



23 (2) The provisions of KRS Chapter 45A shall apply to any contract or any proposal for



24 a contract authorized by KRS 197.505 to 197.525 for an adult correctional facility.



25 (3) The adult correctional facility shall prepare an annual written budget of anticipated

26 revenues and expenditures which is approved by the appropriate governing



27 authority. The facility shall have written policies which govern revisions in the



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1 budget. The facility shall have a fiscal system which accounts for all income and



2 expenditures on an on-going basis.



3 (4) The adult correctional facility shall prepare and distribute to its governing authority



4 and appropriate agencies including the department, at a minimum, the following



5 documents: annual budget income and expenditure statements; funding source



6 financial reports; and annual independent audit report.



7 (5) The adult correctional facility shall have written fiscal policies and procedures



8 adopted by the governing authority which include at a minimum: internal controls;

9 petty cash; bonding; signature control on checks; resident funds; and employee



10 expense reimbursement.



11 (6) There shall be an annual independent audit of the adult correctional facility. The



12 facility shall have a written policy for inventory control of all property and assets



13 and for purchasing and requisitioning supplies and equipment. The facility shall use



14 a method which documents and authorizes wage payment to employees and



15 consultants.



16 (7) The private provider shall develop and implement a plan for the dissemination of



17 information about the adult correctional facility to the public, government agencies,



18 and the media. The plan shall be made available to all persons. All documents and



19 records, except financial records, maintained by the private provider shall be



20 deemed public records as defined by KRS 61.870 and be subject to the provisions



21 of KRS 61.872 to 61.884.



22 (8) The adult correctional facility shall conform to all applicable zoning ordinances and



23 all applicable state and local building codes, including the Kentucky Building Code,



24 1983 edition and subsequent modifications or replacements thereto.



25 (9) The adult correctional facility shall comply with all applicable laws and regulations

26 of the local and state government regarding sanitation, food service, safety, and



27 health. Copies of inspections completed by the appropriate authorities shall be sent



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1 to the department.



2 (10) The adult correctional facility shall comply with the provisions of the Life Safety



3 Code, 1983 edition, National Fire Protection Association 101 and the regulations of



4 the state or the local fire safety authority, whichever has primary jurisdiction over



5 the adult correctional facility. Copies of the inspections completed by the



6 appropriate authorities shall be sent to the department.



7 (11) A minimum of sixty (60) square feet of floor space per resident shall be provided in



8 the living area of the adult correctional facility. Other areas to be provided shall

9 include space and furnishings to accommodate group meetings of the residents,



10 private counseling space with adequate furniture, and a visiting area.



11 (12) The adult correctional facility shall provide a variety of indoor and outdoor



12 recreational and leisure time activities to include but not be limited to: television,



13 radio, library materials, and recreational facilities. Telephone facilities shall be



14 available on the premises, which are accessible to residents.



15 (13) The adult correctional facility shall provide a level and quality of programs at least



16 equal to those provided by state-operated facilities that house similar types of



17 inmates and at a cost that provides the state with a savings of not less than ten



18 percent (10%) of the cost of housing inmates in similar facilities and providing



19 similar programs to those types of inmates in state-operated facilities.



20 (14) The adult correctional facility shall be staffed twenty-four (24) hours per day seven



21 (7) days per week. The staffing pattern shall be adequate to insure close inmate



22 surveillance and maintenance of security within the facility. The staffing pattern



23 shall address the program, transportation, and security needs of the facility. In



24 determining security need, the proximity of the facility to neighborhood and schools



25 shall be considered.

26 (15) The adult correctional facility shall have a written personnel policy and employees



27 shall be given a copy. The personnel policies shall include, at a minimum:



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1 (a) Organization chart;



2 (b) Employment practices and procedures including in-service training and staff



3 developing;



4 (c) Promotions;



5 (d) Job qualifications and job descriptions;



6 (e) Grievance and appeal procedures;



7 (f) Employee evaluation;



8 (g) Personnel records;

9 (h) Benefits;



10 (i) Holidays;



11 (j) Leave;



12 (k) Hours of work;



13 (l) Salaries (or the base for determining salaries);



14 (m) Disciplinary procedures;



15 (n) Termination; and



16 (o) Resignation.



17 (16) The adult correctional facility shall maintain written job descriptions and job



18 qualifications for all positions in the facility including: job title, responsibilities of



19 the positions, and required minimum experience and education. An affirmative



20 action program shall be adopted by the governing authority. The correctional facility



21 shall maintain a current, accurate, and confidential personnel record on each



22 employee. The facility shall have written policy and procedures requiring an annual



23 performance evaluation of all employees. This evaluation shall be reviewed and



24 discussed with the employee.



25 (17) Prior to employment, all employees of the adult correctional facility shall be subject

26 to thorough background investigation to include criminal, medical, and employment



27 history. All security employees of the facility shall be at least eighteen (18) years of



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1 age. The facility shall provide initial orientation for all new employees during the



2 first week of employment. The facility shall comply with all governmental



3 regulatory requirements related to employment and personnel practices. Personnel



4 selection and assignments shall be based on merit.



5 (18) The administrator of the adult correctional facility shall have a minimum of five (5)



6 years experience in corrections or law enforcement and five (5) years experience in



7 administration. The remaining staff of the facility shall have the same qualifications



8 and training as the staff employed in similar positions in adult correctional facilities

9 operated by the department.



10 (19) The adult correctional facility shall provide the following services and programs,



11 the extent to which shall be set forth in the contract between the state and the



12 private provider but shall be consistent with the standards of the American



13 Correctional Association:



14 (a) Health and medical services;



15 (b) Food services;



16 (c) Mail, telephone use, and visitation;



17 (d) Access to legal services and legal materials;



18 (e) Vocational training;



19 (f) Educational programs;



20 (g) Counseling services including personal counseling;



21 (h) Drug and alcohol counseling; and



22 (i) Sanitation services.



23 (20) The adult correctional facility shall have a written fire and emergency plan for the



24 facility which shall be communicated to all employees and inmates and updated, if



25 needed. The facility's written emergency plan shall be conspicuously posted in the

26 facility. The facility staff shall document the conduct of quarterly emergency drills.



27 (21) The adult correctional facility shall have a written policy restricting the use of



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1 physical force to instances of justifiable self-protection, prevention of property



2 damage, and prevention of escapes, and only to the degree necessary. In compliance



3 with applicable laws, the facility shall maintain and make public, written policies



4 and procedures for conducting searches of residents and all areas of the facility, to



5 control contraband and locate missing or stolen property. The facility shall have a



6 written plan to control movement in and out of the facility. The facility shall have



7 written procedures to account for the whereabouts of the residents at all times.



8 (22) The adult correctional facility shall establish a procedure for inspecting all facility

9 areas accessible to inmates for contraband and physical security at least weekly.



10 Isolated security spot checks shall be conducted daily. Items considered as



11 contraband or items permitted in the facility shall be clearly defined in the facility's



12 rules.



13 (23) The adult correctional facility shall report all suspected felonies to the Kentucky



14 State Police for investigation. A written report shall be made of all extraordinary or



15 unusual occurrences within twenty-four (24) hours of the occurrence. This report



16 shall be placed in the inmate's folder and a copy forwarded to the department. All



17 these occurrences shall be promptly reported to the department verbally prior to



18 submission of the written report. Extraordinary or unusual occurrences shall include



19 but not be limited to:



20 (a) Death of a resident;



21 (b) Attempted suicide or suicide;



22 (c) Serious injury, whether accidental or self-inflicted;



23 (d) Attempted escape or escape from confinement;



24 (e) Fire;



25 (f) Riot;

26 (g) Battery, whether by a staff member or resident;



27 (h) Sexual assaults; and



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1 (i) Occurrence of contagious or infectious disease, or illness within the facility.



2 (24) Each adult correctional facility shall have written policy and procedures for



3 emergency situations including but not limited to:



4 (a) Escapes;



5 (b) Taking of hostages;



6 (c) Riots;



7 (d) Food poisoning;



8 (e) Civil disturbances in the community;

9 (f) Natural disaster;



10 (g) Suicides; and



11 (h) Other deaths and disorder.



12 (25) The adult correctional facility shall adopt a written policy and procedures which



13 shall insure that the constitutional rights of inmates to voluntarily practice their own



14 religious activities are protected, subject only to those limitations necessary to



15 maintain order and security of the facility.



16 (26) The adult correctional facility shall adopt a written policy which shall be



17 implemented to insure that no inmate or group of inmates is in a position of control



18 or authority over other inmates.



19 (27) The adult correctional facility shall have a policy and procedure for recommending



20 awarding of meritorious good time for inmates in accordance with policies and



21 procedures of the department. The procedures shall include formation of a



22 committee to include an administrator to screen all recommendations. The



23 recommendations shall be sent to the department. Recommendations for restoration



24 of good time shall be screened by the same committee and forwarded to the



25 department.

26 (28) If the adult correctional facility operates a canteen, all profits shall be spent for



27 recreational programs for inmates. Prices shall be in accordance with those



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1 established by the Department of Corrections Inmate Canteen Board.



2 (29) The department shall have the authority to conduct periodic, scheduled, and



3 unannounced inspections of the adult correctional facility during the term of the



4 contract. The department shall generally observe and monitor the operations of the



5 adult correctional facility at least once per week.



6 (30) The contract shall provide a hold harmless clause by which the private provider



7 agrees to indemnify, defend, and hold harmless the Commonwealth, its officers,



8 agents, and employees from:

9 (a) Any claims or losses for service rendered by the private provider, person, or



10 firm performing or supplying services in connection with performance of the



11 contract;



12 (b) Any claims or losses to any person or firm injured or damaged by the



13 erroneous or negligent acts of the private provider, its officers, or employees



14 in the performance of the contract;



15 (c) Any claims or losses resulting to any person or firm injured or damaged by the



16 private provider, its officers, or employees by the publication, translation,



17 reproduction, delivery, performance, use, or disposition of any data processed



18 under the contract in a manner not authorized by the contract, or by federal or



19 Commonwealth regulations or statutes; and



20 (d) Any failure of the private provider, its officers, or employees to observe



21 Kentucky laws, including but not limited to labor laws and minimum wage



22 laws.



23 (31) The contract shall require that the private provider give a performance bond to the



24 Commonwealth as obligee, in form satisfactory to the Commonwealth, executed by



25 a surety company authorized to do business in Kentucky and in the penal sum equal

26 to: twenty percent (20%) multiplied by the maximum number of inmates to be



27 housed in the adult correctional facility multiplied by three hundred sixty-five (365)



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1 and further multiplied by the rate to be paid the private provider per inmate per day.



2 (32) The private provider shall provide public liability, property damage, and workers'



3 compensation insurance, insuring, as they may appear, the interest of all parties of



4 agreement against any and all claims which may arise out of the private provider's



5 operations under the terms of this contract. If any carrier of the insurance exercises



6 cancellation, notice shall be made immediately to the Commonwealth of the



7 cancellation.



8 (33) As set forth within the contract between the Department of Corrections and the

9 private provider:



10 (a) Failure of the private provider to provide the required services, products, or



11 facilities shall entitle the department to withhold from the contract an amount



12 up to two (2) times the estimated value per day per inmate for the service,



13 product, or facility during the entire length of time which the failure to



14 provide exists.



15 (b) The department shall in writing notify the provider of any failure to provide



16 services, products, or facilities as required. A copy of the written notice shall



17 be sent to the Finance and Administration Cabinet. The private provider shall



18 have fourteen (14) calendar days from its receipt of the notice to abate the



19 failure to provide and to notify the department of the corrective action taken



20 by the private provider.



21 (c) In the event the department determines that the failure to provide has not been



22 abated within fourteen (14) calendar days after the initial notice, the



23 commissioner of the Department of Corrections shall hold, or assign the



24 matter to an administrative law judge[a hearing officer] for, a hearing and



25 issue findings of fact, conclusions of law, and a recommended order.

26 (d) Failure to provide services, products, or facilities as required in this agreement



27 shall result in an order to withhold from the contract an amount up to two (2)



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1 times the estimated value, as determined after a hearing, per day per inmate



2 for the service, product, or facility during the entire length of time which the



3 failure to provide exists.



4 (e) The withholding shall continue until such time as the failure to provide is



5 corrected in the manner stated in the order.



6 (f) The department and private provider shall in good faith negotiate the actual



7 fair value of the omitted service, product, or facility which shall be subtracted



8 from the amount withheld. The balance of the withholding, if any, shall be

9 promptly returned to the private provider upon final agreement of the



10 department and private provider. Additional withholding from the contract



11 shall be made by the department if an additional amount is due.



12 (g) The provider may appeal, within thirty (30) days, any order of the department



13 to the Franklin Circuit Court.



14 Section 42. KRS 197.530 is amended to read as follows:



15 (1) As set forth within the contract between the Department of Corrections and the



16 private provider: The department may recommend to the secretary of the Finance



17 and Administration Cabinet the assessment of an administrative fine against the



18 private provider of not more than five thousand dollars ($5,000) for the violation of



19 each and any term of the contract, or of KRS 197.510. Recommendation of fine or



20 penalty assessment by the department shall occur only after a notice of intent to do



21 so has been presented by registered mail to the private provider. The notice of intent



22 shall incorporate the findings of the department and other agencies, if appropriate.



23 (2) The private provider may, within seventy-two (72) hours of the receipt of the notice



24 of intent, request in writing a hearing before an objective administrative law



25 judge[hearing officer of the Attorney General's Office]. The secretary of the Finance

26 and Administration Cabinet shall by order issue, modify, or repeal the



27 recommended fine or penalty. The amount of any fine or penalty shall be consistent



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1 with the administrative law judge's[hearing officer's] recommendations resulting



2 from the administrative hearing. The private provider may, at its discretion, waive



3 its right to an administrative hearing.



4 (3) Appeals from any fine or penalty assessed pursuant to this section shall be granted



5 as a matter of right, and shall be taken to the Franklin Circuit Court within thirty



6 (30) days from the date the fine or penalty is issued by the secretary of the Finance



7 and Administration Cabinet.



8 Section 43. KRS 205.231 is amended to read as follows:

9 (1) The secretary shall appoint one (1) or more impartial administrative law



10 judges[hearing officers] to hear and decide upon appealed decisions.



11 (2) Any applicant or recipient who is dissatisfied with the decision or delay in action on



12 his application for public assistance or the amount granted to him may appeal to an



13 administrative law judge[a hearing officer], except that an appeal and a hearing



14 need not be granted if the sole issue is a federal or state law requiring an automatic



15 change adversely affecting some or all recipients of the Kentucky medical



16 assistance program so long as advance notice of the change, with an explanation of



17 appeal rights, is provided to all affected recipients. However, a recipient may appeal



18 whether the cabinet is accurately interpreting a change in federal or state law which



19 may adversely affect the recipient. On receipt of an appeal, an administrative



20 hearing shall be conducted in accordance with KRS Chapter 13B.



21 (3) The secretary may appoint an Appeal Board for Public Assistance composed of the



22 secretary and two (2) other members. The secretary shall be chairman, and he and



23 one (1) other member constitute a quorum.



24 (4) Any applicant or recipient who is dissatisfied with the decision of an administrative



25 law judge[a hearing officer] may appeal to the appeal board in the manner and form

26 prescribed by administrative regulation. The board may on its own motion affirm,



27 modify, or set aside any decision of an administrative law judge[a hearing officer]



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1 on the basis of the evidence previously submitted in the case, or direct the taking of



2 additional evidence, or may permit any of the parties to the decision to initiate



3 further appeals before it. The board may remove itself or transfer to another



4 administrative law judge[hearing officer] the proceedings on any appeal pending



5 before an administrative law judge[a hearing officer]. The board shall promptly



6 notify the parties to any proceedings of its findings and decisions.



7 (5) The manner in which appeals are presented and hearings and appeals conducted



8 under subsection (4) of this section shall be in accordance with administrative

9 regulations promulgated by the secretary.



10 (6) After a decision by the appeal board, any party aggrieved by the decision may seek



11 judicial review of the decision by filing a petition in the Circuit Court of the county



12 in which the petitioner resides, in accordance with KRS 13B.140, 13B.150, and



13 13B.160.



14 Section 44. KRS 205.5639 is amended to read as follows:



15 (1) Any recommendation by the board is advisory to the commissioner.



16 (2) Any interested party may request an opportunity to make a presentation or argument



17 to the board on any item under consideration by the board. The Cabinet for Health



18 and Family Services shall, by administrative regulation promulgated in accordance



19 with KRS Chapter 13A, establish requirements for presentations before the board.



20 (3) Any interested party who is aggrieved by a recommendation of the board to the



21 commissioner or his designee may submit written exceptions consisting of only new



22 information that was not available to be presented at the time of the board's



23 consideration of the matter. These written exceptions shall be submitted within ten



24 (10) days of the recommendation. After the time for filing exceptions has expired,



25 the commissioner or the commissioner's designee shall consider all exceptions filed

26 in a timely manner prior to acting upon the recommendation of the board. If the



27 deadline for filing written exceptions falls on a Saturday, Sunday, or a state holiday,



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1 the exceptions may be filed the following day.



2 (4) In making a final decision on any recommendation of the board, the commissioner



3 may seek additional and clarifying information from any source. Any additional



4 information submitted to the commissioner shall be made a part of the



5 administrative record supporting the final decision.



6 (5) An appeal from a decision of the commissioner may be made in accordance with



7 KRS Chapter 13B by a manufacturer of the product. Unless held in abeyance or



8 otherwise addressed by the administrative law judge[hearing officer], the decision

9 of the commissioner stands until final disposition of the issue.



10 Section 45. KRS 205.6315 is amended to read as follows:



11 When the cabinet contracts with any private peer review organization to conduct



12 utilization reviews of the levels of care of the state's Medicaid program recipients, the



13 following shall apply:



14 (1) In determining the appropriate level of care of a Medicaid beneficiary who is a



15 patient in a nursing facility setting, and prior to any change that reduces a Medicaid



16 beneficiary's eligibility for covered services, the contracted peer review organization



17 shall assure that:



18 (a) An in-person assessment of the Medicaid beneficiary is made; and



19 (b) A licensed physician has reviewed the written documentation of the peer



20 review organization's evaluation and provided a written review of the



21 evaluation to be a part of the patient's record.



22 (2) If the level of care is changed for a Medicaid beneficiary who is a resident or patient



23 in a nursing facility setting or a Medicaid beneficiary who receives community-



24 based waiver services, and the change makes that beneficiary ineligible for the



25 Medicaid covered service, the peer review organization shall notify the

26 commissioner of Medicaid in the cabinet, and shall provide a written notification



27 sent by registered return receipt mail to the affected Medicaid beneficiary, nursing



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1 facility, affected Medicaid beneficiary's attending physician, and the affected



2 beneficiary's responsible party.



3 (3) If the level of care for a Medicaid beneficiary results in an adverse determination,



4 the affected Medicaid beneficiary, or the responsible person or party, may appeal



5 through an application for reconsideration to be filed with the cabinet within ten



6 (10) days from the date of receipt of the registered return receipt written



7 notification. If the responsible party's registered return receipt mail is undeliverable,



8 the attending physician may initiate the appeal on behalf of the affected Medicaid

9 beneficiary.



10 (a) All benefits which the affected Medicaid recipient, and the nursing facility are



11 eligible for shall be continued during that ten (10) day time frame; and



12 (b) As long as the affected Medicaid recipient is engaged in an appeal of an



13 adverse determination from a peer review organization, all benefits for which



14 the affected Medicaid recipient and nursing facility are eligible shall be



15 continued until an appropriate residential setting is secured, in any event, not



16 to exceed ninety (90) days from the date of the request for a hearing, or until a



17 final determination is made by an administrative law judge[a hearing officer].



18 (4) (a) If the level of care is lowered for a Medicaid beneficiary who is a resident or



19 patient in a nursing facility setting, an independent examination may be



20 conducted by the resident's attending physician.



21 (b) If the resident's attending physician conducts an independent examination, the



22 attending physician shall make a recommendation concerning the appropriate



23 level of care and forward, in writing, the results of the examination and the



24 recommendation to the peer review organization, the affected recipient, the



25 nursing facility, and the responsible party.

26 (5) For the purposes of this section, "responsible person or party" shall mean an



27 individual authorized by the resident of the facility to act for the resident as an



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1 official delegate or agent. The responsible person may be a guardian, payee, family



2 member, or any other individual who has arranged for the care of the resident and



3 assumed this responsibility. The responsible party may or may not be related to the



4 resident. A responsible person or party is not a guardian unless so appointed by the



5 court.



6 (6) The peer review organization shall:



7 (a) Inform the patient and guardian, responsible party, or family member, upon



8 initial qualification for Medicaid covered services, and with the written

9 notification of an adverse determination from a peer review organization:



10 1. Of the manner in which notification of any adverse decision will be



11 made;



12 2. Of the process for securing a timely review of any adverse decision;



13 3. That a request for reconsideration must be postmarked no later than ten



14 (10) days after receipt of the initial written notification of any adverse



15 decision;



16 4. Of the toll-free line that will be provided for questions regarding



17 reviews; and



18 5. Of the process for appealing an adverse reconsideration to the cabinet;



19 (b) Provide a written peer review organization physician review of all adverse



20 determinations;



21 (c) Provide for an attending physician review of all adverse determinations as



22 outlined in subsection (4) of this section;



23 (d) Inform the commissioner of all information related to an appeal of an adverse



24 action; and



25 (e) Provide the information identified in paragraph (a) of this subsection, at the

26 time of an adverse determination notification, to any affected nursing facility



27 in which a Medicaid beneficiary resides.



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1 Section 46. KRS 205.915 is amended to read as follows:



2 (1) Within thirty (30) days of any recommendation of any decision by the cabinet, an



3 aggrieved party may appeal. The secretary shall appoint one (1) or more



4 administrative law judges[trained hearing officers] to hear and decide the appeal.



5 (2) Any party who is dissatisfied with the decision of the administrative law



6 judge[hearing officer] may appeal to the appeal board. The board may on its own



7 motion affirm, modify or set aside any decision of an administrative law judge[a



8 hearing officer] on the basis of evidence previously submitted or may direct the

9 taking of additional evidence or may permit any party to initiate further appeals



10 before it. The board shall notify promptly the parties of its findings and decisions.



11 (3) The manner in which appeals are presented and hearings and appeals conducted



12 shall be in accordance with regulations prescribed by the secretary for determining



13 the rights of parties, such hearings to be conducted in a summary manner. A



14 complete record shall be kept of all proceedings in connection with any appeal. All



15 testimony at any hearing upon an appeal shall be recorded either stenographically or



16 mechanically. No administrative law judge[hearing officer] or member of the board



17 shall participate in any hearing in which he is an interested party.



18 Section 47. KRS 210.270 is amended to read as follows:



19 (1) The secretary of the Cabinet for Health and Family Services is authorized to



20 designate those private homes, private nursing homes, and private institutions that



21 he deems, after a thorough investigation of the personal and financial qualifications



22 of the owners and tenants, the facilities and management, and the desirability of the



23 location of the homes, suitable for the placement of patients, including individuals



24 with mental illness or mental retardation of all ages, outside of the state mental



25 hospitals. The secretary of the Cabinet for Health and Family Services may

26 promulgate, by administrative regulation, standards for the selection and operation



27 of private homes, private nursing homes, and private institutions designated for the



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1 placement of patients. No home of an officer or employee of the Cabinet for Health



2 and Family Services or of a member of his immediate family shall be designated for



3 the placement of patients.



4 (2) Whenever the staff of a state mental hospital has determined that a patient who is



5 not being held on an order arising out of a criminal offense has sufficiently



6 improved and is not dangerous to himself or other persons, and that it would be in



7 the patient's best interest to be placed outside of the hospital in a private home or



8 private nursing home, the hospital shall so certify and authorize the patient to be

9 transferred to a designated private home or private nursing home for care and



10 custody for a length of time that the hospital deems advisable.



