HB 356 — AN ACT making appropriations for the operations, maintenance, support, and functioning of the Judicial Branch of the government of the Commonwealth of Kentucky and its various officers, boards, commissions, subdivisions, and other state-supported activities.

(b) It is the intent of the General Assembly that all projects in paragraph (a) of this subsection shall be funded using resources previously appropriated for projects that no longer require use allowance debt payments in the 2022-2024 fiscal biennium.

(5) Local Facilities Use Allowance Contingency Fund:

For any court facility project which is occupied and use allowance funding is insufficient, the use allowance payments shall be approved from the Local Facilities Use Allowance Contingency Fund.

If funds are not available in the Local Facilities Use Allowance Contingency Fund, the Chief Justice may transfer funds from other Judicial Branch accounts in accordance with Part III, General Provisions, Section 7.

of this Act to make the necessary payments.

(6) Edmonson County Courthouse Additional Parking Lot:

(a) General Fund support of $70,800 in fiscal year 2020-2021 is contained in the Local Facilities Fund for an additional parking lot in Brownsville.

This funding shall be contingent upon the local unit of government contributing $20,000 towards the completion of the additional parking lot.

(b) Notwithstanding any statute to the contrary, any unexpended balance from the appropriation set forth in paragraph (a) of this subsection shall be transferred to the Budget Reserve Trust Fund Account (KRS 48.705).

A.

ButlerBarren 11,860,00031,615,000 002.

CrittendenButler 11,965,00011,860,000 003.

JessamineClinton 28,440,00017,435,000 Page 6 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART 004.

ClintonCrittenden 17,435,00011,965,000 Page 4 of 7 XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1069 005.

OwsleyJessamine 11,860,00028,440,000 (1)006. Deferred Funding:

GeneralScott Fund37,330,000 support2. to provide operating costs totaling $1,189,700, annualized use allowance payments totaling $7,760,200, and nonrecurring furniture and equipment costs of $2,575,000 for Butler, Crittenden, Jessamine, Clinton, and Owsley Counties is deferred to the 2022-2024 fiscal biennium.

2.

Jefferson County - Lease - Parking (1)PART LocalIII FacilitiesGENERAL ProjectsPROVISIONS -1. Authorized:

Nothing in this Act shall reduce funding of court facility projects authorized by the General Assembly.

(2) Local Facilities Use Allowance Contingency Fund:

For any court facility project which is occupied and use allowance funding is insufficient, the use allowance payments shall be approved from the Local Facilities Use Allowance Contingency Fund.

If funds are not available in the Local Facilities Use Allowance Contingency Fund, the use allowance payments shall be deemed a necessary government expense and shall be paid from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705).

PART III GENERAL PROVISIONS 1.

If any section, any subsection, or any provision thereof shall be Page 5 of 7 XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1069 invalid or unconstitutional, the decision of the courts shall not affect or impair any of the remaining sections, subsections, or provisions.

Carry Forward of Restricted and Federal Funds:

Notwithstanding KRS 45.229, any unexpended balance remaining in the Court's Restricted Funds accounts or Federal Funds accounts at the close of the fiscal years ending June 30, 2020, and June 30, 2021, shall not lapse and shall continue into the next fiscal year.

Page 7 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART 6.

The Chief Justice shall cause the Director of the Administrative Office of the Courts toshall prepare a final budget document reflecting the 2020-2022 biennial budget of the Court of Justice.

ProposedNotwithstanding KRS 48.630(10), no revisions tofor unbudgeted Restricted Funds andappropriations Federalfor Fundsexpenditure appropriationsshall be allotted or expended that have not been appropriated in thisany Actenacted shallbranch bebudget madebill andor reportedwithout pursuantthe toexpress KRSauthority 48.630(10).of the General Assembly.

