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AN ACT relating to educational opportunities, making an appropriation therefor, 1
and declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 160.1590 is amended to read as follows: 4
As used in KRS 160.1590 to 160.1599: 5
(1) ["Achievement academy" has the same meaning as "public charter school"; 6
(2) ]"Achievement gap" means the difference between performance goals and actual 7
performance on state standardized examinations and other academic performance 8
measures for subgroups of students, especially groups defined by socioeconomic 9
status, race, and ethnicity; 10
(2)[(3)] "Applicant" means an eligible person or persons, organization, or entity that 11
seeks approval from a charter school authorizer to establish a public charter school; 12
(3)[(4)] "Charter application" means a proposal from an applicant to an authorizer to 13
enter into a charter contract whereby the proposed school obtains public charter 14
school status; 15
(4)[(5)] "Charter contract" or "contract" means a fixed-term, renewable contract 16
between a charter school and an authorizer that identifies the roles, powers, 17
responsibilities, and performance expectations for each party to the contract 18
pursuant to KRS 160.1596; 19
(5)[(6)] "Charter school board of directors" means the independent board of a public 20
charter school that is party to the charter contract with the authorizer and whose 21
members have been elected or selected pursuant to the school's application; 22
(6)[(7)] "Conversion public charter school" means a public charter school that existed 23
as a noncharter public school prior to becoming a public charter school; 24
(7) "District of location" means the public school district in which a public charter 25
school is physically located; 26
(8) "Education service provider" means an education management organization, school 27 UNOFFICIAL COPY 22 RS BR 23
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design provider, or any other partner entity with which a public charter school 1
contracts for educational design, implementation, or comprehensive management; 2
(9) "Local school board" or "local board" means a school board exercising 3
management and control of a local school district; 4
(10) "Local school district" means a county or independent school district as identified in 5
KRS 160.010 and 160.020; 6
(11) "Parent" means a parent, guardian, or other person or entity having legal custody of 7
a child; 8
(12) "Private postsecondary institution" means a nonpublic four (4) year university in 9
Kentucky that is nonsectarian in nature, is accredited by a regional accrediting 10
association recognized by the United States Department of Education, and is 11
licensed by the Council on Postsecondary Education; 12
(13) "Proportionate per pupil basis" means multiplying an amount of funds by a 13
fraction, with the numerator being the average daily attendance of the public 14
charter school, and the denominator being the average daily attendance of the 15
school district of location; 16
(14) "Proportionate per pupil transported basis" means multiplying an amount of 17
funds by a fraction, with the numerator being the aggregate daily attendance of 18
students transported by a public charter school, and the denominator being the 19
aggregate daily attendance of students transported by the school district of 20
location; 21
(15)[(12)] "Public charter school" means a public school that: 22
(a) Is a public body corporate and politic, exercising public power, including the 23
power in name to contract and be contracted with, sue and be sued, and adopt 24
bylaws not inconsistent with this section; 25
(b) Has autonomy over decisions, including but not limited to matters concerning 26
finance, personnel, scheduling, curriculum, and instruction; 27 UNOFFICIAL COPY 22 RS BR 23
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(c) Is governed by an independent board of directors; 1
(d) Is established and operating under the terms of a charter contract between the 2
public charter school's board of directors and its authorizer; 3
(e) Is a public school to which parents choose to send their children; 4
(f) Is a public school that admits students on the basis of a random and open 5
lottery if more students apply for admission than can be accommodated; 6
(g) Offers a comprehensive instructional program to enrolled students[within a 7
public school district]; 8
(h) Operates in pursuit of a specific set of educational objectives as defined in its 9
charter contract; and 10
(i) Operates under the oversight of its authorizer in accordance with its charter 11
contract; 12
(16)[(13)] "Public charter school authorizer" or "authorizer" means an entity or body that 13
reviews, approves, or denies charter applications, enters into charter contracts with 14
applicants, oversees public charter schools, and renews, does not renew, or revokes 15
charter contracts. Authorizers shall include: 16
(a) A local school board of a local school district, which shall only have 17
authority to approve charter applications within the boundaries of its 18
district[ in which a public charter school is located]; 19
(b) A collaborative among local school boards that forms to set up a regional 20
public charter school to be located within the area managed and controlled by 21
those local school boards; 22
(c) The governing board of a Kentucky public university or a private 23
postsecondary institution that elects to become an authorizer, which shall 24
have a statewide jurisdiction. The governing board shall elect to become an 25
authorizer by adopting a resolution by a majority vote. The governing board 26
shall remain an authorizer until such time as the board adopts a resolution 27 UNOFFICIAL COPY 22 RS BR 23
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to discontinue being an authorizer by majority vote, however the board shall 1
still be bound by any charter contract in effect. Any governing board that 2
seeks to discontinue authorizing activities shall remain an authorizer for 3
the public charter schools in existence that the board has authorized for the 4
remainder of the charter contract term. The governing board is authorized 5
to consider renewals of such charter contracts and shall continue to serve 6
as an authorizer for those public charter schools until the charter contract 7
is terminated according to law. The governing board shall submit written 8
notice of the adoption of authorizer resolutions to the Kentucky Board of 9
Education; 10
(d) The Kentucky Public Charter School Commission, which shall have a 11
statewide jurisdiction; 12
(e) The Kentucky Board of Education, which shall have a statewide 13
jurisdiction; 14
(f) A non-profit entity located in Kentucky established under either KRS 15
Chapters 273 or 273A that has been approved by the Kentucky Board of 16
Education. Such an entity shall have statewide jurisdiction. The Kentucky 17
Board of Education shall promulgate an administrative regulation to 18
establish an application and approval process and adopt clear and concise 19
standards for approving nonprofit entities as authorizers; 20
(g)[(c)] The mayor of a consolidated local government, who shall be considered 21
an authorizer governing board for the purposes of KRS 160.1590 to 22
160.1599 and who may only authorize public charter schools to be physically 23
located within the county in which the city is located and who has submitted a 24
written notice to the state board that he or she intends to serve as an 25
authorizer; and 26
(h)[(d)] The chief executive officer of an urban-county government, who shall 27 UNOFFICIAL COPY 22 RS BR 23
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be considered an authorizer governing board for the purposes of KRS 1
160.1590 to 160.1599 and who may only authorize public charter schools to 2
be physically located within the county in which the city is located and who 3
has submitted a written notice to the state board that he or she intends to serve 4
as an authorizer; 5
(17)[(14)] "Qualified teacher" means a person certified by the Education Professional 6
Standards Board pursuant to KRS 161.028, 161.030, 161.046, or 161.048; 7
[(15) "Regional achievement academy" means a public charter school that has been 8
established to serve students across multiple school districts;] 9
(16) "Regional achievement zone" means one (1) county containing four (4) or more 10
local school districts or two (2) or more contiguous counties, each containing four 11
(4) or more local school districts; 12
(17) "Start-up public charter school" means a public charter school that did not exist as a 13
noncharter public school prior to becoming a public charter school;] 14
(18) "State board" means the Kentucky Board of Education; 15
(19) "Student" means any child who is eligible for attendance in a public school in 16
Kentucky; and 17
(20) "Virtual public charter school" means a public charter school that offers educational 18
services primarily or completely through an online program. 19
Section 2. KRS 160.1591 is amended to read as follows: 20
(1) The General Assembly hereby finds and declares that: 21
(a) Reducing achievement gaps in Kentucky is necessary for the state to realize its 22
workforce and economic development potential; 23
(b) Past and current measures have been insufficient for making progress toward 24
reducing the state's achievement gaps; 25
(c) Additional public school options are necessary to help reduce socioeconomic, 26
racial, and ethnic achievement gaps; and 27 UNOFFICIAL COPY 22 RS BR 23
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(d) The demand exists for high-quality public charter schools in the 1
Commonwealth. 2
(2) The General Assembly hereby establishes a public charter school project to benefit 3
parents, teachers, and community members by creating new, innovative, and more 4
flexible ways of educating all children within the public school system and by 5
advancing a renewed commitment to the mission, goals, and diversity of public 6
education. The purposes of the public charter school initiative are to: 7
(a) Improve student learning outcomes by creating additional high-performing 8
schools with high standards for student performance; 9
(b) Encourage the use of different, high-quality models of teaching, governing, 10
scheduling, or other aspects of schooling that meet a variety of student needs; 11
(c) Close achievement gaps for low-performing groups of public school students; 12
(d) Allow schools freedom and flexibility in exchange for exceptional levels of 13
results-driven accountability; 14
(e) Increase high-quality educational opportunities within the public education 15
system for all students, especially those at risk of academic failure; and 16
(f) Provide students, parents, community members, and local entities with 17
expanded opportunities for involvement in the public education system. 18
(3) Beginning in academic year 2022-2023[2017-2018], any authorizer may authorize 19
an unlimited number of public charter schools[ within the boundary of the local 20
school district]. 21
(4) A public charter school shall not be a virtual public charter school. 22
(5) [(a) A public charter school authorized by a local school board or collaborative 23
may enroll students who reside within the boundaries of the district or districts 24
represented by the local school board or collaborative.] 25
(a)[(b)] Enrollment preference for a conversion public charter school shall be 26
given to students who attended the school the previous school year. If the 27 UNOFFICIAL COPY 22 RS BR 23
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number of students enrolled does not exceed the capacity of the school, 1
secondary preference shall be given to students who reside within the district 2
boundary in which the public charter school is located. 3
(b)[(c)] Enrollment preference for public charter schools shall be given to 4
students enrolled in the public charter school the previous year and to siblings 5
of students already enrolled in the school. The[An] enrollment preference for 6
returning students shall exclude those students from entering into a lottery, as 7
identified in paragraph (e)[(f)] of this subsection. 8
(c)[(d)] Enrollment preference may be given to the children of the public charter 9
school's board of directors and full-time employees of the public charter 10
school provided they constitute no more than ten percent (10%) of the total 11
student population. 12
(d)[(e)] A public charter school may allow an enrollment preference for students 13
who meet federal eligibility requirements for free or reduced-price meals and 14
students who attend persistently low-achieving noncharter public schools. 15
(e)[(f)] If capacity is insufficient to enroll all students who wish to attend any 16
specific grade level or program at a public charter school, the school shall 17
select students through a randomized and transparent lottery. The lottery 18
process may allow for siblings in a lottery or different lotteries to be 19
admitted together. 20
[(6) (a) A public charter school established within the boundaries of a regional 21
achievement zone shall be a regional achievement academy. 22
(b) 1. A regional achievement academy may be authorized by a single local 23
school board within the regional achievement zone or by a collaborative 24
of local school boards within the regional achievement zone. 25
2. A regional achievement academy authorized by a single local school 26
board shall be located within the boundaries of the authorizing local 27 UNOFFICIAL COPY 22 RS BR 23
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school district. 1
3. A regional achievement academy authorized by a collaborative of local 2
school boards shall be located within the regional achievement zone. 3
(c) A regional achievement academy may only enroll students who reside within 4
the boundaries of its regional achievement zone. 5
(d) Enrollment preference in a regional achievement academy may be given to 6
students who reside within the boundaries of the local school district where 7
the regional achievement academy is located.] 8
(6)[(7)] Consistent with the requirements of KRS 160.1590 to 160.1599 and 161.141, 9
the state board shall promulgate administrative regulations to guide student 10
application, lottery, and enrollment in public charter schools. 11
Section 3. KRS 160.1592 is amended to read as follows: 12
(1) A public charter school shall be part of the state's system of public education but 13
shall be exempt from all statutes and administrative regulations applicable to the 14
state board, a local school district, or a school, except the public charter school shall 15
adhere to the same health, safety, civil rights, and disability rights requirements as 16
are applied to all public schools and to all requirements otherwise identified in KRS 17
160.1590 to 160.1599 and 161.141. 18
(2) A public charter school may elect to comply with any one (1) or more provisions of 19
any state statute or administrative regulation. 20
(3) A public charter school shall: 21
(a) Be governed by a board of directors; 22
(b) Be established and operate in pursuit of a specific set of educational objectives 23
as defined in the charter contract between the school's board of directors and 24
its authorizer; 25
(c) Ensure students meet compulsory attendance requirements under KRS 26
158.030 and 158.100 and record student enrollment and attendance in a 27 UNOFFICIAL COPY 22 RS BR 23
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manner necessary for participation in the fund to support education 1
excellence in Kentucky; 2
(d) Hire only qualified teachers to provide student instruction; 3
(e) Ensure high school course offerings meet or exceed the minimum required 4
under KRS 156.160 for high school graduation; 5
(f) Design its education programs to meet or exceed the student performance 6
standards adopted by the Kentucky Board of Education; 7
(g) Ensure students' participation in required state assessment of student 8
performance, as required under KRS 158.6453; 9
(h) Adhere to all generally accepted accounting principles and adhere to the same 10
financial audits, audit procedures, and audit requirements as are applied to 11
other public schools under KRS 156.265; 12
(i) Utilize the same system for reporting student information data and financial 13
data as is utilized by other school districts across the state; 14
(j) Require criminal background checks for staff and volunteers, including 15
members of its governing board, as required of all public school employees 16
and volunteers within the public schools specified in KRS 160.380 and 17
161.148; 18
(k) Comply with open records and open meeting requirements under KRS 19
Chapter 61; 20
(l) Comply with purchasing requirements and limitations under KRS Chapter 21
45A and KRS 156.074 and 156.480, or provide to the public charter school 22
board of directors a detailed monthly report of school purchases over ten 23
thousand dollars ($10,000), including but not limited to curriculum, furniture, 24
and technology; 25
(m) Provide instructional time that is at least equivalent to the student instructional 26
year specified in KRS 158.070; 27 UNOFFICIAL COPY 22 RS BR 23
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(n) Provide data to the Kentucky Department of Education and the authorizer as 1
required by the Kentucky Department of Education or authorizer to generate a 2
school report card under KRS 158.6453; 3
(o) Operate under the oversight of its authorizer in accordance with its charter 4
contract and application; 5
(p) As a public body corporate, have all the powers necessary for carrying out the 6
terms of its charter contract, including the power to: 7
1. Receive and disburse funds for school purposes; 8
2. Secure appropriate insurance and enter into contracts and leases; 9
3. Contract with an education service provider, provided the board of 10
directors of the public charter school retains oversight and authority over 11
the school; 12
4. Incur debt in reasonable anticipation of the receipt of public or private 13
funds; 14
5. Pledge, assign, or encumber its assets to be used as collateral for loans 15
or extensions of credit; 16
6. Solicit and accept any gifts or grants for school purposes, subject to 17
applicable laws and the terms of its charter; 18
7. Acquire real property for use as its facility or facilities, from public or 19
private sources; and 20
8. Employ or contract with other entities for the provision of teaching, 21
professional, and support staff, as needed; and 22
(q) Conduct an admissions lottery if capacity is insufficient to enroll all students 23
who wish to attend the school and ensure that every student has a fair 24
opportunity to be considered in the lottery and that the lottery is competently 25
conducted, equitable, randomized, transparent, impartial, and in accordance 26
with targeted student population and service community as identified in KRS 27 UNOFFICIAL COPY 22 RS BR 23
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160.1593(3) so that students are accepted in a public charter school without 1
regard to ethnicity, national origin, religion, sex, income level, disabling 2
condition, proficiency in the English language, or academic or athletic ability. 3
(4) For purposes of this subsection, a member of the board of directors of a public 4
charter school shall be considered an officer under KRS 61.040 and shall be 5
removed from office under the statute's provisions. 6
(5) A local school district shall provide or publicize to parents and the general public 7
information about public charter schools authorized by the local school district as an 8
enrollment option within the district to the same extent and through the same means 9
that the school district provides and publicizes information about noncharter public 10
schools in the district. 11
(6) A local school district shall not assign or require any student enrolled in the local 12
school district to attend a public charter school. 13
(7) (a) For purposes of ensuring compliance with this section and the charter under 14
which it operates, a public charter school shall be administered by a public 15
charter school board of directors accountable to the authorizer in a manner 16
agreed to in the charter contract, as negotiated between the public charter 17
school applicant and the authorizer. 18
(b) The board of directors of a public charter school shall consist of a minimum 19
