Frankfort

Under House Bill 277, which Rep. Riggs is co-sponsoring, all local taxing districts would generally be required to adopt a standard form for the collection of any revenue tied to a business’ net profits, gross receipts and occupational license taxes.  Only those jurisdictions granted an exception by the Secretary of State’s office would be exempt once the law is fully in effect.

 “This bill builds on the General Assembly’s work last year work to create a ‘one-stop’ location online to help businesses interacting with state government,” said Rep. Riggs, a Jeffersontown legislator who chairs the House Local Government Committee.  “It has the strong support from a variety of business organizations, including the National Federation of Independent Businesses and Associated General Contractors, because it can be a nightmare to comply with so many jurisdictions.  Personally, I don’t think there is a more pro-business bill being discussed this year.”

The House Local Government Committee will meet at noon tomorrow (Wed.) in Room 131 of the Capitol Annex.

He noted that the act has a long history in our country, dating back to the Civil War. The Federal Government created a new False Claims Act in 1986, and now more than two dozen states have their own version.

Under the Speaker’s bill, those found guilty would be liable for up to three times the amount they had fraudulently billed the state; whistleblowers will be eligible to receive anywhere from 15 to 30 percent of the monies recovered as a reward for their service. Other civil penalties and attorney fees would be an additional cost for those found guilty.

Speaker Stumbo pointed to successes other states have seen using their False Claims Acts. In 1998, for example, California recouped $30 million from a computer manufacturer found to have sold the state defective computers; and in 2005, that state got $43.1 million from a company not fulfilling a contract to provide energy-efficient heating and cooling equipment to San Francisco schools. In 2001, Texas got $14.5 million from a hospital that had filed false paperwork, reported charity work it didn’t do and offered financial kickbacks. “These recoveries would not be possible if we just focus on Medicaid, as some states have done,” explained Stumbo. “I believe we must fight fraud on a broad front.” Since 1986, according to the False Claims Act Legal Center, more than $25 billion has been recovered by False Claims Acts, with a substantial portion coming from healthcare companies.

More information can be found online at http://www.taf.org/statefca.htm.

“With this one bill, we can improve oversight of critical state-run programs like Medicaid; we can be better stewards of each taxpayer dollar; and we can give pause to those criminals who think they can get away with stealing the tax payers’ money,” Speaker Stumbo said. “There is only so much our law enforcement and auditing officials can do and a limit to how far they can reach; this will put every citizen on the look-out for fraud.”

The legislation calls for the whistleblower to begin legal proceedings and gives the Attorney General the option to join on behalf of the state, with that office eligible for a portion of any amount awarded.

Speaker Stumbo noted that he had pushed similar legislation while he was Attorney General, and hoped that “this time we can get it across the finish line.” He added that both the current Attorney General and the Cabinet for Health and Family Services – the main enforcers of the bill – have helped form the legislation.

The Speaker’s bill could make Kentucky eligible for 10 percent more money recovered under Medicaid fraud. This is subject to federal approval, but it would let Kentucky receive up to 40 percent of the funds rather than 30 percent, which mirrors the traditional rate the state provides as part of its match for the $5 billion-plus program. The remaining funds would principally go to the federal government and the one who brought the initial legal action.

He said that the law does not create new levels of fraud, but offers an avenue for more cases to be prosecuted. It also does not apply in tax-related cases or those solely involving local governments. “This legislation has a lot of potential, and I’m hoping we can move it through the House quickly,” Speaker Stumbo said. “The sooner we can get it enacted, the sooner we can bring about the kind of accountability Kentuckians deserve – not just in Medicaid, but everywhere in state government.”

The “Human Trafficking Victims Rights Act” would primarily target those individuals who exploit children for sexual purposes by increasing penalties and prison sentences.  The legislation would also provide better training for victims, advocates and law enforcement to recognize signs of human and child trafficking to take action more quickly and appropriately. 

“Victims of human trafficking are subjected to force, fraud, or coercion, for the purpose of sexual exploitation or forced labor,” said Rep. Overly.  “Victims can be adult men and women but unfortunately, the incidence of trafficking children has risen at an alarming pace in Kentucky and we need to stem the tide before we lose this battle.”

