The State Archives and Records Commission met March 14, 1996, in the Board Room, Kentucky Department for Libraries and Archives (KDLA). James A. Nelson, Chairman, presided.
Members present: Dr. Thomas D. Clark, representing the University of Kentucky; Paul F. Coates, representing Citizens-at-Large; Dr. Jack D. Ellis, representing Citizens-at-Large; Cynthia Etkin, representing the Kentucky Library Association; Dr. William J. Morison, representing regional colleges and universities; Howard T. Goodpaster, representing Citizens-at-Large; Melba Porter Hay, representing the Kentucky Historical Society; Ed Hatchett, Auditor of Public Accounts; Stephen N. Dooley, representing the Department of Information Systems; and Jo Leta Hamilton, representing local governments.
Representatives present: Lou DeLuca, representing Dr. Roy P. Peterson, Secretary, Education, Arts and Humanities Cabinet: Leslie Cummins, representing Don Cetrulo, Director, Legislative Research Commission; and Perry Ryan, representing A. B. Chandler, III, Attorney General.
Members not present or represented: Robert F. Stephens, Chief Justice, Kentucky Supreme Court; Dr. James Ramsey, State Budget Director, Governor's Office for Policy and Management; and Cheryl Jones, representing Citizens-at-Large.
Public Records Division staff present: Richard N. Belding, Director, Public Records Division; Diana Moses, Manager, State Records Branch; Darrell Gabhart, Manager, Local Records Branch; Larry Gillis, Records Analyst; Dr. Frank Levstik, Regional Administrator; Jerry Carlton, Regional Administrator; Gerald Thompson, Regional Administrator; Teresa McChesney, Contracts Specialist; and B. J. Webster, Administrative Secretary.
Guests present: Heidi Engle, State Auditor's Office
Chairman Nelson called for introductions of Commission members.
Minutes of the previous Commission meeting were approved on a motion made by Dr. Clark, seconded by Dr. Ellis. The motion carried.
NEW OR REVISED RETENTION SCHEDULES
Lexington/Fayette Urban County Government - Department of Finance
Jerry Carlton was the regional administrator working on this new schedule. The series being scheduled cover numbers L3173 to L3265, a total of 93 series. These series incorporate records of Finance Administration, Division of Accounting and the Division of Purchasing, in the Department of Finance. These areas represent some of the highest volume of records being created and maintained by the Lexington/Fayette Urban County Government (LFUCG).
The Lexington/Fayette Urban County Government was chartered in 1974, in accordance with KRS Chapter 67A, making it the only merged government in the Commonwealth. Because of the unique nature of a merged local government, model retention schedules, which have been approved for cities and counties, do not always apply. The first retention schedule for LFUCG was completed in 1978; however, because of changes in the series and how they are maintained, and changes in the administrative structure of the government, it is now obsolete.
Mr. Carlton informed the Commission members that, with grant and staff assistance from the department, LFUCG was able to set up and equip a records center. The disposition instructions for many of the series being scheduled provide for their transfer to this center. Its full utilization is, therefore, dependent upon the approval by the Commission of up-to-date and current retention schedules. Also, with more up-to-date schedules, LFUCG will be able to destroy a number of records which have been maintained in the center in excess of the revised retention periods. According to Carlton, work to schedule the two remaining divisions within the Department of Finance will continue over the summer.
Dr. Clark made a motion to adopt this schedule, seconded by Dr. Morison. The motion carried.
Cabinet for Families and Children - Department for Social Services - Division of Program Management
Diana Moses was the records analyst working on this schedule change. The series being added to the schedule is 04549, Title IV-E Random Moment Time Study File. This series documents information gathered to determine what percent of time staff in the department's fourteen districts spend on activities funded under Title IV-E of the federal Child Welfare Act.
The newly named Cabinet for Families and Children (formerly part of the Cabinet for Human Resources) is the primary state agency for operating human services programs involving social services to families and children and income supplement programs which protect, develop, preserve and maintain families and children in the Commonwealth.