of two (2) parents of students attending any public charter school operating 20
under the direction of the board of directors. 21
(c) A member of the board of directors of a public charter school shall: 22
1. Not be an employee of that school or of an education service provider 23
that provides services to the school; and 24
2. File full disclosure reports and identify any potential conflicts of interest, 25
relationships with management organizations, and relationships with 26
family members who are applying to or are employed by the public 27 UNOFFICIAL COPY 22 RS BR 23
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charter school or have other business dealings with the school, the 1
management organization of the school, or any other public charter 2
school and shall make these documents available online through the 3
authorizer. 4
(8) Collectively, members of the board of directors shall possess expertise in 5
leadership, curriculum and instruction, law, and finance. 6
(9) (a) A board of directors may hold one (1) or more charter contracts. 7
(b) Each public charter school under contract with a board of directors shall be 8
separate and distinct from any other public charter school under contract with 9
the board of directors. 10
(10) The board of directors shall be responsible for the operation of its public charter 11
school, including but not limited to preparation of a budget, contracting for services, 12
school curriculum, and personnel matters. 13
(11) The board of directors shall: 14
(a) Ensure that all meetings of the board are publicized in advance according to 15
the rules governing the authorizer and are open to the public at times 16
convenient to parents; and 17
(b) Require any education service provider contracted with the board to provide a 18
monthly detailed budget to the board. 19
(12) (a) A public charter school may negotiate and contract with its authorizer or any 20
third party for the use, operation, and maintenance of a building and grounds, 21
liability insurance, and the provision of any service, activity, or undertaking 22
that the public charter school is required to perform in order to carry out the 23
educational program described in its charter. Any services for which a public 24
charter school contracts with a school district shall be provided by the district 25
at cost and shall be negotiated as a separate agreement after final charter 26
contract negotiations. The public charter school shall have standing to sue and 27 UNOFFICIAL COPY 22 RS BR 23
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be sued in its own name for the enforcement of any contract under color of 1
authority granted by KRS 160.1590 to 160.1599. A public charter school may 2
own, rent, or lease its space. 3
(b) Any entity contracted to provide educational services or goods to a public 4
charter school in an amount exceeding ten thousand dollars ($10,000) shall be 5
subject to the Open Records Act under KRS Chapter 61 for all records 6
associated with the public charter school contract. 7
(13) A public charter school shall be exempt from administrative regulations governing 8
public schools for purposes of zoning and local land use regulation. The Finance 9
and Administration Cabinet shall annually publish a list of vacant and unused 10
buildings and vacant and unused portions of buildings that are owned by the state 11
and that may be suitable for the operation of a public charter school and shall 12
provide the list to applicants for public charter schools and to existing public charter 13
schools upon request. 14
(14) A public charter school shall be nonsectarian in its programs, admissions policies, 15
employment practices, partnerships, and all other operations and shall not have 16
entrance requirements or charge tuition or fees, except that a public charter school 17
may require the payment of fees on the same basis and to the same extent as other 18
public schools. 19
(15) A public charter school shall not discriminate against any student, employee, or any 20
other person on the basis of ethnicity, religion, national origin, sex, disability, 21
special needs, athletic ability, academic ability, or any other ground that would be 22
unlawful if done by a public school. 23
(16) A public charter school shall serve one (1) or more of grades kindergarten through 24
twelve (12) and shall limit admission to students within the grade levels served. 25
(17) A public charter school shall provide programs and services to a student with a 26
disability in accordance with the student's individualized education program and all 27 UNOFFICIAL COPY 22 RS BR 23
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federal and state laws, rules, and regulations. A public charter school shall deliver 1
the services directly or contract with another provider to deliver the services. A 2
public charter school shall establish an admissions and release committee at the 3
school and the committee shall: 4
(a) Develop an individualized education program for each student with a 5
disability; or 6
(b) Review, revise, or utilize a student's individualized education program 7
completed by the admissions and release committee of the student's former 8
school. If needed, the committee shall work collaboratively with staff from the 9
student's former school to review and revise a student's existing individualized 10
education program. 11
(18) (a) A public charter school shall be eligible to participate in state-sponsored or 12
district-sponsored interscholastic athletics, academic programs, competitions, 13
awards, scholarships, and recognition programs for students, educators, 14
administrators, and schools to the same extent as noncharter public schools. 15
Participants shall comply with eligibility requirements of students enrolled in 16
noncharter public schools. 17
(b) A public charter school has no obligation to provide extracurricular activities 18
or access to facilities for students enrolled in the public charter school. 19
(c) If a public charter school sponsors interscholastic athletic activities, students 20
enrolled in the public charter school shall be considered eligible to participate 21
in interscholastic competitions by the Kentucky Board of Education or the 22
agency designated by the state board to manage interscholastic athletics, if 23
other eligibility requirements are met. A student enrolled in a public charter 24
school that sponsors an interscholastic athletic activity shall be ineligible to 25
participate in that activity at any other school. 26
(d) If a public charter school does not offer any interscholastic athletic activity 27 UNOFFICIAL COPY 22 RS BR 23
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sanctioned by the Kentucky Board of Education or the agency designated by 1
the state board to manage interscholastic athletics, a student enrolled in the 2
public charter school shall be eligible to participate at the school the student 3
would attend based on the student's residence. 4
(e) If a public charter school offers any interscholastic athletic activity sanctioned 5
by the Kentucky Board of Education or the agency designated by the state 6
board to manage interscholastic athletics, a student enrolled in the public 7
charter school shall be ineligible to participate in any interscholastic athletic 8
activity at any other school. 9
(19) Nothing in this section shall be construed to prevent the establishment of a single-10
sex public charter school consistent with federal regulations or a public charter 11
school designed to provide expanded learning opportunities for students at risk of 12
academic failure or for students with special needs. 13
(20) The authorizer of a public charter school shall semiannually consider for approval a 14
public charter school's proposed amendments to a charter contract. The authorizer 15
may consider requests for amendments more frequently upon mutual agreement 16
between the authorizer and the public charter school. The denial of an amendment 17
request is appealable pursuant to KRS 160.1595. 18
(21) If a student who was previously enrolled in a public charter school enrolls in 19
another public school located within the state, the new school shall accept any 20
credits earned and grades received by the student in courses or instructional 21
programs while enrolled in the public charter school in a uniform and consistent 22
manner and according to the same criteria that are used to accept credits from other 23
public schools. 24
(22) A teacher employed by a local board of education under a continuing service 25
contract and offered employment with a public charter school shall be granted a two 26
(2) year leave of absence to teach in a public charter school. The leave of absence 27 UNOFFICIAL COPY 22 RS BR 23
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shall commence on the first day of service to the public charter school. During the 1
first or second year of the leave of absence, the teacher may notify the local board of 2
education that the teacher intends to return to a teaching position in the local school 3
district. The teacher shall be allowed to return to a teaching position in the local 4
school district at the appropriate salary for the teacher's years of experience and 5
educational level. After two (2) years on leave, the relationship between the teacher 6
and the local board of education shall be determined by the local board and the local 7
board shall notify the teacher of the decision. 8
Section 4. KRS 160.1593 is amended to read as follows: 9
(1) An application to establish a public charter school may be submitted to a public 10
charter school authorizer by teachers, parents, school administrators, community 11
residents, public organizations, nonprofit organizations, or a combination thereof. 12
(2) An applicant shall submit an application for approval of a public charter school to 13
an authorizer and, if the authorizer is not the Kentucky Public Charter School 14
Commission or the Kentucky Board of Education, then the applicant shall also 15
submit a written notification of the application simultaneously to the commission 16
and state board as a record of the filing. Charter authorizers shall accept and 17
document the date and time of receipt of all charter applications. 18
(3) The information provided in the application shall be consistent with this section and 19
shall include: 20
(a) A mission statement and a vision statement for the public charter school, 21
including the targeted student population and the community the school hopes 22
to serve, and will outline how the public charter school shall establish 23
resident and nonresident enrollment policies which shall be subject to the 24
same limitations as a school district; 25
(b) A description of the school's proposed academic program that is aligned with 26
state standards, and that implements one (1) or more of the purposes described 27 UNOFFICIAL COPY 22 RS BR 23
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in KRS 160.1591, and the instructional methods that will support the 1
implementation and success of the program; 2
(c) 1. The student achievement goals for the public charter school's 3
educational program and the chosen methods of evaluating whether 4
students have attained the skills and knowledge specified for those 5
goals; and 6
2. An explanation of how the school's proposed educational program is 7
likely to improve the achievement of traditionally underperforming 8
students , serve the needs of students with individualized education 9
programs, or provide students with career readiness education 10
opportunities[in the local school district]; 11
(d) The school's plan for using external, internal, and state-required assessments 12
to measure student progress on the performance framework as identified in 13
KRS 160.1596, and how the school will use data to drive instruction and 14
continued school improvement; 15
(e) The proposed governance structure of the school, including a list of members 16
of the initial board of directors, a draft of bylaws that include the description 17
of the qualifications, terms, and methods of appointment or election of 18
directors, and the organizational structure of the school that clearly presents 19
lines of authority and reporting between the board of directors, school 20
administrators, staff, any related bodies such as advisory bodies or parent and 21
teacher councils, and any external organizations that will play a role in 22
managing the school; 23
(f) 1. Plans and timelines for student recruitment and enrollment, including 24
policies and procedures for conducting transparent and random 25
admission lotteries that are open to the public, and that are consistent 26
with KRS 160.1591 and 160.1592;[.] 27 UNOFFICIAL COPY 22 RS BR 23
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2. An application shall demonstrate a plan to recruit at least one hundred 1
(100) students, unless the application is focused on serving special needs 2
or at-risk students or students seeking career readiness education; and 3
3. If the application is for a public charter school located in a district 4
with total student enrollment of five thousand (5,000) or less, then the 5
application shall include a memorandum of understanding with the 6
district of location endorsing the application; 7
(g) A proposed five (5) year budget, including the start-up year and projections 8
for four (4) additional years with clearly stated assumptions; 9
(h) Draft fiscal and internal control policies for the public charter school; 10
(i) Requirements and procedures for programmatic audits and assessments at 11
least once annually, with audits and assessments being comparable in scope to 12
those required of noncharter public schools; 13
(j) A draft handbook that outlines the personnel policies of the public charter 14
school, including the criteria to be used in the hiring of qualified teachers, 15
school administrators, and other school employees, a description of staff 16
responsibilities, and the school's plan to evaluate personnel on an annual 17
basis; 18
(k) A draft of the policies and procedures by which students may be disciplined, 19
including students with disabilities, which shall be consistent with the 20
requirements of due process and with state and federal laws and regulations 21
governing the placement of students with disabilities; 22
(l) A description of the facilities to be used by the public charter school, 23
including the location of the school, if known, and how the facility supports 24
the implementation of the school's academic program. If the facilities to be 25
used by the proposed school are not known at the time the application is 26
submitted, the applicant shall notify the authorizer within ten (10) business 27 UNOFFICIAL COPY 22 RS BR 23
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days of acquiring facilities for the school. The school shall obtain certification 1
of occupancy for the facilities at least thirty (30) days prior to the first student 2
instructional day; 3
(m) The proposed ages and grade levels to be served by the public charter school, 4
including the planned, minimum, and maximum enrollment per grade per 5
year; 6
(n) The school calendar and school day schedule, which shall total at least the 7
equivalent to the student instructional year specified in KRS 158.070; 8
(o) Types and amounts of insurance coverage to be obtained by the public charter 9
school, which shall include adequate insurance for liability, property loss, and 10
the personal injury of students comparable to other schools within the local 11
school district operated by the local school board; 12
(p) A description of the health and food services to be provided to students 13
attending the school; 14
(q) Procedures to be followed in the case of the closure or dissolution of the 15
public charter school, including provisions for the transfer of students and 16
student records to the district of location[local school district in which the 17
public charter school is located] or to another charter school located within the 18
local school district and an assurance and agreement to payment of net assets 19
or equity, after payment of debts as specified in KRS 160.1598; 20
(r) A code of ethics for the school setting forth the standards of conduct expected 21
of its board of directors, officers, and employees; 22
(s) Plans for recruiting and developing staff; 23
(t) A staffing chart for the school's first year and a staffing chart for the term of 24
the charter; 25
(u) A plan for parental and community involvement in the school, including the 26
role of parents in the administration and governance of the school; 27 UNOFFICIAL COPY 22 RS BR 23
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(v) The public charter school's plan for identifying and successfully serving 1
students with disabilities, students who are English language learners, 2
bilingual students, and students who are academically behind and gifted, 3
including but not limited to the school's plan for compliance with all 4
applicable federal and state laws and regulations; 5
(w) A description of cocurricular and extracurricular programs and how they will 6
be funded and delivered; 7
(x) The process by which the school will resolve any disputes with the authorizer; 8
and 9
(y) A detailed start-up plan, including financing, tasks, timelines, and individuals 10
responsible for carrying out the plan. 11
(4) If the public charter school applicant intends to contract with an education service 12
provider for educational program implementation or comprehensive management, 13
the application shall additionally require the applicant to: 14
(a) Provide evidence of success in serving student populations similar to the 15
targeted population, including demonstrated academic achievement as well as 16
successful management of nonacademic school functions, if applicable; 17
(b) Provide student performance data and financial audit reports for all current 18
and past public charter schools; 19
(c) Provide documentation of and explanation for any actions taken against any of 20
its public charter schools for academic, financial, or ethical concerns; 21
(d) Provide evidence of current capacity for growth; 22
(e) Provide a term sheet setting forth: 23
1. The proposed duration of the service contract; 24
2. The annual proposed fees to be paid to the education service provider; 25
3. The roles and responsibilities of the board of directors, the school staff, 26
and the education service provider; 27 UNOFFICIAL COPY 22 RS BR 23
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4. The scope of services and resources to be provided by the education 1
service provider; 2
5. Performance evaluation measures and timelines; 3
6. Compensation structure, including clear identification of all fees to be 4
paid to the education service provider; 5
7. Methods of contract oversight and enforcement; 6
8. Investment disclosure; and 7
9. Conditions for renewal and termination of the contract; and 8
(f) Disclose and explain any existing or potential conflicts of interest between the 9
board of directors and the proposed education service provider or any 10
affiliated business entities. 11
Section 5. KRS 160.1594 is amended to read as follows: 12
(1) A public charter school authorizer shall: 13
(a) Fulfill the expectations and intent of this section and KRS 160.1590 to 14
160.1599 and 161.141; 15
(b) Demonstrate public accountability and transparency in all matters concerning 16
its charter-authorizing practices, decisions, and expenditures; 17
(c) Establish an annual timeline consistent with statutory guidelines with 18
deadlines to solicit, invite, accept, and evaluate applications from applicants; 19
(d) Approve new and renewal charter applications that meet the requirements of 20
this section and KRS 160.1593; 21
(e) Decline to approve charter applications that: 22
1. Fail to meet the requirements of this section and KRS 160.1593; or 23
2. Are for a school that would be wholly or partly under the control or 24
direction of any religious denomination; 25
(f) Negotiate and execute in good faith a charter contract with each public charter 26
school it authorizes; 27 UNOFFICIAL COPY 22 RS BR 23
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(g) Monitor the performance and compliance of public charter schools according 1
to the terms of the charter contract; 2
(h) Determine whether each charter contract it authorizes merits renewal or 3
revocation; and 4