TheProposed Directorrevisions ofto theunbudgeted AdministrativeFederal OfficeFunds ofappropriations thefor Courtsexpenditure shallin notifythis onAct ashall timelybe basismade theand Legislativereported Researchto Commission of the mostInterim currentJoint estimatesCommittee ofon PageAppropriations 6 of 7 XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1069 anticipated receipts for the affected fiscal year and anRevenue. accompanying statement which explains variations from the anticipated amount.

The Director of the Administrative Office of the Courts shall notify, on a timely basis, the Legislative Research Commission of the most current estimates of anticipated receipts for the affected fiscal year and an accompanying statement which explains variations from the anticipated amount.

10.

Maximum Salary of Trial Commissioners:

Pursuant to KRS 24A.100(3), no trial commissioner shall be compensated at a rate greater than $7,200.

No funding is provided for trial commissioners commissioned in counties with a residing District Judge.

11.

Authorized Personnel Complement:

On July 1, 2020, the Administrative Page 8 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART Office of the Courts shall establish a record for each budget unit of authorized permanent full-time and other positions based upon the enacted Judicial Budget of the Commonwealth and any adjustments authorized by provisions in this Act.

The total number of filled permanent full-time and all other positions shall not exceed the authorized complements pursuant to this section.

The Director of the Administrative Office of the Courts may request an increase in the number of authorized positions to the Chief Justice.

Upon approval, the Administrative Office of the Courts may authorize the employment of individuals in addition to the authorized complement.

A report of the actions authorized in this section shall be provided to the Interim Joint Committee on Appropriations and Revenue on a monthly basis.

12.

Debt Restructuring:

Notwithstanding any other provision of the Kentucky Revised Statutes, use allowance payments shall not be amended to reflect debt restructuring transactions undertaken by a county during the 2020-2022 fiscal biennium.

13.

Court Facility Maintenance Fund Report:

For each of the periods ending June 30, 2020, and June 30, 2021, the Director of the Administrative Office of the Courts shall prepare a court facility maintenance report.

This report shall detail all court facility maintenance undertaken by the Court of Justice, to include any cost-sharing with counties, as well as detail regarding future maintenance needs.

This report shall include a statewide expenditure summary followed by individual county expenditures detailing the state's and county's respective share of expenditures.

The Administrative Office of the Courts shall provide this report to the Interim Joint Committee on Appropriations and Revenue by September 15 of each fiscal year.

14.

Biennial Audits:

[(1) The Court of Justice shall obtain a biennial, external financial audit of all funds and accounts under its administration.

Each audit shall be conducted in accordance with Generally Accepted Government Auditing Standards.

(2) The selected accountant shall forward a copy of the audit report and management letters to the Auditor of Public Accounts and the Interim Joint Committee Page 9 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART on Appropriations and Revenue within 60 days of the completion of each audit.

] (3) The Auditor of Public Accounts shall have the right to review, upon request, the accountant’s work papers[ for the report required in subsection (2) of this section].

15.

Budgetary Restructuring:

The Court of Justice is hereby notified that it is the intent of the General Assembly that, beginning with the 2022-2024 biennium, the Court of Justice shall establish new appropriation units specific to the Supreme Court, Court of Appeals, Circuit Court, Family Court, District Court, Administrative Office of the Courts, Judicial Retirement, Local Facilities Fund, Local Facilities Use Allowance Contingency Fund, and for services performed by the Circuit Court Clerks' offices.

The Court of Justice shall also begin tracking expenditures by location for each of the new appropriation units identified herein.

[16.

