UNOFFICIAL COPY 25 RS HB 71/GA Page 1 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA AN ACT relating to the Kentucky Public Pensions Authority. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 Section 1. KRS 61.505 is amended to read as follows: 3 (1) There is created an eight (8) member Kentucky Public Pensions Authority whose 4 purpose shall be to administer and operate: 5 (a) A single personnel system for the staffing needs of the Kentucky Retirement 6 Systems and the County Employees Retirement System; 7 (b) A system of accounting that is developed by the Authority for the Kentucky 8 Retirement Systems and the County Employees Retirement System; 9 (c) Day-to-day administrative needs of the Kentucky Retirement Systems and the 10 County Employees Retirement System, including but not limited to: 11 1. Benefit counseling and administration; 12 2. Information technology and services, including a centralized website for 13 the Authority, the Kentucky Retirement Systems, and the County 14 Employees Retirement System; 15 3. Legal services; 16 4. Employer reporting and compliance; 17 5. Processing and distribution of benefit payments, and other financial, 18 investment administration, and accounting duties as directed by the 19 Kentucky Retirement Systems board of trustees or the County 20 Employees Retirement System board of trustees; 21 6. All administrative actions, orders, decisions, and determinations 22 necessary to carry out benefit functions required by the Kentucky 23 Retirement Systems and the County Employees Retirement System 24 statutes, including but not limited to administration of reduced and 25 unreduced retirement benefits, disability retirement, reemployment after 26 retirement, service purchases, computation of sick-leave credit costs, 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 2 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA correction of system records, qualified domestic relations orders, and 1 pension spiking determinations; and 2 7. Completing and compiling financial data and reports; 3 (d) Any jointly held assets used for the administration of the Kentucky 4 Retirement Systems and the County Employees Retirement System, including 5 but not limited to real estate, office space, equipment, and supplies; 6 (e) The hiring of a single actuarial consulting firm who shall serve both the 7 Kentucky Retirement Systems and the County Employees Retirement System; 8 (f) The hiring of a single external certified public accountant who shall perform 9 audits for both the Kentucky Retirement Systems and the County Employees 10 Retirement System; 11 (g) The promulgation of administrative regulations as an authority or on behalf of 12 the Kentucky Retirement Systems and the County Employees Retirement 13 System, individually or collectively, provided such regulations are not 14 inconsistent with the provisions of this section and KRS 16.505 to 16.652, 15 61.505, 61.510 to 61.705, and 78.510 to 78.852, necessary or proper in order 16 to carry out the provisions of this section and duties authorized by KRS 17 16.505 to 16.652 and 61.510 to 61.705; 18 (h) A system of contracting management for administrative services; and 19 (i) Other tasks or duties as directed solely or jointly by the boards of the 20 Kentucky Retirement Systems or the County Employees Retirement System. 21 (2) The eight (8) member Kentucky Public Pensions Authority shall be composed of 22 the following individuals: 23 (a) The chair of the Kentucky Retirement Systems board of trustees; 24 (b) The chair of the County Employees Retirement System board of trustees; 25 (c) The investment committee chair of the Kentucky Retirement Systems board 26 of trustees, unless the investment committee chair is also the chair of the 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 3 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA board of trustees in which case the chair of the Kentucky Retirement Systems 1 shall appoint an individual who serves on the investment committee; 2 (d) The investment committee chair of the County Employees Retirement System 3 board of trustees, unless the investment committee chair is also the chair of 4 the County Employees Retirement System board of trustees in which case the 5 chair of the County Employees Retirement System shall appoint an individual 6 who serves on the investment committee; 7 (e) Two additional (2) trustees of the Kentucky Retirement Systems board of 8 trustees selected by the chair of the Kentucky Retirement Systems board of 9 trustees of which one (1) shall be a trustee who was elected by the 10 membership of one (1) of the systems administered by Kentucky Retirement 11 Systems and one (1) shall be a trustee of Kentucky Retirement Systems who 12 was appointed by the Governor; and 13 (f) Two additional (2) trustees of the County Employees Retirement System 14 board of trustees selected by the chair of the County Employees Retirement 15 System board of trustees of which one (1) shall be a trustee who was elected 16 by the membership of the County Employees Retirement System and one (1) 17 shall be a trustee of the County Employees Retirement System who was 18 appointed by the Governor. 