(i) Establish and maintain policies and practices consistent with the principles 5
and professional standards for authorizers of public charter schools, including 6
standards relating to: 7
1. Organizational capacity and infrastructure; 8
2. Soliciting and evaluating applications; 9
3. Performance contracting; 10
4. Ongoing public charter school oversight and evaluation; and 11
5. Charter approval, renewal, and revocation decision making. 12
(2) In reviewing applications, the public charter school authorizer is encouraged to give 13
preference to applications that demonstrate the intent, capacity, and capability to 14
provide comprehensive learning experiences to: 15
(a) Students identified by the applicants as at risk of academic failure; [and] 16
(b) Students with special needs as identified in their individualized education 17
program as defined in KRS 158.281; and 18
(c) Students who seek career readiness education opportunities. 19
(3) After a charter applicant submits a written application to establish a public charter 20
school, the authorizer shall: 21
(a) Complete a thorough review process; 22
(b) Conduct an in-person interview with the applicant group; 23
(c) Provide an opportunity in a public forum for local residents to provide input 24
and learn about the charter application; 25
(d) Provide a detailed analysis of the application to the applicant or applicants 26
which shall include any identified deficiencies; 27 UNOFFICIAL COPY 22 RS BR 23
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(e) Allow an applicant a reasonable time to provide additional materials and 1
amendments to its application to address any identified deficiencies, 2
including allowing an applicant to request a sixty (60) day extension to seek 3
technical assistance in curing deficiencies from an appellate board under 4
Section 6 of this Act; and 5
(f) Approve or deny a charter application based on established objective criteria 6
or request additional information. 7
(4) In deciding to approve a charter application, the authorizer shall: 8
(a) Grant charters only to applicants that possess competence in all elements of 9
the application requirements identified in this section and KRS 160.1593; 10
(b) Base decisions on documented evidence collected through the application 11
review process; and 12
(c) Follow charter-granting policies and practices that are transparent, based on 13
merit, and avoid conflicts of interest. 14
(5) Unless an extension is requested under subsection (3) of this Section, no later 15
than sixty (60) days following the filing of the charter application, the authorizer 16
shall approve or deny the charter application. The authorizer shall adopt by 17
resolution all charter approval or denial decisions in an open meeting of the 18
authorizer's board of directors. 19
(6) Any failure to act on a charter application within sixty (60) days of the established 20
application submission deadline shall be deemed an approval[a denial] by the 21
authorizer. 22
(7) An application shall be approved if the public charter school authorizer finds that: 23
(a) The public charter school described in the application meets the requirements 24
established by this section and KRS 160.1590 and 160.1592; 25
(b) The applicant demonstrates the ability to operate the school in an 26
educationally and fiscally sound manner; and 27 UNOFFICIAL COPY 22 RS BR 23
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(c) Approving the application is likely to improve student learning and 1
achievement and further the purposes established by KRS 160.1591. 2
(8) An authorizer shall provide a written explanation within five (5) days of adopting a 3
resolution, for the public record, stating its reasons for approval or denial of a 4
charter application, including a thorough explanation of how the charter application 5
either meets or fails to meet established objective criteria for making charter 6
application decisions, and the authorizing process which the authorizer used to 7
review, evaluate, and make its final decision. 8
(9) An authorizer's charter application approval shall be submitted to the Kentucky 9
Department of Education as written notice[for final approval by the commissioner 10
of education]. 11
(10) When an authorizer that is a local school board or a collaborative of local school 12
boards receives a charter school application, any member of the board or boards 13
who has not received charter authorization training within twelve (12) months 14
immediately preceding the date the application was received shall receive six (6) 15
hours of in-service training prior to evaluating the charter application. Except for 16
training provided prior to July 15, 2020, the training shall be in addition to the 17
annual in-service training required under KRS 160.180, and each board shall select 18
the trainer to deliver the training to its members. Charter authorizer training shall 19
not be required of any local school board member until a charter application is 20
submitted to the board or boards. 21
Section 6. KRS 160.1595 is amended to read as follows: 22
(1) [The]A charter applicant or the board of directors of an approved public charter 23
school may select to appeal to either the Kentucky Public Charter School 24
Commission or the Kentucky Board of Education which shall serve as separate 25
appellate boards. 26
(2) An applicant or board of directors of a public charter school may request 27 UNOFFICIAL COPY 22 RS BR 23
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technical assistance from either appellate board to address deficiencies identified 1
by an authorizer. The selected appellate board shall respond within thirty (30) 2
days of the request. 3
(3) A selected appellate board[state board], upon receipt of a notice of appeal[ or upon 4
its own motion], shall review decisions of the[any] authorizer concerning the 5
approval or denial of a public charter school application, the nonrenewal or 6
revocation of a public charter school's contract, the denial of a public charter 7
school's request to consider a charter amendment, or the unilateral imposition of 8
conditions in the charter contract, in accordance with the provisions of this section. 9
However, neither appellate board shall review the appellate decisions of the other 10
appellate board. 11
(a)[(2)] A charter applicant or approved public charter school who wishes to 12
appeal a decision of an authorizer concerning a charter application, a charter 13
amendment, or the nonrenewal or revocation of a charter, or the unilateral 14
imposition of conditions, shall provide the selected appellate board[state 15
board] and the authorizer with a notice of appeal within thirty (30) days after 16
the authorizer's decision. The appellant[person bringing the appeal] shall limit 17
the grounds of the appeal to the grounds for the denial of or the nonrenewal or 18
revocation of a charter, or the unilateral imposition of conditions, whichever is 19
being appealed, specified by the authorizer. The notice shall include a brief 20
statement of the reasons the public charter school applicant or public charter 21
school contends the authorizer's denial of or nonrenewal or revocation of a 22
charter, or imposition of conditions was in error. 23
(b)[(3)] If the notice of appeal[, or the motion to review by the state board,] 24
relates to an authorizer's decision to deny, refuse to renew, or revoke a charter 25
or to an authorizer's unilateral imposition of conditions that are unacceptable 26
to the charter applicant or public charter school, the appeal and review process 27 UNOFFICIAL COPY 22 RS BR 23
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shall be as follows: 1
1.[(a)] Within forty-five (45) days after receipt of the notice of appeal[ or 2
the making of a motion to review by the state board] and after 3
reasonable public notice, the selected appellate board[state board], at a 4
public hearing which may be held in the school district in which the 5
proposed public charter school has applied for a charter or where the 6
public charter school exists, shall review the decision of the authorizer 7
and make its findings. 8
2. The selected appellate board shall determine: 9
a. If the final decision of the authorizer was contrary to the best 10
interest of the students or community; and 11
b. If the application failed to satisfy the requirements of 12
subsections (3) and (4) of Section 4 of this Act. 13
3. If the selected appellate board[state board] finds that the authorizer's 14
decision was contrary to the best interest of the students or community 15
and the application satisfies the statutory requirements, the selected 16
appellate board[state board] shall [remand such decision to the 17
authorizer with written instructions for reconsideration thereof. The 18
instructions shall include specific recommendations concerning the 19
matters requiring reconsideration; 20
(b) Within thirty (30) days following the remand of a decision to the 21
authorizer and after reasonable public notice, the authorizer, at a public 22
hearing, shall reconsider its decision and make a final decision; 23
(c) If the authorizer's final decision is still to deny, refuse to renew, or 24
revoke a charter or to unilaterally impose conditions unacceptable to the 25
charter applicant, a second notice of appeal may be filed with the State 26
Board of Education within thirty (30) days following such final decision; 27 UNOFFICIAL COPY 22 RS BR 23
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(d) Within thirty (30) days following receipt of the second notice of appeal 1
or the making of a motion for a second review by the State Board of 2
Education and after reasonable public notice, the state board, at a public 3
hearing shall determine if the final decision of the authorizer was 4
contrary to the best interest of the students or community. If such a 5
finding is made, the state board shall] remand such final decision to the 6
authorizer with instructions to approve the charter application or 7
amendment, or to renew or reinstate the charter, or to approve or 8
disapprove conditions imposed. The decision of the selected appellate 9
board[state board] shall be a final action subject to judicial review in the 10
Circuit Court encompassing the school district in which the public 11
charter school is located.[; and] 12
4.[(e)] Charters granted to applicants by authorizers after a successful 13
appeal to the selected appellate board[state board], as outlined in 14
subparagraph[paragraph] 1.[(d)] of this paragraph[subsection], shall be 15
provided joint oversight by the authorizer and the selected appellate 16
board[state board] for, at a minimum, the first five (5) years of the 17
school's operation, and until the authorizer, the selected appellate 18
board[state board], and public charter school agree that charter oversight 19
may be provided solely by the authorizer. The selected appellate 20
board[state board] shall be a formal participant in all authorizing 21
decision making concerning the public charter school during that period, 22
and shall be included in all communication between the public charter 23
school and the authorizer. 24
[(4) (a) Within ten (10) days of taking action to approve or deny a charter 25
application that has been remanded back to the authorizer for 26
reconsideration, the authorizer shall notify the state board of the action 27 UNOFFICIAL COPY 22 RS BR 23
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taken. 1
(b) The authorizer shall provide a report to the charter applicant, the state 2
board, and the Education and Workforce Development Cabinet 3
simultaneously and shall include a copy of the resolution adopted by the 4
authorizer's board of directors identifying any action taken, the reason 5
for the decision, and an assurance as to compliance with all of the 6
procedural requirements and application elements found in this section 7
and KRS 160.1591 and 160.1593.] 8
Section 7. KRS 160.1596 is amended to read as follows: 9
(1) (a) For purposes of this section, a member of the board of directors of a public 10
charter school shall be considered an officer under KRS 61.040 and shall, 11
within sixty (60) days of final approval of an application, take an oath of 12
office as required under KRS 62.010. 13
(b) Within seventy-five (75) days of the final approval of an application, the 14
board of directors and the authorizer shall enter into a binding charter contract 15
that establishes the academic and operational performance expectations and 16
measures by which the public charter school will be evaluated. 17
(c) The executed charter contract shall become the final authorization for the 18
public charter school. The charter contract shall include: 19
1. The term of the contract; 20
2. The agreements relating to each item required under KRS 160.1592(3) 21
and 160.1593(3), as modified or supplemented during the approval 22
process; 23
3. The rights and duties of each party; 24
4. The administrative relationship between the authorizer and the public 25
charter school; 26
5. The allocation of state, local, and federal funds, and the schedule to 27 UNOFFICIAL COPY 22 RS BR 23
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disburse funds to the public charter school by the authorizer; 1
6. The process the authorizer will use to provide ongoing oversight, 2
including a process to conduct annual site visits; 3
7. The specific commitments of the public charter school authorizer 4
relating to its obligations to oversee, monitor the progress of, and 5
supervise the public charter school; 6
8. The process and criteria the authorizer will use to annually monitor and 7
evaluate the overall academic, operating, and fiscal conditions of the 8
public charter school, including the process the authorizer will use to 9
oversee the correction of any deficiencies found in the annual review; 10
9. The process for revision or amendment to the terms of the charter 11
contract agreed to by the authorizer and the board of directors of the 12
public charter school; 13
10. The process agreed to by the authorizer and the board of directors of the 14
public charter school that identifies how disputes between the authorizer 15
and the board will be handled; and 16
11. Any other terms and conditions agreed to by the authorizer and the board 17
of directors, including pre-opening conditions. Reasonable conditions 18
shall not include enrollment caps or operational requirements that place 19
undue constraints on a public charter school or are contradictory to the 20
provisions of KRS 160.1590 to 160.1599 and 161.141. Such conditions, 21
even when incorporated in a charter contract, shall be considered 22
unilaterally imposed conditions. 23
(d) 1. The performance provisions within a charter contract shall be based on a 24
performance framework that sets forth the academic and operational 25
performance indicators, measures, and metrics to be used by the 26
authorizer to evaluate each public charter school. The performance 27 UNOFFICIAL COPY 22 RS BR 23
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framework shall include at a minimum indicators, measures, and metrics 1
for: 2
a. Student academic proficiency; 3
b. Student academic growth; 4
c. Achievement gaps in both student proficiency and student growth 5
for student subgroups, including race, sex, socioeconomic status, 6
and areas of exceptionality; 7
d. Student attendance; 8
e. Student suspensions; 9
f. Student withdrawals; 10
g. Student exits; 11
h. Recurrent enrollment from year to year; 12
i. College or career readiness at the end of grade twelve (12); 13
j. Financial performance and sustainability; and 14
k. Board of directors' performance and stewardship, including 15
compliance with all applicable statutes, administrative regulations, 16
and terms of the charter contract. 17
2. The performance framework shall allow the inclusion of additional 18
rigorous, valid, and reliable indicators proposed by a public charter 19
school to augment external evaluations of its performance. The proposed 20
indicators shall be consistent with the purposes of KRS 160.1590 to 21
160.1599 and 161.141 and shall be negotiated with the authorizer. 22
3. The performance framework shall require the disaggregation of student 23
performance data by subgroups, including race, sex, socioeconomic 24
status, and areas of exceptionality. 25
4. The authorizer shall be responsible for collecting, analyzing, and 26
reporting to the state board all state-required assessment and 27 UNOFFICIAL COPY 22 RS BR 23
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achievement data for each public charter school it oversees. 1
(e) Annual student achievement performance targets shall be set, in accordance 2
with the state accountability system, by each public charter school in 3
conjunction with its authorizer, and those measures shall be designed to help 4
each school meet applicable federal, state, and authorizer goals. 5
(f) The charter contract shall be signed by the chair of the governing board of the 6
authorizer and the chair of the board of directors of the public charter school. 7
An approved charter application shall [not] serve as a charter contract for the 8
public charter school. 9
(g) No public charter school may commence operations without a charter contract 10
executed according to this section and approved in an open meeting of the 11
governing board of the authorizer. 12
(2) Within five (5) days after entering into a charter contract, a copy of the executed 13
contract shall be submitted by the authorizer to the commissioner of education. 14
(3) For the purposes of local and state funding, a public charter school shall serve as 15
a school of the district of location. 16
(4) For the purposes of federal funding, a public charter school shall serve as a local 17
education agency. 18
(5) All students enrolled in a public charter school shall be included in the average 19
daily attendance calculation under KRS 157.360 and the aggregate and average 20
daily attendance of transported pupils calculation under KRS 157.370 of the 21
district of location in the same manner as any other public schools in the district 22
and shall be reported by the public charter schools to the school district and state 23
department of education for purposes of calculating the state and local share of 24
funding for each public charter school. 25
(6) Notwithstanding the formula for allocating district funds under KRS 160.345(8) 26
and any other statute governing a district's funding of schools, unless an 27 UNOFFICIAL COPY 22 RS BR 23
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authorizing district agrees to provide a larger sum of funding in the charter 1
contract, after local capital outlay funds that are restricted in use pursuant to 2
KRS 157.420(4) and funds under KRS 157.440(1)(b) and KRS 157.621 necessary 3
to meet debt service obligations on bonds or other financing mechanisms for new 4
construction and renovation projects for school facilities are excluded, and before 5
any other funds are budgeted for district use, a district shall transfer to each of 6
the public charter schools located within the district: 7
(a) The amount that is proportional to the public charter school's enrollment or 8
average daily attendance in comparison with the overall district qualifying 9
numbers for: 10
1. Funds that are related to students' attendance and enrollment and 11
allocated to the district of location pursuant to KRS 157.360; 12
2. Any add-on or funding factors provided for in the state budget; 13
3. Any add-on or funding factors provided for by the Kentucky 14
Department of Education; and 15
4. Funds pursuant to KRS 157.360(2)(a) and (b) and KRS 16
157.360(13)(a). 17
For each funding source identified in this paragraph, the transfer amount 18
shall be based on the public charter school's qualifying student enrollment 19
or average daily attendance, depending on the method used in the funding 20
source's calculation; 21
(b) On a proportionate per pupil basis: 22
1. Education funds allocated to the school district pursuant to KRS 23
157.440(1)(a) and (2)(a), or pursuant to any applicable federal statute; 24
and 25
2. All taxes and payments in lieu of taxes transferred to the district of 26
location or levied and collected by the district of location; and 27 UNOFFICIAL COPY 22 RS BR 23
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(c) On a proportionate per pupil transported basis, transportation funds 1
calculated pursuant to KRS 157.360(2)(c) and 157.370 and distributed to 2
