UNOFFICIAL COPY 25 RS BR 87 Page 1 of 18 XXXX 1/7/2025 2:00 PM Jacketed AN ACT relating to gender transition services. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. A NEW SECTION OF KRS CHAPTER 311 IS CREATED TO 3 READ AS FOLLOWS: 4 (1) As used in this section: 5 (a) "Gender transition services": 6 1. Means surgical, medical, mental health, or pharmaceutical services 7 that are performed for the purpose of altering the appearance of an 8 individual's sex or validating or affirming an individual's perception 9 of the individual's sex, if that appearance or perception is inconsistent 10 with the individual's sex; 11 2. Includes but is not limited to the following surgical, medical, mental 12 health, and pharmaceutical services, if performed for the purposes 13 stated in subparagraph 1. of this paragraph: 14 a. Prescribing or administering any drug, including testosterone, 15 estrogen, or progesterone; 16 b. Performing any sterilizing surgery, including castration, 17 hysterectomy, oophorectomy, orchiectomy, penectomy, and 18 vasectomy; 19 c. Performing any surgery that artificially constructs tissue having 20 the appearance of genitalia differing from the individual's sex, 21 including metoidioplasty, phalloplasty, and vaginoplasty; 22 d. Removing any healthy or non-diseased body part or tissue; and 23 e. Providing any counseling or therapy; and 24 3. Does not include surgical, medical, mental health, or pharmaceutical 25 services provided to an individual: 26 a. Born with a medically verifiable disorder of sex development, 27 UNOFFICIAL COPY 25 RS BR 87 Page 2 of 18 XXXX 1/7/2025 2:00 PM Jacketed including external biological sex characteristics that are 1 irresolvably ambiguous; 2 b. Diagnosed with a disorder of sexual development, if a health 3 care provider has determined, through genetic or biochemical 4 testing, that the individual does not have a sex chromosome 5 structure, sex steroid hormone production, or sex steroid 6 hormone action that is normal for a biological male or biological 7 female; or 8 c. Needing treatment for an infection, injury, disease, or disorder 9 that has been caused or exacerbated by surgical, medical, mental 10 health, or pharmaceutical services performed for the purposes 11 stated in subparagraph 1. of this paragraph; 12 (b) "Health care provider" means any person, agency, clinic, or facility that is: 13 1. Engaged in the rendering of any surgical, medical, mental health, or 14 pharmaceutical services; and 15 2. Licensed, certified, or otherwise regulated in this state or subject to 16 regulation in this state; 17 (c) "Health plan" means any policy, certificate, contract, or plan that offers or 18 provides coverage in this state for surgical, medical, mental health, or 19 pharmaceutical services: 20 1. By direct payment, reimbursement, or otherwise; and 21 2. On a fully insured or self-insured basis or any combination thereof; 22 (d) "Sex" means the biological indication of male and female as evidenced by 23 sex chromosomes, naturally occurring sex hormones, gonads, and 24 nonambiguous internal and external genitalia present at birth; and 25 (e) "State or local government" means this state or any local government of 26 this state, including: 27 UNOFFICIAL COPY 25 RS BR 87 Page 3 of 18 XXXX 1/7/2025 2:00 PM Jacketed 1. Any agency, board, bureau, department, council, commission, 1 committee, government corporation, institution, legislative body, 2 authority, hospital, clinic, political subdivision, instrumentality, or 3 other entity of this state; 4 2. Any city, county, charter county government, urban-county 5 government, consolidated local government, unified local government, 6 public school district, public institution of education, special district, 7 hospital district, or municipal corporation of this state; and 8 3. Any agency, board, bureau, department, council, commission, 9 committee, institution, legislative body, authority, hospital, clinic, 10 instrumentality, or other entity, of an entity referenced in 11 subparagraph 2. of this paragraph. 12 (2) A health care provider shall not seek or accept payment or reimbursement for the 13 rendering of gender transition services to any individual from any of the 14 following: 15 (a) A state or local government, including a: 16 1. Person contracted with a state or local government to provide or 17 administer a health plan; and 18 2. Health plan offered or sponsored by a state or local government; or 19 (b) A federal agency providing or administering Medicare benefits to or on 20 behalf of a Medicare beneficiary, including a: 21 1. Person contracted with a federal agency to provide or administer 22 Medicare benefits in this state; and 23 2. Health plan that provides Medicare benefits that are publicly funded 24 or subsidized. 