19 (3) The Kentucky Public Pensions Authority is hereby granted the powers and 20 privileges of a corporation, including but not limited to the following powers: 21 (a) To sue and be sued in its corporate name; 22 (b) To make bylaws not inconsistent with the law and in accordance with its 23 duties as provided by this section; 24 (c) To conduct the business and promote the purposes for which it was formed; 25 (d) To carry out the obligations of the Authority subject to KRS Chapters 45, 26 45A, 56, and 57; 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 4 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (e) To purchase fiduciary liability insurance; and 1 (f) The Kentucky Public Pensions Authority shall reimburse any Authority 2 member, officer, or employee for any legal expense resulting from a civil 3 action arising out of the performance of his or her official duties. The hourly 4 rate of reimbursement for any contract for legal services under this paragraph 5 shall not exceed the maximum hourly rate provided in the Legal Services 6 Duties and Maximum Rate Schedule promulgated by the Government 7 Contract Review Committee established pursuant to KRS 45A.705, unless a 8 higher rate is specifically approved by the secretary of the Finance and 9 Administration Cabinet or his or her designee. 10 (4) Any vacancy which may occur in an appointed position on the Kentucky Public 11 Pensions Authority shall be filled in the same manner which provides for the 12 selection of the particular member of the Authority. No person shall serve in more 13 than one (1) position as a member of the Authority and if a person holds more than 14 one (1) position as a member of the Authority, he or she shall resign a position. 15 (5) (a) Membership on the Authority shall not be incompatible with any other office 16 unless a constitutional incompatibility exists. No Authority member shall 17 serve in more than one (1) position as a member of the Authority. 18 (b) An Authority member shall be removed from office upon conviction of a 19 felony or for a finding of a violation of any provision of KRS 11A.020 or 20 11A.040 by a court of competent jurisdiction. 21 (c) A current or former employee of the County Employees Retirement System, 22 Kentucky Retirement Systems, or the Kentucky Public Pensions Authority 23 shall not be eligible to serve as a member of the Authority. 24 (6) Kentucky Public Pensions Authority members who do not otherwise receive a 25 salary from the State Treasury shall receive a per diem of eighty dollars ($80) for 26 each day they are in session or on official duty, and they shall be reimbursed for 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 5 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA their actual and necessary expenses in accordance with state administrative 1 regulations and standards, except that the members shall not receive a per diem or 2 receive reimbursements on the same day they receive a per diem or reimbursements 3 for service to the Kentucky Retirement Systems board of trustees or County 4 Employees Retirement Systems board of trustees. 5 (7) (a) The Authority shall meet at least once in each quarter of the year and may 6 meet in special session upon the call of the chair or the executive director of 7 the Authority. 8 (b) The Authority shall elect a chair and a vice chair. The chair shall not serve 9 more than four (4) consecutive years as chair or vice chair of the Authority. 10 The vice chair shall not serve more than four (4) consecutive years as chair or 11 vice chair of the Authority. A member who has served four (4) consecutive 12 years as chair or vice chair of the Authority may be elected chair or vice chair 13 of the Authority after an absence of two (2) years from the positions. 14 (c) A majority of the Authority members shall constitute a quorum and all actions 15 taken by the Authority shall be by affirmative vote of a majority of the 16 Authority members present. 17 (d) The Authority shall post on the Authority's website and shall make available 18 to the public: 19 1. All meeting notices and agendas of the Authority. Notices and agendas 20 shall be posted to the Authority's website at least seventy-two (72) hours 21 in advance of the Authority's meetings, except in the case of special or 22 emergency meetings as provided by KRS 61.823; 23 2. All Authority minutes or other materials that require adoption or 24 ratification by the Authority. The items listed in this subparagraph shall 25 be posted within three (3) business days of adoption or ratification of the 26 Authority; 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 6 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA 3. All bylaws, policies, or procedures adopted or ratified by the Authority; 1 and 2 4. A listing of the members of the Authority and membership on each 3 committee established by the Authority. 