the district of location, unless the school district provides transportation to 3
students attending the public charter school under written terms agreed 4
upon by the district and the public charter school in either the charter 5
contract or, if the district is not the public charter school's authorizer, a 6
separate agreement. 7
(7) (a) If transportation funds are transferred under this section to a public charter 8
school, then the public charter school receiving those funds shall provide 9
transportation services to the enrolled students residing within the district of 10
location. 11
(b) If funds designated for providing additional services to specific students are 12
transferred under this section, then the public charter school receiving 13
those funds shall provide those services in the same manner as the district 14
of location. 15
(8) Notwithstanding the identification of funds to be transferred in this section, a 16
collaborative among local school boards authorizing a public charter school may 17
negotiate among the local boards and a charter applicant to identify the amount 18
of funds to be transferred to the public charter school. The agreement shall be 19
detailed in the charter contract. 20
(9) (a) For the calculation of amounts under subsections (6) and (7) of this section 21
during the first school year of operation of a public charter school in a 22
school district, beginning with the start of instruction: 23
1. The public charter school's average daily attendance shall be 24
calculated based on a projection of the public charter school's 25
enrollment and the district's overall average daily attendance; 26
2. The public charter school's aggregate daily attendance of students 27 UNOFFICIAL COPY 22 RS BR 23
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transported shall be calculated based on a projection of the public 1
charter school's enrollment and transportation plan and the district's 2
overall aggregate daily attendance of students transported; and 3
3. The amounts attributable to each individual student's attendance at 4
the public charter school shall be calculated based on a projection of 5
the public charter school's enrollment and demographics and the 6
district's overall enrollment and demographics. 7
(b) The calculations shall be adjusted in January of the first school year of 8
operation to reflect the first semester's actual data. Subsequent years of 9
operation shall be calculated using actual data from the prior school year. 10
(10) Funds identified for transfer under this section shall be transferred by a district 11
of location to each of the public charter schools located within the district. 12
However, up to three percent (3%) of the funds identified under this section for 13
transfer to a public charter school may be retained by an authorizer as an 14
authorizer fee. 15
(a) If the authorizer of a public charter school does not include the local board 16
of education of the district of location, then the district of location shall 17
transfer the authorizer fee to the public charter school's authorizer. 18
(b) If the Kentucky Public Charter School Commission or the Kentucky Board 19
of Education requires the authorization of a public charter school on 20
appeal from an authorizer, the commission shall receive twenty-five percent 21
(25%) of the authorizing fee for the duration of joint oversight required by 22
Section 6 of this Act. 23
(11) Funds identified for transfer by a district of location to a public charter school 24
under this section shall be transferred throughout the school year according to a 25
schedule determined by the state board. The scheduled dates shall be within thirty 26
(30) days of the dates of state disbursement of funds to school districts. Failure to 27 UNOFFICIAL COPY 22 RS BR 23
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transfer required funds shall, for every five (5) days late, result in a fine to the 1
violator of not less than five percent (5%) of the total funds per funding period to 2
be transferred. Fines imposed shall be transferred to the public charter school 3
affected by the delay. 4
(12) A public charter school shall be eligible for federal and state competitive grants 5
and shall not be excluded from an opportunity to apply or participate so long as 6
the public charter school meets the criteria established for the respective grants. 7
Each public charter school that receives grant aid shall comply with all 8
requirements to receive such aid. 9
(13) A public charter school shall receive a proportionate per pupil share of any state 10
moneys not otherwise identified in this section that is received by the school 11
district of location. The public charter school shall also receive, according to 12
federal law, moneys generated under federal categorical aid programs for 13
students that are eligible for the aid and attending the public charter school. 14
Each public charter school that receives such aid shall comply with all 15
requirements to receive such aid. 16
(14) The commissioner of education shall apply for all federal funding that supports 17
charter school initiatives for which a state must be the applicant and shall 18
cooperate with any public charter school in its efforts to seek federal funding. 19
(15) If a public charter school closes for any reason, the assets of the school shall be 20
distributed first to satisfy outstanding payroll obligations for employees of the 21
school, then to the creditors of the school, then to the district of location or 22
authorizing districts if authorized by a collaborative of local boards of education. 23
If the assets are insufficient to satisfy outstanding obligations, the authorizer 24
shall petition to Circuit Court of the county in which the public charter school is 25
located to prioritize the distribution of assets. 26
(16) The state board shall promulgate administrative regulations to: 27 UNOFFICIAL COPY 22 RS BR 23
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(a) Establish the process to be used to evaluate the performance of a charter 1
school authorizer, based upon the requirements of KRS 160.1590 to 160.1599 2
and 161.141, and the actions to be taken in response to failures in 3
performance; and 4
(b) Govern the calculation and distribution of funds due to public charter 5
schools from school districts, the schedule of distribution of funds, and the 6
imposition of fines for late distribution of funds. 7
[(4) The commissioner of education shall apply for financial assistance through the 8
federal government for the planning, program design, and initial implementation of 9
public charter schools in the state within sixty (60) days after June 29, 2017, or at 10
the first available grant application period. Federal grants include but are not limited 11
to the Charter Schools Program administered by the United States Department of 12
Education.] 13
(17) [(5)] By August 31, 2023[2019], and annually thereafter, each public charter school 14
authorizer shall submit to the commissioner of education, the secretary of the 15
Education and Workforce Development Cabinet, and the Interim Joint Committee 16
on Education a report to include: 17
(a) The names of each public charter school operating under contract with the 18
authorizer during the previous academic year that: 19
1. Closed during or after the academic year; or 20
2. Had the contract nonrenewed or revoked; 21
(b) The names of each public charter school operating under contract with the 22
authorizer during the previous academic year that have not yet begun to 23
operate; 24
(c) The number of applications received, the number reviewed, and the number 25
approved; 26
(d) A summary of the academic and financial performance of each public charter 27 UNOFFICIAL COPY 22 RS BR 23
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school operated under contract with the authorizer during the previous 1
academic year; and 2
(e) The authorizing duties and functions performed by the authorizer during the 3
previous academic year. 4
Section 8. KRS 160.1597 is amended to read as follows: 5
(1) Upon the approval of a charter contract by a public charter school authorizer, the 6
applicant shall be permitted to operate a public charter school for a term of five (5) 7
to seven (7) years, depending on the terms within the charter contract. 8
(2) The board of directors of the public charter school shall negotiate and execute a 9
charter contract with the governing body of the authorizer. 10
(3) A public charter school shall have all corporate powers necessary and desirable for 11
carrying out a public charter school program in accordance with this section and the 12
terms of the charter contract, including all of the powers of a local board of 13
education and of a local school district, except as otherwise provided in KRS 14
160.1590 to 160.1599. 15
(4) The powers granted to a public charter school under this section constitute the 16
performance of essential public purposes and governmental purposes of this state. A 17
public charter school shall be exempt to the same extent as other public schools 18
from all taxation, fees, assessments, or special ad valorem levies on its earnings and 19
its property. Instruments of conveyance to or from a public charter school and any 20
bonds or notes issued by a public charter school, together with the income received, 21
shall at all times be exempt from taxation. 22
(5) A public charter school shall not have the power to levy taxes or to acquire property 23
by eminent domain, but shall have police powers to the same extent and under the 24
same requirements as a local school district. 25
(6) The board of directors of the public charter school shall have final authority over 26
policy and operational decisions of the public charter school, although the decision-27 UNOFFICIAL COPY 22 RS BR 23
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making authority may be delegated to the administrators and staff of the school in 1
accordance with the provisions of the charter contract. 2
(7) Notwithstanding any other statute to the contrary, no civil liability shall attach to 3
any public charter school authorizer or to any of its members or employees, 4
individually or collectively, for any acts or omissions of the public charter school. 5
Neither the local school district nor the Commonwealth shall be liable for the debts 6
or financial obligations of a public charter school or any person or corporate entity 7
who operates a public charter school. 8
Section 9. KRS 160.1598 is amended to read as follows: 9
(1) A charter contract may be renewed by the authorizer for a term of duration of seven 10
(7)[five (5)] years, although the authorizer may vary the term to as few as five 11
(5)[three (3)] years. Any variation in the public charter school's term must be solely 12
based on the performance, demonstrated capacities, and particular circumstances of 13
a public charter school. Authorizers may grant renewal with specific conditions for 14
necessary improvements to a public charter school, but may not impose conditions 15
inconsistent with KRS 160.1590 to 160.1599. 16
(2) (a) No later than one (1) calendar year prior to the expiration date of a charter 17
contract, an authorizer shall issue a public charter school performance report 18
and charter renewal application guidance to the public charter school it 19
authorized. The performance report shall summarize the school's performance 20
record to date, based on the performance framework required under KRS 21
160.1596 and the charter contract, and shall provide notice of any weaknesses 22
or concerns related to the school that may jeopardize its position in seeking 23
renewal if not timely rectified and of any strengths or achievements that 24
support its position in seeking renewal. 25
(b) The school shall have twenty (20) days to respond to the performance report 26
and submit any corrections or clarification for the report to the authorizer. 27 UNOFFICIAL COPY 22 RS BR 23
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(c) Within ten (10) days of receiving a school's response, the authorizer shall 1
review the response and issue a final performance report to the school. 2
(3) (a) The renewal application guidance shall, at a minimum, provide an opportunity 3
for the public charter school to: 4
1. Present additional evidence beyond the data contained in the 5
performance report supporting its case for charter renewal; 6
2. Describe improvements undertaken or planned for the school; and 7
3. Detail the school's plan for the next charter term. 8
(b) The renewal application guidance shall include or refer explicitly to the 9
criteria that will guide the authorizer's renewal decisions, which shall be based 10
on the performance framework as identified in the charter contract. 11
(4) (a) No later than six (6) months prior to the expiration date of a charter contract, 12
the board of directors of a public charter school seeking charter contract 13
renewal shall submit a renewal application to the authorizer pursuant to the 14
renewal application guidance issued by the authorizer. 15
(b) The authorizer shall rule by resolution on the renewal application no later than 16
thirty (30) days after receipt of the application. 17
(5) In making charter application, renewal, or other appealable decisions, an authorizer 18
shall: 19
(a) Make its decision within established timeframes. Any failure of the authorizer 20
to act on a charter application, renewal, or other appealable decision shall be 21
deemed an approval[a denial] of the requested action[ and thereafter be 22
subject to appeal]; 23
(b) Base its decision on evidence of the public charter school's performance over 24
the term of the charter contract in accordance with the performance 25
framework required in the charter contract; 26
(c) Ensure that data used in making renewal decisions is available to the public 27 UNOFFICIAL COPY 22 RS BR 23
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charter school and the public; and 1
(d) Provide a public report summarizing the evidence basis for each decision. 2
(6) A charter contract may not be renewed if the authorizer determines that the public 3
charter school has: 4
(a) Committed a material violation of any of the terms, conditions, standards, or 5
procedures required under KRS 160.1590 to 160.1599 and 161.141 or the 6
charter contract, and has persistently failed to correct the violation after fair 7
and specific notice from the authorizer; 8
(b) Failed to meet or make significant progress toward the performance 9
expectations identified in the charter contract; 10
(c) Failed to meet generally accepted standards of fiscal management, and has 11
failed to correct the violation after fair and specific notice from the authorizer; 12
or 13
(d) Substantially violated any material provision of law from which the public 14
charter school was not exempted and has failed to correct the violation after 15
fair and specific notice from the authorizer. 16
(7) An authorizer may take immediate action to revoke a charter contract if a violation 17
threatens the health and safety of the students of the public charter school. 18
(8) The State Board of Education shall promulgate administrative regulations 19
establishing a revocation and nonrenewal process for charter authorizers that: 20
(a) Provides the charter holder with a timely notification of the prospect of 21
revocation or nonrenewal and of the reasons for such possible closure; 22
(b) Allows a charter holder a reasonable time in which to prepare a response; 23
(c) Provides the charter holder with an opportunity to submit documentation and 24
provide testimony challenging the rationale behind the closure and in support 25
of the continuation of the school at a[an] public meeting[orderly proceeding] 26
held for that purpose; 27 UNOFFICIAL COPY 22 RS BR 23
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(d) Allows the charter holder the right to representation by counsel and to call 1
witnesses on behalf of the charter holder; 2
(e) Permits the recording of such proceedings; and 3
(f) After a reasonable period of deliberation, requires a final determination be 4
made and conveyed in writing to the charter holder. 5
(9) If an authorizer revokes or does not renew a contract, the authorizer shall clearly 6
state, in a resolution of its governing board the reason for the revocation or 7
nonrenewal. 8
(10) Within ten (10) days of taking action to renew, not renew, or revoke a charter, the 9
authorizer shall report to the Kentucky Public Charter School Commission and the 10
Kentucky Board of Education[state board] the action taken, and shall provide a 11
report to the public charter school at the same time the report is issued to the 12
commission and state board. The report shall include a copy of the resolution 13
adopted by the authorizer's governing board describing the action taken and reasons 14
for the decision and assurance as to compliance with all of the procedural 15
requirements and application elements found in KRS 160.1593. 16
(11) An authorizer shall develop a public charter school closure protocol to ensure 17
timely notification to parents, orderly transition of students and student records to 18
new schools, and proper disposition of school funds, property, and assets. The 19
protocol shall specify tasks, timelines, and responsible parties, including delineating 20
the respective duties of the school and the authorizer. If a public charter school 21
closes for any reason, the authorizer shall oversee and work with the closing school 22
to ensure a smooth and orderly closure and transition for students and parents, as 23
guided by the closure protocol. If a public charter school is subject to closure, 24
following exhaustion of any appeal allowed under KRS 160.1595, an authorizer 25
may remove at will at any time any or all of the members of the board of directors 26
of the public charter school in connection with ensuring a smooth and orderly 27 UNOFFICIAL COPY 22 RS BR 23
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closure. If the authorizer removes members of the board of directors such that the 1
board of directors can no longer function, the authorizer shall be empowered to take 2
any further necessary and proper acts connected with closure of the public charter 3
school in the name and interest of the public charter school. 4
Section 10. KRS 160.1599 is amended to read as follows: 5
(1) An existing public school not scheduled for closure may be converted into a public 6
charter school and be identified to become[as] a conversion public charter school if 7
an applicant indicates to a valid authorizer the intent to convert an existing public 8
school into a conversion public charter school. 9
(2) A conversion public charter school may only be established if: 10
(a) A school has been identified by the Kentucky Department of Education as 11
performing in the lowest five percent (5%) of its level and sixty percent (60%) 12
of the parents or guardians of students who attend the school have signed a 13
petition requesting the conversion, which shall be completed and submitted to 14
a valid authorizer no later than ninety (90) days after the date of the first 15
signature; 16
(b) A school has been identified by the Kentucky Department of Education as not 17
performing in the lowest five percent (5%) of its level and sixty percent (60%) 18
of the parents or guardians of students who attend the school have signed a 19
petition requesting the conversion, which is approved by a majority vote of the 20
local school board. If approved the completed petition shall be submitted to a 21
valid authorizer no later than ninety (90) days after the date of the first 22
signature; or 23
(c) The local school board votes to convert an existing public school over which 24
it has authority. 25
(3) For each conversion option identified in subsection (2) of this section, the Kentucky 26
Board of Education shall promulgate administrative regulations to govern the 27 UNOFFICIAL COPY 22 RS BR 23
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processes and procedures for the petition, the conversion, and the operation of a 1
conversion public charter school. 2
(4) A conversion public charter school shall be governed by a board of directors 3
constituted and empowered as provided in KRS 160.1592. 4
(5) A conversion public charter school shall continue to comply with all federal and 5
state requirements concerning the treatment of children with special needs and 6