25 (3) If a licensing, certifying, or other regulatory authority for a health care provider 26 finds, in accordance with the agency's disciplinary and hearing process, that a 27 UNOFFICIAL COPY 25 RS BR 87 Page 4 of 18 XXXX 1/7/2025 2:00 PM Jacketed health care provider has violated this section, the authority shall revoke the 1 health care provider's licensure, certification, or other authorization to provide 2 services in this state. 3 SECTION 2. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 4 READ AS FOLLOWS: 5 (1) As used in this section, "gender transition services" has the same meaning as in 6 Section 1 of this Act. 7 (2) All of the following shall not reimburse or provide benefits or coverage for 8 gender transition services: 9 (a) The Department for Medicaid Services; 10 (b) Any managed care organization contracted to provide Medicaid benefits 11 under this chapter; and 12 (c) The state's medical assistance program. 13 SECTION 3. A NEW SECTION OF KRS 205.6481 TO 205.6495 IS 14 CREATED TO READ AS FOLLOWS: 15 (1) As used in this section: 16 (a) "Gender transition services" has the same meaning as in Section 1 of this 17 Act; and 18 (b) "KCHIP" means: 19 1. The state child health plan known as the Kentucky Children's Health 20 Insurance Program; or 21 2. Any plan submitted for federal approval of a children's health 22 insurance program for Kentucky under Title XXI of the Federal 23 Social Security Act. 24 (2) KCHIP shall not reimburse or provide benefits or coverage for gender transition 25 services. 26 SECTION 4. A NEW SECTION OF SUBTITLE 17A OF KRS CHAPTER 304 27 UNOFFICIAL COPY 25 RS BR 87 Page 5 of 18 XXXX 1/7/2025 2:00 PM Jacketed IS CREATED TO READ AS FOLLOWS: 1 (1) As used in this section, the following have the same meaning as in Section 1 of 2 this Act: 3 (a) "Gender transition services"; 4 (b) "Health plan"; and 5 (c) "State or local government." 6 (2) All of the following shall not reimburse or provide benefits or coverage for 7 gender transition services: 8 (a) A health plan offered or sponsored by a state or local government; and 9 (b) A health plan that provides Medicare benefits that are publicly funded or 10 subsidized. 11 Section 5. KRS 18A.225 is amended to read as follows: 12 (1) (a) The term "employee" for purposes of this section means: 13 1. Any person, including an elected public official, who is regularly 14 employed by any department, office, board, agency, or branch of state 15 government; or by a public postsecondary educational institution; or by 16 any city, urban-county, charter county, county, or consolidated local 17 government, whose legislative body has opted to participate in the state-18 sponsored health insurance program pursuant to KRS 79.080; and who 19 is either a contributing member to any one (1) of the retirement systems 20 administered by the state, including but not limited to the Kentucky 21 Retirement Systems, County Employees Retirement System, Kentucky 22 Teachers' Retirement System, the Legislators' Retirement Plan, or the 23 Judicial Retirement Plan; or is receiving a contractual contribution from 24 the state toward a retirement plan; or, in the case of a public 25 postsecondary education institution, is an individual participating in an 26 optional retirement plan authorized by KRS 161.567; or is eligible to 27 UNOFFICIAL COPY 25 RS BR 87 Page 6 of 18 XXXX 1/7/2025 2:00 PM Jacketed participate in a retirement plan established by an employer who ceases 1 participating in the Kentucky Employees Retirement System pursuant to 2 KRS 61.522 whose employees participated in the health insurance plans 3 administered by the Personnel Cabinet prior to the employer's effective 4 cessation date in the Kentucky Employees Retirement System; 5 2. Any certified or classified employee of a local board of education or a 6 public charter school as defined in KRS 160.1590; 7 3. Any elected member of a local board of education; 8 4. Any person who is a present or future recipient of a retirement 9 allowance from the Kentucky Retirement Systems, County Employees 10 Retirement System, Kentucky Teachers' Retirement System, the 11 Legislators' Retirement Plan, the Judicial Retirement Plan, or the 12 Kentucky Community and Technical College System's optional 13 retirement plan authorized by KRS 161.567, except that a person who is 14 receiving a retirement allowance and who is age sixty-five (65) or older 15 shall not be included, with the exception of persons covered under KRS 16 61.702(2)(b)3. and 78.5536(2)(b)3., unless he or she is actively 17 employed pursuant to subparagraph 1. of this paragraph; and 18 5. Any eligible dependents and beneficiaries of participating employees 19 and retirees who are entitled to participate in the state-sponsored health 20 insurance program; 21 (b) The term "health benefit plan" for the purposes of this section means a health 22 benefit plan as defined in KRS 304.17A-005; 23 (c) The term "insurer" for the purposes of this section means an insurer as defined 24 in KRS 304.17A-005; and 25 (d) The term "managed care plan" for the purposes of this section means a 26 managed care plan as defined in KRS 304.17A-500. 