4 (8) (a) The Kentucky Public Pensions Authority shall appoint or contract for the 5 services of an executive director and a chief auditor and fix the compensation 6 and other terms of employment for these positions without limitation of the 7 provisions of KRS Chapter 18A, 45A, and KRS 64.640. The executive 8 director shall be the chief administrative officer of the Authority, the 9 Kentucky Retirement Systems board of trustees, and the County Employees 10 Retirement System board of trustees. The chief auditor shall report directly to 11 the Kentucky Public Pensions Authority members to perform internal audit 12 functions as directed by the Authority. The executive director and chief 13 auditor shall work cooperatively with the chief executive officers of the 14 Kentucky Retirement Systems and the County Employees Retirement System. 15 The Authority shall annually conduct a performance evaluation of the 16 executive director and chief auditor. 17 (b) The Kentucky Public Pensions Authority shall authorize the executive 18 director, or the chief auditor in the case of employees under the direct 19 supervision of the chief auditor, to appoint the employees deemed necessary 20 to transact the duties of the Authority for the purposes outlined in subsection 21 (1) of this section.[ After April 14, 2022,] Approval by the Authority shall be 22 required for a petition to the secretary of the Personnel Cabinet for the 23 creation of any new unclassified position pursuant to KRS 18A.115(1)(e), (g), 24 (h), and (i). 25 (c) [Effective April 1, 2021, ]The Kentucky Public Pensions Authority shall 26 administer[assume responsibility of administering] the staff of the Kentucky 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 7 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA Retirement Systems in order to provide the services established by this 1 section. 2 (d) 1. All employees of the Kentucky Public Pensions Authority, except for 3 the executive director, the chief auditor, and no more than six (6) 4 unclassified employees of the Office of Investments employed pursuant 5 to KRS 18A.115(1)(e), (g), (h), and (i), shall be subject to the state 6 personnel system established pursuant to KRS 18A.005 to 18A.204 and 7 shall have their salaries determined by the secretary of the Personnel 8 Cabinet. 9 2. The employees exempted from the classified service under this 10 paragraph shall not be subject to the salary limitations specified in KRS 11 64.640(2) and (3). 12 3. The Kentucky Public Pensions Authority shall adopt a written salary and 13 classification plan fixing a range of compensation and written terms of 14 employment for any of the unclassified employees of the Office of 15 Investments it authorizes under this paragraph. The Authority shall 16 authorize the executive director to appoint up to six (6) unclassified 17 employees of the Office of Investments subject to the compensation 18 ranges and terms of employment the Authority has established. The 19 Authority may amend the written salary and classification plan adopted 20 under this paragraph at any time. 21 (e) 1. The Office of Financial Management is established within the 22 Kentucky Public Pensions Authority as enumerated in Section 2 of 23 this Act. The Office of Financial Management shall be headed by an 24 executive director of financial management who is appointed by the 25 executive director of the Authority in accordance with paragraph (b) 26 of this subsection and shall be generally responsible for all aspects of 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 8 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA the financial and accounting processes of the County Employees 1 Retirement System, the Kentucky Retirement Systems, and the 2 Kentucky Public Pensions Authority, including but not limited to: 3 a. Accounting policies and procedures; 4 b. Financial accounting systems; 5 c. Internal accounting control policies and procedures; 6 d. Financial reporting and compliance; 7 e. Budget preparation and monitoring; and 8 f. Coordination with external service providers, such as auditors 9 and banks. 10 2. The Office of Financial Management shall contain the following 11 divisions, which shall be headed by a division director who shall be 12 appointed by the executive director of the Authority pursuant to 13 paragraph (b) of this subsection and shall report to the executive 14 director of the Office of Financial Management: 15 a. The Division of Accounting; and 16 b. The Division of Investment Operations. 17 3. Pursuant to paragraph (b) of this subsection, the executive director of 18 the Authority may assign sections of the Office of Financial 19 Management to perform specific areas of work. Sections created 20 under this subparagraph shall report directly to the executive director 21 of the Office of Financial Management. 22 (f) The Authority shall annually review, approve, and submit a report to the 23 Public Pension Oversight Board detailing the number of employees of the 24 Authority, the salary paid to each employee, and the change in the salaries of 25 each individual employed by the Authority over the prior year. 26 (g)[(f)] The Authority shall require the executive director and the employees as 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 9 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA it thinks proper to execute bonds for the faithful performance of their duties 1 notwithstanding the limitations of KRS Chapter 62. 