UNOFFICIAL COPY 24 RS BR 342 Page 1 of 110 XXXX 1/22/2024 9:18 AM Jacketed AN ACT relating to the privacy of Social Security numbers. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 Section 1. KRS 61.645 is amended to read as follows: 3 (1) The Kentucky Employees Retirement System and State Police Retirement System 4 shall be administered by the board of trustees of the Kentucky Retirement Systems 5 composed of nine (9) members, who shall be selected as follows: 6 (a) One (1) trustee, who shall be a member or retired from the State Police 7 Retirement System, elected by the members and retired members of the State 8 Police Retirement System; 9 (b) Two (2) trustees, who shall be members or retired from the Kentucky 10 Employees Retirement System, elected by the members and retired members 11 of the Kentucky Employees Retirement System; 12 (c) Six (6) trustees, appointed by the Governor of the Commonwealth, subject to 13 Senate confirmation in accordance with KRS 11.160 for each appointment or 14 reappointment. Of the six (6) trustees appointed by the Governor, three (3) 15 trustees shall have investment experience and three (3) trustees shall have 16 retirement experience; 17 (d) For purposes of paragraph (c) of this subsection, a trustee with "investment 18 experience" means an individual who does not have a conflict of interest, as 19 provided by KRS 61.655, and who has at least ten (10) years of experience in 20 one (1) of the following areas of expertise: 21 1. A portfolio manager acting in a fiduciary capacity; 22 2. A professional securities analyst or investment consultant; 23 3. A current or retired employee or principal of a trust institution, 24 investment or finance organization, or endowment fund acting in an 25 investment-related capacity; 26 4. A chartered financial analyst in good standing as determined by the 27 UNOFFICIAL COPY 24 RS BR 342 Page 2 of 110 XXXX 1/22/2024 9:18 AM Jacketed CFA Institute; or 1 5. A university professor, teaching investment-related studies; and 2 (e) For purposes of paragraph (c) of this subsection, a trustee with "retirement 3 experience" means an individual who does not have a conflict of interest, as 4 provided by KRS 61.655, and who has at least ten (10) years of experience in 5 one (1) of the following areas of expertise: 6 1. Experience in retirement or pension plan management; 7 2. A certified public accountant with relevant experience in retirement or 8 pension plan accounting; 9 3. An actuary with relevant experience in retirement or pension plan 10 consulting; 11 4. An attorney licensed to practice law in the Commonwealth of Kentucky 12 with relevant experience in retirement or pension plans; or 13 5. A current or former university professor whose primary area of 14 emphasis is economics or finance. 15 (2) The board is hereby granted the powers and privileges of a corporation, including 16 but not limited to the following powers: 17 (a) To sue and be sued in its corporate name; 18 (b) To make bylaws not inconsistent with the law; 19 (c) To conduct the business and promote the purposes for which it was formed; 20 (d) Except as provided in KRS 61.650(6), to contract for investment counseling, 21 auditing, medical, and other professional or technical services as required to 22 carry out the obligations of the board subject to KRS Chapters 45, 45A, 56, 23 and 57. Actuarial consulting services shall be provided by a firm hired by the 24 Kentucky Public Pensions Authority; 25 (e) To purchase fiduciary liability insurance; 26 (f) Except as provided in KRS 61.650(6), to acquire, hold, sell, dispose of, 27 UNOFFICIAL COPY 24 RS BR 342 Page 3 of 110 XXXX 1/22/2024 9:18 AM Jacketed pledge, lease, or mortgage, the goods or property necessary to exercise the 1 board's powers and perform the board's duties subject to KRS Chapters 45, 2 45A, and 56; and 3 (g) The board shall reimburse any trustee, officer, or employee for any legal 4 expense resulting from a civil action arising out of the performance of his or 5 her official duties. The hourly rate of reimbursement for any contract for legal 6 services under this paragraph shall not exceed the maximum hourly rate 7 provided in the Legal Services Duties and Maximum Rate Schedule 8 promulgated by the Government Contract Review Committee established 9 pursuant to KRS 45A.705, unless a higher rate is specifically approved by the 10 secretary of the Finance and Administration Cabinet or his or her designee. 11 (3) (a) Notwithstanding the provisions of subsection (1) of this section, each trustee 12 shall serve a term of four (4) years or until his or her successor is duly 13 qualified except as otherwise provided in this section. An elected trustee or a 14 trustee appointed by the Governor under subsection (1)(c) of this section, shall 15 not serve more than three (3) consecutive four (4) year terms. An elected 16 trustee or a trustee appointed by the Governor under subsection (1)(c) of this 17 section, who has served three (3) consecutive terms may be elected or 18 appointed again after an absence of four (4) years from the board. 19 (b) The term limits established by paragraph (a) of this subsection shall apply to 20 trustees serving on or after July 1, 2012, and all terms of office served prior to 21 July 1, 2012, shall be used to determine if the trustee has exceeded the term 22 limits provided by paragraph (a) of this subsection. 23 (4) (a) The trustees selected by the membership of each of the various retirement 24 systems shall be elected by ballot. For each trustee to be elected, the board 25 may nominate, not less than six (6) months before a term of office of a trustee 26 is due to expire, three (3) constitutionally eligible individuals. 27 UNOFFICIAL COPY 24 RS BR 342 Page 4 of 110 XXXX 1/22/2024 9:18 AM Jacketed (b) Individuals may be nominated by the retirement system members which are to 1 elect the trustee by presenting to the executive director, not less than four (4) 2 months before a term of office of a trustee is due to expire, a petition, bearing 3 the name, date of birth[last four (4) digits of the Social Security number], and 4 signature of no less than one-tenth (1/10) of the number voting in the last 5 election by the retirement system members. 6 (c) Within four (4) months of the nominations made in accordance with 7 paragraphs (a) and (b) of this subsection, the executive director shall cause to 8 be prepared an official ballot. The ballot shall include the name, address, and 9 position title of each individual nominated by the board and by petition. 10 Provisions shall also be made for write-in votes. 11 (d) Except as provided by paragraph (j) of this subsection, the ballots shall be 12 distributed to the eligible voters by mail to their last known residence address 13 on file with the Kentucky Public Pensions Authority. Ballots shall not be 14 distributed by mail to member addresses reported as invalid to the Kentucky 15 Public Pensions Authority. 16 (e) The ballots shall be addressed to the Kentucky Retirement Systems in care of 17 a predetermined box number at a United States Post Office or submitted 18 electronically as provided by paragraph (j) of this subsection. Access to this 19 post office box shall be limited to the board's contracted firm. The individual 20 receiving a plurality of votes shall be declared elected. 21 (f) The eligible voter shall cast his or her ballot by selecting the candidate of his 22 or her choice. He or she shall sign and mail the ballot or submit the electronic 23 ballot at least thirty (30) days prior to the date the term to be filled is due to 24 expire. The latest mailing date, or date of submission in the case of electronic 25 ballots, shall be provided on the ballot. 26 (g) The board's contracted firm shall report in writing the outcome to the chair of 27 UNOFFICIAL COPY 24 RS BR 342 Page 5 of 110 XXXX 1/22/2024 9:18 AM Jacketed the board of trustees. Cost of an election shall be payable from the funds of 1 the system for which the trustee is elected. 2 (h) For purposes of this subsection, an eligible voter shall be a person who was a 3 member of the retirement system on December 31 of the year preceding the 4 election year. 5 (i) Each individual who submits a request to be nominated by the board under 6 paragraph (a) of this subsection and each individual who is nominated by the 7 membership under paragraph (b) of this subsection shall: 8 1. Complete an application developed by the retirement systems which 9 shall include but not be limited to a disclosure of any prior felonies and 10 any conflicts of interest that would hinder the individual's ability to 11 serve on the board; 12 2. Submit a resume detailing the individual's education and employment 13 history and a cover letter detailing the member's qualifications for 14 serving as trustee to the board; and 15 3. Authorize the systems to have a criminal background check performed. 16 The criminal background check shall be performed by the Department 17 of Kentucky State Police. 18 (j) In lieu of the ballots mailed to members and retired members as provided by 19 this subsection, the systems may by promulgation of administrative regulation 20 pursuant to KRS Chapter 13A conduct trustee elections using electronic 21 ballots, except that the systems shall mail a paper ballot upon request of any 22 eligible voter. 23 (5) (a) Any vacancy which may occur in an appointed position during a term of 24 office shall be filled in the same manner which provides for the selection of 25 the particular trustee, and any vacancy which may occur in an elected position 26 during a term of office shall be filled by appointment by a majority vote of the 27 UNOFFICIAL COPY 24 RS BR 342 Page 6 of 110 XXXX 1/22/2024 9:18 AM Jacketed remaining elected trustees with a person selected from the system in which the 1 vacancy occurs; however, any vacancy shall be filled only for the duration of 2 the unexpired term. In the event of a vacancy of an elected trustee during a 3 term of office, Kentucky Retirement Systems shall notify members of the 4 system in which the vacancy occurs of the vacancy and the opportunity to be 5 considered for the vacant position. Any vacancy during a term of office shall 6 be filled within ninety (90) days of the position becoming vacant. 7 (b) Any appointments or reappointments to an appointed position on the board 8 shall be made no later than thirty (30) days prior to an appointed member's 9 term of office ending. 10 (6) (a) Membership on the board of trustees shall not be incompatible with any other 11 office unless a constitutional incompatibility exists. No trustee shall serve in 12 more than one (1) position as trustee on the board; and if a trustee holds more 13 than one (1) position as trustee on the board, he or she shall resign a position. 14 (b) A trustee shall be removed from office upon conviction of a felony or for a 15 finding of a violation of any provision of KRS 11A.020 or 11A.040 by a court 16 of competent jurisdiction. 17 (c) A current or former employee of Kentucky Retirement Systems, County 18 Employees Retirement System, or the Kentucky Public Pensions Authority 19 shall not be eligible to serve as a member of the board. 20 (7) Trustees who do not otherwise receive a salary from the State Treasury shall 21 receive a per diem of eighty dollars ($80) for each day they are in session or on 22 official duty, and they shall be reimbursed for their actual and necessary expenses 23 in accordance with state administrative regulations and standards. 24 (8) (a) The board shall meet at least once in each quarter of the year and may meet in 25 special session upon the call of the chair or the chief executive officer. 26 (b) The board shall elect a chair and a vice chair. The chair shall not serve more 27 UNOFFICIAL COPY 24 RS BR 342 Page 7 of 110 XXXX 1/22/2024 9:18 AM Jacketed than four (4) consecutive years as chair or vice-chair of the board. The vice-1 chair shall not serve more than four (4) consecutive years as chair or vice-2 chair of the board. A trustee who has served four (4) consecutive years as 3 chair or vice-chair of the board may be elected chair or vice-chair of the board 4 after an absence of two (2) years from the positions. 5 (c) A majority of the trustees shall constitute a quorum and all actions taken by 6 the board shall be by affirmative vote of a majority of the trustees present. 7 (9) (a) The board of trustees shall appoint or contract for the services of a chief 8 executive officer and general counsel and fix the compensation and other 9 terms of employment for these positions without limitation of the provisions 10 of KRS Chapters 18A and 45A and KRS 64.640. The chief executive officer 11 shall serve as the legislative and executive adviser to the board. The general 12 counsel shall serve as legal adviser to the board. The chief executive officer 13 and general counsel shall work with the executive director of the Kentucky 14 Public Pensions Authority to carry out the provisions of KRS 16.505 to 15 16.652 and 61.510 to 61.705. The executive director of the Kentucky Public 16 Pensions Authority shall be the chief administrative officer of the board. 17 (b) Prior to April 1, 2021, the board of trustees shall authorize the executive 18 director to appoint the employees deemed necessary to transact the business 19 of the system. Effective April 1, 2021, the responsibility of appointing 20 employees and managing personnel needs shall be transferred to the Kentucky 21 Public Pensions Authority established by KRS 61.505. 22 (c) The board shall require the chief executive officer and may require the general 23 counsel to execute bonds for the faithful performance of his or her duties 24 notwithstanding the limitations of KRS Chapter 62. 25 (d) The board shall have a system of accounting established by the Kentucky 26 Public Pensions Authority. 27 UNOFFICIAL COPY 24 RS BR 342 Page 8 of 110 XXXX 1/22/2024 9:18 AM Jacketed (e) The board shall do all things, take all actions, and promulgate all 1 administrative regulations, not inconsistent with the provisions of KRS 16.505 2 to 16.652 and 61.510 to 61.705, necessary or proper in order to carry out the 3 provisions of KRS 16.505 to 16.652 and 61.510 to 61.705. Notwithstanding 4 any other evidence of legislative intent, it is hereby declared to be the 5 controlling legislative intent that the provisions of KRS 16.505 to 16.652 and 6 61.510 to 61.705 conform with federal statute or regulation and meet the 7 qualification requirements under 26 U.S.C. sec. 401(a), applicable federal 8 regulations, and other published guidance. Provisions of KRS 16.505 to 9 16.652 and 61.510 to 61.705 which conflict with federal statute or regulation 10 or qualification under 26 U.S.C. sec. 401(a), applicable federal regulations, 11 and other published guidance shall not be available. The board shall have the 12 authority to promulgate administrative regulations to conform with federal 13 statute and regulation and to meet the qualification requirements under 26 14 U.S.C. sec. 401(a), including an administrative regulation to comply with 26 15 U.S.C. sec. 401(a)(9). 16 (f) Notwithstanding any other provision of statute to the contrary, including but 17 not limited to any provision of KRS Chapter 12, the Governor shall have no 18 authority to change any provision of KRS 16.505 to 16.652 and 61.510 to 19 61.705 by executive order or action, including but not limited to reorganizing, 20 replacing, amending, or abolishing the membership of the Kentucky 21 Retirement Systems board of trustees. 22 (10) Notwithstanding any statute to the contrary, employees shall not be considered 23 legislative agents under KRS 6.611. 24 (11) The Attorney General, or an assistant designated by him or her, may attend each 25 meeting of the board and may receive the agenda, board minutes, and other 26 information distributed to trustees of the board upon request. The Attorney General 27 UNOFFICIAL COPY 24 RS BR 342 Page 9 of 110 XXXX 1/22/2024 9:18 AM Jacketed may act as legal adviser and attorney for the board, and the board may contract for 1 legal services, notwithstanding the limitations of KRS Chapter 12 or 13B. 2 (12) (a) The Kentucky Public Pensions Authority shall publish an annual financial 3 report showing all receipts, disbursements, assets, and liabilities for the 4 systems. The annual report shall include a copy of an audit conducted in 5 accordance with generally accepted auditing standards. Except as provided by 6 paragraph (b) of this subsection, the board may select the independent 7 certified public accountant hired by the Kentucky Public Pensions Authority 8 or the Auditor of Public Accounts to perform the audit. If the audit is 9 performed by an independent certified public accountant, the Auditor of 10 Public Accounts shall not be required to perform an audit pursuant to KRS 11 43.050(2)(a), but may perform an audit at his or her discretion. All 12 proceedings and records of the board shall be open for inspection by the 13 public. The Kentucky Public Pensions Authority shall make copies of the 14 audit required by this subsection available for examination by any member, 15 retiree, or beneficiary in the offices of the Kentucky Public Pensions 16 Authority and in other places as necessary to make the audit available to all 17 members, retirees, and beneficiaries. A copy of the annual audit shall be sent 18 to the Legislative Research Commission no later than ten (10) days after 19 receipt by the board. 20 (b) At least once every five (5) years, the Auditor of Public Accounts shall 21 perform the audit described by this subsection, and the system shall reimburse 22 the Auditor of Public Accounts for all costs of the audit. The Auditor of 23 Public Accounts shall determine which fiscal year during the five (5) year 24 period the audit prescribed by this paragraph will be completed. 25 (13) All expenses incurred by or on behalf of the system and the board in the 26 administration of the system during a fiscal year shall be paid from the retirement 27 UNOFFICIAL COPY 24 RS BR 342 Page 10 of 110 XXXX 1/22/2024 9:18 AM Jacketed allowance account, including any administrative expenses for the Kentucky Public 1 Pensions Authority that are assigned to the Kentucky Retirement Systems by KRS 2 61.505. The board shall submit any administrative expenses that are specific to the 3 Kentucky Retirement Systems that are not otherwise covered by KRS 4 61.505(11)(a). 5 (14) Any person adversely affected by a decision of the board, except as provided under 6 subsection (16) of this section or KRS 61.665, involving KRS 16.505 to 16.652 and 7 61.510 to 61.705, may appeal the decision of the board to the Franklin Circuit Court 8 within sixty (60) days of the board action. 9 (15) (a) A trustee shall discharge his or her duties as a trustee, including his or her 10 duties as a member of a committee: 11 1. In good faith; 12 2. On an informed basis; and 13 3. In a manner he or she honestly believes to be in the best interest of the 14 Kentucky Retirement Systems. 15 (b) A trustee discharges his or her duties on an informed basis if, when he or she 16 makes an inquiry into the business and affairs of the Kentucky Retirement 17 Systems or into a particular action to be taken or decision to be made, he or 18 she exercises the care an ordinary prudent person in a like position would 19 exercise under similar circumstances. 20 (c) In discharging his or her duties, a trustee may rely on information, opinions, 21 reports, or statements, including financial statements and other financial data, 22 if prepared or presented by: 23 1. One (1) or more officers or employees of the Kentucky Retirement 24 Systems whom the trustee honestly believes to be reliable and 25 competent in the matters presented; 26 2. Legal counsel, public accountants, actuaries, or other persons as to 27 UNOFFICIAL COPY 24 RS BR 342 Page 11 of 110 XXXX 1/22/2024 9:18 AM Jacketed matters the trustee honestly believes are within the person's professional 1 or expert competence; or 2 3. A committee of the board of trustees of which he or she is not a member 3 if the trustee honestly believes the committee merits confidence. 4 (d) A trustee shall not be considered as acting in good faith if he or she has 5 knowledge concerning the matter in question that makes reliance otherwise 6 permitted by paragraph (c) of this subsection unwarranted. 7 (e) Any action taken as a trustee, or any failure to take any action as a trustee, 8 shall not be the basis for monetary damages or injunctive relief unless: 9 1. The trustee has breached or failed to perform the duties of the trustee's 10 office in compliance with this section; and 11 2. In the case of an action for monetary damages, the breach or failure to 12 perform constitutes willful misconduct or wanton or reckless disregard 13 for human rights, safety, or property. 14 (f) A person bringing an action for monetary damages under this section shall 15 have the burden of proving by clear and convincing evidence the provisions of 16 paragraph (e)1. and 2. of this subsection, and the burden of proving that the 17 breach or failure to perform was the legal cause of damages suffered by the 18 Kentucky Retirement Systems. 19 (g) Nothing in this section shall eliminate or limit the liability of any trustee for 20 any act or omission occurring prior to July 15, 1988. 21 (h) In discharging his or her administrative duties under this section, a trustee 22 shall strive to administer the retirement system in an efficient and cost-23 effective manner for the taxpayers of the Commonwealth of Kentucky and 24 shall take all actions available under the law to contain costs for the trusts, 25 including costs for participating employers, members, and retirees. 26 (16) When an order by the system substantially impairs the benefits or rights of a 27 UNOFFICIAL COPY 24 RS BR 342 Page 12 of 110 XXXX 1/22/2024 9:18 AM Jacketed member, retired member, or recipient, except action which relates to entitlement to 1 disability benefits, or when an employer disagrees with an order of the system as 2 provided by KRS 61.598, the affected member, retired member, recipient, or 3 employer may request a hearing to be held in accordance with KRS Chapter 13B. 4 The board may establish an appeals committee whose members shall be appointed 5 by the chair and who shall have authority to act upon the recommendations and 6 reports of the hearing officer on behalf of the board. The member, retired member, 7 recipient, or employer aggrieved by a final order of the board following the hearing 8 may appeal the decision to the Franklin Circuit Court, in accordance with KRS 9 Chapter 13B. The board may establish a joint administrative appeals committee 10 with the County Employees Retirement System and may also establish a joint 11 disability appeals committee with the County Employees Retirement System. 12 (17) The board shall give the Kentucky Education Support Personnel Association 13 twenty-four (24) hours notice of the board meetings, to the extent possible. 14 (18) The board shall establish a formal trustee education program for all trustees of the 15 board. The program shall include but not be limited to the following: 16 (a) A required orientation program for all new trustees elected or appointed to the 17 board. The orientation program shall include training on: 18 1. Benefits and benefits administration; 19 2. Investment concepts, policies, and current composition and 20 administration of retirement systems investments; 21 3. Laws, bylaws, and administrative regulations pertaining to the 22 retirement systems and to fiduciaries; and 23 4. Actuarial and financial concepts pertaining to the retirement systems. 24 If a trustee fails to complete the orientation program within one (1) year from 25 the beginning of his or her first term on the board, the retirement systems shall 26 withhold payment of the per diem and travel expenses due to the board 27 UNOFFICIAL COPY 24 RS BR 342 Page 13 of 110 XXXX 1/22/2024 9:18 AM Jacketed member under this section and KRS 16.640 until the trustee has completed the 1 orientation program; 2 (b) Annual required training for board members on the administration, benefits, 3 financing, and investing of the retirement systems. If a trustee fails to 4 complete the annual required training during the calendar or fiscal year, the 5 retirement systems shall withhold payment of the per diem and travel 6 expenses due to the board member under this section and KRS 16.640 until 7 the board member has met the annual training requirements; and 8 (c) The retirement systems shall incorporate by reference in an administrative 9 regulation, pursuant to KRS 13A.2251, the trustee education program. 10 (19) In order to improve public transparency regarding the administration of the systems, 11 the board of trustees shall adopt a best practices model by posting the following 12 information to the Kentucky Public Pensions Authority's website and shall make 13 available to the public: 14 (a) Meeting notices and agendas for all meetings of the board. Notices and 15 agendas shall be posted to the Kentucky Public Pensions Authority's website 16 at least seventy-two (72) hours in advance of the board or committee 17 meetings, except in the case of special or emergency meetings as provided by 18 KRS 61.823; 19 (b) The Annual Comprehensive Financial Report with the information as follows: 20 1. A general overview and update on the retirement systems by the 21 executive director; 22 2. A listing of the board of trustees; 23 3. A listing of key staff; 24 4. An organizational chart; 25 5. Financial information, including a statement of plan net assets, a 26 statement of changes in plan net assets, an actuarial value of assets, a 27 UNOFFICIAL COPY 24 RS BR 342 Page 14 of 110 XXXX 1/22/2024 9:18 AM Jacketed schedule of investments, a statement of funded status and funding 1 progress, and other supporting data; 2 6. Investment information, including a general overview, a list of the 3 retirement system's professional consultants, a total net of fees return on 4 retirement systems investments over a historical period, an investment 5 summary, contracted investment management expenses, transaction 6 commissions, and a schedule of investments; 7 7. The annual actuarial valuation report on the pension benefit and the 8 medical insurance benefit; and 9 8. A general statistical section, including information on contributions, 10 benefit payouts, and retirement systems' demographic data; 11 (c) All external audits; 12 (d) All board minutes or other materials that require adoption or ratification by 13 the board of trustees. The items listed in this paragraph shall be posted within 14 seventy-two (72) hours of adoption or ratification of the board; 15 (e) All bylaws, policies, or procedures adopted or ratified by the board of 16 trustees; 17 (f) The retirement systems' summary plan description; 18 (g) A document containing an unofficial copy of the statutes governing the 19 systems administered by Kentucky Retirement Systems; 20 (h) A listing of the members of the board of trustees and membership on each 21 committee established by the board, including any investment committees; 22 (i) All investment holdings in aggregate, fees, and commissions for each fund 23 administered by the board, which shall be updated on a quarterly basis for 24 fiscal years beginning on or after July 1, 2017. The systems shall request from 25 all managers, partnerships, and any other available sources all information 26 regarding fees and commissions and shall, based on the requested information 27 UNOFFICIAL COPY 24 RS BR 342 Page 15 of 110 XXXX 1/22/2024 9:18 AM Jacketed received: 1 1. Disclose the dollar value of fees and commissions paid to each 2 individual manager or partnership; 3 2. Disclose the dollar value of any profit sharing, carried interest, or any 4 other partnership incentive arrangements, partnership agreements, or 5 any other partnership expenses received by or paid to each manager or 6 partnership; and 7 3. As applicable, report each fee or commission by manager or partnership 8 consistent with standards established by the Institutional Limited 9 Partners Association (ILPA). 