27 UNOFFICIAL COPY 25 RS BR 87 Page 7 of 18 XXXX 1/7/2025 2:00 PM Jacketed (2) (a) The secretary of the Finance and Administration Cabinet, upon the 1 recommendation of the secretary of the Personnel Cabinet, shall procure, in 2 compliance with the provisions of KRS 45A.080, 45A.085, and 45A.090, 3 from one (1) or more insurers authorized to do business in this state, a group 4 health benefit plan that may include but not be limited to health maintenance 5 organization (HMO), preferred provider organization (PPO), point of service 6 (POS), and exclusive provider organization (EPO) benefit plans 7 encompassing all or any class or classes of employees. With the exception of 8 employers governed by the provisions of KRS Chapters 16, 18A, and 151B, 9 all employers of any class of employees or former employees shall enter into 10 a contract with the Personnel Cabinet prior to including that group in the state 11 health insurance group. The contracts shall include but not be limited to 12 designating the entity responsible for filing any federal forms, adoption of 13 policies required for proper plan administration, acceptance of the contractual 14 provisions with health insurance carriers or third-party administrators, and 15 adoption of the payment and reimbursement methods necessary for efficient 16 administration of the health insurance program. Health insurance coverage 17 provided to state employees under this section shall, at a minimum, contain 18 the same benefits as provided under Kentucky Kare Standard as of January 1, 19 1994, and shall include a mail-order drug option as provided in subsection 20 (13) of this section. All employees and other persons for whom the health care 21 coverage is provided or made available shall annually be given an option to 22 elect health care coverage through a self-funded plan offered by the 23 Commonwealth or, if a self-funded plan is not available, from a list of 24 coverage options determined by the competitive bid process under the 25 provisions of KRS 45A.080, 45A.085, and 45A.090 and made available 26 during annual open enrollment. 27 UNOFFICIAL COPY 25 RS BR 87 Page 8 of 18 XXXX 1/7/2025 2:00 PM Jacketed (b) The policy or policies shall be approved by the commissioner of insurance 1 and may contain the provisions the commissioner of insurance approves, 2 whether or not otherwise permitted by the insurance laws. 3 (c) Any carrier bidding to offer health care coverage to employees shall agree to 4 provide coverage to all members of the state group, including active 5 employees and retirees and their eligible covered dependents and 6 beneficiaries, within the county or counties specified in its bid. Except as 7 provided in subsection (20) of this section, any carrier bidding to offer health 8 care coverage to employees shall also agree to rate all employees as a single 9 entity, except for those retirees whose former employers insure their active 10 employees outside the state-sponsored health insurance program and as 11 otherwise provided in KRS 61.702(2)(b)3.b. and 78.5536(2)(b)3.b. 12 (d) Any carrier bidding to offer health care coverage to employees shall agree to 13 provide enrollment, claims, and utilization data to the Commonwealth in a 14 format specified by the Personnel Cabinet with the understanding that the data 15 shall be owned by the Commonwealth; to provide data in an electronic form 16 and within a time frame specified by the Personnel Cabinet; and to be subject 17 to penalties for noncompliance with data reporting requirements as specified 18 by the Personnel Cabinet. The Personnel Cabinet shall take strict precautions 19 to protect the confidentiality of each individual employee; however, 20 confidentiality assertions shall not relieve a carrier from the requirement of 21 providing stipulated data to the Commonwealth. 