11 (3) No patient with mental retardation lodged in a state institution may have his level of



12 care reclassified nor may he be transferred to a private nursing home or other



13 private institution without first providing ten (10) days' notice by certified mail,



14 return receipt requested, to the patient's parents or guardian that a reclassification of



15 the patient's level of care or a transfer in the place of residence is being considered.



16 (4) Any parent or guardian of any patient with mental retardation lodged in a state



17 institution may participate in any evaluation procedure which may result in a



18 reclassification of the patient's level of care or in a transfer in the place of residence



19 of the patient. Participation may include the submission by the parents or guardian



20 of medical evidence or any other evidence deemed relevant by the parents or



21 guardian to the possible reclassification or transfer of the patient.



22 (5) If the decision to reclassify or transfer any patient with mental retardation is adverse



23 to the best interests of the patient as expressed by the parents or guardian, they shall



24 be given notice by certified mail, return receipt requested, that they are entitled to a



25 thirty (30) day period from the receipt of such notice to file with the secretary of the

26 Cabinet for Health and Family Services a notice of appeal and application for a



27 hearing. Upon receipt of an application for a hearing, a hearing shall be conducted



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1 in accordance with KRS Chapter 13B.



2 (6) The appeal shall be heard by a three (3) member panel composed of a designated



3 representative of the Cabinet for Health and Family Services, a designated



4 representative of the state institution where the patient with mental retardation is



5 presently lodged, and a designated neutral representative appointed by the county



6 judge/executive wherein the institution in question is located. The secretary may



7 appoint an administrative law judge[a hearing officer] to preside over the conduct



8 of the hearing.

9 (7) Decisions made by the panel may be appealed to the Circuit Court of the county in



10 which the state institution in question is located, to the Circuit Court of the county



11 in which either of the parents or guardians or committee of the patient in question is



12 domiciled at the time of the decision, or to Franklin Circuit Court in accordance



13 with KRS Chapter 13B.



14 (8) All parents or guardians or committee of a patient with mental retardation lodged in



15 a state institution shall be fully apprised by the Cabinet for Health and Family



16 Services of their rights and duties under the provisions of subsections (3), (4), (5),



17 (6), and (7) of this section.



18 (9) The provisions of KRS 210.700 to 210.760 shall apply to patients transferred to



19 designated private homes and private nursing homes as though the patients were



20 residing in a state mental hospital.



21 Section 48. KRS 210.440 is amended to read as follows:



22 (1) At the beginning of each fiscal year, the secretary of the Cabinet for Health and



23 Family Services shall allocate available funds to the mental health-mental



24 retardation boards or nonprofit organizations for disbursement during the fiscal year



25 in accordance with approved plans and budgets. The secretary shall, from time to

26 time during the fiscal year, review the operations, budgets, and expenditures of the



27 various programs; and if funds are not needed for a program to which they were



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1 allocated, he may, after reasonable notice and opportunity for hearing, withdraw any



2 funds that are unencumbered and reallocate them to other programs. He may



3 withdraw funds from any program, or component part thereof, which is not being



4 operated and administered in accordance with its approved plan and budget, and the



5 policies and administrative regulations of the cabinet promulgated pursuant to KRS



6 210.370 to 210.480.



7 (2) If the secretary finds at any time that a mental health-mental retardation board or



8 nonprofit organization to which funds have been allocated for the operation of a

9 regional community mental health and mental retardation program is not operating



10 and administering its program in compliance and accordance with the approved plan



11 and budget and the policies and administrative regulations of the cabinet, he may



12 withdraw his recognition of that board or organization as the local authority for the



13 receipt of funds and the operation and administration of regional community mental



14 health and mental retardation programs.



15 (3) If the secretary finds at any time that an emergency situation exists with regard to



16 the financial stability of any regional mental health-mental retardation board or



17 nonprofit organization, which jeopardizes the continuation of programs and



18 provision of services in the area served by that board or nonprofit organization, he



19 may, other statutes to the contrary notwithstanding:



20 (a) Appoint a caretaker administrator who shall be authorized to direct the



21 operation and administration of the board or nonprofit organization's



22 community mental health and mental retardation programs including, but not



23 limited to, their financial record keeping, their personnel management



24 operations, and their financial and program reporting; and



25 (b) Make personnel changes deemed necessary to insure the continued operation

26 of the board or nonprofit organization in compliance with its plan and budget



27 and the policies and regulations of the cabinet.



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1 (4) Any community mental health-mental retardation board to be affected by the



2 provisions of subsections (2) and (3) of this section shall be notified by the secretary



3 of the Cabinet for Health and Family Services thirty (30) days prior to the



4 anticipated action by the secretary. The notification shall be by means of a letter



5 from the secretary to the chairman of the mental health-mental retardation board in



6 question and shall state the reasons for the anticipated action. Following the



7 notification, the mental health-mental retardation board may:



8 (a) Comply with the secretary's action without contesting it; or

9 (b) Request an administrative hearing before an administrative law judge[a



10 hearing officer] appointed by the secretary to show cause why the action



11 should not stand. The application shall be made within seven (7) days of the



12 receipt of the letter from the secretary, and the hearing shall be conducted in



13 accordance with KRS Chapter 13B.



14 Section 49. KRS 216.567 is amended to read as follows:



15 (1) The manner in which appeals are presented from any decision on ratings, citations,



16 or penalties pursuant to KRS 216.537 to 216.590 shall be in accordance with KRS



17 Chapter 13B.



18 (2) The secretary shall appoint one (1) or more impartial administrative law



19 judges[hearing officers] to hear and decide upon appealed decisions. The decision



20 of the administrative law judge[hearing officer] shall be the final order of the



21 cabinet.



22 (3) Any party aggrieved by a final order may seek judicial review by filing a petition in



23 the Franklin Circuit Court in accordance with KRS 13B.140 and 13B.150.



24 Section 50. KRS 216A.070 is amended to read as follows:



25 (1) The board shall:

26 (a) Develop, impose, and enforce standards which must be met by individuals in



27 order to receive a license as a nursing home administrator, which standards



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1 shall be designed to insure that nursing home administrators will be



2 individuals who are of good character and are otherwise suitable, and who, by



3 training or experience in the field of institutional administration, are qualified



4 to serve as nursing home administrators;



5 (b) Develop and apply appropriate techniques, including examinations and



6 investigations, for determining whether an individual meets the standards;



7 (c) Issue licenses to individuals determined, after application of appropriate



8 techniques, to meet established standards, and revoke or suspend, after

9 hearing, licenses previously issued by the board in any case where the



10 individual holding any such license is determined substantially to have failed



11 to conform to the requirements of the standards;



12 (d) Establish and carry out procedures designed to insure that individuals licensed



13 as nursing home administrators will, during any period that they serve as such,



14 comply with the requirements of the standards;



15 (e) Receive, investigate, and take appropriate action with respect to any charge or



16 complaint filed with the board to the effect that any individual licensed as a



17 nursing home administrator has failed to comply with the requirements of the



18 standards; and



19 (f) Conduct a continuing study and investigation of nursing homes and



20 administrators of nursing homes within the state with a view to the



21 improvement of the standards imposed for the licensing of such administrators



22 and of procedures and methods for the enforcement of such standards with



23 respect to administrators of nursing homes who have been licensed as such.



24 (2) The board or any committee or member thereof or any administrative law



25 judge[hearing officer] designated by the board, acting in an official capacity, shall

26 have the authority to conduct administrative hearings in accordance with KRS



27 Chapter 13B concerning all matters within the jurisdiction of the board.



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1 (3) The board shall also have the authority to promulgate administrative regulations



2 necessary for the proper performance of its duties, and to take other actions



3 necessary to enable the state to meet the requirements set forth in Section 1908 of



4 the Social Security Act, the federal rules and regulations promulgated thereunder,



5 and other pertinent federal authority or amendment thereto.



6 (4) The board may, when emergency conditions warrant, as determined by the board,



7 authorize the issuance of a temporary permit to an individual to practice the art of



8 nursing home administration if it finds the authorization will not endanger the

9 health and safety of the occupants of the nursing home. A temporary permit shall be



10 valid for a period determined by the board not to exceed six (6) months and shall



11 not be renewed. The fee for a temporary permit shall be determined by regulations



12 of the board.



13 Section 51. KRS 216B.015 is amended to read as follows:



14 Except as otherwise provided, for purposes of this chapter, the following definitions shall



15 apply:



16 (1) "Abortion facility" means any place in which an abortion is performed;



17 (2) "Administrative regulation" means a regulation adopted and promulgated pursuant



18 to the procedures in KRS Chapter 13A;



19 (3) "Affected persons" means the applicant; any person residing within the geographic



20 area served or to be served by the applicant; any person who regularly uses health



21 facilities within that geographic area; health facilities located in the health service



22 area in which the project is proposed to be located which provide services similar to



23 the services of the facility under review; health facilities which, prior to receipt by



24 the agency of the proposal being reviewed, have formally indicated an intention to



25 provide similar services in the future; and the cabinet and third-party payors who

26 reimburse health facilities for services in the health service area in which the project



27 is proposed to be located;



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1 (4) "Applicant" means any physician's office requesting a major medical equipment



2 expenditure of one million five hundred thousand dollars ($1,500,000) or more after



3 July 15, 1996, adjusted annually, or any person, health facility, or health service



4 requesting a certificate of need or license;



5 (5) "Cabinet" means the Cabinet for Health and Family Services;



6 (6) "Capital expenditure" means an expenditure made by or on behalf of a health



7 facility which:



8 (a) Under generally accepted accounting principles is not properly chargeable as

9 an expense of operation and maintenance or is not for investment purposes



10 only; or



11 (b) Is made to obtain by lease or comparable arrangement any facility or part



12 thereof or any equipment for a facility or part thereof;



13 (7) "Capital expenditure minimum" means one million five hundred thousand dollars



14 ($1,500,000) beginning with July 15, 1994, and as adjusted annually thereafter. In



15 determining whether an expenditure exceeds the expenditure minimum, the cost of



16 any studies, surveys, designs, plans, working drawings, specifications, and other



17 activities essential to the improvement, expansion, or replacement of any plant or



18 any equipment with respect to which the expenditure is made shall be included.



19 Donations of equipment or facilities to a health facility which if acquired directly by



20 the facility would be subject to review under this chapter shall be considered a



21 capital expenditure, and a transfer of the equipment or facilities for less than fair



22 market value shall be considered a capital expenditure if a transfer of the equipment



23 or facilities at fair market value would be subject to review;



24 (8) "Certificate of need" means an authorization by the cabinet to acquire, to establish,



25 to offer, to substantially change the bed capacity, or to substantially change a health

26 service as covered by this chapter;



27 (9) "Certified surgical assistant" means a certified surgical assistant or certified first



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1 assistant who is certified by the National Surgical Assistant Association on the



2 Certification of Surgical Assistants, the Liaison Council on Certification of Surgical



3 Technologists, or the American Board of Surgical Assistants. The certified surgical



4 assistant is an unlicensed health-care provider who is directly accountable to a



5 physician licensed under KRS Chapter 311 or, in the absence of a physician, to a



6 registered nurse licensed under KRS Chapter 314;



7 (10) "Continuing care retirement community" means a community that provides, on the



8 same campus, a continuum of residential living options and support services to

9 persons sixty (60) years of age or older under a written agreement. The residential



10 living options shall include independent living units, nursing home beds, and either



11 assisted living units or personal care beds;



12 (11) "Formal review process" means the ninety (90) day certificate-of-need review



13 conducted by the cabinet;



14 (12) "Health facility" means any institution, place, building, agency, or portion thereof,



15 public or private, whether organized for profit or not, used, operated, or designed to



16 provide medical diagnosis, treatment, nursing, rehabilitative, or preventive care and



17 includes alcohol abuse, drug abuse, and mental health services. This shall include,



18 but shall not be limited to, health facilities and health services commonly referred to



19 as hospitals, psychiatric hospitals, physical rehabilitation hospitals, chemical



20 dependency programs, tuberculosis hospitals, skilled nursing facilities, nursing



21 facilities, nursing homes, personal care homes, intermediate care facilities, family



22 care homes, primary care centers, rural health clinics, outpatient clinics, ambulatory



23 care facilities, ambulatory surgical centers, emergency care centers and services,



24 ambulance providers, hospices, community mental health and mental retardation



25 centers, home health agencies, kidney disease treatment centers and freestanding

26 hemodialysis units, facilities and services owned and operated by health



27 maintenance organizations directly providing health services subject to certificate of



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1 need, and others providing similarly organized services regardless of nomenclature;



2 (13) "Health services" means clinically related services provided within the



3 Commonwealth to two (2) or more persons, including, but not limited to,



4 diagnostic, treatment, or rehabilitative services, and includes alcohol, drug abuse,



5 and mental health services;



6 (14) "Independent living" means the provision of living units and supportive services



7 including, but not limited to, laundry, housekeeping, maintenance, activity



8 direction, security, dining options, and transportation;

9 (15) "Intraoperative surgical care" includes the practice of surgical assisting in which the



10 certified surgical assistant or physician assistant is working under the direction of



11 the operating physician as a first or second assist, and which may include the



12 following procedures:



13 (a) Positioning the patient;



14 (b) Preparing and draping the patient for the operative procedure;



15 (c) Observing the operative site during the operative procedure;



16 (d) Providing the best possible exposure of the anatomy incident to the operative



17 procedure;



18 (e) Assisting in closure of incisions and wound dressings; and



19 (f) Performing any task, within the role of an unlicensed assistive person, or if the



20 assistant is a physician assistant, performing any task within the role of a



21 physician assistant, as required by the operating physician incident to the



22 particular procedure being performed;



23 (16) "Major medical equipment" means equipment which is used for the provision of



24 medical and other health services and which costs in excess of the medical



25 equipment expenditure minimum. For purposes of this subsection, "medical

26 equipment expenditure minimum" means one million five hundred thousand dollars



27 ($1,500,000) beginning with July 15, 1994, and as adjusted annually thereafter. In



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1 determining whether medical equipment has a value in excess of the medical



2 equipment expenditure minimum, the value of studies, surveys, designs, plans,



3 working drawings, specifications, and other activities essential to the acquisition of



4 the equipment shall be included;



5 (17) "Nonsubstantive review" means an expedited review conducted by the cabinet of an



6 application for a certificate of need as authorized under KRS 216B.095;



7 (18) "Nonclinically-related expenditures" means expenditures for:



8 (a) Repairs, renovations, alterations, and improvements to the physical plant of a

9 health facility which do not result in a substantial change in beds, a substantial



10 change in a health service, or the addition of major medical equipment, and do



11 not constitute the replacement or relocation of a health facility; or



12 (b) Projects which do not involve the provision of direct clinical patient care



13 including, but not limited to, the following:



14 1. Parking facilities;



15 2. Telecommunications or telephone systems;



16 3. Management information systems;



17 4. Ventilation systems;



18 5. Heating or air conditioning, or both;



19 6. Energy conservation; or



20 7. Administrative offices;



21 (19) "Party to the proceedings" means the applicant for a certificate of need and any



22 affected person who appears at a hearing on the matter under consideration and



23 enters an appearance of record;



24 (20) "Perioperative nursing" means a practice of nursing in which the nurse provides



25 preoperative, intraoperative, and postoperative nursing care to surgical patients;

26 (21) "Person" means an individual, a trust or estate, a partnership, a corporation, an



27 association, a group, state, or political subdivision or instrumentality including a



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1 municipal corporation of a state;



2 (22) "Physician assistant" means the same as the definition provided in KRS 311.550;



3 (23) "Record" means, as applicable in a particular proceeding:



4 (a) The application and any information provided by the applicant at the request



5 of the cabinet;



6 (b) Any information provided by a holder of a certificate of need or license in



7 response to a notice of revocation of a certificate of need or license;



8 (c) Any memoranda or documents prepared by or for the cabinet regarding the

9 matter under review which were introduced at any hearing;



10 (d) Any staff reports or recommendations prepared by or for the cabinet;



11 (e) Any recommendation or decision of the cabinet;



12 (f) Any testimony or documentary evidence adduced at a hearing;



13 (g) The findings of fact and opinions of the cabinet or the findings of fact and



14 recommendation of the administrative law judge[hearing officer]; and



15 (h) Any other items required by administrative regulations promulgated by the



16 cabinet;



17 (24) "Registered nurse first assistant" means one who:



18 (a) Holds a current active registered nurse licensure;



19 (b) Is certified in perioperative nursing; and



20 (c) Has successfully completed and holds a degree or certificate from a



21 recognized program, which shall consist of:



22 1. The Association of Operating Room Nurses, Inc., Core Curriculum for



23 the registered nurse first assistant; and



24 2. One (1) year of postbasic nursing study, which shall include at least



25 forty-five (45) hours of didactic instruction and one hundred twenty

26 (120) hours of clinical internship or its equivalent of two (2) college



27 semesters.



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1 A registered nurse who was certified prior to 1995 by the Certification Board of



2 Perioperative Nursing shall not be required to fulfill the requirements of paragraph



3 (c) of this subsection;



4 (25) "Secretary" means the secretary of the Cabinet for Health and Family Services;



5 (26) "Sexual assault examination facility" means a licensed health facility, emergency



6 medical facility, primary care center, or a children's advocacy center or rape crisis



7 center that is regulated by the Cabinet for Health and Family Services, and that



8 provides sexual assault examinations under KRS 216B.400;

9 (27) "State health plan" means the document prepared triennially, updated annually, and



10 approved by the Governor;



11 (28) "Substantial change in a health service" means:



12 (a) The addition of a health service for which there are review criteria and



13 standards in the state health plan;



14 (b) The addition of a health service subject to licensure under this chapter; or



15 (c) The reduction or termination of a health service which had previously been



16 provided in the health facility;



17 (29) "Substantial change in bed capacity" means the addition, reduction, relocation, or



18 redistribution of beds by licensure classification within a health facility;



19 (30) "Substantial change in a project" means a change made to a pending or approved



20 project which results in:



21 (a) A substantial change in a health service, except a reduction or termination of a



22 health service;



23 (b) A substantial change in bed capacity, except for reductions;



24 (c) A change of location; or



25 (d) An increase in costs greater than the allowable amount as prescribed by

26 regulation;



27 (31) "To acquire" means to obtain from another by purchase, transfer, lease, or other



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1 comparable arrangement of the controlling interest of a capital asset or capital stock,



2 or voting rights of a corporation. An acquisition shall be deemed to occur when



3 more than fifty percent (50%) of an existing capital asset or capital stock or voting



4 rights of a corporation is purchased, transferred, leased, or acquired by comparable



5 arrangement by one (1) person from another person;



6 (32) "To batch" means to review in the same review cycle and, if applicable, give



7 comparative consideration to all filed applications pertaining to similar types of



8 services, facilities, or equipment affecting the same health service area;

9 (33) "To establish" means to construct, develop, or initiate a health facility;



10 (34) "To obligate" means to enter any enforceable contract for the construction,



11 acquisition, lease, or financing of a capital asset. A contract shall be considered



12 enforceable when all contingencies and conditions in the contract have been met.



13 An option to purchase or lease which is not binding shall not be considered an



14 enforceable contract; and



15 (35) "To offer" means, when used in connection with health services, to hold a health



16 facility out as capable of providing, or as having the means of providing, specified



17 health services.



18 Section 52. KRS 216B.085 is amended to read as follows:



19 (1) Any time no later than fifteen (15) days after the date the review commences, any



20 affected person may request a public hearing. Hearings shall be before a person



21 designated by the secretary to serve as administrative law judge[hearing officer].



22 The administrative law judge[hearing officer] shall be authorized to administer



23 oaths, issue subpoenas, subpoenas duces tecum, and all necessary process in the



24 proceedings.



25 (2) If a hearing is requested, the secretary shall set a date, time, and place for a public

26 hearing. Reasonable notice of the hearing shall be given to all affected persons in



27 accordance with administrative regulations promulgated by the cabinet.



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1 (3) At the hearing, any party to the proceedings shall have the right to be represented by



2 counsel, and to present oral or written arguments and evidence relevant to the



3 matter which is the subject of the hearing, and may conduct reasonable cross-



4 examination under oath of persons who make factual allegations relevant to such



5 matters. A full and complete record shall be maintained of the hearing.



6 (4) Any decision of the cabinet to issue or deny a certificate of need shall be based



7 solely on the record established with regard to the matter. All decisions granting,



8 denying, or modifying a certificate of need shall be made by the cabinet in writing.

9 The cabinet shall notify the parties to the proceedings of the decision and the



10 decision shall be final for purposes of judicial appeal unless a request for



11 reconsideration is filed. An approved certificate of need shall be issued forty (40)



12 days after notice of the cabinet's decision unless a request for reconsideration is



13 filed or a judicial appeal is taken and issuance is enjoined by the court.



14 Section 53. KRS 216B.086 is amended to read as follows:



15 (1) The cabinet may revoke a certificate of need, or portion thereof, for failure of the



16 holder of the certificate to implement the project in accordance with timetables and



17 standards for implementation established by administrative regulation of the



18 cabinet; however, for projects involving long-term care beds, the cabinet may



19 revoke any certificate granted which is not implemented within twenty-four (24)



20 months or within any six (6) month reporting interval during which there is not



21 satisfactory progress in meeting the project timetable and shall revoke any



22 certificate granted which is not implemented within thirty-six (36) months except



23 for those projects specified as an exception pursuant to Executive Order 96-129 in



24 which case those projects shall be implemented according to the intervals and



25 timetable set forth in this section, as of the effective date of Medicaid funding in the

26 biennial budget for those projects. The administrative regulation for projects



27 involving long-term care beds shall be based on project completion in twenty-four



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1 (24) months and shall specify criteria for measuring implementation of project



2 objectives at six (6) month reporting intervals. If, at any six (6) month reporting



3 period, the certificate holder is able to show good cause as to why a project failed to



4 meet its timetables, an extension of six (6) months may be granted to meet that



5 particular timetable. The burden of proof shall be on the certificate holder. An



6 extension may be granted beyond a total of thirty-six (36) months, only if the



7 applicant requests that the cabinet grant an additional six (6) month extension



8 beyond the initial thirty-six (36) month completion period and shows good cause.

9 For purposes of this section, there shall be deemed to be "good cause" if the project



10 can be completed within the additional six (6) month period. In no case shall an



11 extension be granted beyond a total of forty-two (42) months. The holder of the



12 certificate of need shall file with the cabinet the name and business address of all



13 owners, investors, and stockholders in the project whose ownership interest is



14 greater than ten percent (10%). All reports submitted by the certificate holder under



15 this subsection shall be considered a public record in accordance with the Kentucky



16 Open Records Law, KRS 61.870 to 61.884.



17 (2) The cabinet shall give notice to the holder of the certificate of its initial decision to



18 revoke the certificate of need or portion thereof. The cabinet's initial decision to



19 revoke a certificate of need or portion thereof shall become final after thirty (30)



20 days unless a hearing is requested. The secretary shall give notice to the holder of



21 the certificate of a decision which has become final under the provisions of this



22 subsection.



23 (3) The holder of the certificate of need to be revoked may request in writing a public



24 hearing in respect to an initial decision by the cabinet to revoke a certificate of need



25 within thirty (30) days of the date of notice of the initial decision. Failure to request

26 a hearing shall constitute a waiver of any right to reconsideration or judicial appeal



27 of a final cabinet decision to revoke a certificate of need.



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1 (4) The hearing shall be before a person designated by the secretary to be the



2 administrative law judge[hearing officer]. The hearing shall be no later than thirty



3 (30) days after the request for the hearing is filed.