The Department for Social Services is the organizational unit responsible for developing and operating all social service programs in the Cabinet. A wide array of services, including child and adult protection, foster care, adoption, services to juveniles and services to the elderly, are designed to protect the state's most vulnerable population: children and women. The Division of Program Management provides management and technical support for program operations and negotiates contracts with service providers.
Mr. Ryan made a motion to adopt this schedule addition, seconded by Dr. Ellis. The motion carried.
Office of the Governor - Administration
Diana Moses was the records analyst working on this schedule change. The series being changed are 04349, Mail Log (Printout), and 04350, File Log (Printout). The purpose of the changes is to revise the disposition instructions for both series to allow destruction of the printouts after receipt, validation, and verification of the informational content of series 04348, Mail and File Log Database.
The Governor serves as chief administrator of the state and, in addition to other powers and duties, acts as Commander-In-Chief of all state military forces. His role as head of state is both symbolic and constitutional. He acts and serves on behalf of the people of the Commonwealth. The Governor ensures that state government provides needed services to the citizens of the state at minimum cost to the taxpayer; represents Kentucky before Congress on national and international economic development issues; makes appointments for vacancies of executive offices and memberships on boards and commissions authorized by statute; and has the power to grant pardons and commutations.
The first electronic transfer of automated indices occurred, according to Moses, with the transfer of the records of former Governor Brereton C. Jones. The indices reside in the department's public records management system and are used exclusively to provide access to Governor Jones' subject and correspondence files.
Dr. Clark asked if Governor Jones' tentative meeting schedules, which were a matter of some controversy early in his administration, had been transferred to the State Archives, and whether the records still carry an access restriction. Moses said that the schedules had been transferred and that their access was restricted. According to Belding, that will not change until the court's decision to restrict their access is challenged.
Dr. Clark made a motion to adopt this schedule change, seconded by Mr. Goodpaster. The motion carried.
Cabinet for Human Resources - Department for Medicaid Services - Division of Program Development and Budget
Diana Moses was the records analyst working on this schedule change. The series being added to the schedule is 04546, Nurse Aide Training Expense Report & Authorization for Payment File, and 04550, Provider Tax Collection File. Series 04550 is a closed series which documented the collection of taxes from Medicaid providers as required by HB 21, which was enacted during the 1991 Special Session of the General Assembly. The law changed in 1993 when the General Assembly extended it to cover most health care providers, not just Medicaid providers. As of the change in 1993, the Revenue Cabinet became responsible for the collection of the tax.
The newly named Cabinet for Health Services (formerly part of the Cabinet for Human Resources) is the primary state agency for operating public health, Medicaid, and mental health/mental retardation programs in the Commonwealth.
The Department for Medicaid Services was created pursuant to KRS 194.030 (7). It administers the Kentucky Medical Assistance Program under the legal authority of Title XIX of the Social Security Act and KRS 205.520, which provides coverage for preventive and remedial care not otherwise available to financially and medically indigent persons. The Division of Program Development and Budget was created by Executive Order 89-562 to monitor claims processing and program initiatives.
After a brief discussion, Dr. Ellis made a motion to adopt this schedule change, seconded by Dr. Morison. The motion carried.
Department of Insurance - Division of Financial Standards and Examinations
Diana Moses was the records analyst working on this schedule change. The series being added to the schedule is 04545, Liquidated Insurance Company Files, and the series being changed is 03430, Examination Work Papers, from five years to six.
The Department of Insurance has authority under KRS Chapter 304 to administer Kentucky's insurance laws, regulate the conduct of the insurance business, license agents and other company representatives, administer insurance taxes, operate the State Fire and Tornado Insurance Fund, and otherwise procure insurance for state agencies. Additional duties include licensing bail bondsmen and insurance adjusters, enforcing the insurance code, promulgating regulations based on the department's interpretation of the code, disapproving companies that engage in illegal or unethical insurance practices, and periodically examining all insurance companies doing business in Kentucky to determine their solvency.
The Division of Financial Standards and Examinations admits and licenses insurance companies, and conducts examinations and audits. It also coordinates information sharing between the department and the National Association of Insurance Commissioners.
