Kentucky News Now – October 16th 2015

HEALTH OVERHAUL-KENTUCKY-AUDIT

Audit finds flaws in kynect, rates it 'generally effective'

FRANKFORT, Ky. (AP) — Federal auditors say Kentucky officials had trouble making sure everyone purchasing discounted health insurance plans on kynect met all of the federal requirements.

An audit from the Department of Health and Human Services Office of Inspector General said Kentucky's health insurance exchange was generally effective in determining a person's eligibility. But officials did not always properly verify some applicants' identity or their eligibility for minimum essential coverage.

The findings do not mean state officials allowed ineligible people to purchase qualified health plans because the state had other methods of catching the problems.

Kentucky officials agreed with the auditor's findings and said they had fixed the problems. The system could have an influx of new shoppers as kynect's largest insurer, the Kentucky Health Cooperative, announced last week it was going out of business.

UNEMPLOYMENT RATE

Kentucky's unemployment rate falls to 5 percent

FRANKFORT, Ky. (AP) — Kentucky's unemployment rate fell to 5 percent in September for the first time in 14 years.

Nationally, the unemployment rate remained at 5.1 percent according to the U.S. Department of Labor. Kentucky's rate dropped from 5.2 percent in August.

Kentucky's civilian labor force lost 11,369 people in September. Employment was down by more than 7,800. But the number of unemployed also decreased by more than 3,500.

Manoj Shanker, an economist with the Office of Employment and Training, noted Kentucky's labor force is shrinking as the state has a larger proportion of retirement-aged people than the national average. But Shanker noted Kentucky's labor market has improved, outperforming the national average in 13 out of the last 14 months.

Shanker also noted Kentuckians' average weekly earnings have increased at more than twice the rate from last year.

YUM-OUTLOOK

Yum names activist to board, lowers profit outlook

NEW YORK (AP) — Yum Brands says it named activist investor Keith Meister to its board and lowered its full-year profit outlook, citing ongoing difficulties in its China division.

The parent company of KFC, Pizza Hut and Taco Bell also says it was close to completing a review of its strategic options, including potential changes to its corporate structure.

The announcement came after the Louisville, Kentucky-based company reported disappointing quarterly results last week, citing a slower-than-expected recovery for its China business, which have seen sales plunge after two separate scares related to the quality of its food.

Meister is the founder and managing partner of Corvex Management, one of Yum's largest shareholders with nearly 5 percent of the company's common stock. His appointment expands the board to 14 members and is effective Friday.

AG COMMISSIONER-COMPLAINT

Candidate's radio show prompts complaint from GOP

LOUISVILLE, Ky. (AP) — Kentucky Republicans are targeting a Democratic candidate's farming-based radio program in a complaint.

The state GOP on Thursday accused Jean-Marie Lawson Spann of using the program to promote her campaign, with improper corporate backing. The GOP says it filed the complaint with the state Registry of Election Finance.

Spann says she's confident her campaign is in full compliance with the law and calls it a "superficial political attack."

She is competing against Republican Ryan Quarles in the Nov. 3 election for state agriculture commissioner.

Republicans say the "Jean-Marie Ag Show" is sponsored by Lawson Marketing Inc., a consulting company for agribusiness interests.

Kentucky law bans corporations from contributing to political campaigns.

Republicans claim Spann and her father illegally promoted her campaign during the corporate-sponsored shows.

OBAMA-CLIMATE CHANGE

In climate bid, Obama expands steps to cut refrigerants

WASHINGTON (AP) — President Barack Obama is ordering new steps to reduce refrigerants that contribute to climate change as he works to secure a global climate treaty.

The Obama administration is proposing to extend rules targeting emissions of ozone-depleting chemicals to refrigerants called hydrofluorocarbons.

The White House said Thursday the rules will be finalized next year.

The Environmental Protection Agency also plans to prohibit more uses of hydrofluorocarbons under new deadlines coming in 2016. The Obama administration is pushing to phase out the potent heat-trapping gases globally.

The White House is also announcing nearly $15 million in grants for communities hit hard by the Obama-backed shift away from coal. Almost all of the funds are for programs in Kentucky.

Obama hopes to build momentum on climate change before international talks conclude in December.

PIZZA MAGNATE-TAXES

Kansas may face $42M tax tab to former Pizza Hut magnate

(Information in the following story is from: The Topeka (Kan.) Capital-Journal, http://www.cjonline.com)

TOPEKA, Kan. (AP) — Kansas may have to pay $42 million to a former Pizza Hut franchise operation owner over his challenge of a tax bill.

The Topeka Capital-Journal reports Gene Bicknell has battled the state since Kansas said he owed $42 million based on his 2006 sale of NPC International, which has hundreds of Pizza Hut franchises.

The Kansas Court of Tax Appeals determined Bicknell was a Kansas resident and owed the money. Bicknell says he was living in Florida, but paid the $42 million and appealed.

The Kansas Court of Appeals said recently the tax appeals court ignored state regulations, sending the case back to the tax appeals court.

A $42-million state payout could affect the state's finances because the state's taken in about $42 million less in revenue than expected.

NEEDLE EXCHANGE

Louisville's needle-exchange program spreads to suburbs

LOUISVILLE, Ky. (AP) — Louisville's needle-exchange program is spreading to the suburbs.

Starting next Thursday, the city's first community exchange site will open at Lake Dreamland Fire Station in southwestern Louisville.

Metro health officials said Thursday they're hoping to open other neighborhood sites where people can swap dirty needles for clean ones.

The goal is to prevent the spread of HIV and hepatitis C and steer drug users toward treatment.

Louisville started its needle-exchange program in June in a trailer downtown at the city's Public Health and Wellness headquarters.

Health officials say there have been almost 900 participants so far and more than 100 people voluntarily tested for HIV.

Louisville Metro Councilwoman Jessica Green says people shouldn't be fearful of needle-exchange sites bringing drug users to neighborhoods. She says neighborhoods already have drug problems.

KENTUCKY-ROWE

Kentucky dismisses transfer Chrishae Rowe from team

LEXINGTON, Ky. (AP) — Kentucky women's basketball coach Matthew Mitchell announced that sophomore guard Chrishae Rowe has been dismissed from the team for failing to uphold the program's standards.

Mitchell didn't specify the reasons behind Rowe's dismissal but said Thursday in a statement that "we wish Chrishae well in her future endeavors and we hope she can find success in her life."

The 5-foot-10 Rowe transferred to Kentucky from Oregon in January and would have been eligible to play for the Wildcats after the fall semester. She was the Pac-12's Freshman of the Year and earned all-conference honors after averaging 21.6 points per game for the Ducks. Her 690 points set a school freshman record and were just three shy of Alison Lang's season mark.