4 (5) If a hearing is requested, the secretary shall set a date, time, and place for a public



5 hearing. Reasonable notice of the hearing shall be given to all affected persons in



6 accordance with administrative regulations promulgated by the cabinet.



7 (6) At the hearing, any party to the proceedings shall have the right to be represented by



8 counsel and to present oral or written arguments and evidence relevant to the

9 revocation of the certificate of need and may conduct reasonable cross-examination



10 under oath of persons who testify. A full and complete record shall be maintained of



11 the hearing, and all testimony shall be recorded but not be transcribed unless the



12 cabinet's final decision is appealed pursuant to this chapter.



13 (7) After the issuance of an initial decision to revoke a certificate of need and before a



14 final decision is made, no person shall have ex parte contacts with employees of the



15 cabinet regarding the revocation. If an ex parte contact occurs, it shall be promptly



16 made a part of the record.



17 (8) If a hearing is requested after notice of the cabinet's initial decision to revoke a



18 certificate of need, the cabinet shall make a final decision within thirty (30) days



19 after the hearing. Any final decision revoking a certificate of need shall be made by



20 the cabinet in writing. The cabinet shall notify the parties to the proceedings of the



21 final decision.



22 (9) Any final decision of the cabinet to revoke a certificate of need shall be based solely



23 on the record established with regard to the revocation.



24 (10) Except as provided in subsection (3) of this section, reconsideration pursuant to



25 KRS 216B.090 or judicial appeal pursuant to KRS 216B.115 shall be available with

26 regard to a final decision of the cabinet to revoke a certificate of need.



27 Section 54. KRS 216B.105 is amended to read as follows:



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1 (1) Unless otherwise provided in this chapter, no person shall operate any health facility



2 in this Commonwealth without first obtaining a license issued by the cabinet, which



3 license shall specify the kind or kinds of health services the facility is authorized to



4 provide. A license shall not be transferable and shall be issued for a specific



5 location and, if specified, a designated geographical area.



6 (2) The cabinet may deny, revoke, modify, or suspend a license in any case in which it



7 finds that there has been a substantial failure to comply with the provisions of this



8 chapter or the administrative regulations promulgated hereunder. The denial,

9 revocation, modification, or suspension shall be effected by mailing to the applicant



10 or licensee, by certified mail, a notice setting forth the particular reasons for the



11 action. The denial, revocation, modification, or suspension shall become final and



12 conclusive thirty (30) days after notice is given, unless the applicant or licensee,



13 within the thirty (30) day period, shall file a request in writing for a hearing with the



14 cabinet.



15 (3) The hearing shall be before a person designated to serve as administrative law



16 judge[hearing officer] by the secretary.



17 (4) Within thirty (30) days from the conclusion of the hearing, the findings and



18 recommendations of the administrative law judge[hearing officer] shall be



19 transmitted to the cabinet, with a synopsis of the evidence contained in the record



20 and a statement of the basis of the administrative law judge's[hearing officer's]



21 findings. The applicant or licensee shall be entitled to be represented at the hearing



22 in person or by counsel, or both, and shall be entitled to introduce testimony by



23 witnesses or, if the cabinet so permits, by depositions. A full and complete record



24 shall be kept of all hearings, and all testimony shall be reported but need not be



25 transcribed unless the decision is appealed pursuant to this chapter. The cabinet may

26 adopt the administrative law judge's[hearing officer's] findings and



27 recommendations or prepare written findings of fact and state the basis for its



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1 decision which shall become part of the record of the proceedings.



2 (5) All decisions revoking, suspending, modifying or denying licenses shall be made by



3 the cabinet in writing. The cabinet shall notify the applicant or licensee of the



4 decision.



5 (6) The decision of the cabinet shall be final for purposes of judicial appeal upon notice



6 of the cabinet's decision.



7 Section 55. KRS 222.231 is amended to read as follows:



8 (1) The cabinet shall issue for a term of one (1) year, and may renew for like terms, a

9 license, subject to revocation by it for cause, to any persons, other than an alcohol



10 and other drug abuse program that has been issued a license by the cabinet entitled



11 "Chemical Dependency Treatment Services" pursuant to KRS 216B.105 or a



12 department, agency, or institution of the federal government, deemed by it to be



13 responsible and suitable to establish and maintain a program and to meet applicable



14 licensure standards and requirements.



15 (2) The cabinet shall promulgate administrative regulations pursuant to KRS Chapter



16 13A establishing requirements and standards for licensing agencies and approving



17 programs. The requirements and standards shall include:



18 (a) The health and safety standards to be met by a facility housing a program;



19 (b) Patient care standards and minimum operating, training, and maintenance of



20 patient records standards;



21 (c) Licensing fees, application, renewal and revocation procedures, and the



22 procedures for evaluation of the alcohol and other drug abuse programs; and



23 (d) Classification of alcohol and other drug abuse programs according to type,



24 range of services, and level of care provided.



25 (3) The cabinet may establish different requirements and standards for different kinds

26 of programs, and may impose stricter requirements and standards in contracts with



27 agencies made pursuant to KRS 222.221.



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1 (4) Each agency shall be individually licensed or approved.



2 (5) Each agency shall file with the cabinet from time to time, the data, statistics,



3 schedules, or information the cabinet may reasonably require for the purposes of



4 this section.



5 (6) The cabinet shall have authority to deny, revoke, modify, or suspend a license in



6 any case in which it finds that there has been a substantial failure to comply with the



7 provisions of this chapter or the administrative regulations promulgated thereunder.



8 The denial, revocation, modification, or suspension shall be effected by mailing to

9 the applicant or licensee, by certified mail, a notice setting forth the particular



10 reasons for the action. The denial, revocation, modification, or suspension shall



11 become final and conclusive thirty (30) days after notice is given, unless the



12 applicant or licensee, within this thirty (30) day period, shall file a request in writing



13 for a hearing before the cabinet.



14 (7) The cabinet, after holding a hearing conducted by an administrative law judge[a



15 hearing officer] appointed by the secretary and conducted in accordance with KRS



16 Chapter 13B, may refuse to grant, suspend, revoke, limit, or restrict the applicability



17 of or refuse to renew any agency license or approval of programs for any failure to



18 meet the requirements of its administrative regulations or standards concerning a



19 licensed agency and its program. A petition for judicial review shall be made to the



20 Franklin Circuit Court in accordance with KRS Chapter 13B.



21 (8) No person, excepting an alcohol and other drug abuse program that has been issued



22 a license by the cabinet entitled "Chemical Dependency Treatment Services"



23 pursuant to KRS 216B.105 or a department, agency, or institution of the federal



24 government, shall operate a program without a license pursuant to this section.



25 (9) Each program operated by a licensed agency shall be subject to visitation and

26 inspection by the cabinet and the cabinet shall inspect each agency prior to granting



27 or renewing a license. The cabinet may examine the books and accounts of any



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1 program if it deems the examination necessary for the purposes of this section.



2 (10) The director may require agencies which contract with the Commonwealth pursuant



3 to KRS 222.221 to admit as an inpatient or outpatient any person to be afforded



4 treatment pursuant to this chapter, subject to service and bed availability and



5 medical necessity.



6 (11) The cabinet shall promulgate administrative regulations pursuant to KRS Chapter



7 13A governing the extent to which programs may be required to treat any person on



8 an inpatient or outpatient basis pursuant to this chapter, except that no licensed

9 hospital with an emergency service shall refuse any person suffering from acute



10 alcohol or other drug intoxication or severe withdrawal syndrome from emergency



11 medical care.



12 (12) All narcotic treatment programs shall be licensed under this section prior to



13 operation. The cabinet shall promulgate administrative regulations pursuant to KRS



14 Chapter 13A to establish additional standards of operation for narcotic treatment



15 programs. The administrative regulations shall include minimum requirements in



16 the following areas:



17 (a) Compliance with relevant local ordinances and zoning requirements;



18 (b) Submission of a plan of operation, including memoranda of agreement which



19 reflect supportive services from local hospitals, law enforcement agencies,



20 correctional facilities, community mental health and mental retardation



21 agencies, and other alcohol and drug abuse services in the community;



22 (c) Criminal records checks for employees of the narcotic treatment program.



23 Narcotic treatment programs shall not employ any person convicted of a crime



24 involving a controlled substance as defined in KRS Chapter 218A;



25 (d) Conditions under which clients are permitted to take home doses of

26 medications;



27 (e) Urine screening requirements;



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1 (f) Quality assurance procedures;



2 (g) Program sponsor requirements;



3 (h) Qualifications for the medical director for a narcotic treatment program, who



4 at a minimum shall:



5 1. Be a licensed physician pursuant to KRS Chapter 311 and function



6 autonomously within the narcotic treatment program; and



7 2. Be a board eligible psychiatrist licensed to practice in Kentucky and



8 have three (3) years' documented experience in the provision of services

9 to persons who are addicted to alcohol or other drugs; or



10 3. Be a physician licensed pursuant to KRS Chapter 311 and certified as an



11 addictionologist by the American Society of Addiction Medicine.



12 (i) Security and control of narcotics and medications;



13 (j) Program admissions standards;



14 (k) Treatment protocols;



15 (l) Treatment compliance requirements for program clients;



16 (m) Rights of clients; and



17 (n) Monitoring of narcotic treatment programs by the cabinet.



18 Section 56. KRS 224.10-440 is amended to read as follows:



19 (1) All hearings under this chapter shall be held before a qualified administrative law



20 judge[hearing officer], who may be a full-time employee of the cabinet[, serve by



21 contract,] or be paid on a per diem basis in the discretion of the cabinet. After the



22 conclusion of the hearing, the administrative law judge[hearing officer] shall make



23 to the secretary a report and recommended order which shall contain a finding of



24 fact and a conclusion of law. The administrative law judge[hearing officer] shall



25 serve a copy of his or her report and recommended order upon all parties of record

26 to the proceeding, and they shall be granted the right to file within fourteen (14)



27 days of receipt exceptions thereto. The secretary shall consider the report,



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1 exceptions, and recommended order and decide the case within ninety (90) days.



2 The secretary, for good cause, may take no more than an additional forty-five (45)



3 days provided the secretary gives the parties written notice stating the good cause



4 within the original ninety (90) day period. The secretary's decision shall be served



5 by mail upon all parties and shall be a final order of the cabinet.



6 (2) Any party to a hearing under this subsection may be represented by counsel, may



7 make oral or written argument, offer testimony, cross-examine witnesses, or take



8 any combination of these actions. The secretary may promulgate administrative

9 regulations to require that direct testimony be filed in writing prior to the hearing,



10 either for all or some categories of cases. The record of the hearing shall be open to



11 public inspection, and copies thereof shall be made available to any person upon



12 payment of the actual cost of reproducing the original except as provided in KRS



13 224.10-210.



14 (3) Unless all parties to the case agree in writing otherwise, the administrative law



15 judge[hearing officer] shall conduct the hearing, complete the report and



16 recommended order, and transmit the report and recommended order to the



17 secretary no later than one hundred eighty (180) days after service of the written



18 notice described in KRS 224.10-420(1) upon all named parties or service of the



19 petition and demand for hearing pursuant to KRS 224.10-420(2) upon all named



20 parties, whichever is applicable. Upon written request of the administrative law



21 judge[hearing officer] or any party to the hearing, the secretary or secretary's



22 designee, for good cause shown, may extend this deadline for a period not to exceed



23 ninety (90) days. The secretary shall grant no more than two (2) ninety (90) day



24 extensions under this subsection, unless the secretary and all parties to the case



25 agree to the contrary in writing.

26 (4) The secretary may promulgate administrative regulations to establish procedures



27 and deadlines for submitting a written request for an extension pursuant to



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1 subsection (3) of this section. The secretary shall require that any written request for



2 extension include a proposed date certain by which the hearing or report and



3 recommended order, or both, will be completed.



4 (5) Upon the failure of the administrative law judge[hearing officer] to make a report



5 and recommended order to the secretary within the deadline set forth in subsection



6 (3) of this section, including any extensions granted by the secretary pursuant to



7 subsections (3) and (4) of this section, the secretary shall remove the case from the



8 administrative law judge[hearing officer]. The secretary shall then:

9 (a) Decide the case within ninety (90) days after allowing the parties to



10 supplement the record, if necessary; or



11 (b) Transfer the case to another qualified administrative law judge[hearing



12 officer] for completion of the hearing or report and recommended order, or



13 both, by a new deadline set by the secretary. The secretary shall make no more



14 than one (1) transfer pursuant to this subsection.



15 (6) All hearings conducted pursuant to this chapter shall be open to the public except as



16 provided in KRS 224.10-210.



17 Section 57. KRS 224.18-200 is amended to read as follows:



18 The Interstate Compact on Air Pollution is enacted into law and entered into with all



19 other jurisdictions legally joining therein in the form substantially as follows:



20 INTERSTATE COMPACT ON AIR POLLUTION



21 ARTICLE I



22 The party states to this compact hereby provide for the control of the interstate



23 movement of air pollutants through the establishment of an interstate agency with powers



24 to prevent, abate, and control interstate air pollution.



25 Each of the party states pledges to the other faithful cooperation in the control of air

26 pollution which originates in one state and is injurious to human health or welfare, animal



27 or plant life, or property, or which interferes with the enjoyment of life or property, in the



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1 other state.



2 The party states recognize that no single standard for outdoor atmosphere is



3 applicable to all areas within the two party states due to such variables as population



4 densities, topographic and climatic characteristics, and existing or projected land use and



5 economic development. The guiding principle of this compact is that air pollution



6 originating within a party state shall not be injurious to human health or welfare, animal



7 or plant life, or property, or interfere with the enjoyment of life or property in the other



8 party state.

9 ARTICLE II



10 As used in this compact "air pollution" means the discharge into the air by the act of



11 man of substances (liquid, solid, gaseous, organic or inorganic) in a locality, manner and



12 amount as to be injurious to human health or welfare, animal or plant life, or property, or



13 which would interfere with the enjoyment of life or property.



14 ARTICLE III



15 The party states hereby create the Interstate Air Pollution Control Commission,



16 hereafter called "the commission."



17 The commission shall consist of five commissioners from each party state, each of



18 whom shall be a citizen of the state he represents, and one commissioner representing the



19 United States Government who shall be appointed by the President of the United States,



20 or in such other manner as may be provided by the Congress. The commissioners from



21 each party state shall be chosen by the governor of such state in accordance with the laws



22 of such state, as follows:



23 Two of the members from each state shall be chosen from appropriate state



24 agencies, one of whom is the officer responsible for air pollution control, and one of



25 whom is the director of state health department. Three other members shall be chosen,

26 one of whom is experienced in the field of municipal government, one of whom is



27 experienced in the field of industrial activities, and one of whom represents the public.



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1 Except for the commissioner representing the United States Government and



2 commissioners who shall be appointed by virtue of the offices which they hold and who



3 may be commissioners during their continuance in office, the term of each commissioner



4 shall be four years. However, the commissioner experienced in the field of municipal



5 government, the commissioner experienced in the field of industrial activities, and the



6 commissioner appointed to represent the public shall be appointed, one for an initial term



7 of one year, one for an initial term of two years, and one for an initial term of three years.



8 As the term of each such initial appointee expires, the successor to fill the vacancy

9 created by such expired term shall be appointed for a term of four years.



10 Vacancies on the commission shall be filled for the unexpired term in the same



11 manner as appointments to full terms.



12 Each commissioner shall be entitled to one vote in the commission. No action of the



13 commission shall be binding unless taken at a meeting in which a majority of the



14 commissioners from each party state are present and unless a majority of those present at



15 the meeting from each party state concur, but any action not binding for such a reason



16 may be ratified within thirty days by the concurrence of a majority of the commissioners



17 of each party state. In the absence of any commissioner, his vote may be cast by another



18 commissioner of his state if such commissioner casting the vote shall have a written



19 proxy in such form as may be required by the commission.



20 The commission may sue and be sued, and shall have a seal.



21 The commission shall elect annually, from among its members, a chairman and vice



22 chairman. The commission shall appoint an executive director who shall act as secretary,



23 and who, together with such other commission personnel as the commission may



24 determine, shall be bonded in such amount or amounts as the commission may require.



25 Notwithstanding the civil service, personnel, or other merit systems laws of any of

26 the party states, the commission shall appoint, remove or discharge, and fix the



27 compensation of personnel necessary for the performance of the commission's functions.



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1 To the extent practicable, terms and conditions of employment for members of the staff of



2 the commission shall be similar to those pertaining to comparable employees of the



3 individual party states.



4 The commission may establish and maintain, independently or in conjunction with



5 one or more of the party states, a suitable retirement system for its employees. Employees



6 of the commission shall be eligible for social security coverage in respect to old-age and



7 survivors insurance, if the commission takes the steps necessary pursuant to federal law



8 to participate in such program of insurance as a governmental agency or unit. The

9 commission may establish and maintain or participate in additional programs of employee



10 benefits appropriate to afford employees of the commission terms and conditions of



11 employment similar to those enjoyed by employees of the party states generally.



12 The commission may accept, or contract for the services of personnel and other



13 services or materials from any state, the United States or any subdivision or agency of



14 either, from any interstate agency, or from any institution, person, firm, or corporation.



15 The commission may accept for any of its purposes and functions under this



16 compact any and all donations, and grants of money, equipment, supplies, materials, and



17 services conditional or otherwise, from the United States, or any agency thereof, from any



18 state or any subdivision or agency thereof, or from any institution, person, firm, or



19 corporation, and may receive, utilize, and dispose of the same. The identity of any donor,



20 the amount and character of any assistance, and the conditions, if any, attached thereto



21 shall be set forth in the annual report of the commission.



22 The commission may establish and maintain the facilities necessary for the



23 transacting of its business. The commission may acquire, hold, and convey real and



24 personal property and any interest therein.



25 The commission may formulate and adopt rules and regulations and perform any act

26 which it finds necessary to carry out the provisions of this compact, and may amend such



27 rules and regulations. All such rules and regulations shall be filed in the office of the



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1 commission for public inspection and copies of such rules and regulations shall be filed



2 in the office in each party state in which rules and regulations of state agencies are filed



3 and shall thereafter be made available to interested persons upon request.



4 The commission annually shall make to the governor and legislature of each party



5 state a report covering the activities of the commission for the preceding year, and



6 embodying recommendations adopted by the commission. The commission may issue



7 such additional reports as it may deem desirable. These reports shall be available for



8 public examination.

9 The commission shall have the authority to collect and disseminate information



10 relating to its functions under, and the purpose of, this compact.



11 ARTICLE IV



12 The commission, may, whenever it finds air pollution which originates in one of the



13 party states and has an adverse effect in the other party state, make a report



14 recommending measures for the prevention, abatement, or control of the air pollution.



15 Copies of the report shall be furnished to all existing state and local air pollution control



16 agencies with jurisdiction over the sources of air pollution identified in the report. In



17 preparing any report, the commission may confer with any appropriate national, regional,



18 or local planning body, and any governmental agency authorized to deal with matters



19 relating to air pollution problems and may conduct such hearings and investigations as it



20 may deem appropriate. The commission may consult with and advise the states and local



21 governments, corporations, persons, or other entities with regard to the adoption of



22 programs and the installation of equipment and works for the prevention, abatement, or



23 control of air pollution. For the enforcement of this compact the commission may also



24 establish standards consistent with the provisions of this compact and any standards



25 which may be adopted by the party states.

26 Before any report of the commission which specifically identifies a particular



27 industrial or other installation, structure, or facility as a source of air pollution becomes



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1 final, the commission shall give the owner or operator of the installation, structure, or



2 facility notice by certified mail of the anticipated adoption of such report and shall afford



3 the owner or operator of the installation, structure, or facility not less than ten days after



4 the mailing of such notice to file with the commission its written objections thereto. If no



5 such objections are filed with the commission within such specified period, the report



6 shall become final. If the objections are filed with the commission within the specified



7 period, the commission shall afford the owner or operator not less than ten days from its



8 receipt of objections to discuss with the commission the findings, conclusions, and

9 recommendations of the report before it is finally adopted by the commission.



10 Within a reasonable time after the commission furnishes a report to the appropriate



11 existing state and local air pollution control agencies pursuant to this article and, if the



12 recommendations made in such report for the prevention, abatement, or control of air



13 pollution from a specific source or sources have not been implemented, or if the



14 appropriate state or local air pollution control agencies have not taken sufficient action to



15 prevent, abate, or control the air pollution, the commission may, after a duly conducted



16 and constituted hearing, on due notice, issue an order upon any municipality, corporation,



17 person, or other entity causing or contributing to interstate air pollution. At any such



18 hearing evidence may be received and a finding made on whether, in fact, interstate air



19 pollution exists and on the sources of such pollution. Any order may prescribe a timetable



20 for the abatement of control of the air pollution involved. Any such order shall become



21 final and binding unless a petition for review of the same shall be filed and prosecuted



22 pursuant to the provisions of Article V of this compact.



23 In a party state, any court of general jurisdiction in any county in which the air



24 pollution originates or any United States district court for the district in which the



25 pollution originates shall entertain and determine any action or proceeding brought by the

26 commission to enforce an order against any municipality, corporation, person, or other



27 entity domiciled or located within such state and whose discharge of air pollution takes



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1 place within or adjoining such state, or against any employee, department, or subdivision



2 of such municipality, corporation, person or other entity, and shall entertain and



3 determine any petition for review pursuant to the provisions of Article V of this compact.



4 ARTICLE V



5 All hearings held by the commission shall be open to the public. At any hearing



6 held pursuant to Article IV of this compact the party states, any agencies thereof, and any



7 affected person, corporation, municipality, or other entity shall be entitled to appear in



8 person or by representative, with or without counsel, and may make oral or written

9 argument, offer testimony, or take any combination of such actions. All testimony taken



10 before the commission shall be under oath and recorded in a written transcript. The



11 transcript so recorded shall be made available to any member of the public or to any



12 participant in such hearing upon payment of reasonable charges as fixed by the



13 commission. No information relating to secret processes or methods of manufacture or



14 production shall be disclosed at any public hearing or otherwise and all such information



15 shall be kept confidential.



16 All hearings shall be had before one or more members of the commission, or before



17 an officer or employee of the commission expressly designated to act as an



18 administrative law judge[a hearing officer].



19 Any party state or person aggrieved by any order made by the commission shall be



20 entitled to a judicial review thereof. Such review may be had by filing a verified petition



21 in any of the appropriate courts referred to in Article IV, setting out such order and



22 alleging specifically that said order is:



23 (a) Arbitrary, capricious, an abuse of discretion, or otherwise not in accordance



24 with law; or



25 (b) Contrary to constitutional right, power, privilege, or immunity; or

26 (c) In excess of authority or jurisdiction conferred by this compact or statutes in



27 implementation hereof; or



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1 (d) Without observance of procedure required by law; or



2 (e) Not within the purposes of this compact; or



3 (f) Unsupported by the weight of the evidence.



4 The petition for a review shall be filed within thirty-five days after receipt of written



5 notice that the order has been issued. Written notice of the filing of a petition for review



6 and a copy of said petition shall be personally served upon the commission. Any party or



7 person filing a petition for review shall, within fifteen days thereafter, secure from the



8 commission a certified copy of the transcript of any hearing held in connection with the

9 issuance of the order, review of which is sought, and shall file the same with the clerk of



10 the court in which the action or proceeding for review is pending. An extension of time in



11 which to file a transcript shall be granted by said court in which such action or proceeding



12 for review is pending for good cause shown. Inability to obtain a transcript within the



13 specified time shall be good cause. Failure to file a transcript within the period of fifteen



14 days, or to secure an extension of time therefor, shall be cause for the dismissal of the



15 petition for review by the court or on petition of any party of record to the original action



16 or proceeding. Where more than one person may be aggrieved by the order, only one



17 proceeding for review may be had and the court in which a petition for review is first



18 properly filed shall have jurisdiction.