22 (e) The Personnel Cabinet shall develop the necessary techniques and capabilities 23 for timely analysis of data received from carriers and, to the extent possible, 24 provide in the request-for-proposal specifics relating to data requirements, 25 electronic reporting, and penalties for noncompliance. The Commonwealth 26 shall own the enrollment, claims, and utilization data provided by each carrier 27 UNOFFICIAL COPY 25 RS BR 87 Page 9 of 18 XXXX 1/7/2025 2:00 PM Jacketed and shall develop methods to protect the confidentiality of the individual. The 1 Personnel Cabinet shall include in the October annual report submitted 2 pursuant to the provisions of KRS 18A.226 to the Governor, the General 3 Assembly, and the Chief Justice of the Supreme Court, an analysis of the 4 financial stability of the program, which shall include but not be limited to 5 loss ratios, methods of risk adjustment, measurements of carrier quality of 6 service, prescription coverage and cost management, and statutorily required 7 mandates. If state self-insurance was available as a carrier option, the report 8 also shall provide a detailed financial analysis of the self-insurance fund 9 including but not limited to loss ratios, reserves, and reinsurance agreements. 10 (f) If any agency participating in the state-sponsored employee health insurance 11 program for its active employees terminates participation and there is a state 12 appropriation for the employer's contribution for active employees' health 13 insurance coverage, then neither the agency nor the employees shall receive 14 the state-funded contribution after termination from the state-sponsored 15 employee health insurance program. 16 (g) Any funds in flexible spending accounts that remain after all reimbursements 17 have been processed shall be transferred to the credit of the state-sponsored 18 health insurance plan's appropriation account. 19 (h) Each entity participating in the state-sponsored health insurance program shall 20 provide an amount at least equal to the state contribution rate for the employer 21 portion of the health insurance premium. For any participating entity that used 22 the state payroll system, the employer contribution amount shall be equal to 23 but not greater than the state contribution rate. 24 (3) The premiums may be paid by the policyholder: 25 (a) Wholly from funds contributed by the employee, by payroll deduction or 26 otherwise; 27 UNOFFICIAL COPY 25 RS BR 87 Page 10 of 18 XXXX 1/7/2025 2:00 PM Jacketed (b) Wholly from funds contributed by any department, board, agency, public 1 postsecondary education institution, or branch of state, city, urban-county, 2 charter county, county, or consolidated local government; or 3 (c) Partly from each, except that any premium due for health care coverage or 4 dental coverage, if any, in excess of the premium amount contributed by any 5 department, board, agency, postsecondary education institution, or branch of 6 state, city, urban-county, charter county, county, or consolidated local 7 government for any other health care coverage shall be paid by the employee. 8 (4) If an employee moves his or her place of residence or employment out of the 9 service area of an insurer offering a managed health care plan, under which he or 10 she has elected coverage, into either the service area of another managed health care 11 plan or into an area of the Commonwealth not within a managed health care plan 12 service area, the employee shall be given an option, at the time of the move or 13 transfer, to change his or her coverage to another health benefit plan. 14 (5) No payment of premium by any department, board, agency, public postsecondary 15 educational institution, or branch of state, city, urban-county, charter county, 16 county, or consolidated local government shall constitute compensation to an 17 insured employee for the purposes of any statute fixing or limiting the 18 compensation of such an employee. Any premium or other expense incurred by any 19 department, board, agency, public postsecondary educational institution, or branch 20 of state, city, urban-county, charter county, county, or consolidated local 21 government shall be considered a proper cost of administration. 22 (6) The policy or policies may contain the provisions with respect to the class or classes 23 of employees covered, amounts of insurance or coverage for designated classes or 24 groups of employees, policy options, terms of eligibility, and continuation of 25 insurance or coverage after retirement. 26 (7) Group rates under this section shall be made available to the disabled child of an 27 UNOFFICIAL COPY 25 RS BR 87 Page 11 of 18 XXXX 1/7/2025 2:00 PM Jacketed employee regardless of the child's age if the entire premium for the disabled child's 1 coverage is paid by the state employee. A child shall be considered disabled if he or 2 she has been determined to be eligible for federal Social Security disability benefits. 