Moses informed the Commission members that series 04545 documents the corporate, claim and policy information of insolvent domestic (in-state) insurance companies. The Department is responsible for assuming custody of the records after final disposition of court cases. Moses further explained that this series could significantly impact the State Records Center's limited storage capacity because many company files could be quite voluminous. An example is the Kentucky Central Life Insurance Company, which is currently in federal bankruptcy court. A company of its size could result in as much 1,000 cubic feet of records being transferred to the State Records Center, until the retention period of five years is met.
Moses also recounted some of the questions which had arisen during the Advisory Committee meeting dealing with which records have the most complete information on how an insurance company conducts its business in Kentucky. According to Moses, company files are maintained by the Department of Insurance on every company doing business in Kentucky. Depending on the type of insurance being sold, the retention of these files ranges from 50 years to permanent. It is these records which would provide the most complete documentation on an insurance company, its rates, policies, etc.
Dr. Clark asked that the minutes reflect that the Commission has cautious concern about these types of records and the complex issues represented by them. And that to the best of the collective knowledge of the Commission, it is following the most appropriate course in allowing the destruction of these records after five years.
Mr. Coates made a motion to adopt this schedule change, seconded by Dr. Morison. The motion carried.
Department for Libraries and Archives - Public Records Division - Micrographics Branch
Diana Moses was the records analyst working on this schedule change. The series being changed is 00655, Microfilm Control Sheet and Inspection File, to allow destruction after information has been entered into the division's public records management system.
The Public Records Division prescribes and maintains standards for recording, managing, preserving, and reproducing state and local government records. It also provides technical assistance to state and local agencies in the areas of records management, archival management, micrographics and documents preservation.
The Micrographics Branch provides centralized image management and micrographic services to state and local government agencies, in response to functions mandated by KRS 171.550, on a cost recovery basis. The branch also monitors developments in other imaging technologies and their application to public records management.
There was discussion about the life expectancy of microfilm which, according to Belding, is projected to be several hundred years, if stored in the proper environmental conditions, and if filmed to the proper standards.
In response to a question by Dr. Clark, Belding emphasized that the records being destroyed in this instance are input records to the department's public records management system. The system itself is backed up on a regular basis, with proper security controls in place. Moses advised the Commission members that, in addition, the Microfilm Quality Evaluation form, which documents what has been filmed and the results of all testing, is retained permanently.
Dr. Clark made a motion to adopt these schedule changes, seconded by Dr. Ellis. The motion carried.
Mr. Hatchett addressed the concerns of the State Auditor's Office in being able to meet auditing requirements in an electronic environment; that is, what his Office expects agencies to have available in an electronic format for auditing purposes. He mentioned the change in recordkeeping by the banking community to a digital (imaging) format for the retention of canceled checks and what effect that has on the audit trail. Hatchett emphasized that, under these circumstances, it is imperative that the auditor know what security measures are in place to protect the integrity of the electronic information.
Board of Medical Licensure
Diana Moses was the records analyst working on this schedule change. The series being changed is 03186, Annual Registration File, from six years to fifty.
The Kentucky Board of Medical Licensure, as required in KRS Chapter 311, is responsible for the licensing of qualified medical and osteopathic physicians and assuring their professional and ethical conduct. It also is responsible for the discipline of physicians, paramedics, athletic trainers, and, as of 1986, the review, certification and discipline of physician assistants.
According to Moses, the series now reports, and has since 1985, information regarding physician criminal history and drug use. The information collected on the annual registration form can be used in the event of physician investigations. During the Advisory Committee meeting, Mr. Ryan raised a question about whether or not the agency could apply the six year retention, which was previously approved, to records dated before 1985. His concern was that the proposed increase in retention to 50 years should only apply to records dated after 1985, when the new reporting requirement was enacted. According to Moses, the records only exist from 1985, when the change in reporting occurred. The records prior to 1985 have been destroyed, using the previously approved six year retention period.
In response to a question by Dr. Ellis, the permanent record of physician activity is retained in the Master Files , series 01534 and 01535.
There being no further discussion, Dr. Ellis made a motion to adopt this schedule change, seconded by Mr. Goodpaster. The motion carried.