19 The court may, for good cause shown, admit and consider additional evidence



20 bearing upon the issue or issues before it.



21 No review of a commission order shall be had except in accordance with the



22 provisions of this compact.



23 ARTICLE VI



24 The commission may establish one or more advisory and technical committees



25 composed of such as the following: private citizens, expert and lay personnel,

26 representatives of industry, labor, commerce, agriculture, civic associations, and officials



27 of local, state, and federal government, as it may determine, and may cooperate with and



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1 use the services of any such committee and the organizations which they represent in



2 furthering any of its activities under this compact.



3 ARTICLE VII



4 Nothing in this compact shall be construed to:



5 (a) Limit or otherwise affect the powers of either party state or any of their



6 subdivisions to enact and enforce laws or ordinances for the prevention, abatement, or



7 control of air pollution within their respective borders.



8 (b) Prevent or restrict either party state or any subdivision thereof in requiring or

9 prescribing measures of air pollution prevention, abatement, or control in addition to



10 those which may be required by either party state or the commission acting pursuant to



11 this compact.



12 ARTICLE VIII



13 The commission shall submit to the governor or designated officer or officers of



14 each party state a budget of its estimated expenditures for such period as may be required



15 by the laws of that state for presentation to the legislature thereof.



16 Each of the commission's budgets of estimated expenditures shall contain specific



17 recommendations of the amount or amounts to be appropriated by each of the party states.



18 Aside from such support as may be available to the commission pursuant to Article III,



19 the cost of operating and maintaining the commission shall be borne equally by the party



20 states.



21 The commission may meet any of its obligations in whole or in part with funds



22 available to it under Article III of this compact, provided that the commission takes



23 specific action setting aside such funds prior to the incurring of any obligation to be met



24 in whole or in part in this manner. Except where the commission makes use of funds



25 available to it under Article III, the commission shall not incur any obligations prior to the

26 allotment of funds by the party states adequate to meet the same.



27 The expenses and any other costs for each member of the commission shall be met



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1 by the commission in accordance with such standards and procedures as it may establish



2 in its rules and regulations.



3 The commission shall keep accurate accounts of all receipts and disbursements. The



4 receipts and disbursements of the commission shall be subject to the audit and accounting



5 procedures established under its rules and regulations. However, all receipts and



6 disbursements of funds handled by the commission shall be audited yearly by a certified



7 or licensed public accountant and the report of the audit shall be included in and become



8 a part of the annual report of the commission.

9 The accounts of the commission shall be open at any reasonable time for inspection



10 by duly constituted officers of the party states and by any persons authorized by the



11 commission.



12 Nothing contained herein shall be construed to prevent commission compliance



13 with laws relating to audit or inspection of accounts by or on behalf of any government



14 contributing to the support of the commission.



15 ARTICLE IX



16 (1) This compact shall become effective when enacted into law by any state in



17 addition to the Commonwealth of Kentucky. Thereafter, this compact shall become



18 effective as to any other state upon its enactment thereby.



19 (2) Any party state may withdraw from this compact by enacting a statute



20 repealing same, but no withdrawal shall take effect until one year after the governor of the



21 withdrawing state has given notice in writing of the withdrawal to the governor of all



22 other party states. No withdrawal shall affect any liability already incurred by or



23 chargeable to a party state prior to the time of the withdrawal.



24 (3) Any order of the commission issued prior to the termination of this compact



25 shall be enforceable thereafter by either party state in the same manner as though this

26 compact were still in force except that any appropriate office or agency of the enforcing



27 party state may act in the place and stead of the commission.



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1 ARTICLE X



2 The provisions of this compact shall be reasonably and liberally construed. The



3 provisions of this compact shall be severable and if any phrase, clause, sentence, or



4 provision is declared to be contrary to the constitution of either state or of the United



5 States, or the applicability thereof to any government agency, person, or circumstance is



6 held invalid, the validity of the remainder of this compact and the applicability thereof to



7 any government, agency, person, or circumstance shall not be affected.



8 Section 58. KRS 224.71-135 is amended to read as follows:

9 For purposes of KRS 224.71-100 to 224.71-140, any documents relating to agriculture



10 operations' agriculture water quality plans, conservation plans, or forest stewardship



11 management plans, submitted to a local conservation district office or a state agency shall



12 be confidential, and their disclosure to anyone other than a state or federal official is



13 prohibited. The privilege of confidentiality given under this section does not apply to an



14 agriculture operation's application for financial assistance from the soil erosion and water



15 quality cost share program. The confidentiality given under this section shall not preclude



16 disclosure of an agriculture operation's agriculture water quality plan to the Agriculture



17 Water Quality Authority pursuant to a request by the authority for the purpose of the



18 authority carrying out its statutory duties. In a civil or administrative proceeding, after a



19 private review consistent with the Kentucky Rules of Civil Procedure, all documents



20 claimed confidential under this section shall be disclosed if the court or administrative



21 law judge[hearing officer] determines that the documents claimed confidential show



22 evidence of noncompliance with this chapter or with applicable federal, state, or local



23 law. The party asserting the privilege of confidentiality shall have the burden of showing



24 that the privilege is properly asserted. If any person engaged in an agriculture operation is



25 deemed a "bad actor" under KRS 224.71-130(2), the privilege of confidentiality given

26 under this section to documents relating to the bad actor's agriculture operation shall be



27 lost. The confidentiality granted by this section shall not prohibit disclosure of statistical



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1 information not descriptive of any identifiable agriculture operation or person. Nothing in



2 this section shall prohibit disclosure of agency reports, monitoring or sampling data, and



3 other information contained in state or local conservation district files relating to water



4 quality compliance and investigations or notices under KRS 224.71-130.



5 Section 59. KRS 230.320 is amended to read as follows:



6 (1) Every license granted under this chapter is subject to denial, revocation, or



7 suspension by the authority in any case where it has reason to believe that any



8 provision of this chapter, administrative regulation, or condition of the authority

9 affecting it has not been complied with or has been broken or violated. The



10 authority, in the interest of honesty and integrity of horse racing, may promulgate



11 administrative regulations under which any license may be denied, suspended, or



12 revoked.



13 (2) Following an informal hearing by the stewards, any licensee alleged to have



14 committed a violation under subsection (1) of this section may request a stay of



15 imposition of the stewards' decision. Pending appeal, a hearing on the request for



16 stay shall be held within forty-eight (48) hours of the receipt of the request for a stay



17 by the authority. If the authority is not able to hold a hearing within forty-eight (48)



18 hours, the stay shall be automatically granted. It shall be the policy of the authority



19 to grant stays, unless:



20 (a) A licensee is alleged to have committed a flagrant violation of the duly-



21 promulgated administrative regulations of racing which presents a clear and



22 present danger to the immediate integrity of racing; and



23 (b) It is impossible for the authority to secure necessary scientific evidence or



24 indispensable witnesses within forty-eight (48) hours, then the authority or its



25 designated administrative law judge[hearing officer] may refuse a request for

26 the stay of any penalty imposed, as long as a hearing is held no later than



27 thirty (30) days from the initial stewards' determination of a violation.



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1 (3) If any license is denied, suspended, or revoked after an informal hearing by the



2 stewards or by the authority acting on a complaint or by its own volition, the



3 authority shall grant the applicant or licensee the right to appeal the decision, and



4 upon appeal, an administrative hearing shall be conducted in accordance with KRS



5 Chapter 13B.



6 Section 60. KRS 237.110 is amended to read as follows:



7 (1) The Department of State Police is authorized to issue and renew licenses to carry



8 concealed firearms or other deadly weapons, or a combination thereof, to persons

9 qualified as provided in this section.



10 (2) An original or renewal license issued pursuant to this section shall:



11 (a) Be valid throughout the Commonwealth and, except as provided in this



12 section or other specific section of the Kentucky Revised Statutes or federal



13 law, permit the holder of the license to carry firearms, ammunition, or other



14 deadly weapons, or a combination thereof, at any location in the



15 Commonwealth;



16 (b) Unless revoked as provided by law, be valid for a period of five (5) years from



17 the date of issuance;



18 (c) Authorize the holder of the license to carry a concealed firearm or other



19 deadly weapon, or a combination thereof, on or about his or her person; and



20 (d) Authorize the holder of the license to carry ammunition for a firearm on or



21 about his or her person.



22 (3) Prior to the issuance of an original or renewal license to carry a concealed deadly



23 weapon, the Department of State Police shall conduct a background check to



24 ascertain whether the applicant is eligible under 18 U.S.C. sec. 922(g) and (n), any



25 other applicable federal law, and state law to purchase, receive, or possess a firearm

26 or ammunition, or both. The background check shall include:



27 (a) A state records check covering the items specified in this subsection, together



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1 with any other requirements of this section; and



2 (b) A federal records check, which shall include a National Instant Criminal



3 Background Check System (NICS) check.



4 (4) The Department of State Police shall issue an original or renewal license if the



5 applicant:



6 (a) Is not prohibited from the purchase, receipt, or possession of firearms,



7 ammunition, or both pursuant to 18 U.S.C. 922(g), 18 U.S.C. 922(n), or



8 applicable state law; and

9 (b) 1. Is a citizen of the United States who is a resident of this Commonwealth



10 and has been a resident for six (6) months or longer immediately



11 preceding the filing of the application; or



12 2. Is a citizen of the United States who is a member of the Armed Forces of



13 the United States who is on active duty, who is at the time of application



14 assigned to a military posting in Kentucky, and who has been assigned



15 to a posting in the Commonwealth for six (6) months or longer



16 immediately preceding the filing of the application; and



17 (c) Is twenty-one (21) years of age or older; and



18 (d) Has not been committed to a state or federal facility for the abuse of a



19 controlled substance, or been convicted of a misdemeanor violation of KRS



20 Chapter 218A or similar laws of any other state relating to controlled



21 substances, within a three (3) year period immediately preceding the date on



22 which the application is submitted; and



23 (e) Does not chronically and habitually use alcoholic beverages as evidenced by



24 the applicant having two (2) or more convictions for violating KRS 189A.010



25 within the three (3) years immediately preceding the date on which the

26 application is submitted, or having been committed as an alcoholic pursuant to



27 KRS Chapter 222 or similar laws of another state within the three (3) year



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1 period immediately preceding the date on which the application is submitted;



2 and



3 (f) Does not owe a child support arrearage which equals or exceeds the



4 cumulative amount which would be owed after one (1) year of nonpayment, if



5 the Department of State Police has been notified of the arrearage by the



6 Cabinet for Health and Family Services; and



7 (g) Has complied with any subpoena or warrant relating to child support or



8 paternity proceedings. If the Department of State Police has not been notified

9 by the Cabinet for Health and Family Services that the applicant has failed to



10 meet this requirement, the Department of State Police shall assume that



11 paternity and child support proceedings are not an issue; and



12 (h) Has not been convicted of a violation of KRS 508.030 or 508.080 within the



13 three (3) years immediately preceding the date on which the application is



14 submitted. The commissioner of the Department of State Police may waive



15 this requirement upon good cause shown and a determination that the



16 applicant is not a danger and that a waiver would not violate federal law; and



17 (i) Demonstrates competence with a firearm by successful completion of a



18 firearms safety course offered or approved by the Department of Criminal



19 Justice Training. The firearms safety course shall:



20 1. Be not more than eight (8) hours in length;



21 2. Include instruction on handguns, the safe use of handguns, the care and



22 cleaning of handguns, and handgun marksmanship principles;



23 3. Include actual range firing of a handgun in a safe manner, and the firing



24 of not more than twenty (20) rounds at a full-size silhouette target,



25 during which firing, not less than eleven (11) rounds must hit the

26 silhouette portion of the target; and



27 4. Include information on and a copy of laws relating to possession and



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1 carrying of firearms, as set forth in KRS Chapters 237 and 527, and the



2 laws relating to the use of force, as set forth in KRS Chapter 503.



3 (5) A legible photocopy of the certificate of completion issued by the Department of



4 Criminal Justice Training shall constitute evidence of qualification under subsection



5 (4)(i) of this section.



6 (6) (a) Peace officers who are currently certified as peace officers by the Kentucky



7 Law Enforcement Council pursuant to KRS 15.380 to 15.404 and peace



8 officers who are retired and are members of the Kentucky Employees

9 Retirement System, State Police Retirement System, or County Employees



10 Retirement System or other retirement system operated by or for a city,



11 county, or urban-county in Kentucky shall be deemed to have met the training



12 requirement.



13 (b) Current and retired peace officers of the following federal agencies shall be



14 deemed to have met the training requirement:



15 1. Any peace officer employed by a federal agency specified in KRS



16 61.365;



17 2. Any peace officer employed by a federal civilian law enforcement



18 agency not specified above who has successfully completed the basic



19 law enforcement training course required by that agency;



20 3. Any military peace officer of the United States Army, Navy, Marine



21 Corps, or Air Force, or a reserve component thereof, or of the Army



22 Reserve or Air Force Reserve who has successfully completed the



23 military law enforcement training course required by that branch of the



24 military; and



25 4. Any member of the United States Coast Guard serving in a peace officer

26 role who has successfully completed the law enforcement training



27 course specified by the United States Coast Guard.



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1 (7) The application for a license, or renewal of a license, to carry a concealed deadly



2 weapon shall be obtained from the office of the sheriff in the county in which the



3 person resides. The completed application and all accompanying material plus an



4 application fee or renewal fee, as appropriate, of sixty dollars ($60) shall be



5 presented to the office of the sheriff of the county in which the applicant resides. A



6 full-time or part-time peace officer who is currently certified as a peace officer by



7 the Kentucky Law Enforcement Council who is authorized by his or her employer



8 or government authority to carry a concealed deadly weapon at all times and all

9 locations within the Commonwealth pursuant to KRS 527.020 or a retired peace



10 officer who is a member of the Kentucky Employees Retirement System, State



11 Police Retirement System, County Employees Retirement System, or other



12 retirement system operated by or for a city, county, or urban-county in Kentucky



13 shall be exempt from paying the application or renewal fees. The sheriff shall



14 transmit the application and accompanying material to the Department of State



15 Police within five (5) working days. Twenty dollars ($20) of the application fee



16 shall be retained by the office of the sheriff for official expenses of the office.



17 Twenty dollars ($20) shall be sent to the Department of State Police with the



18 application. Ten dollars ($10) shall be transmitted by the sheriff to the



19 Administrative Office of the Courts to fund background checks for youth leaders,



20 and ten dollars ($10) shall be transmitted to the Administrative Office of the Courts



21 to fund background checks for applicants for concealed weapons. The application



22 shall be completed, under oath, on a form promulgated by the Department of State



23 Police by administrative regulation which shall only include:



24 (a) The name, address, place and date of birth, gender, and Social Security



25 number of the applicant;

26 (b) A statement that, to the best of his knowledge, the applicant is in compliance



27 with criteria contained within subsections (3) and (4) of this section;



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1 (c) A statement that the applicant has been furnished a copy of this section and is



2 knowledgeable about its provisions;



3 (d) A statement that the applicant has been furnished a copy of, has read, and



4 understands KRS Chapter 503 as it pertains to the use of deadly force for self-



5 defense in Kentucky; and



6 (e) A conspicuous warning that the application is executed under oath and that a



7 materially false answer to any question, or the submission of any materially



8 false document by the applicant, subjects the applicant to criminal prosecution

9 under KRS 523.030.



10 (8) The applicant, if a resident of the Commonwealth, shall submit to the sheriff of the



11 applicant's county of residence:



12 (a) A completed application as described in subsection (7) of this section;



13 (b) A recent color photograph of the applicant, as prescribed by administrative



14 regulation; and



15 (c) A photocopy of a certificate or an affidavit or document as described in



16 subsection (5) of this section.



17 (9) The Department of State Police shall, within ninety (90) days after the date of



18 receipt of the items listed in subsection (8) of this section, either:



19 (a) Issue the license; or



20 (b) Deny the application based solely on the grounds that the applicant fails to



21 qualify under the criteria listed in subsection (3) or (4) of this section. If the



22 Department of State Police denies the application, it shall notify the applicant



23 in writing, stating the grounds for denial and informing the applicant of a right



24 to submit, within thirty (30) days, any additional documentation relating to the



25 grounds of denial. Upon receiving any additional documentation, the

26 Department of State Police shall reconsider its decision and inform the



27 applicant within twenty (20) days of the result of the reconsideration. The



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1 applicant shall further be informed of the right to seek de novo review of the



2 denial in the District Court of his place of residence within ninety (90) days



3 from the date of the letter advising the applicant of the denial.



4 (10) The Department of State Police shall maintain an automated listing of license



5 holders and pertinent information, and this information shall be available on-line,



6 upon request, at all times to all Kentucky, federal, and other states' law enforcement



7 agencies. A request for the entire list of licensees, or for all licensees in a



8 geographic area, shall be denied. Only requests relating to a named licensee shall be

9 honored or available on-line. Information on applications for licenses, names and



10 addresses, or other identifying information relating to license holders shall be



11 confidential and shall not be made available except to law enforcement agencies.



12 No request for lists of local or statewide permit holders shall be made to any state or



13 local law enforcement agency, peace officer, or other agency of government other



14 than the Department of State Police, and no state or local law enforcement agency,



15 peace officer, or agency of government, other than the Department of State Police,



16 shall provide any information not entitled to it by law.



17 (11) Within thirty (30) days after the changing of a permanent address, or within thirty



18 (30) days after the loss, theft, or destruction of a license, the licensee shall notify the



19 Department of State Police of the loss, theft, or destruction. Failure to notify the



20 Department of State Police shall constitute a noncriminal violation with a penalty of



21 twenty-five dollars ($25) payable to the clerk of the District Court. No court costs



22 shall be assessed for a violation of this subsection. When a licensee makes



23 application to change his or her residence address or other information on the



24 license, neither the sheriff nor the Department of State Police shall require a



25 surrender of the license until a new license is in the office of the applicable sheriff

26 and available for issuance. Upon the issuance of a new license, the old license shall



27 be destroyed by the sheriff.



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1 (12) If a license is lost, stolen, or destroyed, the license shall be automatically invalid,



2 and the person to whom the same was issued may, upon payment of fifteen dollars



3 ($15) to the Department of State Police, obtain a duplicate, upon furnishing a



4 notarized statement to the Department of State Police that the license has been lost,



5 stolen, or destroyed.



6 (13) (a) The commissioner of the Department of State Police, or his designee in



7 writing, shall revoke the license of any person who becomes permanently



8 ineligible to be issued a license or have a license renewed under the criteria set

9 forth in this section.



10 (b) The commissioner of the Department of State Police, or his designee in



11 writing, shall suspend the license of any person who becomes temporarily



12 ineligible to be issued a license or have a license renewed under the criteria set



13 forth in this section. The license shall remain suspended until the person is



14 again eligible for the issuance or renewal of a license.



15 (c) Upon the suspension or revocation of a license, the commissioner of the



16 Department of State Police, or his designee in writing, shall:



17 1. Order any peace officer to seize the license from the person whose



18 license was suspended or revoked; or



19 2. Direct the person whose license was suspended or revoked to surrender



20 the license to the sheriff of the person's county of residence within two



21 (2) business days of the receipt of the notice.



22 (d) If the person whose license was suspended or revoked desires a hearing on the



23 matter, the person shall surrender the license as provided in paragraph (c)2. of



24 this subsection and petition the commissioner of the Department of State



25 Police to hold a hearing on the issue of suspension or revocation of the

26 license.



27 (e) Upon receipt of the petition, the commissioner of the Department of State



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1 Police shall cause a hearing to be held in accordance with KRS Chapter 13B



2 on the suspension or revocation of the license. If the license has not been



3 surrendered, no hearing shall be scheduled or held.



4 (f) If the administrative law judge[hearing officer] determines that the licensee's



5 license was wrongly suspended or revoked, the administrative law



6 judge[hearing officer] shall order the commissioner of the Department of



7 State Police to return the license and abrogate the suspension or revocation of



8 the license.

9 (g) Any party may appeal a decision pursuant to this subsection to the District



10 Court in the licensee's county of residence in the same manner as for the



11 denial of a license.



12 (h) If the license is not surrendered as ordered, the commissioner of the



13 Department of State Police shall order a peace officer to seize the license and



14 deliver it to the commissioner.



15 (i) Failure to surrender a suspended or revoked license as ordered is a Class A



16 misdemeanor.



17 (j) The provisions of this subsection relating to surrender of a license shall not



18 apply if a court of competent jurisdiction has enjoined its surrender.



19 (k) When a domestic violence order or emergency protective order is issued



20 pursuant to the provisions of KRS Chapter 403 against a person holding a



21 license issued under this section, the holder of the permit shall surrender the



22 license to the court or to the officer serving the order. The officer to whom the



23 license is surrendered shall forthwith transmit the license to the court issuing



24 the order. The license shall be suspended until the order is terminated, or until



25 the judge who issued the order terminates the suspension prior to the

26 termination of the underlying domestic violence order or emergency protective



27 order, in writing and by return of the license, upon proper motion by the



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1 license holder. Subject to the same conditions as above, a peace officer against



2 whom an emergency protective order or domestic violence order has been



3 issued shall not be permitted to carry a concealed deadly weapon when not on



4 duty, the provisions of KRS 527.020 to the contrary notwithstanding.



5 (14) (a) Not less than one hundred twenty (120) days prior to the expiration date of the



6 license, the Department of State Police shall mail to each licensee a written



7 notice of the expiration and a renewal form prescribed by the Department of



8 State Police. The outside of the envelope containing the license renewal notice

9 shall bear only the name and address of the applicant. No other information



10 relating to the applicant shall appear on the outside of the envelope sent to the



11 applicant. The licensee may renew his license on or before the expiration date



12 by filing with the sheriff of his county of residence the renewal form, a



13 notarized affidavit stating that the licensee remains qualified pursuant to the



14 criteria specified in subsections (3) and (4) of this section, and the required



15 renewal fee. The sheriff shall issue to the applicant a receipt for the



16 application for renewal of the license and shall date the receipt.



17 (b) A license which has expired shall be void and shall not be valid for any



18 purpose other than surrender to the sheriff in exchange for a renewal license.



19 (c) The license shall be renewed to a qualified applicant upon receipt of the



20 completed renewal application, records check as specified in subsection (3) of



21 this section, determination that the renewal applicant is not ineligible for a



22 license as specified in subsection (4), and appropriate payment of fees. Upon



23 the issuance of a new license, the old license shall be destroyed by the sheriff.



24 A licensee who fails to file a renewal application on or before its expiration



25 date may renew his license by paying, in addition to the license fees, a late fee

26 of fifteen dollars ($15). No license shall be renewed six (6) months or more



27 after its expiration date, and the license shall be deemed to be permanently



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1 expired six (6) months after its expiration date. A person whose license has



2 permanently expired may reapply for licensure pursuant to subsections (7),



3 (8), and (9) of this section.



4 (15) The licensee shall carry the license at all times the licensee is carrying a concealed



5 firearm or other deadly weapon and shall display the license upon request of a law



6 enforcement officer. Violation of the provisions of this subsection shall constitute a



7 noncriminal violation with a penalty of twenty-five dollars ($25), payable to the



8 clerk of the District Court, but no court costs shall be assessed.