accept all students who attended the school prior to its conversion who wish to 7
attend. 8
(6) A conversion public charter school shall hire its own employees. 9
(7) An employee who works in a conversion public charter school shall be an employee 10
of the public charter school. 11
(8) (a) For any collective bargaining agreement entered into on or after June 29, 12
2017, a governing board shall not be bound by its collective bargaining 13
agreement for employees of a conversion public charter school. 14
(b) Employees of a conversion public charter school may organize and 15
collectively bargain only as a unit separate from other school employees. 16
(9) A conversion public charter school shall continue to be housed in the same public 17
school facility and shall have the option of using the existing assets of the school. 18
SECTION 11. A NEW SECTION OF KRS 160.1590 TO 160.1599 IS 19
CREATED TO READ AS FOLLOWS: 20
(1) The Kentucky Public Charter School Commission is hereby created as an 21
independent agency of the Commonwealth and shall be attached to the Kentucky 22
Department of Education for administrative purposes and be subject to the 23
reorganization by the Governor under KRS 12.028. The commission shall: 24
(a) Have jurisdiction to authorize high-quality public charter schools that 25
provide more options for students to attain a thorough and efficient 26
education, including through schools designed to expand the opportunities 27 UNOFFICIAL COPY 22 RS BR 23
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for at-risk students, for students with individualized education programs, 1
and for students seeking career readiness opportunities; 2
(b) Consider applications for public charter schools throughout the state; 3
(c) Approve charter applications and renew charter contracts that meet the 4
requirements of this section and Section 5 of this Act; and 5
(d) Review appeals of decisions of other authorizers as established in Section 6 6
of this Act. 7
(2) The commission shall be composed of the following seven (7) voting members: 8
(a) Six (6) members appointed by the Governor and subject to Senate 9
confirmation with each member residing in a different congressional 10
district. Upon a vacancy, the Speaker of the House and the President of the 11
Senate may submit recommended appointments to the Governor; and 12
(b) The commissioner of education or the commissioner's designee; 13
(3) (a) Each appointed member of the commission shall satisfy the following 14
requirements: 15
1. Be a citizen of Kentucky; 16
2. Possess experience and expertise in: 17
a. Public or nonprofit governance; 18
b. Management and finance; 19
c. Public school leadership; 20
d. Assessment, curriculum, or instruction; or 21
e. Public education law; and 22
3. Have stated a commitment to charter schooling as an effective strategy 23
for strengthening public education. 24
(b) No more than three (3) of the appointed members of the commission shall 25
be of the same political party. 26
(c) The appointed members shall reside in geographically diverse areas of the 27 UNOFFICIAL COPY 22 RS BR 23
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state. 1
(d) No person shall be appointed who holds any other public office or public 2
employment under the government of the Commonwealth or any of its 3
political subdivisions, or who is an appointee or employee of any charter 4
school board of directors or an immediate family member of an employee 5
under the jurisdiction of the commission or any public charter school board 6
of directors. 7
(e) No person shall be appointed who is engaged in, or employed by, a person 8
or company with a primary function that involves the sale of services and 9
activities to public charter schools or charter school boards of directors. 10
(4) Three (3) of the initial appointments shall be for two (2) year terms and three (3) 11
of the initial appointments shall be for one (1) year terms. Thereafter, all 12
appointments shall be for two (2) year terms. The initial appointments shall be 13
made before August 1, 2022, and the commission shall meet within one (1) 14
month at the call of the Governor to organize and select a chair. A vacancy on the 15
commission shall be filled for the remainder of the unexpired term in the same 16
manner as the original appointment. An appointed member shall not serve more 17
than two (2) consecutive full terms, except that a member may be reappointed 18
after a break in service of one (1) full term. 19
(5) The commission shall annually elect a chairperson. 20
(6) An appointed member of the commission may be removed from office by the 21
Governor for official misconduct, incompetence, neglect of duty, or gross 22
immorality. An appointed member may also be removed if the member's personal 23
incapacity renders the member incapable or unfit to discharge the duties of the 24
office or if the member is absent from a number of commission meetings as 25
established in commission bylaws. 26
(7) Except in the case of gross negligence or reckless disregard of the safety and 27 UNOFFICIAL COPY 22 RS BR 23
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well-being of another person, the commission and members of the commission in 1
their official capacity are immune from civil liability with respect to all activities 2
related to a public charter schools authorized by the commission. 3
(8) The commission shall employ and fix the compensation of an executive director, 4
who shall be its secretary and principal executive officer. The executive director 5
shall demonstrate an understanding of public charter schools as a strategy for 6
strengthening public education and shall possess an understanding of state and 7
federal education law. The executive director shall be responsible for: 8
(a) Organizing and staffing meetings of the commission; 9
(b) Establishing policies to ensure retention of charter appeals documentation; 10
(c) Ensuring that minutes and other financial, procedural, appeal, and 11
operational records are securely maintained and archived; 12
(d) Producing internal and external correspondence and communication; 13
(e) Submitting reports and agenda items for review and approval; 14
(f) Assisting the commission in conducting the business of the commission; 15
(g) Carrying out policy and directives of the commission; 16
(h) Preparing budget submissions; 17
(i) Ensuring that charter appeals are provided to the commission and 18
arranging for independent reviews of appeals as needed; 19
(j) Ensuring that an independent audit of commission finances is conducted 20
biennially; 21
(k) Ensuring that formal written agreements are executed for the procurement 22
of administrative and legal services; 23
(l) Formalizing office policies and procedures relating to charter authorizer 24
and financial operations; 25
(m) Developing and implementing a process for monitoring expenditures and 26
reconciling on a monthly basis commission fund receipts; and 27 UNOFFICIAL COPY 22 RS BR 23
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(n) Other activities necessary to ensure that the commission meets its 1
designated duties and responsibilities. 2
(9) The commission shall have full authority to employ and fix the compensation for 3
any personnel, including counsel, as it may deem necessary to effectively 4
administer and conduct its duties. The commission shall obtain office space, 5
furniture, stationery, and any other proper supplies and conveniences reasonably 6
necessary to carry out its duties. 7
(10) The commission shall promulgate administrative regulations in accordance with 8
KRS Chapter 13A to establish: 9
1. Commission operating and accountability procedures; 10
2. Appeals procedures in compliance with Section 6 of this Act; 11
3. Oversight standards and procedures for public charter schools which the 12
commission has authorized or shares joint oversight with an authorizer 13
pursuant to Section 5 of this Act; and 14
4. Procedures for the collection and accounting of authorizer fees collected by 15
the commission. 16
(11) The commission shall hold meetings at least four (4) times a year and as 17
frequently as it deems necessary at the times and places within this state as the 18
commission may designate. The majority of the voting members shall constitute a 19
quorum and all meetings shall be conducted in accordance with the Open 20
Meetings Act, KRS 61.805 to 61.850. 21
(12) The commission may sue and be sued in its own name. 22
(13) Commission members shall receive a per diem of one hundred dollars ($100) for 23
attendance at each commission meeting and may be reimbursed for ordinary 24
travel and other expenses while engaged in the business of the commission. 25
Section 12. KRS 161.141 is amended to read as follows: 26
(1) As used in this section, "education service provider," "public charter school," 27 UNOFFICIAL COPY 22 RS BR 23
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"local school board," and "local school district" have the same meanings as in KRS 1
160.1590. 2
(2) (a) Public charter school employees shall participate in the Teachers' Retirement 3
System or the County Employees Retirement System, as determined by their 4
eligibility for participation in the appropriate system and provided the public 5
charter school satisfies the criteria set by the Internal Revenue Service to 6
participate in a governmental retirement plan. 7
(b) Teachers and other certified personnel shall make any required employee 8
contributions to the Teachers' Retirement System under KRS 161.220 to 9
161.716. 10
(c) Classified employees shall make any required employee contributions to the 11
County Employees Retirement System under KRS 78.510 to 78.852. 12
(d) A public charter school shall participate in the state-sponsored health 13
insurance program on the same basis as a local school district pursuant to 14
Sections 13 of this Act. 15
(e) Any state appropriation for retirement, health, or life insurance benefits 16
made on behalf of a local public employee or a school district employee 17
shall also be made on behalf of a public charter school employee. 18
(f) A public charter school shall make any required employer contributions to 19
the Teachers' Retirement System under KRS 161.220 to 161.716 and the 20
County Employees Retirement System under KRS 78.510 to 78.852 in the 21
same manner as local school districts. 22
(g) For the purposes of calculating sick leave credit under KRS 161.220 to 23
161.716, teachers and other certified personnel of a public charter school 24
shall not accumulate more days of sick leave during their employment with 25
the public charter school than they would have otherwise accumulated as a 26
certified employee of the school district of location. 27 UNOFFICIAL COPY 22 RS BR 23
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(3) (a) A public charter school employee shall not be required to be a member of any 1
collective bargaining agreement. 2
(b) A public charter school employee who enters into any collective bargaining 3
unit must do so as a separate unit from the local school district. 4
(4) A local school board shall not require any employee of the local school district to be 5
employed in a public charter school or any student enrolled in the school district to 6
attend a public charter school. 7
(5) A local school board shall not harass, threaten, discipline, discharge, retaliate, or in 8
any manner discriminate against any district employee involved directly or 9
indirectly with an application to establish a public charter school. 10
(6) An employee of an education service provider shall not be considered a public 11
charter school employee, but shall meet the same certification and background 12
check requirements otherwise required of a public charter school employee. 13
Section 13. KRS 18A.225 is amended to read as follows: 14
(1) (a) The term "employee" for purposes of this section means: 15
1. Any person, including an elected public official, who is regularly 16
employed by any department, office, board, agency, or branch of state 17
government; or by a public postsecondary educational institution; or by 18
any city, urban-county, charter county, county, or consolidated local 19
government, whose legislative body has opted to participate in the state-20
sponsored health insurance program pursuant to KRS 79.080; and who 21
is either a contributing member to any one (1) of the retirement systems 22
administered by the state, including but not limited to the Kentucky 23
Retirement Systems, County Employees Retirement System, Kentucky 24
Teachers' Retirement System, the Legislators' Retirement Plan, or the 25
Judicial Retirement Plan; or is receiving a contractual contribution from 26
the state toward a retirement plan; or, in the case of a public 27 UNOFFICIAL COPY 22 RS BR 23
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postsecondary education institution, is an individual participating in an 1
optional retirement plan authorized by KRS 161.567; or is eligible to 2
participate in a retirement plan established by an employer who ceases 3
participating in the Kentucky Employees Retirement System pursuant to 4
KRS 61.522 whose employees participated in the health insurance plans 5
administered by the Personnel Cabinet prior to the employer's effective 6
cessation date in the Kentucky Employees Retirement System; 7
2. Any certified or classified employee of a local board of education or a 8
public charter school as defined in Section 1 of this Act; 9
3. Any elected member of a local board of education; 10
4. Any person who is a present or future recipient of a retirement 11
allowance from the Kentucky Retirement Systems, County Employees 12
Retirement System, Kentucky Teachers' Retirement System, the 13
Legislators' Retirement Plan, the Judicial Retirement Plan, or the 14
Kentucky Community and Technical College System's optional 15
retirement plan authorized by KRS 161.567, except that a person who is 16
receiving a retirement allowance and who is age sixty-five (65) or older 17
shall not be included, with the exception of persons covered under KRS 18
61.702(4)(c), unless he or she is actively employed pursuant to 19
subparagraph 1. of this paragraph; and 20
5. Any eligible dependents and beneficiaries of participating employees 21
and retirees who are entitled to participate in the state-sponsored health 22
insurance program; 23
(b) The term "health benefit plan" for the purposes of this section means a health 24
benefit plan as defined in KRS 304.17A-005; 25
(c) The term "insurer" for the purposes of this section means an insurer as defined 26
in KRS 304.17A-005; and 27 UNOFFICIAL COPY 22 RS BR 23
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(d) The term "managed care plan" for the purposes of this section means a 1
managed care plan as defined in KRS 304.17A-500. 2
(2) (a) The secretary of the Finance and Administration Cabinet, upon the 3
recommendation of the secretary of the Personnel Cabinet, shall procure, in 4
compliance with the provisions of KRS 45A.080, 45A.085, and 45A.090, 5
from one (1) or more insurers authorized to do business in this state, a group 6
health benefit plan that may include but not be limited to health maintenance 7
organization (HMO), preferred provider organization (PPO), point of service 8
(POS), and exclusive provider organization (EPO) benefit plans encompassing 9
all or any class or classes of employees. With the exception of employers 10
governed by the provisions of KRS Chapters 16, 18A, and 151B, all 11
employers of any class of employees or former employees shall enter into a 12
contract with the Personnel Cabinet prior to including that group in the state 13
health insurance group. The contracts shall include but not be limited to 14
designating the entity responsible for filing any federal forms, adoption of 15
policies required for proper plan administration, acceptance of the contractual 16
provisions with health insurance carriers or third-party administrators, and 17
adoption of the payment and reimbursement methods necessary for efficient 18
administration of the health insurance program. Health insurance coverage 19
provided to state employees under this section shall, at a minimum, contain 20
the same benefits as provided under Kentucky Kare Standard as of January 1, 21
1994, and shall include a mail-order drug option as provided in subsection 22
(13) of this section. All employees and other persons for whom the health care 23
coverage is provided or made available shall annually be given an option to 24
elect health care coverage through a self-funded plan offered by the 25
Commonwealth or, if a self-funded plan is not available, from a list of 26
coverage options determined by the competitive bid process under the 27 UNOFFICIAL COPY 22 RS BR 23
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provisions of KRS 45A.080, 45A.085, and 45A.090 and made available 1
during annual open enrollment. 2
(b) The policy or policies shall be approved by the commissioner of insurance and 3
may contain the provisions the commissioner of insurance approves, whether 4
or not otherwise permitted by the insurance laws. 5
(c) Any carrier bidding to offer health care coverage to employees shall agree to 6
provide coverage to all members of the state group, including active 7
employees and retirees and their eligible covered dependents and 8
beneficiaries, within the county or counties specified in its bid. Except as 9
provided in subsection (20) of this section, any carrier bidding to offer health 10
care coverage to employees shall also agree to rate all employees as a single 11
entity, except for those retirees whose former employers insure their active 12
employees outside the state-sponsored health insurance program. 13
(d) Any carrier bidding to offer health care coverage to employees shall agree to 14
provide enrollment, claims, and utilization data to the Commonwealth in a 15
format specified by the Personnel Cabinet with the understanding that the data 16
shall be owned by the Commonwealth; to provide data in an electronic form 17
and within a time frame specified by the Personnel Cabinet; and to be subject 18
to penalties for noncompliance with data reporting requirements as specified 19
by the Personnel Cabinet. The Personnel Cabinet shall take strict precautions 20
to protect the confidentiality of each individual employee; however, 21
confidentiality assertions shall not relieve a carrier from the requirement of 22
providing stipulated data to the Commonwealth. 23
(e) The Personnel Cabinet shall develop the necessary techniques and capabilities 24
for timely analysis of data received from carriers and, to the extent possible, 25
provide in the request-for-proposal specifics relating to data requirements, 26
electronic reporting, and penalties for noncompliance. The Commonwealth 27 UNOFFICIAL COPY 22 RS BR 23
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shall own the enrollment, claims, and utilization data provided by each carrier 1
and shall develop methods to protect the confidentiality of the individual. The 2
Personnel Cabinet shall include in the October annual report submitted 3
pursuant to the provisions of KRS 18A.226 to the Governor, the General 4
Assembly, and the Chief Justice of the Supreme Court, an analysis of the 5
financial stability of the program, which shall include but not be limited to 6
loss ratios, methods of risk adjustment, measurements of carrier quality of 7
service, prescription coverage and cost management, and statutorily required 8
mandates. If state self-insurance was available as a carrier option, the report 9
also shall provide a detailed financial analysis of the self-insurance fund 10
including but not limited to loss ratios, reserves, and reinsurance agreements. 11
(f) If any agency participating in the state-sponsored employee health insurance 12
program for its active employees terminates participation and there is a state 13
appropriation for the employer's contribution for active employees' health 14
insurance coverage, then neither the agency nor the employees shall receive 15
the state-funded contribution after termination from the state-sponsored 16
employee health insurance program. 17
(g) Any funds in flexible spending accounts that remain after all reimbursements 18
have been processed shall be transferred to the credit of the state-sponsored 19
health insurance plan's appropriation account. 20
(h) Each entity participating in the state-sponsored health insurance program shall 21