10 In addition to the requirements of this paragraph, the systems shall also 11 disclose the name and address of all individual underlying managers or 12 partners in any fund of funds in which system assets are invested; 13 (j) An update of net of fees investment returns, asset allocations, and the 14 performance of the funds against benchmarks adopted by the board for each 15 fund, for each asset class administered by the board, and for each manager. 16 The update shall be posted on a quarterly basis for fiscal years beginning on 17 or after July 1, 2017; 18 (k) A searchable database of the systems' expenditures and a listing of each 19 individual employed by the systems along with the employee's salary or 20 wages. In lieu of posting the information required by this paragraph to the 21 Kentucky Public Pensions Authority's website, the systems may provide the 22 information through a website established by the executive branch to inform 23 the public about executive branch agency expenditures and public employee 24 salaries and wages; 25 (l) All contracts or offering documents for services, goods, or property purchased 26 or utilized by the systems; 27 UNOFFICIAL COPY 24 RS BR 342 Page 16 of 110 XXXX 1/22/2024 9:18 AM Jacketed (m) Information regarding the systems' financial and actuarial condition that is 1 easily understood by the members, retired members, and the public; and 2 (n) All proxy vote reports as provided by KRS 61.650(7). 3 (20) Notwithstanding the requirements of subsection (19) of this section, the retirement 4 systems shall not be required to furnish information that is protected under KRS 5 61.661, exempt under KRS 61.878, or that, if disclosed, would compromise the 6 retirement systems' ability to competitively invest in real estate or other asset 7 classes, except that no provision of this section or KRS 61.878 shall exclude 8 disclosure and review of all contracts, including investment contracts, by the board, 9 the Auditor of Public Accounts, and the Government Contract Review Committee 10 established pursuant to KRS 45A.705 or the disclosure of investment fees and 11 commissions as provided by this section. If any public record contains material 12 which is not excepted under this section, the systems shall separate the excepted 13 material by removal, segregation, or redaction, and make the nonexcepted material 14 available for examination. 15 (21) Notwithstanding any other provision of KRS 16.505 to 16.652 and 61.510 to 61.705 16 to the contrary, no funds of the systems administered by Kentucky Retirement 17 Systems, including fees and commissions paid to an investment manager, private 18 fund, or company issuing securities, who manages systems assets, shall be used to 19 pay fees and commissions to placement agents. For purposes of this subsection, 20 "placement agent" means a third-party individual, who is not an employee, or firm, 21 wholly or partially owned by the entity being hired, who solicits investments on 22 behalf of an investment manager, private fund, or company issuing securities. 23 Section 2. KRS 61.661 is amended to read as follows: 24 (1) (a) Each current, former, or retired member's account shall be administered in a 25 confidential manner, and specific data regarding a current, former, or retired 26 member shall not be released for publication, except that: 27 UNOFFICIAL COPY 24 RS BR 342 Page 17 of 110 XXXX 1/22/2024 9:18 AM Jacketed 1. The member or recipient may authorize the release of his or her account 1 information; 2 2. The Kentucky Public Pensions Authority may release account 3 information to the employer or to other state and federal agencies as it 4 deems necessary or in response to a lawful subpoena or order issued by 5 a court of law, except that the Kentucky Public Pensions Authority shall 6 be required to release account information to the employer as required 7 by KRS 61.565(1)(d)1.b.; or 8 3. a. Upon request by any person, the systems shall release the 9 following information from the accounts of any member or retired 10 member of the Kentucky Employees Retirement System, the 11 County Employees Retirement System, or the State Police 12 Retirement System, if the member or retired member is a current 13 or former officeholder in the Kentucky General Assembly: 14 i. The first and last name of the member or retired member; 15 ii. The system or systems in which the member has an account 16 or from which the retired member is receiving a monthly 17 retirement allowance; 18 iii. The status of the member or retired member, including but 19 not limited to whether he or she is a contributing member, a 20 member who is not currently contributing to the systems but 21 has not retired, a retired member, or a retired member who 22 has returned to work following retirement with an agency 23 participating in the systems; 24 iv. If the individual is a retired member, the monthly retirement 25 allowance that he or she was receiving at the end of the most 26 recently completed fiscal year; 27 UNOFFICIAL COPY 24 RS BR 342 Page 18 of 110 XXXX 1/22/2024 9:18 AM Jacketed v. If the individual is a member who has not yet retired, the 1 estimated monthly retirement allowance that he or she is 2 eligible to receive at his or her normal retirement date based 3 upon his or her service credit, final compensation, and 4 accumulated account balance at the end of the most recently 5 completed fiscal year; and 6 vi. The current employer or last participating employer of the 7 member or retired member, if applicable. 8 b. No information shall be disclosed under this subparagraph from an 9 account that is paying benefits to a beneficiary due to the death of 10 a member or retired member. 11 (b) A current, former, or retired member's account shall be exempt from the 12 provisions of KRS 171.410 to 171.990. 13 (c) The release of information under paragraph (a)3. of this subsection shall not 14 constitute a violation of the Open Records Act, KRS 61.870 to 61.884. 15 (2) (a) When a subpoena is served upon any employee of the Kentucky Retirement 16 Systems, the County Employees Retirement System, or the Kentucky Public 17 Pensions Authority, requiring production of any specific data regarding a 18 current, former, or retired member, it is sufficient if the employee of the 19 Kentucky Public Pensions Authority charged with the responsibility of being 20 custodian of the original delivers within five (5) working days, by certified 21 mail or by personal delivery, legible and durable copies of records, certified 22 by the employee, or an affidavit stating the information required by the 23 subpoena to the person specified in the subpoena. The production of 24 documents or an affidavit shall be in lieu of any personal testimony of any 25 employee of the Kentucky Retirement Systems, the County Employees 26 Retirement System, or the Kentucky Public Pensions Authority, unless, after 27 UNOFFICIAL COPY 24 RS BR 342 Page 19 of 110 XXXX 1/22/2024 9:18 AM Jacketed the production of documents or affidavit, a separate subpoena is served upon 1 the systems or the Authority specifically directing the testimony of an 2 employee of the systems or of the Authority. When a subpoena is served on 3 any employee of the systems or of the Authority requiring the employee to 4 give deposition for any purpose, in the absence of a court order requiring the 5 deposition of a specific employee, the systems or the Authority may designate 6 an employee to be deposed upon the matter referred to in the subpoena. 7 (b) The certification required by this subsection shall be signed before a notary 8 public by the employee and shall include the full name of the member or 9 recipient[, the member's or recipient's Social Security number,] and a legend 10 substantially to the following effect: "The records are true and complete 11 reproductions of the original or microfiched records which are housed in the 12 retirement systems office. This certification is given in lieu of his or her 13 personal appearance." 14 (c) When an affidavit or copies of records are personally delivered, a receipt shall 15 be presented to the person receiving the records for his or her signature and 16 shall be immediately signed and returned to the person delivering the records. 17 When an affidavit or copies of records are sent via certified mail, the receipt 18 used by the postal authorities shall be sufficient to prove delivery and receipt 19 of the affidavit or copies of records. 20 (d) When the affidavit or copies of records are delivered to a party for use in 21 deposition, they shall, after termination of the deposition, be delivered 22 personally or by certified mail to the clerk of the court or other body before 23 which the action or proceeding is pending. It shall be the responsibility of the 24 party or attorney to transmit the receipt obtained to the employee of the 25 Kentucky Public Pensions Authority charged with responsibility of being 26 custodian of the original. Upon issuance of a final order terminating the case 27 UNOFFICIAL COPY 24 RS BR 342 Page 20 of 110 XXXX 1/22/2024 9:18 AM Jacketed and after the normal retention period for court records expires, the affidavit or 1 copies of records shall be permanently disposed of by the clerk in a manner 2 that protects the confidentiality of the information contained therein. 3 (e) Records of the Kentucky Public Pensions Authority that are susceptible to 4 photostatic reproduction may be proved as to foundation, identity, and 5 authenticity without any preliminary testimony, by use of legible and durable 6 copies, certified in accordance with the provisions of this subsection. 7 Section 3. KRS 67A.406 is amended to read as follows: 8 (1) Each current, former, or retired member's account shall be administered in a 9 confidential manner, and specific data regarding a current, former, or retired 10 member shall not be released for publication unless authorized by the member. 11 However, the board may release account information to the urban-county 12 government or to any other governmental agency as it deems necessary or in 13 response to a lawful subpoena or order issued by a court of law. 14 (2) A subpoena served upon the board that requires the production of any specific data 15 regarding a current, former, or retired member is sufficient if the secretary of the 16 board delivers within five (5) working days, by certified mail or by personal 17 delivery, legible and durable copies of records, certified by the secretary, or an 18 affidavit stating the information required by the subpoena. The production of 19 documents or an affidavit shall be in lieu of any personal testimony of the secretary 20 unless, after the production of documents or affidavit, a separate subpoena is served 21 upon the board specifically directing the testimony of the secretary. 22 (3) The certification shall be signed before a notary public by the secretary and shall 23 include the name of the member[, the member's Social Security number,] and a 24 legend substantially to the following effect: "The records are true and complete 25 reproductions of the original records which are housed in the board's office. This 26 certification is given by the undersigned in lieu of his or her personal appearance." 27 UNOFFICIAL COPY 24 RS BR 342 Page 21 of 110 XXXX 1/22/2024 9:18 AM Jacketed (4) When an affidavit or copies of records are personally delivered, a receipt shall be 1 presented to the person receiving the records for his or her signature and shall be 2 immediately signed and returned to the person delivering the records. When an 3 affidavit or copies of records are sent via certified mail, the receipt used by the 4 postal authorities shall be sufficient to prove delivery and receipt of the affidavit or 5 copies of records. 6 (5) When the affidavit or copies of records are delivered to a party for use in a 7 deposition, they shall, after termination of the deposition, be delivered personally or 8 by certified mail to the clerk of the court or other body before which the action or 9 proceeding is pending. It shall be the responsibility of the party or attorney to 10 transmit the receipt obtained to the secretary of the board. Upon issuance of a final 11 order terminating the case and after the normal retention period for court records 12 expires, the affidavit or copies of records shall be permanently disposed of by the 13 clerk in a manner that protects the confidentiality of the information contained 14 therein. 15 (6) Records of the board that are susceptible to photostatic reproduction may be proved 16 as to foundation, identity, and authenticity without any preliminary testimony by 17 use of legible and durable copies, certified in accordance with this section. 18 Section 4. KRS 78.782 is amended to read as follows: 19 (1) The County Employees Retirement System shall be administered by the board of 20 trustees composed of nine (9) members, who shall be selected as follows: 21 (a) Three (3) trustees, who shall be members or retired from the County 22 Employees Retirement System, elected by the members and retired members 23 of the County Employees Retirement System, of which: 24 1. Two (2) shall have a majority of his or her service credit earned in the 25 County Employees Retirement System in a nonhazardous position; and 26 2. One (1) shall have a majority of his or her service credit earned in the 27 UNOFFICIAL COPY 24 RS BR 342 Page 22 of 110 XXXX 1/22/2024 9:18 AM Jacketed County Employees Retirement System in a hazardous position; 1 (b) Six (6) trustees appointed by the Governor, subject to Senate confirmation in 2 accordance with KRS 11.160 for each appointment or reappointment. Of the 3 six (6) trustees appointed by the Governor: 4 1. One (1) trustee with retirement experience shall be appointed from a list 5 of three (3) applicants submitted by the Kentucky League of Cities; 6 2. One (1) trustee with investment experience shall be appointed from a list 7 of three (3) applicants submitted by the Kentucky League of Cities; 8 3. One (1) trustee with retirement experience shall be appointed from a list 9 of three (3) applicants submitted by the Kentucky Association of 10 Counties; 11 4. One (1) trustee with investment experience shall be appointed from a list 12 of three (3) applicants submitted by the Kentucky Association of 13 Counties; 14 5. One (1) trustee with retirement experience shall be appointed from a list 15 of three (3) applicants submitted by the Kentucky School Boards 16 Association; and 17 6. One (1) trustee with investment experience shall be appointed from a list 18 of three (3) applicants submitted by the Kentucky School Boards 19 Association. 20 Notwithstanding the provisions of KRS 12.070(3), the Governor shall appoint 21 each individual trustee described by subparagraphs 1. to 6. of this paragraph 22 solely from each corresponding individual list required to be submitted by the 23 Kentucky League of Cities, the Kentucky Association of Counties, or the 24 Kentucky School Boards Association as provided by subparagraphs 1. to 6. of 25 this paragraph, and the Governor shall not be able to reject the list of 26 applicants submitted, request that another list be provided, or use a list 27 UNOFFICIAL COPY 24 RS BR 342 Page 23 of 110 XXXX 1/22/2024 9:18 AM Jacketed different from the one (1) individual list required to be submitted for each 1 specific appointment or reappointment; 2 (c) For purposes of paragraph (b) of this subsection, a trustee with "investment 3 experience" means an individual who does not have a conflict of interest, as 4 provided by KRS 61.655, and who has at least ten (10) years of experience in 5 one (1) of the following areas of expertise: 6 1. A portfolio manager acting in a fiduciary capacity; 7 2. A professional securities analyst or investment consultant; 8 3. A current or retired employee or principal of a trust institution, 9 investment or finance organization, or endowment fund acting in an 10 investment-related capacity; 11 4. A chartered financial analyst in good standing as determined by the 12 CFA Institute; or 13 5. A university professor, teaching investment-related studies; and 14 (d) For purposes of paragraph (b) of this subsection, a trustee with "retirement 15 experience" means an individual who does not have a conflict of interest, as 16 provided by KRS 61.655, and who has at least ten (10) years of experience in 17 one (1) of the following areas of expertise: 18 1. Experience in retirement or pension plan management; 19 2. A certified public accountant with relevant experience in retirement or 20 pension plan accounting; 21 3. An actuary with relevant experience in retirement or pension plan 22 consulting; 23 4. An attorney licensed to practice law in the Commonwealth of Kentucky 24 with relevant experience in retirement or pension plans; or 25 5. A current or former university professor whose primary area of 26 emphasis is economics or finance. 27 UNOFFICIAL COPY 24 RS BR 342 Page 24 of 110 XXXX 1/22/2024 9:18 AM Jacketed (2) The board is hereby granted the powers and privileges of a corporation, including 1 but not limited to the following powers: 2 (a) To sue and be sued in its corporate name; 3 (b) To make bylaws not inconsistent with the law; 4 (c) To conduct the business and promote the purposes for which it was formed; 5 (d) Except as provided in KRS 78.790(6), to contract for investment counseling, 6 auditing, medical, and other professional or technical services as required to 7 carry out the obligations of the board subject to the provisions of KRS 8 Chapters 45, 45A, 56, and 57. Actuarial consulting services shall be provided 9 by a firm hired by the Kentucky Public Pensions Authority; 10 (e) To purchase fiduciary liability insurance; 11 (f) Except as provided in KRS 78.790(6), to acquire, hold, sell, dispose of, 12 pledge, lease, or mortgage, the goods or property necessary to exercise the 13 board's powers and perform the board's duties subject to KRS Chapters 45, 14 45A, and 56; and 15 (g) The board shall reimburse any trustee, officer, or employee for any legal 16 expense resulting from a civil action arising out of the performance of his or 17 her official duties. The hourly rate of reimbursement for any contract for legal 18 services under this paragraph shall not exceed the maximum hourly rate 19 provided in the Legal Services Duties and Maximum Rate Schedule 20 promulgated by the Government Contract Review Committee established 21 pursuant to KRS 45A.705, unless a higher rate is specifically approved by the 22 secretary of the Finance and Administration Cabinet or his or her designee. 23 (3) Notwithstanding the provisions of subsection (1) of this section, each trustee shall 24 serve a term of four (4) years or until his or her successor is duly qualified except as 25 otherwise provided in this section. An elected or appointed trustee shall not serve 26 more than three (3) consecutive four (4) year terms. An elected or appointed trustee 27 UNOFFICIAL COPY 24 RS BR 342 Page 25 of 110 XXXX 1/22/2024 9:18 AM Jacketed who has served three (3) consecutive terms may be elected or appointed again after 1 an absence of four (4) years from the board. 2 (4) (a) The trustees selected by the membership of the system shall be elected by 3 ballot. For each trustee to be elected, the board may nominate, not less than 4 six (6) months before a term of office of a trustee is due to expire, three (3) 5 constitutionally eligible individuals. 6 (b) Individuals may be nominated by the system members by presenting to the 7 executive director, not less than four (4) months before a term of office of a 8 trustee is due to expire, a petition, bearing the name, date of birth[last four (4) 9 digits of the Social Security number], and signature of no less than one-tenth 10 (1/10) of the number voting in the last election by the system members. 11 (c) Within four (4) months of the nominations made in accordance with 12 paragraphs (a) and (b) of this subsection, the executive director shall cause to 13 be prepared an official ballot. The ballot shall carry the name, address, and 14 position title of each individual nominated by the board and by petition. 15 Provision shall also be made for write-in votes. 16 (d) Except as provided by paragraph (j) of this subsection, the ballots shall be 17 distributed to the eligible voters by mail to their last known residence address 18 on file with the Kentucky Public Pensions Authority. Ballots shall not be 19 distributed by mail to member addresses reported as invalid to the Kentucky 20 Public Pensions Authority. 21 (e) The ballots shall be addressed to the County Employees Retirement System in 22 care of a predetermined box number at a United States Post Office or 23 submitted electronically as provided by paragraph (j) of this subsection. 24 Access to this post office box shall be limited to the board's contracted firm. 25 The individual receiving a plurality of votes shall be declared elected. 26 (f) The eligible voter shall cast his or her ballot by selecting the candidate of his 27 UNOFFICIAL COPY 24 RS BR 342 Page 26 of 110 XXXX 1/22/2024 9:18 AM Jacketed or her choice. He or she shall sign and mail the ballot or submit the electronic 1 ballot at least thirty (30) days prior to the date the term to be filled is due to 2 expire. The latest mailing date, or date of submission in the case of electronic 3 ballots, shall be provided on the ballot. 4 (g) The board's contracted firm shall report in writing the outcome to the chair of 5 the board of trustees. Costs of an election shall be payable from the funds of 6 the system. 7 (h) For purposes of this subsection, an eligible voter shall be a person who was a 8 member of the system on December 31 of the year preceding the election 9 year. 10 (i) Each individual who submits a request to be nominated by the board under 11 paragraph (a) of this subsection and each individual who is nominated by the 12 membership under paragraph (b) of this subsection shall: 13 1. Complete an application developed by the system which shall include 14 but not be limited to a disclosure of any prior felonies and any conflicts 15 of interest that would hinder the individual's ability to serve on the 16 board; 17 2. Submit a resume detailing the individual's education and employment 18 history and a cover letter detailing the member's qualifications for 19 serving as trustee to the board; and 20 3. Authorize the system to have a criminal background check performed. 21 The criminal background check shall be performed by the Department 22 of Kentucky State Police. 23 (j) In lieu of the ballots mailed to members and retired members as provided by 24 this subsection, the systems may by promulgation of administrative regulation 25 pursuant to KRS Chapter 13A conduct trustee elections using electronic 26 ballots, except that the systems shall mail a paper ballot upon request of any 27 UNOFFICIAL COPY 24 RS BR 342 Page 27 of 110 XXXX 1/22/2024 9:18 AM Jacketed eligible voter. 1 (5) (a) Any vacancy which may occur in an appointed position during a term of 2 office shall be filled in the same manner which provides for the selection of 3 the particular trustee, and any vacancy which may occur in an elected position 4 during a term of office shall be filled by appointment by a majority vote of the 5 remaining elected trustees; however, any vacancy shall be filled only for the 6 duration of the unexpired term. In the event of a vacancy of an elected trustee 7 during a term of office, the system shall notify members of the vacancy and 8 the opportunity to be considered for the vacant position. Any vacancy shall be 9 filled within ninety (90) days of the position becoming vacant. 10 (b) Any appointments or reappointments to an appointed position on the board 11 shall be made at least thirty (30) days prior to an appointed member's term of 12 office ending. The Governor's Office shall, with each appointment or 13 reappointment, request lists to be submitted and base selections on those lists 14 solely under the procedures and requirements provided by subsection (1)(b) of 15 this section. 16 (6) (a) Membership on the board of trustees shall not be incompatible with any other 17 office unless a constitutional incompatibility exists. No trustee shall serve in 18 more than one (1) position as trustee on the board and, if a trustee holds more 19 than one (1) position as trustee on the board, he or she shall resign a position. 20 (b) A trustee shall be removed from office upon conviction of a felony or for a 21 finding of a violation of any provision of KRS 11A.020 or 11A.040 by a court 22 of competent jurisdiction. 23 (c) A current or former employee of the County Employees Retirement System, 24 Kentucky Retirement Systems, or the Kentucky Public Pensions Authority 25 shall not be eligible to serve as a member of the board. 26 (7) Trustees who do not otherwise receive a salary from the State Treasury shall 27 UNOFFICIAL COPY 24 RS BR 342 Page 28 of 110 XXXX 1/22/2024 9:18 AM Jacketed receive a per diem of eighty dollars ($80) for each day they are in session or on 1 official duty, and they shall be reimbursed for their actual and necessary expenses 2 in accordance with state administrative regulations and standards. 3 (8) (a) The board shall meet at least once in each quarter of the year and may meet in 4 special session upon the call of the chair or the chief executive officer. 5 (b) The board shall elect a chair and a vice chair. The chair shall not serve more 6 than four (4) consecutive years as chair or vice chair of the board. The vice 7 chair shall not serve more than four (4) consecutive years as chair or vice 8 chair of the board. A trustee who has served four (4) consecutive years as 9 chair or vice chair of the board may be elected chair or vice chair of the board 10 after an absence of two (2) years from the positions. 11 (c) A majority of the trustees shall constitute a quorum, and all actions taken by 12 the board shall be by affirmative vote of a majority of the trustees present. 