Personnel Cabinet - Division of Applicant Counseling & Examinations
Diana Moses was the records analyst working on this schedule change. The series being changed are 04251, Applications Not Processed File, from three months to four years, and 04266, Applicant Register Folder, from destroy after expiration to destroy three years after expiration.
The Personnel Cabinet, which was recently elevated by executive order from a department, has the responsibility for administering the state merit system and for ensuring compliance with the personnel rules and regulations established in KRS Chapter 18A.
The Division of Applicant Counseling and Examinations provides for recruitment, counseling, examination, and certification of persons eligible for employment by the Commonwealth, with corresponding provisions for the placement of career employees through internal mobility systems.
The purpose of the changes is to bring the retention periods in line with federal requirements, as provided for in 29 CFR Part 34, which deals with nondiscrimination and equal opportunity requirements of the 1982 Job Training Partnership Act.
Mr. Coates made a motion to adopt this schedule change, seconded by Dr. Morison. The motion carried.
Revenue Cabinet
Diana Moses was the records analyst working on this schedule change. The series being added to the schedule are 04547, Log-In Sheet File, which documents the transmittal of audit and tax information entered into the automated system, and 04548, Transmittal Sheet File, which documents the batches of income tax return data transferred from the Cabinet's automated system to the state's mainframe.
The Revenue Cabinet is responsible for the administration of all general fund taxes and major road fund taxes, as well as assessment and collection of 44 separate state taxes. The Cabinet's duties include equalization of tax assessments, assessment of public utilities and public service corporations, and enforcement of revenue and tax law.
The Division of Revenue Operations is structurally organized under the Department of Administrative Services. The duties of the department include recordkeeping, providing data services, providing liaison with federal and state agencies, preparing publications, and providing personnel, fiscal and financial management services.
Mr. Ryan made a motion to adopt this schedule change, seconded by Mr. Hatchett. The motion carried.
State University Model Records Retention Schedule
Diana Moses was the records analyst working on these schedule changes. The series being changed are: U0306, Personnel Applications and Resumes (for persons not hired); U0312, Vacancy Reporting Form (Departmental copy); U0602, Applicant Referral Log; and U0629, Vacancy Reporting Form (Record copy). The retention of all four series is being increased from one year to two years to meet federal requirements, as provided for in 29 CFR 1602.48.
The State University Model Records Retention Schedule is applicable to all of the state's eight public universities. The development of the Model is in lieu of developing separate retention schedules for each of the universities. The Model is designed to be an effective management tool and to eliminate redundancy in the scheduling of series.
Mr. Ryan made a motion to adopt these schedule changes, seconded by Dr. Ellis. The motion carried.
OTHER BUSINESS
Mr. Goodpaster asked for clarification of the procedure used by the department when records are destroyed from the State Records Center. Moses explained that shortly after a shipment of records into the Center is accepted, a Records Destruction Certificate is completed and placed in a tickler file, behind the appropriate month and year the destruction is to be carried out. Each month the destructions for that month are pulled from the file and 14-day notices are sent to records officers for the affected agencies. The records officers are to return the notice to the State Records Branch specifying whether or not the records can be destroyed. If the records cannot be destroyed, the agency is asked to specify the reason for halting destruction.
For records not in the custody of the department, the agency relies upon its retention schedule, which provides the legal authority to make final disposition of records, to determine which ones can be destroyed and when. The agency is required to report all such destructions to the department, so that the degree of implementation of schedules can be determined.
Belding commented upon the fact that many agencies do not implement schedules which have been approved for them, thus defeating the purpose of having one and negating a very useful management tool. Department staff, through a variety of education methods, continue to emphasize the importance of implementing schedules. If schedules aren't implemented then the result is continued maintenance of records which have ceased to have any value, which in turn increases overall costs to an agency for staff, equipment and space.
There followed a discussion of efforts at the local county level to encourage the implementation of retention schedules, the efforts to microfilm key records, and the cleanouts of courthouses, etc., that are regularly carried by the department's local records staff, to prevent the proliferation of useless records. Gabhart advised the Commission members that the most impact of those efforts has been seen in the various county clerks' offices across the state. Most offices, according to Gabhart, are in compliance with department requirements.