2 (h)[(g)] Notwithstanding any other provision of statute to the contrary, including 3 but not limited to any provision of KRS Chapter 12, the Governor shall have 4 no authority to change any provision of this section by executive order or 5 action, including but not limited to reorganizing, replacing, amending, or 6 abolishing the membership of the Kentucky Public Pensions Authority. 7 (9) All employees of the Authority shall serve during its will and pleasure. 8 Notwithstanding any statute to the contrary, employees shall not be considered 9 legislative agents under KRS 6.611. 10 (10) The Attorney General, or an assistant designated by him or her, may attend each 11 meeting of the Authority and may receive the agenda, board minutes, and other 12 information distributed to Authority members upon request. The Attorney General 13 may act as legal adviser and attorney for the Authority, and the Authority may 14 contract for legal services, notwithstanding the limitations of KRS Chapter 12 or 15 13B. 16 (11) (a) 1. All expenses incurred by or on behalf of the Kentucky Public Pensions 17 Authority shall be paid by the systems administered by the Kentucky 18 Retirement Systems or the County Employees Retirement System and 19 shall be prorated, assigned, or allocated to each system as determined by 20 Kentucky Public Pensions Authority. 21 2. Until June 30, 2024, any additional initial costs determined by the 22 Authority to be attributable solely to establishing a separate County 23 Employees Retirement System board and the Kentucky Public Pensions 24 Authority as provided by this section and KRS 78.782 shall be paid by 25 the County Employees Retirement System. Until June 30, 2024, any 26 additional ongoing annual administrative and investment expenses that 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 10 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA occur after the establishment of a separate County Employees 1 Retirement System board and the Kentucky Public Pensions Authority 2 that are determined by the Authority to be a direct result of establishing 3 a separate County Employees Retirement System board and the 4 Kentucky Public Pensions Authority shall be paid by the County 5 Employees Retirement System. Beginning on and after July 1, 2024, any 6 annual administrative and investment expenses shall be prorated, 7 assigned, or allocated to each system as determined by the Kentucky 8 Public Pensions Authority as provided by subparagraph 1. of this 9 paragraph but without attribution to the establishment of a separate 10 County Employees Retirement System board and the Kentucky Public 11 Pensions Authority. 12 3. In order to evaluate the results of establishing a separate County 13 Employees Retirement System board and the Kentucky Public Pensions 14 Authority, on or before November 15, 2022, and on or before November 15 15 following the close of each successive fiscal year, the Kentucky 16 Public Pensions Authority shall report to the Public Pension Oversight 17 Board the annual administrative and investment expenses of the 18 Kentucky Retirement Systems and the County Employees Retirement 19 System. The report shall include but not be limited to the process or 20 manner the Authority used to prorate, assign, or allocate to each system 21 its share of the expenses, the amount of expenses prorated, assigned, or 22 allocated to each system itemized by category, and any efforts by the 23 systems or the Authority to reduce administrative costs and staffing 24 needs. 25 (b) Any other statute to the contrary notwithstanding, authorization for all 26 expenditures relating to the administrative operations of the Kentucky Public 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 11 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA Pensions Authority, the Kentucky Retirement Systems, and the County 1 Employees Retirement System shall be contained in the biennial budget unit 2 request, branch budget recommendation, and the financial plan adopted by the 3 General Assembly pursuant to KRS Chapter 48. The Kentucky Public 4 Pensions Authority shall approve the biennial budget unit request prior to its 5 submission by the Authority. The request from the Kentucky Public Pensions 6 Authority shall include any specific administrative expenses requested by the 7 Kentucky Retirement Systems board of trustees or the County Employees 8 Retirement System board of trustees pursuant to KRS 61.645(13) or 9 78.782(13), as applicable, that are not otherwise expenses specified by 10 paragraph (a) of this subsection. 11 (12) (a) An Authority member shall discharge his or her duties as a member of the 12 Authority, including his or her duties as a member of a committee of the 13 Authority: 14 1. In good faith; 15 2. On an informed basis; and 16 3. In a manner he or she honestly believes to be in the best interest of the 17 County Employees Retirement System and the Kentucky Retirement 18 Systems, as applicable. 