9 (16) Except as provided in KRS 527.020, no license issued pursuant to this section shall



10 authorize any person to carry a concealed firearm into:



11 (a) Any police station or sheriff's office;



12 (b) Any detention facility, prison, or jail;



13 (c) Any courthouse, solely occupied by the Court of Justice courtroom, or court



14 proceeding;



15 (d) Any meeting of the governing body of a county, municipality, or special



16 district; or any meeting of the General Assembly or a committee of the



17 General Assembly, except that nothing in this section shall preclude a member



18 of the body, holding a concealed deadly weapon license, from carrying a



19 concealed deadly weapon at a meeting of the body of which he is a member;



20 (e) Any portion of an establishment licensed to dispense beer or alcoholic



21 beverages for consumption on the premises, which portion of the



22 establishment is primarily devoted to that purpose;



23 (f) Any elementary or secondary school facility without the consent of school



24 authorities as provided in KRS 527.070, any child-caring facility as defined in



25 KRS 199.011, any day-care center as defined in KRS 199.894, or any certified

26 family child-care home as defined in KRS 199.8982, except however, any



27 owner of a certified child-care home may carry a concealed firearm into the



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1 owner's residence used as a certified child-care home;



2 (g) An area of an airport to which access is controlled by the inspection of



3 persons and property; or



4 (h) Any place where the carrying of firearms is prohibited by federal law.



5 (17) The owner, business or commercial lessee, or manager of a private business



6 enterprise, day-care center as defined in KRS 199.894 or certified or licensed family



7 child-care home as defined in KRS 199.8982, or a health-care facility licensed



8 under KRS Chapter 216B, except facilities renting or leasing housing, may prohibit

9 persons holding concealed deadly weapon licenses from carrying concealed deadly



10 weapons on the premises and may prohibit employees, not authorized by the



11 employer, holding concealed deadly weapons licenses from carrying concealed



12 deadly weapons on the property of the employer. If the building or the premises are



13 open to the public, the employer or business enterprise shall post signs on or about



14 the premises if carrying concealed weapons is prohibited. Possession of weapons, or



15 ammunition, or both in a vehicle on the premises shall not be a criminal offense so



16 long as the weapons, or ammunition, or both are not removed from the vehicle or



17 brandished while the vehicle is on the premises. A private but not a public employer



18 may prohibit employees or other persons holding a concealed deadly weapons



19 license from carrying concealed deadly weapons, or ammunition, or both in vehicles



20 owned by the employer, but may not prohibit employees or other persons holding a



21 concealed deadly weapons license from carrying concealed deadly weapons, or



22 ammunition, or both in vehicles owned by the employee, except that the Justice



23 Cabinet may prohibit an employee from carrying any weapons, or ammunition, or



24 both other than the weapons, or ammunition, or both issued or authorized to be used



25 by the employee of the cabinet, in a vehicle while transporting persons under the

26 employee's supervision or jurisdiction. Carrying of a concealed weapon, or



27 ammunition, or both in a location specified in this subsection by a license holder



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1 shall not be a criminal act but may subject the person to denial from the premises or



2 removal from the premises, and, if an employee of an employer, disciplinary



3 measures by the employer.



4 (18) All moneys collected by the Department of State Police pursuant to this section



5 shall be used to administer the provisions of this section and KRS 237.138 to



6 237.142. By March 1 of each year, the Department of State Police and the



7 Administrative Office of the Courts shall submit reports to the Governor, the



8 President of the Senate, and the Speaker of the House of Representatives, indicating

9 the amounts of money collected and the expenditures related to this section, KRS



10 237.138 to 237.142, and KRS 237.115, 244.125, 527.020, and 527.070, and the



11 administration of the provisions of this section, KRS 237.138 to 237.142, and KRS



12 237.115, 244.125, 527.020, and 527.070.



13 (19) The General Assembly finds as a matter of public policy that it is necessary to



14 provide statewide uniform standards for issuing licenses to carry concealed firearms



15 and to occupy the field of regulation of the bearing of concealed firearms to ensure



16 that no person who qualifies under the provisions of this section is denied his rights.



17 The General Assembly does not delegate to the Department of State Police the



18 authority to regulate or restrict the issuing of licenses provided for in this section



19 beyond those provisions contained in this section. This section shall be liberally



20 construed to carry out the constitutional right to bear arms for self-defense.



21 (20) (a) A person who has a valid license issued by another state of the United States



22 to carry a concealed deadly weapon in that state may, subject to provisions of



23 Kentucky law, carry a concealed deadly weapon in Kentucky, and his license



24 shall be considered as valid in Kentucky.



25 (b) The Department of State Police shall, not later than thirty (30) days after July

26 15, 1998, and not less than once every six (6) months thereafter, make written



27 inquiry of the concealed deadly weapon carrying licensing authorities in each



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1 other state as to whether a Kentucky resident may carry a concealed deadly



2 weapon in their state based upon having a valid Kentucky concealed deadly



3 weapon license, or whether a Kentucky resident may apply for a concealed



4 deadly weapon carrying license in that state based upon having a valid



5 Kentucky concealed deadly weapon license. The Department of State Police



6 shall attempt to secure from each other state permission for Kentucky



7 residents who hold a valid Kentucky concealed deadly weapon license to carry



8 concealed deadly weapons in that state, either on the basis of the Kentucky

9 license or on the basis that the Kentucky license is sufficient to permit the



10 issuance of a similar license by the other state. The Department of State Police



11 shall enter into a written reciprocity agreement with the appropriate agency in



12 each state that agrees to permit Kentucky residents to carry concealed deadly



13 weapons in the other state on the basis of a Kentucky-issued concealed deadly



14 weapon license or that will issue a license to carry concealed deadly weapons



15 in the other state based upon a Kentucky concealed deadly weapon license. If



16 a reciprocity agreement is reached, the requirement to recontact the other state



17 each six (6) months shall be eliminated as long as the reciprocity agreement is



18 in force. The information shall be a public record and shall be available to



19 individual requesters free of charge for the first copy and at the normal rate for



20 open records requests for additional copies.



21 (21) By March 1 of each year, the Department of State Police shall submit a statistical



22 report to the Governor, the President of the Senate, and the Speaker of the House of



23 Representatives, indicating the number of licenses issued, revoked, suspended, and



24 denied since the previous report and in total and also the number of licenses



25 currently valid. The report shall also include the number of arrests, convictions, and

26 types of crimes committed since the previous report by individuals licensed to carry



27 concealed weapons.



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1 (22) The following provisions shall apply to concealed deadly weapon training classes



2 conducted by the Department of Criminal Justice Training or any other agency



3 pursuant to this section:



4 (a) No concealed deadly weapon instructor trainer shall have his or her



5 certification as a concealed deadly weapon instructor trainer reduced to that of



6 instructor or revoked except after a hearing conducted pursuant to KRS



7 Chapter 13B in which the instructor is found to have committed an act in



8 violation of the applicable statutes or administrative regulations;

9 (b) No concealed deadly weapon instructor shall have his or her certification as a



10 concealed deadly weapon instructor license suspended or revoked except after



11 a hearing conducted pursuant to KRS Chapter 13B in which the instructor is



12 found to have committed an act in violation of the applicable statutes or



13 administrative regulations;



14 (c) The department shall not require prior notification that an applicant class or



15 instructor class will be conducted by a certified instructor or instructor trainer;



16 (d) Each concealed deadly weapon instructor or instructor trainer who teaches a



17 concealed deadly weapon applicant or concealed deadly weapon instructor



18 class shall supply the Department of Criminal Justice Training with a class



19 roster indicating which students enrolled and successfully completed the class,



20 and which contains the name and address of each student, within five (5)



21 working days of the completion of the class. The information may be sent by



22 mail, facsimile, e-mail, or other method which will result in the receipt of or



23 production of a hard copy of the information. The postmark, facsimile date, or



24 e-mail date shall be considered as the date on which the notice was sent.



25 Concealed deadly weapon class applicant, instructor, and instructor trainer

26 information and records shall be confidential. The department may release to



27 any person or organization the name, address, and telephone number of a



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1 concealed deadly weapon instructor or instructor trainer if that instructor or



2 instructor trainer authorizes the release of the information in writing. The



3 department shall include on any application for an instructor or instructor



4 trainer certification a statement that the applicant either does or does not



5 desire the applicant's name, address, and telephone number to be made public;



6 (e) An instructor trainer who assists in the conduct of a concealed deadly weapon



7 instructor class or concealed deadly weapon applicant class for more than two



8 (2) hours shall be considered as to have taught a class for the purpose of

9 maintaining his or her certification. All class record forms shall include spaces



10 for assistant instructors to sign and certify that they have assisted in the



11 conduct of a concealed deadly weapon instructor or concealed deadly weapon



12 class;



13 (f) An instructor who assists in the conduct of a concealed deadly weapon



14 applicant class for more than two (2) hours shall be considered as to have



15 taught a class for the purpose of maintaining his or her license. All class



16 record forms shall include spaces for assistant instructors to sign and certify



17 that they have assisted in the conduct of a concealed deadly weapon class;



18 (g) If the Department of Criminal Justice Training believes that a firearms



19 instructor trainer or certified firearms instructor has not in fact complied with



20 the requirements for teaching a certified firearms instructor or applicant class



21 by not teaching the class as specified in KRS 237.126, or who has taught an



22 insufficient class as specified in KRS 237.128, the department shall send to



23 each person who has been listed as successfully completing the concealed



24 deadly weapon applicant class or concealed deadly weapon instructor class a



25 verification form on which the time, date, date of range firing if different from

26 the date on which the class was conducted, location, and instructor of the class



27 is listed by the department and which requires the person to answer "yes" or



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1 "no" to specific questions regarding the conduct of the training class. The



2 form shall be completed under oath and shall be returned to the Department of



3 Criminal Justice Training not later than forty-five (45) days after its receipt. A



4 person who fails to complete the form, to sign the form, or to return the form



5 to the Department of Criminal Justice Training within the time frame



6 specified in this section or who, as a result of information on the returned



7 form, is determined by the Department of Criminal Justice Training, following



8 a hearing pursuant to KRS Chapter 13B, to not have received the training

9 required by law shall have his or her concealed deadly weapon license



10 revoked by the Department of State Police, following a hearing conducted by



11 the Department of Criminal Justice Training pursuant to KRS Chapter 13B, at



12 which hearing the person is found to have violated the provisions of this



13 section or who has been found not to have received the training required by



14 law;



15 (h) The department shall annually, not later than December 31 of each year, report



16 to the Legislative Research Commission:



17 1. The number of firearms instructor trainers and certified firearms



18 instructors whose certifications were suspended, revoked, denied, or



19 who were otherwise disciplined;



20 2. The reasons for the imposition of suspensions, revocations, denials, or



21 other discipline; and



22 3. Suggestions for improvement of the concealed deadly weapon applicant



23 training program and instructor process;



24 (i) If a concealed deadly weapon license holder is convicted of, pleads guilty to,



25 or enters an Alford plea to a felony offense, then his or her concealed deadly

26 weapon license shall be forthwith revoked by the Department of State Police



27 as a matter of law;



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1 (j) If a concealed deadly weapon instructor or instructor trainer is convicted of,



2 pleads guilty to, or enters an Alford plea to a felony offense, then his or her



3 concealed deadly weapon instructor certification or concealed deadly weapon



4 instructor trainer certification shall be revoked by the Department of Criminal



5 Justice Training as a matter of law; and



6 (k) The following shall be in effect:



7 1. Action to eliminate the firearms instructor trainer program is prohibited.



8 The program shall remain in effect, and no firearms instructor trainer

9 shall have his or her certification reduced to that of certified firearms



10 instructor;



11 2. The Kentucky State Police shall revoke the concealed deadly weapon



12 license of any person who received no firearms training as required by



13 KRS 237.126 and administrative regulations, or who received



14 insufficient training as required by KRS 237.128 and administrative



15 regulations, if the person voluntarily admits nonreceipt of training or



16 admits receipt of insufficient training, or if either nonreceipt of training



17 or receipt of insufficient training is proven following a hearing



18 conducted by the Department of Criminal Justice Training pursuant to



19 KRS Chapter 13B.



20 Section 61. KRS 238.565 is amended to read as follows:



21 (1) A license holder may appeal any administrative action taken under KRS 238.560. A



22 license holder shall be notified in writing of any action to be taken against him. The



23 notification may be delivered in person or mailed by certified mail, return receipt



24 requested, to the last known address of the license holder. Service of notification of



25 administrative action, whether by hand delivery or by certified mail, shall be

26 deemed complete if the license holder fails or refuses to accept delivery. For service



27 by hand delivery, notification shall be deemed received upon acceptance of delivery



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1 or upon failure or refusal to accept delivery, and the person affecting service on



2 behalf of the office shall record the fact of the failure or refusal. For service by



3 certified mail, the notification of administrative action shall be deemed received



4 when the license holder accepts delivery or fails or refuses to accept delivery at the



5 last known address. The notification shall specify the charges against the license



6 holder, specify the proposed administrative sanction, and advise him of his right to



7 appeal the decision within ten (10) days of the date of receipt of the notification.



8 (2) Upon receipt of an appeal, the office shall schedule the matter for an administrative

9 hearing that shall be conducted in accordance with KRS Chapter 13B.



10 (3) Any provisions of KRS Chapter 13B notwithstanding, within twenty (20) days after



11 the conclusion of a hearing, the administrative law judge[hearing officer] shall



12 prepare and present to the executive director a recommended order based on



13 findings of fact and conclusions of law. Within thirty (30) days of receipt of the



14 recommended order, the executive director shall affirm, reject, or modify, in whole



15 or in part, the recommended order and shall issue a final order. The final order shall



16 be the final administrative action on the matter and a copy of the final order shall be



17 mailed to the license holder, by certified mail, return receipt requested.



18 (4) Any administrative action taken under this section shall, upon appeal, be stayed



19 until a final order is issued, with the exception of a summary suspension. The office



20 may issue an emergency order pursuant to KRS 13B.125 to summarily suspend a



21 license upon finding that continued operation of the license holder pending a



22 hearing would constitute a threat to the public health, safety, or welfare.



23 (5) A final order of the executive director may be appealed to Franklin Circuit Court in



24 accordance with KRS Chapter 13B. If the license holder against whom



25 administrative action is proposed does not request an appeal of the action, the office

26 shall enter a final order imposing the proposed administrative action.



27 Section 62. KRS 286.11-045 is amended to read as follows:



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1 (1) If the executive director has reason to believe or determines that a violation of this



2 subtitle or of a regulation adopted, or an order issued under this subtitle, by a



3 licensee or agent will cause immediate or irreparable harm to the public health,



4 safety, or welfare, then the executive director may enter an emergency order



5 suspending, limiting, or restricting the licensee's license or the designation of an



6 agent, without prior notice or hearing.



7 (2) One (1) or more of the following circumstances shall be considered grounds for an



8 emergency order suspending, limiting, or restricting a license or designation of an

9 agent under this section:



10 (a) The licensee's or agent's indictment or conviction of a felony for a crime



11 involving theft, fraud, or breach of trust;



12 (b) The licensee's or agent's indictment or conviction under the USA PATRIOT



13 Act of 2001, Pub. L. No. 107-56;



14 (c) The suspension or revocation of any other money transmitter license or



15 equivalent license held by the licensee, or designation held by the agent in



16 another state or country;



17 (d) The licensee, its responsible individual, or any agent, key shareholder,



18 executive officer, director, or other person in control of the licensee are listed



19 or become listed on the specially designated nationals and blocked persons list



20 prepared by the United States Department of the Treasury or United States



21 Department of State under Presidential Executive Order No. 13224 as a



22 potential threat to commit terrorist acts or to finance terrorist acts; or



23 (e) Insolvency, or the filing of an application of bankruptcy, reorganization,



24 arrangement, or other relief under bankruptcy, or an adjudication under the



25 United States Bankruptcy Code, 11 U.S.C. secs. 101 to 110 by the licensee or

26 agent.



27 (3) An emergency order issued under this section becomes effective when signed by the



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1 executive director. The emergency order shall be delivered by certified mail to the



2 last known address of the licensee or agent. The order shall be deemed received by



3 the licensee or agent within three (3) days of its mailing with the United States



4 Postal Service.



5 (4) A licensee or agent aggrieved by an emergency order issued by the executive



6 director under this section may file with the executive director a written appeal for



7 an emergency hearing. The application for a hearing shall be filed with the



8 executive director within twenty (20) days of the date of the emergency order.

9 (5) Upon receipt of a written appeal by any licensee or agent aggrieved by an



10 emergency order issued under this section, the executive director shall conduct an



11 emergency hearing as required under KRS 13B.125, within ten (10) working days



12 from the date of receipt of the appeal, unless the parties agree otherwise. The



13 administrative law judge[hearing officer] shall render a written decision affirming,



14 modifying, or reversing the emergency order within five (5) working days of the



15 completion of the hearing. The emergency order shall be affirmed if there is



16 substantial evidence of a violation of law that constitutes an immediate danger to



17 the public health, safety, or welfare.



18 Section 63. KRS 304.9-465 is amended to read as follows:



19 (1) For the protection of the people of Kentucky, the executive director may by order



20 deny, suspend, or place conditions upon any license subject to the provisions of this



21 subtitle.



22 (2) An order denying a license or appointment shall be based upon the application and



23 any other information pertaining to the applicant available to the office.



24 (3) One (1) or more of the following circumstances shall be considered for an order



25 suspending a license:

26 (a) The licensee's indictment for crime involving dishonesty, breach of trust, a



27 violation of Subtitle 47 of this chapter, or a violation of 18 U.S.C. sec. 1033;



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1 (b) Sworn complaints to the office against the licensee showing clear and



2 convincing evidence of a violation of KRS 304.9-400 totaling in the aggregate



3 three hundred dollars ($300) or more;



4 (c) The suspension or revocation of any other professional license held by the



5 licensee in Kentucky or any other jurisdiction.



6 (4) The executive director may place conditions upon any license for any reason set



7 forth in subsection (3) of this section.



8 (5) Any person aggrieved by an order of the executive director under this section may

9 file an application for an emergency hearing pursuant to KRS 13B.125 within sixty



10 (60) days of the date of the order. The office shall conduct the hearing within ten



11 (10) working days of the request for a hearing, and within five (5) working days of



12 the completion of the hearing the agency or administrative law judge[hearing



13 officer] shall render a written decision affirming, modifying, or revoking the



14 emergency order. The emergency order shall be affirmed if there is substantial



15 evidence of a violation of law that constitutes an immediate danger to the public



16 health, safety, or welfare. The executive director shall participate in an expedited



17 hearing at the applicant's written request.



18 Section 64. KRS 311.565 is amended to read as follows:



19 (1) The board may:



20 (a) Exercise all the administrative functions of the state in the prevention of



21 empiricism and in the regulation of the practice of medicine and osteopathy,



22 which shall include but not be limited to promulgation of reasonable



23 administrative regulations enabling the board to regulate the conduct of its



24 licensees;



25 (b) Promulgate reasonable administrative regulations establishing moral, physical,

26 intellectual, educational, scientific, technical, and professional qualifications



27 of applicants for licenses and permits that may be issued by the board;



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1 (c) Issue, deny, suspend, limit, restrict, and revoke any licenses or permits that



2 may be issued by the board, and to reprimand or to place licensees on



3 probation, in compliance with the provisions of KRS 311.530 to 311.620;



4 (d) Appoint an executive director and assistant executive directors and fix their



5 compensation. The executive director shall oversee the work of the board,



6 shall be authorized to discharge the duties of the secretary, as provided by



7 KRS 311.530 to 311.620, and shall carry out the duties of the executive



8 director as set forth elsewhere in this chapter;

9 (e) Appoint a general counsel and assistant general counsel and fix their



10 compensation;



11 (f) Appoint investigatory personnel and fix their compensation;



12 (g) Appoint one (1) or more administrative law judges[hearing officers], who



13 need not be members of the board[, and fix their compensation]. Every



14 administrative law judge[hearing officer] shall be vested with the full and



15 complete power and authority of the board to schedule and conduct hearings



16 on behalf of and in the name of the board on all matters referred for hearing by



17 the board or secretary thereof, including, among other things, proceedings for



18 placing licensees on probation and for limitation, suspension, and revocation



19 of licenses. All administrative hearings conducted by the board, a member of



20 the board, or an administrative law judge[a hearing officer] appointed by the



21 board, shall be conducted in accordance with KRS Chapter 13B. No



22 administrative law judge[hearing officer] shall be empowered to place any



23 licensee on probation or to issue, refuse, suspend, limit, or revoke any license;



24 (h) Appoint committees of licensees, who need not be board members, to review



25 issues of public or medical interest before the board and to make

26 recommendations to the board on the issues;



27 (i) Promulgate administrative regulations to promote the efficient and fair



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1 conduct of disciplinary proceedings;



2 (j) Promulgate a code of conduct governing the practice of medicine and



3 osteopathy, which shall be based upon generally-recognized principles of



4 professional ethical conduct;



5 (k) Utilize the services and facilities of professional organizations, and procure



6 and receive the assistance and recommendations of professional organizations



7 in administering KRS 311.530 to 311.620;



8 (l) Make its personnel and facilities available to other governmental entities

9 under mutually agreeable terms and conditions;



10 (m) Issue regular licenses without further testing by endorsement from another



11 state having qualifications and standards at least as high as those of this state



12 or by endorsement from the National Board of Medical Examiners, the



13 National Board of Examiners for Osteopathic Physicians and Surgeons, the



14 National Joint Committee of Preregistration Physician Training Programs, or



15 any approved successors thereof;



16 (n) Issue and renew regular licenses to practice medicine or osteopathy in



17 accordance with KRS 311.530 to 311.620 and any reasonable regulations of



18 the board;



19 (o) Issue and renew, or refuse to issue or renew, or cancel and terminate limited



20 licenses pursuant to administrative regulations promulgated by the board;



21 provided however, no person who held a limited license for institutional



22 practice or general practice as of September 1, 1972, shall be denied the



23 renewal of that limited license for nondisciplinary reasons;



24 (p) Appoint examiners, who need not be members of the board, and employ or



25 contract with the Federation of State Medical Boards of the United States,

26 Inc., or the National Board of Medical Examiners or other organizations,



27 agencies, or individuals to prepare examination questions and grade



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1 examination papers;



2 (q) Determine the schools, colleges, universities, institutions, and training



3 acceptable in connection with licensure under KRS 311.530 to 311.620;



4 (r) Prescribe the time, place, method, manner, scope, and content of



5 examinations;



6 (s) Prescribe all forms which it considers appropriate, and require the submission



7 of photographs, fingerprints, and personal history data;



8 (t) Require a criminal background investigation of all persons applying for

9 licensure at the time of initial application, and at other times at the request of



10 the board for good cause shown, by means of a fingerprint check by the State



11 Police and Federal Bureau of Investigation;



12 (u) Prescribe and collect reasonable fees and charges for examinations,



13 directories, and the issuance and renewal of licenses and permits; and



14 (v) Impose fines of not greater than five thousand dollars ($5,000) per violation



15 and require the licensee to reimburse the board for the costs of the



16 administrative proceedings including consultant fees, upon a finding pursuant



17 to disciplinary proceedings that the licensee has violated any provision of



18 KRS 311.595 to 311.597 or duly-promulgated disciplinary regulation of the



19 board.



20 (2) The board shall develop specific guidelines to follow upon receipt of an allegation



21 of sexual misconduct by a physician licensed by the board. The guidelines shall



22 include investigation, inquiry, and hearing procedures which ensure that the process



23 does not revictimize the alleged victim or cause harm if a physician is falsely



24 accused.



25 (3) The board, the administrative law judge[hearing officer], and investigators hired by

26 the board shall receive training on the dynamics of sexual misconduct of



27 professionals, including the nature of this abuse of authority, characteristics of the



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1 offender, the impact on the victim, the possibility and the impact of false



2 accusations, investigative procedure in sex offense cases, and effective intervention



3 with victims and offenders.



4 Section 65. KRS 311.591 is amended to read as follows:



5 (1) The president of the board shall divide the membership of the board, excluding



6 himself, into two (2) panels of seven (7) members, each panel to include at least one



7 (1) consumer member. Each panel shall have the power to act as an inquiry or a



8 hearing panel. The president shall not be a permanent member of either panel, but

9 shall have the power to render the deciding vote whenever a tie vote is rendered by



10 either panel and shall have the power to serve as a member of either panel when



11 necessary to achieve a quorum by majority.