Before moving into the local records grant portion of the meeting, Chairman Nelson asked Mr. Belding to discuss a couple of items of business. The first was to update the Commission members on the dissemination of the department's Policy Memorandum on Optical Storage of Public Records. Belding informed the members that the Memorandum, dated February 28, 1996, which was distributed during the meeting, was circulated to local governments, state agency information resources managers and records officers, and state agency heads. Belding emphasized that the Memorandum is a document preliminary to the promulgation of an administrative regulation covering the use of optical imaging systems by state and local governments.
The Memorandum deals with the key issues involved in the utilization of optical imaging systems such as: accuracy and completeness of records being imaged; maintenance and retention of system documentation; audit trails and security; access to records; backup procedures; equipment maintenance; training programs for staff; compression algorithms; and migration of data. Belding advised the Commission members that department staff worked very closely with the Kentucky Information Resources Management Commission and its Imaging Committee, and the State Auditor's Office in the development of the policy. A copy of the Policy Memorandum is attached.
Belding also informed the Commission members that, as with previous years, department staff have been tracking legislation introduced during the current session of the General Assembly that has a records management component. Specifically, staff have focused on bills that relate to access to public records, records creation and retention, electronic systems' creation, reorganization of state agencies, etc. Bills of note mentioned: HB 226, which deals with the expungement of criminal records, and which could have an enormous impact on the department's operations (nearly 50% of its holdings are court records), if passed; and HB 808, which deals with the restriction on state employment of persons convicted of a felony, where electronic information was used in the commission of the crime. More complete information on the status of these and other bills having a records management component will be provided at the June 13th meeting of the Commission.
Belding advised the Commission members that the department continues in its efforts to secure funding for a new State Records Center Services Building. Staff remain optimistic, as there is support from several quarters for the construction of this much needed new building. The department is approaching capacity in both the State Records Center and the State Archives Center. Belding also informed the Commission members that the department was able to lease an additional 3,100 square feet of space on the second floor of the building on the grounds of the Ancient Age Distillery that is used as a supplemental records center facility.
Dr. Clark's recent meeting with the Governor concerning construction of a new facility resulted in a request from the Governor that the department provide additional information to him, after the end of the current legislative session. The Governor has said he will give the department's request for the building his consideration between now and the special session he intends to call in January 1997. Chief Justice Robert Stephens, who has also given his support for the facility, attended Dr. Clark's recent meeting with the Governor.
Gabhart updated the Commission members on the bill he and his staff worked on two or three years ago with the county clerks and the Secretary of State's Office to standardize the size of documents presented in the respective offices for recording. The standard paper size was to be 8 1/2 x 11. The bill also would set standards on type size and density, to assist in the long term preservation of such documents. It is Gabhart's understanding that the bill has been resurrected and that the county clerks have gotten a sponsor to introduce the bill during the 1996 session. The only opposition to the bill has been from the legal community, which wants to retain the legal-size paper standard. Gabhart is hopeful the bill will pass into law during this session.
Mr. Hatchett asked what percent of the department's storage capacity was being used. Belding said that the Archives Center is at full capacity now and that the State Records Center is within 80 - 85% of its storage capacity. Moses explained that the State Records Center operation is in two locations, one on East Main street (the main facility) and one on the grounds of the Ancient Age Distillery (the supplemental facility). The supplemental facility is located on two floors of a warehouse building, with no more possibility of expansion, after the securing of the recent 3,100 square feet. Future expansion would involve moving into a third location, which is not workable, given current resources. Belding also explained that the Records Center operates on a cost-recovery basis. The savings to agencies that utilize the Records Center amounts to millions of dollars per year.
Dr. Clark said that by making an addition to the department's Coffee Tree facility, several things would be accomplished: savings to state government by having a co-located facility; projecting records management into the 21st century through increased use of electronic recordkeeping methods, such as optical imaging and scanning capabilities, which the department will soon be acquiring; and increased efficiency in records management in general, because records would not be scattered all over Frankfort, but would be co-located in one facility.
After a brief break, Chairman Nelson moved to the last item on the agenda, the review of local records grants.
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Last revised July 10, 1996.