Employee Layoffs, Furloughs, and Reduced Hours:

Notwithstanding any statute to the contrary, the following process and procedure is established for July 1, 2020, through June 30, 2021, in the event that the Chief Justice determines that it is desirable for the Court of Justice to layoff, furlough, or reduce hours of employees:

(1) For the purposes of this section:

(a) "Appointing authority" means the Chief Justice, in his or her capacity as provided in KRS 27A.010, or any agent whom he or she has delegated to act on his or her behalf with respect to employee appointments, position establishments, payroll documents, reemployment requests, waiver requests, requests for certification, or other position actions for the Court of Justice;

(b) "Furlough" or "reduction in hours" means the temporary reduction of hours an employee is scheduled to work by the appointing authority within a pay period;

(c) "Layoff" means discharge of employment subject to the rights contained in this section;

and (d) "Employees" includes all persons employed by the Court of Justice;

(2) Upon an order by the Chief Justice, an appointing authority has the authority Page 10 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART to layoff or furlough employees or reduce hours of employment for any of the following reasons:

(a) Lack of funds or budgetary constraints;

(b) A reduction in the agency’s spending authorization;

(c) Lack of work;

(d) Abolishment of a position;

or (e) Other material change in duties or organization;

(3) The appointing authority shall determine the job classifications affected and the number of employees laid-off in each classification and each county to which a layoff applies.

In the same department or office, county, and job classification, interim and probationary employees shall be laid-off before any full-time or part-time employees with status are laid-off.

For purposes of layoff, "probationary employee" does not include an employee with status serving a promotional probation;

(4) The Chief Justice shall approve and implement all actions taken under subsection (2) of this section and no such layoff, furlough, or reduction of hours may begin until such approval has been granted.

The Chief Justice has the authority to determine the extent, effective dates, and length of any action taken under subsection (2) of this section;

(5) In determining the employees to be laid-off, the appointing authority shall consider all employees under the same appointing authority, within the job classification affected, and within the county affected.

Consideration shall be given to the following relevant factors:

(a) Job performance evaluations;

(b) Seniority;

(c) Education, training, and experience;

and (d) Disciplinary record;

(6) Any employee whose position is subject to layoff, furlough, or reduction of Page 11 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART hours shall be provided written notice containing the reason for the action as set forth in subsection (2) of this section at least 15 days in advance of the effective date of the action;

(7) Any tenured employee who is laid-off shall be eligible to apply as a reemployment applicant for positions with the same job classification in the Court of Justice.

For a period of two years, a reemployment applicant shall be hired before any applicant except another reemployment applicant with greater seniority who is on the same reemployment list.

When a reemployment applicant is removed from a reemployment list, he or she shall be notified in writing.

A reemployment applicant who accepts another Court of Justice position, tenured or non-tenured, or who retires, shall cease to have eligibility rights as a reemployment applicant;

(8) The appointing authority may place employees subject to a reduction in force;

(9) Furloughs or reduction of hours during a pay period shall not result in the loss of eligibility for any benefit otherwise due the employee;

(10) The appointing authority shall have the authority to promulgate comprehensive administrative regulations governing this section;

and (11) A layoff, furlough, or reduction of hours implemented in accordance with this section shall not be considered a penalization of the employee.] 17.

Unexpended Use Allowance:

Notwithstanding any provision of the Kentucky Revised Statutes, any General Fund moneys appropriated for project-related expenses or use allowance payments in fiscal year 2020-2021 that are not expended specifically for project-related expenses or use allowance payments in fiscal year 2020-2021 shall be transferred to the Budget Reserve Trust Fund Account (KRS 48.705).

18.

Public Health Emergency:

For the duration of the Governor’s declaration of a State of Emergency in response to the novel coronavirus (COVID-19), the Chief Justice of the Commonwealth is authorized to declare a Judicial Emergency to protect the health and safety of court employees, elected officials, and the general public.

A Judicial Page 12 of 13 HB035690.100 - 1069 - XXXX Enacted & Vetoed in Part UNOFFICIAL COPY 20 RS HB 356/EN/VETO IN PART Emergency shall extend any administrative actions deadlines, and statutory timelines and statutes of limitations for court filings and proceedings, including but not limited to KRS 446.030, 500.050, and Chapters 342, 376, 403, 413, 456, and 620.

The extensions provided herein shall be effective until 30 days after the emergency order of the Chief Justice or the Governor ends, whichever is later.

This provision shall apply both prospectively and retroactively.

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