13 (9) (a) The board of trustees shall appoint or contract for the services of a chief 14 executive officer and general counsel and fix the compensation and other 15 terms of employment for these positions without limitation of the provisions 16 of KRS Chapters 18A and 45A and KRS 64.640. The chief executive officer 17 shall serve as the legislative and executive adviser to the board. The general 18 counsel shall serve as legal adviser to the board. The chief executive officer 19 and general counsel shall work with the executive director of the Kentucky 20 Public Pensions Authority to carry out the provisions of KRS 78.510 to 21 78.852. The executive director of the Kentucky Public Pensions Authority 22 shall be the chief administrative officer of the board. 23 (b) The board shall require the chief executive officer and may require the general 24 counsel to execute bonds for the faithful performance of his or her duties 25 notwithstanding the limitations of KRS Chapter 62. 26 (c) The board shall have a system of accounting established by the Kentucky 27 UNOFFICIAL COPY 24 RS BR 342 Page 29 of 110 XXXX 1/22/2024 9:18 AM Jacketed Public Pensions Authority. 1 (d) The board shall do all things, take all actions, and promulgate all 2 administrative regulations, not inconsistent with the provisions of KRS 78.510 3 to 78.852, necessary or proper in order to carry out the provisions of KRS 4 78.510 to 78.852. Notwithstanding any other evidence of legislative intent, it 5 is hereby declared to be the controlling legislative intent that the provisions of 6 KRS 78.510 to 78.852 conform with federal statute or regulation and meet the 7 qualification requirements under 26 U.S.C. sec. 401(a), applicable federal 8 regulations, and other published guidance. Provisions of KRS 78.510 to 9 78.852 which conflict with federal statute or regulation or qualification under 10 26 U.S.C. sec. 401(a), applicable federal regulations, and other published 11 guidance shall not be available. The board shall have the authority to 12 promulgate administrative regulations to conform with federal statute and 13 regulation and to meet the qualification requirements under 26 U.S.C. sec. 14 401(a), including an administrative regulation to comply with 26 U.S.C. sec. 15 401(a)(9). 16 (e) Notwithstanding any other provision of statute to the contrary, including but 17 not limited to any provision of KRS Chapter 12, the Governor shall have no 18 authority to change any provision of KRS 78.510 to 78.852 by executive order 19 or action, including but not limited to reorganizing, replacing, amending, or 20 abolishing the membership of the County Employees Retirement System 21 board of trustees. 22 (10) The chief executive officer and general counsel of the board shall serve during its 23 will and pleasure. Notwithstanding any statute to the contrary, the chief executive 24 officer shall not be considered a legislative agent under KRS 6.611. 25 (11) The Attorney General, or an assistant designated by him or her, may attend each 26 meeting of the board and may receive the agenda, board minutes, and other 27 UNOFFICIAL COPY 24 RS BR 342 Page 30 of 110 XXXX 1/22/2024 9:18 AM Jacketed information distributed to trustees of the board upon request. The Attorney General 1 may act as legal adviser and attorney for the board, and the board may contract for 2 legal services, notwithstanding the limitations of KRS Chapter 12 or 13B. 3 (12) (a) The Kentucky Public Pensions Authority shall publish an annual financial 4 report showing all receipts, disbursements, assets, and liabilities for the 5 systems. The annual report shall include a copy of an audit conducted in 6 accordance with generally accepted auditing standards. Except as provided by 7 paragraph (b) of this subsection, the board may select the independent 8 certified public accountant hired by the Kentucky Public Pensions Authority 9 or the Auditor of Public Accounts to perform the audit. If the audit is 10 performed by an independent certified public accountant, the Auditor of 11 Public Accounts shall not be required to perform an audit pursuant to KRS 12 43.050(2)(a), but may perform an audit at his or her discretion. All 13 proceedings and records of the board shall be open for inspection by the 14 public. The Kentucky Public Pensions Authority shall make copies of the 15 audit required by this subsection available for examination by any member, 16 retiree, or beneficiary in the offices of the County Employees Retirement 17 System and in other places as necessary to make the audit available to all 18 members, retirees, and beneficiaries. A copy of the annual audit shall be sent 19 electronically to the Legislative Research Commission no later than ten (10) 20 days after receipt by the board. 21 (b) At least once every five (5) years, the Auditor of Public Accounts shall 22 perform the audit described by this subsection, and the system shall reimburse 23 the Auditor of Public Accounts for all costs of the audit. The Auditor of 24 Public Accounts shall determine which fiscal year during the five (5) year 25 period the audit prescribed by this paragraph will be completed. 26 (13) All expenses incurred by or on behalf of the system and the board in the 27 UNOFFICIAL COPY 24 RS BR 342 Page 31 of 110 XXXX 1/22/2024 9:18 AM Jacketed administration of the system during a fiscal year shall be paid from the retirement 1 allowance account, including any administrative expenses for the Kentucky Public 2 Pensions Authority that are assigned to the County Employees Retirement System 3 by KRS 61.505. The board shall submit any administrative expenses that are 4 specific to the County Employees Retirement System that are not otherwise covered 5 by KRS 61.505(11)(a). 6 (14) Except as provided under subsection (16) of this section or KRS 61.665, any person 7 adversely affected by a decision of the board involving KRS 78.510 to 78.852 may 8 appeal the decision of the board to the Franklin Circuit Court within sixty (60) days 9 of the board action. 10 (15) (a) A trustee shall discharge his or her duties as a trustee, including his or her 11 duties as a member of a committee: 12 1. In good faith; 13 2. On an informed basis; and 14 3. In a manner he or she honestly believes to be in the best interest of the 15 County Employees Retirement System. 16 (b) A trustee discharges his or her duties on an informed basis if, when he or she 17 makes an inquiry into the business and affairs of the system or into a 18 particular action to be taken or decision to be made, he or she exercises the 19 care an ordinary prudent person in a like position would exercise under 20 similar circumstances. 21 (c) In discharging his or her duties, a trustee may rely on information, opinions, 22 reports, or statements, including financial statements and other financial data, 23 if prepared or presented by: 24 1. One (1) or more officers or employees of the system or Authority whom 25 the trustee honestly believes to be reliable and competent in the matters 26 presented; 27 UNOFFICIAL COPY 24 RS BR 342 Page 32 of 110 XXXX 1/22/2024 9:18 AM Jacketed 2. Legal counsel, public accountants, actuaries, or other persons as to 1 matters the trustee honestly believes are within the person's professional 2 or expert competence; or 3 3. A committee of the board of trustees of which he or she is not a member 4 if the trustee honestly believes the committee merits confidence. 5 (d) A trustee shall not be considered as acting in good faith if he or she has 6 knowledge concerning the matter in question that makes reliance otherwise 7 permitted by paragraph (c) of this subsection unwarranted. 8 (e) Any action taken as a trustee, or any failure to take any action as a trustee, 9 shall not be the basis for monetary damages or injunctive relief unless: 10 1. The trustee has breached or failed to perform the duties of the trustee's 11 office in compliance with this section; and 12 2. In the case of an action for monetary damages, the breach or failure to 13 perform constitutes willful misconduct or wanton or reckless disregard 14 for human rights, safety, or property. 15 (f) A person bringing an action for monetary damages under this section shall 16 have the burden of proving by clear and convincing evidence the provisions of 17 paragraph (e)1. and 2. of this subsection, and the burden of proving that the 18 breach or failure to perform was the legal cause of damages suffered by the 19 system. 20 (g) In discharging his or her administrative duties under this section, a trustee 21 shall strive to administer the system in an efficient and cost-effective manner 22 for the taxpayers of the Commonwealth of Kentucky and shall take all actions 23 available under the law to contain costs for the trusts, including costs for 24 participating employers, members, and retirees. 25 (16) When an order by the system substantially impairs the benefits or rights of a 26 member, retired member, or recipient, except action which relates to entitlement to 27 UNOFFICIAL COPY 24 RS BR 342 Page 33 of 110 XXXX 1/22/2024 9:18 AM Jacketed disability benefits, or when an employer disagrees with an order of the system as 1 provided by KRS 61.598, the affected member, retired member, recipient, or 2 employer may request a hearing to be held in accordance with KRS Chapter 13B. 3 The board may establish an appeals committee whose members shall be appointed 4 by the chair and who shall have authority to act upon the recommendations and 5 reports of the hearing officer on behalf of the board. The member, retired member, 6 recipient, or employer aggrieved by a final order of the board following the hearing 7 may appeal the decision to the Franklin Circuit Court, in accordance with KRS 8 Chapter 13B. The board may establish a joint administrative appeals committee 9 with the Kentucky Retirement Systems and may also establish a joint disability 10 appeals committee with the Kentucky Retirement Systems. 11 (17) The board shall establish a formal trustee education program for all trustees of the 12 board. The program shall include but not be limited to the following: 13 (a) A required orientation program for all new trustees elected or appointed to the 14 board. The orientation program shall include training on: 15 1. Benefits and benefits administration; 16 2. Investment concepts, policies, and current composition and 17 administration of system investments; 18 3. Laws, bylaws, and administrative regulations pertaining to the system 19 and to fiduciaries; and 20 4. Actuarial and financial concepts pertaining to the system. 21 If a trustee fails to complete the orientation program within one (1) year from 22 the beginning of his or her first term on the board, the system shall withhold 23 payment of the per diem and travel expenses due to the board member under 24 this section until the trustee has completed the orientation program; 25 (b) Annual required training for board members on the administration, benefits, 26 financing, and investing of the system. If a trustee fails to complete the annual 27 UNOFFICIAL COPY 24 RS BR 342 Page 34 of 110 XXXX 1/22/2024 9:18 AM Jacketed required training during the calendar or fiscal year, the retirement system shall 1 withhold payment of the per diem and travel expenses due to the board 2 member under this section until the board member has met the annual training 3 requirements; and 4 (c) The system shall incorporate by reference in an administrative regulation, 5 pursuant to KRS 13A.2251, the trustee education program. 6 (18) In order to improve public transparency regarding the administration of the system, 7 the board of trustees shall adopt a best practices model by posting the following 8 information to the Kentucky Public Pensions Authority's website and shall make 9 available to the public: 10 (a) Meeting notices and agendas for all meetings of the board. Notices and 11 agendas shall be posted to the Kentucky Public Pensions Authority's website 12 at least seventy-two (72) hours in advance of the board or committee 13 meetings, except in the case of special or emergency meetings as provided by 14 KRS 61.823; 15 (b) The Annual Comprehensive Financial Report with the information as follows: 16 1. A general overview and update on the system by the executive director; 17 2. A listing of the board of trustees; 18 3. A listing of key staff; 19 4. An organizational chart; 20 5. Financial information, including a statement of plan net assets, a 21 statement of changes in plan net assets, an actuarial value of assets, a 22 schedule of investments, a statement of funded status and funding 23 progress, and other supporting data; 24 6. Investment information, including a general overview, a list of the 25 system's professional consultants, a total net of fees return on system 26 investments over a historical period, an investment summary, contracted 27 UNOFFICIAL COPY 24 RS BR 342 Page 35 of 110 XXXX 1/22/2024 9:18 AM Jacketed investment management expenses, transaction commissions, and a 1 schedule of investments; 2 7. The annual actuarial valuation report on the pension benefit and the 3 medical insurance benefit; and 4 8. A general statistical section, including information on contributions, 5 benefit payouts, and retirement system demographic data; 6 (c) All external audits; 7 (d) All board minutes or other materials that require adoption or ratification by 8 the board of trustees. The items listed in this paragraph shall be posted within 9 seventy-two (72) hours of adoption or ratification of the board; 10 (e) All bylaws, policies, or procedures adopted or ratified by the board of 11 trustees; 12 (f) The system's summary plan description; 13 (g) A document containing an unofficial copy of the statutes governing the 14 system; 15 (h) A listing of the members of the board of trustees and membership on each 16 committee established by the board, including any investment committees; 17 (i) All investment holdings in aggregate, fees, and commissions for each fund 18 administered by the board, which shall be updated on a quarterly basis for 19 fiscal years beginning on or after July 1, 2021. The system shall request from 20 all managers, partnerships, and any other available sources all information 21 regarding fees and commissions and shall, based on the requested information 22 received: 23 1. Disclose the dollar value of fees and commissions paid to each 24 individual manager or partnership; 25 2. Disclose the dollar value of any profit sharing, carried interest, or any 26 other partnership incentive arrangements, partnership agreements, or 27 UNOFFICIAL COPY 24 RS BR 342 Page 36 of 110 XXXX 1/22/2024 9:18 AM Jacketed any other partnership expenses received by or paid to each manager or 1 partnership; and 2 3. As applicable, report each fee or commission by manager or partnership 3 consistent with standards established by the Institutional Limited 4 Partners Association (ILPA). 5 In addition to the requirements of this paragraph, the system shall also 6 disclose the name and address of all individual underlying managers or 7 partners in any fund of funds in which system assets are invested; 8 (j) An update of net of fees investment returns, asset allocations, and the 9 performance of the funds against benchmarks adopted by the board for each 10 fund, for each asset class administered by the board, and for each manager. 11 The update shall be posted on a quarterly basis for fiscal years beginning on 12 or after July 1, 2021; 13 (k) A searchable database of the system's expenditures and a listing of each 14 individual employed by the system along with the employee's salary or wages. 15 In lieu of posting the information required by this paragraph to the Kentucky 16 Public Pensions Authority's website, the system may provide the information 17 through a website established by the executive branch to inform the public 18 about public employee salaries and wages; 19 (l) All contracts or offering documents for services, goods, or property purchased 20 or utilized by the system for contracts or offering documents entered into on 21 or after July 1, 2021; 22 (m) Information regarding the system's financial and actuarial condition that is 23 easily understood by the members, retired members, and the public; and 24 (n) All proxy vote reports as provided by KRS 78.790(7). 25 (19) Notwithstanding the requirements of subsection (18) of this section, the system 26 shall not be required to furnish information that is protected under KRS 61.661, 27 UNOFFICIAL COPY 24 RS BR 342 Page 37 of 110 XXXX 1/22/2024 9:18 AM Jacketed exempt under KRS 61.878, or that, if disclosed, would compromise the system's 1 ability to competitively invest in real estate or other asset classes, except that no 2 provision of this section or KRS 61.878 shall exclude disclosure and review of all 3 contracts, including investment contracts, by the board, the Auditor of Public 4 Accounts, and the Government Contract Review Committee established pursuant to 5 KRS 45A.705 or the disclosure of investment fees and commissions as provided by 6 this section. If any public record contains material which is not excepted under this 7 section, the system shall separate the excepted material by removal, segregation, or 8 redaction, and make the nonexcepted material available for examination. 9 (20) Notwithstanding any other provision of KRS 78.510 to 78.852 to the contrary, no 10 funds of the County Employees Retirement System, including fees and 11 commissions paid to an investment manager, private fund, or company issuing 12 securities, who manages systems assets, shall be used to pay fees and commissions 13 to placement agents. For purposes of this subsection, "placement agent" means a 14 third-party individual, who is not an employee, or firm, wholly or partially owned 15 by the entity being hired, who solicits investments on behalf of an investment 16 manager, private fund, or company issuing securities. 17 Section 5. KRS 117.045 is amended to read as follows: 18 (1) (a) The county board of elections shall in the manner prescribed by this section, 19 not later than March 20 each year, except in a year in which no primary and 20 regular elections are scheduled, appoint for each precinct in the county two 21 (2) judges, one (1) clerk and one (1) sheriff of election. They shall serve in all 22 elections held in the county during the year, except for minors seventeen (17) 23 years of age who will become eighteen (18) years of age on or before the day 24 of the regular election who may only serve as election officers for the primary 25 and regular elections as provided in subsection (9) of this section. 26 (b) If a special election is ordered to be held in a year in which no elections are 27 UNOFFICIAL COPY 24 RS BR 342 Page 38 of 110 XXXX 1/22/2024 9:18 AM Jacketed scheduled, the county executive committee of each political party in each 1 county in the territory affected by the special election shall, not later than 2 twenty-eight (28) days preceding the date of the special election, submit a 3 written list of nominees for precinct election officers to serve in the special 4 election in a manner consistent with the provisions of subsection (2) of this 5 section. The county board of elections in each county in the territory affected 6 by the special election shall, not later than twenty-one (21) days preceding the 7 date of the special election, appoint precinct election officers to serve in the 8 special election in a manner consistent with the provisions of subsections (4), 9 (5), and (6) of this section. 10 (c) The State Board of Elections shall promulgate an administrative regulation 11 under KRS Chapter 13A establishing evaluation procedures which county 12 boards of elections may use to qualify persons nominated to serve as precinct 13 election officers. 14 (2) The county executive committees of the two (2) political parties having 15 representation on the State Board of Elections may, on or before March 15 each 16 year, designate in writing to the county board of elections a list of not less than four 17 (4) names for each precinct; except that, in any precinct where there are not as 18 many as four (4) persons possessing the qualifications of an election officer 19 belonging to the political party filing the list, a lesser number may be designated. If 20 there are two (2) or more contending executive committees of the same party in any 21 county, the one recognized by the written certificate of the chair of the state central 22 committee of the party shall be the one authorized to submit the lists. The lists shall 23 contain the full name, address, phone number, and date of birth[Social Security 24 number], if available, of each person listed. The lists shall be accompanied by a 25 signed statement from each person stating that he or she is willing to serve, has not 26 failed to serve without excuse in the past, and has not been convicted of an election 27 UNOFFICIAL COPY 24 RS BR 342 Page 39 of 110 XXXX 1/22/2024 9:18 AM Jacketed law offense or any felony, unless the person's civil rights have been restored by the 1 Governor. The State Board of Elections shall prescribe the form of the list by 2 administrative regulation promulgated under KRS Chapter 13A. 3 (3) The Attorney General shall notify each party state central committee of the duties 4 of the party. 5 (4) (a) If lists are submitted by the county executive committees under subsection (2) 6 of this section, the county board of elections shall select one (1) judge at each 7 voting place from each political party's list, and the county board shall select 8 the sheriff from one (1) political party's list and the clerk from the other. 9 (b) If no lists are submitted by the county executive committees under subsection 10 (2) of this section, the two (2) members of the county board of elections who 11 are appointed by the State Board of Elections may submit lists; and the county 12 board of elections shall select the sheriff and one (1) judge from one (1) list 13 and the clerk and the other judge from the remaining list. 14 (c) If no lists are submitted by the county executive committees under subsection 15 (2) of this section, or by the county board of elections under paragraph (b) of 16 this subsection, the county clerk shall select the sheriff and one (1) judge from 17 the membership of one (1) party and the clerk and the other judge from the 18 membership of the remaining party. If no members of one (1) of the two (2) 19 political parties are available or willing to serve as a judge, the county clerk 20 shall select any qualified and registered voter within the county to serve as a 21 judge at a voting place. 22 (d) The county board of elections shall, when possible, also appoint an adequate 23 number of alternate precinct election officers from names on the lists which 24 were submitted but which were not selected by the county board as precinct 25 election officers. If alternate precinct election officers are not appointed from 26 the lists of nominees who were not selected as precinct election officers, the 27 UNOFFICIAL COPY 24 RS BR 342 Page 40 of 110 XXXX 1/22/2024 9:18 AM Jacketed county board of elections shall submit its method of selecting alternate 1 precinct election officers to the State Board of Elections for its approval. If no 2 lists are submitted to the county board of elections as provided in this 3 subsection, the county clerk shall select an adequate number of alternate 4 precinct election officers. 5 (e) The names of all precinct election officers and alternate precinct election 6 officers selected by the county clerk shall be submitted to the county board of 7 elections for its approval. 8 (f) Nothing in this subsection shall prevent the selection of any registered and 9 qualified voter who is not registered with either of the two (2) political parties 10 to serve as a precinct election officer in a precinct in which the officer resides 11 or as otherwise provided in this subsection. 12 (5) If, after all reasonable efforts have been made, neither the county board of elections 13 nor the county clerk are able to find two (2) qualified officers for each precinct who 14 are affiliated with the two (2) political parties having representation on the State 15 Board of Elections or any other qualified and registered voter within the county, the 16 county board of elections shall submit a list of emergency election officer 17 appointments to the State Board of Elections. The county board of elections shall 18 also present, in writing, its efforts to recruit and appoint election officers as 19 prescribed in subsection (4) of this section. The State Board of Elections, after its 20 review, may approve any or all of the emergency appointments submitted by the 21 county board of elections or may direct the county board to take other action. Any 22 emergency appointment shall be made for the next ensuing election only. 23 (6) In addition to precinct election officers appointed under subsection (1) of this 24 section, a county board of elections or the county clerk may appoint up to two (2) 25 additional precinct election officers per precinct with the approval of the State 26 Board of Elections. The State Board of Elections shall promulgate an administrative 27 UNOFFICIAL COPY 24 RS BR 342 Page 41 of 110 XXXX 1/22/2024 9:18 AM Jacketed regulation under KRS Chapter 13A establishing conditions under which additional 1 precinct officers may be approved. 2 (7) The county board of elections shall, not less than ten (10) days before the next 3 ensuing election, send to each election officer written notice of his or her 4 appointment. The county board of elections may direct the sheriff of the county to 5 serve the notice of appointment, if it deems the action is necessary. 6 (8) The State Board of Elections may require the county board of elections to submit its 7 list of precinct officers for review. The State Board of Elections may, after a 8 hearing, direct the removal of any election officer who the board finds would not 9 fairly administer the state election laws. The State Board of Elections shall provide 10 for the method and manner of the hearing by administrative regulation promulgated 11 under KRS Chapter 13A, and shall replace any officer so removed. 12 (9) (a) An election officer shall be a qualified voter of the precinct; except that, 13 where no qualified voter of the required political party is available within the 14 precinct, the election officer shall be a qualified voter of the county. 15 (b) A minor seventeen (17) years of age who will become eighteen (18) years of 16 age on or before the day of the regular election may serve as an election 17 officer for the primary and regular elections in which he or she is qualified to 18 vote; however, no precinct shall have more than one (1) person serving as an 19 election officer who is a minor seventeen (17) years of age. 20 (c) An election officer shall not be a candidate for office during the election year. 21 (d) An election officer shall not be the spouse, parent, brother, sister, or child of a 22 candidate who is to be voted for at the election in the precinct in which the 23 election officer will serve on election day. 24 (e) An election officer shall not have changed his or her voter registration party 25 affiliation after December 31 immediately preceding his or her appointment to 26 serve for the primary, or after the second Tuesday in August to serve for the 27 UNOFFICIAL COPY 24 RS BR 342 Page 42 of 110 XXXX 1/22/2024 9:18 AM Jacketed regular election. 