Rep. Dennis Keene’s, (D-Wilder), House Bill 308 passed the House Licensing and Occupations Committee meeting and cleared the House floor on Wednesday.

Last year, State Auditor Crit Luallen conducted an audit of Kentucky’s 122 for-profit colleges after receiving complaints about high tuition, lack of job assistance and education, and a gross lack of financial accountability prompted the audit.

The audit concluded that the current board that regulates the state’s 122 for-profit colleges provided inadequate oversight, had not conducted an outside financial audit in 10 years and lacked a clear understanding of its role.

HB 308 would abolish the current State Board for Proprietary Education (BPE) and establish the Kentucky Commission on Proprietary Education, an independent agency of the Commonwealth attached to the Education and Workforce Development Cabinet for administrative purposes.  The commission will be fully funded by the schools and will not cost Kentucky taxpayers one dime.

The legislation would require the new Kentucky Commission on Proprietary Education to establish membership of commission reducing the number of proprietary school representatives so that they don’t comprise a majority of the commission’s membership (6 to 4) and decrease appointed members’ terms to two consecutive terms.

“I am encouraged by the swift passage of HB 308 because it underscores the commitment of our legislators to protect Kentuckians who have been harmed by misleading or misguided practices in the for-profit school industry,” said Rep. Keene.  “Folks trying to better their lives through education should have full confidence in the promises made by these institutions. While most proprietary schools do an admirable job preparing students for the workforce, unfortunately there are some who need more stringent oversight.”

Photo:  Rep. Dennis Keene on House floor earlier in the week discussing legislation.

As we conclude our first month of work in the General Assembly each day sheds new light on the serious financial challenges that confront our state and our citizens. Legislators received more details this week about the financial condition of state government from the governor’s budget director and other constitutional officers.

We are concentrating on ways to create new jobs, strengthen education and make Kentucky a better place to live.  We are working through hundreds of bills to find common sense solutions to meet our needs.

Answering students’ complaints and adhering to Kentucky State Auditor’s recommendations, House Education Chair Carl Rollins and, I as chair of the House Licensing and Occupations Committee, have filed a bill to strengthen oversight of Kentucky’s proprietary or for-profit colleges. Last year, State Auditor Crit Luallen conducted an extensive audit of Kentucky’s 122 for-profit colleges.  Complaints about high tuition, lack of job assistance and education, and a gross lack of financial accountability prompted the audit.

House Bill 308 would abolish the current State Board for Proprietary Education (BPE) and establish the Kentucky Commission on Proprietary Education, an independent agency of the Commonwealth attached to the Education and Workforce Development Cabinet for administrative purposes.

The legislation would require the new Kentucky Commission on Proprietary Education to establish membership of commission reducing the number of proprietary school representatives so that they don’t comprise a majority of the commission’s membership (6 to 4) and decrease appointed members’ terms to two consecutive terms.  I believe that we need to protect students from unscrupulous practices and this new commission will go a long way in meeting that primary goal.  I will inform you of House Bill 308’s progress as we move it through the legislative process.

The House of Representatives showed its support for our military and veterans by passing two measures.   House members approved House Bill 71 which would exempt the estates of members of the military or law enforcement who were killed in the line of duty from probate fees.

The House also passed HB 221 allowing a veteran when renewing his or her driver’s license or state identification card to have a veteran designation on that card with the presentation of a DD-214.  HB 221 passed by a vote of 96-0 and now goes to the Senate for consideration.

Creating jobs is the intent of HB 246 which would expand energy incentives to the manufacturing sector of the economy. The bill broadens the incentives passed in the 2007 Special Session’s House Bill 1 to include manufacturers who produce the pieces and parts required to build new energy facilities.  The bill passed unanimously out of the Energy and Tourism Development Committee meeting.

Education continues to be at the top of our priority list.  A bill to improve school councils requiring at least one parent representative of a school council to reside within the boundaries of the local school district passed out of the House this week.  HB 89 would also prohibit non-tenured teachers from serving on school councils unless no tenured teachers are willing or are available to serve. The House voted 62-33 to approve HB 89.