19 (b) An Authority member discharges his or her duties on an informed basis if, 20 when he or she makes an inquiry into the business and affairs of the 21 Authority, system, or systems or into a particular action to be taken or 22 decision to be made, he or she exercises the care an ordinary prudent person 23 in a like position would exercise under similar circumstances. 24 (c) In discharging his or her duties, an Authority member may rely on 25 information, opinions, reports, or statements, including financial statements 26 and other financial data, if prepared or presented by: 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 12 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA 1. One (1) or more officers or employees of the Authority whom the 1 Authority member honestly believes to be reliable and competent in the 2 matters presented; 3 2. Legal counsel, public accountants, actuaries, or other persons as to 4 matters the Authority member honestly believes are within the person's 5 professional or expert competence; or 6 3. A committee of the Authority of which he or she is not a member if the 7 Authority member honestly believes the committee merits confidence. 8 (d) An Authority member shall not be considered as acting in good faith if he or 9 she has knowledge concerning the matter in question that makes reliance 10 otherwise permitted by paragraph (c) of this subsection unwarranted. 11 (e) Any action taken as a member of the Authority, or any failure to take any 12 action as an Authority member, shall not be the basis for monetary damages 13 or injunctive relief unless: 14 1. The Authority member has breached or failed to perform the duties of 15 the member's office in compliance with this section; and 16 2. In the case of an action for monetary damages, the breach or failure to 17 perform constitutes willful misconduct or wanton or reckless disregard 18 for human rights, safety, or property. 19 (f) A person bringing an action for monetary damages under this section shall 20 have the burden of proving by clear and convincing evidence the provisions of 21 paragraph (e)1. and 2. of this subsection, and the burden of proving that the 22 breach or failure to perform was the legal cause of damages suffered by the 23 Kentucky Retirement Systems or County Employees Retirement System, as 24 applicable. 25 (g) In discharging his or her administrative duties under this section, an Authority 26 member shall strive to administer the systems in an efficient and cost-27 UNOFFICIAL COPY 25 RS HB 71/GA Page 13 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA effective manner for the taxpayers of the Commonwealth of Kentucky and 1 shall take all actions available under the law to contain costs for the trusts, 2 including costs for participating employers, members, and retirees. 3 Section 2. KRS 12.020 (Effective July 1, 2025) is amended to read as follows: 4 Departments, program cabinets and their departments, and the respective major 5 administrative bodies that they include are enumerated in this section. It is not intended 6 that this enumeration of administrative bodies be all-inclusive. Every authority, board, 7 bureau, interstate compact, commission, committee, conference, council, office, or any 8 other form of organization shall be included in or attached to the department or program 9 cabinet in which they are included or to which they are attached by statute or statutorily 10 authorized executive order; except in the case of the Personnel Board and where the 11 attached department or administrative body is headed by a constitutionally elected 12 officer, the attachment shall be solely for the purpose of dissemination of information and 13 coordination of activities and shall not include any authority over the functions, 14 personnel, funds, equipment, facilities, or records of the department or administrative 15 body. 16 I. Cabinet for General Government - Departments headed by elected officers: 17 (1) The Governor. 18 (2) Lieutenant Governor. 19 (3) Department of State. 20 (a) Secretary of State. 21 (b) Board of Elections. 22 (c) Registry of Election Finance. 23 (4) Department of Law. 24 (a) Attorney General. 25 (5) Department of the Treasury. 26 (a) Treasurer. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 14 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (6) Department of Agriculture. 1 (a) Commissioner of Agriculture. 2 (b) Agricultural Development Board. 3 (c) Kentucky Agricultural Finance Corporation. 4 (7) Auditor of Public Accounts. 5 (a) Commonwealth Office of the Ombudsman. 6 II. Program cabinets headed by appointed officers: 7 (1) Justice and Public Safety Cabinet: 8 (a) Department of Kentucky State Police. 9 1. Office of Administrative Services. 10 a. Division of Operational Support. 11 b. Division of Management Services. 12 2. Office of Operations. 13 a. Division of West Troops. 14 b. Division of East Troops. 15 c. Division of Special Enforcement. 16 d. Division of Commercial Vehicle Enforcement. 17 3. Office of Technical Services. 18 a. Division of Forensic Sciences. 19 b. Division of Electronic Services. 20 c. Division of Records Management. 21 (b) Department of Criminal Justice Training. 22 (c) Department of Corrections. 23 (d) Department of Juvenile Justice. 24 (e) Office of the Secretary. 25 (f) Office of Drug Control Policy. 