1 (f) An election officer may be removed, for cause, at any time up to five (5) days 2 before an election. Vacancies shall be filled by the county board of elections 3 or the county clerk with alternate precinct election officers and if the vacancy 4 occurs in the appointment of a judge, the person appointed to fill the vacancy 5 shall be of the same political affiliation as the vacating officer, except for 6 emergency appointments made as provided in subsection (5) of this section. 7 (10) If the county board of elections or the county clerk fails to appoint election officers, 8 or if any officer is not present at the precinct at the time for commencing the 9 election, or refuses to act, and if no alternate is available, the officer in attendance 10 representing the political party of the absentee shall appoint a suitable person to act 11 in his or her place for that election. If both representatives of the same political 12 party are absent, qualified voters present affiliating with that party shall elect, viva 13 voce, suitable persons to act in their places. 14 (11) Each election officer shall be paid a minimum of sixty dollars ($60) per election 15 day served, and such an additional amount as compensation as may be determined 16 by the county board of elections, with the approval of the governing body which 17 would be responsible for funding the election officers' pay, for each election in 18 which the election officer serves, to be paid by the county. For delivering the 19 election packets to the polls, the precinct election officers shall additionally receive 20 the mileage reimbursement provided for state employees, for each mile necessarily 21 traveled in the delivery of the packets to the polls, or a flat fee if the fee equals or 22 exceeds that amount. For delivering election returns, the precinct election judges 23 shall additionally receive the mileage reimbursement provided for state employees 24 for each mile necessarily traveled in the delivery of election returns, or a flat fee if 25 the fee equals or exceeds that amount. The fee paid to the precinct election judges 26 for delivering election returns shall be paid by the county. 27 UNOFFICIAL COPY 24 RS BR 342 Page 43 of 110 XXXX 1/22/2024 9:18 AM Jacketed Section 6. KRS 132.017 is amended to read as follows: 1 (1) As used in this section, "local governmental entity" includes a county fiscal court 2 and legislative body of a city, urban-county government, consolidated local 3 government, charter county government, unified local government, or other taxing 4 district. 5 (2) (a) 1. Except as provided in subparagraph 2. of this paragraph, the portion of a 6 tax rate levied by an ordinance, order, resolution, or motion of a local 7 governmental entity or district board of education subject to recall as 8 provided for in KRS 68.245, 132.023, 132.027, and 160.470, shall go 9 into effect forty-five (45) days after its passage. 10 2. When a tax rate is levied by a district board of education or other taxing 11 district that is primarily located in a county containing an urban-county 12 government or a consolidated local government, the portion of a tax rate 13 levied by an ordinance, order, resolution, or motion of a district board of 14 education or other taxing district subject to recall as provided for in KRS 15 68.245, 132.023, 132.027, and 160.470, shall go into effect fifty (50) 16 days after its passage. 17 (b) During the same forty-five (45) day or fifty (50) day time period provided by 18 paragraph (a) of this subsection, any five (5) qualified voters, who reside in 19 the area where the tax levy will be imposed, may commence petition 20 proceedings to protest the passage of the ordinance, order, resolution, or 21 motion by filing an affidavit with the county clerk. The affidavit shall state: 22 1. The five (5) qualified voters constitute the members of the petition 23 committee; 24 2. The petition committee will be responsible for circulating the petition; 25 3. The petition committee will file the petition in the proper form within 26 the same forty-five (45) day or fifty (50) day time period provided by 27 UNOFFICIAL COPY 24 RS BR 342 Page 44 of 110 XXXX 1/22/2024 9:18 AM Jacketed paragraph (a) of this subsection; 1 4. The names and addresses of the petition committee members; 2 5. The address to which all notices to the committee are to be sent; and 3 6. For petition committees filing petitions in response to a tax rate levied 4 by a district board of education or other taxing district that is primarily 5 located in a county containing an urban-county government or a 6 consolidated local government, whether or not the petition committee is 7 willing to incur all of the expenses associated with electronic petition 8 signatures. If the petition committee is not willing to incur all of the 9 expenses, then electronic petition signatures shall not be allowed for the 10 petition. 11 (c) Upon receipt of the affidavit, the county clerk shall immediately: 12 1. Notify the petition committee of all statutory requirements for the filing 13 of a valid petition under this section; 14 2. Notify the petition committee that the clerk will publish a notice 15 identifying the tax levy being challenged and providing the names and 16 addresses of the petition committee in a newspaper of general 17 circulation within the county, if: 18 a. There is a newspaper within the county in which to publish the 19 notice; and 20 b. The petition committee remits an amount equal to the cost of 21 publishing the notice determined in accordance with the provisions 22 of KRS 424.160 at the time of the filing of the affidavit. 23 If the petition committee elects to have the notice published, the clerk 24 shall publish the notice within five (5) days of receipt of the affidavit; 25 and 26 3. Deliver a copy of the affidavit to the appropriate local governmental 27 UNOFFICIAL COPY 24 RS BR 342 Page 45 of 110 XXXX 1/22/2024 9:18 AM Jacketed entity or district board of education. 1 (d) The petition shall be filed with the county clerk within the same forty-five 2 (45) day or fifty (50) day time period provided by paragraph (a) of this 3 subsection and meet the following requirements: 4 1. All papers of the petition shall be substantially uniform in size and style 5 and shall be assembled in one (1) instrument for filing; 6 2. For a district board of education or other taxing district that is primarily 7 located in a county containing an urban-county government or a 8 consolidated local government, each sheet of the petition may contain 9 the names of voters from more than one (1) voting precinct, and for a 10 district board of education or other taxing district that is not primarily 11 located in a county containing an urban-county government or a 12 consolidated local government, each sheet of the petition shall contain 13 the names of voters from one (1) voting precinct; 14 3. Each nonelectronic petition signature shall be executed in ink or 15 indelible pencil; 16 4. Each electronic petition signature shall comply with the requirements of 17 the Uniform Electronic Transactions Act, KRS 369.101 to 369.120; 18 5. Each electronic and nonelectronic petition signature shall be followed 19 by the printed name, street address,[ Social Security number or] birth 20 month, and the name and number of the designated voting precinct of 21 the person signing; and 22 6. a. The petition shall be signed by a number of registered and 23 qualified voters residing in the affected jurisdiction equal to at 24 least ten percent (10%) of the total number of votes cast in the last 25 preceding presidential election. 26 b. Electronic petition signatures shall be included in determining 27 UNOFFICIAL COPY 24 RS BR 342 Page 46 of 110 XXXX 1/22/2024 9:18 AM Jacketed whether the required number of petition signatures has been 1 obtained when the expenses associated with the electronic petition 2 signatures have been incurred in accordance with paragraph (b)6. 3 of this subsection, the electronic petition signatures comply with 4 the requirements of this subsection, and the petition was filed in 5 response to a tax rate levied by a district board of education or 6 other taxing district that is primarily located in a county containing 7 an urban-county government or a consolidated local government. 8 The inclusion of an invalid electronic or nonelectronic petition 9 signature on a page shall not invalidate the entire page of the 10 petition, but shall instead result in the invalid petition signature 11 being stricken and not counted. 12 c. Notwithstanding subdivision a. of this subparagraph if a petition is 13 filed in response to a tax rate levied by a district board of 14 education, the petition shall be signed by at least five thousand 15 (5,000) registered and qualified voters residing in the affected 16 jurisdiction, or signed by a number of registered and qualified 17 voters residing in the affected jurisdiction equal to at least ten 18 percent (10%) of the total number of votes cast in the last 19 preceding presidential election, whichever is less. 20 (e) Upon the filing of the petition with the county clerk, the ordinance, order, 21 resolution, or motion shall be suspended from going into effect until after the 22 election referred to in subsection (3) of this section is held, or until the 23 petition is finally determined to be insufficient and no further action may be 24 taken pursuant to paragraph (i) of this subsection. 25 (f) The county clerk shall immediately notify the presiding officer of the 26 appropriate local governmental entity or district board of education that the 27 UNOFFICIAL COPY 24 RS BR 342 Page 47 of 110 XXXX 1/22/2024 9:18 AM Jacketed petition has been received and shall, within thirty (30) days of the receipt of 1 the petition, make a determination of whether the petition contains enough 2 signatures of qualified voters to place the ordinance, order, resolution, or 3 motion before the voters. 4 (g) If the county clerk finds the petition to be sufficient, the clerk shall certify to 5 the petition committee and the local governmental entity or district board of 6 education within the thirty (30) day period provided for in paragraph (f) of 7 this subsection that the petition is properly presented and in compliance with 8 the provisions of this section, and that the ordinance, order, resolution, or 9 motion levying the tax will be placed before the voters for approval. 10 (h) If the county clerk finds the petition to be insufficient, the clerk shall, within 11 the thirty (30) day period provided for in paragraph (f) of this subsection, 12 notify, in writing, the petition committee and the local governmental entity or 13 district board of education of the specific deficiencies found. Notification 14 shall be sent by certified mail and shall be published at least one (1) time in a 15 newspaper of general circulation within the county containing the local 16 governmental entity or district board of education levying the tax. If there is 17 not a newspaper within the county in which to publish the notification, then 18 the notification shall be posted at the courthouse door. 19 (i) A final determination of the sufficiency of a petition shall be subject to final 20 review by the Circuit Court of the county in which the local governmental 21 entity or district board of education is located, and shall be limited to the 22 validity of the county clerk's determination. Any petition challenging the 23 county clerk's final determination shall be filed within ten (10) days of the 24 issuance of the clerk's final determination. 25 (j) The local governmental entity or district board of education may cause the 26 cancellation of the election by reconsidering and amending the ordinance, 27 UNOFFICIAL COPY 24 RS BR 342 Page 48 of 110 XXXX 1/22/2024 9:18 AM Jacketed order, resolution, or motion to levy a tax rate which will produce no more 1 revenue from real property, exclusive of revenue from new property as 2 defined in KRS 132.010, than four percent (4%) over the amount of revenue 3 produced by the compensating tax rate defined in KRS 132.010 from real 4 property. The action by the local governmental entity or district board of 5 education shall be valid only if taken within fifteen (15) days following the 6 date the clerk finds the petition to be sufficient. 7 (3) (a) If an election is necessary under the provisions of subsection (2) of this 8 section, the local governmental entity shall cause to be submitted to the voters 9 of the district at the next regular election, the question as to whether the 10 property tax rate shall be levied. The question shall be submitted to the county 11 clerk not later than the second Tuesday in August preceding the regular 12 election. 13 (b) If an election is necessary for a school district under the provisions of 14 subsection (2) of this section, the district board of education may cause to be 15 submitted to the voters of the district in a called common school election not 16 less than thirty-five (35) days nor more than forty-five (45) days from the date 17 the signatures on the petition are validated by the county clerk, or at the next 18 regular election, at the option of the district board of education, the question 19 as to whether the property tax rate shall be levied. If the election is held in 20 conjunction with a regular election, the question shall be submitted to the 21 county clerk not later than the second Tuesday in August preceding the 22 regular election. The cost of a called common school election shall be borne 23 by the school district holding the election. Any called common school election 24 shall comply with the provisions of KRS 118.025. 25 (c) In an election held under paragraph (a) or (b) of this subsection, the question 26 shall be so framed that the voter may by his or her vote answer "for" or 27 UNOFFICIAL COPY 24 RS BR 342 Page 49 of 110 XXXX 1/22/2024 9:18 AM Jacketed "against." If a majority of the votes cast upon the question oppose its passage, 1 the ordinance, order, resolution, or motion shall not go into effect. If a 2 majority of the votes cast upon the question favor its passage, the ordinance, 3 order, resolution, or motion shall become effective. 4 (d) If the ordinance, order, resolution, or motion fails to pass pursuant to an 5 election held under paragraph (a) or (b) of this subsection, the property tax 6 rate which will produce four percent (4%) more revenues from real property, 7 exclusive of revenue from new property as defined in KRS 132.010, than the 8 amount of revenue produced by the compensating tax rate defined in KRS 9 132.010, shall be levied without further approval by the local governmental 10 entity or district board of education. 11 (e) Local, state, and federal tax dollars shall not be used to advocate, in partial 12 terms, for or against any public question that appears on the ballot in this 13 subsection. For purposes of this section, "local" means and includes any city, 14 county, urban-county government, consolidated local government, unified 15 local government, charter county, or special district. 16 (4) Notwithstanding any statutory provision to the contrary, if a local governmental 17 entity or district board of education has not established a final tax rate as of 18 September 15, due to the recall provisions of this section, KRS 68.245, 132.027, or 19 160.470, regular tax bills shall be prepared as required in KRS 133.220 for all 20 districts having a tax rate established by that date; and a second set of bills shall be 21 prepared and collected in the regular manner, according to the provisions of KRS 22 Chapter 132, upon establishment of final tax rates by the remaining districts. 23 (5) If a second billing is necessary, the collection period shall be extended to conform 24 with the second billing date. 25 (6) All costs associated with the second billing shall be paid by the taxing district or 26 districts requiring the second billing. 27 UNOFFICIAL COPY 24 RS BR 342 Page 50 of 110 XXXX 1/22/2024 9:18 AM Jacketed Section 7. KRS 132.100 is amended to read as follows: 1 If the General Assembly enacts any act pursuant to Section 171 of the Constitution as 2 amended, classifying property and providing a lower rate of taxation on personal property 3 than on real property, the provisions of the act shall be subject to a referendum upon the 4 written petition of qualified voters equal to at least five percent (5%) of the votes cast in 5 the state for a slate of candidates for Governor and Lieutenant Governor at the last 6 preceding regular election. The petition shall be filed with the Secretary of State not more 7 than four (4) months after the final adjournment of the General Assembly that passed the 8 act on which the referendum is demanded, and shall specify the act or the item, section or 9 part of the act on which the referendum is demanded. The petition shall be uniform in 10 size and style and shall be assembled in one (1) instrument for filing. Each sheet of the 11 petition shall contain the names of voters from one (1) voting precinct only, and shall 12 include the name, number and designation of the precinct in which the voters signing the 13 petition live. The inclusion of an invalid signature on a page shall not invalidate the entire 14 page of the petition, but shall instead result in the invalid signature being stricken and not 15 counted. Each signature shall be executed in ink or indelible pen and shall be followed by 16 the printed name, residence address, and[ Social Security number or] date of birth of legal 17 voters. 18 Section 8. KRS 159.051 is amended to read as follows: 19 (1) When a student age sixteen (16) or seventeen (17) drops out of school or is declared 20 to be academically deficient, the school administrator or his or her designee shall 21 notify the superintendent of schools of the district in which the student is a resident 22 or is enrolled. The reports shall be made at the end of each semester but may be 23 made earlier in the semester for accumulated absences. A student shall be deemed 24 to have dropped out of school when he or she has nine (9) or more unexcused 25 absences in the preceding semester. Any absences due to suspension shall be 26 unexcused absences. A student shall be deemed to be academically deficient when 27 UNOFFICIAL COPY 24 RS BR 342 Page 51 of 110 XXXX 1/22/2024 9:18 AM Jacketed he or she has not received passing grades in at least four (4) courses, or the 1 equivalent of four (4) courses, in the preceding semester. The local school board 2 shall adopt a policy to reflect a similar standard for academic deficiency for 3 students in alternative, special education, or part-time programs. 4 (2) Within ten (10) days after receiving the notification, the superintendent shall report 5 the student's name and date of birth[Social Security number] to the Transportation 6 Cabinet. As soon as possible thereafter, the cabinet shall notify the student that his 7 or her operator's license, intermediate license, permit, or privilege to operate a 8 motor vehicle has been revoked or denied and shall inform the student of his or her 9 right to a hearing before the District Court of appropriate venue to show cause as to 10 the reasons the[his] license, permit, or privilege should be reinstated. Within fifteen 11 (15) days after this notice is sent, the custodial parent, legal guardian, or next friend 12 of the student may request an ex parte hearing before the District Court. The student 13 shall not be charged District Court filing fees. The notification shall inform the 14 student that he or she is not required to have legal counsel. 15 (3) In order for the student to have his or her license reinstated, the court shall be 16 satisfied that: 17 (a) The license is needed to meet family obligations or family economic 18 considerations which, if unsatisfied, would create an undue hardship; or 19 (b) The student is the only licensed driver in the household; or 20 (c) The student is not considered a dropout or academically deficient pursuant to 21 this section. 22 If the student satisfies the court, the court shall notify the cabinet to reinstate the 23 student's license at no cost. The student, if aggrieved by a decision of the court 24 issued pursuant to this section, may appeal the decision within thirty (30) days to 25 the Circuit Court of appropriate venue. A student who is being schooled at home 26 shall be considered to be enrolled in school. 27 UNOFFICIAL COPY 24 RS BR 342 Page 52 of 110 XXXX 1/22/2024 9:18 AM Jacketed (4) A student who has had a[his] license revoked under the provisions of this section 1 may reapply for a[his] driver's license as early as the end of the semester during 2 which he or she enrolls in school and successfully completes the educational 3 requirements. A student may also reapply for a[his] driver's license at the end of a 4 summer school semester which results in the student having passed at least four (4) 5 courses, or the equivalent of four (4) courses, during the successive spring and 6 summer semesters, and the courses meet the educational requirements for 7 graduation. The student[He] shall provide proof issued by the[his] school within 8 the preceding sixty (60) days that he or she is enrolled and is not academically 9 deficient. 10 Section 9. KRS 160.485 is amended to read as follows: 11 (1) The imposition of license fees authorized hereby shall be by order or resolution of 12 the fiscal court. There shall be no more than one (1) order or resolution passed in 13 any one (1) calendar year. In the case of license fees required to be imposed 14 pursuant to subsection (2) of KRS 160.484, the fiscal court shall make the order or 15 resolution within ten (10) days following receipt of the first request which makes 16 subsection (2) of KRS 160.484 effective. 17 (2) (a) The order or resolution of the fiscal court imposing license fees pursuant to 18 subsections (1), (2), or (4) of KRS 160.484 shall go into effect forty-five (45) 19 days after its passage. 20 (b) During the forty-five (45) days next following the passage of the order or 21 resolution, any five (5) qualified voters who reside in the county may 22 commence petition proceedings to protest the passage of the order or 23 resolution by filing with the county clerk an affidavit stating that they 24 constitute the petition committee and that they will be responsible for 25 circulating the petition and filing it in the proper form within forty-five (45) 26 days from the passage of the order or resolution. The affidavit shall state their 27 UNOFFICIAL COPY 24 RS BR 342 Page 53 of 110 XXXX 1/22/2024 9:18 AM Jacketed names and addresses and specify the address to which all notices to the 1 committee are to be sent. Upon receipt of the affidavit, the county clerk shall: 2 1. At the time of filing of the affidavit, notify the petition committee of all 3 statutory requirements for the filing of a valid petition under this 4 section; 5 2. At the time of the filing of the affidavit, notify the petition committee 6 that the clerk will publish a notice identifying the tax levy being 7 challenged and providing the names and addresses of the petition 8 committee in a newspaper of general circulation within the county, if 9 such publication exists, if the petition committee remits an amount equal 10 to the cost of publishing the notice determined in accordance with the 11 provisions of KRS 424.160 at the time of the filing of the affidavit. If 12 the petition committee elects to have the notice published, the clerk shall 13 publish the notice within five (5) days of receipt of the affidavit; and 14 3. Deliver a copy of the affidavit to the fiscal court and the impacted 15 school districts. 16 (c) The petition shall be filed with the county clerk within forty-five (45) days of 17 the passage of the order or resolution. All papers of the petition shall be 18 uniform in size and style and shall be assembled in one (1) instrument for 19 filing. Each sheet of the petition shall contain the names of voters from one 20 (1) voting precinct only, and shall include the name, number and designation 21 of the precinct in which the voters signing the petition live. The inclusion of 22 an invalid signature on a page shall not invalidate the entire page of the 23 petition, but shall instead result in the invalid signature being stricken and not 24 counted. Each signature shall be executed in ink or indelible pencil and shall 25 be followed by the printed name, street address, and[ Social Security number 26 or] birthdate of the person signing. The petition shall be signed by a number 27 UNOFFICIAL COPY 24 RS BR 342 Page 54 of 110 XXXX 1/22/2024 9:18 AM Jacketed of registered and qualified voters residing in the affected jurisdiction equal to 1 at least ten percent (10%) of the total number of votes cast in the last 2 preceding presidential election. 3 (d) Upon the filing of the petition with the county clerk, the order or resolution 4 shall be suspended until after the election referred to in subsection (3) of this 5 section is held, or until the petition is finally determined to be insufficient and 6 no further action may be taken pursuant to paragraph (h) of this subsection. 7 (e) The clerk shall immediately notify the fiscal court and the impacted school 8 districts that the petition has been received and shall, within thirty (30) days of 9 the receipt of the petition, make a determination of whether the petition 10 contains enough signatures of qualified voters to place the order or resolution 11 before the voters. 12 (f) If the county clerk finds the petition to be sufficient, the clerk shall certify to 13 the petition committee, the fiscal court, and the impacted school boards within 14 the thirty (30) day period provided for in paragraph (e) of this subsection that 15 the petition is properly presented and in compliance with the provisions of this 16 section, and that the order or resolution levying the tax will be placed before 17 the voters for approval. 18 (g) If the county clerk finds the petition to be insufficient, the clerk shall, within 19 the thirty (30) day period provided for in paragraph (e) of this subsection, 20 notify, in writing, the petition committee, the fiscal court and the impacted 21 school districts of the specific deficiencies found. Notification shall be sent by 22 certified mail and shall be published at least one (1) time in a newspaper of 23 general circulation within the county or, if there is no such newspaper, shall 24 be posted at the courthouse door. 25 (h) A final determination of the sufficiency of a petition shall be subject to final 26 review by the Circuit Court of the county and shall be limited to the validity 27 UNOFFICIAL COPY 24 RS BR 342 Page 55 of 110 XXXX 1/22/2024 9:18 AM Jacketed of the county clerk's determination. Any petition challenging the county 1 clerk's final determination shall be filed within ten (10) days of the issuance of 2 the clerk's final determination. 3 (3) Upon validation of the petition, the fiscal court shall submit to the voters of the 4 county at the next regular election or called common school district election, which 5 shall be held not less than thirty-five (35) days nor more than forty-five (45) days 6 from the date the signatures on the petition are validated by the county clerk, the 7 question as to whether the license fees for common school purposes shall be levied. 