HB 168 works to insure that the 70,000 Kentucky students now enrolled in alternative education programs have quality teachers. The bill would prohibit superintendents from assigning a teacher to an alternative education program who is on probation or the subject of a corrective action.  HB 168 was passed by the House 90-8.

The House Agriculture Committee unanimously passed two resolutions to address the concerns of Kentucky farmers. House Concurrent Resolution 76 urges a study of the growth of wild pig populations in Kentucky and would address the dangers and problems that wild swine present for famers and landowners. House Resolution 62 would urge the U.S. Department of labor to withdraw a proposed regulation which would keep kids from being able to work on their family farm.  Both pieces of legislation await the full House consideration.

Four weeks into the session and we are picking up the pace.  You can stay informed of legislative action on bills of interest to you by logging onto the legislative Research Commission website at www.lrc.ky.gov or by calling the LRC toll free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, you can call the LRC toll- free Meeting Information Line at 800-633-9650.

Last year, State Auditor Crit Luallen conducted an extensive audit of State Board for Proprietary Education.  Complaints about high tuition, lack of job assistance and education, and a gross lack of financial accountability prompted the audit.

The audit concluded that the current board that regulates the state’s 122 for-profit colleges provided inadequate oversight, had not conducted an outside financial audit in 10 years and lacked a clear understanding of its role.

House Bill 308 would abolish the current State Board for Proprietary Education (BPE) and establish the Kentucky Commission on Proprietary Education, an independent agency of the Commonwealth attached to the Education and Workforce Development Cabinet for administrative purposes.

The legislation limits appointed members’ to serving two consecutive terms and establishes an 11-member commission that reduces the number of proprietary school representatives from six to four, so that they don’t comprise a majority of the commission’s membership.

An executive director with a background in commerce, business, or education would be hired whose duties would include directing new policies for fiscal record retention, keeping appropriate records of complaints and minutes of meetings, and ensuring the proper handling of student complaints and that an annual fiscal review is conducted.

The new legislation would also require schools to contribute to a student protection fund which would maintain a balance of $500,000.  The new commission would impose fees on schools to restore the balance to $500,000 if the balance drops below the required minimum amount.

It would establish requirements for licensed schools to notify the commission and remit student documentation prior to closing; require licensed institutions to make students aware of the student protection fund and the process for filing a claim.

“Most important is protecting students from unscrupulous practices and I believe that this new commission will go a long way in meeting that primary goal,” said Rep. Keene.

“Oversight and accountability are key to students’ success and they have a right to expect those things when paying for a college education,” said Rep. Rollins.

“Pursuing higher education is the only way Kentuckians can be assured of higher earning potential and a better quality of life and this legislation will ensure that mission is met,” said Rep. Keene.

Frankfort-KY:  As a result of redistricting, State Representative Dennis Keene’s (D-Wilder) 67^th House District will expand by nearly 4,000 people including the new river cities of Silver Grove and Melbourne. “Northern Kentucky has experienced explosive growth and decline in population which has forced a shift in legislative districts to occur,” said Rep. Keene.  “I am proud to expand my district further into Campbell County to include the two river cities of Silver Grove and Melbourne.”

When the plan is finalized by the entire General Assembly, House District 67 will be the largest district representing river cities in the Commonwealth.  Newport, Bellevue, Dayton, Ft. Thomas, Silver Grove and Melbourne are along the Ohio River in Campbell County.  Keene will continue to represent the suburban cities of Southgate, Wilder, Woodlawn and Highland Heights.  Representative Joe Fischer will represent the remaining suburban Campbell County precincts as well as southern Campbell County.

Representative Dennis Keene is the chairman of the House Licensing and Occupations Committee, vice chairman of Economic Development and a member of the Banking & Insurance Committee and is on the Budget Subcommittee on Transportation.  Keene is a small business owner and an economic development advisor for EGC Construction.  For more information, visit: www.DennisKeene.com.

Click here to read the resolution read in the House of Representatives on Friday, January 6, 2012.

But I was encouraged by information we heard in Frankfort this week, where the state budget director gave a more promising outlook.

Our employment rate continues to make a slow but steady climb.  October was a bellwether month of sorts, as the total number of non-farm jobs across the state reached a level last seen in December 2008.

