HB 307 — AN ACT relating to liability and workers' compensation self-insurance group investments.

UNOFFICIALCHAPTER COPY62 221 RSCHAPTER 62 ( HB 307/GA307 ) AN ACT relating to liability and workers' compensation self-insurance group investments.

(e)[(f)] Equity securities actively traded on the New York or NASDAQ Stock Exchanges or other registered national securities exchanges with no individual equity holding comprising greater than ten percent (10%) of the equity portion Page 1 of 8 HB030710.100 - 1464 - XXXX GA UNOFFICIAL COPY 22 RS HB 307/GA of the portfolio, reflected on the most recent quarterly or annual statement of financial condition on file with the commissioner, at the time of purchase, as follows:

Investments in equity securities shall not exceed twenty percent (20%) of the total market value of the investment portfolio of the liability self-self-insurance insurance group reflected on the most recent quarterly or annual statement of financial condition on file with the commissioner;

PageLegislative 2Research ofCommission 8PDF HB030710.100Version -ACTS 1464OF -THE XXXXGENERAL GAASSEMBLY UNOFFICIAL COPY 22 RS HB 307/GA 2.

(2) A workers' compensation self-insured group shall establish plans for premium payment, determination and collection of assessments, and for declaration and payment of dividends or other disbursements, which shall be filed for prior approval Page 3 of 8 HB030710.100 - 1464 - XXXX GA UNOFFICIAL COPY 22 RS HB 307/GA with the commissioner.

(3)[(2)] Prior to the inception of each group member's self-insurance year, the trustees shall collect from that member at least twenty-five percent (25%) of the estimated premium for the ensuing year, except that in the case of a self-insured group formed by governmental entities twenty-five percent (25%) of the estimated premium for the ensuing year shall be collected no later than thirty (30) days after the beginning of the self-insuredself- insured group's self-insurance year.

The balance of the estimated premium shall be collected in either quarterly or monthly installments as set forth in the enabling documents described in KRS 304.50-030(2)(b) or 304.50-060(2)(b).304.50- 060(2)(b).

(5)[(4)] The formula to be used for collection of assessments shall be determined by Page 4 of 8 HB030710.100 - 1464 - XXXX GA UNOFFICIAL COPY 22 RS HB 307/GA the trustees and approved by the commissioner.

CHAPTER 62 3 (b) Tax exempt and taxable obligations issued by any state or any of its agencies, counties, cities, municipalities, districts, political subdivisions, or other legal authorities within the United States of America[the Commonwealth of Kentucky or its agencies] with a minimum rating of "BBB[A]" by any NRSRO, except that no less than fifty percent (50%) of the investments made under this paragraph shall be in[Standardin [Standard & Poor;

At the time of purchase, equity securities actively traded on the New York or NASDAQ Stock Exchanges or other registered national securities exchanges with no individual equity holding comprising greater than ten percent (10%) of the equity portion of the portfolio Page 5 of 8 HB030710.100 - 1464 - XXXX GA UNOFFICIAL COPY 22 RS HB 307/GA reflected on the most recent quarterly or annual statement of financial condition on file with the commissioner.

2.[1.]An2.[1.] An investment in an individual equity holding shall not represent at the time of purchase more than five percent (5%) of the total market value of the security.

3.[2.]At3.[2.] At the time of purchase, investments in equity securities shall not exceed twenty percent (20%) of the total market value of the investment portfolio of the self-insured group reflected on the most recent quarterly or annual statement of financial condition on file with the commissioner;

Page 6 of 8 HB030710.100 - 1464 - XXXX GA UNOFFICIAL COPY 22 RS HB 307/GA 2.

(9)[(8)] In the event that any security investment authorized by subsection (7) of this section is downgraded below "BBB," the workersworkers' compensation self-insurance group shall divest itself of that investment as prudently as possible without incurring unnecessary losses.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (10) The commissioner may permit variation from the requirements of this section for good cause.

Page 7 of 8 HB030710.100 - 1464 - XXXX GA UNOFFICIAL COPY 22 RS HB 307/GA (b) Financing obtained pursuant to paragraph (a) of this subsection may be accomplished by:

PageSigned 8by ofGovernor 8March HB030710.10030, -2022. 1464 - XXXX GA