8 Any called common school election shall comply with the provisions of KRS 9 118.025. If the election is held in conjunction with a regular election, the question 10 shall be submitted to the county clerk not later than the second Tuesday in August 11 preceding the regular election. The question shall be[ so] framed so that the voter 12 may[ by his vote] answer, "for" or "against." If a majority of the votes cast upon the 13 question oppose its passage, the order or resolution shall not go into effect. If a 14 majority of the votes cast upon the question favor its passage, the order or 15 resolution shall go into effect. 16 (4) License fees imposed pursuant to KRS 160.482 to 160.488 shall become effective 17 on the date specified in the order or resolution, but no later than the first day of the 18 calendar year first beginning after the day the order or resolution is made. 19 Section 10. KRS 160.597 is amended to read as follows: 20 Any school tax authorized by KRS 160.593 to 160.597, 160.601 to 160.633, and 160.635 21 to 160.648 may be recalled as follows: 22 (1) (a) The order or resolution levying any of the school taxes designated in this 23 section shall go into effect not less than forty-five (45) days nor more than 24 ninety (90) days after its passage. 25 (b) During the forty-five (45) days immediately following the passage of the 26 order or resolution, any five (5) qualified voters who reside in the school 27 UNOFFICIAL COPY 24 RS BR 342 Page 56 of 110 XXXX 1/22/2024 9:18 AM Jacketed district levying the tax may commence petition proceedings to protest the 1 passage of the order or resolution by filing with the county clerk an affidavit 2 stating that they constitute the petition committee and that they will be 3 responsible for circulating the petition and filing it in the proper form within 4 forty-five (45) days from the passage of the order or resolution. The affidavit 5 shall state their names and addresses and specify the address to which all 6 notices to the committee are to be sent. Upon receipt of the affidavit, the 7 county clerk shall: 8 1. At the time of filing of the affidavit, notify the petition committee of all 9 statutory requirements for the filing of a valid petition under this 10 section; 11 2. At the time of the filing of the affidavit, notify the petition committee 12 that the clerk will publish a notice identifying the tax levy being 13 challenged and providing the names and addresses of the petition 14 committee in a newspaper of general circulation within the county, if 15 such publication exists, if the petition committee remits an amount equal 16 to the cost of publishing the notice determined in accordance with the 17 provisions of KRS 424.160 at the time of the filing of the affidavit. If 18 the petition committee elects to have the notice published, the clerk shall 19 publish the notice within five (5) days of receipt of the affidavit; and 20 3. Deliver a copy of the affidavit to the school board or combined taxing 21 district. 22 (c) The petition shall be filed with the county clerk within forty-five (45) days of 23 the passage of the order or resolution. All papers of the petition shall be 24 uniform in size and style and shall be assembled in one (1) instrument for 25 filing. Each sheet of the petition shall contain the names of voters from one 26 (1) voting precinct only, and shall include the name, number and designation 27 UNOFFICIAL COPY 24 RS BR 342 Page 57 of 110 XXXX 1/22/2024 9:18 AM Jacketed of the precinct in which the voters signing the petition live. The inclusion of 1 an invalid signature on a page shall not invalidate the entire page of the 2 petition, but shall instead result in the invalid signature being stricken and not 3 counted. Each signature shall be executed in ink or indelible pencil and shall 4 be followed by the printed name, street address, and[ Social Security number 5 or] birthdate of the person signing. The petition shall be signed by a number 6 of registered and qualified voters residing in the affected jurisdiction equal to 7 at least ten percent (10%) of the total number of votes cast in the last 8 preceding presidential election, except in consolidated local governments, 9 where the petition shall be signed by a number of registered and qualified 10 voters equal to at least five percent (5%) of the total number of votes cast in 11 the last preceding presidential election. 12 (d) Upon the filing of the petition with the county clerk, the order or resolution 13 shall be suspended from going into effect for that district until after the 14 election provided for in subsection (2) of this section is held, or until the 15 petition is finally determined to be insufficient and no further action may be 16 taken pursuant to paragraph (h) of this subsection. 17 (e) The county clerk shall immediately notify the school board or combined 18 taxing district that the petition has been received and shall, within thirty (30) 19 days of receipt of the petition, make a determination of whether the petition 20 contains enough signatures of qualified voters to place the order or resolution 21 before the voters. 22 (f) If the county clerk finds the petition to be sufficient, the clerk shall certify to 23 the school board or combined taxing district and the petition committee within 24 the thirty (30) day period provided for in paragraph (e) of this subsection, that 25 the petition is properly presented and in compliance with the provisions of this 26 section, and that the order or resolution levying the tax will be placed before 27 UNOFFICIAL COPY 24 RS BR 342 Page 58 of 110 XXXX 1/22/2024 9:18 AM Jacketed the voters for approval. 1 (g) If the county clerk finds the petition to be insufficient, the clerk shall, within 2 the thirty (30) day period provided for in paragraph (e) of this subsection, 3 notify, in writing, the petition committee and the school district or combined 4 taxing district levying the tax of the specific deficiencies found. Notification 5 shall be sent by certified mail, and shall be published at least one (1) time in a 6 newspaper of general circulation within the county containing the school 7 district levying the tax or, if there is no such newspaper, shall be posted at the 8 courthouse door. 9 (h) A final determination of the sufficiency of a petition shall be subject to final 10 review by the Circuit Court of the county in which the school district is 11 located, and shall be limited to the validity of the county clerk's 12 determination. Any petition challenging the county clerk's final determination 13 shall be filed within ten (10) days of the issuance of the clerk's final 14 determination. 15 (2) If the petition is sufficient, the county clerk shall, at the option of the district board 16 of education, either submit the question to the voters of the school district at the 17 next regular election or submit the question to the voters of the school district at a 18 called common school election, which is to be held not less than thirty-five (35) 19 days nor more than forty-five (45) days from the date the signatures on the petition 20 are validated by the county clerk. Any called common school election shall comply 21 with the provisions of KRS 118.025. If the election is to be held in conjunction with 22 a regular election, the question shall be submitted to the county clerk not later than 23 the second Tuesday in August preceding the regular election. The question shall be 24 [so ]framed so that the voter may[ by his vote] answer, "for" or "against." If a 25 majority of the votes cast in a district or combined taxing district upon the question 26 oppose its passage, the order or resolution shall not go into effect in that district or 27 UNOFFICIAL COPY 24 RS BR 342 Page 59 of 110 XXXX 1/22/2024 9:18 AM Jacketed combined taxing district. If a majority of the votes cast in a district or combined 1 taxing district upon the question favor its passage, the order or resolution shall go 2 into effect in that district. If the election is to be held in more than one (1) school 3 district within a county, the votes shall be counted separately. The cost of a called 4 common school election shall be borne by the school district causing the election to 5 be held. 6 (3) If any statute in existence on June 17, 1978, is found to be in conflict with any 7 provision of this section, the provisions of this section shall prevail. 8 Section 11. KRS 161.120 is amended to read as follows: 9 (1) Except as described in KRS 161.795, the Education Professional Standards Board 10 may revoke, suspend, or refuse to issue or renew; impose probationary or 11 supervisory conditions upon; issue a written reprimand or admonishment; or any 12 combination of those actions regarding any certificate issued under KRS 161.010 to 13 161.100, or any certificate or license issued under any previous law to 14 superintendents, principals, teachers, substitute teachers, interns, supervisors, 15 directors of pupil personnel, or other administrative, supervisory, or instructional 16 employees for the following reasons: 17 (a) Being convicted of, or entering an "Alford" plea or plea of nolo contendere to, 18 notwithstanding an order granting probation or suspending imposition of any 19 sentence imposed following the conviction or entry of the plea, one (1) of the 20 following: 21 1. A felony; 22 2. A misdemeanor under KRS Chapter 218A, 508, 509, 510, 522, 525, 23 529, 530, or 531; or 24 3. A misdemeanor involving a student or minor. 25 A certified copy of the conviction or plea shall be conclusive evidence of the 26 conviction or plea; 27 UNOFFICIAL COPY 24 RS BR 342 Page 60 of 110 XXXX 1/22/2024 9:18 AM Jacketed (b) Having sexual contact as defined in KRS 510.010(7) with a student or minor. 1 Conviction in a criminal proceeding shall not be a requirement for 2 disciplinary action; 3 (c) Committing any act that constitutes fraudulent, corrupt, dishonest, or immoral 4 conduct. If the act constitutes a crime, conviction in a criminal proceeding 5 shall not be a condition precedent to disciplinary action; 6 (d) Demonstrating willful or careless disregard for the health, welfare, or safety 7 of others; 8 (e) Physical or mental incapacity that prevents the certificate holder from 9 performing duties with reasonable skill, competence, or safety; 10 (f) Possessing, using, or being under the influence of alcohol, which impairs the 11 performance of duties; 12 (g) Unlawfully possessing or unlawfully using a drug during the performance of 13 duties; 14 (h) Incompetency or neglect of duty; 15 (i) Making, or causing to be made, any false or misleading statement or 16 concealing a material fact in obtaining issuance or renewal of any certificate; 17 (j) Failing to report as required by subsection (2) of this section; 18 (k) Failing to comply with an order of the Education Professional Standards 19 Board; 20 (l) Violating any state statute relating to schools or the teaching profession; 21 (m) Violating the professional code of ethics for Kentucky school certified 22 personnel established by the Education Professional Standards Board through 23 the promulgation of administrative regulation; 24 (n) Violating any administrative regulation promulgated by the Education 25 Professional Standards Board or the Kentucky Board of Education; or 26 (o) Receiving disciplinary action or having the issuance of a certificate denied or 27 UNOFFICIAL COPY 24 RS BR 342 Page 61 of 110 XXXX 1/22/2024 9:18 AM Jacketed restricted by another jurisdiction on grounds that constitute a violation of this 1 subsection. 2 (2) (a) The superintendent of each local school district shall report in writing to the 3 Education Professional Standards Board the name, address, phone number, 4 date of birth[Social Security number], and position name of any certified 5 school employee in the employee's district whose contract is terminated or not 6 renewed, for cause except failure to meet local standards for quality of 7 teaching performance prior to the employee gaining tenure; who resigns from, 8 or otherwise leaves, a position under threat of contract termination, or 9 nonrenewal, for cause; who is convicted in a criminal prosecution; or who 10 otherwise may have engaged in any actions or conduct while employed in the 11 school district that might reasonably be expected to warrant consideration for 12 action against the certificate under subsection (1) of this section. The duty to 13 report shall exist without regard to any disciplinary action, or lack thereof, by 14 the superintendent, and the required report shall be submitted within thirty 15 (30) days of the event giving rise to the duty to report. 16 (b) The district superintendent shall inform the Education Professional Standards 17 Board in writing of the full facts and circumstances leading to the contract 18 termination or nonrenewal, resignation, or other absence, conviction, or 19 otherwise reported actions or conduct of the certified employee, that may 20 warrant action against the certificate under subsection (1) of this section, and 21 shall forward copies of all relevant documents and records in his or her 22 possession. 23 (c) The Education Professional Standards Board may consider reports and 24 information received from other sources. 25 (d) The certified school employee shall be given a copy of any report provided to 26 the Education Professional Standards Board by the district superintendent or 27 UNOFFICIAL COPY 24 RS BR 342 Page 62 of 110 XXXX 1/22/2024 9:18 AM Jacketed other sources. The employee shall have the right to file a written rebuttal to 1 the report which shall be placed in the official file with the report. 2 (3) A finding or action by a school superintendent or tribunal does not create a 3 presumption of a violation or lack of a violation of subsection (1) of this section. 4 (4) The board may issue a written admonishment to the certificate holder if the board 5 determines, based on the evidence, that a violation has occurred that is not of a 6 serious nature. A copy of the written admonishment shall be placed in the official 7 file of the certificate holder. The certificate holder may respond in writing to the 8 admonishment within thirty (30) days of receipt and have that response placed in 9 his or her official certification file. Alternatively, the certificate holder may file a 10 request for a hearing with the board within thirty (30) days of receipt of the 11 admonishment. Upon receipt of a request for a hearing, the board shall set aside the 12 written admonishment and set the matter for hearing pursuant to the provisions of 13 KRS Chapter 13B. 14 (5) (a) The Education Professional Standards Board shall schedule and conduct a 15 hearing in accordance with KRS Chapter 13B: 16 1. Before revoking, suspending, refusing to renew, imposing probationary 17 or supervisory conditions upon, issuing a written reprimand, or any 18 combination of these actions regarding any certificate; 19 2. After denying an application for a certificate, upon written request filed 20 within thirty (30) days of receipt of the letter advising of the denial; or 21 3. After issuing a written admonishment, upon written request for a 22 hearing filed within thirty (30) days of receipt of the written 23 admonishment. 24 (b) Upon request, a hearing may be public or private at the discretion of the 25 certified employee or applicant. 26 (c) The hearing shall be conducted before the full board, a panel of three (3) 27 UNOFFICIAL COPY 24 RS BR 342 Page 63 of 110 XXXX 1/22/2024 9:18 AM Jacketed members of the board, or a person appointed as hearing officer by the board 1 pursuant to KRS 13B.030(1). 2 (6) The Education Professional Standards Board or its chair may take emergency action 3 pursuant to KRS 13B.125. Emergency action shall not affect a certificate holder's 4 contract or tenure rights in the school district. 5 (7) If the Education Professional Standards Board substantiates that sexual contact 6 occurred between a certified employee and a student or minor, the employee's 7 certificate may be revoked or suspended with mandatory treatment of the employee 8 as prescribed by the Education Professional Standards Board. The Education 9 Professional Standards Board may require the employee to pay a specified amount 10 for mental health services for the student or minor which are needed as a result of 11 the sexual contact. 12 (8) At any time during the investigative or hearing processes, the board may enter into 13 an agreed order or accept an assurance of voluntary compliance with the certificate 14 holder. 15 (9) The board may reconsider, modify, or reverse its decision on any disciplinary 16 action. 17 (10) Suspension of a certificate shall be for a specified period of time, not to exceed two 18 (2) years. 19 (a) At the conclusion of the specified period, upon demonstration of compliance 20 with any educational requirements and the terms set forth in the agreed order, 21 the certificate shall be reactivated. 22 (b) A suspended certificate is subject to expiration and termination. 23 (11) Revocation of a certificate is a permanent forfeiture. The board shall establish the 24 minimum period of time before an applicant can apply for a new certificate. 25 (a) At the conclusion of the specified period, and upon demonstration of 26 compliance with any educational requirements and the terms set forth in the 27 UNOFFICIAL COPY 24 RS BR 342 Page 64 of 110 XXXX 1/22/2024 9:18 AM Jacketed agreed order, the applicant shall bear the burden of proof to show that he or 1 she is again fit for practice. 2 (b) The board shall have discretion to impose conditions that it deems reasonably 3 appropriate to ensure the applicant's fitness and the protection of public 4 safety. Any conditions imposed by the board shall address or apply to only 5 that time period after the revocation of the certificate. 6 (12) An appeal from any final order of the Education Professional Standards Board shall 7 be filed in Franklin Circuit Court in accordance with KRS Chapter 13B. 8 Section 12. KRS 164.7885 is amended to read as follows: 9 (1) Not later than August 1, 1999, and each June 30 thereafter, each Kentucky high 10 school shall submit to the authority, a compiled list of all high school students 11 during the academic year. A high school shall report the grade point average of an 12 eligible high school student pursuant to KRS 164.7874 by January 15 following the 13 end of the fall academic term in which the student completed the high school 14 graduation requirements. The list shall identify the high school and shall contain 15 each high school student's name, date of birth[Social Security number], address, 16 grade point average for the academic year, expected or actual graduation date, 17 highest ACT score, family eligibility status for free or reduced-price lunch, and 18 each AP, Cambridge Advanced International, or IB examination score. The Gatton 19 Academy of Mathematics and Science in Kentucky, the Craft Academy for 20 Excellence in Science and Mathematics, and the high school of a model and 21 practice school under KRS 164.380 shall report the data on its students to the 22 authority. The list need not contain the ACT, AP, Cambridge Advanced 23 International, or IB if the authority receives the scores directly from the testing 24 services. The authority shall notify each eligible high school student of his or her 25 Kentucky educational excellence scholarship award earned each academic year. 26 The authority shall determine the final Kentucky educational excellence scholarship 27 UNOFFICIAL COPY 24 RS BR 342 Page 65 of 110 XXXX 1/22/2024 9:18 AM Jacketed and supplemental award based upon the actual final grade point average, highest 1 ACT score, and qualifying AP, Cambridge Advanced International, or IB scores 2 and shall notify each eligible twelfth-grade high school student of the final 3 determination. The authority shall make available a list of eligible high school and 4 postsecondary students to participating institutions. 5 (2) The authority shall provide data access only to the Kentucky Longitudinal Data 6 System and to those participating institutions that have either received an admission 7 application from an eligible high school or postsecondary student or have been 8 listed by the eligible high school or postsecondary student on the Free Application 9 For Federal Student Aid. 10 (3) For each eligible postsecondary student enrolling in a participating institution after 11 July 1, 1999, the participating institution shall verify to the authority: 12 (a) The student's initial eligibility for a Kentucky educational excellence 13 scholarship, Kentucky educational excellence scholarship and supplemental 14 award, or supplemental award only pursuant to KRS 164.7879(3)(d) through 15 the comprehensive list compiled by the authority or an alternative source 16 satisfactory to the authority; 17 (b) The student's highest ACT score attained by the date of graduation from high 18 school, provided that the participating institution need not report the ACT 19 score if the authority receives the ACT score directly from the testing 20 services; 21 (c) The eligible postsecondary student's full-time or part-time enrollment status at 22 the beginning of each academic term; and 23 (d) The eligible postsecondary student's cumulative grade point average after the 24 completion of each award period. 25 (4) Each participating institution shall submit to the authority a report, in a form 26 satisfactory to the authority, of all eligible postsecondary students enrolled for that 27 UNOFFICIAL COPY 24 RS BR 342 Page 66 of 110 XXXX 1/22/2024 9:18 AM Jacketed academic term. Kentucky educational excellence scholarships and supplemental 1 awards shall be disbursed by the authority to each eligible postsecondary student 2 attending a participating institution during the academic term within thirty (30) days 3 after receiving a satisfactory report. 4 (5) The Kentucky educational excellence scholarship and the supplemental award shall 5 not be reduced, except as provided in KRS 164.7881(4). 6 (6) Kentucky educational excellence scholarships and supplemental awards shall not be 7 awarded or disbursed to any eligible postsecondary students who are: 8 (a) In default on any loan under Title IV of the federal act; or 9 (b) Liable for any amounts that exceed annual or aggregate limits on any loan 10 under Title IV of the federal act; or 11 (c) Liable for overpayment of any grant or loan under Title IV of the federal act; 12 or 13 (d) In default on any obligation to the authority under any programs administered 14 by the authority until financial obligations to the authority are satisfied, except 15 that ineligibility may be waived by the authority for cause. 16 (7) Notwithstanding the provisions of KRS 164.753, the authority may promulgate 17 administrative regulations for the administration of Kentucky educational 18 excellence scholarships and supplemental awards under the provisions of KRS 19 164.7871 to 164.7885 and KRS 164.7889. 20 Section 13. KRS 174.450 is amended to read as follows: 21 (1) As used in this section, "municipal solid waste transportation vehicle" means any 22 truck, automobile, tractor, or other self-propelled vehicle not operated or driven on 23 fixed rails or track used in the transportation of municipal solid waste; but does not 24 include a vehicle used to transport municipal solid waste from a residence if the 25 vehicle is owned or leased by an individual who lives in the residence, or a vehicle 26 that is ten thousand (10,000) pounds or less. 27 UNOFFICIAL COPY 24 RS BR 342 Page 67 of 110 XXXX 1/22/2024 9:18 AM Jacketed (2) This section shall not apply to a vehicle used exclusively on private roads or to 1 transport municipal solid waste within the boundaries of or to real property owned 2 or leased by the generator of the municipal solid waste. 3 (3) This section shall apply to both publicly and privately-owned municipal solid waste 4 transportation vehicles. 5 (4) No person shall operate a municipal solid waste transportation vehicle within the 6 Commonwealth without first having obtained a license from the Transportation 7 Cabinet to operate a municipal solid waste transportation vehicle pursuant to 8 regulations promulgated by the cabinet. 9 (5) No person shall cause municipal solid waste to be transported by a municipal solid 10 waste transportation vehicle which has not been licensed by the cabinet as required 11 by this section. 12 (6) The cabinet shall establish a municipal solid waste transportation vehicle licensing 13 program. No more than one (1) license shall be required for any single business 14 entity. An applicant shall file an application with the cabinet containing such 15 information in such form as the cabinet requires, to include: 16 (a) Name, home address, and date of birth[Social Security number] of a natural 17 person who is the applicant or an officer of the applicant; 18 (b) Name and address of the principal place of business of the applicant; 19 (c) Vehicle identification number of each vehicle; licensing jurisdiction and 20 registration number of each vehicle; type and gross weight rating or 21 combination weight rating of each vehicle to be operated under the license; 22 (d) A consent-to-service jurisdiction document executed in accordance with KRS 23 Chapter 224; and 24 (e) The applicant's Kentucky highway use tax identification number required by 25 KRS 138.665 or proof that the applicant is not under the purview of KRS 26 138.665, and either the applicant's Interstate Commerce Commission 27 UNOFFICIAL COPY 24 RS BR 342 Page 68 of 110 XXXX 1/22/2024 9:18 AM Jacketed identification number or United States Department of Transportation 1 identification number. 2 (7) A copy of the municipal solid waste transportation license, which is specific to each 3 individual vehicle operated by the licensee, issued by the cabinet under this section: 4 (a) Shall be carried at all times on any municipal solid waste transportation 5 vehicle operating under the license; and 6 (b) Is valid for a period specified by the cabinet not to exceed three (3) years from 7 the date of issuance. 8 (8) Each application for a license to operate a municipal solid waste transportation 9 vehicle or vehicles shall be submitted with a registration fee equal to the product of 10 ten dollars ($10) per year multiplied by the number of municipal solid waste 11 transportation vehicles to be operated in the Commonwealth by the applicant. A 12 license shall be amended annually if the number of municipal solid waste 13 transportation vehicles operated by the applicant increases. The cabinet may 14 promulgate by regulation a schedule for the annual amendment of municipal solid 15 waste transportation licenses to add vehicles covered. Additional vehicles acquired 16 or leased by the licensee after the beginning of the licensing year established by the 17 Transportation Cabinet may be operated under an existing license, without 18 amendment, until the annual amendment date specified by the cabinet. However, 19 the licensee shall obtain a vehicle specific copy of the license from the 20 Transportation Cabinet prior to using the vehicle in Kentucky to transport 21 municipal solid waste. The registration fee for additional vehicles shall be prorated 22 according to the amount of time remaining in the license period as of the 23 amendment date. 24 (9) The cabinet shall promulgate regulations to implement this section within one 25 hundred eighty (180) days after February 26, 1991. The regulations shall include a 26 procedure to allow the licensing of a vehicle in an emergency and shall require the 27 UNOFFICIAL COPY 24 RS BR 342 Page 69 of 110 XXXX 1/22/2024 9:18 AM Jacketed cabinet to issue licenses and vehicle tags within thirty (30) days of receipt of an 1 application. No municipal solid waste transportation vehicle shall be required to 2 obtain a license until at least ninety (90) days after the effective date of regulations 3 promulgated by the cabinet. 