3 (8) The health care contract or contracts for employees shall be entered into for a 4 period of not less than one (1) year. 5 (9) The secretary shall appoint thirty-two (32) persons to an Advisory Committee of 6 State Health Insurance Subscribers to advise the secretary or the secretary's 7 designee regarding the state-sponsored health insurance program for employees. 8 The secretary shall appoint, from a list of names submitted by appointing 9 authorities, members representing school districts from each of the seven (7) 10 Supreme Court districts, members representing state government from each of the 11 seven (7) Supreme Court districts, two (2) members representing retirees under age 12 sixty-five (65), one (1) member representing local health departments, two (2) 13 members representing the Kentucky Teachers' Retirement System, and three (3) 14 members at large. The secretary shall also appoint two (2) members from a list of 15 five (5) names submitted by the Kentucky Education Association, two (2) members 16 from a list of five (5) names submitted by the largest state employee organization of 17 nonschool state employees, two (2) members from a list of five (5) names submitted 18 by the Kentucky Association of Counties, two (2) members from a list of five (5) 19 names submitted by the Kentucky League of Cities, and two (2) members from a 20 list of names consisting of five (5) names submitted by each state employee 21 organization that has two thousand (2,000) or more members on state payroll 22 deduction. The advisory committee shall be appointed in January of each year and 23 shall meet quarterly. 24 (10) Notwithstanding any other provision of law to the contrary, the policy or policies 25 provided to employees pursuant to this section shall not provide coverage for 26 obtaining or performing an abortion, nor shall any state funds be used for the 27 UNOFFICIAL COPY 25 RS BR 87 Page 12 of 18 XXXX 1/7/2025 2:00 PM Jacketed purpose of obtaining or performing an abortion on behalf of employees or their 1 dependents. 2 (11) Interruption of an established treatment regime with maintenance drugs shall be 3 grounds for an insured to appeal a formulary change through the established appeal 4 procedures approved by the Department of Insurance, if the physician supervising 5 the treatment certifies that the change is not in the best interests of the patient. 6 (12) Any employee who is eligible for and elects to participate in the state health 7 insurance program as a retiree, or the spouse or beneficiary of a retiree, under any 8 one (1) of the state-sponsored retirement systems shall not be eligible to receive the 9 state health insurance contribution toward health care coverage as a result of any 10 other employment for which there is a public employer contribution. This does not 11 preclude a retiree and an active employee spouse from using both contributions to 12 the extent needed for purchase of one (1) state sponsored health insurance policy 13 for that plan year. 14 (13) (a) The policies of health insurance coverage procured under subsection (2) of 15 this section shall include a mail-order drug option for maintenance drugs for 16 state employees. Maintenance drugs may be dispensed by mail order in 17 accordance with Kentucky law. 18 (b) A health insurer shall not discriminate against any retail pharmacy located 19 within the geographic coverage area of the health benefit plan and that meets 20 the terms and conditions for participation established by the insurer, including 21 price, dispensing fee, and copay requirements of a mail-order option. The 22 retail pharmacy shall not be required to dispense by mail. 23 (c) The mail-order option shall not permit the dispensing of a controlled 24 substance classified in Schedule II. 25 (14) The policy or policies provided to state employees or their dependents pursuant to 26 this section shall provide coverage for obtaining a hearing aid and acquiring hearing 27 UNOFFICIAL COPY 25 RS BR 87 Page 13 of 18 XXXX 1/7/2025 2:00 PM Jacketed aid-related services for insured individuals under eighteen (18) years of age, subject 1 to a cap of one thousand four hundred dollars ($1,400) every thirty-six (36) months 2 pursuant to KRS 304.17A-132. 3 (15) Any policy provided to state employees or their dependents pursuant to this section 4 shall provide coverage for the diagnosis and treatment of autism spectrum disorders 5 consistent with KRS 304.17A-142. 6 (16) Any policy provided to state employees or their dependents pursuant to this section 7 shall provide coverage for obtaining amino acid-based elemental formula pursuant 8 to KRS 304.17A-258. 