26 (g) Office of Legal Services. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 15 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (h) Office of the Kentucky State Medical Examiner. 1 (i) Parole Board. 2 (j) Kentucky State Corrections Commission. 3 (k) Office of Legislative and Intergovernmental Services. 4 (l) Office of Human Resource Management. 5 1. Division of Human Resource Administration. 6 2. Division of Employee Management. 7 (m) Department of Public Advocacy. 8 (n) Office of Communications. 9 1. Information Technology Services Division. 10 (o) Office of Financial Management Services. 11 1. Division of Financial Management. 12 (p) Grants Management Division. 13 (2) Energy and Environment Cabinet: 14 (a) Office of the Secretary. 15 1. Office of Legislative and Intergovernmental Affairs. 16 2. Office of Legal Services. 17 a. Legal Division I. 18 b. Legal Division II. 19 3. Office of Administrative Hearings. 20 4. Office of Communication. 21 5. Mine Safety Review Commission. 22 6. Office of Kentucky Nature Preserves. 23 7. Kentucky Public Service Commission. 24 (b) Department for Environmental Protection. 25 1. Office of the Commissioner. 26 2. Division for Air Quality. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 16 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA 3. Division of Water. 1 4. Division of Environmental Program Support. 2 5. Division of Waste Management. 3 6. Division of Enforcement. 4 7. Division of Compliance Assistance. 5 (c) Department for Natural Resources. 6 1. Office of the Commissioner. 7 2. Division of Mine Permits. 8 3. Division of Mine Reclamation and Enforcement. 9 4. Division of Abandoned Mine Lands. 10 5. Division of Oil and Gas. 11 6. Division of Mine Safety. 12 7. Division of Forestry. 13 8. Division of Conservation. 14 9. Office of the Reclamation Guaranty Fund. 15 (d) Office of Energy Policy. 16 1. Division of Energy Assistance. 17 (e) Office of Administrative Services. 18 1. Division of Human Resources Management. 19 2. Division of Financial Management. 20 3. Division of Information Services. 21 (3) Public Protection Cabinet. 22 (a) Office of the Secretary. 23 1. Office of Communications and Public Outreach. 24 2. Office of Legal Services. 25 a. Insurance Legal Division. 26 b. Alcoholic Beverage Control Legal Division. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 17 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA c. Housing, Buildings and Construction Legal Division. 1 d. Financial Institutions Legal Division. 2 e. Professional Licensing Legal Division. 3 3. Office of Administrative Hearings. 4 4. Office of Administrative Services. 5 a. Division of Human Resources. 6 b. Division of Fiscal Responsibility. 7 (b) Office of Claims and Appeals. 8 1. Board of Tax Appeals. 9 2. Board of Claims. 10 3. Crime Victims Compensation Board. 11 (c) Kentucky Boxing and Wrestling Commission. 12 (d) Department of Alcoholic Beverage Control. 13 1. Division of Distilled Spirits. 14 2. Division of Malt Beverages. 15 3. Division of Enforcement. 16 (e) Department of Financial Institutions. 17 1. Division of Depository Institutions. 18 2. Division of Non-Depository Institutions. 19 3. Division of Securities. 20 (f) Department of Housing, Buildings and Construction. 21 1. Division of Fire Prevention. 22 2. Division of Plumbing. 23 3. Division of Heating, Ventilation, and Air Conditioning. 24 4. Division of Building Code Enforcement. 25 (g) Department of Insurance. 26 1. Division of Health and Life Insurance and Managed Care. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 18 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA 2. Division of Property and Casualty Insurance. 1 3. Division of Administrative Services. 2 4. Division of Financial Standards and Examination. 3 5. Division of Licensing. 4 6. Division of Insurance Fraud Investigation. 5 7. Division of Consumer Protection. 6 (h) Department of Professional Licensing. 7 1. Real Estate Authority. 8 2. Division of Real Property Boards. 9 (4) Transportation Cabinet: 10 (a) Department of Highways. 11 1. Office of Project Development. 12 2. Office of Project Delivery and Preservation. 13 3. Office of Highway Safety. 14 4. Highway District Offices One through Twelve. 15 (b) Department of Vehicle Regulation. 16 (c) Department of Aviation. 17 (d) Department of Rural and Municipal Aid. 18 1. Office of Local Programs. 19 2. Office of Rural and Secondary Roads. 20 (e) Office of the Secretary. 21 1. Office of Public Affairs. 22 2. Office for Civil Rights and Small Business Development. 23 3. Office of Budget and Fiscal Management. 24 4. Office of Inspector General. 25 5. Secretary's Office of Safety. 26 (f) Office of Support Services. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 19 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (g) Office of Transportation Delivery. 1 (h) Office of Audits. 2 (i) Office of Human Resource Management. 3 (j) Office of Information Technology. 4 (k) Office of Legal Services. 5 (5) Cabinet for Economic Development: 6 (a) Office of the Secretary. 7 1. Office of Legal Services. 8 2. Department for Business and Community Development. 