4 (10) Within ninety (90) days after February 26, 1991, all municipal solid waste 5 transportation vehicles shall display a placard which indicates that the vehicle is 6 transporting municipal solid waste. A vehicle shall be in compliance with this 7 subsection (10) if the placard has the words "SOLID WASTE" clearly printed in 8 English and is clearly displayed or printed on the cab, container, or rear of the 9 vehicle. 10 (11) This section shall not apply to a vehicle, or its operator, owned and used by a 11 generator hauling waste generated by the generator to a municipal solid waste 12 disposal facility or to a vehicle or person operating the vehicle which is hauling 13 waste of a waste generator disposing of waste in its own solid waste facility. 14 (12) The registration fees generated by this section shall be placed in a trust and agency 15 account and used exclusively by the Transportation Cabinet for the administration 16 and enforcement of this section. 17 Section 14. KRS 186.070 is amended to read as follows: 18 (1) (a) Every manufacturer of, or dealer in, motor vehicles in this state shall register 19 with each county clerk in which his or her principal office or place of business 20 and branch office, sub-agent, or agency is located, and pay an annual 21 registration fee of twenty-five dollars ($25) to each clerk. 22 (b) Upon receipt of the twenty-five dollar ($25) fee, the clerk shall issue the 23 manufacturer or dealer a certificate of registration and one (1) dealer plate. 24 Every manufacturer or dealer registered under this section shall be furnished 25 additional dealer's plates upon the payment of fourteen dollars and fifty cents 26 ($14.50) for each additional plate requested. Three dollars ($3) shall be 27 UNOFFICIAL COPY 24 RS BR 342 Page 70 of 110 XXXX 1/22/2024 9:18 AM Jacketed retained by the clerk for each additional plate issued. 1 (c) A motor vehicle bearing dealer's plates may be used on the highways only by 2 the following people: 3 1. A licensed dealer, bona fide salesman, or employee of the dealer; 4 2. A manufacturer or dealer licensed pursuant to the laws of this state 5 transporting a motor vehicle to his or her place of retail business from a 6 manufacturer or wholesale dealer in motor vehicles; and 7 3. A bona fide customer of a licensed dealer, or the customer's employees 8 when a motor vehicle is being demonstrated. This provision shall be 9 limited to one (1) trip or demonstration to the same prospective 10 customer. 11 (d) License plates issued under this section shall annually expire on December 31. 12 (e) As used in this section, "bona fide salesman or employee" means a licensed 13 salesman, or an employee, who is actively engaged in and devotes a 14 substantial part of his or her time to the conduct of the dealer business. 15 (f) A vehicle bearing a dealer plate, except when the vehicle is being transported 16 to a dealer's place of business from a manufacturer, shall have, in the case of a 17 new motor vehicle, a "monroney" sticker attached to the vehicle, or, in the 18 case of a used motor vehicle, a Federal Trade Commission buyer's guide 19 sticker attached to the vehicle. 20 (2) (a) Each manufacturer and dealer when making application for dealer's plates 21 shall file a verified statement on at least a quarterly basis with the county 22 clerk, giving the name, address, and driver's license[Social Security] number 23 of each dealer, and each bona fide salesman or employee entitled to the use of 24 the plates for demonstration purposes only. When any bona fide registered 25 salesman or employee is no longer employed by the manufacturer or dealer, 26 the manufacturer or dealer shall file an amended verified statement with the 27 UNOFFICIAL COPY 24 RS BR 342 Page 71 of 110 XXXX 1/22/2024 9:18 AM Jacketed clerk stating that fact, and when any additional salesmen or employees are 1 employed, an amended verified statement showing their names and addresses 2 shall be filed with the clerk so that the records in the clerk's office will at all 3 times show the bona fide salesmen and employees actually in the service of 4 the registered dealer or manufacturer; 5 (b) The names of each dealer and each bona fide salesman and employee shall be 6 entered by the clerk into the AVIS where it will be readily available to law 7 enforcement agencies. The information shall be entered by the clerk 8 immediately after each quarterly filing of the verified statement by the dealer; 9 (c) Any person who is hired as a driver by a motor vehicle dealer for the limited, 10 specific purpose of transporting a motor vehicle to or from that dealer's place 11 of business may, for that purpose only, operate a motor vehicle bearing a 12 dealer plate. For the purpose of that operation, the dealer shall provide to that 13 driver a permit, provided by the Transportation Cabinet. The permit shall be 14 valid for five (5) days from the date of issuance. A fee shall not be charged for 15 the permit. 16 (3) The license of any dealer or manufacturer may be revoked by the Transportation 17 Cabinet for the violation of any of the provisions of this section. The manufacturer 18 or dealer shall be given an opportunity to be heard in defense of the charge that he 19 or she has violated any of the provisions of this section, and the Transportation 20 Cabinet shall promulgate administrative regulations governing the revocation 21 procedure. A manufacturer or dealer whose license is revoked may appeal the 22 revocation to the Board of Tax Appeals pursuant to KRS 49.220. The manufacturer 23 or dealer whose license has been suspended shall be prohibited from engaging in 24 the business of selling or buying motor vehicles. The license of any manufacturer or 25 dealer shall be revoked for a period of one (1) year and his or her dealer's plates 26 canceled if he or she violates any of the provisions of this section during this 27 UNOFFICIAL COPY 24 RS BR 342 Page 72 of 110 XXXX 1/22/2024 9:18 AM Jacketed suspension period or has been suspended by the cabinet more than twice for 1 violations of this section. At the end of the revocation or suspension period, the 2 manufacturer or dealer whose license has been revoked or suspended and dealer's 3 plates canceled may follow the provisions of this section and again be registered 4 and secure dealer's plates from the clerk. 5 (4) The Transportation Cabinet shall be responsible for the issuance and cancellation of 6 the plates provided for in this section, and the motor vehicle commission shall be 7 responsible for the enforcement of this section, except for the normal 8 responsibilities of law enforcement agencies. The cabinet may promulgate 9 administrative regulations pertaining to the administration of this section. 10 Section 15. KRS 198B.658 is amended to read as follows: 11 (1) An applicant for a master heating, ventilation, and air conditioning contractor's 12 license shall: 13 (a) Be at least eighteen (18) years of age; 14 (b) Be a citizen of the United States or be a resident alien who is authorized to do 15 work in the United States; 16 (c) 1. Have been regularly and principally employed or engaged in heating, 17 ventilation, and air conditioning trades as a journeyman heating, 18 ventilation, and air conditioning mechanic for not less than two (2) years 19 under the direction and supervision of a master heating, ventilation, and 20 air conditioning contractor; 21 2. Have been regularly and principally employed or engaged in the practice 22 of heating, ventilation, and air conditioning contracting as a master 23 heating, ventilation, and air conditioning contractor, or equivalent 24 thereof, for not less than two (2) years in Kentucky or in a jurisdiction 25 other than Kentucky, as demonstrated by verifiable documentation; or 26 3. Have been regularly and principally licensed and employed as a 27 UNOFFICIAL COPY 24 RS BR 342 Page 73 of 110 XXXX 1/22/2024 9:18 AM Jacketed mechanical engineer in the Commonwealth of Kentucky, or a 1 jurisdiction other than Kentucky, for not less than two (2) years, as 2 demonstrated by verifiable documentation; 3 (d) Have passed an examination prescribed by the department to determine the 4 applicant's competency to practice heating, ventilation, and air conditioning 5 contracting; and 6 (e) Have paid a fee as established in administrative regulations promulgated by 7 the department. 8 (2) An applicant for a journeyman heating, ventilation, and air conditioning mechanic's 9 license shall: 10 (a) Be at least eighteen (18) years of age; 11 (b) Be a citizen of the United States or be a resident alien who is authorized to do 12 work in the United States; 13 (c) 1. Have been regularly and principally employed or engaged in heating, 14 ventilation, and air conditioning trades for not less than two (2) years 15 under the direction and supervision of a master heating, ventilation, and 16 air conditioning contractor; or 17 2. Have been regularly and principally employed or engaged in the 18 performance of heating, ventilation, and air conditioning work for not 19 less than two (2) years in Kentucky or in a jurisdiction other than 20 Kentucky, as demonstrated by verifiable documentation; 21 (d) Have passed an examination prescribed by the department to determine the 22 applicant's competency to install, maintain, and repair heating and cooling 23 systems, heating and cooling service, burner service, and hydronic systems; 24 and 25 (e) Have paid a fee as established in administrative regulations promulgated by 26 the department. 27 UNOFFICIAL COPY 24 RS BR 342 Page 74 of 110 XXXX 1/22/2024 9:18 AM Jacketed (3) If an applicant has obtained, while exempt from licensure under 198B.674(2), (7), 1 (8), (10), (13), or (14), work experience that the department determines to be 2 equivalent to the requirements of subsection (1)(c) or (2)(c) of this section, that 3 experience may be considered as equivalent to one (1) year of employment toward 4 the licensure requirements for a master heating, ventilation, and air conditioning 5 contractor or journeyman heating, ventilation, and air conditioning mechanic, as 6 applicable, not to exceed one (1) year. 7 (4) (a) The department shall issue an apprentice heating, ventilation, and air 8 conditioning mechanic's certificate to any person who registers as an 9 apprentice with the department. 10 (b) The department shall establish by administrative regulation the minimum 11 number of hours of experience required by apprentices and shall maintain an 12 apprentice register to credit an apprentice for hours worked under the 13 supervision of a master heating, ventilation, and air conditioning contractor 14 and journeyman heating, ventilation, and air conditioning mechanic. 15 Experience gained under the supervision of a Kentucky licensed master 16 heating, ventilation, and air conditioning contractor while registered as an 17 apprentice with the Education and Labor Cabinet, Department of Workforce 18 Development, in cooperation with the United States Department of Labor, 19 Bureau of Apprenticeship and Training shall be accepted toward the two (2) 20 year experience requirement for a journeyman heating, ventilation, and air 21 conditioning mechanic license. 22 (c) The apprentice register shall include the name, address[, Social Security 23 number], employer, and dates of employment of the apprentice. 24 (d) The apprentice shall notify the department in writing of any change in address 25 or employer. 26 (e) Apprentices and pre-apprentices shall not be required to pay a fee to obtain a 27 UNOFFICIAL COPY 24 RS BR 342 Page 75 of 110 XXXX 1/22/2024 9:18 AM Jacketed certificate of registration or to renew a registration. 1 (5) The satisfactory completion of one (1) academic year of a department-approved 2 curriculum or one (1) year of professional training in heating, ventilation, and air 3 conditioning work may be considered as equivalent to one (1) year of employment 4 toward the licensure requirements for a journeyman heating, ventilation, and air 5 conditioning mechanic, not to exceed one (1) year. 6 (6) The satisfactory completion of one (1) academic year of teaching experience in a 7 department-approved or state-approved technical education program in heating, 8 ventilation, and air conditioning shall be considered as equivalent to one (1) year of 9 employment, as required by subsection (1)(c) or (2)(c) of this section. No more than 10 one (1) year of approved teaching experience may be used in meeting the 11 requirements of subsection (1)(c) or (2)(c) of this section. 12 Section 16. KRS 199.640 is amended to read as follows: 13 (1) Any facility or agency seeking to conduct, operate, or maintain any child-caring 14 facility or child-placing agency shall first obtain a license to conduct, operate, or 15 maintain the facility or agency from the cabinet. 16 (2) The cabinet shall: 17 (a) Develop standards, as provided in subsection (5) of this section, which must 18 be met by any facility or agency seeking to be licensed to conduct, operate, or 19 maintain a child-caring facility or child-placing agency; 20 (b) Issue licenses to any facility or agency found to meet established standards 21 and revoke or suspend a license after a hearing in any case that a facility or 22 agency holding a license is determined to have substantially failed to conform 23 to the requirements of the standards; 24 (c) Establish and follow procedures designed to ensure that any facility or agency 25 licensed to conduct, operate, or maintain a child-caring facility or child-26 placing agency complies with the requirements of the standards on an ongoing 27 UNOFFICIAL COPY 24 RS BR 342 Page 76 of 110 XXXX 1/22/2024 9:18 AM Jacketed basis. 1 (3) Licenses shall be issued for a period of one (1) year from date of issue unless 2 revoked by the cabinet. Each licensed facility or agency shall be visited and 3 inspected at least one (1) time each year by a person authorized by the cabinet and 4 meeting specific qualifications established by the secretary of the cabinet in an 5 administrative regulation. A complete report of the visit and inspection shall be 6 filed with the cabinet. 7 (4) Each license issued shall specify the type of care or service the licensee is 8 authorized to perform. The cabinet may promulgate administrative regulations to 9 establish fees that shall not exceed costs of the program to the cabinet, for the 10 proper administration of licensure. The fees collected by the secretary shall be 11 deposited in the State Treasury and credited to a revolving fund account for the 12 purpose of carrying out the provisions of this section. The balance of said account 13 shall lapse to the general fund at the end of each biennium. 14 (5) (a) The secretary shall promulgate administrative regulations establishing basic 15 standards of care and service for child-caring facilities and child-placing 16 agencies relating to the health and safety of all children in the care of the 17 facility or agency, the basic components for a quality program, as referenced 18 below, and any other factors as may be necessary to promote the welfare of 19 children cared for or placed by the agencies and facilities. Standards 20 established may vary depending on the capacity of the agency or facility 21 seeking licensure. These administrative regulations shall establish standards 22 that ensure that: 23 1. The treatment program offered by the facility or agency is directed 24 toward child safety, improved child functioning, improved family 25 functioning, and continuity and permanence for the child; 26 2. The facility or agency has on staff, or has contracted with, individuals 27 UNOFFICIAL COPY 24 RS BR 342 Page 77 of 110 XXXX 1/22/2024 9:18 AM Jacketed who are qualified to meet the treatment needs of the children being 1 served, including their psychological and psychiatric needs; 2 3. The facility or agency has procedures in place to ensure that its staff 3 receives ongoing training and that all staff members who are required to 4 do so meet all regional and national standards; 5 4. The facility or agency develops an integrated, outcomes-based treatment 6 plan that meets the health, mental health, education, safety, and security 7 needs of each child in its care; 8 5. The facility or agency has procedures in place to include parents, family, 9 and other caregivers in a child's treatment program; 10 6. The facility or agency has procedures in place whereby it evaluates its 11 programs on a quarterly basis and documents changes in the program if 12 the results of the review indicate a change is needed; 13 7. The facility or agency makes available quality programs for substance 14 abuse prevention and treatment with providers licensed under KRS 15 Chapter 222 as part of its treatment services; 16 8. The facility or agency initiates discharge planning at admission and 17 provides sufficient aftercare; and 18 9. The facility or agency has written policies and procedures in place that 19 outline the structure and objectives of cooperative relationships with the 20 community within which it is located and the local school district, 21 including outreach activities to be undertaken by the facility or agency 22 to both develop and maintain those cooperative relationships. 23 (b) The secretary shall promulgate administrative regulations establishing 24 recordkeeping and reporting requirements and standards for licensed agencies 25 and facilities that recognize the electronic storage and retrieval of information 26 for those facilities that possess the necessary technology and that include, at a 27 UNOFFICIAL COPY 24 RS BR 342 Page 78 of 110 XXXX 1/22/2024 9:18 AM Jacketed minimum, the following information relating to children in the care of the 1 agency or facility: 2 1. The name, date of birth[age, social security number], county of origin, 3 and all former residences of the child; 4 2. The names, residences, and occupations, if available, of the child's 5 parents; 6 3. The date on which the child was received by the agency or facility; the 7 date on which the child was placed in a foster home or made available 8 for adoption; and the name, occupation, and residence of any person 9 with whom a child is placed; and 10 4. A brief and continuing written narrative history of each child covering 11 the period during which the child is in the care of the agency or facility. 12 (c) The secretary may promulgate administrative regulations creating separate 13 licensure standards for different types of facilities. 14 (d) The secretary shall promulgate administrative regulations to establish 15 practices and procedures for the inspection of child-caring facilities and child-16 placing agencies. These administrative regulations shall establish a uniform 17 reporting mechanism that includes guidelines for enforcement. 18 (6) Any administrative regulations promulgated pursuant to KRS Chapter 13A to 19 govern services provided by church-related privately operated child-caring agencies 20 or facilities shall not prohibit the use of reasonable corporal physical discipline 21 which complies with the provisions of KRS 503.110(1), including the use of 22 spanking or paddling, as a means of punishment, discipline, or behavior 23 modification and shall prohibit the employment of persons convicted of any sexual 24 offense with any child-caring facility or child-placing agency. 25 (7) All records regarding children or facts learned about children and their parents and 26 relatives by any licensed agency or facility shall be deemed confidential in the same 27 UNOFFICIAL COPY 24 RS BR 342 Page 79 of 110 XXXX 1/22/2024 9:18 AM Jacketed manner and subject to the same provisions as similar records of the cabinet. The 1 information thus obtained shall not be published or be open for public inspection, 2 except to authorized employees of: 3 (a) The cabinet or of such licensed agency or facility in performance of their 4 duties; and 5 (b) A school or local school district in which a child is enrolling or currently 6 enrolled, in order to identify and serve the educational needs of the child, in 7 accordance with KRS 199.802. 8 Section 17. KRS 213.046 is amended to read as follows: 9 (1) A certificate of birth for each live birth which occurs in the Commonwealth shall be 10 filed with the state registrar within five (5) working days after such birth and shall 11 be registered if it has been completed and filed in accordance with this section and 12 applicable administrative regulations. No certificate shall be held to be complete 13 and correct that does not supply all items of information called for in this section 14 and in KRS 213.051, or satisfactorily account for their omission except as provided 15 in KRS 199.570(3). If a certificate of birth is incomplete, the local registrar shall 16 immediately notify the responsible person and require that person to supply the 17 missing items, if that information can be obtained. 18 (2) When a birth occurs in an institution or en route thereto, the person in charge of the 19 institution or that person's designated representative, shall obtain the personal data, 20 prepare the certificate, secure the signatures required, and file the certificate as 21 directed in subsection (1) of this section or as otherwise directed by the state 22 registrar within the required five (5) working days. The physician or other person in 23 attendance shall provide the medical information required for the certificate and 24 certify to the fact of birth within five (5) working days after the birth. If the 25 physician or other person in attendance does not certify to the fact of birth within 26 the five (5) working day period, the person in charge of the institution shall 27 UNOFFICIAL COPY 24 RS BR 342 Page 80 of 110 XXXX 1/22/2024 9:18 AM Jacketed complete and sign the certificate. 1 (3) When a birth occurs in a hospital or en route thereto to a woman who is unmarried, 2 the person in charge of the hospital or that person's designated representative shall 3 immediately before or after the birth of a child, except when the mother or the 4 alleged father is a minor: 5 (a) Meet with the mother prior to the release from the hospital; 6 (b) Attempt to ascertain whether the father of the child is available in the hospital, 7 and, if so, to meet with him, if possible; 8 (c) Provide written materials and oral, audio, or video materials about paternity; 9 (d) Provide the unmarried mother, and, if possible, the father, with the voluntary 10 paternity form necessary to voluntarily establish paternity; 11 (e) Provide a written and an oral, audio, or video description of the rights and 12 responsibilities, the alternatives to, and the legal consequences of 13 acknowledging paternity; 14 (f) Provide written materials and information concerning genetic paternity 15 testing; 16 (g) Provide an opportunity to speak by telephone or in person with staff who are 17 trained to clarify information and answer questions about paternity 18 establishment; 19 (h) If the parents wish to acknowledge paternity, require the voluntary 20 acknowledgment of paternity obtained through the hospital-based program be 21 signed by both parents and be authenticated by a notary public; 22 (i) Upon both the mother's and father's request, help the mother and father in 23 completing the affidavit of paternity form; 24 (j) Upon both the mother's and father's request, transmit the affidavit of paternity 25 to the state registrar; and 26 (k) In the event that the mother or the alleged father is a minor, information set 27 UNOFFICIAL COPY 24 RS BR 342 Page 81 of 110 XXXX 1/22/2024 9:18 AM Jacketed forth in this section shall be provided in accordance with Civil Rule 17.03 of 1 the Kentucky Rules of Civil Procedure. 2 If the mother or the alleged father is a minor, the paternity determination shall be 3 conducted pursuant to KRS Chapter 406. 4 (4) The voluntary acknowledgment of paternity and declaration of paternity forms 5 designated by the Vital Statistics Branch shall be the only documents having the 6 same weight and authority as a judgment of paternity. 7 (5) The Cabinet for Health and Family Services shall: 8 (a) Provide to all public and private birthing hospitals in the state written 9 materials in accessible formats and audio or video materials concerning 10 paternity establishment forms necessary to voluntarily acknowledge paternity; 11 (b) Provide copies of a written description in accessible formats and an audio or 12 video description of the rights and responsibilities of acknowledging 13 paternity; and 14 (c) Provide staff training, guidance, and written instructions regarding voluntary 15 acknowledgment of paternity as necessary to operate the hospital-based 16 program. 17 (6) When a birth occurs outside an institution, verification of the birth shall be in 18 accordance with the requirements of the state registrar and a birth certificate shall 19 be prepared and filed by one (1) of the following in the indicated order of priority: 20 (a) The physician in attendance at or immediately after the birth; or, in the 21 absence of such a person, 22 (b) A midwife or any other person in attendance at or immediately after the birth; 23 or, in the absence of such a person, 24 (c) The father, the mother, or in the absence of the father and the inability of the 25 mother, the person in charge of the premises where the birth occurred or of 26 the institution to which the child was admitted following the birth. 27 UNOFFICIAL COPY 24 RS BR 342 Page 82 of 110 XXXX 1/22/2024 9:18 AM Jacketed (7) No physician, midwife, or other attendant shall refuse to sign or delay the filing of a 1 birth certificate. 2 (8) If a birth occurs on a moving conveyance within the United States and the child is 3 first removed from the conveyance in the Commonwealth, the birth shall be 4 registered in the Commonwealth, and the place where the child is first removed 5 shall be considered the place of birth. If a birth occurs on a moving conveyance 6 while in international waters or air space or in a foreign country or its air space and 7 the child is first removed from the conveyance in the Commonwealth, the birth 8 shall be registered in the Commonwealth, but the certificate shall show the actual 9 place of birth insofar as can be determined. 