According to Catholic Charities of Louisville, there have been 67 documented cases of human trafficking over the last four years in Kentucky with 135 victims receiving services.   The Kentucky Rescue and Restore Coalition has been at the forefront of this issue since receiving a federal grant to develop a statewide human trafficking system and strategies to address human trafficking.  The Coalition is made up of the Catholic Charities, the Kentucky Association of Sexual Assault Programs (KASAP),  along with several of their members including Bluegrass Rape Crisis Center, Purchase Area Sexual Assault and Child Advocacy Center, Women’s Crisis Center and the Adanta Sexual Assault Resource Center. 

Specifically, the tougher legislation would

• Create a Human Trafficking Victims Fund from fines and asset forfeiture/seizure provisions to fund programs that serve children/victims of human trafficking
• Establish a special prosecution division within the Kentucky State Police to identify and investigate those involved in human trafficking
• Provide for increased fines and penalties for commercial sexual exploitation of children from $500 to $10,000 with those proceeds also going into the fund
• Increase penalties for sexually exploitation of minors from a Class A misdemeanor to a Class C felony

Other components of the legislation would address sexual and adult human trafficking offenses and would

• Attach seizure and asset forfeiture provisions to human trafficking statutes, with 50% funds going to the Human Trafficking Victim Fund and the other 50% to be divided between law enforcement and prosecutors
• Make it a crime to require a victim to obtain false identification
• Advise victims of their rights
• Provide a mechanism to make victims financially whole when they are forced to labor without wages or where wage theft has occurred

“The gut-wrenching reality that human beings, especially our children, are still being sold into sexual slavery compels us to act,” said Rep. Tilley, chair of the House Judiciary Committee.  “This bill will bring those criminals who peddle such exploitation, violence and abuse to justice.”

Rep. Susan Westrom added, “This legislation demonstrates that Kentucky is willing to move forward with solutions that can be implemented as the public becomes more aware of this crime in their communities.”

Filling the Capitol Rotunda were representatives from agencies and organizations who traveled to Frankfort to rally behind the new initiatives.

“I have seen that modern-day slavery is flourishing in Kentucky communities…just beneath the surface,” said MarissaCastellanos, Program Manager of Kentucky Rescue and Restore Victims of Human Trafficking within the Catholic Charities of Louisville.  “We should all be outraged that these crimes are being committed in our communities and that the perpetrators often remain free from punishment while the victims live as virtual slaves to exploitation, violence, and abuse.”

Other speakers at the press conference included Sister Larraine Lauter, the Minister for Social Responsibility at Church of Epiphany, a Roman Catholic community of the Archdiocese of Louisville and Patrick Hughes, Deputy Chief Attorney General.

]]> http://kyhousedems.com/2012/02/03/rep-sannie-overly-files-bill-to-strengthen-kentuckys-human-trafficking-laws/feed/ 0 http://kyhousedems.com/2012/02/02/house-speaker-greg-stumbo-files-bill-to-stop-epidemic-of-prescription-drug-abuse/ http://kyhousedems.com/2012/02/02/house-speaker-greg-stumbo-files-bill-to-stop-epidemic-of-prescription-drug-abuse/#comments Thu, 02 Feb 2012 21:29:36 +0000 Kathy Groob http://kyhousedems.novemberstrategies.com/?p=967 Frankfort – Building on his previous work as a state legislator and as Attorney General, House Speaker Greg Stumbo filed legislation today that would make it easier for law enforcement to target and then stop prescription drug abuse.

“This epidemic truly knows no bounds, and it’s poised to get much worse if we do nothing,” said Speaker Stumbo, D-Prestonsburg.  “My approach will help us end the deadly flow of these drugs both now and however the battlefield may change in the future.”

Under his legislation, the state’s nationally recognized KASPER program – which stands for Kentucky All Schedule Prescription Electronic Reporting – would be moved from the Cabinet for Health and Family Services to the Attorney General’s office.  In turn, that office, the Kentucky State Police and the state’s medical licensure boards would be called upon to work closely together and share any reports of abuse they discover.

Commonwealth’s Attorneys and County Attorneys would be added to the list of professions that could also access KASPER, and Medicaid would monitor prescribers in their program as well.