12 (2) Grievances may be submitted by an individual (including board members),



13 organization, or entity. Each grievance shall be investigated as necessary and the



14 executive director shall assign each grievance to an inquiry panel. All inquiry panels



15 and the executive director shall have the power to issue investigatory subpoenas for



16 the appearance of any person or production of any record, document, or other item



17 within the jurisdiction of the Commonwealth. The panel or executive director may



18 seek enforcement of investigatory subpoenas and search warrants in the courts of



19 the Commonwealth as may be necessary.



20 (3) Upon completion of its inquiry, the inquiry panel shall make a finding that:



21 (a) There is no evidence of a violation of any medical practice act and no further



22 action is necessary;



23 (b) There is insufficient evidence of a violation to warrant the issuance of a



24 complaint, but that there is evidence of a practice or activity that requires



25 modification and the panel may issue a letter of concern under KRS

26 311.550(22). The letter of concern shall be a public document and may be



27 used in future disciplinary actions against the physician;



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1 (c) The grievance discloses an instance of misconduct which does not warrant the



2 issuance of a complaint; in these instances, the panel may admonish the



3 physician for his misconduct; or



4 (d) The grievance discloses one (1) or more violations of the provisions of this



5 chapter which warrant the issuance of a complaint; in these instances, the



6 panel shall cause a complaint to be prepared, signed by the presiding officer,



7 which shall contain sufficient information to apprise the named physician of



8 the general nature of the charges.

9 (4) The inquiry panel shall cause a complaint to be served on the charged physician by



10 personal delivery or by certified mail to the physician's last address of which the



11 board has record. The physician shall submit a response within thirty (30) days after



12 service. Failure to submit a timely response or willful avoidance of service may be



13 taken by the board as an admission of the charges.



14 (5) Upon the issuance of the complaint, the executive director shall assign the matter



15 for an administrative hearing by a hearing panel. No member who served on the



16 inquiry panel may also serve as a member of the hearing panel. The hearing panel or



17 the administrative law judge[hearing officer] on behalf of the panel shall preside



18 over all proceedings pursuant to the issuance of a complaint.



19 (6) The board may promulgate administrative regulations regarding the informal



20 disposition of any complaint, and an informal disposition may be made at any stage



21 of the proceeding.



22 (7) Upon completion of an administrative hearing, the hearing panel shall issue a final



23 order that:



24 (a) Dismisses the complaint upon a conclusion that the provisions of this chapter



25 have not been violated;

26 (b) Finds a violation of the provisions of this chapter, but does not impose



27 discipline because the panel does not believe discipline to be necessary under



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1 the circumstances; or



2 (c) Imposes discipline upon the licensee; in these instances, the panel may revoke,



3 suspend, restrict, deny, or limit a license, or may reprimand a licensee or place



4 a licensee on probation under terms the panel may establish to protect the



5 licensee, his patients, or the general public. The hearing panel may impose a



6 fine whenever it finds that a violation of this chapter has occurred. If the board



7 substantiates that sexual contact occurred between the physician and the



8 patient while the patient was under the care of or in a professional relationship

9 with the physician, the physician's license may be revoked or suspended with



10 mandatory treatment of the physician as prescribed by the board. The board



11 may require the physician to pay a specified amount for mental health services



12 for the patient which are needed as a result of the sexual contact. The hearing



13 panel's order shall be considered the final order of the board regarding the



14 matter.



15 (8) Regardless of the restrictions on public disclosure of information established in



16 subsection (9) of this section, the board may order information derived from any



17 investigation or inquiry be released to the physician licensure authority of another



18 state or to any health care or mental health care facility licensed and regulated by



19 the Commonwealth of Kentucky upon a showing that the information is necessary



20 to determine the propriety of a physician practicing in a particular state or facility.



21 (9) The presiding officer at any proceeding held pursuant to a complaint or show cause



22 order shall take whatever measures are necessary to protect the privacy interests of



23 individuals other than the charged physician upon a showing that evidence is to be



24 introduced, the public disclosure of which would constitute a clear invasion of



25 personal privacy. It is the general policy of the Commonwealth that administrative

26 proceedings should be open to the public. Therefore, in applying this subsection, the



27 presiding officer shall balance the competing interests and employ the least



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1 restrictive measures available to protect the privacy interests involved.



2 Section 66. KRS 311A.055 is amended to read as follows:



3 (1) In accordance with the provisions of KRS Chapter 13B, all discipline for which the



4 board is authorized to conduct investigations, hold hearings, and impose



5 punishments is delegated to the executive director, state medical advisor, board



6 attorney, and hearing panels as provided herein.



7 (2) Any person may make a complaint to the executive director that an entity licensed



8 or certified by the board, first responder, emergency medical technician, paramedic,

9 emergency medical services medical advisor or other person licensed or certified by



10 the board has violated a provision of this chapter, an administrative regulation



11 promulgated pursuant to this chapter, protocol, practice standard, or order of the



12 board.



13 (3) Each complaint shall:



14 (a) Be in writing;



15 (b) Identify specifically the person or organization against whom the complaint is



16 made;



17 (c) Set forth the facts relating to the violation alleged and any other supporting



18 information which may have a bearing on the matter;



19 (d) Contain the name, address, telephone number, facsimile number, and e-mail



20 address, if available, of the complainant;



21 (e) Be subscribed and sworn to as to the truth of the statements contained in the



22 complaint by the complainant; and



23 (f) Be notarized.



24 (4) A complaint which is unsigned shall not be acted upon by the executive director. A



25 complaint which is not subscribed and sworn in the manner specified in subsection

26 (3) of this section shall be returned to the complainant for completion.



27 (5) The executive director of the board may, on behalf of the board, based on



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1 knowledge available to the office of the board, make a complaint against any person



2 or organization regulated by the board in the same manner as provided in subsection



3 (3) of this section.



4 (6) Upon receipt of a properly completed complaint, the executive director shall assign



5 the complaint to a staff investigator who shall investigate the complaint and shall



6 make findings of fact and recommendations to the executive director who shall then



7 convene a preliminary inquiry board.



8 (7) When the executive director assigns a complaint to a staff investigator, he or she

9 shall notify the person or organization against whom the complaint has been filed



10 and shall notify the employer of a first responder, emergency medical technician, or



11 paramedic and the emergency medical services medical director for the organization



12 and for any paramedic against whom the complaint is filed and any other person or



13 organization specified in this chapter.



14 (8) The notification shall name the person or organization complained against, the



15 complainant, the violations alleged, and the facts presented in the complaint and



16 shall notify the person or organization complained against, the employer, and the



17 emergency medical services medical director of:



18 (a) The fact that the complaint shall be answered, the steps for answering the



19 complaint, and the action to be taken if the complaint is not answered;



20 (b) The time frame and steps in the proceedings of a complaint;



21 (c) The rights of the parties, including the right to counsel; and



22 (d) The right to testify at any hearing.



23 (9) Upon the failure of a license or certificate holder to respond to a written accusation



24 or to request a hearing within twenty (20) days after the sending of the accusation,



25 the accused shall be considered to have admitted the truth of the facts and the

26 circumstances in the allegation and appropriate discipline may be imposed.



27 (10) The preliminary inquiry board shall consist of one (1) member of the board selected



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1 by the chair, and two (2) persons representing the same category of certification or



2 licensure as the defendant who are not members of the board appointed by the



3 chairman of the board.



4 (11) After reviewing the complaint and results of any investigation conducted on behalf



5 of the board, the preliminary inquiry board shall consider whether the accusation is



6 sufficient to remand the matter for a hearing as provided in this section and KRS



7 Chapter 13B. A majority vote of the members of the preliminary inquiry board shall



8 be necessary for action to either remand the matter for hearing or dismiss the

9 complaint without hearing.



10 (12) If the preliminary inquiry board dismisses the complaint, all parties notified



11 previously shall be notified of the action. If the preliminary inquiry board remands



12 the matter for a hearing, all parties notified previously shall be notified of the



13 action.



14 (13) Each proceeding to consider the imposition of a penalty which the board is



15 authorized to impose pursuant to this chapter shall be conducted in accordance with



16 KRS Chapter 13B.



17 (14) A hearing panel for purposes of making a decision in any disciplinary matter shall



18 consist of one (1) physician who may be a member of the board or who meets the



19 qualifications of an emergency medical services medical director; one (1) person



20 from the category of persons or organizations of the same class as the defendant;



21 and the administrative law judge[hearing officer], who shall not be involved in



22 emergency medical services.



23 (15) The administrative law judge[hearing officer] may issue subpoenas to compel the



24 attendance of witnesses and the production of documents in the conduct of an



25 investigation. The subpoenas may be enforced by any Circuit Court for contempt.

26 Any order or subpoena of the court requiring the attendance and testimony of



27 witnesses and the production of documentary evidence may be enforced and shall



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1 be valid anywhere in this state.



2 (16) At all hearings the board attorney or, on request of the board, the Attorney General



3 of this state or one (1) of the assistant attorneys general designated shall appear and



4 represent the board.



5 (17) The emergency medical services provider or related employer of a person licensed



6 or certified by the board and the emergency medical services medical director of



7 such a person who is the defendant in a hearing shall be parties to the action and



8 may appear and testify in the matter at any deposition or hearing on the matter and

9 may propose conclusions of law, findings of fact, and penalties to the hearing panel.



10 (18) To make a finding or recommend discipline, the two (2) members of the hearing



11 panel who are not the administrative law judge[hearing officer] shall agree on the



12 finding or discipline. In the event of a tie vote, the administrative law judge[hearing



13 officer] shall cast the deciding vote.



14 (19) The final order in any disciplinary proceeding shall be prepared by the executive



15 director and sent to all parties in the manner prescribed by law.



16 (20) Any person or entity aggrieved by a final order of the board may appeal to the



17 Franklin Circuit Court in accordance with the provisions of KRS Chapter 13B.



18 (21) The only discipline that the board may impose against an emergency medical



19 services medical director is denial, suspension or withdrawal of the board's approval



20 for that person to serve as an emergency medical services medical director.



21 (22) If the executive director substantiates that sexual contact occurred between a



22 licensee or certificate holder and a patient while the patient was under the care of or



23 in a professional relationship with the licensee or certificate holder, the license or



24 certification may be revoked or suspended with mandatory treatment of the person



25 as prescribed by the executive director. The executive director may require the

26 licensee or certificate holder to pay a specified amount for mental health services



27 for the patient which are needed as a result of the sexual contact.



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1 Section 67. KRS 312.019 is amended to read as follows:



2 (1) The board shall administer the provisions of this chapter and the administrative



3 regulations promulgated by the board relating to the practice of chiropractic.



4 (2) The board shall pass upon the qualifications of applicants for a license, certification,



5 or registration to practice chiropractic. It shall examine, license, certify, register, and



6 renew the license, certification, or registration of duly qualified applicants.



7 (3) The board may deny, revoke, limit, impose probationary conditions, refuse to



8 renew, or suspend any license, certification, or registration issued by it.

9 (4) The board shall adopt a seal which shall be affixed to all licenses, certifications, and



10 registrations issued by the board and to such other documents as the board deems



11 necessary.



12 (5) The board shall regulate the practice of chiropractic by persons licensed or certified



13 by it and shall enforce the provisions of this chapter and the administrative



14 regulations of the board. The board may investigate violations and cause the



15 prosecution of persons violating the provisions of this chapter or the administrative



16 regulations promulgated by the board.



17 (6) The board may employ such personnel and incur such expenses as may be necessary



18 for the performance of its duties and the enforcement of this chapter.



19 (7) The board may prescribe and collect reasonable fees for the issuance and renewal of



20 licenses, certifications, and registrations and the administration of examinations as



21 provided in KRS 312.095 and 312.175.



22 (8) The board may inspect at all reasonable times any chiropractic office or place where



23 chiropractic services are performed and inspect chiropractic records, a copy of



24 which may be obtained by the board, and question all persons.



25 (9) The board may promulgate and from time to time amend administrative regulations,

26 consistent with the provisions of this chapter and in accordance with the provisions



27 of KRS Chapter 13A, governing the practice of chiropractic and the diagnosis and



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1 treatment of patients, the enforcement of this chapter and the proper performance of



2 its duties, including but not limited to:



3 (a) A code of ethical conduct governing the practice of chiropractic;



4 (b) Requirements, standards, and examinations to determine the moral, physical,



5 intellectual, educational, scientific, technical, and professional qualifications



6 of applicants for licenses and certifications;



7 (c) Matters pertaining to the content and conduct of examinations;



8 (d) Matters pertaining to the operation and registration of chiropractic clinics;

9 (e) Matters pertaining to the practice and certification of chiropractic specialties



10 by licensed doctors of chiropractic;



11 (f) The type, character, and location of postgraduate study to be done by any



12 licensee in order to comply with the provisions of KRS 312.175;



13 (g) Regulation of forms of advertising or solicitation that are false, misleading, or



14 deceptive or otherwise in violation of this chapter. The board may require a



15 seventy-two (72) hour rescission period for consumers responding to certain



16 forms of solicitation or advertising proposing or offering a series or course of



17 treatments. The board may require that advertisements or solicitations stating



18 coverage available from third-party payors include a conspicuous notice that



19 persons may be required to submit to an independent evaluation which may



20 result in a determination that the all or part of the services are unreasonable or



21 unnecessary;



22 (h) Establishing a recommended course of pre-chiropractic education to be



23 completed prior to entry into chiropractic college and the establishment of a



24 preceptorship program for students enrolled in accredited chiropractic colleges



25 that conform to KRS 312.085 to meet the standards of accreditation of the

26 Council on Chiropractic Education.



27 (i) Registration and regulation of chiropractic management consultants operating



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1 in Kentucky. The board may impose annual registration fees not to exceed two



2 hundred dollars ($200); and



3 (j) Establishing minimum standards for recordkeeping in chiropractic offices, the



4 issuance of itemized statements, and requiring that any record or report



5 include the name of the treating chiropractor.



6 (10) The board shall develop specific guidelines to follow upon receipt of an allegation



7 of sexual misconduct by a chiropractor licensed by the board. The guidelines shall



8 include investigation, inquiry, and hearing procedures which ensure the process

9 does not revictimize the alleged victim or cause harm if a chiropractor is falsely



10 accused.



11 (11) The board, the administrative law judge[hearing officer], and investigators hired by



12 the board shall receive training on the dynamics of sexual misconduct of



13 professionals, including the nature of this abuse of authority, the characteristics of



14 the offender, the impact on the victim, the possibility and the impact of false



15 accusations, investigative procedure in sex offense cases, and effective intervention



16 with victims and offenders.



17 Section 68. KRS 313.195 is amended to read as follows:



18 (1) The board may, by a majority vote, issue an emergency order for the immediate



19 temporary suspension of a license against which disciplinary action or an



20 investigation is pending if the order is necessary to protect the public.



21 (2) The emergency order shall be made in accordance with KRS 13B.125 and shall be



22 based upon a finding by the board that the emergency order is in the public interest



23 and that there is substantial evidence of immediate danger to the health, welfare,



24 and safety of his patients or the general public.



25 (3) A licensee may appeal the emergency order by a written request to the board for an

26 emergency hearing in accordance with KRS 13B.125 within thirty (30) days after



27 receipt of the order.



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1 (4) The appeal of an emergency order shall address only the necessity for the action and



2 shall not constitute an appeal of the merits of the underlying complaint or charge.



3 (5) The emergency order shall remain in effect until modified or vacated by the board



4 or administrative law judge[hearing officer] or superceded by final disciplinary



5 action of the board or administrative law judge[hearing officer] on the underlying



6 complaint or charge.



7 (6) The board shall expedite disciplinary hearings in which a license has been



8 suspended under subsection (1) of this section.

9 (7) Any party aggrieved by a final order of the board may appeal to the Jefferson



10 Circuit Court or the Franklin Circuit Court after a written decision is rendered.



11 Section 69. KRS 315.155 is amended to read as follows:



12 (1) The Governor may remove a member of the board for any of the following reasons:



13 (a) Refusal or inability of a board member to perform his duties as a member of



14 the board in an efficient, responsible and professional manner;



15 (b) Misuse of the office by a member of the board to obtain personal, pecuniary,



16 or material gain or advantage for himself or another;



17 (c) Willful violation of any provision of KRS Chapter 315 or any rule or



18 regulation promulgated thereunder.



19 (2) Any person may file a complaint with the executive director of the board against a



20 board member alleging specific facts which constitute grounds for removal from the



21 board. The executive director shall transmit a copy of any such complaint to the



22 Governor, the president of the board and the accused board member. Upon a written



23 recommendation of the Governor or two-thirds (2/3) of the members of the board, a



24 hearing shall be conducted before an impartial administrative law judge[hearing



25 officer] pursuant to KRS Chapter 13B.

26 (3) The administrative law judge[hearing officer] shall submit a transcript of the



27 hearing to the Governor with a recommendation based on evidence presented in the



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1 hearing. The Governor shall review the transcript to determine if the evidence



2 supports the recommendation, and he shall enter a finding in accordance with such



3 determination.



4 (4) In the event a board member is removed, his removal shall be effective as of the



5 date of the Governor's finding and a vacancy shall be deemed to exist. Any board



6 member so removed shall be entitled to appeal the removal in the Franklin Circuit



7 Court.



8 Section 70. KRS 315.191 is amended to read as follows:

9 (1) The board is authorized to:



10 (a) Promulgate administrative regulations pursuant to KRS Chapter 13A



11 necessary to regulate and control all matters set forth in this chapter relating to



12 pharmacists, pharmacist interns, pharmacy technicians, pharmacies, wholesale



13 distributors, and manufacturers, to the extent that regulation and control of



14 same have not been delegated to some other agency of the Commonwealth,



15 but administrative regulations relating to drugs shall be limited to the



16 regulation and control of drugs sold pursuant to a prescription drug order.



17 However, nothing contained in this chapter shall be construed as authorizing



18 the board to promulgate any administrative regulations relating to prices or



19 fees or to advertising or the promotion of the sales or use of commodities or



20 services;



21 (b) Issue subpoenas, schedule and conduct hearings, or appoint The



22 implementation schedule for this Act shall be administrative law



23 judges[hearing officers] to schedule and conduct hearings on behalf of the



24 board on any matter under the jurisdiction of the board;



25 (c) Prescribe the time, place, method, manner, scope, and subjects of

26 examinations, with at least two (2) examinations to be held annually;



27 (d) Issue and renew all licenses, certificates, and permits for all pharmacists,



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1 pharmacist interns, pharmacies, wholesale distributors, and manufacturers



2 engaged in the manufacture, distribution, or dispensation of drugs;



3 (e) Investigate all complaints or violations of the state pharmacy laws and the



4 administrative regulations promulgated by the board, and bring all these cases



5 to the notice of the proper law enforcement authorities;



6 (f) Promulgate administrative regulations, pursuant to KRS Chapter 13A, that are



7 necessary and to control the storage, retrieval, dispensing, refilling, and



8 transfer of prescription drug orders within and between pharmacists and

9 pharmacies licensed or issued a permit by it;



10 (g) Perform all other functions necessary to carry out the provisions of law and



11 the administrative regulations promulgated by the board relating to



12 pharmacists, pharmacist interns, pharmacy technicians, pharmacies, wholesale



13 distributors, and manufacturers;



14 (h) Establish or approve programs for training, qualifications, and registration of



15 pharmacist interns;



16 (i) Assess reasonable fees, in addition to the fees specifically provided for in this



17 chapter and consistent with KRS 61.870 to 61.884, for services rendered to



18 perform its duties and responsibilities, including, but not limited to, the



19 following:



20 1. Issuance of duplicate certificates;



21 2. Mailing lists or reports of data maintained by the board;



22 3. Copies of documents; or



23 4. Notices of meetings;



24 (j) Seize any drug or device found by the board to constitute an imminent danger



25 to public health and welfare;

26 (k) Establish an advisory council to advise the board on administrative regulations



27 and other matters, within the discretion of the board, pertinent to the



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1 regulation of pharmacists, pharmacist interns, pharmacy technicians,



2 pharmacies, drug distribution, and drug manufacturing. The council shall



3 consist of nine (9) members selected by the board for terms of up to four (4)



4 years. No member shall serve on the council for more than eight (8) years.



5 Membership of the council shall include nine (9) individuals broadly



6 representative of the profession of pharmacy and the general public. Members



7 shall be selected by the board from a list of qualified candidates submitted by



8 the association, society, or other interested parties; and

9 (l) Promulgate administrative regulations establishing the qualifications that



10 pharmacy technicians are required to attain prior to engaging in pharmacy



11 practice activities outside the immediate supervision of a pharmacist.



12 (2) The board shall have other authority as may be necessary to enforce pharmacy laws



13 and administrative regulations of the board including, but not limited to:



14 (a) Joining or participating in professional organizations and associations



15 organized exclusively to promote improvement of the standards of practice of



16 pharmacy for the protection of public health and welfare or facilitate the



17 activities of the board; and



18 (b) Receiving and expending funds, in addition to its biennial appropriation,



19 received from parties other than the state, if:



20 1. The funds are awarded for the pursuit of a specific objective which the



21 board is authorized to enforce through this chapter, or which the board is



22 qualified to pursue by reason of its jurisdiction or professional expertise;



23 2. The funds are expended for the objective for which they were awarded;



24 3. The activities connected with or occasioned by the expenditure of the



25 funds do not interfere with the performance of the board's

26 responsibilities and do not conflict with the exercise of its statutory



27 powers;



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1 4. The funds are kept in a separate account and not commingled with funds



2 received from the state; and



3 5. Periodic accountings of the funds are maintained at the board office for



4 inspection or review.



5 (3) In addition to the sanctions provided in KRS 315.121, the board or its



6 administrative law judge[hearing officer] may direct any licensee, permit holder, or



7 certificate holder found guilty of a charge involving pharmacy or drug laws, rules,



8 or administrative regulations of the state, any other state, or federal government, to

9 pay to the board a sum not to exceed the reasonable costs of investigation and



10 prosecution of the case, not to exceed twenty-five thousand dollars ($25,000).



11 (4) In an action for recovery of costs, proof of the board's order shall be conclusive



12 proof of the validity of the order of payment and any terms for payment.



