SB 153 — AN ACT relating to executive branch ethics and declaring an emergency.

(b) The Lieutenant Governor;

(c) The Secretary of State;

(d) The Attorney General;

(e) The Treasurer;

(f) The Commissioner of Agriculture;

(g) The Auditor of Public Accounts;

(h) All employees in the executive branch including officers as defined in subsection (7) of this section and merit employees;

and (i) Any person who, through any contractual arrangement with an agency, is employed to perform a function of a position within an executive branch agency on a full-time, nonseasonal basis;

(10) "Agency" means every state office, cabinet, department, board, commission, public corporation, or authority in the executive branch of state government.

A public servant is employed by the agency by which his or her appointing authority is employed, unless his or her agency is attached to the appointing authority's agency for administrative purposes only, or unless the agency's characteristics are of a separate independent nature distinct from the appointing authority and it is considered an agency on its own, such as an independent department;

(11) "Lobbyist" means any person employed as a legislative agent as defined in KRS 6.611(23) or any person employed as an executive agency lobbyist as defined in KRS 11A.201(9);

(12) "Lobbyist's principal" means the entity in whose behalf the lobbyist promotes, opposes, or acts;

(13) "Candidate" means those persons who have officially filed candidacy papers or who Page 3 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 have been nominated by their political party pursuant to KRS 118.105, 118.115, 118.325, or 118.760 for any of the offices enumerated in subsections (9)(a) to (g) of this section;

(14) "Does business with" or "doing business with" means contracting, entering into an agreement, leasing, or otherwise exchanging services or goods with a state agency in return for payment by the state, including accepting a grant, but not including accepting a state entitlement fund disbursement;

(15) "Public agency" means any governmental entity;

(16) "Appointing authority" means the agency head or any person whom he or she has authorized by law to act on behalf of the agency with respect to employee appointments;

(17) "Represent" means to attend an agency proceeding, write a letter, or communicate with an employee of an agency on behalf of someone else;

(18) "Directly involved" means to work on personally or to supervise someone who works on personally;

(19) "Sporting event" means any professional or amateur sport, athletic game, contest, event, or race involving machines, persons, or animals, for which admission tickets are offered for sale and that is viewed by the public;

(20) "Person" means an individual, proprietorship, firm, partnership, limited partnership, joint venture, joint stock company, syndicate, business or statutory trust, donative trust, estate, company, corporation, limited liability company, association, club, committee, organization, or group of persons acting in concert;

and (21) "Salaried" means receiving a fixed compensation or benefit reserved for full-time employees, which is paid on a regular basis without regard to the actual number of hours worked.

Section 2.

KRS 11A.010 (Effective April 1, 2021) is amended to read as follows:

Page 4 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 As used in this chapter, unless the context otherwise requires:

(1) "Business" means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any legal entity through which business is conducted, whether or not for profit;

(2) "Commission" means the Executive Branch Ethics Commission;

(3) "Compensation" means any money, thing of value, or economic benefit conferred on, or received by, any person in return for services rendered, or to be rendered, by himself or herself or another;

(4) "Family" means spouse and children, as well as a person who is related to a public servant as any of the following, whether by blood or adoption:

parent, brother, sister, grandparent, grandchild, father-in-law, mother-in-law, brother-in-law, sister- in-law, son-in-law, daughter-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister;

(5) "Gift" means a payment, loan, subscription, advance, deposit of money, services, or anything of value, unless consideration of equal or greater value is received;

"gift" does not include gifts from family members, campaign contributions, the waiver of a registration fee for a presenter at a conference or training described in KRS 45A.097(5), or door prizes available to the public;

(6) "Income" means any money or thing of value received or to be received as a claim on future services, whether in the form of a fee, salary, expense allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or any other form of compensation or any combination thereof;

(7) "Officer" means:

(a) All major management personnel in the executive branch of state government, including the secretary of the cabinet, the Governor's chief executive officers, Page 5 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 cabinet secretaries, deputy cabinet secretaries, general counsels, commissioners, deputy commissioners, executive directors, executive assistants, policy advisors, special assistants, administrative coordinators, executive advisors, staff assistants, and division directors;

(b) Members and full-time chief administrative officers of:

1.

The Parole Board;

2.

Kentucky Claims Commission;

3.

Kentucky Retirement Systems board of trustees;

4.

Kentucky Teachers' Retirement System board of trustees;

5.

The Kentucky Public Employees Deferred Compensation Authority board of trustees;

6.

Public Service Commission;

7.

Worker's Compensation Board and its administrative law judges;

8.

The Kentucky Occupational Safety and Health Review Commission;

9.

The Kentucky Board of Education;

10.

The Council on Postsecondary Education;

11.

County Employees Retirement System board of trustees;[ and] 12.

Kentucky Public Pensions Authority;

and 13.