9 (17) If a state employee's residence and place of employment are in the same county, 10 and if the hospital located within that county does not offer surgical services, 11 intensive care services, obstetrical services, level II neonatal services, diagnostic 12 cardiac catheterization services, and magnetic resonance imaging services, the 13 employee may select a plan available in a contiguous county that does provide 14 those services, and the state contribution for the plan shall be the amount available 15 in the county where the plan selected is located. 16 (18) If a state employee's residence and place of employment are each located in 17 counties in which the hospitals do not offer surgical services, intensive care 18 services, obstetrical services, level II neonatal services, diagnostic cardiac 19 catheterization services, and magnetic resonance imaging services, the employee 20 may select a plan available in a county contiguous to the county of residence that 21 does provide those services, and the state contribution for the plan shall be the 22 amount available in the county where the plan selected is located. 23 (19) The Personnel Cabinet is encouraged to study whether it is fair and reasonable and 24 in the best interests of the state group to allow any carrier bidding to offer health 25 care coverage under this section to submit bids that may vary county by county or 26 by larger geographic areas. 27 UNOFFICIAL COPY 25 RS BR 87 Page 14 of 18 XXXX 1/7/2025 2:00 PM Jacketed (20) Notwithstanding any other provision of this section, the bid for proposals for health 1 insurance coverage for calendar year 2004 shall include a bid scenario that reflects 2 the statewide rating structure provided in calendar year 2003 and a bid scenario that 3 allows for a regional rating structure that allows carriers to submit bids that may 4 vary by region for a given product offering as described in this subsection: 5 (a) The regional rating bid scenario shall not include a request for bid on a 6 statewide option; 7 (b) The Personnel Cabinet shall divide the state into geographical regions which 8 shall be the same as the partnership regions designated by the Department for 9 Medicaid Services for purposes of the Kentucky Health Care Partnership 10 Program established pursuant to 907 KAR 1:705; 11 (c) The request for proposal shall require a carrier's bid to include every county 12 within the region or regions for which the bid is submitted and include but not 13 be restricted to a preferred provider organization (PPO) option; 14 (d) If the Personnel Cabinet accepts a carrier's bid, the cabinet shall award the 15 carrier all of the counties included in its bid within the region. If the Personnel 16 Cabinet deems the bids submitted in accordance with this subsection to be in 17 the best interests of state employees in a region, the cabinet may award the 18 contract for that region to no more than two (2) carriers; and 19 (e) Nothing in this subsection shall prohibit the Personnel Cabinet from including 20 other requirements or criteria in the request for proposal. 21 (21) Any fully insured health benefit plan or self-insured plan issued or renewed on or 22 after July 12, 2006, to public employees pursuant to this section which provides 23 coverage for services rendered by a physician or osteopath duly licensed under KRS 24 Chapter 311 that are within the scope of practice of an optometrist duly licensed 25 under the provisions of KRS Chapter 320 shall provide the same payment of 26 coverage to optometrists as allowed for those services rendered by physicians or 27 UNOFFICIAL COPY 25 RS BR 87 Page 15 of 18 XXXX 1/7/2025 2:00 PM Jacketed osteopaths. 1 (22) Any fully insured health benefit plan or self-insured plan issued or renewed to 2 public employees pursuant to this section shall comply with: 3 (a) KRS 304.12-237; 4 (b) KRS 304.17A-270 and 304.17A-525; 5 (c) KRS 304.17A-600 to 304.17A-633; 6 (d) KRS 205.593; 7 (e) KRS 304.17A-700 to 304.17A-730; 8 (f) KRS 304.14-135; 9 (g) KRS 304.17A-580 and 304.17A-641; 10 (h) KRS 304.99-123; 11 (i) KRS 304.17A-138; 12 (j) KRS 304.17A-148; 13 (k) KRS 304.17A-163 and 304.17A-1631; 14 (l) KRS 304.17A-265; 15 (m) KRS 304.17A-261; 16 (n) KRS 304.17A-262; 17 (o) KRS 304.17A-145; 18 (p) KRS 304.17A-129; 19 (q) KRS 304.17A-133; 20 (r) KRS 304.17A-264; 21 (s) Section 4 of this Act; and 22 (t)[(s)] Administrative regulations promulgated pursuant to statutes listed in this 23 subsection. 24 (23) (a) Any fully insured health benefit plan or self-insured plan issued or renewed to 25 public employees pursuant to this section shall provide a special enrollment 26 period to pregnant women who are eligible for coverage in accordance with 27 UNOFFICIAL COPY 25 RS BR 87 Page 16 of 18 XXXX 1/7/2025 2:00 PM Jacketed the requirements set forth in KRS 304.17-182. 