provide an amount at least equal to the state contribution rate for the employer 22
portion of the health insurance premium. For any participating entity that used 23
the state payroll system, the employer contribution amount shall be equal to 24
but not greater than the state contribution rate. 25
(3) The premiums may be paid by the policyholder: 26
(a) Wholly from funds contributed by the employee, by payroll deduction or 27 UNOFFICIAL COPY 22 RS BR 23
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otherwise; 1
(b) Wholly from funds contributed by any department, board, agency, public 2
postsecondary education institution, or branch of state, city, urban-county, 3
charter county, county, or consolidated local government; or 4
(c) Partly from each, except that any premium due for health care coverage or 5
dental coverage, if any, in excess of the premium amount contributed by any 6
department, board, agency, postsecondary education institution, or branch of 7
state, city, urban-county, charter county, county, or consolidated local 8
government for any other health care coverage shall be paid by the employee. 9
(4) If an employee moves his or her place of residence or employment out of the service 10
area of an insurer offering a managed health care plan, under which he or she has 11
elected coverage, into either the service area of another managed health care plan or 12
into an area of the Commonwealth not within a managed health care plan service 13
area, the employee shall be given an option, at the time of the move or transfer, to 14
change his or her coverage to another health benefit plan. 15
(5) No payment of premium by any department, board, agency, public postsecondary 16
educational institution, or branch of state, city, urban-county, charter county, 17
county, or consolidated local government shall constitute compensation to an 18
insured employee for the purposes of any statute fixing or limiting the 19
compensation of such an employee. Any premium or other expense incurred by any 20
department, board, agency, public postsecondary educational institution, or branch 21
of state, city, urban-county, charter county, county, or consolidated local 22
government shall be considered a proper cost of administration. 23
(6) The policy or policies may contain the provisions with respect to the class or classes 24
of employees covered, amounts of insurance or coverage for designated classes or 25
groups of employees, policy options, terms of eligibility, and continuation of 26
insurance or coverage after retirement. 27 UNOFFICIAL COPY 22 RS BR 23
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(7) Group rates under this section shall be made available to the disabled child of an 1
employee regardless of the child's age if the entire premium for the disabled child's 2
coverage is paid by the state employee. A child shall be considered disabled if he or 3
she has been determined to be eligible for federal Social Security disability benefits. 4
(8) The health care contract or contracts for employees shall be entered into for a period 5
of not less than one (1) year. 6
(9) The secretary shall appoint thirty-two (32) persons to an Advisory Committee of 7
State Health Insurance Subscribers to advise the secretary or the secretary's designee 8
regarding the state-sponsored health insurance program for employees. The 9
secretary shall appoint, from a list of names submitted by appointing authorities, 10
members representing school districts from each of the seven (7) Supreme Court 11
districts, members representing state government from each of the seven (7) 12
Supreme Court districts, two (2) members representing retirees under age sixty-five 13
(65), one (1) member representing local health departments, two (2) members 14
representing the Kentucky Teachers' Retirement System, and three (3) members at 15
large. The secretary shall also appoint two (2) members from a list of five (5) names 16
submitted by the Kentucky Education Association, two (2) members from a list of 17
five (5) names submitted by the largest state employee organization of nonschool 18
state employees, two (2) members from a list of five (5) names submitted by the 19
Kentucky Association of Counties, two (2) members from a list of five (5) names 20
submitted by the Kentucky League of Cities, and two (2) members from a list of 21
names consisting of five (5) names submitted by each state employee organization 22
that has two thousand (2,000) or more members on state payroll deduction. The 23
advisory committee shall be appointed in January of each year and shall meet 24
quarterly. 25
(10) Notwithstanding any other provision of law to the contrary, the policy or policies 26
provided to employees pursuant to this section shall not provide coverage for 27 UNOFFICIAL COPY 22 RS BR 23
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obtaining or performing an abortion, nor shall any state funds be used for the 1
purpose of obtaining or performing an abortion on behalf of employees or their 2
dependents. 3
(11) Interruption of an established treatment regime with maintenance drugs shall be 4
grounds for an insured to appeal a formulary change through the established appeal 5
procedures approved by the Department of Insurance, if the physician supervising 6
the treatment certifies that the change is not in the best interests of the patient. 7
(12) Any employee who is eligible for and elects to participate in the state health 8
insurance program as a retiree, or the spouse or beneficiary of a retiree, under any 9
one (1) of the state-sponsored retirement systems shall not be eligible to receive the 10
state health insurance contribution toward health care coverage as a result of any 11
other employment for which there is a public employer contribution. This does not 12
preclude a retiree and an active employee spouse from using both contributions to 13
the extent needed for purchase of one (1) state sponsored health insurance policy for 14
that plan year. 15
(13) (a) The policies of health insurance coverage procured under subsection (2) of 16
this section shall include a mail-order drug option for maintenance drugs for 17
state employees. Maintenance drugs may be dispensed by mail order in 18
accordance with Kentucky law. 19
(b) A health insurer shall not discriminate against any retail pharmacy located 20
within the geographic coverage area of the health benefit plan and that meets 21
the terms and conditions for participation established by the insurer, including 22
price, dispensing fee, and copay requirements of a mail-order option. The 23
retail pharmacy shall not be required to dispense by mail. 24
(c) The mail-order option shall not permit the dispensing of a controlled 25
substance classified in Schedule II. 26
(14) The policy or policies provided to state employees or their dependents pursuant to 27 UNOFFICIAL COPY 22 RS BR 23
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this section shall provide coverage for obtaining a hearing aid and acquiring hearing 1
aid-related services for insured individuals under eighteen (18) years of age, subject 2
to a cap of one thousand four hundred dollars ($1,400) every thirty-six (36) months 3
pursuant to KRS 304.17A-132. 4
(15) Any policy provided to state employees or their dependents pursuant to this section 5
shall provide coverage for the diagnosis and treatment of autism spectrum disorders 6
consistent with KRS 304.17A-142. 7
(16) Any policy provided to state employees or their dependents pursuant to this section 8
shall provide coverage for obtaining amino acid-based elemental formula pursuant 9
to KRS 304.17A-258. 10
(17) If a state employee's residence and place of employment are in the same county, and 11
if the hospital located within that county does not offer surgical services, intensive 12
care services, obstetrical services, level II neonatal services, diagnostic cardiac 13
catheterization services, and magnetic resonance imaging services, the employee 14
may select a plan available in a contiguous county that does provide those services, 15
and the state contribution for the plan shall be the amount available in the county 16
where the plan selected is located. 17
(18) If a state employee's residence and place of employment are each located in counties 18
in which the hospitals do not offer surgical services, intensive care services, 19
obstetrical services, level II neonatal services, diagnostic cardiac catheterization 20
services, and magnetic resonance imaging services, the employee may select a plan 21
available in a county contiguous to the county of residence that does provide those 22
services, and the state contribution for the plan shall be the amount available in the 23
county where the plan selected is located. 24
(19) The Personnel Cabinet is encouraged to study whether it is fair and reasonable and 25
in the best interests of the state group to allow any carrier bidding to offer health 26
care coverage under this section to submit bids that may vary county by county or 27 UNOFFICIAL COPY 22 RS BR 23
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by larger geographic areas. 1
(20) Notwithstanding any other provision of this section, the bid for proposals for health 2
insurance coverage for calendar year 2004 shall include a bid scenario that reflects 3
the statewide rating structure provided in calendar year 2003 and a bid scenario that 4
allows for a regional rating structure that allows carriers to submit bids that may 5
vary by region for a given product offering as described in this subsection: 6
(a) The regional rating bid scenario shall not include a request for bid on a 7
statewide option; 8
(b) The Personnel Cabinet shall divide the state into geographical regions which 9
shall be the same as the partnership regions designated by the Department for 10
Medicaid Services for purposes of the Kentucky Health Care Partnership 11
Program established pursuant to 907 KAR 1:705; 12
(c) The request for proposal shall require a carrier's bid to include every county 13
within the region or regions for which the bid is submitted and include but not 14
be restricted to a preferred provider organization (PPO) option; 15
(d) If the Personnel Cabinet accepts a carrier's bid, the cabinet shall award the 16
carrier all of the counties included in its bid within the region. If the Personnel 17
Cabinet deems the bids submitted in accordance with this subsection to be in 18
the best interests of state employees in a region, the cabinet may award the 19
contract for that region to no more than two (2) carriers; and 20
(e) Nothing in this subsection shall prohibit the Personnel Cabinet from including 21
other requirements or criteria in the request for proposal. 22
(21) Any fully insured health benefit plan or self-insured plan issued or renewed on or 23
after July 12, 2006, to public employees pursuant to this section which provides 24
coverage for services rendered by a physician or osteopath duly licensed under KRS 25
Chapter 311 that are within the scope of practice of an optometrist duly licensed 26
under the provisions of KRS Chapter 320 shall provide the same payment of 27 UNOFFICIAL COPY 22 RS BR 23
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coverage to optometrists as allowed for those services rendered by physicians or 1
osteopaths. 2
(22) Any fully insured health benefit plan or self-insured plan issued or renewed on or 3
after June 29, 2021, to public employees pursuant to this section shall comply with: 4
(a) KRS 304.12-237; 5
(b) KRS 304.17A-270 and 304.17A-525; 6
(c) KRS 304.17A-600 to 304.17A-633; 7
(d) KRS 205.593; 8
(e) KRS 304.17A-700 to 304.17A-730; 9
(f) KRS 304.14-135; 10
(g) KRS 304.17A-580 and 304.17A-641; 11
(h) KRS 304.99-123; 12
(i) KRS 304.17A-138; and 13
(j) Administrative regulations promulgated pursuant to statutes listed in this 14
subsection. 15
(23) Any fully insured health benefit plan or self-insured plan issued or renewed on or 16
after January 1, 2022, to public employees pursuant to this section shall comply 17
with KRS 304.17A-148. 18
Section 14. KRS 161.220 is amended to read as follows: 19
As used in KRS 161.220 to 161.716 and 161.990: 20
(1) "Retirement system" means the arrangement provided for in KRS 161.220 to 21
161.716 and 161.990 for payment of allowances to members; 22
(2) "Retirement allowance" means the amount annually payable during the course of his 23
or her natural life to a member who has been retired by reason of service; 24
(3) "Disability allowance" means the amount annually payable to a member retired by 25
reason of disability; 26
(4) "Member" means the commissioner of education, deputy commissioners, associate 27 UNOFFICIAL COPY 22 RS BR 23
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commissioners, and all division directors in the State Department of Education, 1
employees participating in the system pursuant to KRS 196.167(3)(b)1., and any 2
full-time teacher or professional occupying a position requiring certification or 3
graduation from a four (4) year college or university, as a condition of employment, 4
and who is employed by public boards, institutions, or agencies as follows: 5
(a) Local boards of education and public charter schools if the public charter 6
school satisfies the criteria set by the Internal Revenue Service to participate 7
in a governmental retirement plan; 8
(b) Eastern Kentucky University, Kentucky State University, Morehead State 9
University, Murray State University, Western Kentucky University, and any 10
community colleges established under the control of these universities; 11
(c) State-operated secondary area vocational education or area technology centers, 12
Kentucky School for the Blind, and Kentucky School for the Deaf; 13
(d) Other public education agencies as created by the General Assembly and those 14
members of the administrative staff of the Teachers' Retirement System of the 15
State of Kentucky whom the board of trustees may designate by administrative 16
regulation; 17
(e) Regional cooperative organizations formed by local boards of education or 18
other public educational institutions listed in this subsection, for the purpose 19
of providing educational services to the participating organizations; 20
(f) All full-time members of the staffs of the Kentucky Association of School 21
Administrators, Kentucky Education Association, Kentucky Vocational 22
Association, Kentucky High School Athletic Association, Kentucky Academic 23
Association, and the Kentucky School Boards Association who were members 24
of the Kentucky Teachers' Retirement System or were qualified for a position 25
covered by the system at the time of employment by the association in the 26
event that the board of directors of the respective association petitions to be 27 UNOFFICIAL COPY 22 RS BR 23
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included. The board of trustees of the Kentucky Teachers' Retirement System 1
may designate by resolution whether part-time employees of the petitioning 2
association are to be included. The state shall make no contributions on 3
account of these employees, either full-time or part-time. The association shall 4
make the employer's contributions, including any contribution that is specified 5
under KRS 161.550. The provisions of this paragraph shall be applicable to 6
persons in the employ of the associations on or subsequent to July 1, 1972; 7
(g) Employees of the Council on Postsecondary Education who were employees 8
of the Department for Adult Education and Literacy and who were members 9
of the Kentucky Teachers' Retirement System at the time the department was 10
transferred to the council pursuant to Executive Order 2003-600; 11
(h) The Office of Career and Technical Education; 12
(i) The Office of Vocational Rehabilitation; 13
(j) The Kentucky Educational Collaborative for State Agency Children; 14
(k) The Governor's Scholars Program; 15
(l) Any person who is retired for service from the retirement system and is 16
reemployed by an employer identified in this subsection in a position that the 17
board of trustees deems to be a member, except that any person who becomes 18
a member on or after January 1, 2022, and subsequently draws a monthly 19
lifetime retirement allowance, shall upon reemployment after retirement not 20
earn a second retirement account; 21
(m) Employees of the former Cabinet for Workforce Development who are 22
transferred to the Kentucky Community and Technical College System and 23
who occupy positions covered by the Kentucky Teachers' Retirement System 24
shall remain in the Teachers' Retirement System. New employees occupying 25
these positions, as well as newly created positions qualifying for Teachers' 26
Retirement System coverage that would have previously been included in the 27 UNOFFICIAL COPY 22 RS BR 23
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former Cabinet for Workforce Development, shall be members of the 1
Teachers' Retirement System; 2
(n) Effective January 1, 1998, employees of state community colleges who are 3
transferred to the Kentucky Community and Technical College System shall 4
continue to participate in federal old age, survivors, disability, and hospital 5
insurance, and a retirement plan other than the Kentucky Teachers' Retirement 6
System offered by Kentucky Community and Technical College System. New 7
employees occupying positions in the Kentucky Community and Technical 8
College System as referenced in KRS 164.5807(5) that would not have 9
previously been included in the former Cabinet for Workforce Development, 10
shall participate in federal old age, survivors, disability, and hospital insurance 11
and have a choice at the time of employment of participating in a retirement 12
plan provided by the Kentucky Community and Technical College System, 13
including participation in the Kentucky Teachers' Retirement System, on the 14
same basis as faculty of the state universities as provided in KRS 161.540 and 15
161.620; 16
(o) Employees of the Office of General Counsel, the Office of Budget and 17
Administrative Services, and the Office of Quality and Human Resources 18
within the Office of the Secretary of the former Cabinet for Workforce 19
Development and the commissioners of the former Department for Adult 20
Education and Literacy and the former Department for Technical Education 21
who were contributing to the Kentucky Teachers' Retirement System as of 22
July 15, 2000; 23
(p) Employees of the Kentucky Department of Education only who are graduates 24
of a four (4) year college or university, notwithstanding a substitution clause 25
within a job classification, and who are serving in a professional job 26
classification as defined by the department; 27 UNOFFICIAL COPY 22 RS BR 23
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(q) The Governor's School for Entrepreneurs Program; 1
(r) Employees of the Office of Adult Education within the Department of 2
Workforce Investment in the Education and Workforce Development Cabinet 3
who were employees of the Council on Postsecondary Education, Kentucky 4
Adult Education Program and who were members of the Kentucky Teachers' 5
Retirement System at the time the Program was transferred to the cabinet 6
pursuant to Executive Orders 2019-0026 and 2019-0027; and 7
(s) Employees of the Education Professional Standards Board who were members 8
of the Kentucky Teachers' Retirement System at the time the employees were 9
transferred to the Kentucky Department of Education pursuant to Executive 10
Order 2020-590; 11
(5) "Present teacher" means any teacher who was a teacher on or before July 1, 1940, 12
and became a member of the retirement system created by 1938 (1st Extra. Sess.) 13
Ky. Acts ch. 1, on the date of the inauguration of the system or within one (1) year 14
after that date, and any teacher who was a member of a local teacher retirement 15
system in the public elementary or secondary schools of the state on or before July 16
1, 1940, and continued to be a member of the system until he or she, with the 17
membership of the local retirement system, became a member of the state Teachers' 18
Retirement System or who becomes a member under the provisions of KRS 19
161.470(4); 20
(6) "New teacher" means any member not a present teacher; 21
(7) "Prior service" means the number of years during which the member was a teacher 22
in Kentucky prior to July 1, 1941, except that not more than thirty (30) years' prior 23
service shall be allowed or credited to any teacher; 24