Kentucky Horse Racing Commission and its employees;

(c) Salaried members of executive branch boards and commissions;

and (d) Any person who, through a personal service contract or any other contractual employment arrangement with an agency, performs on a full-time, nonseasonal basis a function of any major management position listed in this subsection;

(8) "Official duty" means any responsibility imposed on a public servant by virtue of his or her position in the state service;

(9) "Public servant" means:

Page 6 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 (a) The Governor;

(b) The Lieutenant Governor;

(c) The Secretary of State;

(d) The Attorney General;

(e) The Treasurer;

(f) The Commissioner of Agriculture;

(g) The Auditor of Public Accounts;

(h) All employees in the executive branch including officers as defined in subsection (7) of this section and merit employees;

and (i) Any person who, through any contractual arrangement with an agency, is employed to perform a function of a position within an executive branch agency on a full-time, nonseasonal basis;

(10) "Agency" means every state office, cabinet, department, board, commission, public corporation, or authority in the executive branch of state government.

A public servant is employed by the agency by which his or her appointing authority is employed, unless his or her agency is attached to the appointing authority's agency for administrative purposes only, or unless the agency's characteristics are of a separate independent nature distinct from the appointing authority and it is considered an agency on its own, such as an independent department;

(11) "Lobbyist" means any person employed as a legislative agent as defined in KRS 6.611(23) or any person employed as an executive agency lobbyist as defined in KRS 11A.201(9);

(12) "Lobbyist's principal" means the entity in whose behalf the lobbyist promotes, opposes, or acts;

(13) "Candidate" means those persons who have officially filed candidacy papers or who have been nominated by their political party pursuant to KRS 118.105, 118.115, 118.325, or 118.760 for any of the offices enumerated in subsections (9)(a) to (g) of Page 7 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 this section;

(14) "Does business with" or "doing business with" means contracting, entering into an agreement, leasing, or otherwise exchanging services or goods with a state agency in return for payment by the state, including accepting a grant, but not including accepting a state entitlement fund disbursement;

(15) "Public agency" means any governmental entity;

(16) "Appointing authority" means the agency head or any person whom he or she has authorized by law to act on behalf of the agency with respect to employee appointments;

(17) "Represent" means to attend an agency proceeding, write a letter, or communicate with an employee of an agency on behalf of someone else;

(18) "Directly involved" means to work on personally or to supervise someone who works on personally;

(19) "Sporting event" means any professional or amateur sport, athletic game, contest, event, or race involving machines, persons, or animals, for which admission tickets are offered for sale and that is viewed by the public;

(20) "Person" means an individual, proprietorship, firm, partnership, limited partnership, joint venture, joint stock company, syndicate, business or statutory trust, donative trust, estate, company, corporation, limited liability company, association, club, committee, organization, or group of persons acting in concert;

and (21) "Salaried" means receiving a fixed compensation or benefit reserved for full-time employees, which is paid on a regular basis without regard to the actual number of hours worked.

Section 3.

The executive director shall possess Page 8 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 the powers and perform the duties imposed upon him by the Governor, and other duties as the racing commission may direct or prescribe.

(2) The executive director of the racing commission may employ, dismiss, or take other Page 1 of 3 SB015310.100 - 1618 - XXXX GA UNOFFICIAL COPY 21 RS SB 153/GA personnel action concerning an assistant executive director, stenographers, clerks, and other personnel as he or she may deem necessary to efficiently operate the racing commission's general office or any branch thereof.

Any member of the racing commission or any employee referred to in this section shall be reimbursed for expenses paid or incurred in the discharge of official business when Page 9 of 10 BR161800.100 - 1618 - XXXX Jacketed UNOFFICIAL COPY 21 RS BR 1618 approved by the executive director of the racing commission.

(3) Members ofappointed to the Kentuckycommission Horsepursuant Racingto CommissionKRS and230.225 its employees shall be subject to the provisionsfollowing ofrequirements: Sections 1 and 2 of this Act.

Section(a) 4.No member of the commission, through a business in which the member owns or controls an interest of more than five percent (5%), or by any other person for the member's use or benefit or on the member's account, shall undertake, execute, hold, or enjoy, in whole or in part, any contract, agreement, lease, sale, or purchase entered into, awarded, or granted by the commission.

Whereas,This theprohibition importanceshall ofnot theapply horseto racingpurchases industrythat inare Kentuckyavailable and its effect on the state'ssame economyterms mandate that the public have complete confidence in the dealings of the Kentucky Horse Racing Commission and its employees, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governorgeneral public or uponwhich itsare otherwisemade becomingat apublic law.auction;

Page(b) 10A member of 10the BR161800.100commission -shall 1618disclose -to XXXXthe Jacketedother members of the commission any direct or indirect interest in any undertaking that puts the member's personal interest in conflict with that of the commission.

This disclosure shall be made in writing or shall be recorded in the minutes of a formal meeting.

A member who is required to publicly disclose a direct or indirect interest shall abstain from all decisions concerning his or her interest if the decision may affect him or her as a member of a business, Page 2 of 3 SB015310.100 - 1618 - XXXX GA UNOFFICIAL COPY 21 RS SB 153/GA profession, occupation, or group in a manner different from other members of the business, profession, occupation, or group;

and (c) A member of the commission shall be subject to the gift rules for executive branch public servants under KRS Chapter 11A.

Section 2.

Whereas, the importance of the horse racing industry in Kentucky and its effect on the state's economy mandate that the public have complete confidence in the dealings of the Kentucky Horse Racing Commission, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governor or upon its otherwise becoming a law.

Page 3 of 3 SB015310.100 - 1618 - XXXX GA