1 (b) The Department of Employee Insurance shall, at or before the time a public 2 employee is initially offered the opportunity to enroll in the plan or coverage, 3 provide the employee a notice of the special enrollment rights under this 4 subsection. 5 Section 6. KRS 164.2871 is amended to read as follows: 6 (1) The governing board of each state postsecondary educational institution is 7 authorized to purchase liability insurance for the protection of the individual 8 members of the governing board, faculty, and staff of such institutions from liability 9 for acts and omissions committed in the course and scope of the individual's 10 employment or service. Each institution may purchase the type and amount of 11 liability coverage deemed to best serve the interest of such institution. 12 (2) All retirement annuity allowances accrued or accruing to any employee of a state 13 postsecondary educational institution through a retirement program sponsored by 14 the state postsecondary educational institution are hereby exempt from any state, 15 county, or municipal tax, and shall not be subject to execution, attachment, 16 garnishment, or any other process whatsoever, nor shall any assignment thereof be 17 enforceable in any court. Except retirement benefits accrued or accruing to any 18 employee of a state postsecondary educational institution through a retirement 19 program sponsored by the state postsecondary educational institution on or after 20 January 1, 1998, shall be subject to the tax imposed by KRS 141.020, to the extent 21 provided in KRS 141.010 and 141.0215. 22 (3) Except as provided in KRS Chapter 44, the purchase of liability insurance for 23 members of governing boards, faculty and staff of institutions of higher education 24 in this state shall not be construed to be a waiver of sovereign immunity or any 25 other immunity or privilege. 26 (4) The governing board of each state postsecondary education institution is authorized 27 UNOFFICIAL COPY 25 RS BR 87 Page 17 of 18 XXXX 1/7/2025 2:00 PM Jacketed to provide a self-insured employer group health plan to its employees, which plan 1 shall: 2 (a) Conform to the requirements of Subtitle 32 of KRS Chapter 304; and 3 (b) Except as provided in subsection (5) of this section, be exempt from 4 conformity with Subtitle 17A of KRS Chapter 304. 5 (5) A self-insured employer group health plan provided by the governing board of a 6 state postsecondary education institution to its employees shall comply with: 7 (a) KRS 304.17A-129; 8 (b) KRS 304.17A-133; 9 (c) KRS 304.17A-145; 10 (d) KRS 304.17A-163 and 304.17A-1631; 11 (e) KRS 304.17A-261; 12 (f) KRS 304.17A-262; 13 (g) KRS 304.17A-264;[ and] 14 (h) KRS 304.17A-265; and 15 (i) Section 4 of this Act. 16 (6) (a) A self-insured employer group health plan provided by the governing board of 17 a state postsecondary education institution to its employees shall provide a 18 special enrollment period to pregnant women who are eligible for coverage in 19 accordance with the requirements set forth in KRS 304.17-182. 20 (b) The governing board of a state postsecondary education institution shall, at or 21 before the time an employee is initially offered the opportunity to enroll in the 22 plan or coverage, provide the employee a notice of the special enrollment 23 rights under this subsection. 24 Section 7. KRS 304.17C-125 is amended to read as follows: 25 The following shall apply to limited health service benefit plans, including any limited 26 health service contract, as defined in KRS 304.38A-010: 27 UNOFFICIAL COPY 25 RS BR 87 Page 18 of 18 XXXX 1/7/2025 2:00 PM Jacketed (1) KRS 304.17A-129; 1 (2) KRS 304.17A-262;[ and] 2 (3) KRS 304.17A-591 to 304.17A-599; and 3 (4) Section 4 of this Act. 4 Section 8. The General Assembly finds that it would not be in the interest of 5 public health or welfare to use or receive public funds, or for public entities to offer or 6 sponsor health plans that provide benefits or coverage, for gender transition services due 7 to the substantial risks and known harmful effects of those services, including irreversible 8 physical alterations and, in some cases, sterility and lifelong sexual dysfunction. 9 Section 9. If any provision of this Act, or this Act's application to any person or 10 circumstance, is held invalid, the invalidity shall not affect other provisions or 11 applications of the Act, which shall be given effect without the invalid provision or 12 application, and to this end the provisions and applications of this Act are severable. 13 Section 10. Sections 4 to 7 of this Act apply to health plans issued or renewed 14 on or after the effective date of this Act. 15