 All prescribers would be required to register with KASPER, too.  According to the Cabinet for Health and Family Services, less than a third of prescribers and less than a fourth of pharmacists had accounts as of 2010.  Once registered, prescribers will be required to run KASPER reports on all new patients and periodic checks on those they already see.

To help stop the proliferation of pain clinics, Speaker Stumbo’s legislation would require these businesses to be owned by a licensed physician.  Prescribers charged with abusing their prescription privileges, meanwhile, would be barred from providing medicine, and those found guilty – either here or in another state – would see their prescription privileges stripped.

Elsewhere in the legislation, all schedule II and III drugs – which includes powerful pain medicine like Hydrocodone and Oxycontin – would be limited to 30-day supplies.  In all cases where overdoses are suspected in a death, coroners would be required to verify whether that was the exact cause.

 “Over the last decade, both when I was House Majority Leader and then Attorney General, I have worked to strengthen KASPER and to effectively shut down internet pharmacies from shipping prescription drugs into the state with little to no regulation,” Speaker Stumbo said.  “In recent years, however, the problem of prescription drugs has proliferated within our own borders, which is why I took the Kentucky Board of Medical Licensure to task last summer.

“Thankfully, KBML has since become much more involved, and hopefully this legislation will give it and law enforcement even greater authority to find where abuse is taking place and stop it,” he added.  “We’re seeing hundreds of Kentuckians lose their lives every year to this disease and thousands of others caught in the death spiral of addiction.  We cannot afford to wait another year to act.”

 KASPER BILL OUTLINE

Attorney General to operate KASPER system. It is essential to ensure that KASPER is operated by a law enforcement entity with a proven track record of cracking down on drug diversion. This will serve as an essential counterbalance to the licensing boards, which are not well suited to focusing on law enforcement issues. The bill provides that within 90 days of passage, the entire KASPER system shall be transferred to the Office of the Attorney General. This includes computer systems, data, contracts and any unexpended funds. The Attorney General may also determine which KASPER employees are to be transferred along with the program. The Cabinet for Health and Family Services is fully cooperating in this transfer. (Non-codified language.)

Governor to appoint pain and addiction specialists to licensing boards. Recognizing that the licensing boards require additional expertise in the areas of pain treatment and addiction risks, the Governor will appoint certified specialists in these fields to both the Kentucky Board of Medical Licensure and the Kentucky Board of Nursing. (Non-codified language.)

Kentucky State Police, Office of the Attorney General, and Licensing Boards to share reports of improper prescribing. In order to ensure that all appropriate enforcement authorities are promptly apprised of drug diversion complaints, the Kentucky State Police, the AG and the licensing boards must share any such reports within three (3) days of receipt. This will eliminate cases in which actions are proceeding in one forum while others with enforcement authority are unaware of the case.

Licensing Boards required to act promptly on complaints. Immediately upon receipt of an improper prescribing complaint, the appropriate licensing board shall initiate an investigation, seek any needed expert assistance, and issue a report within sixty (60) days determining whether appropriate medical practices have been followed. This report shall be transmitted to KSP and OAG.

Administrative suspension of prescribing privileges required in appropriate cases. The licensing board shall immediately suspend prescribing privileges in any case where public safety (or the health and safety of a patient) is compromised, and promptly conduct a full disciplinary hearing. This rapid response will ensure that the public is protected from dangerous prescribing practices by administrative action without delay.

Report of charges against prescribers. When any medical professional authorized to dispense controlled substances is indicted, arrested or charged with a felony relating to controlled substances, the prosecutor shall report same to the appropriate licensing board within three (3) days. This will ensure that prompt appropriate action is taken by the licensing board, which shall within five (5) days suspend prescribing privileges until the conclusion of the criminal proceedings.

Prescribers to adhere to safeguards prior to dispensing controlled substances. Extensive safety measures are required prior to dispensing controlled substances, including the taking of a complete medical history, conducting a physical exam, discussion of the risk of drug tolerance, and periodic reviews of each patient’s individual circumstances. These safeguards are drawn from recent laws passed in Ohio and Florida, as well as recommendations from the KBML.

KASPER registration and use required. Each person with prescribing authority shall register to use KASPER and shall run a KASPER report on new patients, as well as periodic checks on regular patients, in order to protect patients from inappropriate dispensing of controlled substances. The AG may establish an annual registration fee in an amount sufficient to offset the costs of running the KASPER program.