Kentucky’s revenues were below the 50-state average in the 2008 fiscal year, but we did not see the tremendous dip that others did in 2009.  We matched the average in 2010 and 2011, but are behind as we approach the fiscal year’s halfway point at the end of this month.

Our personal income levels did not drop as much as they did in our sister states during the recession.  In fact, Kentucky’s decline was only half as much as the national average, a trend that is expected to continue through the rest of the fiscal year.

The auto industry is seeing a true resurgence nationally, which is especially good news for Kentucky, since we produce more cars and trucks than all but three states.

Late last month, Forbes magazine noted the progress we’ve made economically when it ranked us 25^th among the states in its annual Best States for Business list.  That’s up six spots from a year ago and 19 since 2008.

Academically, there are bright spots in the classroom.  Earlier this fall, education officials reported our fourth and eighth graders scored at or above the national average in both reading and writing.  Some of our best success can be found among those students who qualify for free or reduced price lunch; when measuring just their scores, we’re third among the states in reading for both grades and in the top 20 for math.

We learned earlier this year that no other state saw a faster increase in adult education enrollment from 2005 to 2009, and a July report by the University of Kentucky’s Center for Business and Economics Research noted that, over the last 20 years, no state has risen as much as Kentucky did in a nationwide index of education statistics.  We moved up 15 spots during that time.

In sports, the past year has seen Kentucky host its first NASCAR race in the modern era, and we set the benchmark again with our record eighth Breeders Cup at Churchill Downs.

Those are just a few of the presents that have been placed under our tree in 2011.  More undoubtedly will be added when we herald in the New Year.

Kentucky still has its challenges, but I am encouraged by this information.  I believe we will continue to pull together and move our commonwealth to a brighter, more prosperous future in 2012.

I want to wish you and your family a very Merry Christmas and send best wishes for a happy and healthy New Year.

The bill would place the oversight of casino gaming with the Kentucky Lottery Corporation, an agency with a long history of overseeing games of chance.  It would limit the locations at which a casino may be located to either counties with a population of 90,000 or more, or cities of the fourth class or greater that already have a horse racing track located within the city.

“I believe that this process would allow residents who live in communities that have live horse racing to decide if they want casino gaming,” said Rep. Keene.  “This gives them that decision-making power.”

Even in these limited locations, before a casino may be approved in those areas, a local option election must be held to get the sense of the people before the casino licensing process is allowed to go forward.  The election may be placed on the ballot either as a result of a local ordinance, or by a petition signed by a number of people equal to 25% of the votes cast in the last general election.

“Once the voters have spoken and approved casino gaming in their location, the Lottery Corporation conducts the bidding process for casinos,” said Rep. Keene.  “If a county approves full casino gaming, the initial licensing fee is $50 million.  The initial license will be an exclusive license for the first 10 years.”

Other details of the bill include:

• An annual license renewal fee of $6 million.  If a city of the fourth class containing a horse racing track approves the ballot initiative, the track may be licensed for limited or full casino gaming.  If the track chooses limited casino gaming it would only be licensed for slot machines or other electronic games of chance.
• Tracks would still be required to pay the $50 million initial license fee, but yearly renewals would be only $25,000.  If the track subsequently decided to expand to full casino gaming, the initial licensing fee would be applied to the full casino license and the track would only have to pay the $6 million annual renewal fee.
• Tracks licensed for casino gaming of any sort would have to continue to run as many races as they did in 2011 to maintain their casino license.
• In addition to the licensing of casinos, the Lottery Corporation would also license casino equipment suppliers, manufacturers, and professions within the Kentucky casino industry that the corporation determines warrant licensure.
• No person could sell, lease, or otherwise furnish gaming supplies and equipment in the Commonwealth unless they have a valid license issued by the Lottery Corporation.
• No person under 21 years of age will be allowed to place a wager on a game at a casino, nor will anyone under 21 be permitted access to areas of a casino where games are operated.
• The tax imposed on casinos will be 31% of each licensee’s gross gaming revenue.  Gross gaming revenue is defined as the amount wagered, less the amount paid out in winnings to players.
• Proceeds from the casino tax will be used to fund a Problem Gamblers Awareness and Treatment Fund (to a maximum amount of $2.5 million per year) and the operations of the Lottery Corporation devoted to the oversight and licensing of casino gaming.
• The remainder of the funds shall be divided equally between childhood education (primary, kindergarten, and elementary education); funding the Kentucky Employees Retirement Fund; and for use in job creation and economic development in Kentucky.