10 (9) The following provisions shall apply if the mother was married at the time of either 11 conception or birth or anytime between conception and birth: 12 (a) If there is no dispute as to paternity, the name of the husband shall be entered 13 on the certificate as the father of the child. The surname of the child shall be 14 any name chosen by the parents; however, if the parents are separated or 15 divorced at the time of the child's birth, the choice of surname rests with the 16 parent who has legal custody following birth. 17 (b) If the mother claims that the father of the child is not her husband and the 18 husband agrees to such a claim and the putative father agrees to the statement, 19 a three (3) way affidavit of paternity may be signed by the respective parties 20 and duly notarized. The state registrar of vital statistics shall enter the name of 21 a nonhusband on the birth certificate as the father and the surname of the child 22 shall be any name chosen by the mother. 23 (c) If a question of paternity determination arises which is not resolved under 24 paragraph (b) of this subsection, it shall be settled by the District Court. 25 (10) The following provisions shall apply if the mother was not married at the time of 26 either conception or birth or between conception and birth or the marital 27 UNOFFICIAL COPY 24 RS BR 342 Page 83 of 110 XXXX 1/22/2024 9:18 AM Jacketed relationship between the mother and her husband has been interrupted for more than 1 ten (10) months prior to the birth of the child: 2 (a) The name of the father shall not be entered on the certificate of birth. The 3 state registrar shall upon acknowledgment of paternity by the father and with 4 consent of the mother pursuant to KRS 213.121, enter the father's name on the 5 certificate. The surname of the child shall be any name chosen by the mother 6 and father. If there is no agreement, the child's surname shall be determined 7 by the parent with legal custody of the child. 8 (b) If an affidavit of paternity has been properly completed and the certificate of 9 birth has been filed accordingly, any further modification of the birth 10 certificate regarding the paternity of the child shall require an order from the 11 District Court. 12 (c) In any case in which paternity of a child is determined by a court order, the 13 name of the father and surname of the child shall be entered on the certificate 14 of birth in accordance with the finding and order of the court. 15 (d) In all other cases, the surname of the child shall be any name chosen by the 16 mother. 17 (11) If the father is not named on the certificate of birth, no other information about the 18 father shall be entered on the certificate. In all cases, the maiden name of the 19 gestational mother shall be entered on the certificate. 20 (12) Any child whose surname was restricted prior to July 13, 1990, shall be entitled to 21 apply to the state registrar for an amendment of a birth certificate showing as the 22 surname of the child, any surname chosen by the mother or parents as provided 23 under this section. 24 (13) The birth certificate of a child born as a result of artificial insemination shall be 25 completed in accordance with the provisions of this section. 26 (14)[ Each birth certificate filed under this section shall include all Social Security 27 UNOFFICIAL COPY 24 RS BR 342 Page 84 of 110 XXXX 1/22/2024 9:18 AM Jacketed numbers that have been issued to the parents of the child. 1 (15)] Either of the parents of the child, or other informant, shall attest to the accuracy of 2 the personal data entered on the certificate in time to permit the filing of the 3 certificate within ten (10) days prescribed in subsection (1) of this section. 4 (15)[(16)] When a birth certificate is filed for any birth that occurred outside an 5 institution, the Cabinet for Health and Family Services shall forward information 6 regarding the need for an auditory screening for an infant and a list of options 7 available for obtaining an auditory screening for an infant. The list shall include the 8 Office for Children with Special Health Care Needs, local health departments as 9 established in KRS Chapter 212, hospitals offering obstetric services, alternative 10 birthing centers required to provide an auditory screening under KRS 216.2970, 11 audiological assessment and diagnostic centers approved by the Office for Children 12 with Special Health Care Needs in accordance with KRS 211.647 and licensed 13 audiologists, and shall specify the hearing methods approved by the Office for 14 Children with Special Health Care Needs in accordance with KRS 216.2970. 15 Section 18. KRS 213.056 is amended to read as follows: 16 (1) If a certificate of birth of a living person born in the Commonwealth has not been 17 filed within the time period as provided in KRS 213.046, a certificate of birth may 18 be filed in accordance with the administrative regulations of the cabinet. The 19 certificate shall be registered subject to such evidentiary requirements as the cabinet 20 shall by regulation prescribe to substantiate the alleged facts of birth. 21 (2) In accordance with the provisions of this section and the administrative regulations 22 established thereunder, the state registrar may issue a record of foreign birth for a 23 person born outside the United States registration area who is subsequently adopted 24 by a Kentucky resident and whose record of birth cannot be obtained from the 25 country of birth. 26 (3) Certificates of birth registered one (1) year or more after the date of birth shall be 27 UNOFFICIAL COPY 24 RS BR 342 Page 85 of 110 XXXX 1/22/2024 9:18 AM Jacketed made on forms prescribed and furnished by the state registrar marked "delayed" and 1 shall show on the face of the certificate the date of the delayed registration. 2 (4) A summary statement of the evidence submitted in support of the delayed 3 registration shall be endorsed on the certificate. 4 (5) The cabinet may refuse to accept any application for a delayed birth certificate or 5 record of foreign birth on which the applicant fails to provide such information as 6 the cabinet may require. 7 [(6) Each birth certificate filed under this section shall include all Social Security 8 numbers that have been issued to the parents of the child.] 9 Section 19. KRS 216.709 is amended to read as follows: 10 (1) Health facilities shall develop an internal reporting system for acts of workplace 11 violence committed against a health care worker, patient, or visitor on the health 12 facility's premises, and shall train health care workers on the proper reporting 13 procedure. 14 (2) Health facilities shall maintain a record of reported acts of workplace violence 15 committed against a health care worker, patient, or visitor on the health facility's 16 premises. Each record shall be kept for five (5) years following the date the act was 17 reported, during which time the record shall be available for inspection by the 18 cabinet upon request. The report shall include: 19 (a) The health facility's name and address; 20 (b) The date, time, and specific location on the health facility's premises where 21 the reported workplace violence occurred; 22 (c) The name, job title, department or ward assignment, and staff identification or 23 date of birth[Social Security number] of the victim; 24 (d) A description of the person against whom the act was committed as: 25 1. A patient; 26 2. A visitor; 27 UNOFFICIAL COPY 24 RS BR 342 Page 86 of 110 XXXX 1/22/2024 9:18 AM Jacketed 3. A health care worker; or 1 4. Other; 2 (e) A description of the person who allegedly committed the violent act as: 3 1. A patient; 4 2. A visitor; 5 3. An employee; or 6 4. Other; 7 (f) A description of the type of workplace violence committed as: 8 1. Harassment, verbal abuse, or other threatening and violent behavior with 9 no physical contact or violence; 10 2. Physical violence resulting in mild soreness, surface abrasions, 11 scratches, or small bruises; 12 3. Physical violence resulting in major soreness, cuts, or large bruises; 13 4. Physical violence resulting in severe lacerations, a bone fracture, or a 14 head injury; or 15 5. Physical violence resulting in loss of limb or death; 16 (g) An identification of any body part injured; 17 (h) A description of any weapon used; 18 (i) The number of health care workers in the vicinity of the act when it occurred; 19 and 20 (j) A description of actions taken by employees of the health facility in response 21 to the act. 22 (3) Health facilities shall develop a procedure to follow up with victims of the reported 23 acts of workplace violence. 24 (4) Health facilities shall provide victims of workplace violence with support which 25 may include access to physical and mental health resources. 26 Section 20. KRS 235.070 is amended to read as follows: 27 UNOFFICIAL COPY 24 RS BR 342 Page 87 of 110 XXXX 1/22/2024 9:18 AM Jacketed (1) Every person seeking a title and registration or renewal registration for operation of 1 a motorboat shall apply to the county clerk of the county as provided in KRS 2 235.050 and make application on a form furnished by the Transportation Cabinet. 3 The application shall contain the full name and signature[, Social Security number 4 or federal tax identification number], citizenship of applicant, date of birth, sex, 5 present resident address, situs for ad valorem tax assessment, the make of the boat, 6 hull identification number (HIN), if any, length, beam, model, and horsepower of 7 motor, maximum capacity, type of hull material, intended use of the boat, and 8 whether the fuel is gasoline, diesel, or other. The application shall state whether the 9 motorboat is equipped with marine toilet facilities and shall state if the marine 10 sanitation device for the toilet is properly operating and properly used for the water 11 body where the motorboat is kept or operated. It shall also state whether the 12 applicant has been previously licensed or registered as an owner, and if so, when 13 and by what state or county, whether any license registration or certificate number 14 has been canceled, suspended, revoked, or refused, and if so, the date of and reason 15 for cancellation, suspension, revocation, or refusal, and such other information as 16 may be required. 17 (2) Every applicant shall submit the motorboat title or registration with the application 18 as required below: 19 (a) If the motorboat is titled in Kentucky, the applicant shall submit the title with 20 the application for title and registration; 21 (b) If the motorboat is registered in Kentucky but has not been titled in Kentucky, 22 the applicant shall submit the certificate of registration with the application 23 for title and registration; 24 (c) If the applicant is applying for a registration renewal, he shall submit the 25 certificate of registration; 26 (d) If the motorboat is titled in another jurisdiction, the applicant shall submit the 27 UNOFFICIAL COPY 24 RS BR 342 Page 88 of 110 XXXX 1/22/2024 9:18 AM Jacketed title with the application for title and registration; 1 (e) If the motorboat is registered in another jurisdiction, but not titled in any 2 jurisdiction, the applicant shall submit the certificate of registration with the 3 application for title and registration; and 4 (f) Vessels holding a United States certificate of documentation shall be exempt 5 from the provisions of this section. 6 (3) Every applicant shall certify that the statements made in the application are true. 7 The clerk shall inform the applicant that making false statements on the application 8 regarding a marine boat toilet may lead to being fined under KRS 235.990. 9 (4) The clerk shall, after determining that the applicant has complied with the law 10 concerning applications, issue a current certificate of registration or renewal 11 thereof. 12 (5) No certificate of registration or renewal thereof for the operation of a motorboat 13 shall be issued, if the motorboat is equipped with toilet facilities but is not equipped 14 with a storage container or treatment or disposal system of a type approved under 15 regulations promulgated pursuant to this chapter. 16 Section 21. KRS 286.10-250 is amended to read as follows: 17 (1) Every title pledge lender shall keep a consecutively numbered record of every title 18 pledge agreement executed. A copy of the title pledge agreement shall be 19 maintained for a period of two (2) years from the date the title pledge agreement 20 was executed, and shall include the following: 21 (a) A clear and accurate description of the titled personal property, including its 22 vehicle identification number, license plate number, year, make, model, type, 23 and color; 24 (b) The date of the title pledge agreement; 25 (c) The amount of the loan made in accordance with the title pledge agreement; 26 (d) The date of maturity of the loan; and 27 UNOFFICIAL COPY 24 RS BR 342 Page 89 of 110 XXXX 1/22/2024 9:18 AM Jacketed (e) The name, date of birth[, Social Security number], and residence address of 1 the pledgor, together with a photocopy of the pledgor's motor vehicle 2 operator's license. 3 (2) The pledgor shall sign the title pledge agreement, and shall be provided with a copy 4 of the agreement. The title pledge agreement shall also be signed by the title pledge 5 lender or the lender's employee or agent. 6 (3) This information shall be maintained at the title pledge office location, approved by 7 the department, and made available for inspection by the law enforcement agencies 8 where the title pledge lender is located during the regular business hours of the title 9 pledge office. 10 Section 22. KRS 304.9-430 is amended to read as follows: 11 (1) Except as provided in this section and KRS 304.52-060, no person shall in this state 12 act as or hold himself, herself, or itself out to be an independent, staff, or public 13 adjuster unless then licensed by the department as an independent, staff, or public 14 adjuster. 15 (2) (a) An individual applying for a resident independent, staff, or public adjuster 16 license shall make an application to the commissioner on the appropriate 17 uniform individual application and in a format prescribed by the 18 commissioner. 19 (b) An applicant under paragraph (a) of this subsection shall declare under 20 penalty of suspension, revocation, or refusal of the license that the statements 21 made in the application are true, correct, and complete to the best of the 22 individual's knowledge and belief. 23 (c) Before approving an application submitted under paragraph (a) of this 24 subsection, the commissioner shall find that the individual to be licensed: 25 1. Is at least eighteen (18) years of age; 26 2. Is eligible to designate Kentucky as the individual's home state; 27 UNOFFICIAL COPY 24 RS BR 342 Page 90 of 110 XXXX 1/22/2024 9:18 AM Jacketed 3. Is trustworthy, reliable, and of good reputation, evidence of which shall 1 be determined through an investigation by the commissioner; 2 4. Has not committed any act that is a ground for probation, suspension, 3 revocation, or refusal of a license as set forth in KRS 304.9-440; 4 5. Has successfully passed the examination for the adjuster license and the 5 applicable line of authority for which the individual has applied; 6 6. Has paid the fees established by the commissioner pursuant to KRS 7 304.4-010; and 8 7. Is financially responsible to exercise the license. 9 (3) (a) To demonstrate financial responsibility, a person applying for a public 10 adjuster license shall obtain a bond or irrevocable letter of credit prior to 11 issuance of a license and shall maintain the bond or letter of credit for the 12 duration of the license with the following limits: 13 1. A surety bond executed and issued by an insurer authorized to issue 14 surety bonds in Kentucky, which bond shall: 15 a. Be in the minimum amount of fifty thousand dollars ($50,000); 16 b. Be in favor of the state of Kentucky; 17 c. Specifically authorize recovery of any person in Kentucky who 18 sustained damages as the result of the public adjuster's erroneous 19 acts, failure to act, conviction of fraud, or conviction for unfair 20 trade practices in his or her capacity as a public adjuster; and 21 d. Not be terminated unless written notice is given to the licensee at 22 least thirty (30) days prior to the termination; or 23 2. An irrevocable letter of credit issued by a qualified financial institution, 24 which letter of credit shall: 25 a. Be in the minimum amount of fifty thousand dollars ($50,000); 26 b. Be subject to lawful levy of execution on behalf of any person to 27 UNOFFICIAL COPY 24 RS BR 342 Page 91 of 110 XXXX 1/22/2024 9:18 AM Jacketed whom the public adjuster has been found to be legally liable as the 1 result of erroneous acts, failure to act, conviction of fraud, or 2 conviction for unfair practices in his or her capacity as a public 3 adjuster; and 4 c. Not be terminated unless written notice is given to the licensee at 5 least thirty (30) days prior to the termination. 6 (b) The commissioner may ask for evidence of financial responsibility at any time 7 the commissioner deems relevant. 8 (c) If the evidence of financial responsibility terminates or becomes impaired, the 9 public adjuster license shall: 10 1. Automatically terminate; and 11 2. Be promptly surrendered to the commissioner without demand. 12 (4) (a) A business entity applying for a resident independent or public adjuster 13 license shall make an application to the commissioner on the appropriate 14 uniform business entity application and in a format prescribed by the 15 commissioner. 16 (b) An applicant under paragraph (a) of this subsection shall declare under 17 penalty of suspension, revocation, or refusal of the license that the statements 18 made in the application are true, correct, and complete to the best of the 19 business entity's knowledge and belief. 20 (c) Before approving an application submitted under paragraph (a) of this 21 subsection, the commissioner shall find that the business entity: 22 1. Is eligible to designate Kentucky as its home state; 23 2. Has designated a licensed independent or public adjuster responsible for 24 the business entity's compliance with the insurance laws and regulations 25 of Kentucky; 26 3. Has not committed an act that is a ground for probation, suspension, 27 UNOFFICIAL COPY 24 RS BR 342 Page 92 of 110 XXXX 1/22/2024 9:18 AM Jacketed revocation, or refusal of an independent or public adjuster's license as 1 set forth in KRS 304.9-440; and 2 4. Has paid the fees established by the commissioner pursuant to KRS 3 304.4-010. 4 (5) For applications made under this section, the commissioner may: 5 (a) Require additional information or submissions from applicants; and 6 (b) Obtain any documents or information reasonably necessary to verify the 7 information contained in an application. 8 (6) Unless denied licensure pursuant to KRS 304.9-440, a person or business entity 9 who has met the requirements of subsections (2) to (5) of this section shall be 10 issued an independent, staff, or public adjuster license. 11 (7) An independent or staff adjuster may qualify for a license in one (1) or more of the 12 following lines of authority: 13 (a) Property and casualty; 14 (b) Workers' compensation; or 15 (c) Crop. 16 (8) Notwithstanding any other provision of this subtitle, an individual who is employed 17 by an insurer to investigate suspected fraudulent insurance claims, but who does not 18 adjust losses or determine claims payments, shall not be required to be licensed as a 19 staff adjuster. 20 (9) A public adjuster may qualify for a license in one (1) or more of the following lines 21 of authority: 22 (a) Property and casualty; or 23 (b) Crop. 24 (10) Notwithstanding any other provision of this subtitle, a license as an independent 25 adjuster shall not be required of the following: 26 (a) An individual who is sent into Kentucky on behalf of an insurer for the sole 27 UNOFFICIAL COPY 24 RS BR 342 Page 93 of 110 XXXX 1/22/2024 9:18 AM Jacketed purpose of investigating or making adjustment of a particular loss resulting 1 from a catastrophe, or for the adjustment of a series of losses resulting from a 2 catastrophe common to all losses; 3 (b) An attorney licensed to practice law in Kentucky, when acting in his or her 4 professional capacity as an attorney; 5 (c) A person employed solely to obtain facts surrounding a claim or to furnish 6 technical assistance to a licensed independent adjuster; 7 (d) An individual who is employed to investigate suspected fraudulent insurance 8 claims, but who does not adjust losses or determine claims payments; 9 (e) A person who: 10 1. Solely performs executive, administrative, managerial, or clerical duties, 11 or any combination thereof; and 12 2. Does not investigate, negotiate, or settle claims with policyholders, 13 claimants, or their legal representatives; 14 (f) A licensed health care provider or its employee who provides managed care 15 services if the services do not include the determination of compensability; 16 (g) A health maintenance organization or any of its employees or an employee of 17 any organization providing managed care services if the services do not 18 include the determination of compensability; 19 (h) A person who settles only reinsurance or subrogation claims; 20 (i) An officer, director, manager, or employee of an authorized insurer, surplus 21 lines insurer, or risk retention group, or an attorney-in-fact of a reciprocal 22 insurer; 23 (j) A United States manager of the United States branch of an alien insurer; 24 (k) A person who investigates, negotiates, or settles claims arising under a life, 25 accident and health, or disability insurance policy or annuity contract; 26 (l) An individual employee, under a self-insured arrangement, who adjusts 27 UNOFFICIAL COPY 24 RS BR 342 Page 94 of 110 XXXX 1/22/2024 9:18 AM Jacketed claims on behalf of the individual's employer; 1 (m) A licensed agent, attorney-in-fact of a reciprocal insurer, or managing general 2 agent of the insurer, to whom claim authority has been granted by an insurer; 3 or 4 (n) 1. A person who: 5 a. Is an employee of a licensed independent adjuster, is an employee 6 of an affiliate that is a licensed independent adjuster, or is 7 supervised by a licensed independent adjuster, if there are no more 8 than twenty-five (25) persons under the supervision of one (1) 9 licensed individual independent adjuster or licensed agent who is 10 exempt from licensure pursuant to paragraph (m) of this 11 subsection; 12 b. Collects claim information from insureds or claimants; 13 c. Enters data into an automated claims adjudication system; and 14 d. Furnishes claim information to insureds or claimants from the 15 results of the automated claims adjudication system. 16 2. For purposes of this paragraph, "automated claims adjudication system" 17 means a preprogrammed computer system designed for the collection, 18 data entry, calculation, and system-generated final resolution of 19 consumer electronic products insurance claims that complies with claim 20 settlement practices pursuant to Subtitle 12 of KRS Chapter 304. 21 (11) Notwithstanding any other provision of this subtitle, a license as a public adjuster 22 shall not be required of the following: 23 (a) An attorney licensed to practice law in Kentucky, when acting in his or her 24 professional capacity as an attorney; 25 (b) A person who negotiates or settles claims arising under a life or health 26 insurance policy or an annuity contract; 27 UNOFFICIAL COPY 24 RS BR 342 Page 95 of 110 XXXX 1/22/2024 9:18 AM Jacketed (c) A person employed only for the purpose of obtaining facts surrounding a loss 1 or furnishing technical assistance to a licensed public adjuster, including 2 photographers, estimators, private investigators, engineers, and handwriting 3 experts; 4 (d) A licensed health care provider or its employee who prepares or files a health 5 claim form on behalf of a patient; or 6 (e) An employee or agent of an insurer adjusting claims relating to food spoilage 7 with respect to residential property insurance in which the amount of coverage 8 for the applicable type of loss is contractually limited to one thousand dollars 9 ($1,000) or less. 10 (12) Notwithstanding any other provision of this subtitle, a license as a staff adjuster 11 shall not be required of an employee or agent of an insurer adjusting claims relating 12 to food spoilage with respect to residential property insurance in which the amount 13 of coverage for the applicable type of loss is contractually limited to one thousand 14 dollars ($1,000) or less. 15 (13) For purposes of this section, except as otherwise provided in subsection (15) of this 16 section, "home state" means any state or territory of the United States or the District 17 of Columbia in which an independent, staff, or public adjuster: 18 (a) Maintains his, her, or its principal place of residence or business; and 19 (b) Is licensed to act as a resident independent, staff, or public adjuster. 20 (14) Temporary registration for emergency independent or staff adjusters shall be issued 21 by the commissioner in the event of a catastrophe declared in Kentucky in the 22 following manner: 23 (a) An insurer shall notify the commissioner by submitting an application for 24 temporary emergency registration of each individual not already licensed in 25 the state where the catastrophe has been declared, who will act as an 26 emergency independent adjuster on behalf of the insurer; 27 UNOFFICIAL COPY 24 RS BR 342 Page 96 of 110 XXXX 1/22/2024 9:18 AM Jacketed (b) A person who is otherwise qualified to adjust claims, but who is not already 1 licensed in the state, may act as an emergency independent or staff adjuster 2 and adjust claims if, within five (5) days of deployment to adjust claims 3 arising from the catastrophe, the insurer notifies the commissioner by 4 providing the following information, in a format prescribed by the 5 commissioner: 6 1. The name of the individual; 7 2. The date of birth[Social Security number] of the individual; 8 3. The name of the insurer that the independent or staff adjuster will 9 represent; 10 4. The catastrophe or loss control number; 11 5. The catastrophe event name and date; and 12 6. Any other information the commissioner deems necessary; and 13 (c) An emergency independent or staff adjuster's registration shall remain in force 14 for a period not to exceed ninety (90) days, unless extended by the 15 commissioner. 16 (15) (a) As used in this subsection, "home state" has the same meaning as in 17 subsection (13) of this section, except that for purposes of this subsection the 18 term includes any state or territory of the United States or the District of 19 Columbia in which an applicant under this subsection is licensed to act as a 20 resident independent, staff, or public adjuster if the state or territory of the 21 applicant's principal place of residence does not issue an independent, staff, or 22 public adjuster license. 23 (b) Unless refused licensure in accordance with KRS 304.9-440, a nonresident 24 person shall receive a nonresident independent, staff, or public adjuster 25 license if: 26 1. The person is currently licensed in good standing as an independent, 27 UNOFFICIAL COPY 24 RS BR 342 Page 97 of 110 XXXX 1/22/2024 9:18 AM Jacketed staff, or public adjuster in his, her, or its home state; 1 2. The person has submitted the proper request for licensure and has paid 2 the fees required by KRS 304.4-010; 3 3. The person has submitted, in a form or format prescribed by the 4 commissioner, the uniform individual application; and 5 4. The person's designated home state issues nonresident independent, 6 staff, or public adjuster licenses to persons of Kentucky on the same 7 basis. 