“Pain Management Clinics” to be owned by licensed practitioner. The growing problem of unaccountable operators of “pill mills” is addressed by requiring a licensed health care professional to own the businesses which primarily prescribe controlled substances. Licensed hospitals and pharmacies are exempted.

Direct dispensing of drugs must be reported. Currently, reporting of direct administration and short term dispensing of Schedule II and III drugs is not required, leading to concern about uncontrolled office dispensing of opioids, as has been reported in Florida and other states. This bill requires such reports within one day.

Commonwealth’s and County Attorneys authorized to request KASPER reports. Access by law enforcement officials to KASPER reports is broadened to include prosecutors who are engaged in drug investigations. This change was specifically requested by prosecutors in testimony before the Judiciary Committee.

Medical professionals may place KASPER reports in patient’s records. KASPER reports may now be included in the treatment records of patients, as requested by medical professionals. A patient may review that record and offer corrections to any incomplete or inaccurate report.

Medicaid Services to monitor and report improper prescribing practices. The problem of tax dollars being misused to support drug diversion is addressed by requiring Medicaid Services to promptly report improper prescribing practices by medical professionals seeking Medicaid reimbursement, and to report suspected improper drug seeking by Medicaid recipients.

Real Time Reporting funding requests authorized. The AG is authorized to seek funding from the United States Department of Justice to create and maintain a real time reporting upgrade to the KASPER system.

Proactive data mining and regular trend reports required. The AG shall use KASPER to seek out improper prescribing practices in cooperation with licensing boards, the Office of Drug Control Policy, and other appropriate agencies. Trend reports shall be published quarterly.

Prescribing thresholds set, notices sent to licensing boards, cooperation required. The AG may establish appropriate prescribing thresholds for drugs of concern, in cooperation with other interested entities including the Governor’s KASPER Advisory Council. When these thresholds are approached or exceeded, appropriate licensing boards and KSP may be notified.

Local hospitals to assist in drug diversion prevention. In order to ensure that hospital employees follow appropriate prescribing practices, the AG and hospitals are directed to work cooperatively in reviewing prescribing data.

Licensing Boards required to adopt procedures for suspending prescribing privileges in appropriate cases. Boards are directed to implement methods of promptly curtailing prescribing authority where the health, welfare or safety of the public or patients is at risk.

Coroners to test for drugs and report; Name and address of decedent not reported. Coroners are directed to test for controlled substances in appropriate cases, and report drug overdoses to the State Registrar of Vital Statistics and KSP.

Mandatory license restrictions resulting from criminal conviction of prescriber. Prescribers convicted of a drug related felony shall have a mandatory minimum license revocation of 5 years. Second felony offense results in permanent revocation. First misdemeanor offense shall result in minimum 6 month revocation, second misdemeanor results in one year revocation.

License suspended or surrendered in another jurisdiction to be reported. Kentucky will no longer allow practitioners who have had a license suspended or surrendered for drug violations in other jurisdictions to be licensed here.

AG to ensure licensing boards performing duties. The AG shall ensure that licensing boards promptly investigate complaints, monitor prescribing practices, educate licensees, and cooperate with law enforcement.

AG may bring civil action to enforce licensing board requirements. The AG is authorized to prosecute civilly any officer or employee of a licensing board who intentionally or knowingly violates board duties.

Person who prescribes in violation of law is guilty of trafficking in a controlled substance.

Boards to accept unsworn complaints. Currently, the KBML requires complaints to be sworn and notarized. This provision deletes this requirement.

Nurse practitioners not to refill Schedule II prescription for six months. Nurses will also review KASPER report to ensure appropriate pain management.

Nurse practitioners required to maintain KASPER account. 

Nursing Board must include specialists in pain and addiction management.

Licensing boards must promulgate administrative regulations. Currently some licensing boards prefer to regulate licensee prescribing behavior by means of board opinions. This section requires the issuance of administrative regulations which have the force of law.

Shipments of Schedule II and III drugs limited to 30 day supplies. Pharmacies may accept prescriptions for up to 90 day supplies, but may only ship in 30 day allotments.