9 a. Development and Retention Division – West Kentucky. 10 b. Development, Retention, and Administrative Division – 11 Central and East Kentucky. 12 c. Community and Workforce Development Division. 13 3. Department for Financial Services. 14 a. Kentucky Economic Development Finance Authority. 15 b. Finance and Personnel Division. 16 c. IT and Resource Management Division. 17 d. Compliance Division. 18 e. Program Administration Division. 19 f. Bluegrass State Skills Corporation. 20 g. The GRANT Commission. 21 4. Office of Strategy and Public Affairs. 22 a. Marketing and Communications Division. 23 b. Research and Strategy Division. 24 5. Office of Entrepreneurship and Innovation. 25 a. Commission on Small Business Innovation and Advocacy. 26 (6) Cabinet for Health and Family Services: 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 20 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (a) Office of the Secretary. 1 1. Office of Public Affairs. 2 2. Office of Legal Services. 3 3. Office of Inspector General. 4 4. Office of Human Resource Management. 5 5. Office of Finance and Budget. 6 6. Office of Legislative and Regulatory Affairs. 7 7. Office of Administrative Services. 8 8. Office of Application Technology Services. 9 9. Office of Data Analytics. 10 10. Office of Medical Cannabis. 11 a. Division of Enforcement and Compliance. 12 b. Division of Licensure and Access. 13 (b) Department for Public Health. 14 (c) Department for Medicaid Services. 15 (d) Department for Behavioral Health, Developmental and Intellectual 16 Disabilities. 17 (e) Department for Aging and Independent Living. 18 (f) Department for Community Based Services. 19 (g) Department for Family Resource Centers and Volunteer Services. 20 (7) Finance and Administration Cabinet: 21 (a) Office of the Secretary. 22 (b) Office of the Inspector General. 23 (c) Office of Legislative and Intergovernmental Affairs. 24 (d) Office of General Counsel. 25 (e) Office of the Controller. 26 (f) Office of Administrative Services. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 21 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (g) Office of Policy and Audit. 1 (h) Department for Facilities and Support Services. 2 (i) Department of Revenue. 3 (j) Commonwealth Office of Technology. 4 (k) State Property and Buildings Commission. 5 (l) Office of Equal Employment Opportunity and Contract Compliance. 6 (m) Kentucky Public Pensions Authority[Employees Retirement Systems]. 7 1. Office of Financial Management. 8 a. Division of Accounting. 9 b. Division of Investment Operations. 10 (n) Commonwealth Credit Union. 11 (o) State Investment Commission. 12 (p) Kentucky Housing Corporation. 13 (q) Kentucky Local Correctional Facilities Construction Authority. 14 (r) Kentucky Turnpike Authority. 15 (s) Historic Properties Advisory Commission. 16 (t) Kentucky Higher Education Assistance Authority. 17 (u) Kentucky River Authority. 18 (v) Kentucky Teachers' Retirement System Board of Trustees. 19 (w) Executive Branch Ethics Commission. 20 (x) Office of Fleet Management. 21 (8) Tourism, Arts and Heritage Cabinet: 22 (a) Kentucky Department of Tourism. 23 1. Division of Tourism Services. 24 2. Division of Marketing and Administration. 25 3. Division of Communications and Promotions. 26 (b) Kentucky Department of Parks. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 22 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA 1. Division of Information Technology. 1 2. Division of Human Resources. 2 3. Division of Financial Operations. 3 4. Division of Purchasing. 4 5. Division of Facilities. 5 6. Division of Park Operations. 6 7. Division of Sales, Marketing, and Customer Service. 7 8. Division of Engagement. 8 9. Division of Food Services. 9 10. Division of Rangers. 10 (c) Department of Fish and Wildlife Resources. 11 1. Division of Law Enforcement. 12 2. Division of Administrative Services. 13 3. Division of Engineering, Infrastructure, and Technology. 14 4. Division of Fisheries. 15 5. Division of Information and Education. 16 6. Division of Wildlife. 17 7. Division of Marketing. 18 (d) Kentucky Horse Park. 19 1. Division of Support Services. 20 2. Division of Buildings and Grounds. 21 3. Division of Operational Services. 22 (e) Kentucky State Fair Board. 23 1. Office of Administrative and Information Technology Services. 24 2. Office of Human Resources and Access Control. 25 3. Division of Expositions. 26 4. Division of Kentucky Exposition Center Operations. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 23 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA 5. Division of Kentucky International Convention Center. 1 6. Division of Public Relations and Media. 2 7. Division of Venue Services. 3 8. Division of Personnel Management and Staff Development. 4 9. Division of Sales. 5 10. Division of Security and Traffic Control. 6 11. Division of Information Technology. 7 12. Division of the Louisville Arena. 8 13. Division of Fiscal and Contract Management. 9 14. Division of Access Control. 10 (f) Office of the Secretary. 11 1. Office of Finance. 12 2. Office of Government Relations and Administration. 13 (g) Office of Legal Affairs. 14 (h) Office of Human Resources. 