“In addition, 15% of each gaming licensee’s gross gaming revenue is to be allocated to the Kentucky Equine Industry Enhancement Fund, a fund to be overseen by the Kentucky Horse Racing Commission for the benefit of the equine industry throughout Kentucky including purse supplements, breeder incentive funds, and backside improvements,” said Rep. Keene.

Additional language in the bill:

• 10% of the fund is to be dedicated to non-racing breeds.
• There is also a $3 per person admission tax imposed on casinos.  The proceeds of the admission tax shall be dedicated to a regional tourism and infrastructure development fund established by the bill.
• The fund is established to promote tourism in regions containing a casino, to provide public protection, and to develop infrastructure projects designed to ease the burden of increased tourist activity in regions containing a casino.  Projects to be included shall be within 30 miles of a casino and designed to incorporate multiple units of local government.

“I believe this legislation would help move this issue to the forefront and the discussions, arguments, and posturing can finally end,” said Rep. Keene.  “For too long, casino gaming has been used as a political football and my bill would allow the people who would be most affected by this issue to make the final decision.”

Editorial by Rep. Dennis Keene

While those remain major problems, it is another class of drugs – those that can be found in a medicine cabinet – that has driven a dramatic increase in overdose deaths in Kentucky over the last decade.

Between 1999 and 2004 alone, the number of these cases went up more than 160 percent, and the problem has only worsened since then.  In the last few years they have begun outpacing the state’s highway fatalities by an ever-increasing margin.

Estimates show that about 6.5 percent of Kentucky adults say they have abused prescription drugs during the last year, which is well above the national average of 5 percent.

And the numbers for tenth grade drug abuse are disturbing with 1.6 percent reporting that they have used Oxycontin in the last 30 days of the recent survey.  Kentucky is above the average with 2.4 percent of tenth graders admitting to using tranquilizers.

I am stunned by those numbers.  When I was in the tenth grade I was into girls, sports and hanging out with my friends.  Never did it cross our minds to look for prescription drugs in our parents’ medicine chests or purchase them off the streets.

Prescription drugs as Xanax, Valium, Oxycodone and Hydrocodone were detected in the blood of about two-thirds of the overdose victims the state medical examiner’s office investigated last year.  Combined, alcohol and cocaine were detected in just eight percent of the cases.

A few weeks ago, as chair of the Interim Joint Committee on Licensing and Occupations, I asked officials with the Kentucky Office of Drug Control Policy and the Cabinet for Health and Family Services to talk to us about prescription drug abuse.

They explained that eKASPER, an electronic monitoring system that was the first in the nation to give doctors, pharmacies and law enforcement access to prescription information online, has helped speed up cases against those who over-prescribe or doctor shop, but it also makes it possible to pinpoint where problem areas exist.

State officials who maintain eKASPER are beginning to work more closely with the medical licensure boards to better monitor the data and sift out over-prescribers from those truly helping those patients in need.

But we need to do more.

Just last month, House Speaker Greg Stumbo, Governor Steve Beshear and Attorney General Jack Conway announced plans expand eKASPER’s reach in the medical field and ensure that doctors understand the merits of the system.

There will be multiple legislative proposals designed to better track prescription drugs and choke off the supply of pills from illegal sources, license and regulate pain clinics in Kentucky, with strict requirements regarding who may own or operate them.

In August, Kentucky hosted the first meeting of a new Interstate Prescription Drug Abuse Task Force, which is composed of representatives from Kentucky, Ohio, West Virginia and Tennessee.

The task force includes representatives from government, law enforcement, health care, and advocacy groups.  The group is developing ways that states can work together to choke off the so-called “pill pipeline” of illegal prescription drugs streaming into those states from the south.

Society pays such a heavy cost for addiction, from the families it tears apart to the prisons whose cells are full of inmates entangled in its web.  That is why there is such strong bipartisan support to do what needs to be done.

We cannot afford to wait any longer.