Frankfort –

“This proposed change, however well-intentioned, would have an unnecessary effect on farm families across the country,” said Rep. Rand, D-Bedford.  “Like millions of others, I grew up on a family farm and credit that experience for teaching me the enduring value of hard work along with many life lessons.  The last thing any farmer wants to do is endanger the welfare of a teenager, but this rule change is over-reaching.  I think we have a good balance now as things stand.”

Under the proposed federal rules, most children under the age of 16 would be barred from using power equipment, such as driving a tractor, and would face limitations in other areas as well, such climbing ladders taller than six feet or handling cattle.

Rep. Rand’s House Resolution 62 will now be sent to the Secretary of the U.S. Dept. of Labor and to each member of Kentucky’s congressional delegation.

Frankfort –

 ”With military operations officially over in Iraq and a timetable set to wind down our presence in Afghanistan, it is more important than ever that we mark this time by paying tribute to those brave soldiers from Kentucky who gave their all,” said Rep. McKee, D-Cynthiana.

“The wars we have fought in that region of the world, both in the early 1990s and over the last decade, have taken a tremendous toll on those who serve, especially those who call Kentucky home,” said Rep. Denham, D-Maysville.  “The commonwealth has a long history of doing more than her fair share, and our work during these wars is further proof of that.  It’s vital that we never forget that.”

House Bill 256 would establish the Iraq/Afghanistan War Memorial Committee, which in turn would look for the best location in the state to honor the six Kentuckians who died in Operation Desert Storm and the 104 who have perished in Operation Iraqi Freedom and, in Afghanistan, Operation Enduring Freedom.

If the legislation becomes law, those serving on the commission would include representatives from the governor’s office; the Tourism, Arts and Heritage Cabinet; the Kentucky Department of Veterans Affairs; the Kentucky Department of Military Affairs; and the Joint Executive Council of Veterans Organizations.

After determining the best location for the memorial, the commission would then be charged with overseeing its design, construction and the funding to get it built.  The legislation calls for the preliminary work on design and location to be done by Oct. 1, 2012.

Rep. McKee credited Blue Licks State Resort Park Manager Michael Schwendau for being the inspiration for the legislation.  “Given the sacrifices these fallen soldiers have made, he thought we needed to recognize this in a permanent way, and Rep. Denham and I agreed.”

AP Photo/John Flavell

Frankfort – Appearing together in the Capitol Rotunda with dozens of supporters from across the state, state Rep. Richard Henderson and Kentucky Agriculture Commissioner James Comer said today they would work to pass Rep. Henderson’s legislation that would set the stage to make industrial hemp legal to grow in Kentucky.

“The time has come for Kentucky to again take advantage of a crop that has so much potential not just for our farmers, but for manufacturers of hundreds of products that industrial hemp can make,” said Rep. Henderson, D-Jeffersonville.  “Kentucky led the nation in its production in the 1800s, and there is every reason to believe we could do the same again if my bill becomes law.”

“I am honored to join with Representative Henderson and so many of my former colleagues in support of legislation which could ultimately allow Kentucky farmers to produce industrial hemp,” Commissioner Comer said.  “Our farmers and members of the agriculture community are missing out on too many economic opportunities and I am excited to support bold new ideas that will create jobs and kick-start our economy.”

Rep. Keith Hall, D-Phelps, who is a primary co-sponsor of the legislation, said he “is particularly interested in the energy side of the hemp equation,” whether that is producing alcohol automotive fuels from the whole plant or growing it on mine reclamation sites.  The automotive industry could also use it to replace plastic in cars today, he said.

If passed, and subject to federal authorization, Rep. Henderson’s bill would call on potential hemp farmers to apply to the Kentucky Department of Agriculture for permits lasting just one year.   The Kentucky Department of Agriculture would oversee crop production by the farmer.  Applicants would have to submit to a nationwide criminal background check, and those convicted of a felony within the last 10 years would be barred from applying.

Industrial hemp can be used to make everything from paper and carpeting to medicine and food and even bio-fuels.   Interest in its production in Kentucky picked up in the early 1990s, and a dozen years ago, the Kentucky Industrial Hemp Commission was formed to oversee research in the crop.  Under Rep. Henderson’s legislation, the Commissioner of Agriculture would become the commission’s chairman.