(8) "Subsequent service" means the number of years during which the teacher is a 25
member of the Teachers' Retirement System after July 1, 1941; 26
(9) "Final average salary" means the average of the five (5) highest annual salaries 27 UNOFFICIAL COPY 22 RS BR 23
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which the member has received for service in a covered position and on which the 1
member has made contributions, or on which the public board, institution, or 2
agency has picked-up member contributions pursuant to KRS 161.540(2), or the 3
average of the five (5) years of highest salaries as defined in KRS 61.680(2)(a), 4
which shall include picked-up member contributions. Additionally, the board of 5
trustees may approve a final average salary based upon the average of the three (3) 6
highest salaries for individuals who become members prior to January 1, 2022, who 7
are at least fifty-five (55) years of age and have a minimum of twenty-seven (27) 8
years of Kentucky service credit. However, if any of the five (5) or three (3) highest 9
annual salaries used to calculate the final average salary was paid within the three 10
(3) years immediately prior to the date of the member's retirement for individuals 11
who become members prior to January 1, 2022, or within the five (5) years 12
immediately prior to the date of the member's retirement for individuals who 13
become members on or after January 1, 2022, the amount of salary to be included 14
for each of those three (3) years or five (5) years, as applicable, for the purpose of 15
calculating the final average salary shall be limited to the lesser of: 16
(a) The member's actual salary; or 17
(b) The member's annual salary that was used for retirement purposes during each 18
of the prior three (3) years or five (5) years, as applicable, plus a percentage 19
increase equal to the percentage increase received by all other members 20
employed by the public board, institution, or agency, or for members of school 21
districts, the highest percentage increase received by members on any one (1) 22
rank and step of the salary schedule of the school district. The increase shall 23
be computed on the salary that was used for retirement purposes. The board of 24
trustees may promulgate an administrative regulation in accordance with KRS 25
Chapter 13A to establish a methodology for measuring the limitation so that 26
the combined increases in salary for each of the last three (3) full years of 27 UNOFFICIAL COPY 22 RS BR 23
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salary prior to retirement shall not exceed the total permissible percentage 1
increase received by other members of the employer for the same three (3) 2
year period. 3
For individuals who became members of the retirement system prior to July 1, 4
2021, this limitation shall not apply if the member receives an increase in salary in a 5
percentage exceeding that received by the other members, and this increase was 6
accompanied by a corresponding change in position or in length of employment. 7
The board of trustees may promulgate an administrative regulation in accordance 8
with KRS Chapter 13A to provide definitions for a corresponding change in 9
position or in length of employment. This limitation shall also not apply to the 10
payment to a member for accrued annual leave if the individual becomes a member 11
before July 1, 2008, or accrued sick leave which is authorized by statute and which 12
shall, for individuals subject to KRS 161.155(10) who became nonuniversity 13
members of the system prior to January 1, 2022, be included as part of a retiring 14
member's annual compensation for the member's last year of active service; 15
(10) "Annual compensation" means the total salary received by a member as 16
compensation for all services performed in employment covered by the retirement 17
system during a fiscal year. Annual compensation shall not include payment for any 18
benefit or salary adjustments made by the public board, institution, or agency to the 19
member or on behalf of the member which is not available as a benefit or salary 20
adjustment to other members employed by that public board, institution, or agency. 21
Annual compensation shall not include the salary supplement received by a member 22
under KRS 157.197(2)(c), 158.6455, or 158.782 on or after July 1, 1996. Under no 23
circumstances shall annual compensation include compensation that is earned by a 24
member while on assignment to an organization or agency that is not a public board, 25
institution, or agency listed in subsection (4) of this section. In the event that federal 26
law requires that a member continue membership in the retirement system even 27 UNOFFICIAL COPY 22 RS BR 23
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though the member is on assignment to an organization or agency that is not a 1
public board, institution, or agency listed in subsection (4) of this section, the 2
member's annual compensation for retirement purposes shall be deemed to be the 3
annual compensation, as limited by subsection (9) of this section, last earned by the 4
member while still employed solely by and providing services directly to a public 5
board, institution, or agency listed in subsection (4) of this section. The board of 6
trustees shall determine if any benefit or salary adjustment qualifies as annual 7
compensation. For an individual who becomes a member on or after July 1, 2008, 8
annual compensation shall not include lump-sum payments upon termination of 9
employment for accumulated annual or compensatory leave; 10
(11) "Age of member" means the age attained on the first day of the month immediately 11
following the birthdate of the member. This definition is limited to retirement 12
eligibility and does not apply to tenure of members; 13
(12) "Employ," and derivatives thereof, means relationships under which an individual 14
provides services to an employer as an employee, as an independent contractor, as 15
an employee of a third party, or under any other arrangement as long as the services 16
provided to the employer are provided in a position that would otherwise be covered 17
by the Kentucky Teachers' Retirement System and as long as the services are being 18
provided to a public board, institution, or agency listed in subsection (4) of this 19
section; 20
(13) "Regular interest" means: 21
(a) For an individual who becomes a member prior to July 1, 2008, interest at 22
three percent (3%) per annum;: 23
(b) For an individual who becomes a member on or after July 1, 2008, but prior to 24
January 1, 2022, interest at two and one-half percent (2.5%) per annum for 25
purposes of crediting interest to the teacher savings account or any other 26
contributions made by the employee that are refundable to the employee upon 27 UNOFFICIAL COPY 22 RS BR 23
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termination of employment; and 1
(c) For an individual who becomes a member on or after January 1, 2022, the 2
rolling five (5) year yield on a thirty (30) year United States Treasury bond as 3
of the end of May prior to the most recently completed fiscal year, except that: 4
1. Once the member has at least sixty (60) months of service in the system 5
it shall mean interest at two and one-half percent (2.5%) per annum for 6
purposes of crediting interest to employee contributions in the 7
foundational benefit component or any other contributions made by the 8
employee to the foundational benefit component that are refundable to 9
the employee upon termination of employment; and 10
2. The board shall have the authority to adjust the regular interest rate for 11
individuals who become members on or after January 1, 2022, in 12
accordance with KRS 161.633 and 161.634; 13
(14) "Accumulated contributions" means the contributions of a member to the teachers' 14
savings fund, including picked-up member contributions as described in KRS 15
161.540(2), plus accrued regular interest; 16
(15) "Annuitant" means a person who receives a retirement allowance or a disability 17
allowance; 18
(16) "Local retirement system" means any teacher retirement or annuity system created 19
in any public school district in Kentucky in accordance with the laws of Kentucky; 20
(17) "Fiscal year" means the twelve (12) month period from July 1 to June 30. The 21
retirement plan year is concurrent with this fiscal year. A contract for a member 22
employed by a local board of education may not exceed two hundred sixty-one 23
(261) days in the fiscal year; 24
(18) "Public schools" means the schools and other institutions mentioned in subsection 25
(4) of this section; 26
(19) "Dependent" as used in KRS 161.520 and 161.525 means a person who was 27 UNOFFICIAL COPY 22 RS BR 23
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receiving, at the time of death of the member, at least one-half (1/2) of the support 1
from the member for maintenance, including board, lodging, medical care, and 2
related costs; 3
(20) "Active contributing member" means a member currently making contributions to 4
the Teachers' Retirement System, who made contributions in the next preceding 5
fiscal year, for whom picked-up member contributions are currently being made, or 6
for whom these contributions were made in the next preceding fiscal year; 7
(21) "Full-time" means employment in a position that requires services on a continuing 8
basis equal to at least seven-tenths (7/10) of normal full-time service on a fiscal year 9
basis; 10
(22) "Full actuarial cost," when used to determine the payment that a member must pay 11
for service credit means the actuarial value of all costs associated with the 12
enhancement of a member's benefits or eligibility for benefit enhancements, 13
including health insurance supplement payments made by the retirement system. 14
The actuary for the retirement system shall determine the full actuarial value costs 15
and actuarial cost factor tables as provided in KRS 161.400; 16
(23) "Last annual compensation" means the annual compensation, as defined by 17
subsection (10) of this section and as limited by subsection (9) of this section, 18
earned by the member during the most recent period of contributing service, either 19
consecutive or nonconsecutive, that is sufficient to provide the member with one (1) 20
full year of service credit in the Kentucky Teachers' Retirement System, and which 21
compensation is used in calculating the member's initial retirement allowance, 22
excluding bonuses, retirement incentives, payments for accumulated sick leave, 23
annual, personal, and compensatory leave, and any other lump-sum payment. For an 24
individual who becomes a member on or after July 1, 2008, payments for annual or 25
compensatory leave shall not be included in determining the member's last annual 26
compensation; 27 UNOFFICIAL COPY 22 RS BR 23
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(24) "Participant" means a member, as defined by subsection (4) of this section, or an 1
annuitant, as defined by subsection (15) of this section; 2
(25) "Qualified domestic relations order" means any judgment, decree, or order, 3
including approval of a property settlement agreement, that: 4
(a) Is issued by a court or administrative agency; and 5
(b) Relates to the provision of child support, alimony payments, or marital 6
property rights to an alternate payee; 7
(26) "Alternate payee" means a spouse, former spouse, child, or other dependent of a 8
participant, who is designated to be paid retirement benefits in a qualified domestic 9
relations order; 10
(27) "University member" means an individual who becomes a member through 11
employment with an employer specified in subsection (4)(b) and (n) of this section; 12
(28) "Nonuniversity member" means an individual who becomes a member through 13
employment with an employer specified under subsection (4) of this section, except 14
for those members employed by an employer specified in subsection (4)(b) and (n) 15
of this section; 16
(29) "Accumulated employer contribution" means the employer contribution deposited 17
to a member's account through the supplemental benefit component and regular 18
interest credited on such amounts as provided by KRS 161.635 for nonuniversity 19
members and KRS 161.636 for university members; 20
(30) "Accumulated account balance" means: 21
(a) For members who began participating in the system prior to January 1, 2022, 22
the member's accumulated contributions; or 23
(b) For members who began participating in the system on or after January 1, 24
2022, the combined sum of the member's accumulated contributions and the 25
member's accumulated employer contributions; 26
(31) "Foundational benefit component" means the benefits provided by KRS 161.220 to 27 UNOFFICIAL COPY 22 RS BR 23
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161.716 to individuals who become members on or after January 1, 2022, except for 1
the supplemental benefit component and retiree health benefits set forth in KRS 2
161.675; and 3
(32) "Supplemental benefit component" means: 4
(a) The benefit established pursuant to KRS 161.635 for individuals who become 5
nonuniversity members on or after January 1, 2022; or 6
(b) The benefit established pursuant to KRS 161.636 for individuals who become 7
university members on or after January 1, 2022. 8
Section 15. KRS 78.510 is amended to read as follows: 9
As used in KRS 78.510 to 78.852, unless the context otherwise requires: 10
(1) "System" means the County Employees Retirement System; 11
(2) "Board" means the board of trustees of the system as provided in KRS 78.782; 12
(3) "County" means any county, or nonprofit organization created and governed by a 13
county, counties, or elected county officers, sheriff and his or her employees, county 14
clerk and his or her employees, circuit clerk and his or her deputies, former circuit 15
clerks or former circuit clerk deputies, or political subdivision or instrumentality, 16
including school boards, cities, charter county governments, urban-county 17
governments, consolidated local governments, or unified local governments 18
participating in the system by order appropriate to its governmental structure, as 19
provided in KRS 78.530, and if the board is willing to accept the agency, 20
organization, or corporation, the board being hereby granted the authority to 21
determine the eligibility of the agency to participate; 22
(4) "School board" means: 23
(a) Any board of education participating in the system by order appropriate to its 24
governmental structure, as provided in KRS 78.530, and if the board is willing 25
to accept the agency or corporation, the board being hereby granted the 26
authority to determine the eligibility of the agency to participate; or 27 UNOFFICIAL COPY 22 RS BR 23
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(b) A public charter school as defined in Section 1 of this Act if the public 1
charter school satisfies the criteria set by the Internal Revenue Service to 2
participate in a governmental retirement plan; 3
(5) "Examiner" means the medical examiners as provided in KRS 61.665; 4
(6) "Employee" means every regular full-time appointed or elective officer or employee 5
of a participating county and the coroner of a participating county, whether or not he 6
or she qualifies as a regular full-time officer. The term shall not include persons 7
engaged as independent contractors, seasonal, emergency, temporary, and part-time 8
workers. In case of any doubt, the board shall determine if a person is an employee 9
within the meaning of KRS 78.510 to 78.852; 10
(7) "Employer" means a county, as defined in subsection (3) of this section, the elected 11
officials of a county, or any authority of the county having the power to appoint or 12
elect an employee to office or employment in the county; 13
(8) "Member" means any employee who is included in the membership of the system or 14
any former employee whose membership has not ceased under KRS 78.535; 15
(9) "Service" means the total of current service and prior service as defined in this 16
section; 17
(10) "Current service" means the number of years and months of employment as an 18
employee, on and after July 1, 1958, for which creditable compensation is paid and 19
employee contributions deducted, except as otherwise provided; 20
(11) "Prior service" means the number of years and completed months, expressed as a 21
fraction of a year, of employment as an employee, prior to July 1, 1958, for which 22
creditable compensation was paid. An employee shall be credited with one (1) 23
month of prior service only in those months he received compensation for at least 24
one hundred (100) hours of work. Twelve (12) months of current service in the 25
system shall be required to validate prior service; 26
(12) "Accumulated contributions" means the sum of all amounts deducted from the 27 UNOFFICIAL COPY 22 RS BR 23
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compensation of a member and credited to his individual account in the members' 1
account, including employee contributions picked up after August 1, 1982, pursuant 2
to KRS 78.610(4), together with interest credited, on the amounts, and any other 3
amounts the member shall have contributed thereto, including interest credited 4
thereon. "Accumulated contributions" shall not include employee contributions that 5
are deposited into accounts established pursuant to 26 U.S.C. sec. 401(h) within the 6
fund established in KRS 78.520, as prescribed by KRS 78.5536(3)(b); 7
(13) "Creditable compensation": 8
(a) Except as limited by paragraph (c) of this subsection, means all salary, wages, 9
and fees, including payments for compensatory time, paid to the employee as 10
a result of services performed for the employer or for time during which the 11
member is on paid leave, which are includable on the member's federal form 12
W-2 wage and tax statement under the heading "wages, tips, other 13
compensation", including employee contributions picked up after August 1, 14
1982, pursuant to KRS 78.610(4). The creditable compensation of fee officers 15
who receive salary, fees, maintenance, or other perquisites as a result of their 16
official duties is the gross amount received decreased by the cost of salary 17
paid deputies and clerks and the cost of office supplies and other official 18
expenses; 19
(b) Includes: 20
1. Lump-sum bonuses, severance pay, or employer-provided payments for 21
purchase of service credit, which shall be averaged over the employee's 22
service with the system in which it is recorded if it is equal to or greater 23
than one thousand dollars ($1,000); 24
2. Cases where compensation includes maintenance and other perquisites, 25
but the board shall fix the value of that part of the compensation not paid 26
in money; 27 UNOFFICIAL COPY 22 RS BR 23
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3. Lump-sum payments for creditable compensation paid as a result of an 1
order of a court of competent jurisdiction, the Personnel Board, or the 2
Commission on Human Rights, or for any creditable compensation paid 3
in anticipation of settlement of an action before a court of competent 4
jurisdiction, the Personnel Board, or the Commission on Human Rights, 5
including notices of violations of state or federal wage and hour statutes 6
or violations of state or federal discrimination statutes, which shall be 7
credited to the fiscal year during which the wages were earned or should 8
have been paid by the employer. This subparagraph shall also include 9
lump-sum payments for reinstated wages pursuant to KRS 61.569, 10
which shall be credited to the period during which the wages were 11
earned or should have been paid by the employer; 12
4. Amounts which are not includable in the member's gross income by 13
virtue of the member having taken a voluntary salary reduction provided 14
for under applicable provisions of the Internal Revenue Code; and 15
5. Elective amounts for qualified transportation fringes paid or made 16
available on or after January 1, 2001, for calendar years on or after 17
January 1, 2001, that are not includable in the gross income of the 18
employee by reason of 26 U.S.C. sec. 132(f)(4); and 19
(c) Excludes: 20
1. Living allowances, expense reimbursements, lump-sum payments for 21
accrued vacation leave, sick leave except as provided in KRS 78.616(5), 22
and other items determined by the board; 23
2. For employees who begin participating on or after September 1, 2008, 24
lump-sum payments for compensatory time; 25
