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AN ACT relating to the Department of Financial Institutions. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 286.1-440 is amended to read as follows: 3
(1) (a) The commissioner shall appoint a sufficient number of examiners and 4
assistant examiners to examine all institutions coming under the supervision 5
of the department. 6
(b) A salary schedule for examiners and assistant examiners shall: 7
1. Be established[prepared] by the commissioner; 8
2. Be substantially equivalent to the salaries paid by the Federal Deposit 9
Insurance Corporation, Securities and Exchange Commission, and 10
other federal supervisory agencies of similar jurisdiction; 11
3. Not be subject to the limitations of KRS 18A.110 or administrative 12
regulations promulgated thereunder specifically relating to 13
establishing or amending the compensation of examiners or assistant 14
examiners; and 15
4. Not be subject to approval by the secretary of the Personnel Cabinet or 16
[and presented to ]the secretary of the Finance and Administration 17
Cabinet[ for approval. In the event an advisory state banking board is 18
established by law, the appointment and compensation of examiners and 19
assistant examiners shall be with the advice of such board]. 20
(2) The commissioner, the deputy commissioner, and each examiner shall take the 21
constitutional oath of office. 22
(3) Neither the commissioner, nor the deputy commissioner, nor any examiner or 23
assistant examiner shall be indebted directly or indirectly either as borrower, 24
indorser, surety, or guarantor, to any bank or trust company under his supervision or 25
subject to his examination, nor shall he or she be a director, officer or employee in 26
such bank or trust company, nor engage or become interested in the sale of 27 UNOFFICIAL COPY 24 RS BR 1800
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securities as a business or in the negotiation of loans for others. 1
(4) No person shall be assigned to examine the affairs of any bank or trust company in 2
a county in which he holds stock in either a state or national bank or trust company. 3
(5) The commissioner may enter into contracts with any bank supervisory agency that 4
has concurrent jurisdiction over a state bank or the branch of an out-of-state state 5
bank operating in this state to engage the services of the agency's examiners at a 6
reasonable rate of compensation, or to provide the services of the commissioner's 7
examiners to the agency at a reasonable rate of compensation. Any contract entered 8
into pursuant to this subsection shall be deemed a sole source contract under the 9
provisions of KRS 45A.095. 10
Section 2. KRS 64.640 is amended to read as follows: 11
(1) Except as otherwise provided in subsection (2) of this section, and excepting 12
officers elected by popular vote, employees of the General Assembly, including 13
employees of the Legislative Research Commission, members of boards and 14
commissions, those officers and employees of Kentucky Educational Television 15
exempt from classified service as provided in KRS 18A.115, presidents and 16
employees of the state universities and the state colleges, officers employed by the 17
Department of Kentucky State Police under KRS Chapter 16, and persons 18
employed by the commissioner of parks on a temporary basis under KRS 148.026, 19
the Personnel Cabinet shall prepare schedules of compensation, payable out of the 20
State Treasury, with a minimum salary rate, and other salary rates as are deemed 21
necessary or advisable, for the office or position of employment of every state 22
officer and employee, including specifically the offices and positions of 23
employment in every constitutional administrative department, statutory 24
administrative department, independent agency, board, commission, or other unit of 25
state government. The language of any statute empowering a board, commission, 26
authority, or other administrative body for which the Personnel Cabinet provides 27 UNOFFICIAL COPY 24 RS BR 1800
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personnel and payroll services, except for examiners and assistant examiners of 1
the Department of Financial Institutions, any board governing any of the 2
Kentucky Retirement Systems, the County Employees Retirement System, the 3
Kentucky Public Pensions Authority, the Kentucky Higher Education Assistance 4
Authority, the Kentucky Authority for Educational Television, or the Council on 5
Postsecondary Education, to establish, set, or approve the salaries of its 6
administrative head and other employees to the contrary notwithstanding, the 7
establishment or setting of salaries for administrative heads or other employees 8
shall be subject to the approval of the secretary of the Personnel Cabinet. The 9
schedules and rates shall be based upon studies of the duties and responsibilities of 10
the offices and positions and upon a comparison with rates being paid for similar or 11
comparable services elsewhere, and in the preparation of such schedules, the 12
Personnel Cabinet shall ascertain and record the duties, responsibilities, and 13
authority pertaining to the various offices and positions in the state service, and 14
classify such positions in the manner provided in KRS 18A.030, 18A.035, 18A.110, 15
18A.130, 18A.135, and 18A.150 to 18A.160. No such schedule shall become 16
effective until it has been approved by the Governor by executive order. 17
(2) The Governor shall set the compensation payable out of the State Treasury to each 18
officer or position in the state service, which officer or position heads a statutory 19
administrative department, independent agency, or other unit of state government, 20
except for those excluded under subsection (1) of this section. Such compensation 21
shall be based upon studies of the duties and responsibilities and classification of 22
the positions by the Governor and upon a comparison with compensation being paid 23
for similar or comparable services elsewhere, provided, however, such 24
compensation shall not exceed the total taxable compensation of the Governor 25
derived from state sources, the provisions of KRS 64.660 to the contrary 26
notwithstanding. For the purposes of this section, the total taxable compensation of 27 UNOFFICIAL COPY 24 RS BR 1800
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the Governor from state sources shall include the amount provided for 1
compensation to the Governor under KRS 64.480 and any benefits or discretionary 2
spending accounts that are imputed as taxable income for federal tax purposes. 3
(3) The compensation payable out of the State Treasury to officers and employees 4
subordinate to any office or position covered by subsection (2) of this section shall 5
not exceed the maximum rate established pursuant to subsection (2) of this section 6
for such office or position, except with respect to physicians as provided in KRS 7
64.655 and employees of the Public Service Commission of Kentucky whose 8
compensation shall be fixed, within constitutional limits, by the Personnel Cabinet 9
with the approval of the Governor as provided in subsection (1) of this section. 10
(4) Nothing in this section shall preclude the allowance of maintenance to officers and 11
employees of the state. 12