“We have done a lot of study over the years, but now is the time to act,” Rep. Henderson said.  “We’re fortunate to have a tremendous amount of diversity in farming here in Kentucky, but this would make the agricultural community even stronger.  Commissioner Comer and I think the time has come to move forward with this once and for all.”

In his memo, Speaker Stumbo pointed out that the Republican plan undercut minority voting rights in state Representative Jesse Crenshaw’s 77th Legislative District in Lexington.  Speaker Stumbo noted a case in Ohio where a Federal court struck down an identical redistricting plan, and also cited a case in Tennessee requiring protection of “minority influenced” districts.

Speaker Stumbo also quoted from a United States Supreme Court case holding that damage to voting rights in one area cannot be remedied by creating minority districts elsewhere in the state.

Speaker Stumbo added that the redistricting manual used by all states notes that the definition of a minority population includes not just African Americans but Hispanics, Native Americans and Asian citizens as well.

In ending, Speaker Stumbo said that “we should be proud of our efforts, and stand strong together to protect the rights of every Kentuckian, regardless of race, gender or creed.”

To read the full memo, click here.

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Frankfort

Rep. Combs, whose district includes the university and who worked at the school for 23 years, said that “this idea has come together quickly, but the more it’s discussed, the more it just makes sense.  For about $12 million in multi-county, coal-severance dollars, we can have a long-established, well-respected institution in the mountains that has an osteopathic school training tomorrow’s doctors. It’s our best shot to raising the college-attainment rate in our region, which is almost half of the state’s average.”

House Speaker Stumbo, whose Floyd County district adjoins Pike, said that, in his nearly 30 years in the General Assembly, “I haven’t seen a better deal for the state.  For this relatively small investment, we get more than $170 million worth of facilities and a school that would do more than anything else to give our children the education they deserve here at home.  Some say this would be the biggest boost to our region since the Mountain Parkway, but I think it has the potential to be even bigger.”

Under their proposed legislation, the state would add the University of Pikeville as Kentucky’s seventh regional four-year university.   With the aid of the multi-county coal severance revenue, all of which would be derived from the participating counties, UPike’s tuition would drop from $17,000 to about $7,000, bringing it in line with the other regional universities.

It now enrolls more than 1,500 undergraduate students, which is nearly double its enrollment in 2007.  Of that, 1,100 are full-time, but UPike officials say they could handle up to 2,000 with their current facilities.  They expect to reach that total within two years if admitted into the state system.

Rep. Combs and Speaker Stumbo pointed out that the school’s Kentucky College of Osteopathic Medicine has also been a true asset to the state.  Since its inception in 1997, nearly 700 physicians have graduated, with two-thirds staying in the Appalachian region.  U.S. News and World Report has twice ranked it as fifth best in the country in producing the most primary care physicians, and it is considered the fourth most affordable private medical school.  A little more than 300 students are enrolled, but ongoing construction of a new 87,000 sq. ft. building is expected to bring that number up to more than 500.

Rep. Combs added that the school is already making in-roads with area high school students and the Kentucky Community and Technical College System.  A dual-credit program with eight high schools is allowing 315 students to earn college credit – a program that UPike plans to extend to the 21 other high schools in the 12-county region if it becomes public – and in December the university partnered with KCTCS to make it easier for those at the two-year institutions to matriculate to UPike.

 “The more people study this, the more obvious it becomes that UPike can meet so many of our needs in the mountains and do it affordably,” House Speaker Stumbo said.  “My hope is that we can pass this quickly so the school is part of the system by this fall.”

Note: The 12-county region that would comprise UPike’s primary coverage area would be Pike, Leslie, Magoffin, Letcher, Harlan, Perry, Bell, Martin, Johnson, Floyd, Breathitt and Knott counties.

To read  the legislation, click here.

“While writing the next two-year budget will not be easy, I believe today’s report by the Consensus Forecasting Group indicates that we will not have to make the drastic decisions we have seen in many of our sister states.  I’m pleased that we are still on track to end the year with a surplus, and that last year’s deposit in our ‘Rainy Day’ fund was both the largest we’ve ever seen in Kentucky and the largest last year among the states.  This shows we’ve been good stewards of the taxpayer’s money.” – House Speaker Greg Stumbo

To read more, click here.