13 Section 71. KRS 319.032 is amended to read as follows:



14 (1) The board shall promulgate administrative regulations:



15 (a) Establishing requirements, standards, and tests to determine the moral,



16 intellectual, educational, scientific, technical, and professional qualifications



17 of applicants for licensure; and preparing or selecting and administering



18 examinations on general psychological knowledge. Neither certified



19 psychologists, licensed psychological practitioners, nor licensed psychological



20 associates may participate in the examination of applicants for licensure as



21 licensed psychologists;



22 (b) Establishing and defining the scope of practice within the field of psychology;



23 (c) Setting the requirements for issuing, denying, suspending, restricting, and



24 revoking licenses, and placing credential holders on probation;



25 (d) Developing specific guidelines to follow upon receipt of an allegation of

26 sexual misconduct by a person credentialed by the board. The guidelines shall



27 include investigation, administrative law judge[hearing officer], and hearing



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1 procedures which ensure that the process does not revictimize the alleged



2 victim or cause harm if a credential holder is falsely accused;



3 (e) Requiring training for the board and investigators hired by the board on the



4 dynamics of sexual misconduct of professionals, including the nature of this



5 abuse of authority, characteristics of the offender, the impact on the victim,



6 the possibility and the impact of false accusations, investigative procedure in



7 sex offense cases, and effective intervention with victims and offenders;



8 (f) Establishing requirements for continuing education not to exceed thirty (30)

9 contact hours per three (3) year renewal period as a condition for renewal of



10 licenses;



11 (g) Establishing and collecting reasonable fees for directories, transcribing,



12 transferring of records, and other services;



13 (h) Conducting hearings or appointing administrative law judges[hearing



14 officers] to conduct hearings on any matter under the jurisdiction of the board,



15 in accordance with KRS Chapter 13B;



16 (i) Entering into reciprocal agreements with boards of examiners of psychology



17 of other states having qualifications and standards at least as high as those of



18 this state providing for reciprocal licensure;



19 (j) Employing personnel, including administrative law judges[hearing officers]



20 which it considers necessary for the performance of its functions, determining



21 the duties of personnel, and compensating them within the limits of funds



22 available to the board;



23 (k) Investigating complaints or suspected violations of this chapter and notifying



24 proper law enforcement authorities. For the purpose of enforcing the



25 provisions of this chapter, the board shall have the authority to administer

26 oaths, receive evidence, interview persons, issue subpoenas, and require the



27 productions of books, papers, documents, or other evidence;



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1 (l) Governing the supervision of certified psychologists and the supervision and



2 employment of licensed psychological associates and candidates for licensure;



3 (m) Developing specific guidelines to allow school psychologists who are dually



4 credentialed by the Education Professional Standards Board and the board to



5 obtain supervision acceptable to the board from a licensed psychologist who is



6 neither an employee nor contractor of the school system that employs the



7 school psychologist being supervised; and



8 (n) Notwithstanding the fee schedules specified in this chapter, increasing or

9 decreasing fees as it deems appropriate.



10 (2) The board shall have the authority to promulgate other administrative regulations as



11 it deems necessary for the proper administration of this chapter.



12 (3) The board, at its discretion, may use funds as necessary to purchase liability



13 insurance for members and executive officers of the board, inspectors, examiners,



14 investigators, and staff members exempt from classified service of the state by KRS



15 18A.115.



16 Section 72. KRS 319.092 is amended to read as follows:



17 (1) In every proceeding for probation, suspension, or revocation of a license, an



18 administrative hearing shall be conducted in accordance with KRS Chapter 13B.



19 The board or a administrative law judge[hearing officer] appointed by the board



20 shall conduct the hearing.



21 (2) All decisions revoking or suspending a license or placing a credential holder on



22 probation shall be made by the board.



23 (3) If, after a hearing, a majority of the board finds that a credential holder has violated



24 any provision of this chapter, the board may:



25 (a) Revoke or suspend the license;

26 (b) Impose a monetary penalty not to exceed two thousand dollars ($2,000) per



27 violation;



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1 (c) Revoke or suspend the license or impose a monetary penalty, but suspend



2 enforcement thereof by placing the credential holder on probation, which shall



3 be revocable if the board finds the conditions of the probation order are not



4 being followed by the credential holder;



5 (d) Require the credential holder, as a condition of probation, to submit to care,



6 counseling, or treatment by a professional designated by the board, or require



7 the credential holder to be supervised by a licensed psychologist designated by



8 the board. The expense of this action shall be borne by the credential holder

9 on probation;



10 (e) Modify the conditions of the probation, with good cause, and may include



11 among them any reasonable condition for the purpose of the protection of the



12 public, or for the purpose of the rehabilitation of the probationer, or both;



13 (f) Require restitution; and



14 (g) Assess the costs of the disciplinary proceeding.



15 (4) If the board substantiates that sexual contact occurred between a credential holder



16 and a patient while the patient was under the care or in a professional relationship



17 with the credential holder, the credential holder's license may be revoked or



18 suspended with mandatory treatment of that individual as prescribed by the board.



19 The board may require the credential holder to pay a specified amount for mental



20 health services for the patient which are needed as a result of the sexual contact.



21 (5) Final orders of the board suspending or revoking a license or placing a credential



22 holder on probation shall become effective immediately after written notice is



23 served on the credential holder and the credential holder shall not, after notice of



24 same, engage or continue to engage in the practice of psychology unless the board's



25 final order is revoked or modified by the court after judicial review.

26 (6) The board shall make public its final order in all disciplinary actions.



27 (7) Any person aggrieved by a final order of the board may appeal to the Franklin



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1 Circuit Court in accordance with KRS Chapter 13B.



2 Section 73. KRS 323.130 is amended to read as follows:



3 (1) In any action taken pursuant to KRS 323.120, the board shall conduct a hearing in



4 accordance with the provisions of this chapter and KRS Chapter 13B. The hearing



5 may be conducted by the full board or at its designation, a member thereof, a panel



6 of the board, an administrative law judge[a hearing officer], or a combination of



7 the foregoing;



8 (2) If the hearing is conducted by less than a majority of the full board, or by an

9 administrative law judge[a hearing officer], the board members or administrative



10 law judge[hearing officer], as the case may be, may only issue a recommended



11 order, and the recommended order shall be subject to review by a majority of the



12 full board, which shall issue a final order; and



13 (3) The board may proceed against a licensee on its own initiative, on the basis of either



14 information contained in its own records or information obtained through its



15 informal investigation. If a formal complaint verified by affidavit is filed with the



16 board by a responsible citizen or organization, containing allegations that if true



17 would warrant action pursuant to KRS 323.120, the board may proceed against the



18 licensee.



19 (4) Any final order of the board may be appealed to Franklin Circuit Court in



20 accordance with KRS Chapter 13B.



21 Section 74. KRS 324.170 is amended to read as follows:



22 (1) The commission shall, before denying an application for license or before ordering



23 any disciplinary action against a licensee, order a hearing. The hearing shall be



24 conducted in accordance with the provisions of KRS Chapter 13B. If the applicant



25 or licensee is a sales associate, the commission shall also notify the principal broker

26 of the hearing by mailing notice by certified mail, return receipt requested, to the



27 broker's last known business address. The commission shall order the presence of



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1 the principal broker or his designated representative at the hearing.



2 (2) All hearings shall be conducted by a quorum of the commission or by an



3 administrative law judge[a hearing officer] appointed by the commission.



4 Administrative law judges[Hearing officers] shall not order any disciplinary action



5 against a licensee. The function of administrative law judges[hearing officers]



6 appointed to conduct hearings shall be to preside at the hearing and to prepare a



7 recommended order to be submitted to the commission.



8 Section 75. KRS 325.360 is amended to read as follows:

9 (1) The board may conduct investigations of suspected violations of this chapter or the



10 administrative regulations promulgated by the board to determine whether there is



11 probable cause to institute proceedings against any person or firm for any violation



12 under this chapter, but an investigation under this section shall not be a prerequisite



13 to proceedings. In aid of these investigations, the board or its designee may issue



14 subpoenas to compel witnesses to testify and to produce evidence. Subpoenas may



15 be served in person or by certified mail, return receipt requested.



16 (2) The board may designate a member, or any other person of appropriate competence,



17 to serve as investigating officer to conduct an investigation. Upon completion of an



18 investigation, the investigating officer shall report to the board. The board shall then



19 find probable cause or lack of probable cause, or it shall request that the



20 investigating officer investigate further. Until there has been a determination of



21 probable cause, the findings of the investigating officer, the testimony and



22 documents gathered in the investigation, and the fact of pendency of the



23 investigation shall be treated as confidential information and shall not be disclosed



24 to any person except law enforcement authorities and, to the extent deemed



25 necessary in order to conduct the investigation, the subject of the investigation,

26 persons whose complaints are being investigated, and witnesses questioned in the



27 course of the investigation.



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1 (3) Upon a finding of probable cause, if the subject of the investigation is a licensee,



2 the board shall direct that a complaint be issued pursuant to this section, and if the



3 subject of the investigation is not a licensee, the board shall take appropriate action



4 pursuant to this chapter. Upon a finding of a lack of probable cause, the board shall



5 close the matter.



6 (4) In any case where probable cause has been determined pursuant to this section with



7 respect to a violation by a licensee, or where the board has received a written



8 complaint by any person furnishing grounds for a determination of probable cause

9 about a violation or where the board has received notice of a decision by the board



10 of accountancy of another state furnishing grounds, the board shall issue a



11 complaint setting forth appropriate charges and set a date for a hearing which shall



12 be conducted in accordance with KRS Chapter 13B.



13 (5) A licensee, after having been served with the notice of hearing and complaint as



14 provided for in subsection (4) of this section, shall file a written response within



15 twenty (20) days from the date he was served. If the respondent licensee fails to file



16 a timely response or fails to appear at the hearing, the board may hear evidence



17 against him and may enter a final order as shall be justified by the evidence.



18 (6) In a hearing under this section, the respondent licensee may appear in person or, in



19 the case of a firm, through a partner, or shareholder or other person with an



20 ownership interest.



21 (7) The evidence supporting the complaint shall be presented by the investigating



22 officer, by a board member designated for that purpose, or by counsel. A board



23 member who presents the evidence, or who has conducted the investigation of the



24 matter under this section, shall not participate in the board's decision of the matter.



25 (8) In a hearing under this section before the board or in acting upon the recommended

26 order of an administrative law judge[a hearing officer], a vote of a majority of all



27 members of the board then in office, other than a member disqualified by reason of



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1 subsection (7) of this section, shall be required to sustain any charge and to impose



2 any penalty with respect thereto.



3 (9) Any person adversely affected by any order of the board may obtain a review



4 thereof by filing a written petition for review with the Franklin Circuit Court in



5 accordance with KRS Chapter 13B.



6 (10) On rendering a final order to revoke, suspend, refuse to renew, or censure the holder



7 of a license to practice issued under this chapter, the board shall examine its records



8 to determine whether the respondent is authorized or licensed to practice as a

9 certified public accountant in any other state. If the board determines that the



10 respondent is authorized or licensed to practice in any other state, the board shall



11 notify the board of accountancy of the other state of its action by mail within thirty



12 (30) days of rendering the final order.



13 (11) The board may exchange information relating to proceedings resulting in



14 disciplinary action against licensees with the boards of accountancy of other states



15 and with other public authorities or private organizations having an interest in the



16 information.



17 Section 76. KRS 334.120 is amended to read as follows:



18 (1) Complaints against licensed persons shall be handled by the board in the following



19 manner:



20 (a) Any person desiring to make a complaint against a licensee under this chapter



21 shall reduce the complaint to writing and file it with the board.



22 (b) The board may conduct an investigation into any complaint which the board



23 feels may constitute a violation of this chapter or the administrative



24 regulations promulgated thereunder.



25 (c) The board may require that the licensee file a statement or report in writing as

26 to the facts and circumstances concerning the complaint together with other



27 information, material, or data reasonably related thereto.



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1 (d) The board may request the assistance of the Attorney General in connection



2 with an investigation.



3 (e) The board may employ the services of an administrative law judge[a hearing



4 officer] to conduct hearings, prehearing conferences, advise the board as to



5 legal matters, and provide other legal services deemed appropriate by the



6 board.



7 (2) If the board determines the charges made in the complaint are sufficient to warrant a



8 hearing to determine whether the license issued under this chapter shall be

9 suspended, revoked, or subject to reprimand or fine, it shall conduct a hearing in



10 accordance with KRS Chapter 13B.



11 (3) The provisions of this chapter shall in no way limit the jurisdiction and authority of



12 the Attorney General to take any necessary action under the Kentucky Consumer



13 Protection Act, KRS 367.110 to 367.300.



14 (4) The board may suspend, revoke, or levy a fine not to exceed one thousand dollars



15 ($1,000), refuse to issue or renew any license for a fixed period of time, place on



16 probation, issue a written reprimand to a licensee, or any combination thereof, based



17 on a finding of the board after hearing that a person licensed under the provisions of



18 this chapter has committed any of the following acts:



19 (a) Change of personal name, corporate name, charter, entity, or partnership name



20 or composition to avoid the imposition of liens or court action;



21 (b) The conviction of a felony, or a misdemeanor involving moral turpitude. The



22 record of conviction, or a copy thereof, certified by the clerk of the court or by



23 the judge in whose court the conviction is had, shall be conclusive evidence of



24 that conviction;



25 (c) Procuring of license by fraud or deceit practiced upon the board;

26 (d) Unethical conduct as defined by the board by promulgation of an



27 administrative regulation;



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1 (e) Engaging in any unfair, false, misleading, or deceptive act or practice;



2 (f) Incompetence or negligence in the practice of selling or fitting hearing



3 instruments; or



4 Section 77. KRS 338.081 is amended to read as follows:



5 (1) Hearings authorized by the provisions of this chapter may be conducted by an



6 administrative law judge[a hearing officer] appointed by the review commission to



7 serve in its place. Said administrative law judge[hearing officer] may be a full-time



8 employee[, serve by contract,] or be paid on a per diem basis at the discretion of the

9 review commission.



10 (2) In the conduct of these hearings, the review commission or administrative law



11 judge[hearing officer] may subpoena and examine witnesses, require the production



12 of evidence, administer oaths, and take testimony and depositions.



13 (3) After hearing an appeal, the review commission may sustain, modify or dismiss a



14 citation or penalty.



15 Section 78. KRS 345.070 is amended to read as follows:



16 Violations of the provisions of KRS 345.050 shall be deemed to be unfair labor practices



17 remedial by the board in the following manner.



18 (1) Whenever it is charged by a public employer or a labor organization that any person



19 has engaged in or is engaging in any unfair labor practices, the board, or any



20 administrative law judge[hearing officer] designated by the board, shall conduct an



21 administrative hearing in accordance with KRS Chapter 13B.



22 (2) If upon the preponderance of the evidence presented the board is of the opinion that



23 any person named in the charge has engaged in or is engaging in an unfair labor



24 practice, then it shall issue a final order requiring him to cease and desist from the



25 unfair labor practice, and to take any affirmative action including reinstatement of

26 firefighters with or without back pay, as will effectuate the policies of this chapter.



27 The final order may further require the person to make reports from time to time



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1 showing the extent to which he has complied with the order. If upon the



2 preponderance of the evidence presented the board is not of the opinion that the



3 person named in the charge has engaged in or is engaging in the unfair labor



4 practice, then the board shall issue a final order dismissing the complaint. No final



5 order shall issue based upon any unfair labor practice occurring more than six (6)



6 months prior to the filing of the charge with the board, unless the person aggrieved



7 thereby was prevented from filing the charge by reason of service in the Armed



8 Forces, in which event, the six (6) month period shall be computed from the day of

9 his discharge. No final order of the board shall require the reinstatement of any



10 individual as a firefighter who has been suspended or discharged, or the payment to



11 him of any back pay, if the individual was suspended or discharged for cause.



12 (3) Until a final order has been appealed, the board at any time, upon reasonable notice



13 and in the manner that it deems proper, may modify or set aside, in whole or in part,



14 any final order made or issued by it.



15 (4) The board or the charging party may petition for the enforcement of the final order



16 and for appropriate temporary relief or restraining order in the Circuit Court for the



17 county in which the violation occurred.



18 (5) Any person aggrieved by a final order of the board may obtain a review of the final



19 order by filing a petition in the Circuit Court assigned jurisdiction under subsection



20 (4) of this section in accordance with KRS Chapter 13B.



21 Section 79. KRS 350.0301 is amended to read as follows:



22 (1) Any person who considers himself aggrieved by any determination made by the



23 cabinet under this chapter may file, in accordance with administrative regulations



24 promulgated by the cabinet under the provisions of this chapter, a petition alleging



25 that the determination is contrary to law or fact and is injurious to him, the grounds

26 and reasons therefor, and demand a hearing. Unless the cabinet considers that the



27 petition is frivolous, it shall serve written notice of the petition on each person



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1 named therein and shall schedule a hearing before the cabinet not less than twenty-



2 one (21) days after the date of the notice unless the person complained against



3 waives in writing the twenty-one (21) day period. The right to demand a hearing



4 pursuant to this section shall be limited to a period of thirty (30) days after the



5 petitioner has had actual notice of the determination complained of, or could



6 reasonably have had notice. However, the petitioner shall have the opportunity to



7 contest the validity of an underlying notice of noncompliance in a timely-filed



8 demand for hearing to contest the validity of a cessation order issued for a failure to

9 abate the violation contained in the notice of noncompliance.



10 (2) All hearings, other than conferences, under this chapter shall be held before an



11 administrative law judge[a hearing officer], duly qualified to practice law in the



12 Commonwealth of Kentucky, who may be a full-time employee of the cabinet[,



13 serve by contract,] or be paid on a per diem basis in the discretion of the cabinet.



14 After the conclusion of the hearing, the administrative law judge[hearing officer]



15 shall within thirty (30) days make to the secretary a report and recommended order



16 which shall contain a finding of fact and a conclusion of law. If the secretary finds



17 upon written request of the administrative law judge[hearing officer] that additional



18 time is needed, the secretary may grant an extension. The administrative law



19 judge[hearing officer] shall serve a copy of his report and recommended order upon



20 all parties of record and their attorney of record to the proceeding, and they shall be



21 granted the right to file exceptions thereto within fourteen (14) days of service. Any



22 party may submit a written response to exceptions within twenty-one (21) days of



23 service of the report and recommended order. Exceptions and responses not timely



24 filed shall be noted and made a part of the record but shall not be considered by the



25 secretary in making a final order. The secretary shall consider the report, exceptions,

26 and recommended order and decide the case. The decision shall be served by mail



27 upon all parties and their attorney of record and shall be a final order of the cabinet.



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1 (3) Any party to a hearing under this subsection may be represented by counsel, may



2 make oral or written argument, offer testimony, cross-examine witnesses, or take



3 any combination of these actions. The record of the hearing shall be open to public



4 inspection, and copies thereof shall be made available to any person upon payment



5 of the actual cost of reproducing the original.



6 (4) All hearings conducted pursuant to this chapter shall be open to the public.



7 (5) The cabinet shall promulgate administrative regulations, pursuant to the provisions



8 set forth in this chapter, establishing formal and informal hearing procedures by

9 which any hearing shall, upon the written request of the operator, permittee, or



10 person, be held in the county or regional office where the surface coal mining



11 operation is located, before an impartial administrative law judge[hearing officer]



12 who is independent of any prosecutorial functions of the cabinet. The administrative



13 regulations shall provide for the conduct of hearings and investigation of any matter



14 relating to the regulation of surface coal mining and reclamation operations; provide



15 for the assessment and payment of civil penalties, including the placement of



16 proposed civil penalty assessments into an escrow account prior to a formal hearing



17 on the amount of the assessment; and provide for a waiver of the placement of the



18 proposed civil penalties into escrow for those individuals who demonstrate with



19 substantial evidence an inability to pay the proposed civil penalties into escrow. The



20 procedures developed pursuant to this subsection shall provide that the hearings be



21 held in the most expeditious manner possible within the time constraints established



22 under this chapter. No person who presided at a prior hearing shall either preside at



23 a subsequent hearing or participate in any further decision or subsequent



24 administrative appeal in the same matter.



25 (6) The cabinet may promulgate administrative regulations pursuant to the provisions

26 set forth in this chapter establishing procedures for the holding of administrative



27 conferences needed to implement the provisions of this chapter.



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1 (7) The secretary may designate a deputy to sign any or all final orders of the cabinet,



2 whether the orders are the result of hearing or agreement.



3 Section 80. KRS 351.185 is amended to read as follows:



4 (1) Records of drug or alcohol test results, written or otherwise, received by the Office



5 of Mine Safety and Licensing, its contractors, subcontractors, or other employees



6 are confidential communications and exempt from disclosure under the Kentucky



7 Open Records Act, except as follows:



8 (a) Where release of the information is authorized solely pursuant to a written

9 consent form signed voluntarily by the person tested. The consent form shall



10 contain the following:



11 1. The name of the person who is authorized to obtain the information;



12 2. The purpose of the disclosure;



13 3. The precise information to be disclosed;



14 4. The duration of the consent; and



15 5. The signature of the person authorizing the release of the information;



16 (b) Where release of the information is compelled by an administrative law



17 judge[a hearing officer] or court of competent jurisdiction pursuant to an



18 appeal taken under KRS 351.182, 351.183, 351.184, 351.185, 351.102,



19 351.103, 351.1041, 351.106, 351.110, 351.120, 351.127, 351.1291, 351.170,



20 352.010, 352.180, 352.210, and 352.390;



21 (c) Where release of the information is relevant to a legal claim asserted by the



22 applicant;



23 (d) Where the information is used by the entity conducting drug or alcohol testing



24 when consulting with legal counsel in connection with matters brought under



25 or related to KRS 351.182, 351.183, 351.184, 351.185, 351.102, 351.103,

26 351.1041, 351.106, 351.110, 351.120, 351.127, 351.1291, 351.170, 352.010,



27 352.180, 352.210, and 352.390, or in its defense of civil or administrative



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1 actions related to the testing or results; or



2 (e) Where release of the information is deemed appropriate by the Mine Safety



3 Review Commission or a court of competent jurisdiction in disciplinary



4 proceeding brought under the terms of KRS 351.182, 351.183, 351.184,



5 351.185, 351.102, 351.103, 351.1041, 351.106, 351.110, 351.120, 351.127,



6 351.1291, 351.170, 352.180, 352.210, and 352.390.



7 (2) Information on drug and alcohol test results for tests administered pursuant to KRS



8 351.182, 351.183, 351.184, 351.185, 351.102, 351.103, 351.1041, 351.106,

9 351.110, 351.120, 351.127, 351.1291, 351.170, 352.010, 352.180, 352.210, and



10 352.390 shall not be released or used in any criminal proceeding against the



11 applicant.



12 Section 81. KRS 405.440 is amended to read as follows:



13 The notice of a minimum monthly support obligation shall be served in person or by



14 certified mail, return receipt requested, and shall include at least the following:



15 (1) The name of the child for whom the support obligation is owed;



16 (2) The amount of the support debt accrued or accruing;



17 (3) A statement that the parent's earnings and property, both real and personal, are



18 subject to judicial and administrative enforcement;



19 (4) That he may dispute the obligation amount or any other matter contained in the



20 notice by requesting a dispute hearing within twenty (20) days;



21 (5) That, unless there is good cause as determined by the secretary for his failure to



22 request a hearing, if he does not request a hearing, his agreement will be presumed



23 and the first payment will be due twenty (20) days after receipt of the notice; and



24 (6) That if he requests a hearing and fails to appear, the administrative law



25 judge[hearing officer] shall affirm the determination of minimum monthly support

26 obligation.



27 Section 82. KRS 405.450 is amended to read as follows:



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1 (1) An administrative law judge[A hearing officer] appointed by the secretary shall



2 conduct dispute hearings in the county of the child or parent's residence or any other



3 location acceptable to the parent, which shall be scheduled within sixty (60) days of



4 the parent's request for a hearing. The dispute hearing proceedings shall be



5 conducted in accordance with KRS Chapter 13B.



6 (2) The parent's obligation to pay minimum monthly support shall be stayed until his



7 receipt of the final order.



8 (3) The parent or the cabinet may file an appeal in the Circuit Court in the county of the

9 parent's or the child's residence in accordance with KRS Chapter 13B.



10 (4) The parent shall, during the pendency of his appeal from the final order, absent a



11 showing of indigency or need exceeding the child's need, pay the minimum monthly



12 support obligation to the cabinet, which shall, if the parent's appeal is successful,



13 return his money together with interest at the legal rate for judgments.



14 (5) If the cabinet elects to conduct the modification review as specified in KRS 405.430



15 (6), either party may contest the adjustment to the obligation amount within thirty



16 (30) days after the date of the notice of the adjustment by requesting a review under



17 subsection (1) of this section and, if appropriate, a request for adjustment of the



18 order as permitted by this chapter.



19 Section 83. KRS 405.460 is amended to read as follows:



20 (1) When an arrearage has accrued that is equal to the amount of support payable for



21 one (1) month on court-ordered or administratively-determined child support, which



22 was set prior to July 15, 1988, the cabinet may use judicial or administrative



23 remedies to enforce the support obligation without the necessity of any action by an



24 administrative law judge[a hearing officer].