15 (i) Office of Public Affairs and Constituent Services. 16 (j) Office of Arts and Cultural Heritage. 17 (k) Kentucky African-American Heritage Commission. 18 (l) Kentucky Foundation for the Arts. 19 (m) Kentucky Humanities Council. 20 (n) Kentucky Heritage Council. 21 (o) Kentucky Arts Council. 22 (p) Kentucky Historical Society. 23 1. Division of Museums. 24 2. Division of Oral History and Educational Outreach. 25 3. Division of Research and Publications. 26 4. Division of Administration. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 24 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (q) Kentucky Center for the Arts. 1 1. Division of Governor's School for the Arts. 2 (r) Kentucky Artisans Center at Berea. 3 (s) Northern Kentucky Convention Center. 4 (t) Eastern Kentucky Exposition Center. 5 (9) Personnel Cabinet: 6 (a) Office of the Secretary. 7 (b) Department of Human Resources Administration. 8 (c) Office of Employee Relations. 9 (d) Kentucky Public Employees Deferred Compensation Authority. 10 (e) Office of Administrative Services. 11 (f) Office of Legal Services. 12 (g) Governmental Services Center. 13 (h) Department of Employee Insurance. 14 (i) Office of Diversity, Equality, and Training. 15 (j) Office of Public Affairs. 16 (10) Education and Labor Cabinet: 17 (a) Office of the Secretary. 18 1. Office of Legal Services. 19 a. Workplace Standards Legal Division. 20 b. Workers' Claims Legal Division. 21 c. Workforce Development Legal Division. 22 2. Office of Administrative Services. 23 a. Division of Human Resources Management. 24 b. Division of Fiscal Management. 25 c. Division of Operations and Support Services. 26 3. Office of Technology Services. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 25 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA a. Division of Information Technology Services. 1 4. Office of Policy and Audit. 2 5. Office of Legislative Services. 3 6. Office of Communications. 4 7. Office of the Kentucky Center for Statistics. 5 8. Board of the Kentucky Center for Statistics. 6 9. Early Childhood Advisory Council. 7 10. Governors' Scholars Program. 8 11. Governor's School for Entrepreneurs Program. 9 12. Foundation for Adult Education. 10 (b) Department of Education. 11 1. Kentucky Board of Education. 12 2. Kentucky Technical Education Personnel Board. 13 3. Education Professional Standards Board. 14 (c) Board of Directors for the Center for School Safety. 15 (d) Department for Libraries and Archives. 16 (e) Kentucky Environmental Education Council. 17 (f) Kentucky Educational Television. 18 (g) Kentucky Commission on the Deaf and Hard of Hearing. 19 (h) Department of Workforce Development. 20 1. Career Development Office. 21 2. Office of Vocational Rehabilitation. 22 a. Division of Kentucky Business Enterprise. 23 b. Division of the Carl D. Perkins Vocational Training Center. 24 c. Division of Blind Services. 25 d. Division of Field Services. 26 e. Statewide Council for Vocational Rehabilitation. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 26 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA f. Employment First Council. 1 3. Office of Employer and Apprenticeship Services. 2 a. Division of Apprenticeship. 3 4. Kentucky Apprenticeship Council. 4 5. Division of Technical Assistance. 5 6. Office of Adult Education. 6 7. Office of the Kentucky Workforce Innovation Board. 7 (i) Department of Workplace Standards. 8 1. Division of Occupational Safety and Health Compliance. 9 2. Division of Occupational Safety and Health Education and 10 Training. 11 3. Division of Wages and Hours. 12 (j) Office of Unemployment Insurance. 13 (k) Kentucky Unemployment Insurance Commission. 14 (l) Department of Workers' Claims. 15 1. Division of Workers' Compensation Funds. 16 2. Office of Administrative Law Judges. 17 3. Division of Claims Processing. 18 4. Division of Security and Compliance. 19 5. Division of Specialist and Medical Services. 20 6. Workers' Compensation Board. 21 (m) Workers' Compensation Funding Commission. 22 (n) Kentucky Occupational Safety and Health Standards Board. 23 (o) State Labor Relations Board. 24 (p) Employers' Mutual Insurance Authority. 25 (q) Kentucky Occupational Safety and Health Review Commission. 26 (r) Workers' Compensation Nominating Committee. 27 UNOFFICIAL COPY 25 RS HB 71/GA Page 27 of 27 HB007110.100 - 17 - XXXX 2/20/2025 2:49 PM GA (s) Office of Educational Programs. 1 (t) Kentucky Workforce Innovation Board. 2 (u) Kentucky Commission on Proprietary Education. 3 (v) Kentucky Work Ready Skills Advisory Committee. 4 (w) Kentucky Geographic Education Board. 5 (x) Disability Determination Services Program. 6 III. Other departments headed by appointed officers: 7 (1) Council on Postsecondary Education. 8 (2) Department of Military Affairs. 9 (3) Department for Local Government. 10 (4) Kentucky Commission on Human Rights. 11 (5) Kentucky Commission on Women. 12 (6) Department of Veterans' Affairs. 13 (7) Kentucky Commission on Military Affairs. 14 (8) Office of Minority Empowerment. 15 (9) Governor's Council on Wellness and Physical Activity. 16 (10) Kentucky Communications Network Authority. 17 Section 3. This Act takes effect July 1, 2025. 18