3. Training incentive payments for city officers paid as set out in KRS 26
64.5277 to 64.5279; 27 UNOFFICIAL COPY 22 RS BR 23
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4. For employees who begin participating on or after August 1, 2016, 1
nominal fees paid for services as a volunteer; and 2
5. Any salary or wages paid to an employee for services as a Kentucky 3
State Police school resource officer as defined by KRS 158.441; 4
(14) "Final compensation" means: 5
(a) For a member who begins participating before September 1, 2008, who is 6
employed in a nonhazardous position, the creditable compensation of the 7
member during the five (5) fiscal years he or she was paid at the highest 8
average monthly rate divided by the number of months of service credit during 9
that five (5) year period multiplied by twelve (12). The five (5) years may be 10
fractional and need not be consecutive. If the number of months of service 11
credit during the five (5) year period is less than forty-eight (48), one (1) or 12
more additional fiscal years shall be used; 13
(b) For a member who is employed in a nonhazardous position, whose effective 14
retirement date is between August 1, 2001, and January 1, 2009, and whose 15
total service credit is at least twenty-seven (27) years and whose age and years 16
of service total at least seventy-five (75), final compensation means the 17
creditable compensation of the member during the three (3) fiscal years the 18
member was paid at the highest average monthly rate divided by the number 19
of months of service credit during that three (3) year period multiplied by 20
twelve (12). The three (3) years may be fractional and need not be 21
consecutive. If the number of months of service credit during the three (3) 22
year period is less than twenty-four (24), one (1) or more additional fiscal 23
years shall be used; 24
(c) For a member who begins participating before September 1, 2008, who is 25
employed in a hazardous position, as provided in KRS 61.592, the creditable 26
compensation of the member during the three (3) fiscal years he or she was 27 UNOFFICIAL COPY 22 RS BR 23
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paid at the highest average monthly rate divided by the number of months of 1
service credit during that three (3) year period multiplied by twelve (12). The 2
three (3) years may be fractional and need not be consecutive. If the number of 3
months of service credit during the three (3) year period is less than twenty-4
four (24), one (1) or more additional fiscal years, which may contain less than 5
twelve (12) months of service credit, shall be used; 6
(d) For a member who begins participating on or after September 1, 2008, but 7
prior to January 1, 2014, who is employed in a nonhazardous position, the 8
creditable compensation of the member during the five (5) complete fiscal 9
years immediately preceding retirement divided by five (5). Each fiscal year 10
used to determine final compensation must contain twelve (12) months of 11
service credit. If the member does not have five (5) complete fiscal years that 12
each contain twelve (12) months of service credit, then one (1) or more 13
additional fiscal years, which may contain less than twelve (12) months of 14
service credit, shall be added until the number of months in the final 15
compensation calculation is at least sixty (60) months; or 16
(e) For a member who begins participating on or after September 1, 2008, but 17
prior to January 1, 2014, who is employed in a hazardous position as provided 18
in KRS 61.592, the creditable compensation of the member during the three 19
(3) complete fiscal years he or she was paid at the highest average monthly 20
rate divided by three (3). Each fiscal year used to determine final 21
compensation must contain twelve (12) months of service credit. If the 22
member does not have three (3) complete fiscal years that each contain twelve 23
(12) months of service credit, then one (1) or more additional fiscal years, 24
which may contain less than twelve (12) months of service credit, shall be 25
added until the number of months in the final compensation calculation is at 26
least thirty-six (36) months; 27 UNOFFICIAL COPY 22 RS BR 23
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(15) "Final rate of pay" means the actual rate upon which earnings of an employee were 1
calculated during the twelve (12) month period immediately preceding the 2
member's effective retirement date, and shall include employee contributions picked 3
up after August 1, 1982, pursuant to KRS 78.610(4). The rate shall be certified to 4
the system by the employer and the following equivalents shall be used to convert 5
the rate to an annual rate: two thousand eighty (2,080) hours for eight (8) hour 6
workdays, one thousand nine hundred fifty (1,950) hours for seven and one-half 7
(7.5) hour workdays, two hundred sixty (260) days, fifty-two (52) weeks, twelve 8
(12) months, one (1) year; 9
(16) "Retirement allowance" means the retirement payments to which a member is 10
entitled; 11
(17) "Actuarial equivalent" means a benefit of equal value when computed upon the 12
basis of the actuarial tables adopted by the board. In cases of disability retirement, 13
the options authorized by KRS 61.635 shall be computed by adding ten (10) years 14
to the age of the member, unless the member has chosen the Social Security 15
adjustment option as provided for in KRS 61.635(8), in which case the member's 16
actual age shall be used. For members who begin participating in the system prior to 17
January 1, 2014, no disability retirement option shall be less than the same option 18
computed under early retirement; 19
(18) "Normal retirement date", unless otherwise provided in KRS 78.510 to 78.852, 20
means: 21
(a) For a member with service in a nonhazardous position, the sixty-fifth birthday 22
of a member; 23
(b) For a member with service in a hazardous position who begins participating 24
before September 1, 2008, the first day of the month following a member's 25
fifty-fifth birthday; or 26
(c) For a member with service in a hazardous position who begins participating 27 UNOFFICIAL COPY 22 RS BR 23
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on or after September 1, 2008, the first day of the month following a member's 1
sixtieth birthday; 2
(19) "Fiscal year" of the system means the twelve (12) months from July 1 through the 3
following June 30, which shall also be the plan year. The "fiscal year" shall be the 4
limitation year used to determine contribution and benefits limits as set out in 26 5
U.S.C. sec. 415; 6
(20) "Agency reporting official" means the person designated by the participating 7
employer who shall be responsible for forwarding all employer and employee 8
contributions and a record of the contributions to the system and for performing 9
other administrative duties pursuant to the provisions of KRS 78.510 to 78.852; 10
(21) "Regular full-time positions," as used in subsection (6) of this section, shall mean 11
all positions that average one hundred (100) or more hours per month, determined 12
by using the number of hours actually worked in a calendar or fiscal year, or eighty 13
(80) or more hours per month in the case of noncertified employees of school 14
boards, determined by using the number of hours actually worked in a calendar or 15
school year, unless otherwise specified, except: 16
(a) Seasonal positions, which although temporary in duration, are positions which 17
coincide in duration with a particular season or seasons of the year and that 18
may recur regularly from year to year, in which case the period of time shall 19
not exceed nine (9) months, except for employees of school boards, in which 20
case the period of time shall not exceed six (6) months; 21
(b) Emergency positions that are positions that do not exceed thirty (30) working 22
days and are nonrenewable; 23
(c) Temporary positions that are positions of employment with a participating 24
agency for a period of time not to exceed twelve (12) months and not 25
renewable; 26
(d) Probationary positions which are positions of employment with a participating 27 UNOFFICIAL COPY 22 RS BR 23
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employer that do not exceed twelve (12) months and that are used uniformly 1
by the participating agency on new employees who would otherwise be 2
eligible for participation in the system. Probationary positions shall not be 3
renewable by the participating employer for the same employee, unless the 4
employee has not been employed with the participating employer for a period 5
of at least twelve (12) months; or 6
(e) Part-time positions that are positions that may be permanent in duration, but 7
that require less than a calendar or fiscal year average of one hundred (100) 8
hours of work per month, determined by using the number of months actually 9
worked within a calendar or fiscal year, in the performance of duty, except in 10
case of noncertified employees of school boards, the school term average shall 11
be eighty (80) hours of work per month, determined by using the number of 12
months actually worked in a calendar or school year, in the performance of 13
duty; 14
(22) "Alternate participation plan" means a method of participation in the system as 15
provided for by KRS 78.530(3); 16
(23) "Retired member" means any former member receiving a retirement allowance or 17
any former member who has on file at the retirement office the necessary 18
documents for retirement benefits and is no longer contributing to the system; 19
(24) "Current rate of pay" means the member's actual hourly, daily, weekly, biweekly, 20
monthly, or yearly rate of pay converted to an annual rate as defined in final rate of 21
pay. The rate shall be certified by the employer; 22
(25) "Beneficiary" means the person, persons, estate, trust, or trustee designated by the 23
member in accordance with KRS 61.542 or 61.705 to receive any available benefits 24
in the event of the member's death. As used in KRS 78.5536, beneficiary shall not 25
mean an estate, trust, or trustee; 26
(26) "Recipient" means the retired member, the person or persons designated as 27 UNOFFICIAL COPY 22 RS BR 23
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beneficiary by the member and drawing a retirement allowance as a result of the 1
member's death, or a dependent child drawing a retirement allowance. An alternate 2
payee of a qualified domestic relations order shall not be considered a recipient, 3
except for purposes of KRS 61.623; 4
(27) "Person" means a natural person; 5
(28) "School term or year" means the twelve (12) months from July 1 through the 6
following June 30; 7
(29) "Retirement office" means the Kentucky Public Pensions Authority office building 8
in Frankfort, unless otherwise designated by the Kentucky Public Pensions 9
Authority; 10
(30) "Vested" for purposes of determining eligibility for purchasing service credit under 11
KRS 61.552 means the employee has at least forty-eight (48) months of service if 12
age sixty-five (65) or older or at least sixty (60) months of service if under the age 13
of sixty-five (65). For purposes of this subsection, "service" means service in the 14
systems administered by the Kentucky Retirement Systems and County Employees 15
Retirement System; 16
(31) "Participating" means an employee is currently earning service credit in the system 17
as provided in KRS 78.615; 18
(32) "Month" means a calendar month; 19
(33) "Membership date" means the date upon which the member began participating in 20
the system as provided in KRS 78.615; 21
(34) "Participant" means a member, as defined by subsection (8) of this section, or a 22
retired member, as defined by subsection (23) of this section; 23
(35) "Qualified domestic relations order" means any judgment, decree, or order, 24
including approval of a property settlement agreement, that: 25
(a) Is issued by a court or administrative agency; and 26
(b) Relates to the provision of child support, alimony payments, or marital 27 UNOFFICIAL COPY 22 RS BR 23
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property rights to an alternate payee; 1
(36) "Alternate payee" means a spouse, former spouse, child, or other dependent of a 2
participant, who is designated to be paid retirement benefits in a qualified domestic 3
relations order; 4
(37) "Accumulated employer credit" means the employer pay credit deposited to the 5
member's account and interest credited on such amounts as provided by KRS 6
78.5512 and 78.5516; 7
(38) "Accumulated account balance" means: 8
(a) For members who began participating in the system prior to January 1, 2014, 9
the member's accumulated contributions; or 10
(b) For members who began participating in the system on or after January 1, 11
2014, in the hybrid cash balance plan as provided by KRS 78.5512 and 12
78.5516, the combined sum of the member's accumulated contributions and 13
the member's accumulated employer credit; 14
(39) "Volunteer" means an individual who: 15
(a) Freely and without pressure or coercion performs hours of service for an 16
employer participating in one (1) of the systems administered by Kentucky 17
Retirement Systems or the County Employees Retirement System without 18
receipt of compensation for services rendered, except for reimbursement of 19
actual expenses, payment of a nominal fee to offset the costs of performing 20
the voluntary services, or both; and 21
(b) If a retired member, does not become an employee, leased employee, or 22
independent contractor of the employer for which he or she is performing 23
volunteer services for a period of at least twelve (12) months following the 24
retired member's most recent retirement date; 25
(40) "Nominal fee" means compensation earned for services as a volunteer that does not 26
exceed five hundred dollars ($500) per month. Compensation earned for services as 27 UNOFFICIAL COPY 22 RS BR 23
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a volunteer from more than one (1) participating employer during a month shall be 1
aggregated to determine whether the compensation exceeds the five hundred dollars 2
($500) per month maximum provided by this subsection; 3
(41) "Nonhazardous position" means a position that does not meet the requirements of 4
KRS 78.5520 or has not been approved by the board as a hazardous position; 5
(42) "Hazardous position" means a position that meets the requirements of KRS 78.5520 6
and has been approved by the board as hazardous; 7
(43) "Level-percentage-of-payroll amortization method" means a method of determining 8
the annual amortization payment on the unfunded actuarial accrued liability as 9
expressed as a percentage of payroll over a set period of years. Under this method, 10
the percentage of payroll shall be projected to remain constant for all years 11
remaining in the set period and the unfunded actuarially accrued liability shall be 12
projected to be fully amortized at the conclusion of the set period; 13
(44) "Increment" means twelve (12) months of service credit which are purchased. The 14
twelve (12) months need not be consecutive. The final increment may be less than 15
twelve (12) months; 16
(45) "Last day of paid employment" means the last date employer and employee 17
contributions are required to be reported in accordance with KRS 16.543, 61.543, or 18
78.615 to the retirement office in order for the employee to receive current service 19
credit for the month. Last day of paid employment does not mean a date the 20
employee receives payment for accrued leave, whether by lump sum or otherwise, if 21
that date occurs twenty-four (24) or more months after previous contributions; 22
(46) "Objective medical evidence" means reports of examinations or treatments; medical 23
signs which are anatomical, physiological, or psychological abnormalities that can 24
be observed; psychiatric signs which are medically demonstrable phenomena 25
indicating specific abnormalities of behavior, affect, thought, memory, orientation, 26
or contact with reality; or laboratory findings which are anatomical, physiological, 27 UNOFFICIAL COPY 22 RS BR 23
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or psychological phenomena that can be shown by medically acceptable laboratory 1
diagnostic techniques, including but not limited to chemical tests, 2
electrocardiograms, electroencephalograms, X-rays, and psychological tests; 3
(47) "Hazardous disability" as used in KRS 78.510 to 78.852 means a disability which 4
results in an employee's total incapacity to continue as an employee in a hazardous 5
position, but the employee is not necessarily deemed to be totally and permanently 6
disabled to engage in other occupations for remuneration or profit; 7
(48) "Act in line of duty" means, for purposes of members serving in a hazardous 8
position, an act occurring which was required in the performance of the principal 9
duties of the hazardous position as defined by the job description; 10
(49) "Dependent child" means a child in the womb and a natural or legally adopted child 11
of the member who has neither attained age eighteen (18) nor married or who is an 12
unmarried full-time student who has not attained age twenty-two (22). Solely in the 13
case of a member who dies as a direct result of an act in line of duty as defined in 14
this section or who dies as a result of a duty-related injury as defined in KRS 15
61.621, "dependent child" also means a naturally or legally adopted disabled child 16
of the member, regardless of the child's age, if the child has been determined to be 17
eligible for federal Social Security disability benefits or is being claimed as a 18
qualifying child for tax purposes due to the child's total and permanent disability; 19
(50) "Normal retirement age" means the age at which the member meets the 20
requirements for his or her normal retirement date as provided by subsection (18) of 21
this section; 22
(51) "Disability retirement date" means the first day of the month following the last day 23
of paid employment; 24
(52) "Monthly average pay" means: 25
(a) In the case of a member who dies as a direct result of an act in line of duty as 26
defined in KRS 16.505 or who dies as a result of a duty-related injury as 27 UNOFFICIAL COPY 22 RS BR 23
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defined in KRS 61.621, the higher of the member's monthly final rate of pay 1
or the average monthly creditable compensation earned by the deceased 2
member during his or her last twelve (12) months of employment; or 3
(b) In the case where a member becomes totally and permanently disabled as a 4
direct result of an act in line of duty as defined in KRS 16.505 or becomes 5
disabled as a result of a duty-related injury as defined in KRS 61.621 and is 6
eligible for the benefits provided by KRS 61.621(5)(a), the higher of the 7
member's monthly final rate of pay or the average monthly creditable 8
compensation earned by the disabled member during his or her last twelve 9
(12) months of employment prior to the date the act in line of duty or duty-10
related injury occurred; 11
(53) "Authority" means the Kentucky Public Pensions Authority as provided by KRS 12
61.505; and 13
(54) "Executive director" means the executive director of the Kentucky Public Pensions 14
Authority. 15
Section 16. If any provision of this Act or its application to any person or 16
circumstance is held invalid by a court of competent jurisdiction, the invalidity does not 17
affect other provisions or applications of this section that can be given effect without the 18
invalid provision or application, and to this end the provisions of this Act are severable. 19
Section 17. Pursuant to KRS 141.504(2)(b), it is the intent of the General 20
Assembly that scholarships granted to students under KRS 141.500 through 141.901 be 21
limited to counties with a population of a population of 90,000 or greater. However, if 22
education opportunity accounts are held unconstitutional or unenforceable due to the 23
provision of KRS 141.504, the court's remedy shall be to apply KRS 141.500 through 24
141.901 to all counties. 25
Section 18. Due to the urgent nature of litigation and the importance of 26
establishing education opportunity accounts for Kentucky students, an emergency is 27 UNOFFICIAL COPY 22 RS BR 23
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declared to exist, and Section 17 of this Act takes effect upon its passage and approval by 1
the Governor or upon its otherwise becoming a law. 2