25 (2) In cases where the obligor has not requested a dispute hearing, action to collect the

26 debt may be taken twenty (20) days after the obligor's receipt of the notice of



27 support obligation or his refusal to accept the notice.



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1 Section 84. KRS 405.490 is amended to read as follows:



2 (1) Any person, including the obligor, who has been served with an order to withhold



3 and deliver the obligor's property shall answer the order within twenty (20) days.



4 (2) The person in possession of any obligor's property shall withhold it and deliver it to



5 the cabinet in accordance with the secretary's directions; or the obligor may offer a



6 bond which is satisfactory to the cabinet.



7 (3) The person in possession of obligor's property shall have no liability or further



8 responsibility after fulfilling the duties under this section.

9 (4) The obligor may dispute the amount of delinquent support by requesting a dispute



10 hearing with twenty (20) days.



11 (5) If the obligor does not request a hearing, acknowledgment of the obligation is



12 presumed and the secretary may apply the withheld property to the delinquent child



13 support obligation.



14 (6) If a hearing is requested, when property or a bond is released to the secretary



15 pursuant to an order to withhold and deliver property, the secretary shall hold the



16 property or bond, pending determination of the obligor's liability by an



17 administrative law judge[a hearing officer], pursuant to KRS 405.450.



18 (7) Upon a decision adverse to the Cabinet for Health and Family Services by a



19 administrative law judge[hearing officer], of the Circuit Court on appeal, the



20 cabinet shall return the property together with interest at the legal rate for



21 judgments.



22 Section 85. KRS 422.300 is amended to read as follows:



23 Medical charts or records of any hospital licensed under KRS 216B.105 that are



24 susceptible to photostatic reproduction may be proved as to foundation, identity and



25 authenticity without any preliminary testimony, by use of legible and durable copies,

26 certified in the manner provided herein by the employee of the hospital charged with the



27 responsibility of being custodian of the originals thereof. Said copies may be used in any



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1 trial, hearing, deposition or any other judicial or administrative action or proceeding,



2 whether civil or criminal, in lieu of the original charts or records which, however, the



3 hospital shall hold available during the pendency of the action or proceeding for



4 inspection and comparison by the court, tribunal or administrative law judge[hearing



5 officer] and by the parties and their attorneys of record.



6 Section 86. KRS 635.100 is amended to read as follows:



7 (1) Any child committed to or in the custody of the Department of Juvenile Justice who



8 escapes or is absent without leave from his or her placement shall be taken into

9 custody and returned to the custody of the Department of Juvenile Justice by any



10 juvenile probation officer or by any peace officer on direction of the Department of



11 Juvenile Justice.



12 (2) Any child committed to the Department of Juvenile Justice who is placed on



13 supervised placement by the Department of Juvenile Justice and who violates the



14 terms or conditions of supervised placement may be returned to active custody of



15 the Department of Juvenile Justice and shall be taken into custody by any juvenile



16 probation officer or by any peace officer on direction of the Department of Juvenile



17 Justice.



18 (3) A child taken into custody may be held in a Department of Juvenile Justice facility,



19 program, or contract facility, prior to the administrative hearing, provided a



20 preliminary hearing is held by a person designated by the Department of Juvenile



21 Justice within five (5) days, exclusive of weekends and holidays, of the holding,



22 unless the child or his representative request or agree to a longer period of time, to



23 determine if there is probable cause to believe that the child violated his supervised



24 placement conditions and, if so, to determine if the best interest of the child requires



25 that the child be held in custody pending an administrative hearing pursuant to

26 subsection (5) of this section. The child and his parent or other person exercising



27 custodial control or supervision shall be given an opportunity to be heard and to be



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1 represented by counsel at the preliminary hearing.



2 (4) A child taken into custody as provided in subsection (1) of this section shall be



3 returned to the active custody of the Department of Juvenile Justice within three (3)



4 days, exclusive of weekends and holidays, and no administrative hearing shall be



5 required.



6 (5) If the child is returned to the active custody of the Department of Juvenile Justice as



7 provided in subsection (3) of this section an administrative hearing shall be held



8 within ten (10) days, exclusive of weekends and holidays, of the preliminary

9 hearing unless the child and his representative request or agree to a longer period of



10 time. The hearing shall be held by one (1) administrative law judge[hearing officer]



11 designated by the Department of Juvenile Justice to hear such matters at which time



12 the child and his parent or other person exercising custodial control or supervision



13 shall be given an opportunity to be heard and be represented by counsel.



14 (6) The department shall have the power to administer oaths and to issue subpoenas



15 compelling the attendance of witnesses as it may deem necessary to the case of any



16 child before it. Disobedience of a subpoena may be punished as contempt of court,



17 after a hearing before the committing juvenile court.



18 (7) Administrative hearings conducted under this section and administrative regulations



19 promulgated under this section shall be exempt from the requirements of KRS



20 Chapter 13B.



21 (8) The Department of Juvenile Justice shall promulgate administrative regulations to



22 govern at least the following aspects of this section:



23 (a) Commissioner's warrant;



24 (b) Procedural aspects of the hearing;



25 (c) Burden of proof;

26 (d) Standard of proof; and



27 (e) Administrative appeal process.



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1 Section 87. KRS 13B.150 is amended to read as follows:



2 (1) Review of a final order shall be conducted by the court without a jury and shall be



3 confined to the record, unless there is fraud or misconduct involving a party



4 engaged in administration of this chapter. The court, upon request, may hear oral



5 argument and receive written briefs.



6 (2) The court shall not substitute its judgment for that of the agency as to the weight of



7 the evidence on questions of fact. The court may affirm the final order or it may



8 reverse the final order, in whole or in part, and remand the case for further

9 proceedings if it finds the agency's final order is:



10 (a) In violation of constitutional or statutory provisions;



11 (b) In excess of the statutory authority of the agency;



12 (c) Without support of substantial evidence on the whole record;



13 (d) Arbitrary, capricious, or characterized by abuse of discretion;



14 (e) Based on an ex parte communication which substantially prejudiced the rights



15 of any party and likely affected the outcome of the hearing;



16 (f) Prejudiced by a failure of the person conducting a proceeding to be



17 disqualified pursuant to Section 2 of this Act[KRS 13B.040(2)]; or



18 (g) Deficient as otherwise provided by law.



19 Section 88. KRS 164.748 is amended to read as follows:



20 The board shall have the following powers, functions, and duties:



21 (1) To provide loan guarantees, upon terms and conditions the board may prescribe



22 within the limitations provided by KRS 164.740 to 164.770, and the federal act in



23 respect of loans to eligible borrowers. The board may require additional security,



24 including endorsers it deems necessary and desirable and is not in contravention of



25 the federal act. The purpose of the loans shall be to assist individuals in meeting the

26 expense of their education.



27 (2) To enter into agreements and undertakings with the secretary as may be required



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1 and necessary pursuant to the federal act in order to constitute the authority as a



2 state agency qualified and empowered to insure student loans within the meaning of



3 the federal act and to qualify insured student loans for interest payments,



4 reimbursement, reinsurance, and other benefits available under the federal act to the



5 authority.



6 (3) To issue loan guarantees in respect of loans made to eligible borrowers by



7 participating lenders, including the authority. No loan guarantee shall be issued,



8 executed, and delivered by the authority unless any insured student loan resulting

9 shall be the subject of agreements pursuant to the federal act by which the insured



10 student loan is made the subject of interest payments, reimbursements, reinsurance,



11 and other benefits to the extent provided by the federal act.



12 (4) To promulgate administrative regulations pursuant to KRS Chapter 13A pertaining



13 to insured student loans, loan guarantees, loans, and work-study payments and the



14 awarding of grants, scholarships, and honorary scholarships, as provided in KRS



15 164.740 to 164.7891.



16 (5) To enter into contracts with eligible lenders, approved by the state to lend moneys,



17 upon terms and conditions agreed upon between the authority and the eligible



18 lender, to provide for the administration of student financial assistance programs,



19 including, but not by way of limitation, the authority's program of insured student



20 loans.



21 (6) To enter into contracts with eligible institutions, upon terms and conditions agreed



22 upon between the authority and the eligible institution, to provide for the



23 administration of student financial assistance programs, including, but not by way



24 of limitation, the authority's program of insured student loans.



25 (7) To receive funds from any source, public or private, by gift, grant, bequest, loan, or

26 otherwise, either absolutely or in trust, and to expend them, on behalf of the



27 authority and for any of its purposes; and to acquire from any source, public or



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1 private, by purchase, lease, gift, bequest, or devise, any property, real, personal, or



2 mixed, absolutely or in trust, and to hold, administer, and dispose of it, on behalf of



3 the authority and for any of its purposes. The authority shall not make its debts



4 payable out of any funds except those of the authority.



5 (8) To administer federal funds allotted to the state in respect of insured student loans,



6 loan guarantees, loans, work-study, grants, scholarships, administrative costs, and



7 related matters.



8 (9) To sue and be sued in the name of the authority and to plead and be impleaded, and

9 to purchase, on behalf of members of the board or officers and employees of the



10 authority, liability insurance for individual protection from liability for acts and



11 omissions committed in the course and scope of the individual's employment or



12 service.



13 (10) To collect from individual borrowers loans made by the authority and insured



14 student loans on which the authority has been compelled to meet its loan guarantee



15 obligations following the inability of the participating lender involved to collect the



16 insured student loans.



17 (11) To gather information on all loans, scholarships, honorary scholarships, grants, and



18 work-study opportunities available to Kentucky residents attending or planning to



19 attend an eligible institution and to disseminate the information through the



20 methods of mass communication necessary to ensure that Kentucky residents are



21 aware of financial resources available to those attending or desiring to attend an



22 eligible institution.



23 (12) To request reports from each eligible institution or eligible lender necessary for the



24 effective performance of its duties and to publish the information it deems



25 necessary.

26 (13) To approve, disapprove, limit, suspend, or terminate the participation of, or take



27 emergency action to withhold authority funds and insured student loans from



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1 eligible institutions or eligible lenders in programs administered by the board,



2 subject to the provisions of the federal act and this chapter.



3 (14) To perform other acts necessary or appropriate to carry out effectively the purposes



4 of the authority as provided by KRS 164.740 to 164.7891 and KRS 164A.010 to



5 164A.380.



6 (15) If any conflict exists between KRS 164.740 to 164.770 and the federal act, which



7 conflict would result in a loss by the authority of any federal funds, including, but



8 not by way of limitation, federal funds made available to the authority under the

9 federal act, including interest payments and reimbursement for insured student loans



10 in default, to promulgate regulations and policies consistent with the federal act not



11 in derogation of the Constitution and general laws of the Commonwealth.



12 (16) Except where specifically prohibited by law, to secure data from any other



13 Commonwealth of Kentucky agency or instrumentality or from any other source in



14 furtherance of any purposes of the authority related to any program or function



15 administered by the authority.



16 (17) To enter into contracts with public or private nonprofit agencies, eligible to hold or



17 insure student loans under the federal act, to provide for the exchange of



18 information, not in contravention of any federal or state law, or the provision of



19 services necessary to the administration of the authority's insured student loan



20 programs.



21 (18) To enter into contracts with the Kentucky Higher Education Student Loan



22 Corporation, the Kentucky Educational Savings Plan Trust, and the Commonwealth



23 postsecondary education prepaid tuition trust fund as necessary or appropriate to



24 facilitate their common administration, operation, and management, as required



25 pursuant to KRS Chapter 164A.

26 (19) To act as the board of directors of the Commonwealth postsecondary education



27 prepaid tuition trust fund under KRS 164A.700 to 164A.709.



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1 (20) To conduct, in accordance with KRS Chapter 13B, administrative hearings



2 pertaining to any adverse action by the authority affecting participating institutions



3 and lenders, eligible students, and borrowers of loans made by the authority and



4 insured student loans guaranteed by the authority. Wage garnishment hearings and



5 administrative review procedures pertaining to disputes concerning setoff of federal



6 tax refunds shall be exempt[ under KRS 13B.020] and shall be conducted in



7 accordance with applicable federal law. In an exempt hearing, the board or a



8 administrative law judge[hearing officer] designated by the board may issue

9 administrative subpoenas for the attendance of witnesses and the production of



10 documents relevant to the issues in dispute. Compliance with the subpoenas shall be



11 enforceable by a court of competent jurisdiction.



12 (21) To provide upon termination of the retirement plan authorized by Executive Order



13 75-964 to active and retired employees of the authority who participated in that



14 plan, health insurance premiums and disability insurance benefits as provided to



15 employees who participate in a state-administered retirement system pursuant to



16 KRS 18A.225 to 18A.229, 61.600, and 61.702.



17 (22) To delegate to the executive director general supervision and direction over the



18 administrative function of the authority and its employees in carrying out the



19 policies, programs, administrative regulations, and directives of the board.



20 Section 89. KRS 190.058 is amended to read as follows:



21 (1) The Motor Vehicle Commission is hereby created as an agency of the



22 Commonwealth to carry out the functions and duties conferred upon it by this



23 section.



24 (2) The commission shall consist of twelve (12) members, eleven (11) of whom shall



25 be appointed by the Governor, and the twelfth shall be the commissioner of the

26 Department of Vehicle Regulation. The appointed members shall be:



27 (a) One (1) representative of an automobile manufacturer;



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1 (b) One (1) representative of automobile wholesalers;



2 (c) One (1) representative of consumers who shall have no direct financial



3 interest in the industry;



4 (d) Four (4) new motor vehicle dealers, but no more than two (2) shall represent



5 the same automobile manufacturer as a franchise dealer; and



6 (e) Four (4) used motor vehicle dealers.



7 (3) In addition to the requirements of membership on the commission in subsection (2),



8 the following requirements shall apply to the composition of the commission:

9 (a) No more than seven (7) members shall be from the same political party; and



10 (b) From the eight (8) members specified in subsection (2)(d) and (e), seven (7)



11 shall be from separate Supreme Court districts.



12 (4) Each member shall serve for a term of three (3) years. The staggered terms of



13 membership dating from the gubernatorial appointments of July 15, 1982, shall



14 remain in effect.



15 (5) (a) Members of the commission shall qualify by taking the constitutional oath of



16 office which shall, with the certificate of appointment, be evidence of the



17 authority of the member to act.



18 (b) Each member of the commission shall be entitled to two hundred dollars



19 ($200) per day for each day actually engaged in the duties of the office,



20 including time spent in necessary travel to and from meetings and otherwise,



21 together with all travel and other necessary expenses incurred while



22 performing official duties.



23 (6) The commission shall hold a regular annual meeting in September of each year and



24 elect a chairman and vice chairman to serve for the ensuing year. The commission



25 shall have regular meetings as the majority of the members specifies and special

26 meetings at the request of any five (5) members. Reasonable notice of all meetings



27 shall be given as commission administrative regulations prescribe.



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1 (7) A member of the commission shall not participate in the deliberations of the



2 commission and shall not vote on any matter before the commission in which the



3 member has a financial interest or is an interested party. A member shall voluntarily



4 disqualify himself or herself from deliberating or voting upon matters that affect the



5 member but shall not be required to disqualify from matters of general interest



6 affecting the member, the member's employer, or a business unit in which the



7 member has a financial interest as a member of a class of persons to be affected by



8 an administrative regulation or order of the commission.

9 (8) A majority of the commissioners, excluding any disqualified commissioner, shall



10 constitute a quorum for the transaction of any business, for the performance of any



11 duty, or for the exercise of any power of the commission. A vacancy in the



12 commission, whether due to disqualification or otherwise, shall not impair the right



13 of the remaining commissioners to exercise all the powers of the commission.



14 (9) The commission shall employ an executive director who shall be the chief



15 administrative officer of the commission. He shall maintain all minutes of the



16 commission proceedings and shall be custodian of the files and records of the



17 commission. The executive director shall employ the staff authorized by the



18 commission. The commission may, by interagency contract, utilize assistance of any



19 state agency.



20 (10) The commission shall deposit all moneys received by it from license fees paid under



21 this law with the State Treasurer, who shall keep them in a separate fund to be



22 known as the "Motor Vehicle Commission Fund." The commission may use this



23 fund for salaries, wages, per diem, professional and consulting fees, grants, loans,



24 contracts, travel expenses, equipment, office rent and expenses, and other necessary



25 expenses incurred in carrying out its duties under this section as provided by

26 legislative appropriation. At the close of each biennium, the unexpended balance



27 remaining in the motor vehicle commission fund shall be transferred to the general



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1 fund.



2 (11) The commission shall administer the provisions of this section, establish the



3 qualifications of manufacturers and dealers, and insure that the distribution and sale



4 of new motor vehicles is conducted as provided in this chapter and under the



5 commission's administrative regulations.



6 (12) The commission may issue orders and make determinations necessary to carry out



7 the provisions of KRS 190.010 to 190.080. The orders shall set forth the findings on



8 which the order is based, and the reason for the particular action taken. All orders

9 shall be signed by the chairman or vice chairman and attested by the executive



10 director.



11 (13) The commission may hold hearings that shall be conducted in accordance with KRS



12 Chapter 13B. A member of the commission shall not participate in the deliberations



13 of the commission and shall not vote on any matter if the member has been



14 disqualified on any of the grounds under Section 2 of this Act[KRS 13B.040].



15 (14) The commission may cause legal proceedings to be instituted to enforce the



16 provisions of this section and its administrative regulations, orders, and decisions. If



17 it appears from any investigation of a possible violation of any other law or



18 administrative regulation that a violation of the provisions of KRS 190.010 to



19 190.080 may have occurred, the matter shall be referred to the commission to



20 determine whether proceedings under KRS 190.010 to 190.080 are appropriate. The



21 commission may make contracts and execute instruments necessary or convenient



22 to the exercise of its power or performance of its duties.



23 (15) The availability of administrative procedures under this section shall not preclude



24 the utilization of other remedies for violation of the provisions of this chapter which



25 are available to the affected parties, including actions for injunctive relief.

26 Section 90. Each cabinet and independent agency of the executive branch of state



27 government shall make its initial report to the board on October 1, 2007, and the first



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1 administrative law judges shall be authorized by the General Assembly at the 2008



2 Regular Session.



3 Each cabinet and independent agency of the executive branch of state government



4 shall make an initial budget recommendation to the Governor and to the Legislative



5 Research Commission by October 1, 2007 as to the cost of implementation of the



6 administrative law judge program.



7 The Finance and Administration Cabinet shall secure suitable office facilities for



8 the board in the City of Frankfort or Franklin County.

9 Section 91. KRS 351.1041 is amended to read as follows:



10 (1) The Mine Safety Review Commission is created as an independent governmental



11 entity attached to the Environmental and Public Protection Cabinet, Office of the



12 Secretary, for administrative purposes. The commission shall:



13 (a) Conduct hearings and issue orders regarding a licensee, coal operation, or



14 other person involved in the mining of coal in accordance with KRS 351.194;



15 (b) Jointly with the department establish a process for the department's referral of



16 allegations of mine safety violations, violation of a miner's drug- and alcohol-



17 free condition of certification, or supervisory personnel's failure to



18 immediately report a fatal accident or an accident involving serious physical



19 injury to the commission for adjudication;



20 (c) Make any recommendations to the department that it believes appropriate



21 upon its review, consideration, and analysis of:



22 1. All reports of coal mining fatalities provided by the commissioner under



23 KRS 351.070(14);



24 2. Any case in which a miner or a mine owner or operator, in the



25 professional opinion of the department has a history of significant and

26 substantial safety violations even though there has been no serious



27 physical injury or death resulting from the violations;



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1 3. Any case in which a miner or a mine owner or operator has been



2 convicted of a criminal charge for a violation of a federal mine safety



3 standard or standards; and



4 4. Any case in which the Federal Mine Safety and Health Administration



5 has made a recommendation relating to certification of an individual



6 certified under this chapter.



7 (2) The Mine Safety Review Commission shall consist of three (3) members appointed



8 by the Governor subject to the consent of the Senate and the House of

9 Representatives in accordance with KRS 11.160. Of the members of the Mine



10 Safety Review Commission first appointed under this section, one (1) shall be



11 appointed for a term of one (1) year; one (1) shall be appointed for a term of two (2)



12 years; and one (1) shall be appointed for a term of three (3) years. After the initial



13 appointments, members of the board shall be appointed for terms of four (4) years.



14 A member may be reappointed at the expiration of his or her previous term.



15 Members shall continue to serve until a successor is appointed and qualified.



16 (3) The members of the Mine Safety Review Commission shall have the qualifications



17 required of Judges of the Court of Appeals, except for residence in a district, and



18 shall be subject to the same standards of conduct made applicable to a part-time



19 judge by the Rules of the Kentucky Supreme Court. The members shall receive the



20 per diem equivalent of the salary of a Judge of the Court of Appeals for each day



21 spent in conducting the business of the commission.



22 (4) The Governor shall designate a member of the Mine Safety Review Commission to



23 serve as chair and shall fill any vacancy in the office of chair.



24 (5) The Governor may remove any member for good cause, including violation of the



25 Code of Judicial Conduct and repeated failure to perform satisfactorily the specific

26 duties assigned in this chapter or KRS Chapter 352. The Governor may remove the



27 member only after furnishing him or her with a written copy of the charges against



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1 that member and holding a public hearing if requested by the member.



2 (6) The commission shall meet on the call of the chair or a majority of the members of



3 the commission.



4 (7) The Environmental and Public Protection Cabinet shall provide administrative



5 services to the Mine Safety Review Commission. If the commission deems it



6 necessary to employ administrative law judges[hearing officers] to assist it, the



7 Environmental and Public Protection Cabinet shall assign administrative law



8 judges[employ hearing officers] to assist the commission in accordance with KRS

9 Chapter 13B, notwithstanding the provisions of KRS 13B.030(2)(b).



10 (8) The commission may conduct hearings, compel the attendance of witnesses,



11 administer oaths, and conduct oversight activities as may be required to ensure the



12 full implementation of its duties.



13 (9) The department shall provide the Mine Safety Review Commission with all



14 information requested by the commission for the fulfillment of its responsibilities



15 under this chapter and KRS Chapter 352.



16 (10) The secretary of the Environmental and Public Protection Cabinet shall effectuate



17 the hiring of any staff deemed necessary and affordable for the efficient operations



18 of the Mine Safety Review Commission. This may include an executive director,



19 general counsel, or other administrative support positions, to be appointed in



20 accordance with KRS 12.010 and 12.050.



21 Section 92. The following KRS sections are repealed:



22 13B.030 Powers of agency head -- Hearing officers.



23 13B.040 Qualifications of hearing officer.



24 15.111 Division of Administrative Hearings.



25 Section 93. The implementation schedule for this Act shall be:

26 (1) Sections 1, 2, 3, and 6 of this Act and the administrative law board shall



27 become effective on the effective date of this Act.



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1 (2) Recommendations for members of the Administrative Law Board shall be



2 submitted to the Governor no later than July 15, 2007.



3 (3) The Governor shall appoint members to the Administrative Law Board no



4 later than August 15, 2007. The Administrative Law Board shall enter upon its duties on



5 September 1, 2007.



6 (4) The number of administrative law judges shall be specified by the 2008



7 Regular Session of the General Assembly.



8 (5) The board shall submit names of candidates for administrative law judge

9 positions to the Governor not later than August 1, 2008.



10 (6) The Governor shall make appointments for all authorized administrative law



11 judge positions not later than September 1, 2008.



12 (7) The initial administrative law judges shall take office on September 15, 2008,



13 shall begin their duties with agencies on October 1, 2008, and shall be subject to



14 confirmation by the Senate at the 2009 Regular Session of the General Assembly.



15 (8) Sections 4 and 5, and Sections 7 through 92 of this Act shall become effective



16 on October 1, 2008.









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