8 (c) The commissioner may: 9 1. Verify an applicant's licensing status through any appropriate database, 10 including the database maintained by the National Association of 11 Insurance Commissioners, its affiliates, or subsidiaries; or 12 2. Request certification of an applicant's good standing. 13 (d) As a condition to the continuation of a nonresident adjuster license, the 14 licensee shall maintain a resident adjuster license in his, her, or its home state. 15 (e) A nonresident adjuster license issued under this subsection shall terminate and 16 be surrendered immediately to the commissioner if the licensee's resident 17 adjuster license terminates for any reason, unless: 18 1. The termination is due to the licensee being issued a new resident 19 independent, staff, or public adjuster license in his, her, or its new home 20 state; and 21 2. The new resident state or territory has reciprocity with Kentucky. 22 Section 23. KRS 342.316 is amended to read as follows: 23 (1) (a) The employer liable for compensation for occupational disease shall be the 24 employer in whose employment the employee was last exposed to the hazard 25 of the occupational disease. During any period in which this section is 26 applicable to a coal mine, an operator who acquired it or substantially all of its 27 UNOFFICIAL COPY 24 RS BR 342 Page 98 of 110 XXXX 1/22/2024 9:18 AM Jacketed assets from a person who was its operator on and after January 1, 1973, shall 1 be liable for, and secure the payment of, the benefits which would have been 2 payable by the prior operator under this section with respect to miners 3 previously employed in the mine if it had not been acquired by such later 4 operator. At the same time, however, this subsection does not relieve the prior 5 operator of any liability under this section. Also, it does not affect whatever 6 rights the later operator might have against the prior operator. 7 (b) The time of the beginning of compensation payments shall be the date of the 8 employee's last injurious exposure to the cause of the disease, or the date of 9 actual disability, whichever is later. 10 (2) The procedure with respect to the giving of notice and determination of claims in 11 occupational disease cases and the compensation and medical benefits payable for 12 disability or death due to the disease shall be the same as in cases of accidental 13 injury or death under the general provisions of this chapter, except that notice of 14 claim shall be given to the employer as soon as practicable after the employee first 15 experiences a distinct manifestation of an occupational disease in the form of 16 symptoms reasonably sufficient to apprise the employee that he or she has 17 contracted the disease, or a diagnosis of the disease is first communicated to him or 18 her, whichever shall first occur. 19 (3) The procedure for filing occupational disease claims shall be as follows: 20 (a) The application for resolution of claim shall set forth the complete work 21 history of the employee with a concise description of injurious exposure to a 22 specific occupational disease, together with the name and addresses of the 23 employer or employers with the approximate dates of employment. The 24 application shall also include at least one (1) written medical report 25 supporting his or her claim. This medical report shall be made on the basis of 26 clinical or X-ray examination performed in accordance with accepted medical 27 UNOFFICIAL COPY 24 RS BR 342 Page 99 of 110 XXXX 1/22/2024 9:18 AM Jacketed standards and shall contain full and complete statements of all examinations 1 performed and the results thereof. The report shall be made by a duly-licensed 2 physician. The commissioner shall promulgate administrative regulations 3 which prescribe the format of the medical report required by this section and 4 the manner in which the report shall be completed. 5 1. For coal-related occupational pneumoconiosis claims, each clinical 6 examination shall include a chest X-ray interpretation by a National 7 Institute of Occupational Safety and Health (NIOSH) certified "B" 8 reader. The chest X-ray upon which the report is made shall be filed 9 with the application as well as spirometric tests when pulmonary 10 dysfunction is alleged. 11 2. For other compensable occupational pneumoconiosis claims, each 12 clinical examination shall include a chest X-ray examination and 13 appropriate pulmonary function tests. 14 (b) To be admissible, medical evidence offered in any proceeding under this 15 chapter for determining a claim for occupational pneumoconiosis resulting 16 from exposure to coal dust shall comply with accepted medical standards as 17 follows: 18 1. Chest X-rays shall be of acceptable quality with respect to exposure and 19 development and shall be indelibly labeled with the date of the X-ray 20 and the name and date of birth[Social Security number] of the claimant. 21 Physicians' reports of X-ray interpretations shall: identify the claimant 22 by name and date of birth[Social Security number]; include the date of 23 the X-ray and the date of the report; classify the X-ray interpretation 24 using the latest ILO Classification and be accompanied by a completed 25 copy of the latest ILO Classification report. Only interpretations by 26 National Institute of Occupational Safety and Health (NIOSH) certified 27 UNOFFICIAL COPY 24 RS BR 342 Page 100 of 110 XXXX 1/22/2024 9:18 AM Jacketed "B" readers shall be admissible. 1 2. Spirometric testing shall be conducted in accordance with the standards 2 recommended in the "Guides to the Evaluation of Permanent 3 Impairment" and the 1978 ATS epidemiology standardization project 4 with the exception that the predicted normal values for lung function 5 shall not be adjusted based upon the race of the subject. The FVC or the 6 FEV1 values shall represent the largest of such values obtained from 7 three (3) acceptable forced expiratory volume maneuvers as corrected to 8 BTPS (body temperature, ambient pressure and saturated with water 9 vapor at these conditions) and the variance between the two (2) largest 10 acceptable FVC values shall be either less than five percent (5%) of the 11 largest FVC value or less than one hundred (100) milliliters, whichever 12 is greater. The variance between the two (2) largest acceptable FEV1 13 values shall be either less than five percent (5%) of the largest FEV1 14 value or less than one hundred (100) milliliters, whichever is greater. 15 Reports of spirometric testing shall include a description by the 16 physician of the procedures utilized in conducting such spirometric 17 testing and a copy of the spirometric chart and tracings from which 18 spirometric values submitted as evidence were taken. If it is shown that 19 the spirometric testing is not valid due to inadequate cooperation or poor 20 effort on the part of the claimant, the claimant's right to take or 21 prosecute any proceedings under this chapter shall be suspended until 22 the refusal or obstruction ceases. No compensation shall be payable for 23 the period during which the refusal or obstruction continues. 24 3. The commissioner shall promulgate administrative regulations pursuant 25 to KRS Chapter 13A as necessary to effectuate the purposes of this 26 section. The commissioner shall periodically review the applicability of 27 UNOFFICIAL COPY 24 RS BR 342 Page 101 of 110 XXXX 1/22/2024 9:18 AM Jacketed the spirometric test values contained in the "Guides to the Evaluation of 1 Permanent Impairment" and may by administrative regulation substitute 2 other spirometric test values which are found to be more closely 3 representative of the normal pulmonary function of the coal mining 4 population. 5 4. The procedure for determination of occupational disease claims shall be 6 as follows: 7 a. Immediately upon receipt of an application for resolution of claim, 8 the commissioner shall notify the responsible employer and all 9 other interested parties and shall furnish them with a full and 10 complete copy of the application. 11 b. The commissioner shall assign the claim to an administrative law 12 judge and shall promptly refer the employee to a duly qualified 13 "B" reader physician who is licensed in the Commonwealth and is 14 a board-certified pulmonary specialist as set forth pursuant to KRS 15 342.315 and 342.794(1). The report from this examination shall be 16 provided to all parties of record. The employee shall not be 17 referred by the commissioner for examination within two (2) years 18 following any prior referral for examination for the same disease. 19 c. The commissioner shall develop a procedure to annually audit the 20 performance of physicians and facilities that are selected to 21 perform examinations pursuant to this section. The audit shall 22 include an evaluation of the physician and facility with respect to 23 the timeliness and completeness of the reports and the frequency at 24 which the physician's classification of an X-ray differs from those 25 of the other physicians of that X-ray. The commissioner shall 26 remove a physician or facility from selection consideration if the 27 UNOFFICIAL COPY 24 RS BR 342 Page 102 of 110 XXXX 1/22/2024 9:18 AM Jacketed physician or facility consistently renders incomplete or untimely 1 reports or if the physician's interpretations of X-rays are not in 2 conformity with the readings of other physicians of record at least 3 fifty percent (50%) of the time. The report required under this 4 subdivision shall be provided to the Interim Joint Committee on 5 Economic Development and Workforce Investment on or before 6 July 1, 2019, and on or before July 1 of each year thereafter. 7 d. In coal workers' pneumoconiosis claims, if the physician selected 8 by the commissioner interprets an X-ray as positive for 9 complicated coal workers' pneumoconiosis, the commissioner 10 shall refer the employee to the facility at which the claimant was 11 previously evaluated for a computerized tomography scan in order 12 to verify the findings. The computerized tomography scan shall be 13 interpreted by the facility and a report shall be filed with the 14 commissioner. The employer, insurer, or payment obligor shall 15 pay the cost of the examination pursuant to the medical fee 16 schedule. The administrative law judge may rely upon the findings 17 in the report in accepting or rejecting ILO radiographic evidence 18 of the disease required under KRS 342.732 for benefit 19 determination. 20 e. Within forty-five (45) days following the notice of filing an 21 application for resolution of claim, the employer or carrier shall 22 notify the commissioner and all parties of record of its acceptance 23 or denial of the claim. A denial shall be in writing and shall state 24 the specific basis for the denial. 25 f. The administrative law judge shall conduct such proceedings as 26 are necessary to resolve the claim and shall have authority to grant 27 UNOFFICIAL COPY 24 RS BR 342 Page 103 of 110 XXXX 1/22/2024 9:18 AM Jacketed or deny any relief, including interlocutory relief, to order 1 additional proof, to conduct a benefit review conference, or to take 2 such other action as may be appropriate to resolve the claim. 3 g. Unless a voluntary settlement is reached by the parties, or the 4 parties agree otherwise, the administrative law judge shall issue a 5 written determination within sixty (60) days following a hearing. 6 The written determination shall address all contested issues and 7 shall be enforceable under KRS 342.305. 8 h. Within thirty (30) days of the receipt of the statement for the 9 evaluation, the employer, insurer, or payment obligor shall pay the 10 cost of the examination. Upon notice from the commissioner that 11 an evaluation has been scheduled, the employer, insurer, or 12 payment obligor shall forward the expenses of travel necessary to 13 attend the evaluation at the state employee reimbursement rates to 14 the employee within seven (7) days. However, if the employee has 15 alleged a pulmonary dysfunction but has not filed spirometric 16 evidence as required by paragraph (a) of this subsection at the time 17 the evaluation is scheduled by the commissioner, the employee 18 will be responsible for fifty percent (50%) of the cost of the 19 evaluation. 20 5. The procedure for appeal from a determination of an administrative law 21 judge shall be as set forth in KRS 342.285. 22 (4) (a) The right to compensation under this chapter resulting from an occupational 23 disease shall be forever barred unless a claim is filed with the commissioner 24 within three (3) years after the last injurious exposure to the occupational 25 hazard or after the employee first experiences a distinct manifestation of an 26 occupational disease in the form of symptoms reasonably sufficient to apprise 27 UNOFFICIAL COPY 24 RS BR 342 Page 104 of 110 XXXX 1/22/2024 9:18 AM Jacketed the employee that he or she has contracted the disease, whichever shall last 1 occur; and if death results from the occupational disease within that period, 2 unless a claim therefor be filed with the commissioner within three (3) years 3 after the death; but that notice of claim shall be deemed waived in case of 4 disability or death where the employer, or its insurance carrier, voluntarily 5 makes payment therefor, or if the incurrence of the disease or the death of the 6 employee and its cause was known to the employer. However, the right to 7 compensation for any occupational disease shall be forever barred, unless a 8 claim is filed with the commissioner within five (5) years from the last 9 injurious exposure to the occupational hazard, except that, in cases of 10 radiation disease, asbestos-related disease, or a type of cancer specified in 11 KRS 61.315(11)(b), a claim must be filed within twenty (20) years from the 12 last injurious exposure to the occupational hazard. 13 (b) Income benefits for the disease of pneumoconiosis resulting from exposure to 14 coal dust or death therefrom shall not be payable unless the employee has 15 been exposed to the hazards of such pneumoconiosis in the Commonwealth of 16 Kentucky over a continuous period of not less than two (2) years during the 17 ten (10) years immediately preceding the date of his or her last exposure to 18 such hazard, or for any five (5) of the fifteen (15) years immediately 19 preceding the date of such last exposure. 20 (5) The amount of compensation payable for disability due to occupational disease or 21 for death from the disease, and the time and manner of its payment, shall be as 22 provided for under the general provisions of the Workers' Compensation Act, but: 23 (a) In no event shall the payment exceed the amounts that were in effect at the 24 time of the last injurious exposure; 25 (b) The time of the beginning of compensation payments shall be the date of the 26 employee's last injurious exposure to the cause of the disease, or the date of 27 UNOFFICIAL COPY 24 RS BR 342 Page 105 of 110 XXXX 1/22/2024 9:18 AM Jacketed actual disability, whichever is later; and 1 (c) In case of death where the employee has been awarded compensation or made 2 timely claim within the period provided for in this section, and an employee 3 has suffered continuous disability to the date of his or her death occurring at 4 any time within twenty (20) years from the date of disability, his or her 5 dependents, if any, shall be awarded compensation for his or her death as 6 provided for under the general provisions of the Workers' Compensation Act 7 and in this section, except as provided in KRS 342.750(6). 8 (6) If an autopsy has been performed, no testimony relative thereto shall be admitted 9 unless the employer or its representative has available findings and reports of the 10 pathologist or doctor who performed the autopsy examination. 11 (7) No compensation shall be payable for occupational disease if the employee at the 12 time of entering the employment of the employer by whom compensation would 13 otherwise be payable, falsely represented himself or herself, in writing, as not 14 having been previously disabled, laid-off, or compensated in damages or otherwise, 15 because of the occupational disease, or failed or omitted truthfully to state to the 16 best of his or her knowledge, in answer to written inquiry made by the employer, 17 the place, duration, and nature of previous employment, or, to the best of his or her 18 knowledge, the previous state of his or her health. 19 (8) No compensation for death from occupational disease shall be payable to any 20 person whose relationship to the deceased, which under the provisions of this 21 chapter would give right to compensation, arose subsequent to the beginning of the 22 first compensable disability, except only for after-born children of a marriage 23 existing at the beginning of such disability. 24 (9) Whenever any claimant misconceives his or her remedy and files an application for 25 adjustment of claim under the general provisions of this chapter and it is 26 subsequently discovered, at any time before the final disposition of the cause, that 27 UNOFFICIAL COPY 24 RS BR 342 Page 106 of 110 XXXX 1/22/2024 9:18 AM Jacketed the claim for injury, disability, or death which was the basis for his or her 1 application should properly have been made under the provisions of this section, 2 then the application so filed may be amended in form or substance, or both, to 3 assert a claim for injury, disability, or death under the provisions of this section, and 4 it shall be deemed to have been so filed as amended on the date of the original filing 5 thereof, and compensation may be awarded that is warranted by the whole evidence 6 pursuant to the provisions of this chapter. When amendment of this type is 7 submitted, further or additional evidence may be heard when deemed necessary. 8 Nothing this section contains shall be construed to be or permit a waiver of any of 9 the provisions of this chapter with reference to notice of time for filing of a claim, 10 but notice of filing a claim, if given or done, shall be deemed to be a notice of filing 11 of a claim under provisions of this chapter, if given or done within the time required 12 by this subsection. 13 (10) When an employee has an occupational disease that is covered by this chapter, the 14 employer in whose employment he or she was last injuriously exposed to the hazard 15 of the disease, and the employer's insurance carrier, if any, at the time of the 16 exposure, shall alone be liable therefor, without right to contribution from any prior 17 employer or insurance carrier, except as otherwise provided in this chapter. 18 (11) (a) For claims filed on or before June 30, 2017, income benefits for coal-related 19 occupational pneumoconiosis shall be paid fifty percent (50%) by the 20 Kentucky coal workers' pneumoconiosis fund as established in KRS 342.1242 21 and fifty percent (50%) by the employer in whose employment the employee 22 was last exposed to the hazard of that occupational disease. 23 (b) Income benefits for coal-related occupational pneumoconiosis for claims filed 24 after June 30, 2017, shall be paid by the employer in whose employment the 25 employee was last exposed to the hazards of coal workers' pneumoconiosis. 26 (c) Compensation for all other occupational disease shall be paid by the employer 27 UNOFFICIAL COPY 24 RS BR 342 Page 107 of 110 XXXX 1/22/2024 9:18 AM Jacketed in whose employment the employee was last exposed to the hazards of the 1 occupational disease. 2 (12) A concluded claim for benefits by reason of contraction of coal workers' 3 pneumoconiosis in the severance or processing of coal shall bar any subsequent 4 claim for benefits by reason of contraction of coal workers' pneumoconiosis, unless 5 there has occurred in the interim between the conclusion of the first claim and the 6 filing of the second claim at least two (2) years of employment wherein the 7 employee was continuously exposed to the hazards of the disease in the 8 Commonwealth. 9 Section 24. KRS 367.513 is amended to read as follows: 10 Beginning July 1, 1974, every solicitor shall register annually with the county clerk of the 11 county in which such solicitations are to occur and shall furnish to the county clerk the 12 following information: 13 (1) Whether solicitations shall be made in person or by telephone, and if made in 14 person shall give an adequate description, including state of issue and license 15 number, of any motor vehicle to be used in soliciting sales of printed material, or 16 the telephone number from which telephone solicitations shall be made; 17 (2) His or her name and date of birth[Social Security number]; 18 (3) The mailing address and telephone number of his or her permanent residence; and 19 (4) The name, address and telephone number of the company or organization he or she 20 represents, if any. 21 Section 25. KRS 406.021 is amended to read as follows: 22 (1) Paternity may be determined upon the complaint of the mother, putative father, 23 child, person, or agency substantially contributing to the support of the child. The 24 action shall be brought by the county attorney or by the Cabinet for Health and 25 Family Services or its designee upon the request of complainant authorized by this 26 section. 27 UNOFFICIAL COPY 24 RS BR 342 Page 108 of 110 XXXX 1/22/2024 9:18 AM Jacketed (2) Paternity may be determined by the District Court when the mother and father of 1 the child, either: 2 (a) Submit affidavits in which the mother states the name, and if known the date 3 of birth and Social Security number, of the child's father and the father admits 4 paternity of the child; or 5 (b) Give testimony before the District Court in which the mother states the name, 6 and if known the date of birth and Social Security number, of the child's 7 father and the father admits paternity of the child. 8 (3) If paternity has been determined or has been acknowledged according to the laws of 9 this state, the liabilities of the noncustodial parent may be enforced in the same or 10 other proceedings by the mother, child, person, or agency substantially contributing 11 to the cost of pregnancy, confinement, education, necessary support, or funeral 12 expenses. Bills for testing, pregnancy, and childbirth without requiring third party 13 foundation testimony shall be regarded as prima facie evidence of the amount 14 incurred. An action to enforce the liabilities of the noncustodial parent shall be 15 brought by the county attorney upon the request of such complainant authorized by 16 this section. An action to enforce the liabilities of the cost of pregnancy, birthing 17 costs, child support, and medical support shall be brought by the county attorney or 18 by the Cabinet for Health and Family Services or its designee. 19 (4) Voluntary acknowledgment of paternity pursuant to KRS 213.046 shall create a 20 rebuttable presumption of paternity. 21 (5) Upon a showing of service of process on the defendant and if the defendant has 22 made no pleading to the court or has not moved to enter evidence pursuant to KRS 23 406.091, the court shall order paternity to be established by default. 24 Section 26. KRS 433.900 is amended to read as follows: 25 As used in KRS 433.900 to 433.906, unless the context otherwise requires: 26 (1) "Applicant" means a secondary metals recycler seeking an application for a 27 UNOFFICIAL COPY 24 RS BR 342 Page 109 of 110 XXXX 1/22/2024 9:18 AM Jacketed certificate of registration with the Department of Professional Licensing of the 1 Public Protection Cabinet, as provided in KRS 433.902. If the secondary metals 2 recycler is owned by a corporation, limited liability company, partnership, limited 3 partnership, incorporated association, or any other entity organized for the purpose 4 of engaging in business as a secondary metals recycler, "applicant" means the 5 officers of these entities; 6 (2) "Ferrous metals" means any metal containing significant quantities of iron or steel; 7 (3) "Nonferrous metals" means metal not containing significant quantities of iron, 8 including but not limited to copper, brass, aluminum, bronze, lead, zinc, nickel, and 9 alloys thereof; 10 (4) "Name-based background check" means a statewide search of the centralized 11 criminal history record information system by the Department of Kentucky State 12 Police, utilizing any combination of the name, date of birth, driver's license 13 number, or[and] Social Security number of the applicant; 14 (5) "Restricted metals" means any of the following metal items: 15 (a) Manhole covers; 16 (b) Electric light poles or other utility poles; 17 (c) Guardrails; 18 (d) Street signs, traffic signs, or traffic signals; 19 (e) Whole road tiles; 20 (f) Funeral markers or funeral vases; 21 (g) Railroad equipment, including but not limited to a tie plate, signal house, 22 control box, switch plate, e-clip, or rail tie junction; 23 (h) Condensing or evaporating coils made from copper, aluminum, or aluminum-24 copper, including the tubing or rods from a heating or air conditioning unit 25 that is not from a window air conditioning unit or automobile air conditioning 26 unit; 27 UNOFFICIAL COPY 24 RS BR 342 Page 110 of 110 XXXX 1/22/2024 9:18 AM Jacketed (i) Stainless steel beer kegs; 1 (j) A catalytic converter or any nonferrous part of a catalytic converter unless 2 purchased as part of a vehicle; or 3 (k) Storm drain covers; and 4 (6) (a) "Secondary metals recycler" means: 5 1. Any person who is engaged in the business of gathering or obtaining 6 ferrous or nonferrous metals that have served their original economic 7 purpose or is in the business of performing the manufacturing process 8 by which ferrous metals or nonferrous metals are converted into raw 9 material products consisting of prepared grades and having an existing 10 or potential monetary value; 11 2. Any person who has facilities for performing the manufacturing process 12 by which ferrous metals or nonferrous metals are converted into raw 13 material products consisting of prepared grades and having an existing 14 or potential monetary value, other than by the exclusive use of hand 15 tools, by methods including but not limited to processing, sorting, 16 cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or 17 changing the physical form or chemical content thereof; or 18 3. Any recycler, dealer in junk or metals, dealer in secondhand articles, 19 vendor of bottles or rags, or collector of or dealer in articles found in 20 ashes, garbage, or other refuse, whether a dealer, collector, or vendor 21 operates an established place of business or an itinerant business. 22 (b) "Secondary metals recycler" shall not include a municipal solid waste 23 department or any entity which has been issued a municipal solid waste 24 transporter license by the Kentucky Transportation Cabinet and which gathers 25 or obtains ferrous or nonferrous metals in a vehicle registered in Kentucky to 26 transport solid waste. 27